Australian litigation funder Litigation Capital Management (LCM) reported a strong rise in full-year revenue and said it looks to an increase in corporate portfolio funding for future growth.

Revenue for the 12 months to June 30 was up 17% to A$34.7 million ($23.8 million), while gross profit of A$20.34 million ($14 million) increased by 23%, said the firm, which is listed on London's AIM stock exchange.

"We are pleased to present a strong set of results for FY 2019, which we have delivered alongside unprecedented growth and expansion across all areas of our business," said chief executive Patrick Moloney in a statement.

Net profit was down, however, due to higher costs.

The litigation funder reported a net profit for the year ending June 30 of A$10.2 million ($7 million), down 15% from A$12.0 million ($8.2 million) the year before. And cash receipts from the completion of litigation investments were down 1% at A$26.8 million ($18.4 million).

The Sydney-based firm opened offices in Singapore and London during the past year and is now looking to expand its corporate portfolio funding business, whereby a litigation funder provides capital for a range of litigation activities, both on the plaintiff side and the defence, for a company.

Moloney said the firm originated more than 15 applications and funded two corporate transactions during the past year. "This number might seem small, but it represents more than any other funder globally and corporate portfolio funding remains a key part of our growth strategy going forward," he said.

LCM said the use of litigation finance through choice rather than necessity – as is the case with corporate portfolio funding – is a far greater addressable market for the industry and is that remains almost entirely unaddressed.

"The significant growth opportunity here is for well-capitalised corporate entities that currently fund their own disputes on a balance sheet using their cash resources," the firm said. "LCM is observing an early, but encouraging, change in attitude from corporates globally as they recognise the value of using an external source of capital rather than shareholders' funds."

Nick Rowles-Davies, who was recruited to the London office as executive vice-chairman to target the corporate market, is a pioneer in the field, LCM said.

LCM has also been piloting a funding solution for the insolvency market in Australia and the U.K.

"Smaller claims arising out of insolvency typically require a less significant funding commitment and have a shorter duration period, which in turn will see potential returns being realised at a faster and more consistent rate," the company said.

Overall as of June 30, LCM had a portfolio of 29 current projects under management, up 45% from the year before. Some 23 projects are unconditionally funded and six projects are conditionally funded.

As of September 3, LCM said it has pre-qualified 64 pipeline projects with an estimated investment of A$394 million ($270.4 million).