(Alliance News) - Burford Capital Ltd on Tuesday said it had seen a "meaningful" improvement in its financial results in 2022 as its revenue and income jumped.
The commercial legal finance provider reported a pretax income of USD109.0 million in 2022, up sharply from USD2.8 million the year prior. Revenue in the year climbed 47% to USD319.2 million from USD217.3 million.
New commitments grew 5% year-on-year to USD1.2 billion in the group-wide business. On a Burford-only basis, new commitments grew 22% to a record USD726 million.
Chief Executive Christopher Bogart said: "The pace of case progress in our portfolio quickened in 2022, resulting in a meaningful improvement in our financial results.
"Court activity has continued to work through the backlog caused by the Covid-19 pandemic, and we are seeing a high level of portfolio activity in 2023, with 28 case milestones already having occurred and 61 more expected through the remainder of the year.
"We believe our portfolio is at a turning point, with a potential increase in our realization rate as more of our capital provision assets resolve. We expect to continue to see strong demand for our capital from tighter financial conditions and an unfolding economic downturn."
Results for the first quarter of 2023 are expected to be announced in the first half of June.
By Heather Rydings, Alliance News senior economics reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
Burford Capital (BUR)