Burford Capital Reports Second Quarter 2024 Results
Burford Capital reported its unaudited financial results for Q2 and H1 2024.
Key Highlights:
- Total revenues rose by 217% YoY to $137 million in Q2 2024.
- Capital provision income increased by 237% YoY to $119 million in Q2.
- Net realized gains in H1 grew by 36% to $128 million.
- Total operating expenses in Q2 decreased by 14% to $37 million.
- Net income for Q2 was $53.7 million, a significant improvement from a loss of $21.5 million in Q2 2023.
- Book value per share remained stable at $10.50.
- Decline in YTD revenue by 52% due to prior year's gains from a case win.
The company highlighted improved liquidity, with cash and cash equivalents increasing by 78% to $350 million. An interim dividend of 6.25¢ per share was declared, payable on December 5, 2024.
Burford Capital ha riportato i suoi risultati finanziari non revisionati per il secondo trimestre e il primo semestre del 2024.
Punti Salienti:
- I ricavi totali sono aumentati del 217% su base annua, raggiungendo i 137 milioni di dollari nel secondo trimestre del 2024.
- Le entrate da provvista di capitale sono aumentate del 237% su base annua, toccando i 119 milioni di dollari nel secondo trimestre.
- Le plusvalenze nette nel primo semestre sono cresciute del 36%, arrivando a 128 milioni di dollari.
- Le spese operative totali nel secondo trimestre sono diminuite del 14%, fermandosi a 37 milioni di dollari.
- Il reddito netto del secondo trimestre è stato di 53.7 milioni di dollari, un notevole miglioramento rispetto a una perdita di 21.5 milioni di dollari nel secondo trimestre del 2023.
- Il valore contabile per azione è rimasto stabile a 10.50 dollari.
- Declino del fatturato dall'inizio dell'anno del 52% a causa dei guadagni dell'anno precedente derivanti da una vittoria legale.
L'azienda ha evidenziato un miglioramento della liquidità, con contanti e equivalenti che sono aumentati del 78% a 350 milioni di dollari. È stato dichiarato un dividendo intermedio di 6,25 centesimi per azione, pagabile il 5 dicembre 2024.
Burford Capital informó sus resultados financieros no auditados para el segundo trimestre y la primera mitad de 2024.
Puntos Clave:
- Los ingresos totales aumentaron un 217% interanual, alcanzando 137 millones de dólares en el segundo trimestre de 2024.
- Los ingresos por provisión de capital crecieron un 237% interanual, totalizando 119 millones de dólares en el segundo trimestre.
- Las ganancias netas realizadas en la primera mitad crecieron un 36%, alcanzando 128 millones de dólares.
- Los gastos operativos totales en el segundo trimestre disminuyeron un 14%, sumando 37 millones de dólares.
- El ingreso neto del segundo trimestre fue de 53,7 millones de dólares, una mejora significativa en comparación con una pérdida de 21,5 millones de dólares en el segundo trimestre de 2023.
- El valor contable por acción se mantuvo estable en 10,50 dólares.
- Declive del ingreso acumulado en el año del 52% debido a las ganancias del año anterior provenientes de una victoria judicial.
La empresa destacó una mejor liquidez, con efectivo y equivalentes aumentando un 78% a 350 millones de dólares. Se declaró un dividendo interino de 6,25 centavos por acción, pagadero el 5 de diciembre de 2024.
버포드 캐피탈은 2024년 2분기 및 상반기 비감사 재무 결과를 보고했습니다.
주요 하이라이트:
- 총 수익은 2024년 2분기 동안 전년 대비 217% 증가하여 1억 3,700만 달러에 도달했습니다.
- 자본 제공 수익은 2분기 동안 전년 대비 237% 증가하여 1억 1,900만 달러에 이르렀습니다.
- 상반기 순실현 이익은 36% 증가하여 1억 2,800만 달러에 달했습니다.
- 2분기 총 운영비용은 14% 감소하여 3,700만 달러가 되었습니다.
- 2분기 순이익은 5,370만 달러로, 2023년 2분기 2,150만 달러의 손실에서 크게 개선되었습니다.
- 주당 장부가치는 10.50달러로 안정적으로 유지되었습니다.
- 지난해 소송 승소로 인한 이익으로 인하여 연초 대비 수익이 52% 감소했습니다.
회사는 현금 및 현금성 자산이 78% 증가하여 3억 5천만 달러에 이르는 등 유동성을 개선했다고 강조했습니다. 중간배당금으로 주당 6.25센트를 선언하였으며, 2024년 12월 5일 지급될 예정입니다.
Burford Capital a publié ses résultats financiers non audités pour le deuxième trimestre et le premier semestre 2024.
Points clés :
- Les revenus totaux ont augmenté de 217 % d'une année sur l'autre pour atteindre 137 millions de dollars au deuxième trimestre 2024.
- Les revenus issus des provisions de capital ont augmenté de 237 % d'une année sur l'autre, atteignant 119 millions de dollars au deuxième trimestre.
- Les gains nets réalisés au premier semestre ont augmenté de 36 % pour atteindre 128 millions de dollars.
- Les dépenses d'exploitation totales au deuxième trimestre ont diminué de 14 % pour s'établir à 37 millions de dollars.
- Le revenu net pour le deuxième trimestre était de 53,7 millions de dollars, une amélioration significative par rapport à une perte de 21,5 millions de dollars au deuxième trimestre 2023.
- La valeur comptable par action est restée stable à 10,50 dollars.
- La collecte des revenus depuis le début de l'année a diminué de 52 % en raison des gains réalisés l'année précédente suite à une victoire judiciaire.
L'entreprise a mis en avant une amélioration de la liquidité, avec une augmentation de 78 % des liquidités et équivalents à 350 millions de dollars. Un dividende intermédiaire de 6,25 cents par action a été déclaré, payable le 5 décembre 2024.
Burford Capital hat seine ungeprüften Finanzergebnisse für das zweite Quartal und das erste Halbjahr 2024 veröffentlicht.
Wichtige Highlights:
- Die Gesamterlöse stiegen im zweiten Quartal 2024 im Jahresvergleich um 217% auf 137 Millionen US-Dollar.
- Die Einkünfte aus Kapitalbereitstellung nahmen im Jahresvergleich um 237% auf 119 Millionen US-Dollar im zweiten Quartal zu.
- Die realisierten Nettogewinne im ersten Halbjahr wuchsen um 36% auf 128 Millionen US-Dollar.
- Die Gesamten Betriebsausgaben im zweiten Quartal verringerten sich um 14% auf 37 Millionen US-Dollar.
- Das Nettoergebnis für das zweite Quartal betrug 53,7 Millionen US-Dollar, eine deutliche Verbesserung im Vergleich zu einem Verlust von 21,5 Millionen US-Dollar im zweiten Quartal 2023.
- Der Buchwert pro Aktie blieb stabil bei 10,50 US-Dollar.
- Rückgang der Einnahmen seit Jahresbeginn um 52% aufgrund der Erträge aus dem Vorjahr aus einem Gerichtsurteil.
Das Unternehmen hob die verbesserte Liquidität hervor, da die Zahlungsmittel und Zahlungsmitteläquivalente um 78% auf 350 Millionen US-Dollar gestiegen sind. Eine Zwischen.dividende von 6,25 Cent pro Aktie wurde erklärt, zahlbar am 5. Dezember 2024.
- Total revenues up 217% YoY to $137 million in Q2 2024.
- Capital provision income up 237% YoY to $119 million in Q2.
- Net realized gains increased by 36% in H1 to $128 million.
- Net income of $53.7 million in Q2, compared to a loss of $21.5 million in Q2 2023.
- Cash and cash equivalents up 78% to $350 million.
- Revenue decline of 52% YTD due to prior year's gains from a significant case win.
- Cash receipts in Q2 decreased by 28% YoY.
- Deployments in Q2 fell by 27% YoY.
