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B.P. Marsh &Partners (BPM)

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Wednesday 24 October, 2007

B.P. Marsh &Partners

Interim Results

B.P. Marsh & Partners PLC
24 October 2007


Date:                    24th October 2007
On behalf of:            B.P. Marsh & Partners Plc
Embargoed until:         0700hrs


B.P. Marsh & Partners Plc
('B. P. Marsh', 'the Company' or 'the Group')



Interim Results
_______________

B. P. Marsh & Partners Plc (AIM: BPM), a niche venture capital provider to early
stage financial services businesses, announces its unaudited Group results for
the six months ended 31 July 2007.


Chairman's Statement
____________________

I am pleased to present the unaudited interim results for B P Marsh & Partners
Plc (the 'Group') and its consolidated statements for the six months ended 31st
July 2007. This is the first occasion that the results have been presented in
accordance with International Financial Reporting Standards and the comparative
data for the six months to 31st July 2006 and the year to 31st January 2007 have
been restated. A reconciliation of the Balance Sheet and Income Statement has
been included in the notes to the accounts.


Investments

In the six months to 31st July 2007 the Group made the following investments:

•   The Group acquired a 25% shareholding in JMD Specialist Insurance
    Services Group Limited ('JMD') for £0.6 million and has agreed to provide a
    further £0.25 million in loans to further develop the business. JMD is an
    accelerated premium collection service based in the City of London and
    provides a unique approach to the acceleration of insurance cash flow as
    well as attractive balance sheet management;

•   The Group acquired a 22.5% shareholding in LEBC Holdings Limited
    ('LEBC') for an initial consideration of £1.8 million and a further payment
    of £0.2 million based on its subsidiary company's audited results to 31st
    May 2007. LEBC is an Independent Financial Adviser established in 2000 with
    11 branches and 56 advisers around the UK and which provides services to
    individuals, corporates and partnerships, principally in employee benefits,
    investment and life product areas;

•   The Group participated in a further rights issue for Hyperion Insurance
    Group Limited to further develop the business, taking up its pro-rata share
    at £1.5 million and thereby retaining its 27.89% shareholding;

•   The Group lent Summa Insurance Brokerage S. L. an additional €1.6
    million, part of an agreed €2 million loan facility, to fund further
    acquisitions of regional brokers in Spain.

In addition, the Group has currently committed to provide a further £0.6 million
of funding either through debt or deferred equity for its existing investments.
After taking this into consideration, the Group currently has circa £1.2 million
of cash available for further investments together with a £3 million loan
facility.


Business Strategy

The Group typically invests amounts of up to £2.5 million and only takes
minority equity positions, normally acquiring between 15% and 45% of a target
company's total equity. The Group insists on its investee companies adopting
certain minority shareholder protections and appointing one of its directors to
the relevant board. The Group's successful track record is based upon a number
of factors that include, amongst other things, a robust investment process, the
management's considerable experience of the financial services sector, and a
flexible approach towards exit-strategies.


Financial Performance

At 31st July 2007, the net asset value of the Group excluding deferred tax was
up 12.8% to £50.6 million, compared with £44.9 million at 31st July 2006.
Including deferred tax this was up 11.7% to £42.9 million (2006: £38.4 million).
Compared to 31st January 2007, the net asset value of the Group rose by 6.1%
excluding deferred tax and 5.7% including deferred tax. The Directors are
pleased with this result considering the recent market turmoil.

This represented a total increase in net asset value before deferred tax of £38
million (£30.3m after deferred tax) since the Group was originally formed in
1990, having adjusted for the £10.1 million net proceeds raised on AIM and the
original capital investment of £2.5 million. The Directors are pleased that,
since 1990, the Group has over 17.5 years achieved an annual compound growth
rate of 16.8% after running costs, realisations, losses and distributions but
excluding deferred tax (15.3% including deferred tax).

Based upon the above figures the Group's undiluted net asset value per share as
at 31st July 2007 was 172.9 pence excluding deferred tax (146.6 pence including
deferred tax).

The Group's investment portfolio movement during the year was as below:


  July 2006   Acquisitions  Disposals at   Valuations    Adjusted    July 2007  
  valuation     at cost         cost       released to   July 2006   valuation  
                                           P&L at cost   valuation               
  ____________________________________________________________________________

    £35.8     £4.0 million      £nil           £nil        £39.8        £45.3    
   million                                                million      million   
  ____________________________________________________________________________

This equates to an uplift of 13.8% before deferred tax. However, this assumes
all acquisitions were made on the first day of the year and therefore the actual
rate of increase is greater.

