14th Jun 2016 09:59
LONDON (Alliance News) - BP Marsh & Partners PLC, the AIM-listed provider of venture capital to financial services companies, on Tuesday said it has increased its stake in LEBC Holdings Ltd, the independent financial advisory, by investing GBP1.9 million for an additional 8.02% stake.
The move, which means BP Marsh now owns 42.68% of the company, comes as LEBC looks to develop robo-advice to complement its human advisers.
BP Marsh, which first invested in LEBC in April 2007, bought the stake from shareholders including "predominantly retired" former employees. It's the second time since taking a 22.5% stake in 2007 that BP Marsh has added to its LEBC stake, following a similar move in January 2014. BP Marsh valued what was then a 34.66% stake in LEBC at about GBP9.5 million as of January 31, 2016.
LEBC, which had revenue of GBP8.1 million in the year ended May 2007, reported revenue of GBP15 million in the year ended September 2015. With 15 branches across the UK, LEBC has benefitted from the introduction of pension freedoms, auto-enrolment and defined benefit consultancy work.
The first step on the way to developing LEBC's robo-advice proposition came in May, in the form of a joint venture with Belfast-based advice firm Kerr Henderson. Together, LEBC and Kerr have developed software designed to make it easier for advisers to use technology to complete fact-finding and report writing for clients, according to BP Marsh.
"We are pleased to increase our stake in LEBC. Our partnership to date has proved fruitful and we believe the business has great future potential. We look forward to continue working with them to develop the business further," Brian Marsh, executive chairman of BP Marsh, said in a statement.
Jack McVitie, chief executive officer of LEBC, said: "As well as being a first class financial transaction for all those involved, it underpins and confirms the value that has been created within LEBC Group and gives us a new platform on which to build our future growth and development."
Reporting full-year results on June 7, BP Marsh said it had GBP5.3 million in cash and treasury funds at the end of the period. Of that amount, GBP3.6 million was available for new investment opportunities after commitments, and BP Marsh also expects in July a GBP7.3 million return of cash from realising its remaining 1.6% stake in insurance intermediary Hyperion Insurance Group Ltd.
The venture capital provider has found a way to deploy GBP1.9 million so far.
Shares in BP Marsh were down 1.2% at 166.05 pence on Tuesday morning in London.
By Samuel Agini; [email protected]; @samuelagini
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