-Full year results ahead of expectations
-Creating value through disposals
-Strong cash position and interesting pipeline of new investments
Shares in AIM listed insurance and private equity investor B.P. Marsh (BPM:AIM) edged 0.3% higher on Monday following the announcement of full year results that were ahead of expectations.
The group delivered a net asset value of £166.6 million, an increase of 11% on last year. The figure was marginally ahead of consensus expectations.
Profit of £17.5 million represented a 27% rise on a year-on-year basis, and was approximately 10% ahead of consensus estimates.
The current cash balance stands at an all time high of £17.5 million. The dividend has been increased by 13.9% to 2.78p per share.
REALISING VALUE THROUGH DISPOSALS
B.P. Marsh has made three disposals each at or in excess of the most recent published valuation (31 July 2021).
In March 2022, the Group sold its 77.25% holding in Summa to Acrisure España S.L., part of Acrisure LLC, the global financial services business.
The Group received net equity of £8.1 million, delivering an internal rate of return of 5.5%.
In December 2021, the Group sold its 40.5% stake in Walsingham to Humn.ai Limited, a London-based insurance provider producing real-time data-driven fleet insurance, for cash consideration of £4.7 million.
This disposal generated a 23% uplift over the last published valuation in July 2021 and represented an 8x money multiple and an internal rate of return of 22% (inclusive of all income and fees).
In August 2021, the Group sold its 40% equity stake in MB for AUD$6.8 million (£3.6 million) to ATC, in which the Group is also a shareholder.
The acquisition by ATC valued 100% of MB at AUD$17.0 million (£9.0 million), representing a circa 20% uplift over the Group's published valuation of MB as at 31 January 2021.
STRONG CASH POSITION AND DEAL PIPELINE
Chief investment officer Dan Topping commented:
'The Group has a healthy pipeline of new business opportunities with a renewed focus on new business following the major shock of Covid-19. Our prudent approach over the past two years and focus on the existing portfolio now means that the Group has the ability to focus on seeking out new investment opportunities, something made easier by the removal of many travel restrictions and the return to more regular business practices globally’.
