17th Sep 2013 09:17
LONDON (Alliance News) - Burford Capital Limited Tuesday said its pretax profits before reorganisation costs swelled on the back of a near doubling in litigation-related income and a nearly-as-impressive increase in insurance-related income.
Burford, which provides litigation funding and risk management, said it made a USD9.7 million pretax profit when not including costs relating to its Burford UK acquisition in 2012 and subsequent UK reorganisation, for the six months to June 30, a 65% increase on the USD5.9 million reported for the corresponding period the year prior.
After the USD34.2 million in restructuring and reorganisation costs, Burford swung to a USD24.6 million pretax loss from a USD4.5 million profit a year before.
Burford UK, formerly known as Firstassist, provides litigation insurance to clients. The acquisition, carried out in February and December 2012, enabled Burford Capital to operate in the UK as well as in the US.
The increase in profit before charges can be put to a 41% increase in revenue to USD19.5 million, mainly a result of an 87% increase in litigation-related investment income to USD10.1 million. Although insurance-related income contributed more in total, at USD10.2 million, it increased by less on the previous half-year, up 59%.
Burford Capital shares were Tuesday quoted at 137.00 pence, down 2.00p.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
Burford Capital