Don't worry too much about Burford Capital's (BUR) first-half reported loss - that reflects a complex internal reorganisation that resulted in a $26.5m (£16.7m) non-cash accounting charge. Underlying pre-tax profit actually jumped 65 per cent year on year to $9.7m.
Burford provides finances in civil litigation cases where a plaintiff wouldn't have otherwise proceeded because of the cost or time involved. Most of its business is conducted in the US, but last year it purchased UK legal expenses insurer Firstassist - now known as Burford UK. Activity here rose dramatically in the first quarter as lawyers rushed to pursue claims before April's implementation of the Jackson reforms which, in non-personal injury cases, means that lawyers can no longer claim success fees. Reflecting that stampede, more than $150m of new business was written in the first quarter - more than Firstassist had written in the previous two years combined.