6 June 2023

B.P. Marsh & Partners Plc

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

Use of Proceeds of Sale (£51.5m) and Strategy Update

B.P. Marsh and Partners Plc (AIM:BPM), the specialist private equity investor in early stage financial services businesses, is pleased to provide shareholders with an update regarding the intended use of proceeds that it expects to receive on the anticipated completion of the sale of its shareholding in Kentro Capital Limited ("Kentro"), as announced on 23 May 2023, in the amount of £51.5m (the "Kentro Proceeds").

Subject to completion and receipt of the Kentro Proceeds, the Board is pleased to confirm the following:

1)  Special dividend

A special dividend in respect of the current year of £1m in the aggregate, representing 2.78p per share. Further information regarding the proposed payment date will be announced in due course.

This special dividend equates to 1.9% of the Kentro Proceeds being returned to shareholders.

2)  New dividend policy

In addition to the above, the Group announces its dividend policy for the financial years 2024, 2025 and 2026, whereby its aspiration will be to distribute an aggregate cash dividend of £2m each year for the three years. These will be payable in two equal instalments in February and July of each year commencing in the year beginning 1 February 2024, subject to Shareholder Approval at the Company's Annual General Meeting each year.

This new dividend policy equates to a further 11.6% of the Kentro Proceeds being returned to shareholders.

3)  Share buy-back policy

Additionally, the Group plans to commit a further £6m to share buy-backs, with more information to follow in due course with regard to mechanics and how best to deliver this.

This buy-back policy would equate to a further 11.6% of the Kentro Proceeds being returned to shareholders.

The special dividend, further dividend policy and the new share buy-back policy represents an intention to return up to a total of £13m in cash, or 25% of the Kentro Proceeds, to shareholders over the next three years.

For the avoidance of doubt, the Company still expects to recommend an additional 1.39p per share (£0.5m) final dividend for the year ending 31 January 2023, as previously announced. This will be paid following shareholders' approval at the Company's Annual General Meeting, expected to take place in July 2023. As announced on 16 January 2023, the Group paid an interim dividend for the year ending 31 January 2023 of 1.39p per share (£0.5m) on 28 February 2023 to all shareholders on the register on 27 January 2023.

Ongoing Strategy

The Group has a stated objective, which is to make minority investments in attractive opportunities in the financial services sector, and typically takes an equity stake of between 15% and 45%.

The investment goal remains unchanged:

The Group continues to see a high number of potential new business opportunities, and received 60 new business enquiries in the year which ended on 31 January 2023. This was an increase from 48 enquiries in the preceding year. In view of the Group's favourable cash position, it remains ready to take advantage of opportunities emanating from the financial services industry generally, and the insurance market specifically.

Current opportunities under consideration include (but are not limited to) the following:

Given the potential opportunities in the Group's key market, and the track record of Net Asset Value growth, the Board agrees that it is in the long-term interests of shareholders to continue to develop the business and reinvest the Kentro Proceeds into both its existing portfolio and into new ventures within its investment criteria. This has been its philosophy since formation and remains unchanged. This strategy will take place alongside a return to shareholders, via the aforementioned increased dividends and share buy-backs.

The Group expects to make further investments over the course of its current financial year to 31 January 2024.

The Group's Chairman, Brian Marsh OBE stated: "Following the expected successful completion of the sale of Kentro, the Board is pleased to recognise shareholder support through the proposed return of £1m to shareholders in the form of a special dividend this year, and in a strengthened dividend policy and share buy-back policy.

"The Group is well capitalised, debt free and has a strong pipeline of new investment opportunities, alongside expectations of growth within the existing portfolio, which underpin the Group's confidence in its ongoing strategy."

This announcement contains inside information.

For further information:

Results:

The Group will be announcing its Annual Results for the year ended 31 January 2023, on 13 June 2023.

There will be an analyst call on the day at 10:00am BST. Any analysts wishing to join the call should register to receive an invitation by emailing bpmarsh@tavistock.co.uk.

The Company will also provide a live presentation for all existing and potential shareholders via the Investor Meet Company platform on 15 June 2023 at 11:00am BST.

Questions can be submitted pre-event via your Investor Meet Company dashboard up until 09:00am BST the day before the meeting or at any time during the live presentation. Investors can sign up to Investor Meet Company for free and add to meet B.P. Marsh & Partners Plc via:

https://www.investormeetcompany.com/bp-marsh-partners-plc/register-investor.

Investors who already follow B.P. Marsh & Partners Plc on the Investor Meet Company platform will automatically be invited.

Notes to Editors:

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

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