Litigation finance provider Burford Capital (BUR:AIM) has reported 2017 results significantly ahead of analysts’ forecasts (14 Mar), prompting Liberum to upgrade its 2018 and 2019 earnings per share estimates by an astonishing 100%.

At more than £15, the shares are up 15-fold on its 100p stock market listing in October 2009, and up nearly 40% since we flagged their attractions in February this year.

The better-than-expected performance reflects the fact that, as chief executive Chris Bogart tells Shares, the company does not provide guidance to analysts.

The company helps fund legal cases in return for a share in any compensation awards, but the timing of these awards can be hard to predict. For this reason, Bogart says it makes more sense to consider Burford on a three or four-year view rather than just a single year’s performance.

Investment bank Berenberg reckons the medium-term outlook is positive. ‘Ultimately, we think that while Burford will be a significantly larger business over the longer term, it is difficult to accurately predict the journey.

‘What is obvious from the 2017 results is that all metrics, from investment performance to returns on equity, are moving in the right direction and we think that the business will continue to perform well’. (TS)

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