B.p. Marsh & Partners Plc · LSE:BPM
B.p. Marsh & Partners — H1 2011 Earnings Presentation
24 slides from B.p. Marsh & Partners's earnings presentation, October 2011
Slide 1: B.P. Marsh & Partners Plc Interim Results
B.P. Marsh & Partners Plc Interim Results For the six months to 31 July 2011 Brian Marsh OBE, Chairman Jonathan Newman, Group Finance Director Camilla Kenyon, Investment Director Daniel Topping, Investment Director October 2011
Slide 2: Overview
Overview Niche Venture Capital provider focused on minority investments in financial services businesses, typically taking an equity stake of between 15% and 45% Geographic focus on UK, but also considers opportunities in EU and North America Established in 1990 with funding of £2.5m – 31 inve
Slide 3: Financial Highlights – Period Ended 31 July 2011
Financial Highlights – Period Ended 31 July 2011 NAV of £48.5m (31January 2011: £46.5m, 31 July 2010: £44.9m) NAV per share 166p (31 January 2011: 159p, 31 July 2010: £153p)* Currently trading at a 46.4% discount to NAV Consolidated profit after tax £2.0m (31 January 2011: £2.6m, 31 July 201
Slide 4: Performance: Net Asset Value (NAV)
Performance: Net Asset Value (NAV) 48.5 50 46.5 44.2 44.9 40.6 42.7 40 30 £ Millions 22.1 20 8.7 10 4.8 2.5 0 31st Jan 31st Jan 31st Jan 31st Jan 31st Jan 31st July 31st Jan 31st July 31st Jan 31st July 90 95 99 05 07* 09 10 10 11 11 YEAR ENDED NET OF DEFERRED TAX YEAR ENDED SIX MONTHS ENDED * NB: T
Slide 5: 2007-2011: Resilient Net Asset Value (NAV)
2007-2011: Resilient Net Asset Value (NAV) 5
Slide 6: NAV Performance Attribution
NAV Performance Attribution 6
Slide 7: Key Portfolio Valuation Movements
Key Portfolio Valuation Movements Com pa ny R ea s on for Cha nge V a lua tion m ovem ent in 6 m onths (£ ’0 0 0 ) Increase due to re-valuation of 11.3% additional equity Besso Insurance Group Limited * 217 acquired 2010 increased revenue by 26% to £72.2m and EBITDA Hyperion Insurance Group Limited
Slide 8: Investments made in six months to 31 July 2011
Investments made in six months to 31 July 2011 Besso Insurance Group Limited In April 2011 a consortium including Michael Wade and the Group agrees to acquire Wells Fargo’s 38% shareholding in Besso Michael Wade appointed Chairman and acquires 15% of the equity The Group acquires a further 1
Slide 9: Outlook
Outlook The Group is uniquely placed to take advantage of the ‘Equity Gap’ The Group continues to seek investment opportunities in high growth businesses within niche sectors RDR creating significant momentum in IFA sector Increased levels of M&A activity in the insurance sector resulting in
Slide 10: Summary
Summary Summary NAV proving to be resilient even in uncertain economic conditions 90% of portfolio by value in insurance broking or related activities BP Marsh is not subject to the limitations of a closed fund, such as asset redemption pressures Cash position at 31 July 2011 of £0.4m The
Slide 11: Appendices
Appendices Management Team Board Members Minority Investor Protections Adding Value Exit Strategy Current Portfolio Financials Major Shareholders Contacts 11
Slide 12: Management Team
Management Team 50 years’ experience in insurance broking and Executive Chairman underwriting. 1979-1990 was chairman of the Nelson Hurst & Marsh Group. More than 30 years’ experience Brian Marsh OBE building, buying and selling financial services businesses particularly in the insurance sector. Cha
Slide 13: Board Members
Board Members Over 15 years’ experience in the financial services Non-Executive Director industry. Having joined the Company in 1994 she was made Managing Director in March 2002. Natasha is still Natasha Dunbar involved in aspects of the operational side of the business and works closely with Brian
Slide 14: Minority Investor Protections
MinorityInvestor Minority InvestorProtections Protections B.P. Marsh’s position is well protected and portfolio investments are actively monitored. It has the following investor safeguards in place: Board meetings are held frequently and at least every three months; Timely management accounts
Slide 15: Adding Value
Adding Value Representation at Board level Guidance on strategy and development Market intelligence and contacts to develop customer base / strategic alliances Provision of follow-on funding Identify exit path and potential acquirers 15
Slide 16: Exit Strategy
Exit Strategy Exit considered on entry Patient development to achieve full earning potential Recognise and act on opportunistic situations Deal size favours acquisition by large financial services firms 16
Slide 17: Current Portfolio
Current Portfolio Amberglobe Limited - 49% March 2008 invested in Amberglobe Ltd Start-up, financing ex-managing director of Dipford plc Company is a business sales platform, providing valuation and negotiation services for the sale of SME businesses in the sub £3m sector Besso Insurance Group
Slide 18: Current Portfolio cont.
Current Portfolio cont. Paterson Squared LLC - 22.5% Founded in September 2008 after its separation from Paterson Martin Limited The team use sophisticated modelling techniques to assess risk, with a view to providing counter-party risk and transaction advice Portfolio Design Group International
Slide 19: Investments at July 2011
Investments at 31 July 2011 Consolidated Cash Flow Investment Activity Cost of Fair market Equity % Year of Movement investment value initial in 6 month (£’000) investment period 31.07.11 (£’000) (£’000) Amberglobe Limited Business sales platform 98 98 49% 2008 - Besso Insurance Group Limited Insura
Slide 20: Consolidated Statement of Financial Position (IFRS)
Consolidated Statement of Financial Position (IFRS) Consolidated Balance Sheet at 31 July 2011 Unaudited 6 Audited Unaudited 6 months to Year to months to 31 July 2011 31 Jan 2011 31 July 2010 £’000 £’000 £’000 Tangible assets 24 33 36 Investments at fair value 48,692 47,143 45,578 Debtors / Loans r
Slide 21: Consolidated Statement of Comprehensive Income
Consolidated Statement Consolidated of Comprehensive Income StatementIncome (IFRS) (IFRS) to 31 July 2011Income Statement to 31 July 2007 Unaudited 6 Audited Unaudited 6 months to Year to months to 31 July 2011 31 January 31 July 2010 2011 £’000 £’000 £’000 Gains on Investments (Realised and Unreali
Slide 22: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows (IFRS) at 31 Consolidated July 2011 Cash Flow Unaudited 6 Audited Unaudited 6 months to 31 Year to months to 31 July 2011 31 Jan 2011 July 2010 £’000 £’000 £’000 Net cash (used by) / from operating activities (51) 114 (411) Taxation - - - Purchase of Property, pl
Slide 23: Key Shareholders
Key Shareholders Directors – Brian Marsh OBE - 59.1% – Natasha Dunbar - 4.9% Major Shareholders (>3%) – SVM Asset Management Limited – Gartmore Investment Management – AXA Framlington – The Stephen Crowther Trust – Sanlam Asset Management (Ireland) 23
Slide 24: Contacts
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 7459 3600 Financial PR Redleaf Polhill Telephone: 020 7566 6720 24
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