Burford Capital to Release 4Q24 and FY24 Financial Results, Announces Reporting Changes
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Financial results and investor call scheduled for March 3, 2025.
NEW YORK – Burford Capital Limited, a global finance and asset management firm focused on law, announced it will release its financial results for the three months ended December 31, 2024 (4Q24), and the year ended December 31, 2024 (FY24), on Monday, March 3, 2025. The announcement, made on February 24, 2025, also included a preview of changes to the company’s financial reporting framework, coinciding with its transition to a US domestic issuer, effective as of January 1, 2025. Investors and analysts are keenly awaiting the details of Burford’s performance and the implications of these reporting changes.
The company will host a conference call for investors and analysts on Monday, March 3, 2025, at 10:00 a.m. EST / 3:00 p.m.GMT. Burford encourages pre-registration for swift access to the conference call, which can be done at https://registrations.events/direct/Q4I37665972. For those preferring to dial in, the numbers are +1 (646) 307-1963 (USA) or +1 (800) 715-9871 (USA & Canada toll free) / +44 (0)20 3481 4247 (UK) or +44 800 260 6466 (UK toll free), using the access code 37665. Participants are advised to dial in by 9:40 a.m.EST / 2:40 p.m. GMT to avoid delays.
In addition to the conference call, a live audio webcast and replay will be available at https://events.q4inc.com/attendee/169138797. pre-registration is also encouraged at this link.
An accompanying 4Q24 and FY24 results presentation for investors and analysts will be accessible on Burford’s website before the conference call, located at http://investors.burfordcapital.com.
Changes to Financial Reporting Framework
burford Capital is proactively adapting its financial reporting framework. The company has historically emphasized disclosure that accurately reflects shareholder ownership, a principle embodied in its “Burford-onyl” basis of financial reporting. this approach eliminates the impact of private fund entities that,while consolidated under accounting standards,are economically owned by third parties.
Starting with the upcoming 4Q24 and FY24 financial results, the “Burford-only” disclosure will be enhanced through more prominent segment reporting. This will involve two reportable segments: “Principal Finance,” which captures the financial impact of the legal finance portfolio funded by Burford’s balance sheet, and “Asset Management and other Services,” which encompasses fee income from Burford’s private funds funded by third-party capital, as well as income from other service-related operations. The company believes that under US reporting standards, segment reporting will provide more efficient and helpful disclosure on the key metrics that demonstrate how Burford generates shareholder value in each segment.
The sum of Burford’s two reportable segments will be referred to as “Total Segments” in certain disclosures, maintaining consistency with the aggregate “burford-only” basis of reporting.
Further simplification will be implemented within the Principal Finance segment by discontinuing the labels “capital provision-direct” or “core portfolio” (describing direct funding of legal finance assets by Burford’s balance sheet) and “capital provision-indirect” (describing indirect funding through commitments to private funds). Performance track record measures, such as return on invested capital (ROIC) and internal rate of return (IRR), will remain consistent with prior reporting, reflecting direct funding by the balance sheet, excluding the impact of any balance sheet commitments to private funds.
Reporting as a US Domestic Issuer
Effective January 1, 2025, Burford Capital no longer qualifies as a “foreign private issuer” as defined by the US Securities and Exchange Commission, a change previously announced on August 5, 2024. This is due to the increasing proportion of its equity ownership held by US-based investors. Consequently, beginning with the upcoming 4Q24 and FY24 financial results, Burford will report as a US domestic issuer. This transition involves several changes to Burford’s reporting and disclosures, including:
- Filing periodic reports on Form 10-K (annual) and Form 10-Q (quarterly)
- Filing current reports on Form 8-K
- Complying with US proxy requirements in connection with its annual shareholder meeting
- Meeting shorter filing timelines for financial results applicable to large accelerated filers (40 days for quarterly reports and 60 days for annual reports)
As part of this transition, Burford’s supplementary reporting documents will be streamlined. A detailed earnings presentation will be available alongside the financial results via Burford’s investor relations website and a current report on Form 8-K. The press release accompanying Burford’s quarterly financial results will serve primarily as a reference to the earnings call and detailed earnings presentation, rather than providing an extensive disclosure of financial results.
