TIDMBUR
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 3.05c (H1 2016: 2.67c)
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
GBP175 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 GBP80
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 Six months
ended ended
30 June 30 June
2017 2016 % change
$'000 $'000
Investment income 161,633 65,267
Investment management 7,534 -
income
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 - (3,569) -
investment management
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 +1 212 235
Director 6825
Macquarie Capital (Europe) Limited +44 (0)20 3037
- NOMAD and Joint Broker 2000
Jonny Allison
Nicholas Harland
Liberum Capital Limited - Joint +44 (0)20 3100
Broker 2222
Richard Crawley
Jamie Richards
Numis Securities Limited - Joint +44 (0)20 7260
Broker 1000
Charlie Farquhar
Andrew Holloway
Neustria Partners - Financial +44 (0)20 3021
Communications for Burford Capital 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
END
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