Dividend increase of 10% proposed
Burford Capital Limited (“Burford” or “the Company”), the world’s largest provider of investment capital and risk solutions for litigation, announces its financial results for the full year ended 31 December 2013.
A 25% increase in Burford’s profit before tax for 2013 to $42.5 million (2012: $34.1 million)
- Notable increases in income from both the litigation investment and insurance businesses: A 20% increase in litigation-related investment income reflecting continued portfolio activity and maturity; A 29% increase in insurance income during the period of Burford’s ownership reflecting strong performance of the historical book
- Continued strong investment returns: Since inception, 25 investments have generated $147 million in gross investment recoveries and $50 million net of invested capital (a 43% increase over 2012’s $35 million), producing a 52% net return on invested capital
- Material increase in cash generation: in 2013, Burford generated $31.3 million of cash from the investment portfolio, an increase of 77% over 2012’s $17.7 million
- Significant levels of activity in the insurance business, with more than $150 million in new business exposure written in 2013, exceeding 2011 and 2012 combined
- Ongoing demand for Burford’s capital reflected in $62 million of new capital deployed in 2013 bringing commitments since inception to $419 million to 59 investments and current commitments to $264 million to 35 investments
- First major step towards a more appropriate capital structure with the successful issue of $40 million in contingent preferred shares to improve capital utilisation and balance sheet flexibility
- Active cost control, with operating costs declining by 10% over 2012
- Dividend increase of 10% to 5.23¢ per share proposed on top of last year’s 30% increase
Sir Peter Middleton, Chairman of Burford, commented:
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“Burford has achieved a significant amount in the past year, continuing to innovate and build the business in ways that sow the seeds for future growth. We remain grateful for the continued support of our investors and look forward to the continued evolution of the business.”
Christopher Bogart, Chief Executive Officer of Burford, commented:
“2013 was another year of successful progress for Burford which saw continued significant growth in our levels of income and profits from both the litigation investment and insurance businesses and increased levels of activity throughout the business. We are excited to be at the forefront of this rapidly maturing and evolving industry.”