Insights
Burford Capital's Q2 2024 results show strong performance with Burford-only total revenues up
Key highlights include:
- Net realized gains in H1 2024 increased by
36% to$128 million - Realizations reached
$216 million , the highest first half since 2020 - Cash receipts remained consistent at
$245 million - New commitments of
$343 million were well-diversified across case types
The company's robust liquidity position of
Burford's Q2 results underscore the strength and diversity of its legal finance portfolio. The company's ability to generate
The diversification of realizations across vintage years indicates that Burford is successfully navigating the post-pandemic legal landscape. The fact that eight different assets each generated over
The increase in undrawn commitments to
Burford's Q2 2024 results reveal important trends in the legal finance market. The consistent cash generation, with quarterly receipts near or exceeding
The company's ability to deploy
Burford's adoption of US Rule 10b5-1 executive share liquidity plans aligns with typical US public company practices, potentially enhancing its appeal to US investors. This move, along with the change in auditors to KPMG, signals Burford's commitment to fully integrating into the US market, which could expand its investor base and potentially impact stock liquidity and valuation.
In addition, Burford has made available an accompanying three and six months ended June 30, 2024 results presentation and capital provision-direct and capital provision-indirect asset data tables on its website at http://investors.burfordcapital.com.
Christopher Bogart, Chief Executive Officer of Burford Capital, commented: |
"Burford had a strong second quarter, with Burford-only total revenues up |
Consolidated financial results
Summary statements of operations | ||||||||
Six months ended June 30, | Three months ended June 30, | |||||||
Consolidated (US GAAP) ($ in thousands, except per share data) | 2024 | 2023 | % change | 2024 | 2023 | % change | ||
Capital provision income | 198,506 | 511,600 | -61 % | 157,745 | 35,667 | 342 % | ||
Asset management income | 3,507 | 3,891 | -10 % | 1,644 | 1,894 | -13 % | ||
Total revenues | 203,948 | 425,456 | -52 % | 159,653 | 44,551 | 258 % | ||
Total operating expenses | 68,289 | 97,931 | -30 % | 38,151 | 43,632 | -13 % | ||
Net income/(loss) attributable to Burford Capital Limited shareholders | 23,809 | 237,885 | -90 % | 53,746 | (21,540) | NM | ||
Per diluted ordinary share | 0.11 | 1.07 | -90 % | 0.24 | (0.10) | NM | ||
Note: "NM" denotes not meaningful. Changes from negative to positive amounts and positive to negative amounts, increases or decreases from zero and changes greater than | ||||||||
Summary statements of financial position | ||||||||
Consolidated (US GAAP) ($ in thousands, except per share data) | June 30, 2024 | December 31, 2023 | % change | |||||
Capital provision assets | 5,238,633 | 5,045,388 | 4 % | |||||
Total Burford Capital Limited equity | 2,303,187 | 2,290,858 | 1 % | |||||
Book value per ordinary share | 10.50 | 10.46 | 0.4 % | |||||
Non-controlling interests | 929,115 | 916,922 | 1 % | |||||
Total shareholders' equity | 3,232,302 | 3,207,780 | 1 % | |||||
Total liabilities and shareholders' equity | 6,120,686 | 5,837,394 | 5 % | |||||
In this announcement, references to "2Q24" and "YTD24" are to Burford's financial results for the three and six months ended June 30, 2024, respectively, and references to "2Q23" and "YTD23" are to Burford's financial results for the three and six months ended June 30, 2023, respectively. All figures in this announcement are presented on an unaudited consolidated basis in accordance with the generally accepted accounting principles in Definitions, reconciliations and information additional to those set forth in this announcement are available on Burford's website at http://investors.burfordcapital.com. | ||||
Burford-only operational and financial review (non-GAAP)
Selected metrics1 | |||||||||
Six months ended June 30, | Three months ended June 30, | ||||||||
Burford-only (non-GAAP) ($ in thousands) | 2024 | 2023 | % change | 2024 | 2023 | % change | |||
Net realized gains/(losses) | 127,907 | 94,394 | 36 % | 99,153 | 58,781 | 69 % | |||
Realizations | 215,738 | 194,943 | 11 % | 154,664 | 133,197 | 16 % | |||
Cash receipts2 | 245,057 | 246,938 | -1 % | 107,363 | 149,781 | -28 % | |||
Deployments | 190,826 | 248,446 | -23 % | 131,745 | 181,453 | -27 % | |||
New commitments | 342,590 | 431,034 | -21 % | 260,131 | 330,270 | -21 % | |||
1 Represents Burford-only capital provision-direct, unless noted otherwise. | |||||||||
2 Represents Burford-only proceeds from capital provision-direct, capital provision-indirect and asset management and other services. | |||||||||
Group-wide (non-GAAP) ($ in thousands) | June 30, 2024 | December 31, 2023 | % change | ||||||
Total portfolio | 7,383,303 | 7,170,308 | 3 % | ||||||
- Net realized gains in YTD24 up
36% to$128 million $94 million 146% on realizations for fully and partially concluded assets in YTD24- Net realized gains in YTD24 comprised
$151 million $120 million $23 million $25 million
- Net realized gains in YTD24 comprised
- Realizations in YTD24 of
$216 million $195 million - Highest first half since 2020 with realizations diversified across vintage years as Covid-19 pandemic backlog continues to clear in tandem with newer case resolutions
- During YTD24, eight different assets generated more than
$10 million $25 million
- Cash receipts in YTD24 of
$245 million $247 million - Cash generation has been consistent with quarterly receipts near or exceeding
$100 million
- Cash generation has been consistent with quarterly receipts near or exceeding
- Deployments in YTD24 of
$191 million $248 million - Deployments in 2Q24 of
$132 million 25% and were 2.2x the level of deployments in 1Q24 - Definitive undrawn commitments to Burford-only capital provision assets—representing non-discretionary future deployments—were up
16% in YTD24 to$675 million $580 million
- Deployments in 2Q24 of
- Burford-only capital provision-direct new commitments in YTD24 of
$343 million $431 million - New commitments in 2Q24 of
$260 million $330 million 43% - Absence in 2Q24 of Fortune 50 company portfolio new commitment of
$190 million
- New commitments in 2Q24 of
Selected financial metrics | ||||||||
Six months ended June 30, | Three months ended June 30, | |||||||
Burford-only (non-GAAP) ($ in thousands, except per share data) | 2024 | 2023 | % change | 2024 | 2023 | % change | ||
Total revenues | 168,655 | 381,914 | -56 % | 137,277 | 43,237 | 217 % | ||
Total operating expenses | 66,966 | 97,576 | -31 % | 37,302 | 43,567 | -14 % | ||
Operating income/(loss) | 101,689 | 284,338 | -64 % | 99,975 | (330) | NM | ||
Net income/(loss) | 23,809 | 237,885 | -90 % | 53,746 | (21,540) | NM | ||
Burford-only (non-GAAP) ($ in thousands, except per share data) | June 30, 2024 | December 31, 2023 | $ change | % change | ||||
Tangible book value attributable to Burford Capital Limited | 2,169,230 | 2,156,893 | 12,337 | 1 % | ||||
Tangible book value attributable to Burford Capital Limited per ordinary share | 9.89 | 9.85 | 2.49 | 0.4 % | ||||
- Total revenues in 2Q24 of
$137 million $43 million $119 million $35 million - Total revenues in YTD24 were
$169 million $382 million
- Total revenues in YTD24 were
- Operating income in 2Q23 of
$100 million $0.3 million $102 million $284 million - Total reported operating expenses down sharply in YTD24, with 2Q24 down
