Burford Profits Plummet 21%, Latest Financials Reveal
The litigation funder's total income also dipped 15% in the year ending December 2019.
April 28, 2020 at 05:37 AM
2 minute read
Litigation funder Burford Capital has seen a 15% total income dip in the year ending in December 2019.
Burford Capital's operating profits tumbled by 21% in the year ending in December 2019, the litigation funder's latest financial report shows.
The report reveals that the litigation funding giant's operating profits fell by 21% to $279.3 million from $354.8 million over the 12 months of 2019. Its total income also decreased by 15% year-on-year to $356.7 million. The firm said in a statement that both decreases were due to a "lumpy" legal finance market.
At the end of 2019, the firm retained $206 million of cash on hand, compared with $277 million in January 2019, according to the full financial report.
Nevertheless, the firm claims it has seen a 30% year-on-year increase in demand for litigation finance capital and has built a portfolio worth $4.2 billion.
Anticipating a profit dip in realised and unrealised gains, the firm had a tumultuous 2019 after its value plunged by roughly half following the much-publicised short-selling attack by Muddy Waters in August. The attack also prompted a securities class action lawsuit against Burford in New York, which was dismissed in December.
The litigation funder is currently investigating claims of market manipulation and suspicious trading against Muddy Waters.
Read more:
Burford Slapped With Class Action Securities Suit After Muddy Waters Dustup
'Revenge Porn' Probe, New Investment Report Keep Burford in the Spotlight
Burford Touts Management Moves, Potential NY Listing and End to Investor Class Action
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