TIDMBUR
RNS Number : 3200F
Burford Capital
27 July 2016
This announcement contains inside information.
27 July 2016
BURFORD CAPITAL
INTERIM FINANCIAL REPORT
FOR THE SIX MONTHS ENDED 30 JUNE 2016
Burford Capital Limited ("Burford" or the "Company"), a leading
global finance firm focused on law, announces its financial results
for the half year ended 30 June 2016.
Highlights
-- Income increased by 88% to $76.2 million (H1 2015: $40.6
million), driven by a 110% increase in income from litigation
investment to $64.4 million (H1 2015: $30.7 million)
-- 117% increase in operating profit to half-year record of
$61.7 million (H1 2015: $28.4 million), and 123% increase in profit
after tax to $52.8 million (2015: $23.7 million)
-- Interim dividend of 2.67c (H1 2015: 2.33c) declared, at the
rate of one third of total 2015 dividend - an increase of 15% over
last year's interim dividend. Interim dividend payable on 28
October 2016 with record date of 7 October 2016
-- Strong demand for Burford's capital, with record new
commitments to investments of $200 million (1H 2015: $81 million),
at an average commitment level of over $10 million
-- Record organic cash generation of $99 million, including $84 million from litigation finance investments
-- Beneficiary of weaker Sterling, with 94% of balance sheet
assets denominated in US Dollars and 100% of debt GBP denominated
as at 30 June 2016
Sir Peter Middleton, Chairman of Burford, commented:
"Burford has committed more capital than in any other six-month
period previously to support law firm and corporate clients, while
delivering strong investment returns for our shareholders and
continuing to show the potential of the litigation finance
business. We look forward to continuing to serve our clients with a
broad range of financial solutions."
Christopher Bogart, Chief Executive Officer of Burford,
added:
"During one of the most volatile financial market periods for
many years, Burford has continued to grow strongly and profitably,
significantly enhancing shareholder value. Together these results
underscore our ability to generate cash from litigation finance
investments without regard to economic or market conditions,
underscoring the lack of correlation between Burford's returns and
the business cycle."
Financial Summary
A financial summary is set out below. Burford's complete interim
report and unaudited accounts are available at
http://www.rns-pdf.londonstockexchange.com/rns/3200F_1-2016-7-26.pdf
or from the Burford website: www.burfordcapital.com.
30 June 30 June
Six months ended 2016 2015 % change
$'000 $'000
Litigation investment
income 64,439 30,695 110%
Insurance income 5,113 6,469 (21%)
New initiatives income 6,141 2,273
Other income 522 1,168
Total Income 76,215 40,605 88%
Operating expenses -
litigation investment (8,636) (6,444)
Operating expenses -
insurance (830) (1,508)
Operating expenses -
new initiatives (2,632) (2,497)
Operating expenses -
corporate (2,437) (1,782)
Operating profit 61,680 28,374 117%
Finance costs (5,876) (4,589)
Profit before tax 55,804 23,785 135%
Total taxation (3,000) (69)
Profit after tax 52,804 23,716 123%
Cents Cents
Basic and diluted profit
per ordinary share 25.52 11.30 125%
Investor and Analyst Conference Call
Management will host a conference call for investors and
analysts at 2:00pm (BST) / 09.00am (EDT) on Wednesday 27 July 2016.
The dial-in number for the conference call is +44 (0)20 3003 2666 /
+1 866 966 5335 and the password is 'Burford'.
An accompanying presentation will be available on the Burford
Capital website:
http://www.burfordcapital.com/investor-relations/
A replay facility will be available until Wednesday 10 August
2016 by dialling +44 (0)20 8196 1998 / +1 866 583 1035 with the
passcode '1873102#'.
For further information, please contact:
Macquarie Capital (Europe) Limited
- NOMAD and Joint Broker +44 (0)20 3037 2000
Ken Fleming
Nicholas Harland
Nick Donovan
Haitong Securities (UK) Limited
- Joint Broker +44 (0)20 7456 9191
John Riddell
Harry Stockdale
RBC Capital Markets - Joint Broker +44 (0)20 7653 4000
Oliver Hearsey
Neustria Partners - Financial
Communications for Burford Capital +44 (0)20 3021 2580
Robert Bailhache
Charles Gorman
Nick Henderson
About Burford Capital
Burford is a leading global finance firm focused on law. Our
businesses include litigation finance, insurance and risk transfer,
law firm lending, corporate intelligence and judgment enforcement,
and a wide range of investment activities. Burford's equity and
debt securities are publicly traded on the London Stock Exchange.
We work with lawyers and clients around the world from our
principal offices in New York and London.
For more information about Burford, visit
www.burfordcapital.com
This information is provided by RNS
The company news service from the London Stock Exchange
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July 27, 2016 02:01 ET (06:01 GMT)