LONDON (Alliance News) - BP Marsh & Partners PLC, the AIM-listed provider of venture capital to financial services companies, on Tuesday said it received 71 "relevant" new investment proposals in its last financial year, up from 59 in the precious year, with just over a third from the insurance sector, its specialty area.
BP Marsh, which owns stakes in the likes of LEBC Holdings Ltd and Besso Insurance Group Ltd, said two thirds of the investment proposals led to the signing of a non-disclosure agreement, and 28% warranted continued detailed investigation.
The insurance opportunities ranged from start-ups to investments in established businesses, BP Marsh said in a statement, including brokers, managing general agents, and claims administrators. Other financial companies considered by BP Marsh included independent financial advisor and other advisory businesses, as well as marketplace lending platforms and software-as-a-service enquiries.
The update came as BP Marsh reported results for the financial year ended January 31, which showed that the company had GBP5.3 million in cash and treasury funds at the end of the period. Of that amount, GBP3.6 million is available for new investment opportunities after commitments, and BP Marsh also expects in July a GBP7.3 million return of cash from realising its remaining 1.6% stake in insurance intermediary Hyperion Insurance Group Ltd.
The results showed an increase in the equity value of BP Marsh's portfolio of investments of 23.8% over the year.
The company's net asset value amounted to GBP70.8 million, up from GBP63.0 million a year earlier, equivalent to a 12.4% increase, net of dividends.
On a per share basis, BP Marsh's net asset value rose to 243 pence from 216p.
Shareholders enjoyed a total return of 13.7%, up from 8.2% a year earlier, with pretax profit rising to GBP10.7 million from GBP5.9 million and the dividend for the year up to 3.42p from 2.75p. Pretax profit was boosted by GBP10.3 million of unrealised gains on revaluing the equity investment portfolio.
"We have concluded a year in which our company has developed considerable confidence. The portfolio businesses are performing well as we support them in their development, we have interesting new investment opportunities in the pipeline and a healthy supply of cash," Chairman Brian Marsh said in a statement.
Shares in BP Marsh were up 5.4% at 167.00 pence Tuesday morning in London.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
Copyright 2016 Alliance News Limited. All Rights Reserved.
B.p Marsh (BPM)