25 March 2024
B.P. Marsh & Partners
Plc
("B.P. Marsh", "the Company"
or "the Group")
Completion of Sale of Paladin
Holdings Limited,
parent company of CBC UK
Limited
Dividend Declaration
Further to the announcement on 7
December 2023, B.P. Marsh and Partners Plc (AIM:BPM), the
specialist private equity investor in early stage financial
services businesses, is pleased to confirm that the sale of its
entire shareholding in Paladin Holdings Limited ("Paladin"), the
holding company of CBC UK Limited ("CBC"), has now
completed.
Highlights:
·
£42.1m (net of transaction costs) initial cash
consideration received from the disposal of the Group's 43.8%
holding in Paladin
·
Internal rate of return to B.P. Marsh of 44%
(inclusive of all income and
fees) based on initial consideration
·
Repayment to the Group of £5.9m outstanding loans
to Paladin
·
£11.5m uplift (38%) from £30.53m valuation as at
31 July 2023
·
Potential for £17.8m further consideration if
Paladin achieves defined hurdles
·
Net equity investment of £3.5k
Additional
information
As well as the initial consideration
on completion and prior to calculation of the deferred
consideration, the Company will also be entitled to receive its
proportion of any net working capital adjustment, expected to be
finalised within three months of completion.
The Company has also entered into a
two year £6m loan facility with Alchemy Underwriting Limited, an
entity that was owned 22.5% by Paladin, in order to assist its
management team with a Management Buy Out as part of the overall
transaction.
Jon Newman, the Company's Finance
Director and Nominee Director on the Boards of Paladin and CBC, has
resigned from his Director roles at Paladin and CBC.
The investment, development and
subsequent sale of the Group's holding in Paladin demonstrates B.P.
Marsh's established strategy of partnering with entrepreneurial
management teams to assist their growth prior to reaching a
management-led exit in a time frame that suits all
parties.
Jon Newman commented: "This
completed disposal is a further illustration of the success of the
B.P. Marsh investment model that depends on our tried and tested
experience and judgement as well as our strategy of wholly aligning
our interests with those of management over the long
term."
"B.P. Marsh wishes the whole team at
CBC all the very best for the next chapter in their growth and
development in partnership with Specialist Risk Group."
Use of
Proceeds
Further to the announcement on 23
January 2024, now that completion has taken place, the Company can
hereby confirm its intention to increase the annual dividend
allocation from £2m to a total of £4m in each year for
the next three years, with payments commencing in the financial
year beginning 1 February 2024, equating to distributions of
up to £12m in total over the period to 31 January
2027.
In regard to the current Financial
Year which began on 1 February 2024, the Board can now declare that
an interim dividend of 2.68p per share, or £1m in the aggregate,
will be paid on 3 May 2024. All shareholders on the Register as at
5 April 2024 will receive their pro-rata share of this
distribution.
This will be in addition to the £1m
dividend already paid on 18 March 2024.
A further £2m dividend distribution
will be declared as payable in August 2024, subject to Shareholder
Approval. Altogether these will equate to a total dividend
distribution of £4m to shareholders in the current Financial Year,
ending on 31 January 2025.
For
further
information:
B.P. Marsh & Partners Plc
|
www.bpmarsh.co.uk
|
Brian Marsh OBE
|
+44 (0)20 7233 3112
|
|
|
Nominated Adviser & Broker
Panmure Gordon
|
|
Atholl Tweedie / Amrit
Mahbubani / Ailsa MacMaster
|
+44 (0)20 7886 2500
|
|
|
Financial PR & Investor Relations
|
|
Tavistock
|
bpmarsh@tavistock.co.uk
|
Simon Hudson / Tim Pearson / Katie
Hopkins
|
+44 (0)20 7920 3150
|
Notes to Editors:
B.P. Marsh's current portfolio
contains fourteen companies. More detailed descriptions of the
portfolio can be found at www.bpmarsh.co.uk.
Since formation over 30 years ago,
the Company has assembled a management team with considerable
experience both in the financial services sector and in managing
private equity investments. Many of the directors
have worked with each other in previous roles, and all have worked
with each other for over ten years.
- Ends
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