The consolidated profit on ordinary activities before share based provisions for
the six months to 31st July 2007 was £2.9 million (2006: £3.5 million).
Adjusting for unrealised gains on investment revaluations and carried interest
provisions the consolidated profit on ordinary activities before share based
provisions for the six months to 31st July 2007 was £268,000 (2006: £187,000).

The Directors note that at the current corporation tax rate of 30% the estimate
of deferred tax is £7.7 million. However, under government proposals to reduce
the corporation tax rate to 28% from April 2008 this would, based upon figures
to 31st July 2007, reduce this contingent liability to £7.2 million.


People

In March 2007 we said farewell to Stephen Crowther, who had served as a Director
since 1998 and with whom we maintain a mutually helpful relationship in his
subsequent capacity as a Director of one of our main investee companies.

I thank the Directors and staff for their unstinting contributions to the
progress of the Group.


Outlook

The Group remains unique in its investment sector and we continue to see a large
number of relatively small enterprises with excellent management and spirited
business plans. These represent a challenge, which the BP Marsh team relishes.


BP Marsh OBE
Chairman


Analyst Briefing

An analyst briefing given by Brian Marsh OBE, Executive Chairman, Francis de
Zulueta, Director of New Business Development and Jonathan Newman, Finance
Director, will be held at 09:00 am on Wednesday 24 October 2007 at Redleaf
Communications Ltd, 9-13 St Andrew Street, London EC4A 3AF.



For further information:


B.P. Marsh & Partners Plc                           www.bpmarsh.co.uk
                                                    _________________

Brian Marsh OBE                                     +44 (0)20 7730 2626


Nominated Adviser

Nabarro Wells & Co. Limited
David Nabarro/Marc Cramsie                          +44(0) 20 7710 7400


Redleaf Communications (PR to BP Marsh)
Emma Kane/Tom Newman                                +44 (0)20 7822 0200



Investments

As at 31st July 2007 the Group's equity interests were as follows:



Berkeley (Insurance) Holdings Limited
(www.berkeleyinsurance.com)

In July 2002 the Group invested in Berkeley (Insurance) Holdings, a company that
provides its clients with independent advice on the most suitable choice of
insurance broker in specialist as well as mainstream insurance areas.
Date of investment: July 2002
Equity stake: 19.9%
31st July 2007 valuation: £40,000



Besso Holdings Limited
(www.besso.co.uk)

In February 1995 the Group assisted a specialist team departing from insurance
broker Jardine Lloyd Thompson Group in establishing Besso Holdings. The company
specialises in insurance broking for the North American wholesale market.
Date of investment: February 1995
Equity stake: 23.55%
31st July 2007 valuation: £10,174,000



HQB Partners Limited
(www.hqbpartners.com )

In January 2005 the Group made an investment in HQB Partners, a company which
provides strategic transaction advice, proxy solicitation services, voting
analysis and investor relations services.
Date of investment: January 2005
Equity stake: 27.72%
31st July 2007 valuation: £350,000



Hyperion Insurance Group Limited
(www.hyperiongrp.com)

The Group first invested in Hyperion Insurance Group in 1994. The Hyperion
Insurance Group owns, amongst other things, an insurance broker specialising in
directors' and officers' ('D&O') and professional indemnity ('PI') insurance. A
subsidiary of Hyperion became a registered Lloyd's insurance broker. In 1998
Hyperion set up an insurance managing general agency specialising in developing
D&O and PI business in Europe.
Date of investment: November 1994
Equity: 27.89%
31st July 2007 valuation: £16,549,000



JMD Specialist Insurance Services Group Limited
(www.jmd-sis.com)

In March 2007 the Group invested in JMD, a provider of leading-edge services to
the insurance industry. Their unique approach to measurable cash flow and profit
enhancements adds value to Lloyd's syndicates, UK and international insurers and
re-insurers.
Date of investment: March 2007
Equity stake: 25.0%
31 July 2007 valuation: £600,000



LEBC Holdings Limited
(www.lebc-group.com)

In April 2007 the Group invested in LEBC, an Independent Financial Advisory
company providing services to individuals, corporates and partnerships,
principally in employee benefits, investment and life product areas.
Date of investment: April 2007
Equity stake: 22.5%
31 July 2007 valuation: £2,140,000



Paterson Martin Limited
(www.patersonmartin.com)

Paterson Martin was founded by a group of professionals from the actuarial,
capital markets and reinsurance advisory sectors in conjunction with the Group.
The company uses sophisticated modeling techniques to assess risk, with a view
to providing counter-party risk transaction advice.
Date of investment: April 2004
Equity stake: 22.5%
31st July 2007 valuation: £427,000



Portfolio Design Group International Limited
(www.surrendalink.co.uk)

