Burford Capital delivers strong first half from litigation claims

3rd Jul 2014 08:42

Burford Capital, which provides litigation finance, has seen "continued strong investment returns" in the first half of the year.Since inception, the company claimed its 26 investments have generated $173.9m in gross investment recoveries and $67m net of invested capital, producing a 63% net return on invested capital.This is up 67%, or $47m, over the net position at June 30th 2013.Burford also said it has seen a "material increase" in cash generation, rising 94% to $41.9m.During the period, the company completed a financing transaction with power generation group Rurelec, which provided recourse financing linked to an arbitration claim. This delivered a $11m profit to Burford, equating to a 73% return and a 34% internal rate of return.Burford's Chief Executive Christopher Bogart said that the company's performance "continues to vindicate our approach to investment selection and the quality of our team".He added that the volume of new commitments made during the half "shows clearly the market demand for litigation finance solutions - and the success of the Rurelec transaction we announced last month shows our continued market leadership in innovating to meet that demand".The stock was 0.4% higher at 120p by 08:20 on Thursday.BC