Investee Company Update

RNS Number : 7549U

B.P. Marsh & Partners PLC

26 October 2017

 

Date:                            26^th October 2017                  

On behalf of:                 B.P. Marsh & Partners Plc

Immediate release

B.P. Marsh & Partners Plc

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

Investee Company Update - Nexus Underwriting Management Limited

B.P. Marsh & Partners Plc (AIM:  BPM), the niche venture capital provider to early stage financial services businesses, is pleased to note that its investee company Nexus Underwriting Management Limited ("Nexus"), in which it holds an 18.14% shareholding, has announced that it has completed the acquisition of Credit Risk Solutions Limited ("CRS"), the independent insurance intermediary specialising in trade credit insurance, across a number of different sectors. In 2017 CRS is forecasting to achieve Gross Written Premium of £20m, revenue of £3.2m and EBITDA of £1m.

This acquisition was funded via the previously announced loan facility provided by HPS Capital Partners. Of the Company's £4m facility, Nexus have £2m remaining undrawn.

CRS was founded in 2003, by its founding shareholders Mike Clark, Hayden Tennant and Lisa Humphreys and has offices in London, Manchester, Halifax, and Birmingham. CRS has grown to become one of the UK's leading specialist Trade Credit insurance intermediaries.

CRS is the fourth acquisition undertaken by Nexus in 2017, the first three being the marine cargo specialist Vectura Underwriting, the trade credit specialist Equinox Global and the U.S. based Reinsurance Underwriting Agency Zon Re, as have been previously reported by the Company.    

By way of background, since the Company's investment in 2014, Nexus has grown its Gross Written Premium from £56m in 2014 to an estimated £180m in 2017F, a forecast increase of 221%. In the same period, commission income has increased from £12.3m to an estimated £34m in 2017F, a forecast increase of 176%, and EBITDA has increased from £2.6m to an estimated £12m in 2017F, a forecast increase of 362%. The 2017 forecast figures include the acquisitions noted above, including CRS, on a full year basis.

Nexus' Chairman, Colin Thompson stated; "CRS is a very professionally run business that has been on a steep growth trajectory in recent years. We are excited to work with Mike, Hayden, Lisa and the whole CRS team to continue this success story in a market where we have a lot of expertise, and accelerate this growth via a buy and build strategy of regional trade credit brokers as well as add another a UK regional footprint to our existing UK and international infrastructure."

Daniel Topping, B.P. Marsh's Chief Investment Officer and the Company's nominee director on the Board of Nexus commented; "B.P. Marsh is pleased to see Nexus undertake this fourth acquisition in as many months. The acquisitions of CRS, alongside that of Equinox Global and Nexus' existing trade credit division has created an operating division which is one of the largest international trade credit underwriting agencies."

For further information:

B.P. Marsh & Partners Plc                                                               www.bpmarsh.co.uk

Brian Marsh OBE / Camilla Kenyon                                                     [phone]

Nominated Adviser & Broker

Panmure Gordon

Atholl Tweedie / Adam James / Charles Leigh-Pemberton                       [phone]

Notes to Editors:

About B.P. Marsh & Partners Plc

B.P. Marsh's current portfolio contains fifteen companies. More detailed descriptions of the portfolio can be found at www.bpmarsh.co.uk.

Since formation over 25 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 at least five years.

Prior to Brian Marsh's involvement in the Company, he spent many years in insurance broking and underwriting in Lloyd's as well as the London and overseas market. He has over 30 years' experience in building, buying and selling financial services businesses, particularly in the insurance sector.

Alice Foulk joined B.P. Marsh in September 2011 having started her career at a leading Life Assurance company. In 2014 she took over as Executive Assistant to the Chairman, running the Chairman's Office and established herself as a central part of the management team.

In February 2015 she was appointed as a Director of B.P. Marsh and a member of the Investment Committee. In January 2016 Alice was appointed Managing Director of B.P. Marsh.

In her position as Managing Director, Alice is responsible for the overall performance of the Company and monitoring the Company's overall progress towards achieving the objectives and goals of the Company, as set by the Board.

Dan Topping is the Chief Investment Officer of B. P. Marsh, having been appointed as a Director in 2011. He joined the Company in February 2007, following two years at an independent London accountancy practice. Dan is the Senior Executive with overall responsibility for the portfolio and investment strategy of B.P. Marsh.

Dan graduated from the University of Durham in 2005 and is a member of the Securities and Investment Institute and the Institute of Chartered Secretaries and Administrators.

Dan is a standing member of the B.P. Marsh Investment and Valuation Committees and currently serves as a Board Director across the portfolio.

Camilla Kenyon was appointed as Head of Investor Relations at B.P. Marsh in February 2009, having four years' prior experience with the Company. She was appointed to the main board in 2011.  Camilla is Chair of the New Business Committee evaluating new investment opportunities. She has a number of nominee directorships over two investee companies and is a standing member of the Investment Committee. She is a Member of the Investor Relations Society.

Jonathan Newman is a Chartered Management Accountant and is the Group Director of Finance and has over 17 years' experience in the financial services industry. Jon graduated from the University of Sheffield with an honours degree in Business Studies and joined the Group in November 1999, following two years at Euler Trade Indemnity and two years at a Chartered Accountants. Jon is a Member of the Chartered Global Management Accountants, the Chartered Management Accountants and the Chartered Institute of Securities and Investment.

Jon was appointed a Director of B.P. Marsh & Company Limited in September 2001, and Group Finance Director in December 2003 and was instrumental in the admission of the Group to AIM in February 2006. Jon is a member of the B.P. Marsh Investment and Valuation Committees and currently serves as a Board Director for Walsingham Motor Insurance Limited, and provides senior financial support and advice to all companies within the Group's portfolio as well as evaluating new investment opportunities.

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