B.p Marsh Regulatory News (BPM)

13 November 2023

B.P. Marsh & Partners Plc

("B.P. Marsh", the "Company" or the "Group")

Investee Company Update - disposal by LEBC Holdings Limited of Aspira Corporate Solutions Limited

B.P. Marsh & Partners Plc (AIM:BPM), the specialist private equity investor in early stage financial services businesses, is pleased to announce that LEBC Holdings Limited ("LEBC") has conditionally sold Aspira Corporate Solutions Limited ("Aspira"), a wholly-owned subsidiary of LEBC, to Titan Wealth Holdings Limited ("Titan Wealth"), the discretionary fund management/wealth and asset management business (the "Transaction").

Background to the Investment

B.P. Marsh invested in LEBC in 2007, when its main operating subsidiary was LEBC Group Limited ("LEBC Group"), the national independent financial advisory ("IFA") firm. In 2017, LEBC acquired Aspira, the Bristol-based IFA founded in 2003 by its CEO, Derek Miles.

B.P. Marsh has a 59.34% shareholding in LEBC (the only majority position held within the current portfolio), the business of which has grown to provide pensions and investment advice to more than 1,600 corporate entities and over 15,000 individuals with circa £4 billion of assets under advice.

As previously announced, over the past three years LEBC has gone through a restructuring process led by Derek Miles and his management team in close consultation with the FCA. As announced by the Company on 9 August 2023, this process resulted in the consolidation of LEBC Group into Aspira, bringing the two businesses together under one brand with the intention of delivering an enhanced service for individual and corporate clients.

B.P. Marsh has been invested in LEBC for over 15 years and has supported the business through many changes in the advice market. The new ownership under Titan Wealth offers an exciting future for Aspira, and the Company wishes all stakeholders every success.

The Transaction

On 10 November 2023, LEBC agreed to sell 100% of Aspira to Titan Wealth, subject to regulatory approval.

LEBC will receive proceeds of sale over a three year earn-out period. The Group's expectation is that this will be at least in line with the Company's most recent published valuation of LEBC as at 31 July 2023, of £15,947,000. Additionally, the Group expects to receive repayment in full of its outstanding loans with LEBC, a total of £3.3m.

The Transaction will also allow LEBC to meet its obligations, as agreed with the FCA, regarding historical defined benefit pension transfer advice.

Commenting on the Transaction, Derek Miles, Chief Executive Officer of Aspira, said:

"I would like to thank all at B.P. Marsh for their longstanding support of LEBC and Aspira since their original investment back in 2007. Since I became CEO of the business in 2020, I have worked very closely with B.P. Marsh, who supported me fully in a comprehensive restructuring of the business, which has led to this eventual sale.

Such a sale has safeguarded the future of Aspira, as by combining our strengths and resources with Titan Wealth, we will be able to provide even greater value to our customers and further enhance our pensions advisory service. This would not have been possible without the full support of B.P. Marsh."

Oliver Bogue, Non-Executive Chairman of LEBC and B.P. Marsh Nominee Director on the Board of LEBC and Aspira, stated:

"It has been a pleasure to work with Derek Miles and the team at Aspira, seeing the business through this period of transformational change. This sale marks an exciting new chapter for Aspira, and is a natural next step in their progression.

At B.P. Marsh's current valuation, this transaction produces an Internal Rate of Return of 8.33%. This investment outlines B.P. Marsh's ability to support a business in the long term through uncertain times, safeguarding shareholder value. Such a result is also testament to Derek Miles and his team, given the fundamental changes the business has been though over the past number of years."

For further information:

Notes to Editors:

B.P. Marsh's current portfolio contains fourteen companies. More detailed descriptions of the portfolio can be found at www.bpmarsh.co.uk.

Since formation over 30 years ago, the Company has assembled a management team with considerable experience both in the financial services sector and in managing private equity investments. Many of the directors have worked with each other in previous roles, and all have worked with each other for approaching ten years.

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