Business
Use of Proceeds of Sale & Strategy Update
Use of Proceeds of Sale & Strategy Update.
About this update from B.p. Marsh & Partners Plc
[{"type":"text","content":"\n\n6 June 2023\n \nB.P. Marsh & Partners Plc\n(\"B.P. Marsh\", the \"Company\" or the \"Group\")\n \nUse of Proceeds of Sale (£51.5m) and Strategy Update\n \nB.P. Marsh and Partners Plc (AIM:BPM), the specialist private equity investor in early stage financial services businesses, is pleased to provide shareholders with an update regarding the intended use of proceeds that it expects to receive on the anticipated completion of the sale of its shareholding in Kentro Capital Limited (\"Kentro\"), as announced on 23 May 2023, in the amount of £51.5m (the \"Kentro Proceeds\").\n \nSubject to completion and receipt of the Kentro Proceeds, the Board is pleased to confirm the following:\n \n1) Special dividend\nA special dividend in respect of the current year of £1m in the aggregate, representing 2.78p per share. Further information regarding the proposed payment date will be announced in due course.\n \nThis special dividend equates to 1.9% of the Kentro Proceeds being returned to shareholders.\n \n2) New dividend policy\nIn addition to the above, the Group announces its dividend policy for the financial years 2024, 2025 and 2026, whereby its aspiration will be to distribute an aggregate cash dividend of £2m each year for the three years. These will be payable in two equal instalments in February and July of each year commencing in the year beginning 1 February 2024, subject to Shareholder Approval at the Company's Annual General Meeting each year.\n \nThis new dividend policy equates to a further 11.6% of the Kentro Proceeds being returned to shareholders.\n \n3) Share buy-back policy\nAdditionally, the Group plans to commit a further £6m to share buy-backs, with more information to follow in due course with regard to mechanics and how best to deliver this.\n \nThis buy-back policy would equate to a further 11.6% of the Kentro Proceeds being returned to shareholders.\n \nThe special dividend, further dividend policy and the new share buy-back policy represents an intention to return up to a total of £13m in cash, or 25% of the Kentro Proceeds, to shareholders over the next three years.\n \nFor the avoidance of doubt, the Company still expects to recommend an additional 1.39p per share (£0.5m) final dividend for the year ending 31 January 2023, as prev...