Ann: Investor Presentation-IMF.AX, page-19

Having updated the spreadsheet I keep to price IMF-Bentham two points not noted in my earlier review;

i) LCIP written down of $11.4 m & lost appeals of $12.9 are almost together almost as bad as the $28.6 m lost in 2015 - $28.6 m. 2014's figure was $15.4 m while before that these losses were small.

As a % of prior year's Settlements and Judgements this amounts to 34.4%  for the last three years!

A very worrying metric

ii) Through this growth phase the Litigation Contracts in Progress LCIP are going to suck up tonnes of liquidity.

$46.2m was drawn into LCIP for 2016!

I comparison this  stands out over the drain on the same LCIP operating funds of roughly ~ $11.2 m p.a. over the preceding six years.

If the Case Investment is any any dicator:- As at 1 July 2015 IMF-Bentham face a $2,002.5 case investment, whereas an at 1 July 2016 that figure is $3,438.0 m. a 70% increase.

That is going to place a lot of pressure on funds flows for 2017.

One aside;-

IMF-Bentham has to hold a huge balance of cash on hand.  If a decent funding arrangement could be organised to fund IMF-Bentham as and when it needed the cash, a large INACTIVE asset could be drawn out the Capital Employed in this entity.

As at 1 July $130m odd could hypothetically be drawn out IMF-Bentham, and the core entity that remained would still generate the same operating return! With a market cap of only $258.6 m as at 1 July 2016, that means almost HALF the value of IMF-Bentham has to be ascribed to a by & large dead asset!

i.m.h.o