Highlights
– Placing and Open Offer completed
– PSC Insurance Group Limited a new 19.6% investor
– £17m cash raised (before costs)
– New investment in ATC Insurance Solutions PTY Limited
– Strong opportunity pipeline
– £14.5m net cash available
In July 2018 the Group completed a successful Placing and Open Offer, as a result of which a new investor, PSC Insurance Group Limited (“PSC”) (via its subsidiary PSC UK PTY Limited) became a 19.6% shareholder in the Company and delivered £17m in cash (before expenses) to the Company.
The completion of this transaction represents the beginning of a new phase of development for the Company, having passed the £100m market capitalisation level for the first time and re-ordered the shareholder base, with Brian Marsh's holding having reduced to 44%, and with healthy cash reserves for developing the portfolio and for new opportunities. The Group is encouraged to have a new substantial shareholder that understands its business and with which there are possibilities for future joint working.
The Company's investment portfolio is increasingly geographically diverse with strong performers and the pipeline continues to deliver sound investment opportunities. The management team is committed togrowing the Company's existing portfolio as well as continuing to invest in early stage financial services intermediary businesses with the aim of becoming the capital provider of choice for the sector and delivering value to the Company's shareholders.
Dividend
The Board aims to find a balance between utilising cash to invest in the existing portfolio and new opportunities, with providing investors with a sustainable yield. It is the Board's aspiration to continue to maintain a dividend of at least 4.76p 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.
The Managing General Agency sub-sector continues to produce a strong pipeline of good potential opportunities, both in the UK and internationally.
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 investment portfolio now has geographic representation in the UK, Europe, U.S.A., Singapore, Australia, Canada and South Africa, which the Group believes represents a solid international framework and makes it well-positioned to take advantage of global economic growth. The Group anticipates no adverse consequences to its existing business from the withdrawal of the United Kingdom from the European Union.
Interim Results
The Group expects to report the results for the six months to 31 July 2018 on Tuesday 16 October 2018.