Specialist private equity investor B.P. Marsh & Partners Plc has reported that Net Asset Value increased to £189.5m in its final results on 31 January 2023, marking a 13.8% increase from £166.6m on 31 January 2022.
B.P. Marsh also recorded an increase in the equity value of its portfolio of £22.2m (19.1% increase adjusting for additions and disposals) from £149.3m to £171.5m.
According to the firm, this equates to an undiluted Net Asset Value per share of 526.2p (2022: 462.7p) or 516.8p on a fully diluted basis following the vesting of the shares in the Group’s Joint Share Ownership Plan (2022: 455.6p).
B.P. Marsh disclosed that its cash and treasury balance as of 31 January 2023 stood at £12.1m, an increase of £3.5m over the previous year, and as of the date of this announcement, is £5.2m due to further investment activity post-year-end.
The firm’s consolidated profit before tax was £27.6m, up from £19.4m at 31 January 2022. Meanwhile, it also saw an equity portfolio valuation increase of 19.1%.
As announced on 23 May 2023, B.P. Marsh agreed to the sale of its 18.7% shareholding in Kentro, the London-based insurance industry investment group, pursuant to an agreement by which Brown & Brown has agreed to acquire the entire issued share capital of Kentro.
Upon completion, B.P. Marsh expects to receive £51.5m in cash (net of all transaction costs), which is consistent with its valuation of the business.
Brian Marsh OBE, Chairman of B.P. Marsh commented, “The sale of our interest in Kentro, post year-end, for an expected £51.5 million validates both the strength of our long-term business model and our valuation methodology – producing a multiple on the equity investment at an exit price precisely in line with our valuation.
“This exit has enabled the Board to put in place a three-year strategy to return £13m to shareholders.”
Marsh continued, “The c.14% increase in NAV (net of dividend) 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.
“I look forward to reporting further progress for the current financial year, subject as always to the absence of major macro-economic shocks.”
B.P. Marsh suggests these results demonstrate the strength of its business model, which focuses on early-stage investment in the insurance intermediary market.
“This market continues to generate attractive opportunities for B.P. Marsh and our leading position within it means that we get first look at many such opportunities,” explains the firm.
It concludes, “B.P. 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.”
