 Investee Company Update - XPT Group LLC ("XPT Group")
B.P. Marsh & Partners Plc (AIM: BPM), the specialist venture capital investor in early stage financial services businesses, announces that is has entered into a new loan agreement with XPT Group to provide a further US$6m of funding via a short term US$2m Revolving Loan facility and a US$4m Term Loan. These facilities were drawn down in full by XPT Group on completion.
XPT Group has utilised these funds to acquire Cal Inspection Bureau Inc ("CAL"), a California based physical inspection company that carries out surveys and inspections of sites, on behalf of insurers and insurance intermediaries. CAL was established in 1988, by its founder and president Emil Moskowitz, who has joined Platinum Specialty Underwriters ("Platinum") as part of this acquisition.
CAL is widely regarded as the premier underwriting survey and audit business on the west coast of the USA, working with almost every MGA and wholesale broker in their territory. With CAL as part of Platinum, the goal is for CAL to become the premier underwriting survey and audit business throughout the USA.
XPT Group sees the services offered by CAL as a natural adjunct to Platinum's current wholesale channel business model, with Platinum being able to offer physical inspection services alongside other third-party claims adjusting administrator offerings.
The acquisition of CAL is XPT Group's 13th acquisition since formation.
XPT Group's performance since its inception has been impressive, with the business producing Gross Written Premium of over US$500m in its financial year ended 31st December 2022 (2021: US$400m). XPT Group is projecting strong growth during 2023, both via its continued acquisition strategy and underlying organic growth. |
A 20% discount to 499p means they can buy up to £4. |
Don't see how they can do a share buyback, there's no volume at present. |
Great news. PE with transparency. Not smoke and mirrors....... |
poacher45 - you are absolutely correct - BPM is a very bad case of controlling shareholders ripping off the minority. Very low dividends as paying a realistic dividend reduces Net Assets.
Sorry Thrug - but you're totally naive if you think you're going to get a square deal here.
Read my posts going back 3-5yrs. BPM always exaggerating their performance, relying on stats from when they were a private company. Since their IPO they have been the worst performer in the PE sector other than LMS - another rip-off family controlled company. |
Sell your shareholding and invest elsewhere then. No one is going to listen to your nonsense. |
I have now checked Mr B. P. Marsh's salary in the annual report for the last four years:-
2022 £359441
2021 £278675
2020 £240473
2019 £159861
I will not embarrass the other directors. This to me is the unacceptable side of capitalism. Small shareholders dividends cut and his salary more than doubles absolutely disgusting. It is time for the other directors to voice their opinions. |
It is annoying that they didn't answer your question. They should be bold enough to say they want to use all the company cash for investment.I expect you would get an answer from Daniel Topping if you contact him direct. |
Never going to be a dividend share. This is an early stage investment company that's looking for capital growth via eventual trade exits. You would hope the companies that they are investing in do likewise with their profits and grow organically. Insurance being a capital intensive business. |
Last week I registered for the conference call. I AM A SHAREHOLDER. They said that all questions would be answered. I said I was happy with the progress the firm had made but was very disappointed with the dividend which is nearly half what it used to be. The only reference they made to the dividend was that it will be kept the same next year. Perhaps they ought to cut their salaries in half. They have not answered my question directly and obviously care very little about the smaller shareholders. |
BPM have a good track record in their specialist field. Far easier to understand than their bigger PE brethren. When Mr Marsh departs the scene. Who is going to control the share register? |
Discount looks attractive, but pretty similar to the other PE funds, and actually a lot tighter than some of the venture funds, such as GROW. |
Thats quite a discount to NAV now, about 40% !
Net Asset Value at 31 July 2022 GBP179.8m (31 July 2021: GBP155.0m; 31 January 2022: GBP166.6m)
-- Net Asset Value per share 499.0p* (31 July 2021 430.4p; 31 January 2022: 462.7p) |
To narrow the discount keep buying the stock. I recall ST once saying. Park your tanks on the lawn when it comes to stocks thats are unloved by the the institutional investors. |
Tipped by the IC's Simon Thompson:- |
They've now issued a correction. |
Typo56
Well spottted ! |
NAV 462p, yet the share price 300p.
Why aren't they buying back shares ? |
Great set of Results in extremely challenging Markets.
NAV increase substantial.
Cash pile reassuring .
Excellent Profit increase
.
Rid of some `dead wood` investments.
ST on board.
When is Kentra having its IPO? Lol.
R. |
and you have been banging that drum for a long time! How old is BPM and what one know about his family? I presume has effective control. A former Midas reckons ST as a top tipster and he continues to recommend the company, which is a puzzle given poor performance. |
British Bulls: Buy |
"We remain focussed on taking actions to reduce the differential between Net Asset Value per share and the current share price."
Marsh has been saying the same thing relentlessly for over 10yrs. Occasionally comes out with minimal buybacks.
The only serious way to reduce the discount is of course to pay a serious dividend; but he sees that as giving away cash to the outside shareholders; hence robbing his own pocket! |
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