BP Marsh reports strong full-year portfolio performance
By Josh White
Date: Monday 24 Feb 2025
(Sharecast News) - BP Marsh & Partners reported a strong portfolio performance in a full-year trading update on Monday, amid a series of disposals and new investments.
The AIM-traded company said it completed two significant exits during the 12 months ended 31 January, selling CBC UK and Lilley Plummer Holdings to generate a total of £65.7m in upfront cash proceeds from initial investments of just £0.3m.
Alongside the disposals, the group made three new investments, acquiring stakes in SRT & Partners, Volt UW HoldCo and CEE Specialty.
As at 31 January, group funds stood at £74.1m, up from £40.5m a year earlier, with the group remaining debt-free.
The company said it continued to maintain a robust pipeline of new and follow-on investments, reinforcing its position as a specialist venture capital investor in early-stage financial services businesses.
It reiterated its commitment to paying a minimum annual dividend of £5m in the financial years ending 31 January 2026, 2027, and 2028, subject to adjustments based on capital realisations or commitments.
In its capital allocation strategy, BP Marsh deployed £50.5m of sale proceeds to repay part of its revolving credit facility, allocated £10.6m to a share buyback programme, invested £6.2m in development projects, and directed £1.5m to capital expenditure on its operating portfolio.
Following the investments, the company retained a balance of approximately £40m, including carried-forward reserves from the previous financial year.
The group also completed a share buyback programme, acquiring 93,570 shares for £506,989 at an average price of 540p per share.
However, with the current discount to net asset value standing at 5.55%, the company said it was unable to continue buybacks under the existing programme, though that remained under review.
BP Marsh said its investment pipeline remained strong, with 73 new business enquiries received during the year, up from 71 in the previous period.
The group added that it was continuing to focus on opportunities in the insurance and financial intermediary sectors, targeting businesses with strong management teams and scalable business models.
It said it remained optimistic about the market outlook, and would release full annual results on 10 June.
At 1109 GMT, shares in BP Marsh & Partners were up 4.03% at 678.8p.
Reporting by Josh White for Sharecast.com.
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