19 October 2021

B.P. Marsh & Partners Plc

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

Investee Company Update - CBC UK Limited

B.P. Marsh & Partners Plc (AIM: BPM), the specialist investor in early stage financial services businesses, is pleased to announce that Paladin Holdings Limited ("Paladin") the 100% Shareholder of CBC UK Limited ("CBC"), the independent Retail and Wholesale Lloyd's Insurance Broker, has successfully executed a refinancing and capital raise.

Refinancing

Following an introduction from the Group, CBC has secured £3,000,000 in financing facilities from Coutts & Company ("Coutts").

Coutts was founded in 1692 and is the eighth oldest bank in the world. The Professional and Financial Services team is one of the longest standing client groups within Coutts. Coutts forms part of NatWest Group Plc.

The £3,000,000 will be part utilised by CBC to repay £2,000,000 of debt provided by B.P. Marsh, the remaining £1,000,000 will be used to support CBC's ongoing growth.

Prior to this fundraising exercise, CBC had outstanding debt with B.P. Marsh amounting to £5,096,500. Following this refinance, CBC's outstanding debt with B.P. Marsh will decrease to £3,096,500. 

Background on B.P. Marsh Investment

B.P. Marsh first invested in CBC in February 2017, providing the capital that supported the management buy-out of the business.

At its most recent valuation on 31 July 2021, B.P. Marsh valued its 47.1% shareholding in CBC at £7,747,000, which represents an internal rate of return of 30.9% (including loans and fees) in the four and a half years since investment.

In its year ending 31 December 2020, CBC produced revenues of £8,679,482 and an EBITDA of £1,618,458, a significant increase on the prior year, and continuing the pattern since the Groups investment.

Commentary

CBC's Chairman Andrew Wallas stated that:-

"The ability for CBC to secure outside debt funding from such a respected institution indicates the development and strength of the business since B.P. Marsh first invested back in February 2017. This is testament to the work undertaken by CBC, with the assistance of B.P. Marsh, to bring about strong growth over the past number of years. With the ongoing support of our partners, existing and new, we are confident that CBC will continue on its growth trajectory over the coming years."

Commenting on the refinancing, the Group's Chief Investment Officer, Dan Topping stated:-

"B.P. Marsh were delighted to be able to introduce CBC to Coutts.

This is part and parcel of our investment ethos and an example of how we support portfolio companies as they go through their various stages of development.

With the ongoing support of the Group, alongside Coutts, we look forward to seeing CBC continue to grow over the coming years."

Notes to Editors:

B.P. Marsh's current portfolio contains seventeen 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.
Several of the directors have worked with each other in previous roles, and all have worked with each other for more than ten years.