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Burford Capital blames coronavirus as it delays results
12th Mar 2020 16:06
(Sharecast News) - AIM-listed litigation and risk management company Burford Capital said on Thursday that it was delaying the release of its financial results due to the coronavirus outbreak.
Burford said its fiscal year 2019 results will be delayed by two or three weeks. "As things stand presently, we certainly do not expect the delay to extend beyond Easter," it said.
The company also announced that its New York office was closed due to the virus and its employees have been asked to work remotely. The finance team is predominantly based in the NY,where two employees "key" to the results process have had to self-isolate at home, it said.
"We also have third-party dependencies, ranging from auditors to printers to graphic designers, who are also affected by the coronavirus."
Still, Burford insisted that its client base of lawyers is "especially capable" of working virtually and that it does not reckon these disruptions will have any material negative impact on the business.
"Indeed we expect a heightened level of engagement as firms and their clients head into a potential downturn and also come to grips with the economic damage inflicted by the coronavirus. In addition, our management team is geographically dispersed and will remain so, mitigating any local impacts," it said.
Chief executive officer Christopher Bogart said the company regretted the delay in the release of the results but that these are "unprecedented circumstances" and the health and safety of the team is priority.
Burford came under pressure last year when US research firm and short-seller Muddy Waters accused the company of "egregiously misrepresenting" its returns and "the state of its overall business".
Burford subsequently released several statements refuting the claims, which it said were "false and misleading".
At 1620 GMT, the shares were down 6% at 377.10p in a sharply lower London market.
Burford said its fiscal year 2019 results will be delayed by two or three weeks. "As things stand presently, we certainly do not expect the delay to extend beyond Easter," it said.
The company also announced that its New York office was closed due to the virus and its employees have been asked to work remotely. The finance team is predominantly based in the NY,where two employees "key" to the results process have had to self-isolate at home, it said.
"We also have third-party dependencies, ranging from auditors to printers to graphic designers, who are also affected by the coronavirus."
Still, Burford insisted that its client base of lawyers is "especially capable" of working virtually and that it does not reckon these disruptions will have any material negative impact on the business.
"Indeed we expect a heightened level of engagement as firms and their clients head into a potential downturn and also come to grips with the economic damage inflicted by the coronavirus. In addition, our management team is geographically dispersed and will remain so, mitigating any local impacts," it said.
Chief executive officer Christopher Bogart said the company regretted the delay in the release of the results but that these are "unprecedented circumstances" and the health and safety of the team is priority.
Burford came under pressure last year when US research firm and short-seller Muddy Waters accused the company of "egregiously misrepresenting" its returns and "the state of its overall business".
Burford subsequently released several statements refuting the claims, which it said were "false and misleading".
At 1620 GMT, the shares were down 6% at 377.10p in a sharply lower London market.