FINAL RESULTS FOR THE YEAR TO 31 JANUARY 2018
B.P. Marsh & Partners Plc (AIM: BPM), the niche venture capital provider to early stage financial services businesses, announces its audited Group final results for the year to 31 January 2018.
The highlights of the results are:
- Increase in the Equity Value of the Portfolio of 31.3% (£18.9m)
- Net Asset Value of £98.9m (31 January 2017: £79.7m), a 24.1% increase, net of Dividend
- Net Asset Value increased to 339p per share (31 January 2017: 273p)
- Total return to Shareholders in the year of 25.5% (2017: 13.9%)
- Consolidated profit after tax of £20.2m (31 January 2017: £9.8m)
- Average Net Asset Value annual compound growth rate of 12.0% since 1990
- Final Dividend of 4.76p per share declared (31 January 2017: 3.76p), a 27% increase
- Cash and treasury funds balance of £5.4m at year end
- Four new investments – two in Lloyd’s Brokers and two in the USA
- Two disposals – Besso and Trireme
- Further investment into LEBC of £7.1m
- Provision of follow-on funding to Nexus of £4m
- Current uncommitted cash of £0.5m
“On the conclusion of an excellent year, the Group is in a sound financial position, has a strong portfolio of investments and a management team committed to driving our business forward. The Group is growing strongly, delivering consistent year on year returns to shareholders and is well-positioned to deal with any uncertainty arising from the UK’s exit from the EU by April 2019. The Board looks forward to the year ahead with confidence.”
Brian Marsh OBE, Chairman
I am pleased to present the audited Consolidated Financial Statements of B.P. Marsh & Partners Plc for the year ended 31 January 2018.
It has proved to be another year of strong growth and significant positive developments for the Group.
The value of the equity portfolio has increased by 31.3% in the year, driven in particular by robust growth in Nexus, LEBC and CBC, and Net Asset Value has increased by 24.1% to £98.9m or 339p per share. We are delighted to have delivered a total shareholder return in the year of 25.5%.
We made four new investments during the year. We were pleased to make two new Lloyd’s broking investments in London and to further our geographic expansion with two new North American investments.
Within the existing portfolio, we provided further support to LEBC and increased our shareholding by an additional 17.84%, to take us to a majority position of 60.88%. In December 2017, LEBC completed the £5m acquisition of Aspira, a Bristol-based IFA business, to which we contributed loan funding of £1.5m.
We supported Nexus with a £4m loan facility that has enabled it to pursue its acquisition strategy, with four acquisitions during the year.
The disposal of Besso, after a partnership spanning two decades, at an Internal Rate of Return (“IRR”) of 21.9%, further demonstrates the success of our model. We also successfully disposed of our Trireme investment by way of sale back to the majority shareholder in that business, US Risk Inc, at an IRR of 15.6%.
Our Group now has a geographically diverse portfolio with a range of investments from those which are well-developed and considering their options for further growth, to the recent start-ups which are beginning to make headway.
We continue to do all that we can to build value for our shareholders whilst providing a sustainable dividend and are pleased to announce a 27% increase in the dividend to 4.76p per share.
On the conclusion of an excellent year, the Group is in a sound financial position, has a strong portfolio of investments and a management team committed to driving our business forward. The Board notes the current level of uncommitted cash and is considering its options in this respect. We believe that the Group is at a key phase of its development and we look forward to the year to come.