14% to$37 million $44 million 31% to$67 million $98 million - Year-over-year variation of reported operating expenses does not correlate to significant changes in cash operating expense levels, which remain largely consistent
- Total reported operating expenses down sharply in YTD24, with 2Q24 down
Selected portfolio metrics | ||||
Burford-only (non-GAAP) ($ in thousands) | June 30, 2024 | December 31, 2023 | $ change | % change |
Deployed cost | 1,669,894 | 1,573,531 | 96,363 | 6 % |
Plus: Fair value adjustments | 1,824,715 | 1,814,070 | 10,645 | 1 % |
Fair value | 3,494,609 | 3,387,601 | 107,008 | 3 % |
Undrawn commitments | 1,521,074 | 1,396,061 | 125,013 | 9 % |
Total capital provision-direct portfolio | 5,015,683 | 4,783,662 | 232,021 | 5 % |
Total capital provision portfolio1 | 5,058,082 | 4,840,117 | 217,965 | 5 % |
1 Represents capital provision-direct and capital provision-indirect. | ||||
- At June 30, 2024, cumulative ROIC since inception from Burford-only capital provision-direct assets of
86% (December 31, 2023:82% ) and IRR of27% (December 31, 2023:27% )
Liquidity and capital | |||||
Burford-only (non-GAAP) ($ in thousands) | June 30, 2024 | December 31, 2023 | $ change | % change | |
Liquidity | |||||
Cash and cash equivalents | 349,700 | 195,915 | 153,785 | 78 % | |
Marketable securities | 92,924 | 107,561 | (14,637) | -14 % | |
Total liquidity | 442,624 | 303,476 | 139,148 | 46 % | |
Due from settlement of capital provision assets | 199,997 | 185,267 | 14,730 | 8 % | |
- Burford-only cash and cash equivalents and marketable securities of
$443 million $303 million - Robust liquidity position at June 30, 2024 augmented by
$245 million $275 million
- Robust liquidity position at June 30, 2024 augmented by
- Burford-only due from settlement of capital provision assets of
$200 million $185 million 43% of December 31, 2023 balance collected in YTD24 - Total debt outstanding of
$1.8 billion $1.6 billion - Leverage remains well below covenant ceiling levels
- Declared interim dividend of 6.25¢ per ordinary share payable on December 5, 2024 to shareholders of record on November 1, 2024
Change in independent auditors
As previously announced in a report on Form 6-K furnished to the US Securities and Exchange Commission on July 9, 2024, Ernst & Young LLP ("E&Y") was dismissed as Burford's independent registered public accounting firm effective immediately following the issuance of Burford's consolidated financial statements for the three and six months ended June 30, 2024. KPMG LLP ("KPMG") will replace E&Y as Burford's independent registered public accounting firm and will review Burford's consolidated financial statements for the three and nine months ending September 30, 2024 and will audit Burford's consolidated financial statements for the fiscal year ending December 31, 2024. KPMG's appointment is subject to the ratification of Burford's shareholders at an extraordinary general meeting to be held on August 20, 2024.
In accordance with Guernsey law, E&Y has deposited with Burford a statement confirming there are no matters to be brought to the attention of Burford's members or creditors.
Adoption of US Rule 10b5-1 executive share liquidity plans
A feature of the US public markets is a well-established and widely used approach for corporate executives to obtain some liquidity from their shareholdings as part of their personal financial planning. As part of its acquisition of full US domestic issuer status, Burford is joining typical US public company practice (including, we believe, the clear majority of S&P 500 companies) in permitting the use by its executives of plans that pre-set such transactions in the future, known as "Rule 10b5-1 trading plans" after the SEC rule that provides for such plans. To be clear, the adoption and use of Rule 10b5-1 plans does not alter a company's commitment to its executives being meaningfully exposed to its equity nor does it affect Burford's minimum share ownership policy for its executives; rather, Rule 10b5-1 plans provide a vehicle for enabling some liquidity in an orderly manner that removes executives from short-term trading decisions and the potential for market signaling.
The Rule 10b5-1 plans will be administered by Merrill Lynch and operate as follows, consistent with the requirements of Rule 10b5-1 and the usual design of such plans. During any open period (which typically occurs following the release of each quarter's earnings), an executive may choose to adopt the Rule 10b5-1 plan by authorizing the sale of a certain amount of the executive's holdings in Burford's ordinary shares over the forthcoming year. Those sales are then managed by Merrill Lynch according to pre-set parameters set forth in the Rule 10b5-1 plan; the executive has no involvement in the trading process. No sales occur during what is known as a "cooling-off period," which is typically 90-120 days under the relevant rules after adopting the Rule 10b5-1 plan.
Over the course of the next year, Burford expects that four of its executives (its CEO, CIO and co-COOs) will adopt and make use of the Rule 10b5-1 plans in connection with nominal levels of their Burford's ordinary shares. Burford expects that those executives will also continue to amass additional ordinary shares of Burford as an integral part of their compensation plans.
Investor and analyst conference call
Burford will hold a conference call for investors and analysts at 10.00am EDT / 3.00pm BST on Thursday, August 8, 2024. The dial-in numbers for the conference call are +1 (646) 307-1963 (
A live webcast of the call will also be available at https://events.q4inc.com/attendee/572051862, and pre-registration at that link is encouraged.
An accompanying 2Q24 and 6M24 results presentation for investors and analysts will also be made available on Burford's website prior to the conference call at http://investors.burfordcapital.com.
Following the conference call, a replay facility for this event will be accessible through the webcast at https://events.q4inc.com/attendee/572051862.
For further information, please contact:
Burford Capital Limited | |
For investor and analyst inquiries: | |
+1 212 516 5824 | |
EMEA & | +44 (0)20 3530 2023 |
For press inquiries: | |
David Helfenbein, Vice President, Public Relations - email | +1 (212) 516 5824 |
Deutsche Numis - NOMAD and Joint Broker | +44 (0)20 7260 1000 |
Giles Rolls | |
Charlie Farquhar | |
Jefferies International Limited - Joint Broker | +44 (0)20 7029 8000 |
Graham Davidson | |
James Umbers | |
Berenberg – Joint Broker | +44 (0)20 3207 7800 |
Toby Flaux | |
James Thompson | |
Yasmina Benchekroun |
About Burford Capital
Burford Capital is the leading global finance and asset management firm focused on law. Its businesses include litigation finance and risk management, asset recovery and a wide range of legal finance and advisory activities. Burford is publicly traded on the New York Stock Exchange (NYSE: BUR) and the London Stock Exchange (LSE: BUR), and it works with companies and law firms around the world from its offices in
For more information, please visit www.burfordcapital.com.
Summary financial statements and reconciliations
The tables below set forth summaries of the condensed consolidated and Burford-only statements of operations for the three and six months ended June 30, 2024 and 2023, the condensed consolidated and Burford-only statements of financial position at June 30, 2024 and December 31, 2023 and corresponding reconciliations from consolidated to Burford-only financial results. Furthermore, the tables below set forth certain additional reconciliations for financial information contained in this announcement.
