Guess which ASX 300 share is soaring 11% on a 'significant improvement' in FY22

Shares in the litigation financier and legal risk manager are flying high today.

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Key points

  • This ASX 300 share is surging during Tuesday's session
  • Omni Bridgeway is trading more than 11% higher at the time of writing as investors react to the company's FY22 results
  • Its shares are up almost 24% year to date 

The Omni Bridgeway Limited (ASX: OBL) share price is surging on Tuesday after the release of the company's FY22 results.

At the time of writing, shares in the litigation financier are trading 11.44% higher at $4.58 apiece.

Let's take a closer look.

Omni Bridgeway sees annual commitments

Key takeouts from the ASX 300 share's results include:

  • Record annual commitments of $463.3 million, a gain of 12% year on year
  • Funds under management approaching $3 billion
  • Growth in estimated portfolio value (EPV) of 35% year on year to $27.2 billion
  • Implied embedded value (IEV) increased for the 12 months by 28% to $3.6 billion
  • Net profit after tax (NPAT) of $6.5 million, up from an $18 million loss the year prior
  • Participated for the first time in the emerging secondary market for litigation assets
  • Launched global enforcement business and antitrust team in the US
  • Finished the year with $314.1 million in cash and receivables

What else happened for this ASX 300 share?

It was a profitable 12 months for the company. It achieved a record level of investment commitments which expanded the group's portfolio of investments across the globe.

Omni also generated $221 million in gross income and revenue during the year. This stemmed from a variety of sources, it says, including "66 completions, 23 partial completions and two partial sales".

These were spread across various classes of litigation, investment funding structures, and locations.

Meanwhile, the company recognised a net profit after tax of $6.5 million, a substantial gain from FY21's loss of $18.4 million.

It also entered into a new five-year institutional debt facility on 5 May 2022 providing $250 million in liquidity to replace existing debt.

Management commentary

Speaking on the results, managing director and CEO Andrew Saker said:

The group continued to execute on the critical pillars of its five-year business plan including through the refinancing its debt, the launch of a new enforcement focused fund, substantial growth in commitments and the expansion of its product offerings.

The impact from the delayed hearing of legal cases due to COVID is well behind us and these results demonstrate that our fund management model is delivering.

What's next for Omni Bridgeway?

The company has a $550 million to $600 million commitment target, signifying a 20-30% year-on-year increase.

The ASX 300 share hopes to increase funds under management to between $4 billion and $4.5 billion, and will potentially launch additional funds to accelerate this number.

The Omni Bridgeway share price is up almost 24% year to date.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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