Burford Capital’s Reporting Revolution: A Deep Dive into Financial Openness adn the Future of Legal finance
Did you know that a shift in reporting standards can dramatically reshape how a global financial firm operates and communicates with investors? Burford Capital’s recent proclamation highlights just how impactful even internal structural changes can be. Let’s delve into the implications with industry expert, Dr. Anya Sharma, a leading authority on legal finance and financial reporting.
Senior Editor: dr. Sharma, burford Capital’s transition to a US domestic issuer and its revamped financial reporting framework are notable developments. Can you unpack the reasons behind these changes and their broader implications for the legal finance industry?
Dr. Sharma: Absolutely. These changes are deeply significant, reflecting Burford Capital’s evolution and its proactive adaptation to the ever-changing regulatory landscape. The shift to reporting as a US domestic issuer – triggered by the increasing US investor base – entails more stringent regulatory compliance with requirements laid out by the Securities and Exchange Commission (SEC).This demands increased financial transparency and adherence to stricter timelines for reporting. Together, the restructuring of their financial reporting framework, emphasizing segment reporting (“Principal Finance” and “Asset Management and Other Services”), improves clarity for investors. It allows for a more granular understanding of how value is created within distinct operational segments,enhancing accountability and investor confidence. This level of transparency is vital for the lasting growth of the legal finance industry as a whole.
Senior Editor: Burford’s “Burford-only” reporting approach, previously focused on reflecting shareholder ownership, is being enhanced. How does this transition to increased segment reporting affect investors’ understanding of Burford’s performance?
Dr. Sharma: The shift to a dual reporting, incorporating the key metric of “Total segments,” improves investor understanding of Burford Capital’s performance. Previously, the “Burford-only” approach, while accurate in reflecting direct shareholder value, might have obscured the contributions of different operational units. Now, the detailed segment reporting allows investors to assess the profitability, efficiency, and risk profiles of “Principal Finance” – Burford’s core legal finance operations – and “Asset Management and Other Services” – their actively managed client funds – separately. This gives a more nuanced picture of overall financial health. By separating these operations, investors gain a clearer perspective of the company’s diversification strategy, risk management, and financial performance. This enhanced transparency strengthens the foundation of trust between the company and its stakeholders.
Senior Editor: The adoption of US GAAP reporting standards presents both opportunities and challenges. What are some of the key challenges and benefits burford might experience following this transition?
Dr. Sharma: The transition to US Generally Accepted Accounting Principles (US GAAP) offers numerous benefits, chief among them enhanced credibility and comparability with US-listed peers. It opens doors to a wider investor base and perhaps better access to capital. Though, it also presents challenges. The increased reporting frequency and regulatory scrutiny require additional resources and compliance efforts. Meeting the stringent deadlines – 40 days for quarterly and 60 days for annual reports – necessitates robust internal processes and systems. Moreover,aligning their existing accounting practices with US GAAP’s specific requirements can be a complex and potentially costly endeavor. Still, the long-term benefits of increased investor trust and easier capital access are likely to outweigh these short-term challenges.
Senior Editor: What are the key takeaways for other legal finance firms considering similar reporting transitions?
Dr. Sharma: for other legal finance firms contemplating such a considerable reporting shift, here are key takeaways:
Proactive Planning: Begin the transition well in advance to allow for thorough assessment and implementation.
Resource Allocation: Invest in necessary resources, including accounting and compliance expertise.
internal Process Optimization: streamline internal processes for efficient reporting and compliance.
Stakeholder Interaction: Maintain transparent communication with investors throughout the transition.
* Expert Guidance: Seek expert advice on navigation of US GAAP standards and securities regulations.
Senior Editor: Thank you,Dr. Sharma, for this detailed and insightful analysis. This transition by Burford Capital truly sets a precedent for other firms and demonstrates the importance of financial clarity and transparency in the legal finance sector.
What are your thoughts on the future of legal finance reporting? Share your insights in the comments below! And don’t forget to share this interview on social media.