Final results for the year ended 31 December 2013
March 21, 2014Continued Strong Returns In 2013; Dividend Of 14.0 Pence Per Share; Portfolio Maturingread more >
Juridica (AIM: JIL), a leading provider of strategic capital for corporate legal claims to both businesses and the legal markets, announces its audited financial results for the year ended 31 December 2013.
- Gross cash proceeds received during 2013 of US$37.2 million (2012: US$38.4 million)
- Dividends totalling US$25.7 million (14p per share) paid to shareholders on 15 January 2014
- Dividends paid to shareholders since inception total US$64.3 million (38.6p per share)
- Net Asset Value at 31 December 2013 of US$223.6 million, which includes the Company's core investment portfolio with a current fair value of US$189.4 million
- Net Asset Value per share US$2.02 / £1.22* (2012: US$2.20 / £1.33*)
- Total comprehensive income for 2013 of US$5.1 million (2012: US$37.6 million)
- Fully diluted earnings per share of 4.85c / 2.91p* (2012: 35.38c / 21.37p*)
* Financial highlights exchange rate is £1.00 = US$1.657 as of 31 December 2013
- Receipt of US$37.2 million in cash proceeds from four investments comprising one final settlement and three partial settlements
- Several investments have matured to where important legal events are scheduled during the upcoming 12 to 18 months, any of which could result in completion of the investment
- Investment of US$2.0 million for a 7.8% equity interest in ipCreate, Inc., a leading intellectual property creation, acquisition and monetisation company. This investment will enhance the Company's capability to invest in intellectual property opportunities that are structured to reduce overall risk with enhanced return potential
- Supplemental investments in four cases totalling US$2.9 million
Outlook for 2014
The Company's antitrust and competition portfolio, patent portfolio, and commercial portfolio are all expected to have significant activity during 2014 and 2015.
Based on scheduled trial dates and expected hearing and/or trial dates, the Manager believes the following cases have the potential to produce significant cash to the Company in 2014:
- Case 1208-A, which is part of the significant investment the Company has made in its antitrust and competition portfolio, is scheduled for trial at the end of Q2 2014. Liability has been won through all appeals and only damages are being decided by a jury at this stage. The case could potentially result in cash returns through settlement to the Company in excess of 15% of the current NAV. Claimed damages are in excess of US$1.0 billion. The Company's Investment Manager expects any settlement to be less than claimed damages
- Case 5208-E is scheduled for trial in Q2 of 2014 and has one remaining defendant. This case is also part of the antitrust and competition portfolio
- Case 5009-S is expected to be tried during 2014. This case is part of the Company's commercial portfolio and claimed damages are in excess of US$500 million. The Company's interest in any settlement is 24% or more
- Case 8008-L, as previously announced, has an aspect of its damages claim on appeal. The appeal is expected to be heard during the second half of 2014 and settlement could occur at any time thereafter. The case has already produced cash returns to the Company of approximately US$69 million
The Company expects to make several investments in medium to large sized patent portfolios during 2014.
Commenting on the results, Lord Brennan QC, Chairman of Juridica, said: "Our investments have continued to mature during the year, enabling us to deliver dividends of 14p per share. We have already provided cash returns to shareholders in the form of dividends that equal approximately 62% of our net funding. With the continued maturation of our existing portfolio and with our pipeline of potential investments, we anticipate significant returns from the investment portfolio over the next 12 to 18 months and beyond. The Board therefore looks to the future with confidence."
