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Burford Capital expects 'significant' demand for services after Covid-19 crisis

By BFN News | 07:45 AM | Tuesday 28 April, 2020

Litigation funder Burford Capital touted further portfolio gains ahead as the aftermath of the Covid-19 crisis was expected to lead to 'significant demand' for its litigation services. In the first four months of 2020, Burford had obtained court results or arbitral awards that, if paid in full, would generate £800m in cash receipts and more than $450m in balance sheet cash receipts. More than $500m in group-wide income and aboud $300m in balance sheet income, against which less than $1.5m had been realised through 31 December 2019 in balance sheet fair value gains, the company said. The expected cash receipts should provide a 'meaningful addition to Burford's already healthy cash liquidity to reinvest in new matters,' it added. In 2019, sustained client demand for Burford's capital saw 29% growth in core litigation finance and asset recovery new commitments to $955m, up from $739m on-year. A quiet second half for asset realisations drove lower Burford-only adjusted operating profit of $279m from $355m. Total Burford-only income was down 15% at $357m. 'We have significant cash on hand in addition to our proven cash generating capacity and access to hundreds of millions of dollars of fund capital to boot. And much as we share the world's distress at our current health crisis, the reality is that we expect its aftermath to be a time of significant demand for our services and a moment when uncorrelated cash flows are especially attractive,' the company said. Story provided by

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