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Bargain Shares 2024: Hidden value will soon boost this share price

This insurance sector investment company has a strong track record of delivering eye-catching returns for shareholders
February 8, 2024

Aim: Share price: 416p

Bid-offer spread: 412-420p

Market value: £154.8mn

  • Net cash of £93.7mn (261p)
  • Pro-forma NAV of £214.8mn (598p)
  • Strong investment gains expected at annual results
  • Paladin earn-out potentially worth 50p a share
  • Dividend per share to be hiked 263 per cent to 11p

The shrewd management team behind Aim-traded insurance sector investment company BP Marsh & Partners (BPM) has an enviable track record of delivering eye-catching returns for shareholders.

Founded in 1990 by chairman and 40.6 per cent shareholder Brian Marsh, the company has invested in 57 companies to date with mightily impressive results. Having raised £10.1mn net proceeds when listing the shares on Aim in September 2006, BP Marsh’s NAV had increased five-fold to £203.5mn when the company released interim results last summer. The only other capital raise in the 17-year period was a placing and open offer in July 2018 which raised £16.6mn. This means 90 per cent of the increase in shareholder value has been delivered through astute investments.

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