Business
Update on 2019 Trading Performance
Update on 2019 Trading Performance.
About this update from Burford Capital Limited
[{"type":"text","content":"\n \nRNS Number : 7065B Burford Capital Limited 03 February 2020 \n\n \n \n3 February 2020\n \nUPDATE ON 2019 TRADING PERFORMANCE\n \nRecord new commitments surpass $1.5 billion; returns remain robust\n \nBurford Capital Limited (\"Burford Capital\" or \"Burford\" or \"the Company\"), the leading global finance and investment management firm focused on law, today released a trading update on its 2019 activities.\n \nSummary\n \nIn summary, on a Group-wide basis at or for the year ended 31 December 2019, unless otherwise indicated:\n \n· $1.6 billion in new commitments, a 24% increase over 2018 and a new record\no Core litigation finance commitments grew by 30% to $854 million\n \n· Cash returns remained robust and increased slightly with the balance sheet core litigation finance portfolio producing 93% ROIC and 31% IRR (2018: 85% and 30%, respectively) since inception\n \n· Cash proceeds up 23% to $997 million, including $500 million in proceeds to the balance sheet\no Ended 2019 with $192 million of balance sheet cash on hand, up from $171 million as at 30 June 2019\no Collected during the second half 97% of $173 million of investment receivables on the balance sheet as at 30 June 2019\n \n· Burford again deployed $1.1 billion to investments in the year, which continues to build the portfolio for future expected returns\n \n· Lowest level of balance sheet investment losses in Burford's history, confirming portfolio strength\n \n· Balance sheet net realised gains and unrealised gains for 2019 are expected to be lower than in 2018. While this will have an impact on net income and profit for 2019, Burford's policy is to manage litigation outcomes for optimal shareholder value rather than to its financial year end. This approach has already been vindicated with January 2020 seeing litigation successes that would trigger unrealised gains and, if ultimately affirmed and paid, would generate more than $150 million in profits across the Group and more than $100 million in balance sheet profits from a single month's activity. Had January's events occurred in December, Burford's 2019 results would have been materially hi...