REG - B.P. Marsh &Partners - Use of Proceeds of Sale & Strategy Update

B.P. Marsh & PartnersAnnouncement

06/06/2023 07:00

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RNS Number : 7177B  B.P. Marsh & Partners PLC  06 June 2023

6 June 2023

 

B.P. Marsh & Partners Plc

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

 

Use of Proceeds of Sale (£51.5m) and Strategy Update

 

B.P. Marsh and Partners Plc (AIM:BPM), the specialist private equity investor
in early stage financial services businesses, is pleased to provide
shareholders with an update regarding the intended use of proceeds that it
expects to receive on the anticipated completion of the sale of its
shareholding in Kentro Capital Limited ("Kentro"), as announced on 23 May
2023, in the amount of £51.5m (the "Kentro Proceeds").

 

Subject to completion and receipt of the Kentro Proceeds, the Board is pleased
to confirm the following:

 

1)  Special dividend

A special dividend in respect of the current year of £1m in the aggregate,
representing 2.78p per share. Further information regarding the proposed
payment date will be announced in due course.

 

This special dividend equates to 1.9% of the Kentro Proceeds being returned to
shareholders.

 

2)  New dividend policy

In addition to the above, the Group announces its dividend policy for the
financial years 2024, 2025 and 2026, whereby its aspiration will be to
distribute an aggregate cash dividend of £2m each year for the three years.
These will be payable in two equal instalments in February and July of each
year commencing in the year beginning 1 February 2024, subject to Shareholder
Approval at the Company's Annual General Meeting each year.

 

This new dividend policy equates to a further 11.6% of the Kentro Proceeds
being returned to shareholders.

 

3)  Share buy-back policy

Additionally, the Group plans to commit a further £6m to share buy-backs,
with more information to follow in due course with regard to mechanics and how
best to deliver this.

 

This buy-back policy would equate to a further 11.6% of the Kentro Proceeds
being returned to shareholders.

 

The special dividend, further dividend policy and the new share buy-back
policy represents an intention to return up to a total of £13m in cash, or
25% of the Kentro Proceeds, to shareholders over the next three years.

 

For the avoidance of doubt, the Company still expects to recommend an
additional 1.39p per share (£0.5m) final dividend for the year ending 31
January 2023, as previously announced. This will be paid following
shareholders' approval at the Company's Annual General Meeting, expected to
take place in July 2023. As announced on 16 January 2023, the Group paid an
interim dividend for the year ending 31 January 2023 of 1.39p per share
(£0.5m) on 28 February 2023 to all shareholders on the register on 27 January
2023.

 

Ongoing Strategy

 

The Group has a stated objective, which is to make minority investments in
attractive opportunities in the financial services sector, and typically takes
an equity stake of between 15% and 45%.

 

The investment goal remains unchanged:

 

 •    identify businesses with strong management teams and good growth potential;
      and
 •    help fund, support, and develop these companies so they can deliver on growth
      opportunities.

 

The Group continues to see a high number of potential new business
opportunities, and received 60 new business enquiries in the year which ended
on 31 January 2023. This was an increase from 48 enquiries in the preceding
year. In view of the Group's favourable cash position, it remains ready to
take advantage of opportunities emanating from the financial services industry
generally, and the insurance market specifically.

 

Current opportunities under consideration include (but are not limited to) the
following:

 

 •    a start-up Underwriting Agency, looking to specialise in underwriting Marine
      insurance; and
 •    an established Insurance Broker, which specialises in insurance for High Net
      Worth clients and Fine Art & Specie business.

 

Given the potential opportunities in the Group's key market, and the track
record of Net Asset Value growth, the Board agrees that it is in the long-term
interests of shareholders to continue to develop the business and reinvest the
Kentro Proceeds into both its existing portfolio and into new ventures within
its investment criteria. This has been its philosophy since formation and
remains unchanged. This strategy will take place alongside a return to
shareholders, via the aforementioned increased dividends and share buy-backs.

 

The Group expects to make further investments over the course of its current
financial year to 31 January 2024.

 

The Group's Chairman, Brian Marsh OBE stated: "Following the expected
successful completion of the sale of Kentro, the Board is pleased to recognise
shareholder support through the proposed return of £1m to shareholders in the
form of a special dividend this year, and in a strengthened dividend policy
and share buy-back policy.

 

"The Group is well capitalised, debt free and has a strong pipeline of new
investment opportunities, alongside expectations of growth within the existing
portfolio, which underpin the Group's confidence in its ongoing strategy."

 

This announcement contains inside information.

 

For further information:

 

 B.P. Marsh & Partners Plc                          www.bpmarsh.co.uk (http://www.bpmarsh.co.uk/)
 Brian Marsh OBE                                    +44 (0)20 7233 3112

 Nominated Adviser & Broker

 Panmure Gordon
 Atholl Tweedie / Stephen Jones / Amrit Mahbubani   +44 (0)20 7886 2500

 Financial PR & Investor Relations
 Tavistock                                          bpmarsh@tavistock.co.uk
 Simon Hudson / Tim Pearson / Katie Hopkins         +44 (0)20 7920 3150

 

Results:

 

The Group will be announcing its Annual Results for the year ended 31 January
2023, on 13 June 2023.

 

There will be an analyst call on the day at 10:00am BST. Any analysts wishing
to join the call should register to receive an invitation by emailing
bpmarsh@tavistock.co.uk.

 

The Company will also provide a live presentation for all existing and
potential shareholders via the Investor Meet Company platform on 15 June 2023
at 11:00am BST.

 

Questions can be submitted pre-event via your Investor Meet Company dashboard
up until 09:00am BST the day before the meeting or at any time during the live
presentation. Investors can sign up to Investor Meet Company for free and add
to meet B.P. Marsh & Partners Plc via:

https://www.investormeetcompany.com/bp-marsh-partners-plc/register-investor
(https://www.investormeetcompany.com/bp-marsh-partners-plc/register-investor)
.

 

Investors who already follow B.P. Marsh & Partners Plc on the Investor
Meet Company platform will automatically be invited.

 

Notes to Editors:

 

B.P. Marsh's current portfolio contains fifteen companies. More detailed
descriptions of the portfolio can be found at www.bpmarsh.co.uk
(http://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 more
than ten years.

 

- Ends -

 

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