Summary condensed consolidated statements of operations
Three months ended June 30, | Six months ended June 30, | |||||||
($ in thousands) | 2024 | 2023 | 2024 | 2023 | ||||
Revenues | ||||||||
Capital provision income/(loss) | 157,745 | 35,667 | 198,506 | 511,600 | ||||
(Less)/Plus: Third-party interests in capital provision assets | (6,264) | 4,813 | (11,488) | (95,532) | ||||
Asset management income/(loss) | 1,644 | 1,894 | 3,507 | 3,891 | ||||
Services and other income/(loss) | 6,528 | 2,177 | 13,423 | 5,497 | ||||
Total revenues | 159,653 | 44,551 | 203,948 | 425,456 | ||||
Total operating expenses | 38,151 | 43,632 | 68,289 | 97,931 | ||||
Operating income/(loss) | 121,502 | 919 | 135,659 | 327,525 | ||||
Finance costs and loss on debt extinguishment | 34,466 | 21,124 | 67,033 | 41,677 | ||||
Foreign currency transactions (gains)/losses | 67 | (8,898) | 559 | (11,338) | ||||
Income/(loss) before income taxes | 86,969 | 12,226 | 68,067 | 297,186 | ||||
Benefit from/(provision for) income taxes | (11,697) | (8,969) | (10,293) | (16,081) | ||||
Net income/(loss) | 75,272 | (20,276) | 57,774 | 281,105 | ||||
Net income/(loss) attributable to Burford Capital Limited shareholders | 53,746 | (21,540) | 23,809 | 237,885 | ||||
Net income/(loss) attributable to Burford Capital Limited shareholders per ordinary share | ||||||||
Basic | ( | |||||||
Diluted | ( | |||||||
Summary Burford-only statement of operations
Three months ended June 30, | Six months ended June 30, | |||||||
($ in thousands) | 2024 | 2023 | 2024 | 2023 | ||||
Revenues | ||||||||
Capital provision income | 119,360 | 35,392 | 137,263 | 351,407 | ||||
Asset management income | 11,487 | 5,684 | 18,160 | 25,041 | ||||
Services and other income | 6,430 | 2,161 | 13,232 | 5,466 | ||||
Total revenues | 137,277 | 43,237 | 168,655 | 381,914 | ||||
Operating expenses | 37,302 | 43,567 | 66,966 | 97,576 | ||||
Operating income | 99,975 | (330) | 101,689 | 284,338 | ||||
Net income | 53,746 | (21,540) | 23,809 | 237,885 | ||||
Net income per share: | ||||||||
Basic | ( | |||||||
Diluted | ( | |||||||
Reconciliation of summary condensed consolidated statement of operations to summary Burford-only statement of operations
Three months ended June 30, 2024 | |||||||
(GAAP) | (Non-GAAP) | ||||||
Elimination of third-party interests | |||||||
($ in thousands) | Consolidated | BOF-C | Advantage | Other | Burford- | ||
Capital provision income | 157,745 | (23,332) | (7,406) | (5,774) | (1,873) | 119,360 | |
(Less): Third-party interests in capital provision assets | (6,264) | - | 7,385 | - | (1,121) | - | |
Asset management income | 1,644 | 9,843 | - | - | - | 11,487 | |
Services and other income | 6,528 | (97) | - | - | (1) | 6,430 | |
Total revenues | 159,653 | (13,586) | (21) | (5,774) | (2,995) | 137,277 | |
Operating expenses | 38,151 | 46 | (21) | (105) | (769) | 37,302 | |
Operating income | 121,502 | (13,632) | - | (5,669) | (2,226) | 99,975 | |
Net income/(loss) | 75,272 | (13,632) | - | (5,669) | (2,225) | 53,746 | |
Three months ended June 30, 2023 | |||||||
(GAAP) | (Non-GAAP) | ||||||
Elimination of third-party interests | |||||||
($ in thousands) | Consolidated | Strategic | BOF-C | Advantage | Other | Burford- | |
Capital provision income | 35,667 | (100) | 72 | 4,728 | (4,983) | 8 | 35,392 |
(Less): Third-party interests in capital provision assets | 4,813 | - | - | (4,753) | - | (60) | - |
Asset management income | 1,894 | 46 | 3,744 | - | - | - | 5,684 |
Services and other income | 2,177 | - | (1) | - | - | (15) | 2,161 |
Total revenues | 44,551 | (54) | 3,815 | (25) | (4,983) | (67) | 43,237 |
Operating expenses | 43,632 | (141) | 187 | (25) | (80) | (6) | 43,567 |
Operating income | 919 | 87 | 3,628 | - | (4,903) | (61) | (330) |
Net income/(loss) | (20,276) | 87 | 3,628 | - | (4,903) | (76) | (21,540) |
Six months ended June 30, 2024 | |||||||
(GAAP) | (Non-GAAP) | ||||||
Elimination of third-party interests | |||||||
($ in thousands) | Consolidated | BOF-C | Advantage | Other | Burford- | ||
Capital provision income | 198,506 | (33,018) | (12,826) | (13,045) | (2,354) | 137,263 | |
(Less): Third-party interests in capital provision assets | (11,488) | - | 12,754 | - | (1,266) | - | |
Asset management income | 3,507 | 14,653 | - | - | - | 18,160 | |
Services and other income | 13,423 | (185) | - | - | (6) | 13,232 | |
Total revenues | 203,948 | (18,550) | (72) | (13,045) | (3,626) | 168,655 | |
Operating expenses | 68,289 | 90 | (72) | (274) | (1,067) | 66,966 | |
Operating income | 135,659 | (18,640) | - | (12,771) | (2,559) | 101,689 | |
Net income/(loss) | 57,774 | (18,640) | - | (12,771) | (2,554) | 23,809 | |
Six months ended June 30, 2023 | |||||||
(GAAP) | (Non-GAAP) | ||||||
Elimination of third-party interests | |||||||
($ in thousands) | Consolidated | Strategic | BOF-C | Advantage | Other | Burford- | |
Capital provision income | 511,600 | (207) | (48,236) | (95,041) | (12,005) | (4,704) | 351,407 |
(Less): Third-party interests in capital provision assets | (95,532) | - | - | 95,011 | - | 521 | - |
Asset management income | 3,891 | 92 | 21,058 | - | - | - | 25,041 |
Services and other income | 5,497 | - | (2) | - | - | (29) | 5,466 |
Total revenues | 425,456 | (115) | (27,180) | (30) | (12,005) | (4,212) | 381,914 |
Operating expenses | 97,931 | (296) | 217 | (30) | (203) | (43) | 97,576 |
Operating income | 327,525 | 181 | (27,397) | - | (11,802) | (4,169) | 284,338 |
Net income/(loss) | 281,105 | 181 | (27,397) | - | (11,802) | (4,202) | 237,885 |
Summary condensed consolidated statement of financial position
($ in thousands) | June 30, 2024 | December 31, | ||
Total assets | 6,120,686 | 5,837,394 | ||
Total liabilities | 2,888,384 | 2,629,614 | ||
Total Burford Capital Limited equity | 2,303,187 | 2,290,858 | ||
Non-controlling interests | 929,115 | 916,922 | ||
Total shareholders' equity | 3,232,302 | 3,207,780 | ||
Basic ordinary shares outstanding | 219,412,747 | 218,962,441 | ||
Total shareholders' equity attributable to Burford Capital Limited per basic ordinary share | 10.50 | 10.46 | ||
Total shareholders' equity per basic ordinary share | 14.73 | 14.65 |
Reconciliation of summary consolidated statement of financial position to summary Burford-only statement of financial position
June 30, 2024 | ||||||||||||
(GAAP) | (Non-GAAP) | |||||||||||
Elimination of third-party interests | ||||||||||||
($ in thousands) | Consolidated | BOF-C | Advantage | Other | Burford-only | |||||||
Total assets | 6,120,686 | (665,252) | (699,041) | (201,022) | (80,187) | 4,475,184 | ||||||
Total liabilities | 2,888,384 | - | (699,041) | (80) | (17,266) | 2,171,997 | ||||||
Total shareholders' equity | 3,232,302 | (665,252) | - | (200,942) | (62,921) | 2,303,187 | ||||||
December 31, 2023 | ||||||||||||
(GAAP) | (Non-GAAP) | |||||||||||
Elimination of third-party interests | ||||||||||||
($ in thousands) | Consolidated | BOF-C | Advantage | Other | Burford-only | |||||||
Total assets | 5,837,394 | (634,239) | (686,304) | (222,413) | (78,574) | 4,215,864 | ||||||
Total liabilities | 2,629,614 | - | (686,304) | (100) | (18,204) | 1,925,006 | ||||||
Total shareholders' equity | 3,207,780 | (634,239) | - | (222,313) | (60,370) | 2,290,858 | ||||||
Reconciliation of components of realizations from a consolidated basis to a Group-wide basis
Three months ended June 30, 2024 | |||||||
