Burford is a pioneering capital provider to the global legal industry and the leader in litigation finance.
WHAT ARE BURFORD CAPITAL’S CORPORATE DETAILS?
Burford Capital Limited was incorporated on 11 September 2009 in Guernsey with company registration number 50877. Its shares trade on the Alternative Investment Market of the London Stock Exchange under ticker BUR; ISIN GG00B4L84979. Its registered office is Regency Court, Glategny Esplanade, St Peter Port, Guernsey GY1 1WW.
As Burford Capital Limited is not incorporated in the UK, the rights of shareholders may be different from the rights of shareholders in a UK incorporated company. The Company is subject to the UK City Code on Takeovers and Mergers.
Burford Capital Limited and its committees are responsible for the governance of the group of companies.
ON WHICH EXCHANGE IS BURFORD CAPITAL LISTED AND WHAT IS THE TICKER?
Burford Capital’s shares trade on the Alternative Investment Market of the London Stock Exchange under the ticker symbol BUR.
WHO ADVISES BURFORD CAPITAL?
HOW OFTEN DOES BURFORD CAPITAL REPORT RESULTS?
The annual report and accounts covering the year ended 31 December each year are dispatched within six months of that date. Shareholders also receive an unaudited interim report covering the six-month period ended 30 June each year, which is dispatched within three months of that date. Burford’s reporting currency is US dollars.
WHAT IS BURFORD CAPITAL’S DIVIDEND POLICY?
Each year, once the prior year’s results are known, the Burford board will review the company’s profits, cash generation and cash needs, and will recommend a dividend level to shareholders for consideration at Burford’s AGM. It will be Burford’s goal to pay a dividend that provides an appealing dividend yield yet also encourages reinvestment in the business to produce capital appreciation. While the dividend is expected to be progressive as the company grows, it also should not be expected that it will necessarily be raised every year that there is earnings growth. Once a dividend level (expressed in US dollars, the company’s reporting currency) is set, the Board will recommend a reduction in the dividend level in subsequent years only in unusual circumstances, even if a single year’s earnings decline due to the inherent volatility of Burford’s business. Extraordinary successes may be celebrated through either special dividends or share repurchases, again depending on the company’s other cash needs and potential to invest for further capital appreciation.
DO THE SHARES OF BURFORD CAPITAL QUALIFY FOR UK BUSINESS PROPERTY RELIEF?
We are regularly asked by UK investors whether Burford’s shares qualify for UK Business Property Relief (“BPR”) for inheritance tax purposes. Burford cannot of course provide you with tax or other financial planning advice, and you should consult your own advisors rather than rely on what is stated here, but we provide the below comments in an effort to assist you in your own analysis.
We are not aware of any case where Her Majesty’s Revenue & Customs (HMRC) has rejected Burford’s shares as qualifying for BPR.
That is not, however, a complete answer. AIM shares like Burford’s are eligible for consideration for BPR. Unfortunately, the manner in which HMRC determines an ultimate position appears to be on a case-by-case basis. In other words, as part of the process for executing the will or administering the estate of a person who has died, a local HMRC agent will make his or her own individual assessment, which may or may not be consistent with an assessment made by another agent. There appears to be no HMRC master list of AIM-listed companies whose shares are eligible for BPR and there is no mechanism for obtaining an advance ruling.
In our view, it is not possible for any company to provide investors with an assurance that their shares will qualify for BPR.
DOES THE COMPANY HAVE AN EMPLOYEE SHARE INCENTIVE PLAN?
Yes, the company has a long-term incentive plan designed to align employee incentives with those of shareholders. Details about the plan can be found here. While the plan vests discretion in the Remuneration Committee concerning the use of a two-year holding period following vesting, the Committee has committed not to use its discretion with respect to senior executives and to require such a holding period.