LONDON (Alliance News) - Private equity investor BP Marsh & Partners Tuesday said its net asset value per share increased by 6.3% over the course of its last financial year, as it unveiled plans for a more regular dividend.
In a statement, BP Marsh, which provide venture capital to businesses in their early stages, said its NAV per share increased to 202 pence from 190 pence, over the year ended January 31.
Having sold 80% of its stake in Hyperion Insurance Group Ltd for GBP29.2 million during the year, leaving it with a 2.79% stake and coming through the financial crisis with cash in hand, BP Marsh said it has enough to make new investments and to reward shareholders. At the end of the year, it had GBP14.8 million in cash and treasury funds, with GBP8.7 million of that currently available for new investment opportunities.
"To this end we have declared, for the first time, an increased dividend for the year, with the aspiration that we will continue to pay a final dividend of at least 2.75 pence per share in the coming two years," Chairman Brian Marsh said in a statement.
BP Marsh paid a 1.25 pence interim dividend in August 2013 and declared a 2.75 pence final dividend on March 24, 2014. The shift to a regular dividend stream is being made due to the growth and consolidation of the group's investment portfolio.
However, holding higher-than-normal levels of cash reduced overall profitability year-on-year, with the Hyperion proceeds being reinvested and funds returned to shareholders. Pretax profit fell to GBP4.1 million, from GBP6.2 million, as lower gains on investments were only partially offset by an increase in income.
"As the group deploys the capital the overall performance of the portfolio's net asset value will be expected to improve accordingly," Marsh said.
BP Marsh shares were Tuesday quoted at 146.00 pence, up 1.0%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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B.p Marsh (BPM)