LONDON (ShareCast) - (Sharecast News) - Burford Capital said on Wednesday that it swung into the red in the third quarter after revenues fell sharply.
Total revenues at the AIM-listed firm, which specialises in financing complex legal disputes, tumbled 72% to $69.8m in the three months to September end. As a result, net losses came in at $20.3m, compared to net income of $157.9m a year previously.

The net loss attributable to shareholders was $19.2m.

The slide in revenues was due to a decrease in capital provision income, arising from lower fair value adjustments.

However, chief executive Christopher Bogart said: "Burford is growing strongly, and above the level needed to double the size of the platform by 2030.

"The portfolio is also active and delivering attractive amounts of cash, with rolling three-year realisations at their highest level ever and 61 assets generating proceeds already this year."

New definitive commitments now stand at $637m in the year to date, up 52% on the first nine months of 2024.

Last month, a US appeals court signalled its willingness to set aside a $16.1bn judgement against Argentina for seizing control of oil company YPF in 2012.

The decision, the latest move in the complex, long-running dispute, sent Burford's shares sharply lower. Burford is funding the litigation and stands to receive much of the payout.

Bogart said: "The YPF matter is capturing a lot of attention, and we are bullish on its prospects. At the same time, the bulk of Burford's business doesn't involve YPF and is also flourishing and growing."

Dual-listed Burford was down 0.9% at 715p in London at 1610 GMT, having pared back earlier losses. In New York, the stock was down 1%.

The firm had been considering moving from Aim to a main market international secondary listing, but said it had opted against the move due to the high costs involved.

"[The London Stock Exchange is] demanding a $1m fee as though this were a brand new-IPO listing," it told investors. "Thus, current plan is to retain our AIM listing unless LSE alters its position, which is perplexing given the pressure faced by the London market."

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