Burford is going from strength to strength and their latest growth figures show a very healthy industry. Burford has seen a 75% increase in their net profit after tax to $115.1 million. That is an increase of $49.4 million since the last report in 2015. Additionally, they have enjoyed a 61% increase in operating profit to $124.4 million (2015: $77.2 million).
The money Burford has on hand to invest is now growing organically. In 2016 they saw record investment recoveries of $216 million. There is no sign of the appetite for these services abating. Continuing demand for third party financing is reflected by record new litigation finance investment commitments of $378 million in 2016. That is up by 83% on 2015. Burford describe this as “sowing seeds for future income”.
Income has also increased by 59% to a record $163.4 million (2015: $103.0 million), driven by 60% increase in income from litigation-related investments to $140.2 million (2015: $87.9 million).
“Burford has experienced another record year, its seventh consecutive year of significant double digit growth. Burford continues to lead its growing and evolving industry, and looks forward to continuing to innovate to meet its clients’ ever-expanding needs. The Board is grateful for the continued support of our shareholders and bondholders.” – Sir Peter Middleton, Chairman of Burford
Crucially Burford are keen to communicate the size of the potential market opportunity that exists. The annual revenues from law firms, globally are enormous. They are in the realm of hundreds of billions of dollars. In the USA alone the 100 largest law firms have annual revenues of more
than $80 billion.
Additionally, millions of claims are brought every year with hundreds of
billions of dollars in resolutions being distributed.
Despite the size of the legal industry, there is little use of outside risk capital. We believe the litigation finance market remains at the early-adopter stage. – Burford Investor Presentation