2nd Apr 2020 11:11
(Alliance News) - Burford Capital Ltd on Thursday said it will not propose a final dividend, nor repurchase shares, as the litigation financing firm looks to save costs in the face of "liquidity-constrained markets".
Burford added that its chief executive officer and chief investment officer will however, use their 2019 bonuses to buy company stock.
Burford added: "Burford has always been clear about the long-term nature of its business vision and does not intend to take short-term actions merely based on the share price. Burford does not believe it is in shareholders' long-term interests to engage in a corporate share buyback, and it does not intend to divert capital from its core business to buy back shares."
"In this period of opportunity with liquidity-constrained markets, applying all available cash to its business is in shareholders' best interests. Burford intends, like many other companies, not to propose a final 2019 dividend."
The company said courts and arbitral tribunals remain in operation. Although jury trials have been suspended, courts are open to receive fillings from new and existing cases, the company noted.
Burford does expect trial delays, though does not anticipate "a permanent negative impact" from this.
The company also hailed its "strong liquidity position", which leaves it well-placed to meet its commitments and fund operating expenses.
At March 31, it had USD146 million in cash and has access to a further USD758 million in undrawn capital.
The company is yet to confirm a release date for its annual report, staff at auditors Ernst & Young Ltd are working remotely.
Shares in the company were 1.2% lower at 381.50 pence each in London on Thursday morning.
By Eric Cunha; [email protected]
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