Burford Capital Limited Announces Full Year Results 2021

Rhea-AI Summary

Burford Capital reported its financial results for the year ending December 31, 2021, marking the first loss in its history amid significant new business. The firm generated over $1 billion in new commitments and deployed record capital from its balance sheet, despite slower case progression. As of year-end, Burford maintained solid liquidity and strong capital access, including the announcement of a $360 million private fund. Executives express optimism regarding the portfolio's potential, indicating that delays are timing-related and do not affect realizable values.

Positive

• Generated over $1 billion in new legal finance commitments in 2021.
• Achieved record capital deployment from the balance sheet.
• Maintained substantial liquidity and access to capital.
• Announced a new $360 million private fund.

Negative

• Reported the first loss in company history.

BURFORD CAPITAL REPORTS FULL YEAR 2021 RESULTS; RECORD LEVELS OF BALANCE SHEET DEPLOYMENTS

GUERNSEY / ACCESSWIRE / March 29, 2022 / Burford Capital Limited, the leading global finance and asset management firm focused on law, today announces its financial results for the year ended December 31, 2021.¹ The Burford Capital 2021 Annual Report, including financial statements (the "2021 Annual Report"), is available at the following link: http://www.rns-pdf.londonstockexchange.com/rns/4070G_1-2022-3-29.pdf or at Burford's website www.burfordcapital.com/shareholders. In addition, a new financial data supplement, as well as Burford's inaugural Sustainability Report for 2021, are available on our website at the same URL.

Hugh Steven Wilson, Chairman of Burford Capital, commented:

"Burford turned in an excellent 2021. This may seem odd to say as we report the first loss in our history, but that is a matter of timing. We wrote significant new core legal finance business in 2021. Even in an era of slower case progress, we generated significantly more cash than needed to cover all of our expenses. Burford ended the year with substantial liquidity and strong access to capital, and we recently announced our latest $360 million private fund."

Christopher Bogart, Chief Executive Officer of Burford Capital, commented:

"We are delighted with our strong new business performance in 2021. To write more than $1 billion of new commitments during a pandemic is a significant achievement. We deployed more capital than ever before from our balance sheet into assets with the potential to generate our highest returns and profits, auguring favorably for future capital provision income. Though it was a slower year for realized gains, contributing to our 2021 loss, there were few adverse developments to cause either realized or unrealized losses and the portfolio remains well positioned. The slow pace we are experiencing is a timing issue, not one affecting our view of the ultimate realizable value of the portfolio and its potential to create significant shareholder value, and no client has discontinued a single matter due to these delays. We are optimistic about the portfolio's future potential."

¹ All figures in this announcement are audited and presented on a consolidated basis in accordance with the generally accepted accounting principles in the United States ("US GAAP"), unless otherwise stated. Definitions, reconciliations and information additional to those set forth in this announcement are available on the Burford Capital website and in the 2021 Annual Report.

Click on, or paste the following link into your web browser, to view the full announcement text:
http://www.rns-pdf.londonstockexchange.com/rns/4185G_1-2022-3-29.pdf

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

SOURCE: Burford Capital Limited

View source version on accesswire.com:
https://www.accesswire.com/695057/Burford-Capital-Limited-Announces-Full-Year-Results-2021

FAQ

What were Burford Capital's 2021 financial results?

Burford Capital reported its first loss in history but achieved over $1 billion in new commitments and record capital deployment.

How much capital did Burford deploy in 2021?

Burford Capital deployed record levels of capital from its balance sheet, marking a significant achievement.

What new fund did Burford Capital announce in 2022?

Burford Capital announced a new private fund totaling $360 million.

What is the outlook for Burford Capital's portfolio?

Executives remain optimistic about the portfolio's potential, asserting that delays are merely timing issues.

How did Burford Capital perform amid the pandemic?

Despite the pandemic, Burford Capital wrote more than $1 billion in new commitments in 2021.