BP Marsh reports strong year of trading

Venture capital investor BP Marsh reported several significant milestones in a trading update on Monday, having disposed of three investments in the financial year just ended for a total upfront cash consideration of £93.3m.

The AIM-traded firm said three new investments were also made in the 12 months ended 31 January, namely Ai Marine Risk, Pantheon Specialty and Verve Risk Services.

Group funds as of the end of January stood at £40.5m - a substantial increase from £12.1m reported a year earlier.

BP Marsh also announced the distribution of £6m in dividends over the next three years, marking a considerable increase compared to its previous dividend policies.

Furthermore, the company outlined its intention to double its annual dividend payments to £4m per year for the financial years ending 2024, 2025, and 2026.

The company also provided insights into its share buy-back programme, highlighting successful acquisitions totalling £1m, executed at a significant discount to the net asset value.

Additionally, plans for further allocation of funds to an ongoing share buy-back programme were confirmed.

Regarding specific investments, BP Marsh disclosed the successful sale of its stake in Paladin Holdings, resulting in expected cash receipts of at least £47.7m.

The transaction, along with other disposals, underscored the company's ability to generate substantial returns on investments.

Moreover, the company highlighted the performance of its new investments, with Ai Marine, Pantheon and Verve demonstrating promising performance.

“The ongoing consolidation trends in the insurance market show no indication of abating in 2024,” the board said of the company’s outlook.

“Such activity remains a catalyst for substantial prospects for the group, both in terms of new investments and activity within our core portfolio.

“Both the group and its portfolio companies continue to be approached by entrepreneurial individuals and teams who do not wish to be part of this consolidation process.”

At 1522 GMT, shares in BP Marsh & Partners were up 4% at 480p.

Reporting by Josh White for Sharecast.com.