In March 1994 the Group invested in the Portfolio Design Group, a company which
sells with-profits life endowment policies to large financial institutions. In
2002 the company diversified into investment management.
Date of investment: March 1994
Equity stake: 20.0%
31st July 2007 valuation: £6,306,000



Principal Investment Holdings Limited
(www.principalinvestment.co.uk)

In December 1999 the Group invested in Principal, a predominantly discretionary
fund manager with both retail and institutional clients.
Date of investment: December 1999
Equity stake: 18.57%
31st July 2007 valuation: £7,371,000




Public Risk Management Limited
(www.publicriskmanagement.co.uk)

In September 2003 the Group assisted in establishing Public Risk Management, a
company which specialises in the development and provision of risk management
services, including processes and procedures, to the public sector.
Date of investment: September 2003
Equity stake: 44.0%
31st July 2007 valuation: £110,000




Summa Insurance Brokerage, S. L.
(www.grupo-summa.com)

In January 2005 the Group provided finance to a Spanish management team with the
objective of acquiring and consolidating regional insurance brokers in Spain.
Date of investment: January 2005
Equity stake: 35.0%
31st July 2007 valuation: £1,238,000



Financial Statements


CONSOLIDATED INCOME STATEMENT
FOR THE PERIOD ENDED 31ST JULY 2007

                        Notes      Unaudited       Unaudited *       Audited *
                                  6 months to      6 months to     Year to 31st
                                31st July 2007   31st July 2006    January 2007
                                ______________   ______________    ____________
                                        
                                 £'000   £'000    £'000   £'000   £'000   £'000
Gains on Investments
Realised Gains on 
disposal of Investments             91              115             115

Unrealised Gains on 
investment revaluation      3    2,591            3,451           6,369
                                ______           ______          ______

                                         2,682            3,566           6,484

Income
Dividends                          491              419             825
Income from Loans and            
receivables                        355              215             453
Fees receivable                    406              374             749
                                ______           ______          ______

OPERATING INCOME                         1,252            1,008           2,027


Operating expenses                      (1,139)          (1,106)         (2,260)
                                       _______           ______         _______

OPERATING PROFIT                         2,795            3,468           6,251


Bank Interest receivable 
and similar income                  91              167             347
Interest payable and        
similar charges                    (15)             (17)            (33)
Carried Interest Provision  6       50             (120)           (253)
Exchange Movements                 (11)              20              45
                                ______           ______          ______                                        
                                           115               50             106
                                       _______           ______         _______


PROFIT ON ORDINARY ACTIVITIES          
BEFORE SHARE BASED PROVISIONS            2,910            3,518           6,357


Share Based Provisions      7             (131)             (94)           (222)
                                       _______           ______         _______

PROFIT ON ORDINARY                   
ACTIVITIES BEFORE TAX                    2,779            3,424           6,135


Income Tax                  5             (588)            (957)         (1,619)

                                       _______           ______         _______
PROFIT ON ORDINARY
ACTIVITIES FOR THE PERIOD                2,191            2,467           4,516
                                       _______           ______         _______


Earnings Per Share
Basic (pence)                             0.07             0.08            0.15
Diluted (pence)                           0.07             0.07            0.13


* Restated for International Financial Reporting Standards, see note 2.




CONSOLIDATED BALANCE SHEET
AS AT 31ST JULY 2007


                                  Unaudited        Unaudited*       Audited*
                        Notes  31st July 2007   31st July 2006 31st January 2007
                               ______________   ______________  _______________      
                                
                                £'000   £'000    £'000   £'000   £'000   £'000

ASSETS

NON-CURRENT ASSETS

Office equipment,                    4                6               5
fixtures and fittings
Investments                 3   45,305           35,764          38,834
Loans and Receivables            4,134                -           3,091
                               _______           ______         _______

                                        49,443           35,770          41,930

CURRENT ASSETS

Trade and Other receivables      1,271            3,692           1,056
Cash and Cash equivalents        1,880            7,424           6,989
                               _______           ______         _______

                                         3,151           11,116           8,045

LIABILITIES

NON-CURRENT
LIABILITIES
Loans and Other payables             -                -               -

Carried Interest Provision  6   (1,000)            (917)         (1,050)
Deferred Tax Liabilities    5   (7,698)          (6,448)         (7,110)
                               _______           ______         _______

                                        (8,698)          (7,365)         (8,160)

CURRENT LIABILITIES

Trade and Other payables          (969)          (1,102)         (1,209)
                                _______           ______         _______

                                          (969)          (1,102)         (1,209)

                                       _______           ______         _______

NET ASSETS                              42,927           38,419          40,606
                                       _______           ______         _______



EQUITY

Called up share capital                 2,929             2,928           2,929
Share premium                           9,370             9,361           9,370
Shares to be issued                       353                94             222
Fair Value Reserve                     20,216            16,093          18,215
Reverse acquisition reserve               393               393             393
Distributable Reserve                   9,666             9,550           9,477
                                       _______           ______         _______

TOTAL EQUITY                           42,927            38,419          40,606
                                       _______           ______         _______


* Restated for International Financial Reporting Standards, see note 2.




CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIOD ENDED 31ST JULY 2007

                                                   Unaudited       Unaudited
                                                 31st July 2007  31st July 2006
                                                 ______________  ______________

                                                          £'000           £'000

Cash inflow/(outflow) from operating activities

Interest received on loans to Investees                     355             215
Dividends Received                                          491             419
Fees Received from investment activity                      406             374
Operating Expenses                                       (1,138)         (1,084)
(Increase) / Decrease in Debtors                           (214)            270
Increase / (Decrease) in Creditors                         (240)           (631)
                                                         ______          ______

Net Cash outflow from operating activities                 (340)           (437)
                                                         ______          ______


Net cash generated from / (used in) investing activity

Purchase of Property, plant and equipment.                    -               -
Purchase of Investments                                  (3,929)         (3,815)
Proceeds from Investments                                    91             387
                                                         ______          ______

Net cash out flow from investing activities              (3,838)         (3,428)
                                                         ______          ______


Net cash generated from / (used in) financing activities

Repayment of Long - term borrowings                           -          (2,500)
Proceeds from issue of shares                                 -          11,019
Placement costs                                               -            (874)
(Payments) / Repayments of Loans to / (from) Investee 
Companies                                                  (995)          2,390
Interest received                                            91             167
Interest paid                                               (15)            (17)
                                                         ______          ______

Net cash outflow of financing activities                   (919)         10,185
                                                         ______          ______

Change in Cash and cash equivalents                      (5,097)          6,320
Cash and cash equivalent at beginning of the period       6,989           1,084
FX Loss on Escrow accounts                                  (12)             20
                                                         ______          ______

Cash and cash equivalents at end of period.               1,880           7,424



RECONCILIATION IN MOVEMENT IN EQUITY
FOR THE PERIOD ENDED 31ST JULY 2007

                                6 months to     6 months to      12 months to
                              31st July 2007  31st July 2006  31st January 2007
                              ______________  ______________  _________________

                                       £'000           £'000              £'000

Opening total Equity                  40,605          25,712             25,712
Total Recognised income and 
expense for period                     2,191           2,467              4,516
Dividends                                  -               -                  -
Issue of Shares                            -          13,134             13,143
Shares to be Issued                      131              94                222
Placement Costs                            -            (845)              (845)
Acquisition of subsidiary undertaking      -          (2,143)            (2,143)
                                      ______          ______             ______ 

Total Equity                          42,927          38,419             40,605
                                      ______          ______             ______ 



NOTES TO THE ACCOUNTS
FOR THE PERIOD ENDED 31ST JULY 2007


1. ACCOUNTING POLICIES

Basis of preparation of financial statements

The next annual financial statements of B.P. Marsh and Partners Plc ('the
Group') will be prepared in accordance with International Financial Reporting
Standards (IFRS) as adopted for use in the EC applied in accordance with the
provisions of the Companies Act 1985.

Accordingly, the interim financial information in this report has been prepared
using accounting policies consistent with IFRS. IFRS is subject to amendment and
interpretation by the International Accounting Standards Board (IASB) and the
International Financial Reporting Interpretation Committee (IFRIC) and there is
an ongoing process for review and endorsement by the European Commission. The
financial information has been prepared on the basis of IFRS that the directors
expect to be applicable as at 31st January 2008.

The financial information has been prepared under the historic cost convention
as modified by the revaluation of fair value through the profit and loss
investments. The principal accounting policies set out below have been
consistently applied to all periods presented.

The financial information contained in this interim statement has not been
audited or reviewed by the Group's Auditors and does not constitute statutory
accounts within the meaning of section 240 of the Companies Act 1985. They have
been prepared using accounting policies applicable to the year ended 31 January
2007 apart from IFRS. Those accounts, upon which the Group's Auditors issued an
unqualified opinion, have been filed with the Registrar of Companies.


IFRS Transition

IFRS 1 permits companies adopting IFRS for the first time to take certain
exemptions from the full requirements of IFRS in the transition period. The
interim financial information has been prepared on the basis of the following
exemptions:

Business combinations prior to 1st January 2006 have not been restated to comply
with IFRS 3 'Business Combinations'.

