TIDMBPM
RNS Number : 6570A
B.P. Marsh & Partners PLC
23 January 2024
23 January 2024
B.P. Marsh & Partners Plc
("B.P. Marsh", the "Company" or the "Group")
Use of Proceeds of Sale (GBP41.8m) and Strategy Confirmation
B.P. Marsh and Partners Plc (AIM:BPM), the specialist private
equity investor in early stage financial services businesses, is
pleased to provide shareholders with an update regarding the
intended use of proceeds of GBP41.8m that it expects to receive on
the anticipated completion of the sale of its shareholding in
Paladin Holdings Ltd (the "Sale"), as announced on 7 December
2023.
Enhanced dividend
In addition to the dividend policy announced on 6 June 2023,
whereby the Board agreed its intention to distribute a cash
dividend of GBP2m for the financial years 2024, 2025 and 2026 to
shareholders; the Company will now pay an additional GBP2m per
annum for this three year period.
As such, subject to completion of the Sale, it is the Board's
intention to allocate a GBP4m aggregate distribution to
shareholders in each year for the next three years, with payments
commencing in the financial year beginning 1 February 2024,
equating to GBP12m in total. This equates to 5.9% of our most
recently published Net Asset Value. This represents a 100% increase
on the previously stated dividend policy, and the additional GBP6m
that has been allocated to this represents 14.4% of the Sale
Proceeds.
Since the Group paid its first dividend in 2010, the Group has
paid out GBP12.6m in dividends which represents 6.2% of the current
Net Asset Value, or 30.7% of the Company's market capitalisation at
flotation. This has been delivered alongside a share price increase
of 338.50p (351%), and an Net Asset Value increase of GBP158.6m
(354%) since 2010.
The details surrounding the specific dates of the distributions
will be confirmed following completion of the Sale, in due
course.
Ongoing Investment Strategy
Following the allocation of funds for this enhanced dividend and
recent investment activity, the Group will have GBP74.5m of cash
balances available.
The Group will continue to utilise these remaining cash balances
on its long-standing stated objectives to:
1. assist our portfolio of investments, deploying capital to
support continued strong growth in the value of the Group's equity
portfolio. In the five years to 31 July 2023, the Group's
underlying equity portfolio value has (on an adjusted basis) grown
at a Compound Annual Growth Rate of 15.2% and the desire is to
maintain this rate of growth; and
2. invest in early-stage businesses with strong management teams
and significant growth potential, providing funds and support to
ensure these companies deliver on their growth opportunities. We
continue to believe that we are unique in our approach and area of
interest as the only minority investor with a focus on early stage
and start-up businesses in the insurance distribution space, among
others.
This is a continuation of the Group's strategy to deliver
significant returns to our shareholders, via a blend of ongoing
equity growth from the existing portfolio and regular returns of
capital to shareholders via dividends.
The recent and continuing consolidation activity within the
Insurance Market continues to drive substantial opportunities for
the Group, both in terms of new investments and activity within our
underlying portfolio.
As the Group's performance demonstrates, the existing
investments remain strong, and the Company is confident regarding
future growth over the years ahead. The Group anticipates deploying
meaningful cash resources within this existing portfolio alongside
new investment opportunities.
These growth opportunities include the following:
-- Expansion into further geographic territories;
-- Launching new products;
-- Team and individual hires;
-- Securing new / additional capacity; and
-- Merger & Acquisition activity.
The Group continues to be approached by entrepreneurial
individuals and teams and has an active pipeline of new business
opportunities.
During the course of 2023, the Group completed three new
investments, as follows:-
-- Ai Marine Risk Limited ("Ai Marine") December 2023 - a
start-up Managing General Agency, which specialises in Marine Hull
insurance and will underwrite a global portfolio of business.
-- Pantheon Specialty Limited ("Pantheon") June 2023 - a
start-up insurance broker, led by Rob Dowman, a recognised leading
London Market broker, specialising in complex placements
worldwide.
-- Verve Risk Services Limited ("Verve") April 2023 - a Managing
General Agency, which specialises in Professional and Management
Liability business for the insurance industry in the USA, Canada,
Bermuda, Cayman Islands and Barbados.
The Group is confident that the three new investments as
outlined above, will deliver on their set goals, producing long
term growth.
We will continue to focus on deploying start-up/early stage
capital to this type of investment, where we are able to utilise
our significant experience and expertise, and "stick to our
knitting", an approach which has delivered meaningful shareholder
returns since flotation in 2006.
The Group currently has 11 potential opportunities under review
to consider during the first half of 2024, all of which are in the
insurance heartland upon which we focus.
Further information regarding the performance of the Group will
be published in B.P. Marsh's trading update, to be released in
mid-February 2024.
This announcement contains inside information.
For further information:
B.P. Marsh & Partners Plc www.bpmarsh.co.uk
Brian Marsh OBE +44 (0)20 7233 3112
Nominated Adviser & Broker
Panmure Gordon
Atholl Tweedie / Stephen Jones / Amrit
Mahbubani +44 (0)20 7886 2500
Financial PR & Investor Relations
Tavistock bpmarsh@tavistock.co.uk
Simon Hudson / Tim Pearson / Katie Hopkins +44 (0)20 7920 3150
Notes to Editors:
B.P. Marsh's current portfolio contains fifteen companies. More
detailed descriptions of the portfolio can be found at
www.bpmarsh.co.uk.
Since formation over 30 years ago, the Company has assembled a
management team with considerable experience both in the financial
services sector and in managing private equity investments. Many of
the directors have worked with each other in previous roles, and
all have worked with each other for more than ten years.
- Ends -
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