FINAL RESULTS FOR THE YEAR TO 31 JANUARY 2019
B.P. Marsh & Partners Plc (AIM: BPM), the specialist investor in early stage financial services businesses, announces its audited Group final results for the year to 31 January 2019.
The highlights of the results are:
- Net Asset Value of £126.2m (31 January 2018: £98.9m), a 10.0% increase, net of Dividend and £16.6m net cash raised through the Placing and Open Offer in July 2018
- Total Shareholder return of 11.7% for the year including the Dividend paid in July 2018
- Net Asset Value per share increased to 350p (31 January 2018: 339p)
- Net Asset Value average annual compound growth rate of 11.9% since 1990 (net of Dividends and Placing cash)
- Consolidated profit after tax £12.5m (31 January 2018: £20.2m, or £10.8m excluding one-off items). Up 16% excluding one-off items
- Increase in the Equity Value of the Portfolio of 16.1% to £101.9m (31 January 2018 £79.1m)
- Final Dividend of 4.76p per share declared (31 January 2018: 4.76p), payable in July 2019
- Cash and treasury funds balance of £7.9m at year end, of which £1.5m remains uncommitted
- New investment in Australia, ATC Insurance Solutions PTY Ltd
- Additional investments in Nexus and XPT and provision of follow-on funding to Nexus
- Continued strong opportunity pipeline
- Share price increase of c11% in the year and 113% over five years
“We are pleased to have produced a good overall performance in an uncertain macro environment, which is testament to our developing investment portfolio and the tenacity of our team.”
I am pleased to present the audited Consolidated Financial Statements of B.P. Marsh & Partners Plc for the year ended 31 January 2019.
We have concluded the year with a 10.0% increase in Net Asset Value (net of dividend and £16.6m net cash raised through the Placing and Open Offer in July 2018) during that period and an increase in the equity value of the portfolio from £79.1m to £101.9m, or 16.1% adjusting for acquisitions. Our Net Asset Value now stands at £126.2m or 350p per share.
There have been some excellent investee company performances within the portfolio both in the UK and overseas and across broking and Managing General Agents.
Nexus continues to grow strongly, driven by its determined management team and its ambition to achieve the Company’s strategy. Nexus has made several acquisitions during the year and we acquired a further interest in Nexus in October 2018, as well as providing them with loan funding in April 2019.
XPT meanwhile announced its latest acquisition in January 2019, alongside which we provided further funding of US $3.22m.
In the London insurance market both Walsingham and CBC are making good progress, whilst in Australia our most recent investment, ATC Insurance Solutions, has already proved itself to be a strong performer that we consider shows great promise.
As is customary in our business, there are always investee companies experiencing more difficult times in their territory or market. Our investee company in Singapore is accordingly undergoing some internal restructuring and one of our operations in the USA has not achieved its objectives.
In the UK, LEBC was affected by market turbulence from October onwards, driven by Brexit uncertainty. This has had a temporary impact, however our confidence in the business and its prospects remains unchanged.
During the year we completed a Placing that saw PSC Insurance Group, the Australian listed insurance intermediary investor, take a 19.8% shareholding in the Group. This relationship is progressing well and we view their investment as long-term and supportive. Meanwhile we continue to be interested in Australia as a territory for further potential investment.
The Placing and accompanying Open Offer raised £16.6m in cash for the Group and this is now nearly fully invested.
At the conclusion of the year, we have maintained our objective of consistent compound annual growth. This has been achieved despite the challenges provided by various political and market uncertainties and we are pleased in the period under review to have delivered a total shareholder return of 11.7%.