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Burford Capital  -  BUR   

Interim Results for six months ended 30 June 2017

Released 07:00 27-Jul-2017

RNS Number : 2196M
Burford Capital
27 July 2017
 

This announcement contains inside information.

 

27 July 2017

 

BURFORD CAPITAL DELIVERS 151% GROWTH IN FIRST HALF OPERATING PROFIT

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: 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#'.  

 

 

The person responsible for arranging for the release of this announcement on behalf of the Company is Elizabeth O'Connell, Managing Director.

 

For further information, please contact:

 

 

Burford Capital Limited


Elizabeth O'Connell, CFA, Managing Director

+1 212 235 6825



Macquarie Capital (Europe) Limited - NOMAD and Joint Broker

+44 (0)20 3037 2000

Jonny Allison


Nicholas Harland




Liberum Capital Limited - Joint Broker

+44 (0)20 3100 2222

Richard Crawley


Jamie Richards




Numis Securities Limited - Joint Broker

+44 (0)20 7260 1000

Charlie Farquhar


Andrew Holloway




Neustria Partners - Financial Communications for Burford Capital

+44 (0)20 3021 2580

Robert Bailhache [email]                                            


Charles Gorman [email]


Nick Henderson [email]


 

 

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


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Interim Results for six months ended 30 June 2017 - RNS