Burford Capital Limited Announces Half Year Results
01 Aug, 2012
Burford Capital Limited (“Burford Capital” or “Burford” or “the Company”), the world’s largest provider of investment capital and risk solutions for litigation, announces its financial results for the half year ended 30 June 2012.
- Continued strong portfolio performance and robust market for litigation finance.
- Five core investments resolved in the period, bringing the total to 14 investments which have now concluded entirely or completed trial. The aggregate net expected return on those investments when fully paid is 70%.
- Completion of Firstassist acquisition on 29 February 2012, and successful launch of UK litigation finance business.
- Firstassist already demonstrating success: it was acquired for $11.5 million net of cash at closing and in the four months since completion Firstassist has already contributed $4.8 million in EBITDA and $3.7 million in profit before the effects of acquisition accounting.
- Following good performance of the short duration portfolio, we are now in a waiting period while the core portfolio matures, although we are seeing early results.
- Total income increased by 18% to $13.6 million (June 2011: $11.5 million)
- Profit after tax and excluding one-time acquisition expenses ($2.0 million) was $7.0 million (June 2011: $7.1 million)
- Burford made new commitments of $44.6 million to investments in the period; total commitments since inception now amount to approximately $332 million.
- Burford has now generated $46 million in lifetime income and has paid $13.2 million in dividends to shareholders
Sir Peter Middleton, Chairman of Burford Capital, commented: “Burford has had a busy and successful six months. We have not only continued active deployment of capital into new investments but have continued to expand the investment structures we offer in the market, and have launched a domestic funding business in the UK. We have been gratified by investor support, with more than 93% of shareholders voting at our most recent AGM and unanimously approving all matters presented.”
Christopher Bogart, Chief Executive Officer of Burford Group, commented: “Burford has benefitted from the fact that awareness of litigation finance has never been greater, as is the demand for the solutions it can provide. Our pipeline of potential investment opportunities is at a record high, and we continue to innovate for new uses of capital and investment structures. Indications of performance are encouraging, although the core portfolio will naturally take some time to mature.”
Burford is the world’s largest provider of investment capital and risk solutions for litigation.
Burford Capital Limited is a closed-end $300 million investment fund publicly traded on the London Stock Exchange’s AIM market under the ticker symbol BUR. Burford provides a broad range of corporate finance solutions to lawyers and clients engaged in significant litigation and arbitration around the world. Burford Group Limited serves as the investment adviser to Burford Capital and has an expert team drawn from major law firms and corporations.