Further Investment in Nexus
Date: 15 December 2016
On behalf of: B.P. Marsh & Partners Plc
Immediate release
B.P. Marsh & Partners Plc
("B.P. Marsh", "the Company" or "the Group")
Further Investment in Nexus Underwriting Management Limited
B.P. Marsh & Partners Plc (AIM: BPM), the niche venture capital provider to early stage financial services businesses, is pleased to announce that it has acquired a further 6.87% in Nexus Underwriting Management Limited ("Nexus"), an independent specialty Managing General Agency ("MGA"), for a total consideration of £4.0m.
B.P. Marsh has acquired 219,178 A Ordinary shares of Nexus, from Colin Thompson and Ian Whistondale, two of the founding shareholders. This acquisition takes B.P. Marsh's shareholding in Nexus to 18.8%.
B.P. Marsh made an initial investment into Nexus in August 2014, acquiring 5%, and since then has acquired additional interests by means of successive follow-on investments in June 2015 and December 2015. Since B.P. Marsh's original investment, Nexus has grown from premium income of £60m in 2014 to in excess of £120m (forecast) in 2016. In regard to Commission Income, this has grown from £13m in 2014 to a forecast of £20m in 2016.
Nexus is one of the largest independent specialty MGAs in the London Market. It operates across a number of specialist insurance sectors, including Financial Lines, Trade Credit & Political Risk, Surety, Bond, Marine, Accident & Health and various other niche areas of insurance, where its expert skills come to the fore.
Dan Topping, the Company's Chief Investment Officer and nominee director on the Board of Nexus, stated "We are very pleased to take this further stake in Nexus. We consider the business to be capable of strong and sustainable growth over the coming years and look forward to continuing to work with the Management Team to achieve this. A partnership with B.P. Marsh not only brings capital, but also the expertise and support of our people and the opportunities delivered by our network, and we believe this has been demonstrated by Nexus's development during the two years of our investment."
Colin Thompson, the Chairman of Nexus, stated "This transaction provides an opportunity to rebalance our shareholder base, which is crucial for us as we move forward. It is also indicative of the demand that exists for investment in Nexus, especially as our EBITDA for 2016 will surpass £5m and is planned to exceed £7m next year. In addition, we have a number of exciting M & A opportunities which we hope to conclude on during Q1 next year. It is therefore important that we start organising our capital base appropriately to take into account where we are now heading."
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
Atholl Tweedie / Adam James / Charles Leigh-Pemberton +44 (0)20 7886 2500
Notes to Editors:
About B.P. Marsh & Partners Plc
B.P. Marsh's current portfolio contains thirteen companies. More detailed descriptions of the portfolio can be found at www.bpmarsh.co.uk.
Since formation over 25 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.
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 and established herself as a central part of the management team.
In February 2015 she was appointed as a Director of B.P. Marsh and a member of the Investment Committee. In January 2016 Alice was appointed Managing Director of B.P. Marsh.
In her position as Managing Director, Alice is responsible for the overall performance of the Company and monitoring the Company's overall progress towards achieving the objectives and goals of the Company, as set by the Board.
Dan Topping is the Chief Investment Officer of B. P. Marsh, having been appointed as a Director in 2011. He joined the Company in February 2007, following two years at an independent London accountancy practice. Dan is the Senior Executive with overall responsibility for the portfolio and investment strategy of B.P. Marsh.
Dan graduated from the University of Durham in 2005 and is a member of the Securities and Investment Institute and the Institute of Chartered Secretaries and Administrators.
Dan is a standing member of the B.P. Marsh Investment and Valuation Committees and currently serves as a Board Director across the portfolio.
Camilla Kenyon was appointed as Head of Investor Relations at B.P. Marsh in February 2009, having four years' prior experience with the Company. She was appointed to the main board in 2011. Camilla is Chair of the New Business Committee evaluating new investment opportunities. She has a number of nominee directorships over two investee companies and is a standing member of the Investment Committee. She is a Member of the Investor Relations Society.
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. Jon graduated from the University of Sheffield with an honours degree in Business Studies and joined the Group in November 1999, following two years at Euler Trade Indemnity and two years at a Chartered Accountants. Jon is a Member of the Chartered Global Management Accountants, the Chartered Management Accountants and the Chartered Institute of Securities and Investment.
Jon was appointed a Director of B.P. Marsh & Company Limited in September 2001, and Group Finance Director in December 2003 and was instrumental in the admission of the Group to AIM in February 2006. Jon is a member of the B.P. Marsh Investment and Valuation Committees and currently serves as a Board Director for Walsingham Motor Insurance Limited, and provides senior financial support and advice to all companies within the Group's portfolio as well as evaluating new investment opportunities.
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