11th Jun 2024 12:23
(Alliance News) - Annual results from BP Marsh & Partners PLC on Tuesday were described as "very strong" as it announced a new share buyback alongside a surge in net asset value.
Shares in BP Marsh & Partners were up 5.0% to 498.49 pence each in London on Tuesday.
The private equity investor in early stage financial services businesses said diluted NAV per share surged 21% to 626.9 pence each on January 31 from 516.8p a year ago.
Total shareholder return improved to 22% from around 14%.
Pretax profit jumped 58% to GBP43.6 million in the financial year ended January 31 from GBP27.6 million a year ago.
BP Marsh said it paid total dividends of 5.56p per share during financial 2024, doubled from 2.78p a year ago. Since the year-end, BP Marsh has paid a further 10.72p per share in dividends. It proposed a final dividend for financial 2024 of 5.36p per share, to be paid on July 26.
The company also on Tuesday announced a new share buyback programme worth up to GBP1 million, the same as it completed during financial 2024.
Looking ahead, Chair Brian Marsh said: "Looking across our portfolio and the new opportunities we see, I am confident that BP Marsh remains the partner of choice for exciting start-up insurance intermediaries, which will drive further growth in the future."
Panmure Gordon said BP Marsh delivered its best yearly performance since IPO in 2006 with a significant uplift in NAV for the year ended January 31.
The broker described the results as "excellent", and "very strong", driven by three disposals of investments for GBP93.3 million.
Looking ahead, Panmure Gordon said BP Marsh can, bolstered by a strong cash book, "invest in high quality opportunities whilst still maintaining its rigorous selective approach that has served it so well over the past three decades".
The broker thinks the investment approach by BP Marsh will remain balanced between new investment opportunities and investing in its existing portfolio.
Despite the very strong performance the shares trade at an unwarranted 24% discount to NAV at January 31, Panmure remarked.
"We maintain our buy recommendation but increase our target price to 586p from 558p previously, to reflect the increase in NAV," Panmure added.
By Jeremy Cutler, Alliance News reporter
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