B.p. Marsh & Partners Share Discussion Threads

[jonwig] 31/5/2012 10:10

That's right, KM.

But it's the curse of Private equity these days: profitable exits closed down, funding squeeze. Quite a few PI cos are effectively in run-off at the moment, and it's even been proposed as one solution for 3i.

And BPM's companies are a bit short of hard tangibles.

But Hyperion does fascinate me, and the fact that BPM is paying a divi at last, and the shareholdre-friendly Chairman's statement encourage me to buy at some point. I'm pleased I didn't chase after it yesterday - who knows, the market might throw a good price my way!

[kenmitch] 31/5/2012 09:06

jonwig.

It seems nothing will help the share price because investors aren't interested. It's the same thing as you know with Eurovestech where the NAV is robust and probably conservative, but the share price just sticks around 9p for weeks on end. Their portfolio is tech shares, including multi bagger Toluna, their equivalent of Hyperion, and with several others looking good.

Even if some of BPM's portfolio is a bit iffy, fact is they are all in the current share price for free.

ST updated on EVT a couple of weeks ago and that did nothing for the share price, and the same is likely for BPM.

Until that changes there is no point buying more of either imo. And that's part of the problem as most investors seem to have come to that conclusion.

At least the share prices have held up and surely will continue to hold up at these low levels whatever Europe throws at the markets.

[jonwig] 30/5/2012 08:49

The partial sale of its Hyperion stake means we have a better handle on the value of Hyperion (£165.1m in total) valuing BPM's remaining stake at £26.73m or 91p/sh.

The trouble is that the rest of the portfolio might not be quite the same quality, so the revised NAV of 171p needn't be robust.

I'd like to buy back in, but could only manage a quote of 92.54p. I'm too mean for that today.

I imagine ST will have something to say in IC soon, which might help the share price here.

[cestnous] 30/4/2012 11:34

Christ! It moved.

[jonwig] 27/4/2012 15:30

Maybe - I'm not sure.

I sold when they began to flake off the high nineties and took some profits. But with their chief asset unquoted, I can imagine nothing much happening until they announce intention to IPO.

BPM are in there along with most private equity funds - huge discount to NAV.

[cestnous] 27/4/2012 15:24

Yet another Simon Thompson Duffer?

[jonwig] 27/1/2012 09:53

Hyperion provides full reports and accounts:



The 2011 one isn't there yet. From the 2010 accounts:

• Net assets of £41.4m of which £43.8m are intangibles. I didn't really expect them to be an asset play.

• Borrowings of £21.7m (over £13m due next year) against £13.3m of cash.

• Interest cover of 4.3x.

• Free cash flow of £2.4m.

• Defined contribution pension scheme.

I see why they are keen to IPO! They could go straight to the main market, no problem.

[spooky] 25/1/2012 13:12

jonwig - Thanks for that i didn't see the 2011 EBITDA,puts the valuation of Hyperion closer to fair value.

[azalea] 25/1/2012 12:39

AXA has reduced its stake - from 5.58% to 4.58%

[jonwig] 25/1/2012 12:30

spooky - 3i took a 27% stake in Hyperion 4 years ago valuing the whole at £120m. That puts BPM's 19.5% stake at £23.4m.

However, Hyperion had EBITDA of £18m for year to Sept 30 2011:



so a value of £23.4m is 6.7x EBITDA. (I really need the EV of Hyperion, but don't have the accounts.)

If, as the above link suggests, an IPO of Hyperion could raise "more than £250m" that suggests a value on float of well north of that, so BPM's stake well north of £25m. The value stated by BPMis £31m which looks reasonable in that light.

That really does suggest BPM's MCap is well-covered by its Hyperion stake, even if the stated NAV is a bit optimistic. So I'd agree that BPM's stated NAV of 166p needs a bit of caution.

What is interesting is the statement in the link that Hyperion are considering IPO in 2013. Whatever the outcome, that would put BPM's valuation on a surer footing.

EDIT: the fairly inevitable walk back down in the share price today! And the spread has been widened to 86-91 for some reason.

