Welcome!

News Feed Item

Burford Capital Posts 25% Profit Increase in Full Year 2013 Results

Dividend increase of 10% proposed

LONDON, March 31, 2014 /PRNewswire/ --



Burford Capital Limited ("Burford" or "the Company"), the world's largest provider of investment capital and risk solutions for litigation, announces its financial results for the full year ended 31 December 2013.

Highlights 

  • A 25% increase in Burford's profit before tax for 2013[1]to $42.5 million (2012: $34.1 million)
  • Notable increases in income from both the litigation investment and insurance businesses:
    • A 20% increase in litigation-related investment income reflecting continued portfolio activity and maturity
    • A 29% increase in insurance income during the period of Burford's ownership reflecting strong performance of the historical book
  • Continued strong investment returns:  Since inception, 25 investments have generated $147 million in gross investment recoveries and $50 million net of invested capital (a 43% increase over 2012's $35 million), producing a 52% net return on invested capital
  • Material increase in cash generation: in 2013, Burford generated $31.3 million of cash from the investment portfolio, an increase of 78% over 2012's $17.7 million
  • Significant levels of activity in the insurance business, with more than $150 million in new business exposure written in 2013, exceeding 2011 and 2012 combined
  • Ongoing demand for Burford's capital reflected in $62 million of new capital deployed in 2013 bringing commitments since inception to $419 million to 59 investments and current commitments to $264 million to 35 investments
  • First major step towards a more appropriate capital structure with the successful issue of $40 million in contingent preferred shares to improve capital utilisation and balance sheet flexibility
  • Active cost control, with operating costs declining by 10% over 2012
  • Dividend increase of 10% to 5.23¢ per share proposed on top of last year's 30% increase

Sir Peter Middleton, Chairman of Burford, commented: 

"Burford has achieved a significant amount in the past year, continuing to innovate and build the business in ways that sow the seeds for future growth.  We remain grateful for the continued support of our investors and look forward to the continued evolution of the business."

Christopher Bogart, Chief Executive Officer of Burford, commented:  

"2013 was another year of successful progress for Burford which saw continued significant growth in our levels of income and profits from both the litigation investment and insurance businesses and increased levels of activity throughout the business.  We are excited to be at the forefront of this rapidly maturing and evolving industry."

[1]Excluding the accounting impact of the Burford UK acquisition, the 2012 Reorganisation and UK restructuring costs

Financial Summary  

A financial summary is set out below. Burford's complete annual report and audited accounts are attached in .pdf form to this RNS and are available at http://www.burfordcapital.com/wp-content/uploads/2014/03/Burford_Capital_AR13_web.pdf The figures for taxation and profit after tax exclude the impact of the Burford UK acquisition, the 2012 Reorganisation and the one-off UK Restructuring costs and are shown to assist in understanding of the underlying performance of the Company. All other figures presented are derived directly from the audited consolidated financial statements.


                                                2013       2012   % change

    (US$000)

    Litigation-related investment income      38,847     32,457        20%
    Insurance-related income                  20,910     16,152        29%
    Other income                                 903      5,628

    Total income                              60,660     54,237        12%

    Operating expenses - corporate and
    investment                              (11,367)   (15,054)
    Operating expenses - insurance           (6,779)    (5,085)

    Profit before tax and the impacts
    relating to the Burford UK acquisition,
    the 2012 Reorganisation and UK
    Restructuring costs                       42,514     34,098        25%

    Taxation*                                (2,276)    (2,556)

    Profit after tax**                        40,238     31,542        28%


    * Taxation does not include deferred taxation credit on amortisation of
    embedded value intangible asset.
    ** This is profit after tax excluding the impact of the Burford UK
    acquisition, the 2012 Reorganisation, and UK Restructuring costs, which are
    included in the Consolidated Statement of Comprehensive Income on page 22 of
    the attached.

About Burford Capital 

Burford Capital is the world's largest provider of investment capital and risk solutions for litigation with the largest and most experienced dedicated team in the industry. Burford is publicly traded on the London Stock Exchange's AIM market under the ticker symbol BUR. Burford provides a broad range of corporate finance and insurance solutions to lawyers and clients engaged in significant litigation and arbitration around the world.

For more information about Burford, visit http://www.burfordcapital.com

Burford's complete annual report and audited accounts are available at http://www.burfordcapital.com/wp-content/uploads/2014/03/Burford_Capital_AR13_web.pdf

 

For further information, please contact: 

Macquarie Capital (Europe) Limited - NOMAD and Joint Broker
Steve Baldwin         +44 (0)20 3037 2000
Nicholas Harland

Espirito Santo Investment Bank - Joint Broker
John Llewellyn-Lloyd     +44 (0)20 7456 9191
Harry Stockdale

RBC Capital Markets - Joint Broker
Oliver Hearsey         +44 (0)20 7653 4000

FTI Consulting - PR for Burford Capital
Edward Berry         +44 (0)20 3727 1046
Laura Ewart         +44 (0)20 3727 1160


SOURCE Burford Capital

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
"DX encompasses the continuing technology revolution, and is addressing society's most important issues throughout the entire $78 trillion 21st-century global economy," said Roger Strukhoff, Conference Chair. "DX World Expo has organized these issues along 10 tracks with more than 150 of the world's top speakers coming to Istanbul to help change the world."
"With Digital Experience Monitoring what used to be a simple visit to a web page has exploded into app on phones, data from social media feeds, competitive benchmarking - these are all components that are only available because of some type of digital asset," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"Outscale was founded in 2010, is based in France, is a strategic partner to Dassault Systémes and has done quite a bit of work with divisions of Dassault," explained Jackie Funk, Digital Marketing exec at Outscale, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Kubernetes is an open source system for automating deployment, scaling, and management of containerized applications. Kubernetes was originally built by Google, leveraging years of experience with managing container workloads, and is now a Cloud Native Compute Foundation (CNCF) project. Kubernetes has been widely adopted by the community, supported on all major public and private cloud providers, and is gaining rapid adoption in enterprises. However, Kubernetes may seem intimidating and complex ...
"DivvyCloud as a company set out to help customers automate solutions to the most common cloud problems," noted Jeremy Snyder, VP of Business Development at DivvyCloud, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
While the focus and objectives of IoT initiatives are many and diverse, they all share a few common attributes, and one of those is the network. Commonly, that network includes the Internet, over which there isn't any real control for performance and availability. Or is there? The current state of the art for Big Data analytics, as applied to network telemetry, offers new opportunities for improving and assuring operational integrity. In his session at @ThingsExpo, Jim Frey, Vice President of S...
"We focus on SAP workloads because they are among the most powerful but somewhat challenging workloads out there to take into public cloud," explained Swen Conrad, CEO of Ocean9, Inc., in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"As we've gone out into the public cloud we've seen that over time we may have lost a few things - we've lost control, we've given up cost to a certain extent, and then security, flexibility," explained Steve Conner, VP of Sales at Cloudistics,in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We provide IoT solutions. We provide the most compatible solutions for many applications. Our solutions are industry agnostic and also protocol agnostic," explained Richard Han, Head of Sales and Marketing and Engineering at Systena America, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
DX World EXPO, LLC., a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
"We are focused on SAP running in the clouds, to make this super easy because we believe in the tremendous value of those powerful worlds - SAP and the cloud," explained Frank Stienhans, CTO of Ocean9, Inc., in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"Peak 10 is a hybrid infrastructure provider across the nation. We are in the thick of things when it comes to hybrid IT," explained , Chief Technology Officer at Peak 10, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.