Highlights
– New investments – CBC UK Limited and XPT Group LLC
– Increased shareholding in LEBC Holdings Limited
– Disposals – Besso Insurance Group Limited and Trireme Insurance Group Limited
– Follow-on funding provided to Nexus
– Dividend of 3.76p per share announced for year ending 31 January 2018
– Strong opportunity pipeline
– £13.2m net cash available
– Appointment of Nicholas Walker as Non-Executive Director
Dividend
The Board has recommended a dividend of 3.76 pence per share (£1.1m) for the financial year ending 31 January 2018 payable in July 2018.
The Board aims to find a balance between utilising cash to invest in the existing portfolio and new opportunities, with providing investors with a healthy but sustainable yield. It is the Board's aspiration to continue to maintain a dividend of at least 3.76p per share for the year ending 31 January 2019, subject to ongoing review and approval by the Board and the Shareholders.
New Business Opportunities and Outlook
During the six-month period the Group has continued to see a strong flow of new investment opportunities, both in the UK and internationally, and discussions are ongoing on a number of these.
At the present time both the MGA and broking sub-sectors are producing good potential deal flow in quality businesses in the insurance market. The increase in the Group's top limit of first round investment funding from £3m to £5m, announced in February, has had a positive impact by widening the Group's sphere of opportunity.
North America continues to be an area of focus, where the Group sees considerable opportunity for insurance businesses to develop with its input and experience in the London market.
On the wealth management side, the Group continues to be interested in businesses with ambitious and capable management teams, whether IFAs, fund managers or other intermediaries.
The Group continues to see opportunity inflow from the fintech sector, however, has yet to find one that would fit with the Group's investment model and expertise.
The impact caused by Hurricane Harvey, the first major storm to hit the US in over a decade, at the end of August is still being measured, with latest estimates of industry insured losses ranging from $10bn-30bn. The Group's portfolio of insurance intermediary businesses is not exposed to insurance risk and should benefit from the adjustment to risk pricing that typically follows such an event.
Interim Results
The Group expects to report the results for the six months to 31 July 2017 on Tuesday 17 October 2017.