B.p. Marsh & Partners Share Discussion Threads

[azalea] 01/2/2013 15:01

Ticking up nicely on a mere 6.6K traded(IC).Could see an opening offer for the Hyperion stake as early as next week.

[azalea] 31/1/2013 16:07

With just 29.2m shares in issue, of which 83% is in major holders hands, even modest buying is pushing the share price higher. Given the prospect of a 20% upside, I see no reason why the momentum will not be maintained if not increased.

[azalea] 31/1/2013 12:06

Given the share price versus NAV, its virtually a heads you win tails you win prospect.

[dashton42] 31/1/2013 07:02

Yep, things seem to be getting interesting...

[adamjlewis] 30/1/2013 15:52

Release today re possible purchase of Hyperion

[jonwig] 02/11/2012 08:42

The sale of a stake in Besso (5.85% for £0.7m) values the whole at £12m, lower than that implied in BPM's H1 results.

However, a bit higher than the statement about BPM's stake in the same RNS (£11.6m).

[jonwig] 31/10/2012 07:32

Equity Development in its financial round-up:

B P Marsh produced another impressive set of interim results with a 10% rise
in earnings per share and an increase of 3.8%, to 178p, in NAV in the six
months to end-July despite declines in the AIM financial sector index. The
slow-down in growth, when the sector was suffering a decline, leaves
compound NAV growth since 1990 at 11.8% per annum more than two-anda-
half times the 4.6% annualised growth for the FTSE-100 index. It seems
unreasonable that the share price, even after today's sharp rise remains at a
massive 42% discount to NAV.

The valuation of Hyperion, its largest investment, was underpinned during
the period when Marsh sold a small part of its holding to a fellow shareholder
which wanted to increase its investments outside Spain: prior to the disposal
Hyperion comprised just over two-thirds by value of group assets and this
trimmed it to 60%. Hyperion continues to expand, both organically and
through occasional acquisitions and plans an IPO at some time in the next
few years when market conditions are favourable or at least reasonable: this
would permit BP Marsh to realise cash in excess of its current market
capitalisation.

The current share price surge has lasted two days - Investors Chronicle hasn't the firepower to achieve that, it's something else.

[jonwig] 27/10/2012 09:05

It's probably unwise to focus only on Hyperion - Lloyd's group Besso might do the biz as well:



The 30% stake is valued at £4.92m making the whole company worth £14.3m; maybe too small to matter, unless it's bought out.
This could start with an offer for the BPM stake.

[jonwig] 26/10/2012 13:48

Or this maybe?


BP Marsh assessing Finnish purchase

Venture capital firm BP Marsh is weighing up the acquisition of a broker in Finland, according to chairman Brian Marsh.

BP Marsh already participates in the Finnish market through an investment in Hyperion, which has a Howden operation in the country, but the broking investor said that he is considering delving further into the market.

"I don't know if it will go anywhere or not, but it's the sort of thing that I would be interested in," he said.

"We do make direct investments overseas when we want to, and we might do that one. I have to admit that it is the only interesting one I've seen from that part of the world for some years."

Marsh said in a statement released alongside BP Marsh's results earlier in the week that his firm typically takes an equity stake of between 15% and 45% with initial investment of up to £2.5m when investing in insurance intermediaries.

Howden placed €6.4m in total premiums through 2011, according to the Finnish Financial Services Authority, over €6m of which was placed for foreign insurance institutions.

Eight of the 67 brokers listed as approved by the Finnish regulator placed between €6m and €9m of business last year.

Half of those placed business exclusively from domestic insurers, while only one of the remainder, Avian Oy, based in the city of Oulu, placed more than €100 000 from foreign insurers.

Of the brokers of a similar size to Howden, Benefit Advisors and Optimum are headquartered in the capital of Helsinki.

Marsh, however, declined to be drawn on the identity of his target, but stressed that in looking at a similar acquisition in Norway that fell through he had seriously considered the size of population as a factor.

"Nations with small populations obviously offer us, as they do nearly all service companies, a limited prospect," he said.

"But in Norway, where prospects are limited like that, brokers are also not particularly strong. Most business is transacted direct between the carriers and the public, and the population is tiny."

Marsh expects to see progress on his potential Finnish acquisition in the next six months.

[dashton42] 26/10/2012 13:46

I'd say so! It's that Simon Thompson effect.

[jonwig] 26/10/2012 13:35

IC article - reason for rise today?

RESULTS: The share price of insurance investment company BP Marsh & Partners has gone nowhere for the past six months, but as the flotation of its main holding, global insurance broker Hyperion, approaches then expect investors to tap into the investment opportunity in BP Marsh's own shares.

Is now the quiet period at BP Marsh (BPM) before the share rise when its main investment, global insurance broker Hyperion, floats? Marsh first invested in Hyperion in 1994 and it has proved to be a fabulous investment. Just £3.72m has been invested for a current 13.84 per cent stake valued at £31.1m and equivalent to almost two-thirds of the Marsh portfolio. The stake is also worth 25 per cent more than Marsh's own market value of £25.4m which is anomalous for a cash rich company.

Hyperion is acquisitive and in 2012 has acquired UK insurance agent Windsor as well as a broker interests in Indonesia and Brazil. But Hyperion clearly wants to buy bigger. To do that it almost certainly needs to list on the London market and the IPO is provisionally earmarked for June next year. Once again Hyperion accounted for most of the uplift in BP Marsh's net asset value (NAV). But it's worth taking a look at the company's second largest investment, a 30 per cent stake in Besso worth £4.2m. Besso specialises in North American casualty and property insurance and could be a star performer. The company has rapidly reduced bank debt and has won the contract to provide insurance to salvage the ill-fated Italian cruise ship, the Costa Concordia.

