Staff at IMF Australia will not receive a bonus this year, after the litigation funder saw its profits almost halved for the 2010 financial year compared to the previous period.
IMF posted a $11.9 million profit on Tuesday (24 August), down from the $20.7 million declared in the previous financial year.
Although the funder has resolved seven significant cases during the reported period - including AWB and Sons of Gwalia - IMF has also suffered a major loss, that being the Kingstream class action which was dismissed on 30 June.
In a statement to shareholders, IMF chairman Hugh McLernon said that despite hitting "the Kingstream hurdle" he believed the firm has made good profits, but that the firm is not prepared to forecast the future until more certainty surrounding their profits can be determined.
As such, McLernon said staff have not received a bonus this year, and no final dividend will be declared to shareholders.
Still, McLernon confirmed management plans "to increase cases under management from one to two billion dollars by 30 June 2011."
McLernon added that the funder will, over the course of the year, investigate debt funding as well as the potential to augment capital and liquidity requirements with a series of funding trusts.
"I believe we have reached the first serious inflection point in the history of litigation funding since IMF listed in 2001 which will result in the institution of the first truly international litigation funding operation," said McLernon.
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