NEW YORK - Burford Capital Limited, a prominent finance and asset management firm specializing in legal services, announced today that it is slated to become a US domestic issuer starting January 1, 2025. This move comes after the company determined that more than half of its issued and outstanding ordinary shares are now held by US owners as of June 30, 2024.
The shift from a "foreign private issuer" to a US domestic issuer will bring significant changes to Burford's reporting requirements. The firm will be obliged to file annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K with the US Securities and Exchange Commission (SEC). Additionally, Burford will need to comply with US proxy requirements and Regulation FD.
This decision is the result of a strategic process spanning over five years, during which Burford has taken several steps to align itself more closely with US market practices. These steps include listing on the New York Stock Exchange in October 2020, adopting US generally accepted accounting principles, transitioning to quarterly reporting, and being added to the Russell 3000® and 2000® Indexes.
Despite the change in issuer status, there will be no impact on the status of Burford's ordinary shares, which will remain fully dual-listed on the New York Stock Exchange and the London Stock Exchange.
Burford Capital is recognized as a leader in its field, providing services such as litigation finance, risk management, asset recovery, and various legal finance and advisory activities. The firm operates globally, with offices in key cities across the world, including New York, London, Chicago, Washington, D.C., Singapore, Dubai, Sydney, and Hong Kong.
The information in this article is based on a press release statement and does not constitute an offer to sell or the solicitation of an offer to buy any ordinary shares or other securities of Burford.
In other recent news, Burford Capital, a global finance firm, has reported significant financial and operational updates. The company announced record-breaking first-quarter cash receipts for 2024, marking the highest in its history, with over $500 million in cash and securities. The asset management business also contributed significantly, bringing in $4 million in cash receipts.
In addition to financial milestones, Burford Capital is set to join the Russell 3000® and Russell 2000® Indexes as of July 2024, becoming the first legal finance firm to attain this milestone. This inclusion reflects the company's growth and its role in supporting clients such as Fortune 500 companies and major law firms.
Moreover, Burford Capital plans to hold an extraordinary general meeting (EGM) to seek shareholder approval for several corporate changes, including the appointment of KPMG LLP as its independent registered public accounting firm. The EGM is part of Burford's transition to full US issuer status anticipated later this year.
In terms of regulatory compliance, Burford Capital has submitted significant financial and operational documents to the Securities and Exchange Commission. These filings underscore the firm's commitment to transparency and adherence to SEC regulations.
These are the recent developments shaping Burford Capital's trajectory, reflecting its financial health, operational progress, and commitment to regulatory compliance.
InvestingPro Insights
In light of Burford Capital Limited's transition to a US domestic issuer, a closer look at the company's financial metrics and analyst expectations provides additional context for investors. According to InvestingPro data, Burford is currently trading at a P/E ratio of 8.52, which is relatively low given its near-term earnings growth potential. This suggests that the company's stock may be undervalued, presenting a potential opportunity for investors seeking to capitalize on the growth of a leading firm in the legal finance sector.
On the revenue front, Burford has demonstrated a robust performance, with a staggering 361.37% revenue growth in the last twelve months as of Q1 2024. This impressive expansion is also reflected in its gross profit margin, which stands at an almost perfect 99.08%. Despite concerns over a projected sales decline and a potential dip in net income for the current year, the company's liquid assets exceed its short-term obligations, indicating a strong liquidity position.
Investors should note that Burford's stock has been trading near its 52-week low and has seen a significant price drop over the last three months, with a 17.18% decline in total return. However, with analysts predicting profitability this year and a high return over the last decade, the recent price movements may represent a temporary setback rather than a long-term trend. The InvestingPro platform currently lists several additional tips that could further guide investment decisions regarding Burford Capital.
For those considering adding Burford to their portfolio, the company's next earnings date is set for August 8, 2024, which will be a key event to watch for updates on financial performance and strategic initiatives. Additionally, the current analyst target for fair value stands at $20, closely aligned with the InvestingPro fair value estimate of $19.86, suggesting potential upside from the previous close price of $13.06.
For more detailed analysis and further InvestingPro Tips on Burford Capital Limited, interested investors can visit InvestingPro, where additional insights are available to help make informed investment decisions.
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