According to 59 per cent shareholder and chairman Brian Marsh, the current six months started "quietly", is continuing "calmly" and won't let shareholders down. Mr Marsh also considers dividends a "good idea" so expect another 1p a share payout for 2012-13.

[jonwig] 25/10/2012 18:41

Somebody sees the potential - Helium Special Sits bought before and after H1 results and now holds 1,210,000 shares (4.14%).

[jonwig] 23/10/2012 12:01

H1 results show NAV of £52m (178p) at 31/07 up from £50.1m (171p) at 31/01 and £48.5m (166p) at 31/07 last.

All very impressive, at least it might have been if the investee companies had been valued upwards, but that's not the case.
The balance sheet shows the trick - loans and receivables up, loans and payables down.

Unfortunately, then, nothing to get excited about. Of course, there's the hope of a 178p or somesuch payout at some point, and a 1p divi next year. At least, a 50% discount to NAV should limit the downside, and the Hyperion stake is valued higher than the whole MCap.

[jonwig] 07/9/2012 14:21

Yes, Hyperion is the jewel here. IPO was mooted for this year at one point.
At 31/01 the Hyperion stake was worth about 102p per BPM share.
They've sold some since.

Who knows, the whole group may be liquidated within the next year.

[contrarian2investor] 07/9/2012 14:07

I have been nibbling at these this week. Looking for IPO or trade sale of Hyperion within 12 months. Releasing nav value.

[jonwig] 28/8/2012 20:01

Thanks Jeff - I know and respect Equity Development but missed their coverage (dated today).

The exit strategy for the individual companies is pretty well-known, but I rather dismissed the notion of disposing of the whole group in this climate. A 20% premium to the current share price (as mentioned) would still be a 37% discount to NAV!

Of course BPM himself is getting on a bit! He owns nearly 60% I think.

[jeff h] 28/8/2012 19:55

Presumably the Windsor acquisition was the company previously quoted with the ticker WNDR?

I can recall holding it and it being a good company...dunno what it's like now

On further digging:- Dec 11 Revenue £37.5m EBITDA £12.0m

Sep 06 Revenue £20.8m Op Profit £5.2m



So Windsor has progressed with John Bennett still there.

Seem to have paid £95m for it:-



...as against £34m in 2007 when it was taken private:-

[jeff h] 28/8/2012 19:37

Equity Developments view of the Trading Update:-

BP Marsh have issued a trading update with more good news from their portfolio
of unquoted insurance brokers which demonstrate that a good service can be
provided to clients at a rather lower cost than the "big three" brokers.

Hyperion, its largest asset, of which it sold a small minority to a fellow
shareholder, realising the total cost of its initial investment, has completed two acquisitions: one in the UK and another in Indonesia.

The UK acquisition, Windsor, was acquired from management and employees,
plus institutional backers, so involved shares issued to staff; the Indonesian
acquisition was financed out of cash flow.

US Risk (UK), another broker part-owned by BP Marsh has made two acquisitions
without needing to draw on the BPM loan facility which has expired unused; BPM
has renewed it for a further two years.

Also Amberglobe, a business sales platform for SMEs which is one of its smallest
investments and one of the few not involved in insurance, has acquired one of its rivals which should make the joint company by far the leader in that sector.

However the biggest effect on the share price could be a comment near the end
that BP Marsh continues to consider exit opportunities for the portfolio and the
group itself. Currently the shares stand at a ludicrous 48% discount to NAV.

One can imagine a queue of Hedge funds trying to buy out the minority shareholders at a mere 10% or 20% premium to the current price.

[jonwig] 23/8/2012 09:14

Thanks - just for the record:



An unkind thought - I saw a resemblance to Bernard Manning, but it wouldn't have been in good taste to post a pic.

[sammy_smith] 23/8/2012 09:04

Came across this audio interview with Brian Marsh the Chairman of BP Marsh & Partners.

[jonwig] 14/8/2012 08:19

Buyback tally:

08/08 ... 10,060 ... 89p
09/08 ... 10,350 ... 89p
10/08 ... 11,537 ... 89p
13/08 ... 11,742 ... 89p
14/08 ... 11,760 ... 89p
15/08 ...... 694 ... 89p

[jonwig] 10/8/2012 14:11

And again:

B. P. Marsh, the niche venture capital provider to early stage financial services businesses, announces that on 10 August 2012 it purchased 11,537 ordinary shares of 10 pence each in the Company ("Ordinary Shares") at a price of 89 pence per Ordinary Share. These shares will be immediately cancelled.

The lack of movement in an illiquid share suggests the tap may be on elsewhere.

[jonwig] 09/8/2012 13:52

And again:

B. P. Marsh, the niche venture capital provider to early stage financial services businesses, announces that on 9 August 2012 it purchased 10,350 ordinary shares of 10 pence each in the Company ("Ordinary Shares") at a price of 89 pence per Ordinary Share. These shares will be immediately cancelled.

[jonwig] 08/8/2012 16:36

B. P. Marsh, the niche venture capital provider to early stage financial services businesses, announces that on 8 August 2012 it purchased 10,060 ordinary shares of 10 pence each in the Company ("Ordinary Shares") at a price of 89 pence per Ordinary Share. These shares will be immediately cancelled.

With thinly-traded stocks, this can sometimes have a sharp effect on the share price
Anyway, they paid more than I did last month!