[azalea] 24/1/2012 09:40

ST st has certainly had some mixed results of late, the latest is ZTR down 15p @ 175p, today.

[spooky] 24/1/2012 07:57

I have looked at this before because on the basis of the NAV they look very cheap.The NAV is largely made up of the holding in Hyperion,but that is valued at 14 times 2010 EBITDA which in my opinion is very aggressive so i personally would not take the NAV at face value.I will be interested to hear what Thompson has to say,he invariably has a few interesting ideas but i have found that on a number of occasions his understanding of what's really going on with some of the businesses he looks at is very superficial.

[jonwig] 24/1/2012 07:00

Well done, hew. ST has had mixed fortunes, and I tend to see his picks as a prompt to more research than straight tips.

This one does look sound enough, but I'll bide my time, or not bother if it flies up today.

[hew] 23/1/2012 21:01

Newly in, and to be one of the early birds had to take on trust the IC tip as no time to research, other than a quick glance at the Interims. First time I've done that but I've monitored some other of ST's tips that I fancied and been frustrated to see them do quite well.

There have been dud tips too, of course and with an eye to getting out first thing at a tiny gain if I didn't like it, I've done a little more research now and it seems a solid enough long term financial operation, and the Hyperion IPO is a specific rationale for a gain. It could stay flat until nearer the time though. The traders will be out quickly anyway, but I'm hoping to cash in at least +30% in 12 months time. Unless Eurogeddon of course.

[jonwig] 23/1/2012 19:24

Yes, but it looks as though the MMs were asleep or they'd have marked the price up sharply when the article came out (must have been about 12:30?) - instead they let in the early birds.

I've only just seen the article - seems pretty convincing. Funnily enough I looked at BPM before Christmas, but the markets were so frit I left it alone.

Not one to chase, I think, though the spread is reasonable.

[cestnous] 23/1/2012 16:08

Well the IC article today seems to have got people piling in (Simon Thompson, IC online)

[trustman] 04/11/2010 12:19

Market getting behind this one....good NAV....and more interest in other shareholders with div.

[jambo172] 21/1/2010 09:48

Disposal of Entire Stake in JMD Specialist Insurance Services Group Limited

B. P. Marsh & Partners plc ("B.P. Marsh" or the "Company") (AIM: BPM), the
niche venture capital provider to early stage financial services businesses, is
pleased to announce that it has agreed to dispose of its entire stake in JMD
Specialist Insurance Services Group Limited ("JMD") to Randall & Quilter
Investment Holdings plc ("R&Q"), the AIM listed run-off management service
provider and acquirer of solvent insurance companies in run-off in exchange for
a total consideration of 650,000 ordinary shares of 2p each in R&Q
("Consideration Shares"), which at the close of business on 20 January had a
value 23% higher than the GBP569,000 valuation put on JMD as at 31 July 2009 in
the Company's accounts. In addition, B.P. Marsh's outstanding loan of GBP100,000 will be repaid in full in cash on completion.

The Board of B.P. Marsh believes the receipt of shares in R&Q is in the best
interest of its shareholders and is in line with the Company's strategy of
focusing on suitable investments as well as being mindful of value enhancements
for the existing portfolio. The disposal of the Company's stake in JMD
demonstrates that B. P. Marsh is able to exit investments after short periods
whilst generating returns for its shareholders.

[trustman] 07/1/2010 18:05

Many thanks Rambutan...switched off a bit on this one.

[rambutan2] 04/12/2009 00:15

Yes. But not expected to list until well into next year.

[trustman] 03/12/2009 18:56

Friend said Telegraph mentioned Hyperion heading for listing....is this same Hyperion that BPM invests in?

[jambo172] 27/10/2009 11:05

Told you so.
Still on 40% discount.

[jambo172] 21/10/2009 16:24

Overhang cleared - up we go.

[trustman] 22/5/2009 16:36

Looking like a breakout.....change of adviser helping?
Deep discount on published NAV.

[trustman] 02/4/2008 17:53

What is look thru value to BPM?