(GAAP) | (Non-GAAP) | ||||||
($ in thousands) | Consolidated | Eliminations and | Burford-only | Other funds | BOF-C | Group- | |
Capital provision-direct | 179,391 | (24,727) | 154,664 | 37,574 | 24,523 | 216,761 | |
Capital provision-indirect | 12,492 | (10,410) | 2,082 | 10,410 | - | 12,492 | |
Post-settlement | - | - | - | 24,668 | - | 24,668 | |
Total realizations | 191,883 | (35,137) | 156,746 | 72,652 | 24,523 | 253,921 | |
Three months ended June 30, 2023 | |||||||
(GAAP) | (Non-GAAP) | ||||||
($ in thousands) | Consolidated | Eliminations and | Burford-only | Other funds | BOF-C | Group- | |
Capital provision-direct | 130,520 | 2,677 | 133,197 | 22,986 | 17,328 | 173,511 | |
Capital provision-indirect | 27,064 | (22,605) | 4,459 | 22,290 | - | 26,749 | |
Post-settlement | - | - | - | 79,576 | - | 79,576 | |
Total realizations | 157,584 | (19,928) | 137,656 | 124,852 | 17,328 | 279,836 | |
Six months ended June 30, 2024 | |||||||
(GAAP) | (Non-GAAP) | ||||||
($ in thousands) | Consolidated | Eliminations and | Burford-only | Other funds | BOF-C | Group- | |
Capital provision-direct | 283,584 | (67,846) | 215,738 | 66,345 | 54,721 | 336,804 | |
Capital provision-indirect | 21,270 | (17,725) | 3,545 | 17,725 | - | 21,270 | |
Post-settlement | - | - | - | 52,502 | - | 52,502 | |
Total realizations | 304,854 | (85,571) | 219,283 | 136,572 | 54,721 | 410,576 | |
Six months ended June 30, 2023 | |||||||
(GAAP) | (Non-GAAP) | ||||||
($ in thousands) | Consolidated | Eliminations and | Burford-only | Other funds | BOF-C | Group- | |
Capital provision-direct | 246,252 | (51,309) | 194,943 | 73,376 | 52,751 | 321,070 | |
Capital provision-indirect | 39,644 | (33,089) | 6,555 | 32,774 | - | 39,329 | |
Post-settlement | - | - | - | 98,256 | - | 98,256 | |
Total realizations | 285,896 | (84,398) | 201,498 | 204,406 | 52,571 | 458,655 | |
Reconciliation of components of deployments from a consolidated basis to a Group-wide basis
Three months ended June 30, 2024 | |||||||
(GAAP) | (Non-GAAP) | ||||||
($ in thousands) | Consolidated | Eliminations and | Burford-only | Other funds | BOF-C | Group- | |
Capital provision-direct | 169,229 | (37,484) | 131,745 | 4,823 | 40,942 | 177,510 | |
Capital provision-indirect | 8,112 | (6,759) | 1,353 | 6,760 | - | 8,113 | |
Post-settlement | - | - | - | 8,821 | - | 8,821 | |
Total deployments | 177,341 | (44,243) | 133,098 | 20,404 | 40,942 | 194,444 | |
Three months ended June 30, 2023 | |||||||
(GAAP) | (Non-GAAP) | ||||||
($ in thousands) | Consolidated | Eliminations and | Burford-only | Other funds | BOF-C | Group- | |
Capital provision-direct | 246,840 | (65,387) | 181,453 | 6,070 | 58,504 | 246,027 | |
Capital provision-indirect | 78,794 | (65,662) | 13,132 | 65,662 | - | 78,794 | |
Post-settlement | - | - | - | 31,939 | - | 31,939 | |
Total deployments | 325,634 | (131,049) | 194,585 | 103,671 | 58,504 | 356,760 | |
Six months ended June 30, 2024 | |||||||
(GAAP) | (Non-GAAP) | ||||||
($ in thousands) | Consolidated | Eliminations and | Burford-only | Other funds | BOF-C | Group- | |
Capital provision-direct | 244,019 | (53,193) | 190,826 | 7,363 | 57,551 | 255,740 | |
Capital provision-indirect | 58,725 | (48,937) | 9,788 | 48,938 | - | 58,726 | |
Post-settlement | - | - | - | 29,528 | - | 29,528 | |
Total deployments | 302,744 | (102,130) | 200,614 | 85,829 | 57,551 | 343,994 | |
Six months ended June 30, 2023 | |||||||
(GAAP) | (Non-GAAP) | ||||||
($ in thousands) | Consolidated | Eliminations and | Burford-only | Other funds | BOF-C | Group- | |
Capital provision-direct | 331,525 | (83,079) | 248,446 | 12,983 | 75,956 | 337,385 | |
Capital provision-indirect | 112,794 | (93,995) | 18,799 | 93,995 | - | 112,794 | |
Post-settlement | - | - | - | 35,806 | - | 35,806 | |
Total deployments | 444,319 | (177,074) | 267,245 | 142,784 | 75,956 | 485,985 | |
Reconciliation of quarterly consolidated capital provision-direct deployments to quarterly Burford-only capital provision-direct deployments
For the three months ended | |||||||
Eliminations and adjustments | |||||||
($ in thousands) | Consolidated | Burford-only | Other funds | BOF-C | Group-wide | ||
June 30, 2024 | 169,229 | (37,484) | 131,745 | 4,823 | 40,942 | 177,510 | |
March 31, 2024 | 74,790 | (15,710) | 59,080 | 2,540 | 16,609 | 78,229 | |
December 31, 2023 | 104,678 | (26,915) | 77,763 | 8,317 | 24,577 | 110,657 | |
September 30, 2023 | 69,690 | (13,704) | 55,986 | 4,379 | 21,819 | 82,184 | |
June 30, 2023 | 246,840 | (65,387) | 181,453 | 6,070 | 58,504 | 246,027 | |
March 31, 2023 | 84,685 | (17,692) | 66,993 | 6,913 | 17,452 | 91,358 | |
December 31, 2022 | 223,920 | (42,233) | 181,687 | 9,630 | 42,517 | 233,834 | |
September 30, 2022 | 197,916 | (44,627) | 153,289 | 6,277 | 45,155 | 204,721 | |
June 30, 2022 | 92,445 | (22,273) | 70,172 | 8,926 | 21,291 | 100,389 | |
Reconciliation of consolidated deployment multiple to Burford-only deployment multiple
Eliminations and adjustments | ||||||
($ in thousands) | Consolidated | Burford- | ||||
Capital provision-direct for three months ended June 30, 2024 | 169,229 | (37,484) | 131,745 | |||
Capital provision-direct for three months ended March 31, 2024 | 74,790 | (15,710) | 59,080 | |||
Deployment multiple | 2.3 | 2.2 |
Reconciliation of consolidated proceeds from capital provision assets to Burford-only cash receipts
($ in thousands) | Three months ended | Three months ended | |
Consolidated proceeds from capital provision assets | 125,344 | 163,522 | |
Less: Elimination of third-party interests | (36,841) | (26,950) | |
Burford-only total proceeds from capital provision assets | 88,503 | 136,572 | |
Burford-only proceeds from capital provision-direct assets | 86,328 | 135,579 | |
Burford-only proceeds from capital provision-indirect assets | 2,175 | 993 | |
Burford-only total proceeds from capital provision assets | 88,503 | 136,572 | |
Consolidated asset management income | 1,644 | 1,894 | |
Plus: Eliminated income from funds | 9,843 | 3,790 | |
Burford-only asset management income | 11,487 | 5,684 | |
Less: Non-cash adjustments(1) | (495) | 5,358 | |
Burford-only proceeds from asset management income | 10,992 | 11,042 | |
Burford-only proceeds from marketable security interest and dividends | 5,093 | 682 | |
Burford-only proceeds from other income | 2,775 | 1,485 | |
Burford-only proceeds from other items | 7,868 | 2,167 | |
Cash receipts | 107,363 | 149,781 |
(1) | Adjustments for the change in asset management receivables accrued during the applicable period but not yet received at the end of such period. |
($ in thousands) | Six months ended | Six months ended | |
Consolidated proceeds from capital provision assets | 372,905 | 308,007 | |
Less: Elimination of third-party interests | (156,877) | (87,513) | |
Burford-only total proceeds from capital provision assets | 216,028 | 220,494 | |
Burford-only proceeds from capital provision-direct assets | 199,250 | 213,321 | |
Burford-only proceeds from capital provision-indirect assets | 16,778 | 7,173 | |
Burford-only total proceeds from capital provision assets | 216,028 | 220,494 | |
Consolidated asset management income | 3,507 | 3,891 | |
Plus: Eliminated income from funds | 14,653 | 21,150 | |
Burford-only asset management income | 18,160 | 25,041 | |
Less: Non-cash adjustments(1) | (2,692) | (1,728) | |
