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Burford Capital reports foreign private issuer status

EditorNatashya Angelica
Published 23/08/2024, 14:56
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Burford Capital Ltd (NYSE: BUR), a finance services company specializing in litigation finance and headquartered in Guernsey, has filed a Form 6-K with the U.S. Securities and Exchange Commission (SEC) on Friday, confirming its status as a foreign private issuer. The filing, dated August 23, 2024, includes materials related to the company's operations and compliance under the SEC's rules.

The Form 6-K is a report of foreign private issuers pursuant to Rule 13a-16 or 15d-16 under the Securities Exchange Act of 1934. It is utilized by foreign companies to provide the SEC with updates on significant corporate events. For Burford Capital, the filing is a routine disclosure that ensures the company's ongoing compliance with U.S. securities law as it pertains to foreign entities.

Included in the report is an exhibit index with a release dated the same day, which further details the company's current standing and recent activities. The nature of the materials in the exhibit was not specified in the summary of the filing.

The document was signed by Mark N. Klein, Burford Capital's General Counsel and Chief Administrative Officer, indicating that the company has met the necessary requirements for filing on the stated date.

Investors and stakeholders in the finance services sector may view such filings to keep abreast of the company's regulatory compliance and to gain insights into any material events that could affect its operations or financial status. However, the 6-K filing itself does not necessarily indicate any change in the company's performance or strategy.

Burford Capital's business address is listed as Oak House, Hirzel Street, St. Peter Port, Guernsey, GY1 2NP. The company's filings, including this latest Form 6-K, are part of its commitment to transparency and provide the investing public with regular updates on its corporate affairs as required by the SEC for foreign companies listed on U.S. exchanges.

This news is based on a press release statement from Burford Capital Ltd and the associated SEC filing.

In other recent news, Burford Capital Ltd has disclosed substantial financial achievements, including record-breaking first-quarter cash receipts for 2024, the highest in the company's history. The company's robust liquidity position was also underscored, with over $500 million in cash and securities reported. Moreover, Burford Capital's asset management business made a significant contribution, generating $4 million in cash receipts.

Significant corporate changes are on the horizon for Burford Capital, as the firm announced plans to transition to a US domestic issuer starting January 1, 2025. This decision follows the company's determination that more than half of its issued and outstanding ordinary shares are now held by US owners.

This transition will result in significant changes to Burford's reporting requirements, including the obligation to file annual, quarterly, and current reports with the US Securities and Exchange Commission.

In line with this transition, the company also announced 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.

Furthermore, Burford Capital is set to join the Russell 3000® and Russell 2000® Indexes in July 2024, becoming the first legal finance firm to achieve this milestone. In terms of regulatory compliance, the company has demonstrated its commitment to transparency and adherence to SEC regulations by submitting significant financial documents to the Securities and Exchange Commission. These are the recent developments that have been shaping Burford Capital's trajectory.

InvestingPro Insights

As investors consider the implications of Burford Capital Ltd's (NYSE: BUR) recent SEC filing, it may be useful to look at the company's financial metrics and market performance for a more comprehensive analysis. According to InvestingPro data, Burford Capital has a market capitalization of $2.89 billion and is trading at a low P/E ratio of 7.29, which is in line with its near-term earnings growth potential.

This is further supported by a PEG ratio of 0.14, indicating that the company could be undervalued based on its earnings growth rate. Moreover, the company's revenue growth has been impressive over the last twelve months, with an increase of 366.88%, although there has been a quarterly revenue decline of 78.52%.

InvestingPro Tips also highlight that Burford Capital is trading at a low earnings multiple and has liquid assets that exceed its short-term obligations. Moreover, analysts predict that the company will remain profitable this year, despite expectations of net income and sales decline. With a strong track record of profitability over the last twelve months and a high return over the last decade, these insights may be particularly relevant for investors evaluating the company's financial health and future prospects.

For more detailed analysis and additional InvestingPro Tips, interested readers can visit InvestingPro, which offers a total of 8 tips for Burford Capital Ltd.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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