(Alliance News) - Shares in Burford Capital Ltd fell as it reported revenue plummeted, resulting in a first-quarter loss.
Shares in the litigation finance provider with offices in London, New York and elsewhere were down 3.4% to 1,212.00 pence in London early Monday afternoon, following the announcement.
In the first quarter of 2024, Burford Capital reported a pretax loss of USD18.9 million, swinging from a USD308.5 million profit a year prior. The attributable net loss was USD29.9 million compared to a USD259.4 million profit.
Revenue plunged 88% to USD44.3 million from USD380.9 million a year ago.
Tangible book value attributable to Burford Capital decreased 1.2% to USD9.73 per share at March 31 from USD9.85 a year prior.
Chief Executive Officer Christopher Bogart, said the drop in revenue reflected the "variable timing of recognition we expect in our business".
Burford Capital said portfolio case development was "progressing well" with no individual asset having a material impact on first quarter performance.
Bogart noted the quarter saw its "highest ever" reported level of first quarter cash receipts, above-average realized gains, continued case conclusions with loss levels below historical experience and "moderate new business activity broadly consistent with a typical first quarter".
"The underlying portfolio continued to show forward momentum with no material negative developments, while lower operating expenses reflected the absence of elevated variable costs," he added.
Burford Capital said operating expenses were reduced by 44% to USD30.1 million from USD54.3 million.
By Jeremy Cutler, Alliance News reporter
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Burford Capital (BUR)