3rd Mar 2025 14:25
(Alliance News) - Burford Capital Ltd reported decreased GAAP consolidated profit and revenue despite 2024 being a "splendid" year with above-average returns.
Shares in Burford Capital were 6.9% lower at 1,150.00 pence each on Monday in London.
The litigation finance provider, which has offices in London and New York, declared a final dividend of 6.25 US cents per share for 2024. This was unchanged from the previous year.
Pretax profit for the year was USD253.6 million, down 66% from USD738.3 million. Net income fell 68% to USD229.6 million from USD718.2 million. Revenue dropped 50% to USD546.1 million from USD1.09 billion.
However, net realised gains increased 75% on-year to USD439.7 million from USD251.6 million. Burford also noted "record realisations of USD641 million, more than 20% higher than in 2023".
"Overall cash generation levels were also at record levels with cash receipts of USD699 million in FY24 more than 30% higher than previous annual peak in FY2020," Burford added.
For the fourth quarter, total revenue decreased 68% on-year to USD93.0 million from USD292.6 million. Pretax profit dropped 89% to USD16.2 million from USD144.5 million. Net income plummeted 90% to USD13.9 million from USD139.7 million.
"Burford had a splendid 2024," commented Chief Executive Officer Christopher Bogart. We achieved record-breaking cash realisations with returns well above our historical averages as well as strong growth in new business. We were also added to the Russell indices and cemented our transition to reporting as a US domestic issuer."
He continued: "Our 2025 Investor Day on April 3 will be a great forum to share even more with you on the potential of the current portfolio as well as Burford's path forward as we continue to grow. We hope you can join us."
By Emma Curzon, Alliance News reporter
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