IFRS 2 'Share based payments' has been applied retrospectively to those options
that were issued after 7 November 2002 and had not vested by 1st January 2006.

The disclosures required by IFRS 1 concerning the transition from UK GAAP to
IFRS are given in note 2.


Investments

All investments are designated as 'fair value through profit or loss' assets and
are initially recognised at the fair value of the consideration. They are
measured at subsequent reporting dates at fair value.

The Board conducts the valuations of investments. In valuing investments the
Board applies guidelines issued by the British Venture Capital Association
(BVCA). The following valuation methodologies have been used in reaching fair
value of investments, some of which are in early stage companies:

a)   at cost, unless there has been a significant round of new equity finance 
     in which case the investment is valued at the price paid by an independent
     third party. Where subsequent events or changes to circumstances indicate 
     that an impairment may have occurred, the carrying value is reduced to 
     reflect the estimated extent of impairment;

b)   by reference to underlying funds under management;

c)   by applying appropriate multiples to the earnings and revenues of the
     investee company; or

d)   by reference to expected future cashflow from the investment where a
     realisation or flotation is imminent.

Both realised and unrealised gains and losses arising from changes in fair value
are taken to the income statement for the year, with transaction costs on
acquisition or disposal of investment expensed.


Taxation

The tax expense represents the sum of the tax currently payable and any deferred
tax.

The tax currently payable is based on the estimated taxable profit for the year.
Taxable profit differs from net profit as reported in the income statement
because it excludes items of income or expense that are taxable or deductible in
other years and it further excludes items that are never taxable or deductible.
The Group's liability for current tax is calculated using tax rates that have
been enacted or substantially enacted by the balance sheet date.

Deferred tax is the tax expected to be payable or recoverable on differences
between the carrying amounts of assets and of liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable
profit, and it is accounted for using the balance sheet liability method.
Deferred tax liabilities are generally recognised for all taxable temporary
differences and deferred tax assets are recognised to the extent that it is
probable that taxable profits will be available against which deductible
temporary differences can be utilized. Such assets and liabilities are not
recognised if the temporary differences arise from goodwill or from the initial
recognition (other than in a business combination) of other assets and
liabilities in a transaction that affects neither the taxable profit nor the
accounting profit.

Deferred tax liabilities are recognised for taxable temporary differences
arising on investments in subsidiaries, except where the Group is able to
control the reversal of the temporary difference and it is probable that the
temporary difference will not reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at each balance sheet
date and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the asset to be
recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled or the asset realised. Deferred tax is
charged or credited to profit or loss, except when it relates to items charged
or credited directly to equity, in which case the deferred tax is also dealt
with in equity.

Deferred tax assets and liabilities are offset when there is a legally
enforceable right to set off current tax assets against current tax liabilities
and when they relate to income taxes levied by the same taxation authority and
the Group intends to settle its current assets and liabilities on a net basis.


Bonus provision

There is no contractual obligation on the company to pay bonuses to employees
and as such no provision has been made in the operating expenses within the
income statement for the period to 31st July 2007 (as per the interims to 31st
July 2006). However, the income statement to 31st January 2007 does include such
provision where discretionary awards were made for the year-end.


2. TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)

B.P. Marsh & Partners Plc reported under UK GAAP in its previously published
financial statements for the year ended 31st January 2007. The analysis below
shows a reconciliation of net assets and profit as reported under UK GAAP as at
31 January 2007 to the revised net assets and profits under IFRS as reported in
these financial statements. In addition, there is a reconciliation of net assets
under UK GAAP to IFRS at the transition date for this company, being 1 February
2006. There is also a reconciliation of net assets under UK GAAP to IFRS at the
comparative interim date, being 31 July 2006.



Reconciliation of Equity                  Previous      Effect of          IFRS
at 31st January 2007                         GAAP   Transition to IFRS
                                             £'000          £'000         £'000

ASSETS

NON-CURRENT ASSETS

Office equipment, fixtures and fittings          5                -           5
Investments                                 37,784            1,049      38,833
Loans and Receivables                        3,091                -       3,091
                                            ______            _____      ______  

                                            40,880            1,049      41,929
                                            ______            _____      ______  

CURRENT ASSETS

Trade and Other receivables                  1,056                -       1,056
Cash and Cash equivalents                    6,989                -       6,989
                                            ______            _____      ______  

                                             8,045                -       8,045
                                            ______            _____      ______  

LIABILITIES

NON-CURRENT LIABILITIES
Loans and Other payables                         -                -           -
Carried Interest Provision                       -           (1,050)     (1,050)
Deferred Tax Liabilities                         -           (7,110)     (7,110)
                                            ______            _____      ______  

