Trading Update
14 February 2011
B. P. Marsh & Partners PLC
("B. P. Marsh", "the Company" or "the Group")
Trading Update
B.P. Marsh, a niche venture capital provider to early stage financial services businesses, is pleased to provide the market with an update on trading for the year ended 31 January 2011.
Since we reported our interim results on 28 October 2010, the investee companies within the Group's portfolio have continued to deal positively with both the challenges and opportunities presented by the current economic climate, and all are developing to the Board's satisfaction. As at the year end the Group had net cash of GBP0.5m (GBP 0.6m at 31 July 2010).
Hyperion Insurance Group Ltd ("Hyperion")
The Hyperion Insurance Group, in which the Group has a 19.5% stake, has reported a 26% growth in operating income to £72.2m in the year to 30 September 2010 (2009: £57.2m - restated for IFRS). Group EBITDA excluding non-recurring items was £12.0m, an increase of 41% (2009: £8.5m restated for IFRS).
Hyperion continues to grow significantly, and was nominated as one of the fastest growing companies in the UK in the Insurance Times annual Top 50 Brokers published in September 2010. On 30 September 2010 Hyperion announced that it had agreed to acquire the Accette Insurance Group ("Accette. The transaction completed in December 2010, subject to receiving regulatory approval. Accette is Asia's largest independent insurance broker, headquartered in Singapore and with offices in Hong Kong, Philippines, Indonesia, Malaysia and Thailand.
US Risk UK Ltd
The Group completed an investment in US Risk UK Ltd on 22 July 2010, acquiring a 30% stake for a cash consideration of £1,396,417. This most recent addition to the investment portfolio is beginning to develop, alongside the relationship with the Group's US investment partners, US Risk Inc.
Oxford Insurance Brokers Ltd ("Oxford"), the Lloyd's broker subsidiary of US Risk UK Ltd, has begun the process of recruitment of new individuals to advance its growth strategy and has made new hires in the Professional Indemnity division, considered to be a key area for development. Oxford is actively seeking to recruit other key individuals to develop existing markets and new areas of interest and the process of targeted expansion will continue during the year.
LEBC Holdings Ltd ("LEBC")
In common with other IFA and wealth management businesses, LEBC is preparing for the implementation of the Retail Distribution Review. This has given rise to a need for the group to realign itself within its chosen markets and review its operating model.
Following the production of a strategic marketing plan in July 2010, a concerted approach to marketing through the entire organisation has been adopted. LEBC has been clearly articulating the client propositions relevant to each area of operation. The marketing strategy will project these innovative divisional solutions into the market place so that the company can capitalise on any opportunities.
It remains a time of opportunity and challenge for LEBC, but the company's management are optimistic that they will achieve their objectives in the current year.
Summa Insurance Brokerage, SL
Summa, the Spanish insurance broker in which the Group holds a 48% interest, continues to target acquisitions within the Spanish regional insurance market and is beginning to emerge as an interesting new force within that national market.
New Business Opportunities
The Group's investment goal remains unchanged; to take minority positions in profitable businesses with strong management teams and good growth potential. The flow of opportunities from the London insurance market continues to be strong; however, the valuations put on these businesses are often prohibitive.
The forthcoming regulatory requirements of the Retail Distribution Review continue to cause movement and consolidation within the wealth management sector, resulting in a number of enquiries. The Group would be interested in reviewing more approaches to invest in fund management businesses, mindful that it will make any investments in the best interest of its shareholders.
Full Year Results
The Board expects to report the Group's results for the year ended 31 January 2011 on 1 June 2011..
For further information:
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B.P. Marsh & Partners Plc |
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Millie Kenyon |
+44 (0)20 7233 3112 |
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Nominated Adviser & Broker |
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Arbuthnot Securities |
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Nick Tulloch / Ben Wells / Ed Gay |
+44 (0)20 7012 2000 |
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This information is provided by RNS