10 October 2023

B.P. Marsh & Partners Plc

("B.P. Marsh", "the Company" or "the Group")

Completion of Sale of Kentro Capital Limited

Updated Use of Proceeds

B.P. Marsh & Partners Plc (AIM: BPM), the specialist venture capital investor in early stage financial services businesses, reports that, further to its announcement on 23 May 2023, the sale of its 18.38% stake in Kentro Capital Limited ("Kentro") to Brown & Brown, Inc ("Brown & Brown"), has today completed, delivering sale proceeds to us of £51,522,000.

Accordingly, the Board intends to declare a special dividend of 2.78p per ordinary share at the time of the Company's Interim Results on 17 October 2023, along with details of the proposed payment date. The Board has also agreed to allocate a further £6.0m for dividends over the next three years, payable in the years ending 31 January 2025, 31 January 2026 and 31 January 2027.

Kentro's Founder and Chief Executive Officer, Colin Thompson commented: "During the time that B.P. Marsh invested in Kentro, the business has undergone tremendous growth, culminating in the international success and leading market position of our MGA platform (Nexus). In that same time, we have built a best-in-class specialist broking operation (Xenia) of which we are immensely proud. None of this would have been possible without the support provided by our friends at B.P. Marsh. As we move on to our permanent home with Brown & Brown, we would like to thank B.P. Marsh for partnering with us and wish them all the very best in their future endeavours."

Commenting on this disposal, the Group's Chief Investment Officer, Dan Topping stated:

"We here at B.P. Marsh would like to wish Colin Thompson and the whole team at Kentro all the best for the next chapter in their growth and development, in partnership with Brown & Brown.

It has been a pleasure to work with the whole team at Kentro over the last 9 years and to see the business grow and flourish. This disposal has delivered an Internal Rate of Return of 23.66% (inclusive of all income and fees) and a money multiple on the Equity Investment of 3.41x. It is a further testament to B.P. Marsh's ability to secure niche opportunities, to back successful management teams and to successfully realise value for our shareholders."

Brian Marsh OBE, Chairman of B.P. Marsh, commented: "The £51.5m sale of our stake in Kentro demonstrates the Company's ability to partner with young businesses and management teams and help them achieve their ambitious growth plans, whilst delivering strong returns for our shareholders.

"As a result of this disposal, we are pleased to be able to declare a special dividend and to outline further dividends over the next three years. These funds will enable us to make further investments in the portfolio, delivering capital growth, alongside shareholder returns." 

Note

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018.

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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 approaching ten years.

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