                                                 -           (8,160)     (8,160)
                                            ______            _____      ______  

CURRENT LIABILITIES

Trade and Other payables                    (1,209)               -      (1,209)
                                            ______            _____      ______  

NET ASSETS                                  47,716           (7,111)     40,605
                                            ======            =====      ======
                                            
EQUITY

Called up share capital                      2,929                -       2,929
Share premium                                9,370                -       9,370
Shares to be issued                            222                -         222
Fair Value Reserve                          25,324           (7,110)     18,214
Reverse acquisition Reserve                    393                -         393
Distributable Reserve                        9,478               (1)      9,477
                                           _______           _______     ______

TOTAL EQUITY                                47,716           (7,111)     40,605

                                           =======           =======     ======



Reconciliation of Equity                  Previous      Effect of          IFRS
at 31st July 2006                           GAAP   Transition to IFRS
                                           £'000          £'000           £'000

ASSETS

NON-CURRENT ASSETS

Office equipment, fixtures and fittings        6              -               6
Investments                               34,847            917          35,764
Loans and Receivables                          -              -               -
                                          ______         ______          ______

                                          34,853            917          35,770
                                          ______         ______          ______


CURRENT ASSETS

Trade and Other receivables                3,692              -           3,692
Cash and Cash equivalents                  7,424              -           7,424
                                          ______         ______          ______

                                          11,116              -          11,116
                                          ______         ______          ______

LIABILITIES

NON-CURRENT LIABILITIES
Loans and Other payables                       -              -               -
Carried Interest Provision                     -           (917)           (917)
Deferred Tax Liabilities                       -         (6,448)         (6,448)
                                          ______         ______          ______

                                               -         (7,365)         (7,365)
                                          ______         ______          ______

CURRENT LIABILITIES

Trade and Other payables                  (1,102)             -          (1,102)
                                          ______         ______          ______

NET ASSETS                                44,867         (6,448)         38,419
                                          ======         ======          ======


EQUITY

Called up share capital                    2,928              -           2,928
Share premium                              9,361              -           9,361
Shares to be issued                           94              -              94
Fair Value Reserve                        22,541         (6,448)         16,093
Reverse acquisition Reserve                  393              -             393
Distributable Reserve                      9,550              -           9,550
                                          ______         ______          ______

TOTAL EQUITY                              44,867         (6,448)         38,419
                                          ======         ======          ======



Reconciliation of Equity                 Previous       Effect of          IFRS
at 31st January 2006                        GAAP     Transition to IFRS
                                           £'000          £'000           £'000

ASSETS

NON-CURRENT ASSETS

Office equipment, fixtures and fittings        8              -               8
Investments                               27,700            797          28,497
Loans and Receivables                      3,231              -           3,231
                                          ______         ______          ______

                                          30,939            797          31,736
                                          ______         ______          ______


CURRENT ASSETS

Trade and other receivables                3,413              -           3,413
Cash and Cash equivalents                  1,084              -           1,084
                                          ______         ______          ______

                                           4,497              -           4,497
                                          ______         ______          ______

LIABILITIES

NON-CURRENT LIABILITIES
Loans and Other payables                  (2,500)             -          (2,500)
Carried Interest Provision                     -           (797)           (797)
Deferred Tax Liabilities                       -         (5,491)         (5,491)
                                          ______         ______          ______

                                          (2,500)        (6,288)         (8,788)
                                          ______         ______          ______

CURRENT LIABILITIES

Trade and Other payables                  (1,733)             -          (1,733)

NET ASSETS                                31,203         (5,491)         25,712



EQUITY

Called up share capital                    2,520              -           2,520
Share premium                                 17              -              17
Shares to be issued                            -              -               -
Fair Value Reserve                        19,209         (5,491)         13,718
Reverse acquisition Reserve                    -              -               -
Distributable Reserve                      9,457              -           9,457
                                          ______         ______          ______

TOTAL EQUITY                              31,203         (5,491)         25,712
                                          ======         ======          ======



Reconciliation of net Profits
As at 31st January 2007
                                                                          £'000

Profit under UK GAAP                                                         20
Unrealised Gains on Investments                                           6,369
Stamp Duty expenses                                                          (1)
Carried Interest Provision                                                 (253)
Deferred Taxation                                                        (1,619)
                                                                         ______

Profit Under IFRS                                                         4,516

                                                                         ======


Reconciliation of net Profits
As at 31st July 2006
                                                                          £'000

Profit under UK GAAP                                                         92
Unrealised Gains on Investments                                           3,452
Carried Interest Provision                                                 (120)
Deferred Taxation                                                          (957)
                                                                         ______