Burford-only proceeds from asset management income | 15,468 | 23,313 | |
Burford-only proceeds from marketable security interest and dividends | 10,569 | 1,563 | |
Burford-only proceeds from other income | 2,992 | 1,568 | |
Burford-only proceeds from other items | 13,561 | 3,131 | |
Cash receipts | 245,057 | 246,938 |
(1) | Adjustments for the change in asset management receivables accrued during the applicable period but not yet received at the end of such period. |
Reconciliation of quarterly consolidated cash receipts to Burford-only cash receipts
($ in thousands) | Three months ended | Three months ended | |
Consolidated proceeds from capital provision assets | 125,344 | 247,561 | |
Less: Elimination of third-party interests | (36,841) | (120,036) | |
Burford-only total proceeds from capital provision assets | 88,503 | 127,525 | |
Burford-only proceeds from capital provision-direct assets | 86,328 | 112,922 | |
Burford-only proceeds from capital provision-indirect assets | 2,175 | 14,603 | |
Burford-only total proceeds from capital provision assets | 88,503 | 127,525 | |
Consolidated asset management income | 1,644 | 1,863 | |
Plus: Eliminated income from funds | 9,843 | 4,810 | |
Burford-only asset management income | 11,487 | 6,673 | |
Less: Non-cash adjustments(1) | (495) | 2,197 | |
Burford-only proceeds from asset management income | 10,992 | 4,476 | |
Burford-only proceeds from marketable security interest and dividends | 5,093 | 5,476 | |
Burford-only proceeds from other income | 2,775 | 217 | |
Burford-only proceeds from other items | 7,868 | 5,693 | |
Cash receipts | 107,363 | 137,694 |
(1) | Adjustments for the change in asset management receivables accrued during the applicable period but not yet received at the end of such period. |
($ in thousands) | Three months ended | Three months ended | |
Consolidated proceeds from capital provision assets | 119,208 | 132,147 | |
Less: Elimination of third-party interests | (22,709) | (7,074) | |
Burford-only total proceeds from capital provision assets | 96,499 | 125,073 | |
Burford-only proceeds from capital provision-direct assets | 95,490 | 105,915 | |
Burford-only proceeds from capital provision-indirect assets | 1,009 | 19,158 | |
Burford-only total proceeds from capital provision assets | 96,499 | 125,073 | |
Consolidated asset management income | 1,875 | 1,876 | |
Plus: Eliminated income from funds | 20,655 | 14,265 | |
Burford-only asset management income | 22,530 | 16,141 | |
Less: Non-cash adjustments(1) | (19,254) | (10,409) | |
Burford-only proceeds from asset management income | 3,276 | 5,732 | |
Burford-only proceeds from marketable security interest and dividends | 2,672 | 2,062 | |
Burford-only proceeds from other income | 7,030 | (73) | |
Burford-only proceeds from other items | 9,702 | 1,989 | |
Cash receipts | 109,477 | 132,794 |
(1) | Adjustments for the change in asset management receivables accrued during the applicable period but not yet received at the end of such period. |
($ in thousands) | Three months ended | Three months ended | |
Consolidated proceeds from capital provision assets | 163,522 | 144,485 | |
Less: Elimination of third-party interests | (26,950) | (60,563) | |
Burford-only total proceeds from capital provision assets | 136,572 | 83,922 | |
Burford-only proceeds from capital provision-direct assets | 135,579 | 77,742 | |
Burford-only proceeds from capital provision-indirect assets | 993 | 6,180 | |
Burford-only total proceeds from capital provision assets | 136,572 | 83,922 | |
Consolidated asset management income | 1,894 | 1,997 | |
Plus: Eliminated income from funds | 3,790 | 17,360 | |
Burford-only asset management income | 5,684 | 19,357 | |
Less: Non-cash adjustments(1) | 5,358 | (7,086) | |
Burford-only proceeds from asset management income | 11,042 | 12,271 | |
Burford-only proceeds from marketable security interest and dividends | 682 | 881 | |
Burford-only proceeds from other income | 1,485 | 83 | |
Burford-only proceeds from other items | 2,167 | 964 | |
Cash receipts | 149,781 | 97,157 |
(1) | Adjustments for the change in asset management receivables accrued during the applicable period but not yet received at the end of such period. |
($ in thousands) | Three months ended | Three months ended | |
Consolidated proceeds from capital provision assets | 105,464 | 173,781 | |
Less: Elimination of third-party interests | (11,720) | (48,686) | |
Burford-only total proceeds from capital provision assets | 93,744 | 125,095 | |
Burford-only proceeds from capital provision-direct assets | 93,137 | 120,988 | |
Burford-only proceeds from capital provision-indirect assets | 607 | 4,107 | |
Burford-only total proceeds from capital provision assets | 93,744 | 125,095 | |
Consolidated asset management income | 2,025 | 1,583 | |
Plus: Eliminated income from funds | 12,733 | 2,976 | |
Burford-only asset management income | 14,758 | 4,559 | |
Less: Non-cash adjustments(1) | (11,794) | (2,980) | |
Burford-only proceeds from asset management income | 2,964 | 1,578 | |
Burford-only proceeds from marketable security interest and dividends | 1,740 | 878 | |
Burford-only proceeds from other income | 66 | 2,466 | |
Burford-only proceeds from other items | 1,806 | 3,344 | |
Cash receipts | 98,514 | 130,017 |
(1) | Adjustments for the change in asset management receivables accrued during the applicable period but not yet received at the end of such period. |
Reconciliation of consolidated portfolio to Group-wide portfolio
June 30, 2024 | ||||||||||||
(GAAP) | (non-GAAP) | |||||||||||
Elimination of | ||||||||||||
third-party | ||||||||||||
($ in thousands) | Consolidated | interests | Burford-only | Other funds | BOF-C | Group-wide | ||||||
Capital provision assets - direct: | ||||||||||||
Deployed cost | 2,229,053 | (559,159) | 1,669,894 | 394,049 | 464,510 | 2,528,453 | ||||||
Plus: Fair value adjustments | 2,771,019 | (946,304) | 1,824,715 | 169,291 | 221,497 | 2,215,503 | ||||||
Fair value | 5,000,072 | (1,505,463) | 3,494,609 | 563,340 | 686,007 | 4,743,956 | ||||||
Capital provision assets - indirect: | ||||||||||||
Deployed cost | 211,016 | (177,932) | 33,084 | 177,932 | - | 211,016 | ||||||
Plus: Fair value adjustments | 27,545 | (20,373) | 7,172 | 16,944 | - | 24,116 | ||||||
Fair value | 238,561 | (198,305) | 40,256 | 194,876 | - | 235,132 | ||||||
Total capital provision assets | 5,238,633 | (1,703,768) | 3,534,865 | 758,216 | 686,007 | 4,979,088 | ||||||
Post-settlement assets: | ||||||||||||
Deployed cost | - | - | - | 237,469 | - | 237,469 | ||||||
Plus: Fair value adjustments | - | - | - | 51,055 | - | 51,055 | ||||||
Fair value | - | - | - | 288,524 | - | 288,524 | ||||||
Undrawn commitments: | ||||||||||||
Capital provision-direct | 1,956,479 | (435,405) | 1,521,074 | 110,686 | 426,574 | 2,058,334 | ||||||
Capital provision-indirect | 12,859 | (10,716) | 2,143 | 10,716 | - | 12,859 | ||||||
Post-settlement | - | - | - | 44,498 | - | 44,498 | ||||||
Total undrawn commitments | 1,969,338 | (446,121) | 1,523,217 | 165,900 | 426,574 | 2,115,691 | ||||||
Total portfolio | 7,207,971 | (2,149,889) | 5,058,082 | 1,212,640 | 1,112,581 | 7,383,303 | ||||||
December 31, 2023 | ||||||||||||
(GAAP) | (non-GAAP) | |||||||||||
Elimination of | ||||||||||||
third-party | ||||||||||||
($ in thousands) | Consolidated | interests | Burford-only | Other funds | BOF-C | Group-wide | ||||||
