(Alliance News) - BP Marsh & Partners PLC on Tuesday reported a boost in its annual net asset value and pretax profit, in a strong year for the company.
Net asset value per share for the year ended January 31 increased by 63.5 pence to 562.2p, compared to 462.7p the previous year. Overall NAV was up 14% to GB189.5 million from GBP166.6 million.
"The 14% increase in NAV reported in these results demonstrates the strength of our business model which focuses on difficult to replicate opportunities, principally in the growing insurance intermediary markets globally," said Chair Brian Marsh.
For the financial year ended January 31, the London-based investor in early stage financial services businesses reported a pretax profit of GBP27.6 million, a 42% increase from GBP19.4 million the prior year.
BP Marsh & Partners declared a total dividend of 2.78p per share, that will be paid in two instalments. The company paid an interim dividend of 1.39p per share on February 28 and is recommending a final dividend of 1.39p to be paid on July 28.
This followed the news on May 23 that BP Marsh & Partners were planning to sell its 19% stake in Kentro Capital for a cash consideration of GBP51.5 million to the US-based insurance intermediary, Brown & Brown Inc.
Kentro Capital is a London-based insurance industry investment group.
"The sale of our interest in Kentro, post year-end, for an expected GBP51.5 million validates both the strength of our long-term business model and our valuation methodology," said Chair Marsh.
Cash balance is at GBP5.2 million, down from GBP8.6 million last year; but the company said when the funds have been received from the Kentro sale these liquidity will be increased.
"BP Marsh will continue to work on producing sustained growth for the coming months and years ahead while at the same time delivering attractive returns for our shareholders," said Brian Marsh.
Shares in BP Marsh & Partners were up 2.0% at 355.00 pence in London on Tuesday.
By Will Neill, Alliance News reporter
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B.p Marsh (BPM)