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B.P. Marsh & Partners PLC (LSE:BPM) Full Year 2025 Earnings Call Highlights: Record Profit ...
Net Asset Value (NAV): Increased by 42.4% to 326.4 million GBP.
Profit Before Tax: 104.7 million GBP, up from 43 million GBP in the prior year.
Dividend Income: Increased to just under 11p per share from 5.5p per share in the previous year.
Total Shareholder Return: 44.2% for the year ended 31st January 2025.
Equity Portfolio Value: Increased by 83.5% to 224.1 million GBP.
Available Capital: 74.1 million GBP as of 31st January 2025, decreased to 65.2 million GBP by 10th June 2025.
Loan Portfolio: 25.6 million GBP, a decrease from 28.9 million GBP the previous year.
Cash and Treasury: 74.1 million GBP, up from 40.5 million GBP in January 2024.
Average Interest Rate on Loans: Approximately 10%, up from 9.7% the previous year.
Dividends Paid: Total of 16.8 million GBP as of 31st January 2025, with 4 million GBP paid during the financial year.
Warning! GuruFocus has detected 3 Warning Sign with LSE:BPM.
Release Date: June 10, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
B.P. Marsh & Partners PLC (LSE:BPM) reported a 42% increase in net asset value (NAV) year-on-year, rising from 250 million to over 326 million.
The company delivered a profit before tax of 104 million for the year, a significant increase from 43 million in the prior year.
Dividend income to shareholders increased to just under 11p per share, compared to 5.5p per share in the previous financial year.
Strong performance from key investments, including Pantheon, XPT in the US, and ATC in Australia, contributed significantly to growth.
The company successfully executed profitable disposals, such as Lili Plumber Risk and CBC, enhancing shareholder returns.
The available capital decreased from 74.1 million to 65.2 million post-year-end due to new investments and dividend payments.
The scale of share buybacks was considered small, with some investors questioning the potential for an increase.
There is uncertainty regarding the potential disposal of remaining holdings by PSC, which could impact share price stability.
The company faces challenges in the wider macroeconomic conditions and insurance market, which could affect future performance.
Despite strong results, the company remains cautious about the valuation of potential deferred consideration payments from certain investments.
Q: Does PSC intend to dispose of its remaining holdings in BP Marsh? A: Daniel Topping, Chief Information Officer, explained that PSC, now owned by Ardonna, a P/E consolidator, might consider disposing of its remaining holdings in BP Marsh. Ardonna has already sold half of its shareholding, and given the non-core nature of the investment, they might look to sell the rest in the short to medium term, although they are currently in a lockout period.
Q: Can the scale of share buybacks be increased? A: Daniel Topping noted that the company has the authority to buy back up to 10% of shares, as approved at the recent EGM. They are focused on managing buybacks sensibly and in the long-term best interests of shareholders.
Q: What are the financial highlights for the year ending January 31, 2025? A: Francesca Chappell, Chief Financial Officer, reported a 42.4% increase in NAV, reaching an all-time high of 326.4 million. Profit before tax was 104.7 million, with significant contributions from unrealized gains in the equity portfolio.
Q: How did Pantheon perform in the financial year 2025? A: Daniel Topping highlighted Pantheon as a standout performer, experiencing significant growth across key metrics. The company has been successful in the Lloyd's broking sector, providing a compelling client proposition and attracting other brokers.
Q: What is the company's strategy for new investments and disposals? A: Daniel Topping stated that BP Marsh typically targets about three new investments per annum alongside one or two disposals, subject to satisfactory returns. The company continues to focus on identifying businesses with strong management teams and growth potential.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