Profit Under IFRS                                                         2,467

                                                                         ======



3. NON-CURRENT ASSET INVESTMENTS



Group Investments            31st July 2007   31st July 2006  31st January 2007
                             ______________   ______________  _________________
 
                                      £'000            £'000              £'000     
                                                                    
At valuation                                                        
At 1st February                      38,834           28,497             28,497     
Additions                             3,930            3,815              3,968     
Disposal                                (50)               -                  -       
Movement in valuation                 2,591            3,452              6,369     
                                     ______           ______             ______

At 31st January                      45,305           35,764             38,834     
                                     ======           ======             ======

At cost                                                             
At 1st February                      12,460            8,491              8,491          
Additions                             3,930            3,815              3,969          
Disposal                                (50)               -                  -              
                                     ______           ______             ______
                             
At 31st January                      16,340           12,306             12,460         
                                     ======           ======             ======                             



The investee companies, which are registered in England except Summa Insurance
Brokerage S.L. (Spain), Preferred Asset Management Ltd (Jersey) and New Horizons
Ltd (Isle of Man), are as follows :


                       % Holding     Date     Aggregate   Post Tax
                        Of share    audited    capital  Profit/(loss)
                         capital  information    and       for the   Principal 
  Name of company                 Available to Reserves      year    activity
                       _________  ___________  ________  _________   _________

                                                  £            £

  Berkeley Insurance       19.90    31.10.06     80,000    24,000   Insurance 
  (Holdings) Limited                                                holding
                                                                    company

 Besso Holdings Limited    23.55    31.12.06  8,580,455   125,635   Investment
                                                                    holding
                                                                    company

  HQB Partners Limited     28.00    31.12.06    304,570   302,484   Investor
                                                                    relations
                                                                    consultants

   Hyperion Insurance      27.89    30.09.06 11,318,000 2,946,000   Insurance 
      Group Limited                                                 holding
                                                                    company

 JMD Specialist Insurance  25.00    31.10.06   150,787     35,260   Insurance 
      Services Ltd                                                  sector      
                                                                    consultants

   LEBC Holdings Ltd       22.50    31.05.06   701,201    402,834   Independent
                                                                    Financial
                                                                    Advisory 
                                                                    Company

 Paterson Martin Limited   22.50    31.12.06   504,113    110,016   Actuarial
                                                                    insurance/
                                                                    reinsurance
                                                                    consultants

 Portfolio Design Group    20.00    31.12.06 5,228,504  1,672,080   Fund 
 International Limited                                              managers 
                                                                    of traded 
                                                                    endowment
                                                                    policies

  Morex Commercial Ltd     20.00    31.07.06  (493,864)   788,943   Trading in
                                                                    secondary 
                                                                    life
                                                                    policies

     Preferred Asset       20.00    30.09.06    267,753     72,672  Fund 
     Management Ltd                                                 management
                                                                    company

    New Horizons Ltd       20.00    31.12.04        654        Nil  Investment
 (formerly Surrenda-Link                                            holding 
     Nominees Ltd)                                                  company

  Principal Investment     18.57    31.12.06  5,394,000  1,435,000  Fund 
    Holdings Limited                                                management
                                                                    company

 Public Risk Management    44.00    31.12.06   (277,057)     3,943  Public
        Limited                                                     sector risk
                                                                    consultants

   Summa Insurance         35.00    31.12.05    385,361   (126,648) Consolidator 
   Brokerage, S.L.                                                  of regional
                                                                    insurance 
                                                                    brokers


Under FRS 25 the Paterson Martin Limited accounts have included the company's
22.5% interest as a long-term creditor. As this is in reality an equity
investment the aggregate capital and reserves shown have therefore been adjusted
to include this as equity and therefore part of the total shareholders' funds.

Under FRS 25 the HQB Consulting Limited accounts have included the company's 28%
interest as a long-term creditor. As this is in reality an equity investment the
aggregate capital and reserves shown have therefore been adjusted to include
this as equity and the profit has been adjusted by the dividend paid out.

Under FRS 25 the Hyperion Insurance Group Limited accounts have included their
Preferred Ordinary Shares as a long-term creditor. As this is in reality equity
the aggregate capital and reserves shown have therefore been increased by
£4,125,000 to include this as equity and the profit has been increased by
£200,000, which relates to the dividend paid out.


4. LOAN COMMITMENTS

On 31st January 2005 the Group entered into an agreement to provide a loan
facility of €1,500,000 to Summa Insurance Brokerage S.L, an associated company
and a company incorporated in Spain. On 29th January 2007 this was increased to
€2,000,000. As at 31st January 2007 €400,000 of this facility had been drawn
down with the remainder being drawn down on 19th February 2007.

