Burford Capital Limited · LSE:BUR
Burford Capital — H1 2016 Earnings Presentation
13 slides from Burford Capital's earnings presentation, Jul 27, 2016
Slide 1: Investor Presentation: Burford Capital 1H 2016 Results
Investor Presentation Burford Capital Limited 1H 2016 Results July 2016
Slide 2: Well-heeled investors are seeing the appeal in returns
“Well-heeled investors are seeing the appeal in returns that are largely untethered to the wider stock market.” – Wall Street Journal, 15 May 2016
Slide 3: 1H 2016 Highlights
1H 2016 Highlights $ in millions $ in millions $ in millions Commitments 2.67¢ $200m £100m INTERIM NEW SUCCESSFUL DIVIDEND COMMITMENTS 2 ND BOND 15﹪increase 15﹪ 147﹪increase @ 6⅛﹪ 146﹪ 3
Slide 4: Brexit: Not bad for Burford
Brexit: Not bad for Burford • Macro: demand for legal services tends to flourish during periods of Impact of GBP/USD falling uncertainty from 1.50 to 1.30 – Likely to be more litigation and no catalyst for any reduction in volume in annual bond $2.4m savings interest expense • Micro: Burford is gene
Slide 5: Another period of strong results
Another period of strong results 23 different investments contributed to the first half income of 2016 Litigation investment income ($ in millions) $86.9 $64.4 $47.8 $38.8 $32.5 $30.7 $18.7 $10.1 $5.4 2012 2013 2014 2015 1H2016 First six months of litigation investment income Annual litigation inves
Slide 6: Growth of litigation finance
Growth of litigation finance Lawyers cite a significant increase in direct experience with litigation finance • Three times as many private practice lawyers say their firms have used litigation finance directly (28%, vs. 11% in 2014 and 7% in 2013) • Over half (55%) have talked to their clients abou
Slide 7: 2016 Judgment Enforcement Survey
2016 Judgment Enforcement Survey Key findings 1. Enforcing judgments is not a foregone conclusion 2. Most clients have experience with unenforced judgments 58 % 3. Unenforced judgments are a significant unrealised corporate asset 4. Enforcement options are available, including financing 5. Understan
Slide 8: Litigation portfolio: Scale and diversification
Litigation portfolio: Scale and diversification $193 million of new commitments made in first six months of 2016 More than 90% of these commitments were in portfolio and complex structures $236m $718m $482m Current Undrawn Litigation investments commitments investment portfolio 8
Slide 9: Cash generation continues
Cash generation continues Harvesting capital to reinvest in new investments • $99 million in cash generated in period, $84 million of which was from the litigation finance business • Examples of cash generation include: – Arizona real estate investment concluded producing total cash receipts of $38.
Slide 10: Successfully issued 2nd listed bond
Successfully issued 2nd listed bond Capitalises the business for future growth • Over-subscribed offering that closed in April • Raised £100 million 8 ½ year debt, 6.125% coupon • Converted to USD shortly after issuance at an exchange rate of GPB/USD 1.4400 – We converted our 2014 £90 million bond o
Slide 11: Summary income statement
Summary income statement US$ ‘000 30 June 2016 % change 30 June 2015 Litigation investment income 64,439 30,695 Insurance income 5,113 6,469 New Initiatives income 6,141 2,273 Other income 522 1,168 Total income 76,215 +88% 40,605 Operating expenses – litigation investment (8,636) (6,444) Operating
Slide 12: Segmental balance sheet – 1H 2016 and 1H 2015
Segmental balance sheet – 1H 2016 and 1H 2015 Other 30 June 2016 Litigation Litigation New corporate US$ ‘000 Investment Insurance Initiatives activity Total Non-current assets 494,262 347 18,418 1,653 514,680 Current assets 48,709 11,913 4,261 177,215 242,098 Total assets 542,971 12,260 22,679 178,
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