Capital provision assets - direct: | ||||||||||||
Deployed cost | 2,116,304 | (542,773) | 1,573,531 | 416,318 | 428,110 | 2,417,959 | ||||||
Plus: Fair value adjustments | 2,743,575 | (929,505) | 1,814,070 | 180,169 | 220,363 | 2,214,602 | ||||||
Fair value | 4,859,879 | (1,472,278) | 3,387,601 | 596,487 | 648,473 | 4,632,561 | ||||||
Capital provision assets - indirect: | ||||||||||||
Deployed cost | 164,259 | (125,508) | 38,751 | 125,508 | - | 164,259 | ||||||
Plus: Fair value adjustments | 21,250 | (15,490) | 5,760 | 15,490 | - | 21,250 | ||||||
Fair value | 185,509 | (140,998) | 44,511 | 140,998 | - | 185,509 | ||||||
Total capital provision assets | 5,045,388 | (1,613,276) | 3,432,112 | 737,485 | 648,473 | 4,818,070 | ||||||
Post-settlement assets: | ||||||||||||
Deployed cost | - | - | - | 253,062 | - | 253,062 | ||||||
Plus: Fair value adjustments | - | - | - | 45,792 | - | 45,792 | ||||||
Fair value | - | - | - | 298,854 | - | 298,854 | ||||||
Undrawn commitments: | ||||||||||||
Capital provision-direct | 1,801,627 | (405,566) | 1,396,061 | 126,560 | 396,646 | 1,919,267 | ||||||
Capital provision-indirect | 71,662 | (59,718) | 11,944 | 59,718 | - | 71,662 | ||||||
Post-settlement | - | - | - | 62,455 | - | 62,455 | ||||||
Total undrawn commitments | 1,873,289 | (465,284) | 1,408,005 | 248,733 | 396,646 | 2,053,384 | ||||||
Total portfolio | 6,918,677 | (2,078,560) | 4,840,117 | 1,285,072 | 1,045,119 | 7,170,308 | ||||||
Reconciliation of consolidated to Burford-only cash and cash equivalents and marketable securities
June 30, 2024 | December 31, 2023 | ||||||
(GAAP) | (Non-GAAP) | (GAAP) | (Non-GAAP) | ||||
($ in thousands) | Consolidated | Elimination | Burford-only | Consolidated | Elimination | Burford-only | |
Cash and cash equivalents | 390,673 | (40,973) | 349,700 | 220,549 | (24,634) | 195,915 | |
Marketable securities | 92,924 | - | 92,924 | 107,561 | - | 107,561 | |
Total cash and cash equivalents and marketable securities | 483,597 | (40,973) | 442,624 | 328,110 | (24,634) | 303,476 | |
Reconciliation of consolidated to Burford-only due from settlement of capital provision assets
June 30, 2024 | December 31, 2023 | ||||||
(GAAP) | (Non-GAAP) | (GAAP) | (Non-GAAP) | ||||
($ in thousands) | Consolidated | Elimination | Burford-only | Consolidated | Elimination | Burford-only | |
Due from settlement of capital provision assets | 199,997 | - | 199,997 | 265,540 | (80,273) | 185,267 | |
Reconciliation of consolidated to Burford-only net realized gains/(losses) on capital provision-direct assets
(GAAP) | (Non-GAAP) | ||||||||||
($ in thousands) | Consolidated | Eliminations | Burford- | Burford-only Capital | Burford-only Capital | ||||||
Net realized gains/(losses) for the three months ended June 30, 2024 | 117,471 | (18,318) | 99,153 | 99,153 | - | ||||||
Net realized gains/(losses) for the three months ended June 30, 2023 | 64,323 | (5,542) | 58,781 | 58,871 | - | ||||||
(GAAP) | (Non-GAAP) | ||||||||||
($ in thousands) | Consolidated | Eliminations | Burford- | Burford-only Capital | Burford-only Capital | ||||||
Net realized gains/(losses) for the six months ended June 30, 2024 | 175,333 | (46,286) | 129,047 | 127,907 | 1,140 | ||||||
Net realized gains/(losses) for the six months ended June 30, 2023 | 133,765 | (39,371) | 94,394 | 94,394 | - | ||||||
Reconciliation of consolidated to Burford-only unrealized gains on capital provision-indirect assets
(GAAP) | (Non-GAAP) | ||||||||||
($ in thousands) | Consolidated | Eliminations and | Burford- | Burford-only | Burford-only | ||||||
Unrealized gains/(losses) for the three months ended June 30, 2024 | 39,070 | (20,207) | 18,863 | 17,729 | 1,134 | ||||||
Unrealized gains/(losses) for the three months ended June 30, 2023 | (28,821) | 5,983 | (22,838) | (23,152) | 314 | ||||||
(GAAP) | (Non-GAAP) | ||||||||||
($ in thousands) | Consolidated | Eliminations and | Burford- | Burford-only | Burford-only | ||||||
Unrealized gains/(losses) for the six months ended June 30, 2024 | 25,369 | (15,594) | 9,775 | 8,363 | 1,412 | ||||||
Unrealized gains/(losses) for the six months ended June 30, 2023 | 373,992 | (120,174) | 253,818 | 251,989 | 1,829 | ||||||
Reconciliation of consolidated undrawn commitments to Burford-only undrawn commitments
June 30, 2024 | ||||||
Elimination of third-party interests | ||||||
($ in thousands) | Consolidated | Burford- | ||||
Definitive | 887,592 | (212,942) | 674,650 | |||
Discretionary | 1,026,386 | (222,463) | 803,923 | |||
Total legal finance undrawn commitments | 1,913,978 | (435,405) | 1,478,573 | |||
Legal risk (definitive) | 42,501 | - | 42,501 | |||
Total capital provision-direct undrawn commitments | 1,956,479 | (435,405) | 1,521,074 | |||
Capital provision-indirect undrawn commitments | 12,859 | (10,716) | 2,143 | |||
Total capital provision undrawn commitments | 1,969,338 | (446,121) | 1,523,217 | |||
December 31,2023 | ||||||
Elimination of third-party interests | ||||||
($ in thousands) | Consolidated | Burford- | ||||
Definitive | 768,311 | (188,313) | 579,998 | |||
Discretionary | 977,733 | (211,196) | 766,537 | |||
Total legal finance undrawn commitments | 1,746,044 | (399,509) | 1,346,535 | |||
Legal risk (definitive) | 55,583 | (6,057) | 49,526 | |||
Total capital provision-direct undrawn commitments | 1,801,627 | (405,566) | 1,396,061 | |||
Capital provision-indirect undrawn commitments | 71,662 | (59,718) | 11,944 | |||
Total capital provision undrawn commitments | 1,873,289 | (465,284) | 1,408,005 | |||
Reconciliation of tangible book value attributable to Burford Capital Limited per ordinary share
($ in thousands, except share data) | June 30, 2024 | December 31, 2023 | ||
Total Burford Capital Limited equity | 2,303,187 | 2,290,858 | ||
Less: Goodwill | (133,957) | (133,965) | ||
Tangible book value attributable to Burford Capital Limited | 2,169,230 | 2,156,893 | ||
Basic ordinary shares outstanding | 219,412,747 | 218,962,441 | ||
Tangible book value attributable to Burford Capital Limited per ordinary share |
Definitions and use of non-GAAP financial measures and alternative performance measures
Burford reports its consolidated financial results in accordance with US GAAP. US GAAP requires us to present financial statements that consolidate some of the limited partner interests in private funds we manage as well as assets held on our balance sheet where we have a partner or minority investor. We therefore refer to various presentations of our consolidated financial results as follows:
- Consolidated refers to assets, liabilities and activities that include those third-party interests, partially owned subsidiaries and special purpose vehicles that we are required to consolidate under US GAAP. At the date of this announcement, the major entities where there is also a third-party partner in, or owner of, those entities include Burford Opportunity Fund C LP, Burford Advantage Master Fund LP, Colorado Investments Limited ("
Colorado ") and several other entities in which Burford holds investments where there is also a third-party partner in, or owner of, those entities. - Burford-only refers to assets, liabilities and activities that pertain only to Burford on a proprietary basis, excluding any third-party interests and the portions of jointly owned entities owned by others.
