The financial highlights for the Period are:
· Net Asset Value (“NAV”) at 31 July 2018 of £120.1m (31 July 2017: £88.8m)
· NAV per share of 333p (31 Jan 2018: 339p, adjusted NAV post July 2018 Placing: 321p)
· 6.7% increase in the equity value of the portfolio in the Period
· Increased final dividend of 4.76p per share for the year to 31 January 2018 declared and paid in July 2018
· 6.4% total shareholder return in the period
· Intended dividend of at least 4.76p per share for the current year ending 31 January 2019
· Dividend covered 7 times by uncommitted cash as at 15 October 2018
· £16.6m cash raised (after costs) in Placing and Open Offer completed in July 2018
· Cash and treasury funds balance of £15.4m, of which £15.1m uncommitted at 31 July 2018
· As at 15 October 2018 uncommitted cash of £12.7m available for investment
Chairman's Statement
I am pleased to present the unaudited Consolidated Financial Statements of B.P. Marsh & Partners Plc for the six month period to 31 July 2018.
Our NAV has increased to £120.1m from £88.8m as at 31 July 2017 including £16.6m raised from the Placing and Open Offer in July 2018. This represents a NAV per share of 333p (31 Jan 2018: 339p; adjusted NAV post July 2018 Placing: 321p). The Group's NAV performance during the Period is in line with the 11.9% annual compound growth in the NAV excluding all new funds raised since inception. Our unaudited profit after tax in the Period was £6.3m, compared to £10.2m in the six months to 31 July 2017. The comparable profit after tax number at our Interim results in 2017 included a significant unrealised gain on equity investment (£5.7m) relating to the revision of the Company's valuation methodology for LEBC Holdings to reflect LEBC Holdings's strong growth during that period.
Following the Placing and Open Offer the Company is entering a new phase of development, with a strategic investor, PSC Insurance Group taking a 19.6% shareholding. We continue to preside over a diverse portfolio with several strong performers and a healthy current uncommitted cash balance of £12.7m for future investment in the existing portfolio as well as new opportunities.
The Board is pleased to note the increase in NAV of 4.7% (excluding the proceeds raised from the Placing and Open Offer) and the 6.7% increase in the equity value of the portfolio during the Period.
Delivering returns to our shareholders continues to drive all that we do and I am pleased to report a 6.4% total shareholder return for the Period. We have already noted our intention to pay a dividend of 4.76p for the year ending 31 January 2019, subject to ongoing review and approval by the Board and Shareholders.
We continue to strike a balance between providing a dividend yield to investors and using available funds to invest in opportunities to generate long-term capital growth. We continue to see a healthy flow of new investment opportunities, with 32 received in the interim period and one completed, namely ATC Insurance Solutions of Melbourne, Australia. We are known for being patient in our consideration of new investments and we maintain this measured approach.
From a wider perspective, we continue to watch global political developments, including the UK's exit from the European Union, with the reassurance that the geographic spread of the portfolio provides sufficient diversification to minimise any consequential impact.
Outlook and New Business Opportunities
During the six-month period the Group has seen a strong flow of new investment opportunities, both in the UK and internationally. Discussions are ongoing on a number of these.
During the Period the Group reviewed 32 opportunities, of which 41% were insurance intermediaries, 9% insuretech, 19% wealth management, 22% fintech and 9% fell outside the Group's investment criteria. By way of comparison, during the interim period to 31 July 2017 the Group reviewed 38 new opportunities.
Brian Marsh OBE, Chairman
16 October 2018