B.p. Marsh & Partners Plc · LSE:BPM
B.p. Marsh & Partners — H1 2017 Earnings Presentation
32 slides from B.p. Marsh & Partners's earnings presentation, Oct 18, 2016
Slide 1: Interim Results
Interim Results For the period ended 31 July 2016 Camilla Kenyon, Director & Head of Investor Relations Dan Topping, Chief Investment Officer Jonathan Newman, Group Finance Director 18 October 2016
Slide 2: Overview
Overview 25+ Years strong Specialist invested in 42 companies Robust balance sheet PE/VC investor in Financial Services intermediaries and realised 30 since 1990 £7.9m cash as at 31 July 2016 Industry knowledge Up to £3.5m per investment Long-term view Significant, specialist experience and deep sec
Slide 3: 2016 Summary – Period End 31 July 2016
2016 Summary – Period End 31 July 2016 • As at 31 July 2016 – twelve investments in portfolio • Equity Portfolio increase of 25.4% since • Dividend of 3.42p per share declared for the with a NAV of £73.8m (31 July 2015 £65.5m), with 31 July 2015 year ended 31 January 2016, paid in July an average ho
Slide 4: Performance: Net Asset Value (NAV)
Performance: Net Asset Value (NAV) Year ended : Net of deferred tax 80 70.81 73.85 70 62.97 65.50 Year ended 58.90 59.84 Six months ended 55.50 £ Millions 60 50 44.17 40.61 40 30 22.10 20 10 * NB: The valuation at 0 31-Jan-05 31 Jan 31-Jan-10 31-Jan-13 31-Jan-14 31-Jul-14 31-Jan-15 31-Jul-15 31-Jan-
Slide 5: Dividends
Dividends • Dividends declared, paid and intended, are shown below £1,200,000 £2.00 £1.93* £1.80 £1.47 £1,000,000 £1.60 £1.40 £1.35 £1.40 Paid £800,000 £1.25 £1.20 Intended £0.93 £0.95 £600,000 £1.00 Share Price at £0.80 Period end £400,000 £0.60 £290,000 £290,000 £365,000 £800,000 £800,000 £1,000,0
Slide 6: Growth Strategy
Growth Strategy BP Marsh cash Our goal is to be the early stage capital provider Up to £3.5 m initially of choice to the financial services sector. We apply our sector expertise to source attractive long-term investment opportunities both in the Invest Take minority equity positions in promising ear
Slide 7: Investments
Investments Movement in 6 % Movement in 6 Cost of equity Fair market value Year of initial Investment Sector Equity months to 31 July months to 31 July investment (£’000) 31 July 2016 (£’000) investment 2016 (£’000) 2016 Besso Insurance Broking 4,409 21,698 42.02%* 1995 1,978 10% Summa Insurance Bro
Slide 8: Specific Activity within the Portfolio During the Period (I)
Specific Activity within the Portfolio During the Period (I) • Acquisition of a further 8.03% stake in LEBC completed in June 2016 • In June 2016, Nexus acquired 100% of the Hong Kong domiciled marine Managing General Agent, Beacon Underwriters Limited (Beacon) • The additional stake, for considerat
Slide 9: Specific Activity within the Portfolio During the Period (II)
Specific Activity within the Portfolio During the Period (II) • Besso, one of the top 20 independent Lloyd's brokers, has continued to perform • The Group’s investments in South Africa, Bastion Re, PLUM, and Bulwark, well in the current market place and has recently announced its results for the con
Slide 10: Specific Activity New Investment
Specific Activity New Investment NEW INVESTMENT • Acquisition of 20% of Asia Reinsurance Brokers (Pte) Limited in April 2016 • Singapore headquartered independent specialist reinsurance and insurance risk solutions provider • Specialises in the provision of long-term reinsurance and insurance soluti
Slide 11: International Strategy
International Strategy Summa Insurance Brokerage S.L. UK Based Investments B.P. Marsh’s international strategy is focused on those areas where we see sufficient opportunity for business development in partnership with a London-based investor coupled with a suitably developed regulatory and complianc
Slide 12: Investment Opportunities
Investment Opportunities RECENT AND CURRENT PROJECTS: • Investment opportunities in financial services intermediaries up to £3.5m (equity & • MGAs – operating in niche specialisms, both start-ups and growth debt), minority positions (20-40%) businesses • Specialists in early-stage finance to ambitio
Slide 13: Investment Opportunities
Investment Opportunities • 45 new investment enquiries received in the period to 31 July 2016 ( 71 in year to 31 January 2016, 30 in period to 31 July 2015) • 45% of investments continued to NDA stage and 28% to detailed investigations (33% out of 30 enquiries in previous year continued to detailed
Slide 14: Investment Process
Investment Process •Strong network of industry contacts brings us new opportunities •Each investment opportunity is scrutinised by the New Business Department •Suitable opportunities are then referred to be considered by the New Business Committee Initial Assessment •Next stage is for the opportunit
Slide 15: Adding Value Exit Strategy
Adding Value Exit Strategy Value creation driven by partnering with ambitious entrepreneurs seeking a partnership to Long-term investors provide growth capital and access to a team with a deep knowledge base in mergers, acquisitions, business sales, business growth and transformation, as well as the
Slide 16: Investments Financial Highlights – Period Ended 31 July 2016
Investments Financial Highlights –Period Ended 31 July 2016 • NAV of £73.8m, up 4.3% for the Period and 12.7% for the year (31 January 2016: £70.8m, 31 July 2015: £65.5m) * • NAV per share of 253p (31 July 2015: 225p, 31 January 2016: 243p) • Consolidated profit after tax £4.0m, up 19.5% for the Per
