The financial highlights for the Period are:
· Net Asset Value (“NAV”) up 4.3% to £73.8m
· NAV per share up to 253p (31 Jan 2016: 243p, 31 July 2015: 225p)
· 5.8% total shareholder return (including Dividend of 3.42p per share paid July 2016)
· Profit after tax up 19.5% to £4.0m (31 July 2015: £3.4m)
· Current uncommitted cash balance of £7.9m
· Dividend of 3.76p per share recommended for year to 31 January 2017
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 2016.
In the midst of various uncertainties, including the result of the EU Referendum and global economic concerns, the Company and its portfolio of investments continue to perform in line with our expectations. The results for the Period illustrate our continuing progress and development.
The six months have resulted in an increase of 8.7% in the Equity value of the Portfolio.
The Group has increased its NAV to £73.8m (253p per share), with an average annual compound NAV growth rate of 11.3% achieved since 1990.
During the Period we continued our geographic expansion, with the completion of a new investment in Asia Reinsurance Brokers, headquartered in Singapore and with five offices throughout the region.
Our South African investments, from small beginnings, are starting to grow and we were pleased to acquire an additional 22% in PLUM, the Johannesburg-based Managing General Agent (“MGA”) on 5 October 2016.
Also within the existing portfolio we purchased an additional 8% of the share capital of LEBC Holdings Limited (“LEBC”), taking our total holding to 43%. The Group considers LEBC to be a company at an exciting stage of development, in an increasingly active market.
Besso Insurance Group Limited (“Besso”) continues its strong performance and to build on its market position.
The Group has a healthy cash balance of £7.9m available to invest and is in advanced discussions on several new opportunities that fall within our heartland of interest in Financial Services. We continue to look at ways to expand geographically, whilst following our principle of doing so in territories with a robust regulatory environment and where we see good opportunities for development by offering a partnership to businesses that would benefit from an experienced London-based investor.
We have been taking steps in recent years to reduce the discount to Net Asset Value that we have historically traded at and it is gratifying to note this has now reduced to around 20% at the time of writing, having been as much as 45% in 2012.
The Board has continued to try to strike a balance between utilising cash to invest in its existing portfolio and new opportunities and providing investors with a modest but meaningful yield. Following the realisation of the Group's remaining 1.6% stake in Hyperion and receipt of £7.3m cash in July, the Board recommended a dividend of 3.76p per share for the year ending 31 January 2017, with the aspiration to at least maintain this in the following two years.