Burford Capital Delivers 151% Growth in First Half Operating Profit
July 27 2017 - 2:20AM
Business Wire
Investment income up 148%
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 2017.
Highlights
- Best ever results in Burford’s history:
1H 2017 profit exceeds record profit for full year 2016
- Income increased by 130% to $175.5
million (H1 2016: $76.2 million), driven by a 148% increase in
investment income to $161.6 million (H1 2016: $65.3 million)
- 151% increase in operating profit to
half-year record of $155.0 million (H1 2016: $61.7 million), and
170% increase in profit after tax to $142.7 million (H1 2016: $52.8
million)
- Interim dividend of 3.05¢ (H1 2016:
2.67¢) declared, at the rate of one third of total 2016 dividend –
an increase of 14% over last year’s interim dividend. Interim
dividend payable on 15 November 2017 with record date of 20 October
2017
- Strong demand for Burford’s capital,
with record new commitments to investments of $488 million
(comprising $226 million from our balance sheet and $262 million
from our investment funds), $289 million of which already
deployed
- Record investment performance
underpinned by 11 investments, including largest cash generation
from a single investment in our history, the sale of 25% of our
ongoing Petersen investment
- Cash generation of $173.7 million from
investments on balance sheet, exceeding every previous half-year
period
- Oversubscribed retail bond offering,
raising £175 million at a 5% coupon, to further support client
demand and future growth
- Gerchen Keller acquisition and
integration successful and well-received, first fund starting to
generate performance fees. Burford’s new investment management
business closed largest investment fund ever raised in sector, at
$500 million, to invest in complex strategies
Sir Peter Middleton, Chairman of Burford, commented:
“In just under eight years, Burford has grown from an £80
million startup to become the clear industry leader. In six months,
we have committed almost half a billion dollars to new investments.
We look forward to continuing to develop our core business
while supporting all our clients with a broad range of
financial solutions.”
Christopher Bogart, Chief Executive Officer of Burford,
added:
“Burford has had an exceedingly active first half. Our continued
strong growth has been driven by rising client demand as well as
our ongoing investment in broadening our product offering and
pioneering new markets. As the industry advances, we continue to
innovate legal cost and risk management techniques while delivering
strong investment returns for shareholders.”
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/2196M_-2017-7-26.pdf
or from the Burford website:
http://www.burfordcapital.com/investors.
Six months
ended
30 June 2017
Six months
ended
30 June 2016
% change $’000 $’000
Investment income † 161,633 65,267 Investment management income
7,534 - Insurance income 4,626 5,113 New initiatives income † 897
5,313 Other income 834 522
Total Income
175,524 76,215 130% Operating expenses
– investments † (10,611) (9,811) Operating expenses – investment
management (3,569) - Operating expenses – insurance (914) (830)
Operating expenses – new initiatives † (1,755) (1,457) Operating
expenses – corporate (3,720) (2,437)
Operating profit
* 154,955 61,680 151% Finance costs
(10,015) (5,876)
Profit before tax * 144,940
55,804 160% Total taxation (2,206) (3,000)
Profit after tax * 142,734 52,804
170% Cents Cents
Basic and diluted profit per
ordinary share** 63.89 25.52 150%
† As reported in the 2016 interim report, law firm lending
investments are included in the investments segment commencing with
the 2016 annual report whereas historically they were included in
the new initiatives segment. The 30 June 2016 figures have been
restated for comparative purposes.
* Operating profit, profit before tax and profit after tax for
30 June 2017 do not include the amortisation of intangible asset
relating to the Gerchen Keller acquisition and investment banking
and brokerage fees.
** Calculated on a pure IFRS basis as shown on the Consolidated
Statement of Comprehensive Income on page 11 of the 2017 interim
report.
Investor and Analyst Conference Call
Management will host a conference call for investors and
analysts at 2:00pm (BST) / 9.00am (EDT) on Thursday 27 July 2017.
The dial-in number for the conference call is +44 (0) 20 3003 2666
/ +1 646 843 4608 / (Toll free +44 (0) 808 109 0700 / +1 866 966
5335) and the password is ‘Burford’.
An accompanying presentation will be available on the Burford
Capital website: http://www.burfordcapital.com/investors/
A replay facility will be available until Thursday 10 August
2017 by dialling +44 (0) 20 8196 1998 / +1 866 583 1035 with the
passcode ‘5490256#’.
This announcement contains inside information. The person
responsible for arranging for the release of this announcement on
behalf of the Company is Elizabeth O'Connell, Managing
Director.
About Burford Capital
Burford Capital is a leading global finance and investment
management firm focused on law. Its businesses include litigation
finance and risk management, asset recovery and a wide range of
legal finance and advisory activities. Burford is publicly traded
on the London Stock Exchange, and it works with law firms and
clients around the world from its principal offices in New York,
London and Chicago.
For more information about Burford: www.burfordcapital.com
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170726006438/en/
Burford Capital LimitedElizabeth O’Connell, CFA, Managing
Director+1 212 235 6825orMacquarie Capital (Europe) Limited
– NOMAD and Joint BrokerJonny AllisonNicholas Harland+44 (0)20 3037
2000orLiberum Capital Limited - Joint BrokerRichard
CrawleyJamie Richards+44 (0)20 3100 2222orNumis Securities
Limited - Joint BrokerCharlie FarquharAndrew Holloway+44 (0)20
7260 1000orNeustria Partners - Financial Communications for
Burford CapitalRobert Bailhache [email]Charles Gorman [email]Nick
Henderson [email]+44 (0)20 3021 2580
Burford Capital (LSE:BUR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Burford Capital (LSE:BUR)
Historical Stock Chart
From Apr 2023 to Apr 2024