B.P. Marsh & Partners PLC
Date: 17th December 2015
On behalf of: B.P. Marsh & Partners Plc
Immediate release
B.P. Marsh & Partners Plc
("B.P. Marsh", "the Company" or "the Group")
Investee Company Update - Besso Insurance Group Limited
B.P. Marsh & Partners Plc (AIM: BPM), the niche venture capital provider to early stage financial services businesses, is pleased to note that its investee company Besso Insurance Group Limited ("Besso") has announced today that it has completed a refinancing deal with Clydesdale Bank, to support its continued growth strategy.
The additional funding will assist Besso in continuing its growth trajectory and building on its recent expansion into new regions. In addition, a proportion of the funding will also repay longstanding Loan Notes provided in 2011 by Besso Management and Shareholders (including the Company) to buy out certain shareholders, in particular Wells Fargo. B.P. Marsh currently has £2.775m outstanding in Loan Notes and, once these are redeemed, has committed a further £1m loan facility to Besso, alongside Clydesdale.
Besso has grown substantially from revenue of £22m in 2011 to a current forecast performance for 2015 of £37m of revenue and over £6m of underlying EBITDA.
Robert Dowman, Joint Chief Executive of Besso Limited, said:
"We worked closely with our shareholders in considering our options for enhancing our capital structure. Our decision was to repay the shareholder loan to B.P. Marsh; this funding support from Clydesdale Bank enables us to do this as well as facilitating significant further growth and we look forward to the future with enthusiasm."
Russ Nichols, Joint Chief Executive of Besso Limited, said:
"Since 2011 we have steadily grown revenues and profitability in a very tough market while reducing the overall indebtedness of the company from £9m to £6m. This success reflects the commitment and expertise of the Besso team along with the entrepreneurial ethos within the firm which has allowed us to deliver this growth and attract talent from within our market."
Colin Bird, Chairman of Besso Insurance Group Limited, said:
"I'm particularly proud of where the Group is and what it has achieved in a tough market. We've maintained our entrepreneurial spirit and a commitment to client service whilst embracing many of the challenges faced by the Lloyd's broking fraternity. The position the Group has reached could not have been achieved without the hard work and support of each and every member of staff over the past 20 years."
Brian Marsh OBE, Chairman of B.P. Marsh & Partners PLC, commented:
"We are pleased that Besso has secured finance from a major financial institution such as Clydesdale. This, along with shareholder support, should allow Besso to continue on its growth trajectory. Since 2011, the management team, with Colin Bird as Chairman, has driven growth and profitability within the company; now with the appointment of Russ Nichols and Rob Dowman as joint-CEOs we see Besso as well positioned within the London Market to continue this strong performance."
For further information:
B.P. Marsh & Partners Plc www.bpmarsh.co.uk
Brian Marsh OBE / Camilla Kenyon +44 (0)20 7233 3112
Nominated Adviser & Broker
Panmure Gordon
Fred Walsh / Charles Leigh-Pemberton / Atholl Tweedie +44 (0)20 7886 2500
Notes to Editors:
About B.P. Marsh & Partners Plc
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 20 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 at least five years.
Prior to Brian Marsh's involvement in the Company, he spent many years in insurance broking and underwriting in Lloyd's as well as the London and overseas market. He has over 30 years' experience in building, buying and selling financial services businesses, particularly in the insurance sector.
Jonathan Newman is a Chartered Management Accountant and is the Group Director of Finance and has over 17 years' experience in the financial services industry. Jonathan advises investee companies and has a number of non-executive appointments over four investee companies and evaluates new investment opportunities.
Daniel Topping is a Member of the Chartered Institute of Securities and Investment (MCSI) and an Associate of the Institute of Chartered Secretaries and Administrators (ACIS), having graduated from the University of Durham in 2005. Dan joined B.P. Marsh in February 2007 having started his career at an accountancy firm. In 2011 he was appointed as a director of B.P. Marsh and currently has a number of non-executive appointments over seven investee companies and evaluates new investment opportunities.
Camilla Kenyon was appointed as Head of Investor Relations at B.P. Marsh in February 2009, having four years' prior experience with the Company. Camilla has a number of nominee directorships over one investee company, is Chair of the New Business Committee and is a Member of the Investor Relations Society.
Alice Foulk joined B.P. Marsh in September 2011 having started her career at a leading Life Assurance company. In 2014 she took over as Executive Assistant to the Chairman, running the Chairman's Office.
