Business
Update On Liquidity Strength And COVID-19 Impact
Update On Liquidity Strength And COVID-19 Impact.
About this update from Burford Capital Limited
[{"type":"text","content":"\n \n \n RNS Number : 4991I\n Burford Capital Limited\n 02 April 2020\n \n \n \n \n \n \n \n 2 April 2020\n \n \n \n \n \n \n \n \n BURFORD CAPITAL UPDATE ON LIQUIDITY STRENGTH AND COVID-19 IMPACT\n \n \n \n \n \n Burford Capital Limited (\"Burford Capital\" or \"Burford\" or \"the Company\"), the leading global finance and investment management firm focused on law, today\n provides an update on its strong liquidity position and the impact of the COVID-19 pandemic.\n \n \n \n \n \n In summary:\n \n \n \n \n \n · \n Burford's business has transitioned well to working remotely around the world\n \n \n · \n Burford expects the progress of some existing matters to slow although others remain on pace and the courts remain open\n \n \n o \n Unlike many business matters, litigation progress is not affected by economic conditions. The only effect, if there is any, on court and arbitration timetables will be due to actual COVID-19 impacts \n \n \n · \n In the short term, new business will inevitably slow, but in the longer term, economic disruption tends to generate litigation and thus potentially significant levels of new opportunities for Burford especially given corporate liquidity constraints\n \n \n · \n Burford's own liquidity is more than sufficient for its needs although to maximise future opportunity Burford will seek to husband liquidity (including by not recommending a final 2019 dividend) \n \n \n o \n $161 million of cash and cash management investments on hand\n \n \n o \n $180 million of shorter duration investments\n \n \n o \n $758 million of undrawn fund and sovereign wealth capital\n \n \n · \n Burford's draft annual report and accounts for FY2019 are well advanced but finalisation of the audit has been affected by COVID-19-related delays (and Burford is mindful of the announcements made by the UK regulators on financial reporting timetables including by the Financial Reporting Council (\"FRC\") and through the FCA's moratorium) and we have not yet agreed on a release date with Ernst & Young\n \n \n o \n We expect to release financial statements that are consistent with the guidance provided in our 3 February 2020 trading update \n \n \n \n \n \n Burford's business operations\n \n \n \n \n \n Burford has completed the transitio...