B.P. Marsh & Partners Plc (AIM: BPM), the niche venture capital provider to early stage financial services businesses, is pleased to announce that is has acquired a further 17.84% in LEBC Holdings Limited (“LEBC”) for aggregate cash consideration of £7,138,000.
The shares have been purchased for cash from several sellers, including retiring employee shareholders, members of Management via LEBC’s Employee Benefit Trust and Joint Share Ownership Plan and the Founder and CEO, Jack McVitie. Following the purchase, the Company has an aggregate shareholding of 60.87% in LEBC, while the balance continues to be held by Founder and CEO, Jack McVitie and LEBC Management.
LEBC is a financial advisory business with a national network of branches, working with both private and corporate clients. The business has grown strongly in recent years, boosted by investment in technology and by success in targeting the at-retirement market. Year-end results to 30th September 2016 show turnover of £15.4m and trading profit of £2.1m. In the three-year period since 30th September 2013 and following the introduction of the Retail Distribution Review on 31stDecember 2012, turnover has increased 36% (from £11.3m) and trading profit by 184% (from £0.74m).
B.P. Marsh first invested in LEBC in April 2007, taking a 22.5% stake. In 2016 the Group increased its holding to 43.03%.
Camilla Kenyon, the Group’s nominee Director on the Board of LEBC commented: “LEBC is on an exciting growth trajectory, building on solid foundations. We are pleased to increase our shareholding and continue to work with management to grow the business, which we believe occupies a desirable position in the financial advisory market.”
The Group’s usual strategy is to take minority positions, however in this instance the opportunity to make an additional investment in LEBC proved compelling. The increase to a majority position will not result in changes to the management of the investment, with Management continuing to run the business day-to-day. The Group’s shareholder protections remain in place and Oliver Bogue, investment director at B.P. Marsh, will be appointed as an additional Non-Executive Director to the board of LEBC alongside this supplementary investment.
Brian Marsh, Chairman of the Group said: “At B.P. Marsh we invest in management teams with potential and are happy to build those relationships over the long-term. Having spent a decade partnering LEBC we are pleased to make this further investment and look forward to the years to come.”
Jack McVitie, CEO of LEBC said: “LEBC has grown significantly over the past 10 years, consistently improving performance on every financial metric. Our partnership with B.P. Marsh has been the bedrock of that success. We are delighted to be able to extend that partnership and together look forward with confidence to the future.”
This announcement contains inside information, disclosed in accordance with the Market Abuse Regulation which came into effect on 3 July 2016 and for UK Regulatory purposes the person responsible for making the announcement is Sinead O’Haire.
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