Litigation-funding firm reveals 56 per cent growth in operating profit

Global finance and professional services firm Burford Capital has released its half-year results to the London Stock Exchange (LSE), revealing a bumper year in litigation finance.

The trans-Atlantic litigation-finance firm has seen a 48 per cent increase in income for the half year up to 30 June 2015 to $40.6m, and a 56 per cent growth in its operating profit.

This has been driven by a 64 per cent increase in income from its litigation investment portfolio, which has risen to $30.7m.

The company reported that revenue from litigation is up 23 per cent from 2013. Operating profit rose 43 per cent to $60.7m, and its dividend shares have doubled over five years.

The results also contain the company's largest recovery to date. Burford recouped $61m in gross proceeds on a $25m investment for a profit of $36m and a net return on invested capital of 144 per cent.

Sir Peter Middleton, chairman of Burford, commented: 'Burford had a busy and productive first six months, which included our largest investment recovery to date. The board is grateful for the continued support of our shareholders and bondholders as we look to further grow the business in what is an exciting and rapidly developing market.'

The company's chief executive, Christopher Bogart, added: 'The future continues to look exciting for Burford and we look forward to continued progress as the year proceeds.'

Despite criticism of its service from some quarters, these results suggest that the self-proclaimed world leader in litigation funding is here to stay.

Earlier this year, Burford launched SPRINT, designed for cases valued between £25,000 and £500,000 - a segment of the legal market previously unable to access litigation funding.

Kerry Underwood, of Underwood Solicitors, told SJ at the time that third party funding has a major role to play in litigation in 'a post legal aid and recoverability legal world'.

'It helps level the playing field with the multi-nationals who are hoovering up law firms,' he said.

Esther Nimmo is an editorial assistant at Solicitors Journal

esther.nimmo@solicitorsjournal.co.uk @EstherNimmo