Burford Capital Interim Results for six months ended 30 June 2017 (2196M)

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 [phone] / [phone] / (Toll free [phone] / [phone]) 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 [phone] / [phone] 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       [phone] 
    - NOMAD and Joint Broker                 2000 
   Jonny Allison 
   Nicholas Harland 
 
   Liberum Capital Limited - Joint          [phone] 
    Broker                                   2222 
   Richard Crawley 
   Jamie Richards 
 
   Numis Securities Limited - Joint         [phone] 
    Broker                                   1000 
   Charlie Farquhar 
   Andrew Holloway 
 
   Neustria Partners - Financial            [phone] 
    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

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July 27, 2017 02:01 ET (06:01 GMT)