Steven Cooklin of Manolete Partners: Current Environment is “Perfect Storm”

Episode 2604,   May 22, 06:30 AM

Steven Cooklin CEO of Manolete Partners: Current Environment is “Perfect Storm” with Record New Cases

“The highest level of UK insolvencies for 30 years”

“The UK insolvency market was fully rehabilitated (in 2024) from the temporary two-year suppression of insolvencies that the Government had enacted during the Covid-19 pandemic. Significantly higher interest rates, heightened concerns over geo-political conflicts in Eastern Europe and the Middle East and the withdrawal of the large scale financial support provided by the Government to UK businesses during the Covid-19 period, has resulted in the highest level of UK insolvencies for 30 years. Insolvency Service statistics from January 2024 show the number of Creditor Voluntary Liquidations, the largest constituent part of the UK insolvency market, in 2023 was at its highest level since 1960”

Manolete Partners - Trading Update Summary:
- FY24: 311 new case investments, 18% higher than FY23's previous record of 263
- At year-end Manolete had 418 live cases in progress vs 351 at FY23
- H2 of FY24, the Company signed 20, £1m plus size cases
- FY23's new case enquiries were 692. For FY24, the Company recorded 731 new case enquiries.
- In FY24, Manolete completed a new record number of 251 cases, 31% higher than last year's previous record number of 192.
- Manolete delivered a 26% increase in overall revenues for FY24 to £26.3m (FY23: £20.8m)
- The Company expects to report, subject to audit, a PBIT of around £2.5m for FY24. This compares to the PBIT loss of £(3.1)m reported for FY23.

MY OPINION ON OUTLOOK
If Manolete achieves 400 cases and they revert to 2021’s value of £180k per case, they could be generating pre-tax profit of approximately £21.6m. Put this on a multiple of 10 and this would mean 250% upside on their current valuation.

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