B.P. Marsh & Partners PLC, the niche venture capital provider to early stage Financial Services businesses, announces its audited Group final results for the year to 31 January 2017.
The highlights of the results are:
· Increase in the Equity Value of the Portfolio of 22.1% over the year
· Net Asset Value of £79.7m (31 January 2016: £70.8m), a 12.5% increase, net of Dividend
· Net Asset Value increase to 273p per share (31 January 2016: 243p)
· Total return to Shareholders in the year of 13.9% (2016: 13.7%)
· Consolidated profit after tax of £9.8m (31 January 2016: £8.7m)
· Average Net Asset Value annual compound growth rate of 11.4% since 1990
· Final Dividend of 3.76p per share declared (31 January 2016: 3.42p), a 9.9% increase
· Cash and treasury funds balance of £12.6m at year end
· Three new investments – ARB, Fiducia and SSRU
· Further investment into LEBC, Nexus and PLUM
· Three disposals – Hyperion, R&Q and Broucour
· Agreement reached on Besso and Trireme disposals (completion post Year End)
· Current uncommitted cash of £29.2m
“We have concluded a further year in which our Company has built on its past achievements. The portfolio businesses continue to perform well as we support them in their development, we have interesting new investment opportunities to complete and a much increased supply of cash”
Brian Marsh OBE, Chairman
Group Valuation chart (£million)
The valuations from 31 July 2007 include £10.1million net proceeds raised on AIM and all valuations below are net of deferred tax.
I am pleased to present the audited Consolidated Financial Statements of B.P. Marsh & Partners PLC for the year ended 31 January 2017.
The financial year proved to be one of the most productive of our 27 year history, with three new investments, three disposals, two further investments in the existing portfolio and agreement reached on the sale of our investment in Besso. The value of the investment portfolio increased by 22.1% in the year and our Net Asset Value by 12.5%, demonstrating the momentum we have been building in recent years.
The results show the Group to be in a strong position, with robust profitability, a healthy cash balance and an attractive portfolio of growth investments. This puts us in a good position to continue to develop and deliver attractive returns over the long-term for our investors, with a Total Shareholder Return in the year of 13.9% and an average NAV compound annual growth rate of 11.4% since 1990.
During the year we agreed the disposal of our investment in Besso, which brought to a close two decades of partnership. We also completed our exit from Hyperion. These investments typify our investment approach at B.P. Marsh; long-term, patient development of early stage businesses in partnership with ambitious management teams. We view all of our investments as a true partnership and we supported, counselled and encouraged Besso and Hyperion through relationships of over twenty years. Our internal rate of return (IRR) on Besso was 21.9% since 1995 and on Hyperion was 25.6% since 1994, proving the effectiveness of our investment model.
We made three new investments during the year. The first was in an established reinsurance broker based in Singapore, Asia Reinsurance Brokers PTE Ltd. We also launched two start-up Managing General Agency businesses: Fiducia in Leeds, UK, and SSRU in Toronto, Canada. During the year, we disposed of non-core holdings in Randall & Quilter and Broucour.
In addition, we made further investments in the existing portfolio, in Nexus, LEBC and PLUM. All of these businesses are making significant headway in their sectors and we believe have exciting futures.
Subsequent to the year-end we have made an investment in CBC, an established Lloyd’s Broker, completed the disposal of Besso, and also disposed of our investment in Trireme by sale back to our Texas-based partners, US Risk Insurance Group Inc.
To reflect the growth in our business and to enable us effectively to exploit our pipeline opportunities, the Board agreed in February 2017 that we would increase our initial investment limit from £3m to £5m. The Board will continue to strike a balance between rewarding shareholders by generating value through investing funds in opportunities that will deliver long-term capital growth and a sustainable ongoing dividend. The Final Dividend declared of 3.76p per share is an increase of 10% on the previous year and represents a yield of just under 2% (based on the Company’s share price as at 5 June 2017). The Board is aiming at least to maintain this level in the coming two years.
The Company’s share price increased by 35% from 1 February 2016 to year end, and there has been a narrowing in the discount to NAV at which the Company’s shares trade in the same period. We maintain our efforts to close this gap and will continue our policy to make low volume share buy backs when the NAV discount reaches 25% and when trading restrictions allow.
We have now been in business for 27 years and over the last five years in particular have built upon our reputation for being the leading investor in our corner of the market. Our team is fully focused on bringing in new investments, tending to the portfolio and developing our network, whilst ensuring our story is more widely known in the broader investment community. I believe that our momentum is building and that our management team is well equipped to continue to drive the business forward.
For the Group’s full results, please click here.
Share Price – NAV Price chart
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