IMF Bentham triples profit as it diversifies case load

IMF Bentham booked a net profit attributable to members of $20.9m, as it expanded its presence in the US and Canada.

IMF Bentham managing director Andrew Saker. Picture: Jake Nowakowski.

Litigation funder IMF Bentham has reported a strong rise in profit as it shifts its strategy to work on a larger number of legal cases.

Net profit attributable to members more than tripled to $20.9 million in the year to June 30, compared with $6.3m in the previous year.

The company (IMF) called the results a “significant turnaround” compared to the previous year as it moves to take on a larger number of cases of different sizes, types and locations, rather than a small number of large cases.

IMF noted substantial growth in its US and Canadian portfolio, saying this would remain a key focus in future, and said it was continuing to consider opportunities in other countries.

Total income more than doubled to $56.4m in the year, from $27.1m a year earlier.

But revenue from ordinary activities plunged to $3.4m during fiscal 2016, compared with $12.5m in fiscal 2015.

“After a difficult 2015 financial year which included significant changes to both board and management together with patchy results, 2016 has seen significant developments in the company’s strategy and operational execution,” IMF said.

IMF will pay a final dividend of 7.5c per share, fully franked, on October 21 to shareholders who are on the register on September 27.