B.p. Marsh & Partners Share Discussion Threads

[retsius] 29/6/2019 11:51

4.76p, share has dropped only 1p x div.

That has to be good news?

[retsius] 26/6/2019 14:26

x div tomorrow. 4.75p

[jagworth] 18/6/2019 00:42

RNS Number: 7436B
B.P. Marsh & Partners PLC
11 June 2019

“The Group's investment portfolio movement during the year was as follows:

31st January 2018 valuation Acquisitions at cost Disposal proceeds Adjusted 31st January 2018 valuation 31st January 2019 valuation
£79.1m £8.7m £Nil £87.8m £101.9m

Investments
As at 31 January 2019 the Group's equity interests were as follows:......

LEBC Holdings Limited
(www.lebc-group.com)
In April 2007 the Group invested in LEBC, an Independent Financial Advisory company providing services to individuals, corporates and partnerships, principally in employee benefits, investment and life product areas....
Date of investment: April 2007
Equity stake: 59.3%
31 January 2019 valuation: £35,485,000221;

LEBC not mentioned by Simon Thompson in latest IC article.
LEBC represents quite a bit of the investment portfolio asset value. This was going to be a hot new issue but now postponed. It is very nice getting a plug from ST every so often. But BPM riskier than you might think from the share price movement (i.e. lack of movement most of the time)

[spob] 11/6/2019 15:46

BP Marsh posts record net asset value



Simon Thompson

Investors Chronicle

Insurance sector investment company BP Marsh & Partners (BPM:300p) has delivered an 11.9 per cent average annual compound growth in net asset value (NAV) since 1990 by backing the management of its investee companies at the right time and then holding for the long run.

The company’s shrewd management team, led by founder and chairman Brian Marsh OBE, maintained this enviable track record in the 2018-19 financial year by posting a total shareholder return of 11.7 per cent. Moreover, Mr Marsh has “every reason to believe that we will repeat our usual mantra of delivering 10 per cent growth in NAV, dividend and trading profit in the current financial year, too”. He has every reason to think this way as BP Marsh’s investment committee has been recycling the net cash proceeds of £16.6m raised from last summer’s placing and open offer into new investments, and is delivering some hefty gains from the existing portfolio, too.

For example, the £2.85m investment BP Marsh made last July for a 20 per cent stake in ATC Insurance, an Australian-based Managed General Agency and Lloyd's Coverholder, specialising in accident, health, construction, engineering and sports insurance, was revalued upwards by 89 per cent to £5.4m after ATC “smashed profit forecasts”, according to BP Marsh’s managing director, Alice Foulk. The revaluation still looks conservative, equating to a multiple of 60 per cent of gross written premium (GWP) of AUS$61m (less cash), or around 10 times ATC’s annual cash profits.

It’s not the only eye-catching revaluation as BP Marsh’s 44.3 stake in CBC, a retail and wholesale Lloyd's insurance broker, was lifted by 77 per cent in value to £4.9m, implying an equity value of £11m for CBC as a whole, or 11 times annual operating profit, which increased by 29 per cent in 2018. CBC’s trading performance is likely to be even better this year, highlighting the benefits of incentivising its staff following the management buy-in backed by BP Marsh. Moreover, CBC is well placed to benefit from the merger of Marsh & McLennan and Jardine Lloyd Thompson as there is a real opportunity to attract prime staff from those companies and then heavily incentivise them, the upshot being further valuation creation for CBC shareholders, including BP Marsh.

There was also a notable gain on BP Marsh’s second-largest holding, Nexus Underwriting, an independent speciality managing general agency that has been making some shrewd acquisitions. BP Marsh now holds an 18.5 per cent stake in Nexus with a carrying value of £30.1m, implying an equity valuation of £166m, or 11 times the annualised cash profit of £15.2m Nexus is forecast to make this year based on profit growth of 20 per cent and GWP of £313m. That represented a net valuation uplift of £4.4m and expect further investment upside here, too.

