LONDON (ShareCast) - (ShareCast News) - Niche venture capital provider B.P. Marsh updated the market on trading for the group's financial year ended 31 January on Tuesday - a period in which it realised its Besso investment, made follow-on investments in Nexus and LEBC, invested in Asia Reinsurance Brokerage and made start-up MGA investments in Fiducia in the UK and SSRU in Canada.
The AIM-traded company reported a return of £7.3m in equity and £6.04m of loans in cash from Hyperion, and increased its upper limit for new investments to £5m.

It confirmed a dividend of 3.76p for the year as part of a three-year programme, reportedly increased its opportunity pipeline, and confirmed it had £4.4m in net cash available.

"The year has been one of strong performance and important developments for the group," the company's board said in a statement.

"The group will have significant cash to deploy going forward following the return from the Hyperion disposal and, subject to completion, the proceeds of the exit from Besso.

"The portfolio businesses are performing well and the group increased its positions in Nexus and LEBC during the year."

The board said it continued its geographic expansion with new investments in Singapore and Canada, and was still seeing North America as an area of interest.

"The business also streamlined the portfolio by disposing of non-core holdings in Randall & Quilter and Broucour.

"The new opportunity pipeline remains strong and, in recognition of the expected cash inflow from Besso, the board has agreed an increase in the upper limit for new investments from £3m to £5m in first round funding."

Marsh's board said it 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 company's share price has increased by around 35% from 1 February 2016 to the current date, and there has been a narrowing in the discount to net asset value at which the company's shares trade in the same period.

"The board notes this improvement and intends to build on this performance in the coming year."

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