Investment results since the Company's inception
- The Company has seen 10 investments come to completion (nine producing cash profits and one producing a modest cash loss) with settlements in the underlying cases totalling US$44.4 million in gross proceeds, representing a blended internal rate of return of approximately 66.7% (as calculated from date of investment to date of proceed return)
- Six cases, which are multi-defendant in nature, had partial settlements or expense recovery, providing for gross proceeds of approximately US$80.4 million
February 7, 2014In the Company's Commercial portfolio, US$7.0 million of proceeds were received in December 2013.read more >
In the Company's Commercial portfolio, US$7.0 million of proceeds were received in December 2013:
- Case 2510 completed, delivering US$3.0 million on an investment of US$1.0 million; and
- Case 1610 delivered just over US$4.0 million and is ongoing. Juridica's investment in this case totals US$4.0 million and, in addition, the Company retains a preferred share option over 33% of its client's hard asset, which is being prepared for sale.
In addition, Case 5009-S has been certified for trial and is awaiting assignment of a trial date, which is expected to be in the current calendar year.
Further developments in the Company's Antitrust portfolio include:
- The trial of Case 8008-L, which was set to begin in the first quarter of 2014, has been delayed following an adverse ruling on the scope of Plaintiffs' claim. Advice has been received to the effect that the ruling is expected to be partially or wholly overturned in favour of the Plaintiff on appeal. While the appeal may cause a nine to eighteen month delay in the completion of the matter, the case could still resolve pending the ruling on appeal. The Company's investment has thus far delivered proceeds to the Company in excess of US$69 million;
- Case 1208-A is set for trial in the second quarter of 2014. The trial is expected to focus on damages, as liability has already been established at the trial court level and upheld on appeal. Whilst damages claimed exceed US$1.0 billion it is not possible to estimate the Company's share which can only be determined once there is a court award or settlement reached.
- As previously reported, Case 5208-E is scheduled for trial in the second quarter of 2014; and
- Case 5308-U is awaiting the setting of a trial date. Pre-trial merits discovery is complete. Challenges to expert opinions remain pending.
In the Patent portfolio, as a result of its strategic relationship with IpCreate, the Company is conducting due diligence on several interesting patent investments, including additional investments in some of its existing patent investments. The Company is also evaluating further antitrust investments and one recently obtained judgment.
Juridica, a leading provider of strategic capital for corporate legal claims to both businesses and the legal markets, provides the following update on developments in its portfolio.
October 30, 2013Juridica is pleased to announce that following further progress in its maturing portfolio, the Board has approved a supplementary dividend of 4 pence per share.read more >
This will be paid in addition to the 10 pence per share announced on 4 July 2013. Accordingly a total of 14 pence per share will be paid on 15 January 2014 to shareholders on the Register at 13 December 2013.
During 2013 the Company has paid or announced a total of 27 pence per share in dividends following continued success in its maturing portfolio of investments. Gross proceeds achieved during 2013 total US$30 million.
Lord Brennan, Juridica’s Chairman, said: “We are pleased to be able to confirm the payment of additional dividends, which we raised to investors as a prospect earlier in the year. The continued progress and maturity of our portfolio underlines our conviction that we will be able to announce further dividend income to investors next year.”
Change of Administrator, Company Secretary & Registered Office
October 1, 2013Juridica announces that that Legis Fund Services Limited of Legis House, 11 New Street, St Peter Port, Guernsey, GY1 2PF replaces Bordeaux Services (Guernsey) Limited as Administrator and Company Secretary of the Company with immediate effect.read more >
As a result of the above, the Company’s Registered Office is now located at 11 New Street, St Peter Port, Guernsey, GY1 2PF.
October 1, 2013Juridica provides the following update on developments in the cases that comprise its Antitrust portfolio. As at 30 June 2013 the carrying value of the Antitrust portfolio was US$139 million. It comprises five antitrust cases and one statutory claim.read more >
The portfolio includes three Antitrust price-fixing cartel cases:
- Two of these three cases have been set for trial in 2014.
- The third cartel case does not have a trial date set yet but a trial in this case is possible in 2014 given that the case is near completion of pre-trial proceedings.
The portfolio also includes two monopoly cases:
- One of these is in the final stages and is awaiting trial court rulings after having been sent back to the trial court following a successful appeal of liability issues. It is expected that this case will likely go to trial in 2014 on damages sometime after the ruling on certain pre-trial motions that are awaiting decision by the court.
