LONDON (ShareCast) - (Sharecast News) - Manolete Partners announced on Monday that it has secured a £3.2m settlement in one of its truck cartel claims, representing a strong cash return on investment despite a related non-cash write down to its balance sheet.
The AIM-traded insolvency litigation funder said the settlement would fully reimburse its investment and deliver a profit share, with funds due by 1 August.

It said it was planning to use the proceeds to reduce its revolving credit facility with HSBC UK.

According to unaudited internal figures, Manolete incurred £483,000 in costs relating to the settled claim, implying a money multiple of 6.6x and a 560% cash return on investment.

However, the settlement would also trigger a non-cash fair value write down of about £836,000, reflecting a difference between the settlement and the previously booked net asset value of the claim.

The company previously disclosed that the trial for its next wave of truck cartel claims was delayed until September 2026.

In light of the timing, the board concluded that the settlement represented strong commercial value and opted to realise immediate cash.

Manolete reiterated that the truck cartel claims were a one-off departure from its core insolvency litigation focus.

While the board remained confident in the progress of the remaining cases, it said it did not intend to invest in similar competition law claims in future.

As a result of the latest settlement and the board's reassessment of its portfolio, the company was expecting a total non-cash write down of around £1.9m across both settled and unsettled truck cartel claims in its interim results to 30 September.

Manolete reported a net asset value of £15.4m for all truck cartel claims as of 31 March.

After receiving £3.2m in settlement proceeds and applying the £1.9m write down, the net asset value of the remaining unsettled claims was expected to be £10.3m.

At 1111 BST, shares in Manolete Partners were down 2.53% at 77p.

Reporting by Josh White for Sharecast.com.

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