- Group-wide refers to the totality of assets managed by Burford, including those portions of the private funds owned by third parties and including private funds that are not consolidated within Burford's consolidated financial statements. Group-wide is therefore the sum of Burford-only and non-controlling interests in consolidated and non-consolidated private funds. Group-wide does not include third-party interests in capital provision assets, the economics of which have been sold to those third parties, which do not meet the criteria to be recognized as a sale under US GAAP. This includes the third-party interests in
Colorado and other capital provision asset subparticipations.
We subdivide our capital provision assets into two categories:
- Direct, which includes all of our capital provision assets that we have originated directly (i.e., not through participation in a private fund) from our balance sheet. We also include direct (i.e., not through participation in a private fund) complex strategies assets in this category.
- Indirect, which includes our balance sheet's participations in one of our private funds (i.e., Burford Advantage Master Fund LP).
We also use certain unaudited alternative performance measures, including:
- Internal rate of return ("IRR") is a discount rate that makes the net present value of a series of cash flows equal to zero and is expressed as a percentage figure. We compute IRR on concluded (including partially concluded) legal finance assets by treating that entire portfolio (or, when noted, a subset thereof) as one undifferentiated pool of capital and measuring actual and, if necessary, estimated inflows and outflows from that pool, allocating costs appropriately. IRRs do not include unrealized gains or losses.
- Return on invested capital ("ROIC") from a concluded asset is the absolute amount of realizations from such asset in excess of the amount of expenditure incurred in financing such asset divided by the amount of expenditure incurred, expressed as a percentage figure. ROIC is a measure of our ability to generate absolute returns on our assets. Some industry participants express returns on a multiple of invested capital ("MOIC") instead of a ROIC basis. MOIC includes the return of capital and, therefore, is 1x higher than ROIC. In other words,
70% ROIC is the same as 1.70x MOIC.
Other unaudited alternative performance measures and terms we use include:
- Commitment is the amount of financing we agree to provide for a legal finance asset. Commitments can be definitive (requiring us to provide financing on a schedule or, more often, when certain expenses are incurred) or discretionary (allowing us to provide financing after reviewing and approving a future matter). Unless otherwise indicated, commitments include deployed cost and undrawn commitments.
- Deployment refers to the financing provided for an asset, which adds to our deployed cost in such asset.
- Deployed cost is the amount of financing we have provided for an asset at the applicable point in time.
- Fair value adjustment is the amount of unrealized gain or loss recognized in our consolidated statements of operations in the relevant period and added to or subtracted from, as applicable, the asset or liability value in our consolidated statements of financial position.
- Portfolio includes deployed cost, net unrealized gains or losses and undrawn commitments.
- Realization: A legal finance asset is realized when the asset is concluded (i.e., when litigation risk has been resolved). A realization will result in us receiving cash or, occasionally, non-cash assets, or recognizing a due from settlement receivable, reflecting what we are owed on the asset.
- Realized gain / loss reflects the total amount of gain or loss, relative to cost, generated by a legal finance asset when it is realized, calculated as realized proceeds less deployed cost, without regard for any previously recognized fair value adjustment.
- Unrealized gain / loss represents the fair value of our legal finance assets over or under their deployed cost, as determined in accordance with the requirements of the applicable US GAAP standards, for the relevant financial reporting period (consolidated statements of operations) or cumulatively (consolidated statements of financial position).
- YPF-related assets refers to our Petersen and Eton Park legal finance assets, which are two claims relating to the
Republic of Argentina's nationalization of YPF S.A., the Argentine energy company.
We also use certain non-GAAP financial measures, including:
- Book value per ordinary share is calculated by dividing total Burford Capital Limited equity by the number of ordinary shares issued and outstanding.
- Cash receipts represent cash generated during the reporting period from our capital provision assets, asset management income and certain other items, before any deployments into financing existing or new assets. Cash receipts are a non-GAAP financial measure and should not be considered in isolation from, as a substitute for, or superior to, financial measures calculated in accordance with US GAAP. The most directly comparable measure calculated in accordance with US GAAP is proceeds from capital provision assets as set forth in our consolidated statements of cash flows. We believe that cash receipts are an important measure of our operating and financial performance and are useful to management and investors when assessing the performance of our Burford-only capital provision assets.
- Tangible book value attributable to Burford Capital Limited is calculated by subtracting intangible assets (such as goodwill) from total Burford Capital Limited equity. Tangible book value attributable to Burford Capital Limited per ordinary share is calculated by dividing tangible book value attributable to Burford Capital Limited by the total number of outstanding ordinary shares. Each of tangible book value attributable to Burford Capital Limited and tangible book value attributable to Burford Capital Limited per ordinary share is a non-GAAP financial measure and should not be considered in isolation from, as a substitute for, or superior to, financial measures calculated in accordance with US GAAP. The most directly comparable measure calculated in accordance with US GAAP is total Burford Capital Limited equity as set forth in our consolidated statements of financial position. We believe that tangible book value attributable to Burford Capital Limited per ordinary share is an important measure of our financial condition and is useful to management and investors when assessing capital adequacy and our ability to generate earnings on tangible equity invested by our shareholders.
Non-GAAP financial measures should not be considered in isolation from, as substitutes for, or superior to, financial measures calculated in accordance with US GAAP.
This announcement does not constitute an offer to sell or the solicitation of an offer to buy any ordinary shares or other securities of Burford.
This announcement does not constitute an offer of any Burford private fund. Burford Capital Investment Management LLC, which acts as the fund manager of all Burford private funds, is registered as an investment adviser with the US Securities and Exchange Commission. The information provided in this announcement is for informational purposes only. Past performance is not indicative of future results. The information contained in this announcement is not, and should not be construed as, an offer to sell or the solicitation of an offer to buy any securities (including, without limitation, interests or shares in any of Burford private funds). Any such offer or solicitation may be made only by means of a final confidential private placement memorandum and other offering documents.
Forward-looking statements
This announcement contains "forward-looking statements" within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, regarding assumptions, expectations, projections, intentions and beliefs about future events. These statements are intended as "forward-looking statements". In some cases, predictive, future-tense or forward-looking words such as "aim", "anticipate", "believe", "continue", "could", "estimate", "expect", "forecast", "guidance", "intend", "may", "plan", "potential", "predict", "projected", "should" or "will" or the negative of such terms or other comparable terminology are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. In addition, Burford and its representatives may from time to time make other oral or written statements that are forward-looking, including in its periodic reports that Burford files with, or furnishes to, the US Securities and Exchange Commission, other information made available to Burford's security holders and other written materials. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors because they relate to events and depend on circumstances that may or may not occur in the future. Burford cautions that forward-looking statements are not guarantees of future performance and are based on numerous assumptions, expectations, projections, intentions and beliefs and that Burford's actual results of operations, including its financial position and liquidity, and the development of the industry in which it operates, may differ materially from (and be more negative than) those made in, or suggested by, the forward-looking statements contained in this announcement. Significant factors that may cause actual results to differ from those Burford expects include, among others, those discussed under "Risk Factors" in Burford's annual report on Form 20-F for the year ended December 31, 2023 filed with the US Securities and Exchange Commission on March 28, 2024 and other reports or documents that Burford files with, or furnishes to, the US Securities and Exchange Commission from time to time. In addition, even if Burford's results of operations, including its financial position and liquidity, and the development of the industry in which it operates are consistent with the forward-looking statements contained in this announcement, those results of operations or developments may not be indicative of results of operations or developments in subsequent periods.
Except as required by applicable law, Burford undertakes no obligation to update or revise the forward-looking statements contained in this announcement, whether as a result of new information, future events or otherwise.
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SOURCE Burford Capital
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