- The trial court has dismissed the other monopoly case, in which US$15 million was invested, and that negative decision has recently been affirmed on appeal. However, further appeals remain to be pursued before a final result is known.
Finally, certain of the claims in the statutory case have also been set for trial in early 2014.
The Company expects that its Antitrust portfolio will produce significant returns to shareholders over the next 18 months.
Juridica Acquires $2 Million Strategic Stake in ipCreate, Inc.
September 17, 2013Juridica Investments Limited, a leading provider of strategic capital for corporate legal claims to both businesses and the legal markets, has formed a strategic partnership with ipCreate, Inc. (“ipCreate”) a leading intellectual property creation, acquisition and development company. As part of the agreement the Company has supported ipCreate’s US$7.5 million fundraising by acquiring one million Series B Convertible Preferred shares in ipCreate for a total consideration of US$2 million.read more >
The power of ipCreate’s business model lays in its ability to provide patent holders with a diverse spectrum of monetisation options. ipCreate can increase the value of their clients’ portfolios by developing and acquiring strategically complementary patents. ipCreate will also generate new intellectual property (“IP”), acquire and further enhance foundational IP into focused portfolios for sale, license, litigation or spin-off. In addition, ipCreate identifies, acquires and develops IP to serve the needs of large corporations, working with ipCapital Group, an affiliate of ipCreate. Like Juridica, ipCreate’s clients are Fortune 500 companies and the advisory businesses that serve them.
The benefits to the Company, beyond the potential financial returns on its investment, will be access to ipCreate and the ipCapital group of companies and their market leading tools for enhancing the Company’s current and future patent and IP investments. These benefits include:
• Improved valuation methodologies of current investments beyond legal arguments, adding market knowledge, technology business value and relationships with potential buyers, licenses and defendants;
• Enhancement of the Company’s investment selection process by adding a business and technology context to the existing legal context; and
• ipCreate and the ipCapital group of companies can provide additional pipelines of patent holders and law firms interested in accessing capital for corporate legal claims
ipCreate is led by John Cronin, Chairman, President and Chief Executive Officer. Mr. Cronin is also the Managing Director and Chairman of ipCapital Group, Inc. ("ipCG"), an intellectual property consulting firm he founded in 1998. ipCreate’s team includes some of the world’s most experienced IP professionals, scientists, engineers, lawyers and corporate finance personnel. Its General Counsel, Martha Ries, has 25 years’ experience, most recently at Boeing where she was responsible for IP management. In addition, the company’s board includes Marshall Phelps, Jr., a recognised expert in the field of IP management and monetisation, who previously managed Microsoft’s IP portfolio. More information on Mr. Cronin, Ms. Ries and Mr Phelps can be found in the notes to this announcement.
Commenting on the investment, Lord Dan Brennan, Chairman of the Board of Juridica Investments Limited, said: “This investment by JIL marks a new and constructive approach in the IP sector which should make for innovative and beneficial results. This partnership with ipCreate is a strong adjunct to JIL’s core business model and aligns well with the future of IP where the de novo creation of strategically valuable patents can transform purely legal processes into profitable business discussions.”
Also commenting on the investment, Richard Fields, Chief Executive Officer of Juridica Capital Management Limited, said: "Given Juridica's focus in monetizing litigation-related assets for major companies, IP acquisition and the associated creation and licensing opportunities surrounding patents present important investment opportunities for Juridica which complement the Company’s existing business model. The strategic stake in ipCreate will expand our relationships with Fortune 500 companies that want to monetize patent portfolios and enhance our ability to deploy capital into the IP market. We also believe this relationship with the deep team of talented IP professionals at ipCreate will enhance our ability to realise those investments in a shorter time-span with increased returns.”
