Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video here.
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I think a lot of us assumed that when the Hyperion deal was completed there would have been some sort of share buy-back or special dividend. By my reckoning £29m from Hyperion is £1 for each of the 29m shares in circulation. So e.g. 30p special dividend would have been quite affordable. Still a good company so what have they got in mind with the proceeds?
Possibly people looking for cash back but no surprises in this RNS. Read Simon Thompson's article 24 June: "Shares in Aim-traded investment company BP Marsh & Partners (BPM: 128p) continue to mark time close to a 12-month high of 128p, but at a hefty 33 per cent discount to net asset value of 191p. From my lens this is completely unjustified given that, subject to regulatory approval, the company has agreed to sell 80 per cent of its stake in global insurance broker Hyperion Insurance Group to private equity firm General Atlantic in a £29.2m deal. On completion, BP Marsh will have net funds of £20m, worth 68p a share, and still hold a further 45p a share of equity and loans in Hyperion. General Atlantic has an option to purchase the balance of BP Marsh's stake for £7.3m when Hyperion undertakes an initial public offering (IPO) and, under certain conditions, there could be a further £2m cash payout for BP Marsh if Hyperion undertakes an IPO within 12 months. So, not only will BP Marsh's net cash be shortly worth more than half its market capitalisation of £37.6m, but it means investments in another eight investee companies, worth £16.7m or 57p a share, are in the price for free. Investors have yet to cotton onto the fact that BP Marsh's board has previously stated it intends to "instigate a progressive dividend policy and will be keeping under review the possibility of making a buy-back of the shares". In other words, as soon as the Hyperion transaction receives regulatory approval, and BP Marsh is in funds, then expect news on some sort of capital return. I first advised buying BP Marsh's shares at 88p ('Hyper value small-cap buy', 25 Jan 2012), reiterated the advice at 90p ('Hyper value buy', 26 Oct 2012) and at 125p before BP Marsh's financial results earlier this month ('Deep value small-cap plays', 28 May 2013). In my view, the share price discount to book value is anomalous. Ahead of completion of the Hyperion sale, and a statement from the board on the use of the proceeds, I retain my fair value estimate of 160p".
On reading through the RNS statement it looks as if BP Marsh is agreeing to lend £6m to Hyperion. This may have something to do with it
Not sure mate....asked the same question!!!! I am investigating!!! Will let u know!
I assume that todays fall is related to the receipt of cash for the sale of the stake in Hyperion. But surely this should be beneficial for the balance sheet. Can anyone explain this significant fall/
sp down?!
Hopefully once BP Marsh secures the cash for Hyperion and some sort of distribution is announced the share price will rise.
ST continues to rate this a buy with target of 160 against NAV of 189.
What's your take on this? I expected more interest given the discount we are trading at? Thanks in advance
23 times average volume traded so far today! Anyone care to guess how long we are looking at before the cash will come through from the disposal? I'm sure I read months end somewhere??
This will move, just completely unknown mate
128/132
Get in quick the jet boats sailing people
102p being paid and shares still in strong demand
This has just been tipped by simon Thomson and there is a lot of buying pressure so get in quick
Panmure Gordon maintained its "buy" recommendation for BP March & Partners (BPM) with an increased target price of 130p, from 125p. The broker noted that there is a significantly large gap between the company's NAV, which stood at 178p per share as at 31st July 2012, and the current share price. Moreover, there seems to be little reason for this gap given that the firm is likely to divest its Hyperion subsidiary shortly. Also noted by Panmure is that the company has entered the fast growing Brazilian insurance market via the acquisition of a 51% stake in a specialist construction broker
Venture capital firm B. P. Marsh & Partners said its net asset value (NAV) was up in the first half and it was 'calm and positive' looking to the second half of the year. NAV during the six months to the end of July was up 3.8% to £52.0m, and up 7.3% on the same month in 2011. The company, which makes minority investments in financial services businesses, reported profit after tax in the first half of £2.2m, up slightly from £2m the year before. It had £3.3m cash at the end of the period plus a further £4.33m loan facility available. Chairman Brian Marsh said despite some encouraging recent signs in the UK and US economies, the global outlook remained extremely uncertain and the group would maintain "a measured course". "However, the inflow of potential new opportunities to the group remains interesting and two current proposals, in financial services and insurance broking, with geographic focus in the UK and Northern Europe, are being investigated," he said.
While not putting much of a dent in the share price's discount to NAV per share, the shares rose 2.5p to 91.5p on the announcement.
By 31st January 2011, the group had written off its investment value in HQB from an investment cost of £35,000 in February 2005. The outstanding loan of £140,000 (at 31st January 2011) was repaid in full prior to HQB entering administration. The group announced its maiden dividend of 1p along with its full year results.
Focusing on one winner and one loser in the company's portfolio, Marsh said its largest holding, Hyperion Insurance Group has forged ahead "with enviable momentum" but, proving that the company is "not immune to the pressure of the global financial outlook," the company's 27.72% stake in HQB Partners now looks worthless, after the proxy solicitation and corporate governance advisory partnership went into administration back in January.
Profit before tax and an extraordinary charge of £30,000 improved to £4.38m from £3.01m the year before. Excluding portfolio movement, the group made a pre-tax profit of £0.11m (2011: profit of £0.15m). The group aims each year to at least break even on an underlying basis, before taking into account any portfolio movement. The company currently has £3.5m of cash currently available for further investments, plus a further £4.325m of funds at its disposal from a loan facility made available by the directors. giving it a total war-chest of £5.5m, excluding commitments to existing investments.
In the year to 31st January, the group booked unrealised gains on the revaluation of its investment portfolio of £4.59m, versus gains of £2.97m the year before, which contributed to an operating income of £6.45m, up from £4.89m the year before. In terms of cash income - dividends, interest and fees received - this rose to £2.11m from 2.02m the year before.
The stoical statement from company Chairman Brian Marsh seemed to hint that the market's apparent indifference to the company might have something to do with its particular area of operation - financial services - lying at the heart of the storm which has engulfed Europe and North America. While the company's share price has been mired, the net asset value of the group has been rising steadily, and stood at£50.1m at the end of January, up 7.8% from £46.5m a year earlier, after making allowance for deferred corporation tax. This equates to a net asset value of 171p per ordinary share as at 31st January 2012 (2011: 159p).
BP Marsh, the venture capital provider to early stage financial services, has seen net asset value far outstrip the value of the company over the last year. As at May 28th, the company's shares were trading at a 48.2% discount to the net asset value (NAV) per share of the company, a substantial discount, even for investment companies, which often trade at a discount to asset value.
Seems to want to rise a little. It averages approximately 92p over the last few months. I shall hold. It shows promise.