Burford Capital Ltd - litigation finance firm - Reports best year in its history for portfolio performance, with group-wide capital provision-direct asset realisations up 72% to USD608 million. Total income for 2020 USD353.1 million, down 1%, while pretax profit falls 7% to USD208.6 million.
"We brought in more cash from case successes than ever before, amounting to USD1 billion group-wide, and we ended the year with more cash on hand and liquidity than we have ever had. Cumulatively, our return on invested capital since inception of 92% is at its highest ever year-end level on USD1.6 billion of recoveries. Our portfolio of ongoing matters is larger than at any point in our history and we have succeeded in growing it at a five-year compound annual rate exceeding 50%. We look to the remainder of 2021 with excitement," says Chief Executive Christopher Bogart.
Dividend restored to pre-pandemic level of 12.5 cents per share. Burford declared no 2020 interim dividend and for 2019 only paid out an interim dividend of 4.17 cents.
Separately, says it plans private offering of USD350 million senior notes due 2028 via wholly owned-subsidiary Burford Capital Global Finance LLC. Burford intends to use the proceeds for general corporate purposes.
Current stock price: 595.00 pence
Year-to-date change: down 16%
By Lucy Heming; lucyheming@alliancenews.com
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Burford Capital (BUR)