Burford Capital Limited · LSE:BUR
Burford Capital — H1 2015 Earnings Presentation
13 slides from Burford Capital's earnings presentation, Jul 18, 2015
Slide 1: Burford Capital 1H 2015 Results
Investor Presentation Burford Capital 1H 2015 Results July 2015 | Burford
Slide 2: Hundreds of companies have used litigation finance (The New Yorker quote)
“Hundreds of companies, increasingly from the Fortune 500, have used litigation finance, convinced that it was in their interest.” The New Yorker, July 2015
Slide 3: Strong financial performance
Strong financial performance Substantial increase in total income and profit • Litigation cash receipts $94 million, up 123% • Operating profit margin 70% (1H 2014: 67%) • Operating expenses flat 1H 2015 versus 2H 2014 • Total assets $541 million • debt $143 million • unrealised gain - 8% of asset
Slide 4: Repeated profitability and sustained growth
Repeated profitability and sustained growth 4
Slide 5: Dividend underpinned by strong net realisations
Dividend underpinned by strong net realisations Interim dividend of 2.33¢ to be paid 23 October 2015 • Burford has paid a dividend every year since going public • In 2014 Burford moved to paying dividends twice yearly from a single annual dividend payment • Proposed interim dividend of 2.33¢ is on
Slide 6: Proven litigation investment model
Proven litigation investment model Demonstrated ability to invest capital wisely and profitably in the legal sector having generated more than $175 million of income since inception 6
Slide 7: Strong portfolio returns
Strong portfolio returns Burford has the industry’s largest diversified portfolio • Through the end of June 2015 the investment portfolio has had: • 38 investments conclude generating • $299 million in gross investment recoveries and • $124 million net of invested capital • Since inception the con
Slide 8: Investment delivers record cash proceeds
Investment delivers record cash proceeds Burford’s largest resolution delivers 144% ROIC • Portfolio investment made in 2012 • $61 million in gross proceeds • $25 million invested • $36 million profit after investment • $26 million of income recognised in 1H 2015 • The investment’s fair value prev
Slide 9: Pace of commitments continues to rise
Pace of commitments continues to rise The reach of litigation finance continues to expand • Burford’s first half of 2015 was characterised by diversity – by size of client, by geography and by transaction type • Cumulative investments of $595 million committed since inception, creating a widely di
Slide 10: New Initiatives: a strong start
New Initiatives: a strong start • Two lines of business in Burford’s new “new initiatives” segment • Judgment enforcement • Law firm lending • Virtually break-even already • $2.3 million of income versus $2.5 million of expenses • Assets created: $8.5 million • Enormous volume of potential opportuni
Slide 11: Insurance: a successful investment
Insurance: a successful investment Burford acquired the insurance business in February 2012 for an effective cash price of $18.75 million • Since the acquisition, the insurance business has produced income of $68 million and operating profit of $49 million 11
Slide 12: The leading team in the industry
The leading team in the industry 50 people in offices on two continents—litigators, investment bankers, and veterans of the world’s top law firms, financial institutions, and corporations. Christopher P. Bogart Hugh Steven Wilson Jonathan T. Molot Aviva O. Will Sir Peter Middleton GCB Chief Executiv
Slide 13: Notice and Disclaimer
NOTICE AND DISCLAIMER: This presentation (“Presentation”) does not constitute or form part of, and should not be construed as, an issue for sale or subscription of, or solicitation of any offer or invitation to subscribe for, underwrite or otherwise acquire or dispose of any securities of Burford Ca