Burford Capital PLC (LON:BUR) shares shot higher as the litigation specialist said it had seen healthy cash generation ahead of a proposed US listing on the NYSE.
The AIM-listed company has been in the sights of short-seller Muddy Waters for how its accounts are drawn up, but a 35% rise in cash generated in the six months to end June to US$486mln sent the shares up 12% to 701p.
Burford added that realisations from legal actions it is involved in rose by 32% to US$820mln, including a 40% rise to US$478mln in Burford-only realisations.
“One group of 10 related assets realised during 1H 2020 fuelled the acceleration of returns, accounting for $266 million of Burford-only recoveries, $172 million of realised gains, an ROIC of 182% and an IRR of 49% for Burford's balance sheet,” said the group.
Profits before tax dropped by 15% to US$197mln.
Christopher Bogart, chief executive, added: "Burford achieved a very strong performance in the first half, with some substantial portfolio matters producing significant profits to drive an increase in cash on the balance sheet to US$316mln by 15 September.“
Trading on the NYSE is expected to commence on Monday 19 October.