Slide 17: Investments Financial Highlights – Period Ended 31 July 2016
Investments Financial Highlights –Period Ended 31 July 2016 • Average compound NAV growth of 11.3% p.a. since 1990 (excl. £10.1m raised on flotation)* • Final Dividend of 3.42p per share declared (£1m) and paid on 29 July 2016 • Total Shareholder return of 5.8% for the Period • Dividend of 3.76p per
Slide 18: Cash Position
Cash Position £5.3m Cash at 1 Feb 2016 (£1.8m Cash, £3.5m Treasury Funds) Equity Investments £(3.5)m Proceeds from disposal of Investments £8.7m Loans granted £(0.2)m Loans repaid £0.4m Dividend paid £(1.0)m £9.7m Cash at 31 July 2016 (£4.6m Cash, £5.1m Treasury Funds) 18
Slide 19: Summary
Summary • Group believes the six-month performance is solid • NAV increase of 4.3% since 31 January 2016, and 12.7% since 31 July 2015 • Final Dividend of 3.42p per share declared and paid in July 2016 • Total Shareholder return for the Period of 5.8% • Dividend of 3.76p announced for current financ
Slide 20: Appendices
Appendices 1. Management Team 2. Board Members 3. Portfolio 4. Minority Investor Protections 5. Financials 6. Major Shareholders 7. Contacts 20
Slide 21: Management Team
Management Team Brian Marsh OBE Alice Foulk BA (Hons) Dan Topping ACIS MCSI Executive Chairman Managing Director Chief Investment Officer 50 years’ experience in insurance broking and underwriting. Alice Foulk joined B.P. Marsh in September 2011 having Dan joined B.P. Marsh in February 2007, followi
Slide 22: Management Team
Management Team Camilla Kenyon Jonathan Newman ACMA CGMA MCSI Director, Head of IR Group Finance Director Camilla Kenyon was appointed as Head of Investor Relations Jon is a Chartered Management Accountant with over 19 at B.P. Marsh in February 2009, having four years’ prior years’ experience in the
Slide 23: Board Members
Board Members Campbell Scoones Stephen Clarke FCA Pankaj Lakhani FCCA Non-Executive Deputy Chairman Non-Executive Director Non-Executive Director Campbell Scoones has over 45 years' experience in the A Chartered Accountant, Stephen gained many years’ A Certified Accountant, Pankaj Lakhani has over 4
Slide 24: Portfolio as at 31 July 2016
Portfolio as at 31 July 2016 Bastion Reinsurance Brokerage (PTY) • The Group invested in December 2014 Limited – 35% • Bastion specialises in the provision of reinsurance solutions over a number of complex issues, engaged by various insurance companies and managing general agents • February 1995 the
Slide 25: Portfolio as at 31 July 2016 Continued
Portfolio as at 31 July 2016 Continued MB Prestige Holdings • December 2013 invested in MB Limited – 40% • MB is a MGA, headquartered in Sydney, Australia, recognised as a market leader in respect of prestige motor vehicle insurance in all mainland states of Australia • Invested in August 2014 Nexus
Slide 26: Portfolio as at 31 July 2016 Continued
Portfolio as at 31 July 2016 Continued • January 2005 the Group provided finance to a Spanish management team with the objective of acquiring and consolidating regional insurance brokers in Spain Summa Insurance Brokerage, S.L. – • Summa has acquired brokers all over Spain, now has over 20 offices a
Slide 27: Minority Investor Protections
Minority Investor Protections • The Group believes that day-to-day operational control of the business is the domain of the executive management team. However, the Group’s position is well protected and portfolio investments are actively monitored • The Group outlines from investment the number of m
Slide 28: Consolidated Statement of Financial Position (IFRS) at 31 July 2016
Consolidated Statement of Financial Position (IFRS) at 31 July 2016 Unaudited 6 months to Unaudited 6 months to Audited Year to 31 July 2016 £’000 31 July 2015 £’000 31 January 2016 £’000 Tangible assets 12 15 15 Investments at fair value – Equity Portfolio 53,109 44,585 54,051 Debtors / Loans recei
Slide 29: Consolidated Statement of Comprehensive Income (IFRS) at 31 July 2016
Consolidated Statement of Comprehensive Income (IFRS) at 31 July 2016 Unaudited 6 months to Unaudited 6 months to Audited Year to 31 July 2016 £’000 31 July 2015 £’000 31 January 2016 £’000 Gains on investments (realised and unrealised) 4,251 3,778 10,275 Impairment of investments and loans - - - Op
Slide 30: Consolidated Statement of Cash Flows (IFRS) at 31 July 2016
Consolidated Statement of Cash Flows (IFRS) at 31 July 2016 Unaudited 6 months to Unaudited 6 months to Audited Year to 31 July 2016 £’000 31 July 2015 £’000 31 January 2016 £’000 Net cash used by/from operating activities (278) 186 349 Taxation - 201 201 Purchase of property, plant and equipment (1
Slide 31: Key Shareholders at 31 July 2016
Key Shareholders at 31 July 2016 DIRECTORS • Brian Marsh OBE - 57.4% • B.P. Marsh Management Limited – 4.86%* • Daniel Topping – 0.12% • Campbell Scoones Less than 0.1% each • Pankaj Lakhani * The Executive Directors hold the following beneficial joint interests in Ordinary Shares, held together wit
Slide 32: Contacts
Contacts B.P. Marsh & Partners PLC 2nd Floor 36 Broadway London SW1H 0BH Telephone: 020 7233 3112 Website: www.bpmarsh.co.uk Nominated Adviser & Broker Panmure Gordon & Co Telephone: 020 7886 2500 Financial PR Redleaf Communications Telephone: 020 7382 4730 32
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