On 5th March 2007 the company entered into a loan agreement to provide a loan
facility of £250,000 to JMD Specialist Insurance Services Ltd an associated
company. At 31st July 2007 the loan facility had not been drawn down.

On 15th April 2004 the Group entered into an agreement to provide a loan
facility of £300,000 to Paterson Martin Limited, an associated company. On 31st
July 2007 £200,000 of this facility had been drawn down. This loan is repayable
on 31st March 2008.

On 7th February 2005 the Group entered into an agreement to provide a loan
facility of £140,000 to HQB Partners Limited, an associated company. As at 31st
July 2007 £80,000 of this facility had been drawn down.


5. CONTINGENT LIABILITIES

The Directors estimate that, if the Group were to dispose of all its investments
at the amount stated in the Balance Sheet, £7.7m (2006: £6.4m) of tax on capital
gains would become payable by the Group at the current corporation tax rate of
30%. No account has been made of the proposal to reduce this rate to 28% from
April 2008.

The Group has entered into long-term incentive arrangements with certain
employees. Provided the employees remain in employment with the Group as at 1st
November 2010 the Group has agreed to pay bonuses totaling £250,000 plus
Employers' National Insurance. £50,000 of this is currently funded through an
Employee Benefit Trust.

On 10th April 2007 the Group acquired a 22.5% shareholding in LEBC Holdings
Limited for an initial consideration of £1,783,250 with a potential further
payment of up to £182,250 based upon their subsidiary company's audited 31st May
2007 accounts.


6. DIRECTOR'S INTEREST IN CONTRACTS

S.S. Clarke is entitled to a maximum of 20% of any gain, after deducting
expenses and following the repayment of all loans, the redemption of all
preference shares, loan stock and equivalent finance provided by the Group, on
the sale of certain agreed investments of the Group and its subsidiaries.

No amounts were paid under this contract during the year (2006: £nil).

In the accounts to 31st January 2007 the valuations of these certain agreed
investments of the Group and its subsidiaries were reduced by the respective
entitlements to S.S. Clarke. However, under IFRS a provision has now been
included within the balance sheet with any period movements expensed through the
income statement and thus the investments are now shown gross.


7. SHARE BASED PAYMENT ARRANGEMENTS

During the year ended 31 January 2007, B.P. Marsh & Partners Plc entered into a
share-based payment arrangement with certain employees and advisors. The details
of the arrangements are described in the following table:


Nature of the         Share options   Share options                       Share 
arrangement              granted to      granted to                appreciation 
                           advisors        advisors                      rights            
_____________         _____________   _____________            ________________

Date of grant       2 February 2006 9 February 2006               19 April 2006

Number or instruments                                                                        
granted                      17,857          17,857                   4,392,921

Exercise price (pence)       140.00          140.00                      140.00

Share price at grant (pence) 150.50          150.50                      150.50

Vesting period (years)            5               5    Units vest 10 days after
                                                            results to 31/01/09
                                                        reported, i.e. approx 3
                                                                          years

Vesting conditions             None            None        50% vest if IRR over
                                                      exercise price exceeds 5%
                                                           and 100% vest if IRR
                                                      exceeds 8% after 3 years.
                                                        Between 5% and 8% it is
                                                                      pro-rata.

Option Life (years)               5               5                        3.34

Expected volatility              15%             15%                         15%

Risk free rate                  4.2%           4.15%                       4.52%

Expected dividends                                                                          
expressed as a                                                                     
dividend yield                    0%              0%                          0%


Settlement                    Shares          Shares                     Shares

% expected to vest (based                                                                        
upon leavers)                   100%            100%                         80%

Number expected to vest      17,857          17,857                   3,514,337

Fair value per granted                                                                            
instrument (pence)            41.90           41.20                       23.50

Charge for period ending                                                                      
31 July 2007 (£)                  -               -                    £130,667

Valuation model       Black-Scholes   Black-Scholes                   Trinomial

 

The Company admitted its shares for trading on AIM on 2nd February 2006 and
consequently, at the date of valuation of the options, little historical price
data existed. As a consequence the volatilities of quoted companies that the
directors considered to be the most comparable to the Group were used to
determine the Group's expected volatility over the life of the options.

The risk free rates are based on the yield on UK Government Gilts of a term
consistent with the assumed option life.

No options were exercised during the period. 878,583 share appreciation rights
representing 20% of the available units originally granted were forfeited before
31st January 2007. The expected number of units to vest has therefore been
adjusted accordingly with no further expectation of forfeiture over the
remaining life of the option.



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