Burford Capital share price closes up after financial services company reveals revenues over $100m for the first time in its history
Share price in Burford Capital closed up today after the financial services company reveals a boost to both its profits and revenues for the year ended December 2015.
The company, which specialises in providing finance for litigation, announced profits before tax of $67.9m (£48.2m), up 19 per cent from $57.1m the year before, while revenues rose to $103m, up 26 per cent from $82m.
The firm's litigation finance operations performed particularly well, with income from this stream growing to $86.9m, up 82 per cent from $47.8m the year before.
"We have experienced rapid growth over our six year history and 2015 was no exception," said Sir Peter Middleton, chairman of Burford. "Our results continue to demonstrate the fundamentally uncorrelated nature of Burford’s business and our ability to generate cash from litigation finance investments without regard to economic or market conditions."
Christopher Bogart, chief executive of Burford, added: "We are delighted to record income of over $100m for the first time, a milestone reflecting continued strong growth in the diversifying worldwide litigation financing market, as well as our ongoing flexibility in meeting our clients’ needs. We see further opportunities to grow, while sustaining underwriting discipline and targeting attractive risk adjusted returns."
Shares in the company closed up 10 per cent at 243p.