Litigation Capital Management write-off prompts strategic review as AIM edges higher

Litigation Capital Management plc has struggled in 2025, with its shares down about 70% after a string of setbacks. The lawsuit financier abandoned an Australian class action and wrote off £15 million, the latest in a sequence of costly reversals for the group. Chief executive Patrick Moloney said the withdrawal was challenging but necessary after flaws emerged in the suit's preparation. The company said it is pursuing the law firm originally tied to the claim as part of a broader strategic review led by Luminis Partners to determine the business’s future shape.

The write-off comes in what observers describe as one of the toughest years in the company’s history, with investors rattled and management seeking options to salvage value. Luminis Partners has been tapped to conduct a strategic review that will examine whether the business should pivot, shrink, or pursue new lines of activity in litigation financing. While the firm has faced mounting scrutiny, it has also indicated it remains active in pursuing recoveries from parties linked to its current claims portfolio as part of its rebalancing effort.

The broader market backdrop for the week was mixed. The AIM All-Share rose 0.7% to 773.09, outpacing the FTSE 100, which slipped 0.5%. For life sciences investors, momentum was a study in contrasts: upbeat developments in some names contrasted with caution or setbacks in others. GENinCode surged 116% over the period, prompting the company to issue a statement that it did not understand the cause of the sudden move, while reiterating guidance issued in August that cited ongoing regulatory talks in the United States and active distribution discussions in the US and Europe.

Renalytix rose 33% after striking a deal with US health-tech group Tempus AI to expand access to its kidneyintelX.dkd test across Tempus’s network of American providers. The collaboration is expected to broaden the test’s reach to roughly 15 million Americans living with type 2 diabetes and chronic kidney disease, a target demographic that aligns with rising demand for kidney-related diagnostics and risk stratification.

Futura Medical appeared to have cracked a large market with an over-the-counter, fast-acting erectile dysfunction gel, but after an encouraging start the product faced softer demand and a profit warning released on Friday sent the stock down 40%. In response, a strategic review was launched to reassess prospects for the product and the company’s broader portfolio.

There were notable gains in technology-focused small caps as well. Quadrise, which has developed a chemical additive intended to make shipping fuel greener and more efficient, advanced 33% after announcing the successful completion of a proof-of-concept fuel trial in Panama with its SparklePower partner at the El Giral plant. Kromek, a provider of radiation and bio-detection technologies, gained 24% after reporting its first-ever annual profit, a milestone that brokers said could lay a solid foundation for growth in the coming year. Cavendish, a broker covering the stock, stated that the current price of around 6 pence could be worth 26 pence given the company’s growth trajectory and earnings potential.

Nativo jumped 61% after agreeing to take full control of the Boku gold project in Peru. The company will acquire the remaining 50% it does not own at no cash cost, swapping its REINFO interest. Chief executive Stephen Birrell said the move would streamline operations and sharpen the focus on the Peru asset’s value potential.

Genflow Biosciences, the market’s only listed longevity-focused company, drew attention later in the week as two major animal-health players entered confidential talks about data sharing and potential collaboration. Genflow’s GF-1004 dog-ageing program, which targets a SIRT6 variant believed to be associated with centenarians, is already in beagle studies with no safety issues reported to date. Eric Leire, Genflow’s chief executive, described the discussions as reflecting strong industry interest that could lead to licensing deals and commercial arrangements for both human and animal health indications. Genflow’s shares closed the week up about 18%.

For all the breaking small- and mid-cap news, investors looked to ongoing corporate actions, regulatory updates, and the alignment of science with business strategy across diverse sectors. The week underscored the ongoing volatility and the mix of opportunities in the UK’s growth-focused market, where a handful of single events can drive outsized moves in smaller stocks even as broader indices show modest gains or declines.

The week’s activity highlights the persistent tension in the small-cap space between displays of potential and the real-world execution risk that accompanies new ventures, complex regulatory environments, and high-stakes legal-finance strategies. Market participants will be watching closely how Luminis Partners’ strategic review interacts with Litigation Capital Management’s ongoing efforts to recover value from its existing claims and whether the broader market’s cautious optimism can sustain a rally across the AIM All-Share in the weeks ahead.