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BP Marsh posts rise of over 8% in net asset value to £155mn

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Investment company BP Marsh has reported net asset value (NAV) of £155mn ($213.5mn) for the six months to 31 July, an 8.7% increase year on year.

The group also announced a refinancing for one of its investee companies, retail and wholesale Lloyd’s broker CBC UK.

BP Marsh’s NAV per share for the half was 430.4p, up 8.6% on the prior-year period, while consolidated pre-tax profit for the six months was £6.2mn, down 4.6% year on year.

The company said this growth emanated from around 70% of the portfolio, mainly from Nexus Underwriting Management, which comprises 28% of BP Marsh’s portfolio, and Walsingham Motor Insurance.

Earlier this month, BP Marsh increased its stake in Nexus to 19% as the MGA also secured new funding from Barings.

The group reported total shareholder return for the half of 4%, including a dividend of 9.3% paid in July for the prior 12 months.

CBC, which BP Marsh supported through a management buyout in 2017, has secured a £3mn financing facility from Coutts, of which it will use £2mn to repay part of £5.1mn loan provided by BP Marsh.

The remaining £1mn will be used to fund CBC’s ongoing growth.

As of 31 July 2021, BP Marsh’s 47.1% stake in CBC was valued at £7.5mn, representing an internal rate of return of 30.9% over the period of its investment so far.

CBC chairman Andrew Wallas said: “The ability for CBC to secure outside debt funding from such a respected institution indicates the development and strength of the business since BP Marsh first invested back in February 2017.

“With the ongoing support of our partners, existing and new, we are confident that CBC will continue on its growth trajectory over the coming years.”

BP Marsh CIO Dan Topping said: “BP Marsh was delighted to be able to introduce CBC to Coutts.

“This is part and parcel of our investment ethos and an example of how we support portfolio companies as they go through their various stages of development.”

On the broader BP Marsh results, company chairman Brian Marsh said: “This is a good set of results for the company, and the continuation of a long trend of strong portfolio growth.

“We continue to believe in our strategy of investing in people with ambition, and a track record of delivering within their sectors, and this again has been borne out by these results.

“Looking forward, we continue to seek investment opportunities into new businesses, to diversify our portfolio further, and increase investor returns.”

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