Admittedly, not all investee companies posted revaluation uplifts, but that’s why diversification is critical to portfolio management. In any case, a £2.6m provision is dwarfed by unrealised gains of £14.1m. In aggregate, annual dividends, fees and loan interest received from portfolio companies of £4.6m was well ahead of BP Marsh’s operating expenses of £3.9m, thus freeing up some cash to reward shareholders with a final dividend of 4.76p a share to be paid next month. Net profit of £12.5m is a very acceptable return on average net assets of £112m. Interestingly, BP Marsh has “£10m of projects in the pipeline”, so expect news on further investments later this year.

Shares in BP Marsh have produced a 265 per cent total return since I first advised buying at 88p ('Hyper value small-cap buy', 22 Jan 2012), representing a compound annual growth rate of 22 per cent, and have risen from the 280p level since I last advised buying (‘Alpha Alert for financial gains’, 18 Mar 2019). Trading on a 14 per cent discount to NAV per share of 350p, with management guidance supportive of a 10 per cent NAV uplift this year, and the directors’ committed to share buybacks if the share price discount widens to 15 per cent or more of NAV, the investment risk is firmly to the upside. Buy.

[its the oxman] 11/6/2019 08:28

Decent results and outlook, bit of profit taking but expecting further steady progress.

[discodave4] 11/6/2019 08:23

Good luck holders, sold up and moving on.

[danielbird193] 05/6/2019 20:52

Looks like someone is accumulating in advance of the results. I'll be holding on for better things to come!!

[discodave4] 05/6/2019 19:10

Been quite perky this week considering.

[danielbird193] 04/6/2019 06:13

Steaming up towards a new all-time high.

[srtoothpaste] 03/6/2019 21:32

Annual Results Announcement
Tuesday 11th June 2019!

[retsius] 03/6/2019 17:58

at last, some action in the share price.
R.

[danielbird193] 25/5/2019 21:55

I'm also looking forward to seeing the annual results. I'm expecting steady progress across the portfolio rather than any "showstoppers", but there's likely to be another tickle from Simon in the IC which generally lifts the share price a few percent. I'm very happy holding this share for some slow and steady progress.

[discodave4] 25/5/2019 18:19

Been a fair bit of positive action over the past 3 weeks or so and still a couple of weeks for results, so hope it keeps up its momentum :).

[retsius] 25/5/2019 13:06

Surely there must be some action in the share as it approaches the Annual Results.
So far, protected from general market hubris with little if any share price action.
Looking for a suitable increase in NAV and some positive statements on current business.
R.

[discodave4] 15/5/2019 13:02

Finals in about 4 weeks must be looking good!.

[its the oxman] 15/5/2019 08:42

Hoping this can make a run toward 350p

[discodave4] 09/5/2019 22:20

Can't handle all this blue! :)

[discodave4] 08/5/2019 22:24

retsiusAlways :)Slow burner this but let's hope £3 doesn't provide too much resistance and it continues on its long term uptrend........been sideways for far too long haha.All the best and thanks again.

[retsius] 08/5/2019 22:03

DD4

Always be pleased with a profit!

Some interest in the stock in the last few days, and has held up well in these atrocious market conditions, eg. Brexit, Trump...…..

Should be steady into results in a month,which I hope will be positive.
R.

[discodave4] 08/5/2019 20:13

retsius and PeterMust thank you both, since last week I'm finally in profit, hopefully it will continue on its merry way now.All the best

[discodave4] 04/5/2019 13:30

Nice to see this slowly moving towards 300 and hopefully some decent results next month will push it towards it's NAV.

[discodave4] 01/5/2019 20:54

Wouldn't rely on British Bulls tbh.

[retsius] 01/5/2019 19:51

Biggest rise in six months.
Been unloved by the market, but things look like perking up before results.

British Bulls :1/05/19: Buy.

Yes probably an old crony of Brian, but that's not a bad thing if he thinks like Warren Buffet!

I got a slight feeling of positivity from the announcement, but maybe that was just my imagination.
R.

[danielbird193] 01/5/2019 19:17

Brian's finally perking up, I couldn't be more pleased.

Saw the announcement about the new NED and didn't think that would move the market but perhaps someone's impressed?

Is it me or is the new NED an old crony of Brian's? Not necessarily a bad thing, but I'd like to know more about the guy.