BP Marsh asset value climbs despite LEBC issues

BP Marsh on Tuesday reported a first half increase in its net asset value despite cutting the valuation of its investment in LEBC Group.

Net asset value (NAV) rose to £130.0m during the six month period ended 31 July, up from £120.0m a year earlier, while net asset value per share increased by 8% to 361p.

The company reduced the valuation of its 59% stake in LEBC from £35.5m to £23.9m during the period, after it voluntarily ceased the provision of defined benefit pension transfer advice due to a market-wide review by the FCA.

However, BP Marsh, a specialist investor in financial services intermediary businesses, said it was confident that the impact of this will be offset elsewhere in its portfolio, with the equity value having increased by 4% in the first half.

Profit before tax came in at £5.6m, down from £6.3m during the first half of 2018.

The AIM traded company said it received 42 new investment opportunities over the six-month period, versus 32 in the comparable period.

Chairman Brian Marsh said: "BP Marsh has continued its long track record of delivering NAV growth from its diverse portfolio of investments, despite specific challenges. As a leading specialist investor in global financial services intermediaries and with 50% of our investment portfolio revenues emanating from outside of the UK, the outlook for the rest of the financial year is positive."

BP Marsh shares were up 8.29% at 271.80p at 1250 BST.