Commenting on the strategic investment and partnership with Juridica, John Cronin, Chairman and Chief Executive Officer of ipCreate, said: “We are excited to have found such a strong strategic partner and investor in Juridica. By forming this partnership we have created a truly complete IP offering that can benefit the whole IP community, from inventors to Fortune 500 companies. For the portfolios we work on we can bring an understanding of the complete spectrum of opportunities beyond litigation. This is a truly unique partnership which positions Juridica at the forefront of the intellectual property industry.”
About the ipCreate team
John Cronin, Chairman, President and Chief Executive Officer
Prior to forming ipCG, Mr. Cronin spent over 17 years at IBM and became its top inventor with over 100 patents and 150 patent publications. He created and ran the IBM Patent Factory, which enabled IBM to hold more US patents than any other US company; and contributed to the start-up and success of IBM's licensing programme. Mr. Cronin and his team helped facilitate one of the largest increases in patent growth in US corporate history. The IBM Patent Factory added on average 800 original patents annually to IBM’s portfolio and helped to increase IBM’s annual IP licensing income from US$20 million to over US$1 billion.
Mr. Cronin has worked with over 700 companies and more than 10% of the Fortune 500. Over the years he has become a respected thought leader among executives who wish to align business issues with IP to create actionable financial results. Through his career Mr. Cronin has inspired and trained thousands of engineers and scientists in the best practices of how to invent.
Martha Ries, General Counsel and Chief Compliance Officer
Ms. Ries has over 25 years of legal and compliance experience in federal and state government, law firm and corporate settings. Prior to joining ipCreate, she held a number of management positions at The Boeing Company, most recently from 2007 to 2012 as Vice President of Intellectual Property Management, managing an organisation of over 140 IP professionals. From 2004 to 2007 she served as Vice President of Ethics and Business Conduct; and from 1997 to 2004 as divisional Chief Counsel and Corporate Counsel.
During her tenure as Boeing’s enterprise IP functional leader, Ms. Ries managed the creation and maintenance of Boeing’s global patent portfolio (which was recognised as the best in US aerospace and defence during her tenure) and instituted greater IP process discipline, training, compliance and enforcement to protect Boeing’s IP.
From 1990 to 1997, Ms. Ries was a partner and associate at the law firm of Bogle & Gates and from 1987 to 1990 she was a trial attorney for the US Department of Justice.
Marshall Phelps, Jr. Non-executive Director
Mr. Phelps spent many years at Microsoft and was responsible for worldwide management of the company's intellectual property portfolio, patent prosecution, licensing, standards and business development. He facilitated Microsoft's emergence as one of the world's largest IP companies with over 60,000 patents and applications, extensive copyright holdings and numerous trademarks. Mr. Phelps joined Microsoft following a 28 year career at IBM Corp., where he served as Vice President in the 1990s and was responsible for overseeing standards, telecommunications policy, industry relations, licensing, intellectual property law and management of a worldwide intellectual property portfolio of more than 35,000 patents and 8,500 trademarks.
By pursuing license agreements for these and other IP rights, such as trade secrets and copyrights, he transformed a function that traditionally produced costly overhead into a US$2 billion annual profit centre. He is a recognised expert on the management and monetisation of intellectual and intangible assets, entrepreneurship and innovation.
In 2006 he was elected to the initial class of the Intellectual Property Hall of Fame.
About ipCapital Group, Inc.
Under Mr. Cronin’s leadership, ipCG operates the world’s largest IP strategy consulting team. The company has created its unique ipCapital System® Methodology for consulting, capitalising on Mr. Cronin’s lifelong study of creative and inventive thinking processes, business strategy development and transaction negotiations. ipCG has also developed a world class licensing and transaction process. The ipCapital System Methodology provides for extraction and documentation of inventions, identifies opportunity and risk, drives transactions to completion and creates significant market value from IP.
View the full press release in PDF format.
