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Burford Capital booming

RESULT: Demand for litigation finance boosts Burford Capital's investment portfolio, but the shares can still be bought at a slim discount to a very conservative book value

Business is booming, according to Burford Capital's chief investment officer, Jonathan Molot, and demand for litigation finance has never been higher, which is very good news for the world's largest provider of investment capital to this niche area. This helped to boost the company's total income at the half-year stage by 18 per cent to $13.6m (£8.67m). Moreover, the purchase of UK-based Firstassist for $11.5m is already showing results, delivering $3.7m of profits in the first four months.

IC TIP: Buy at 107p

Burford invests in civil litigation cases, and five of these were resolved in the first half, bringing the total of investments concluded to 14. What's more, the aggregate net return on the $48m invested in these 14 cases is expected to be at least $82m, giving a 70 per cent return when fully realised. And Burford continues to add to its portfolio, investing $40.5m in six new cases and a further $4.2m to existing investments in the first half.

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