Burford Capital restores dividend following record year for realised gains
Burford Capital has restored its dividend to its pre-pandemic level of 12.5 cents per share, and plans to pay out a full dividend in June, despite not paying an interim dividend in December 2020.
The litigation founder enjoyed a record year for realised gains. The group saw asset realisations up 72 per cent this year to $608m.
The group generated a whopping £1bn in cash receipts group-wide, and its operating profit for the year stood at $249m, down slightly on from 2019’s $265m, which the business said reflected modestly higher operating expenses “consistent with ongoing growth strategy”.
Speaking at a webinar about the results this afternoon, CEO Christopher Bogart said: “We couldn’t be happier with our performance this year…. We’re very excited on our success.
“We brought in more cash from case successful than ever before, amounting to £1bn group-wide, and we ended the year with more cash on hand and liquidity than we have ever had.”
Net assets on the group’s balance sheet at the end of 2020 stood at $1.7bn, up 11 per cent on the previous year.
Burford chairman Sir Peter Middleton added: “2020 was historic for both the scale of the global economic downturn as well as Burford’s record $337m of realisations on its balance sheet from its core litigation finance portfolio.
“Additionally, the board continued to implement its plan to evolve Burford’s corporate governance, appointing three highly skilled independent non-executive directors, including our first female board member.”
In October Burford successfully listed on the New York Stock Exchange securing a duel listing of its shares, having listed in London in 2009.