Unaudited Half-Year Results for the Period Ended 30 June 2013
August 19, 2013Juridica announces its financial results for the six months ended 30 June 2013.read more >
Financial Highlights and Portfolio Valuation
• Realisation of approximately US$17.5 million in cash proceeds from settlements with multiple defendants previously recognised as unrealised gain. These cash proceeds will be delivered to the Company on 31 December 2013.
• Dividend of 10 pence per share, to be paid on 15 January 2014 to shareholders on the Register at 13 December 2013. This dividend is to be funded from the cash proceeds noted above.
• Total dividends announced or paid to shareholders in the calendar year to date total 23 pence per share.
• Net Asset Value (“NAV”) per ordinary share decreased 1.4% from US$2.20 at 31 December 2012 to US$2.17 at 30 June 2013. This decrease was primarily due to a total comprehensive loss of US$3.0 million, comprising the net of: US$4.0 million fund operating expenses, US$1.4 million of net unrealised gain generated from change in valuation of the Company’s investments; and US$0.4 million of intangible amortisation expenses.
• Lifetime gross proceeds achieved by the Company total US$117.3 million.
• Gross internal rate of return from completed investments at 82%.
• At 30 June 2013, the Company has invested or committed approximately US$161.4 million in 21 cases across 16 investments.
Lord Dan Brennan, Juridica's Chairman, said: "The results announced today demonstrate the Company’s continued progress with its portfolio. Taken together with the recently announced returns on investments, we look to the future with optimism and expect the portfolio to continue maturing as we remain focused on dividend income and NAV growth."
• Subsequent gross cash proceeds from settlements following the period totalled US$12.5 million which will be paid to the Company on 31 December 2013.
• During the period, the Company committed to make supplemental investments in two existing cases, totalling up to US$656,000.
Based on the outlook provided by the Manager, the Board expects significant returns from the Company’s investment portfolio during the remainder of 2013, through 2014 and beyond. This is based on the Manager’s review of presently scheduled trial dates, expected final decisions following trial, and possible settlements in multiple cases that are in an advanced stage of development.
View the full press release in PDF format.
Partial Settlement of Portfolio Case Generates US$12.5 Million Return
August 13, 2013Juridica is pleased to announce that further partial settlements from an investment within its maturing portfolio have generated gross cash proceeds of US$12.5 million. These settlements were completed in August and the Company will receive the cash proceeds at year end.read more >
The proceeds represent a realised gain on the Company’s investment and not a return of capital. The return generated is in line with the Company’s expectations, as previously reflected in the unrealised profits of the Company.
During 2013 the Company has paid or announced a total of 23 pence per share in dividends following continued success in its maturing portfolio of investments. Gross proceeds achieved during 2013 now total US$30 million, with further progress expected during the next 12 months.
As a result of today’s announcement and in anticipation of possible further returns before the year end, the Board will consider the declaration of additional dividends by the end of the year. If made, such sum would be not less than 4 pence per share in addition to the 10 pence per share (or approximately US$16million in aggregate) announced on 4 July 2013 which will be paid on 15 January 2014 to shareholders on the Register at 13 December 2013.
This latest successful investment return for Juridica continues the Company’s strong record of investment selection and brings the lifetime gross proceeds achieved by the Company to US$117.3 million. After payment of the dividend declared on 4 July 2013, Juridica will have returned US$64 million (or approximately £42 million) to shareholders in the form of US$54 million in dividends and US$10 million as a result of the September 2010 share buy-back scheme. Juridica has so far raised £115 million (US$210 million) of capital in two tranches.
Lord Brennan, Juridica’s Chairman, said: "We are pleased with the portfolio’s progress during the year and by our ability to deliver dividend income to investors. Today’s win underlines our confidence in the Company’s investments, validating the mix of opportunities chosen by our Investment Manager. We remain focused on the Company’s objectives of dividend income and NAV growth."
View the full release in PDF format.