(Alliance News) - BP Marsh & Partners PLC on Tuesday said its net asset value rose in its most recent financial year, benefiting from a strong performance from its insurance intermediary investments.
Shares in BP Marsh were up 14% at 216.01 pence in London in morning trading.
The company, which invests in early stage financial services businesses, said its NAV per share was 8.5% higher at 380.1p on January 31, the end of its financial year, compared to 350.3p the year before.
"The portfolio has performed well for the financial period, with our Insurance Intermediary investments showing good growth. Over the financial period the portfolio as a whole increased in value by GBP11.6 million, to GBP115.7 million, or 11.1%," said Chief Investment Officer Daniel Topping.
Commenting on the company's outlook, Topping said: "The group believes the portfolio and the management teams within it are well set to continue to deliver excellent long-term growth to their shareholders. There is continued demand from the wider private equity market for financial services and intermediated investments which provide exit opportunities for our portfolio companies.
"On the other hand, the group remains broadly insulated from this backdrop, due to its sector specific niche and sourcing model, which focuses on identifying off-market deals through a network of entrepreneurial business founders and managers, avoiding competitive processes."
BP Marsh has recommended a 2.22p per share dividend, less than half its 4.76p per share dividend the year before.
"We have tried to balance the need to conserve cash to ensure that the group can continue to prosper and develop in the undoubtedly difficult times to come, due to the consequences of the Covid-19 pandemic, whilst also rewarding shareholders for their continuing loyalty. We believe that we have struck this balance," Chair Brian Marsh and Managing Director Alice Foulk said in a joint statement.
By Anna Farley; annafarley@alliancenews.com
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B.p Marsh (BPM)