Date:                     21^st October 2014

On behalf of:        B.P. Marsh & Partners Plc ("B.P. Marsh", "the Company" or

                             "the Group")

Embargoed until:  0700hrs

B.P. Marsh & Partners Plc

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

Interim Results

Interim Results Announcement for the period to 31st July 2014

B.P. Marsh & Partners PLC, the niche venture capital provider to high growth businesses, announces its unaudited Group final results for the six months to 31^st July 2014 (the "Period").

The financial highlights of the results are:

·    Net Asset Value ("NAV") of £59.8m (31^st July 2013: £56.9m)

·    Increase in the Equity value of the Portfolio of 5.0% in the Period (and an increase of 13.7% since 31^st July 2013)

·    Profit after tax (unaudited) of £1.7m (31^st July 2013: £1.4m)

·    Final Dividend for the year ended 31^st January 2014 of 2.75p per share paid in July 2014

·    Increase of NAV per share to 205p (31^st July 2013: 195p) 

·    Average NAV annual compound growth rate of 11.3% achieved since 1990

·    Current cash balance of £7.9m

Chairman's Statement

I am pleased to present the unaudited Consolidated Financial Statements of B.P. Marsh & Partners Plc for the six month period to 31^st July 2014.

During the period we have achieved a steady growth in the Equity value of the Portfolio, with an increase of 5.0% in the Period and an increase of 13.7% since 31^st July 2013, excluding realisation proceeds.

The Group has increased its NAV to £59.8m (205p per share), with an average annual compound NAV growth rate of 11.3% achieved since 1990. During the Period, the Group generated an unaudited profit after tax of £1.7m.

The interim period has been one of bedding in our most recent acquisitions, particularly our new investments in Australia. We consider this territory to present interesting opportunities for our investee companies located there in the coming months and years, given Australia's increasing importance to the Lloyd's of London market.

Closer to home, LEBC, the national IFA in which we have a 35% stake, has recorded another year of growth and profitability, as well as winning two prestigious awards. Similarly, our Lloyd's insurance intermediary investments are developing well, with Besso extending its international reach and recording another year of growth. 

Our Spanish investment, Summa, which has weathered stormy waters due to the Spanish economy over the past years, is making some encouraging progress and we hope that this will begin to gain traction as time goes on.

During the period we successfully realised our holding in the four PDGI businesses, which injected a further net £1m into our cash reserves after costs. We originally partnered with them in 1994 and supported these sister businesses through a diversification into Investment Management which commenced in 2002 and through a prolonged period of difficult trading, brought about by the global financial crisis in 2008.

Just after the period end we were very pleased to acquire a 5% stake in Nexus Underwriting Management Limited ("Nexus"), the independent specialty Managing General Agency (MGA), for a total consideration of £1.6m. We view Nexus as an exciting business with excellent growth prospects and look forward to partnering the Management team in developing the company in the coming months.

In recognition of the Group's consistent growth and future prospects, we were pleased to reward shareholders during the period with the payment on 25^th July 2014 of a final dividend of 2.75p per share, with the aspiration that we will continue to pay a final dividend of at least the same amount in the coming two years.

Business Update

Summary of Developments in the Portfolio

Disposals

Portfolio Design Group International Limited

The Group disposed of its respective stakes, to its fellow shareholders, in Portfolio Design Group International Limited, Morex Commercial Limited, Preferred Asset Management Limited and New Horizons Nominees Limited (together the "PDGI Businesses") on 1^st May 2014 for a combined cash consideration of £1.3m.

The Group considered this to be an opportune moment to exit and in keeping with the Company's strategy, delivering an internal rate of return of 24.5% per annum, including all income received.

This divestment delivered cash to the Group which has enabled it to undertake new opportunities. It has also allowed the PDGI Businesses to restructure their shareholder base accordingly and pursue new ventures as they see fit. 

Portfolio Developments

Besso Insurance Group Limited ("Besso")

Besso announced its 31^st December 2013 year end results, reporting an increase of brokerage income to £28.3m (2012: £24.0m), an uplift of over 17%, which is a solid achievement for Besso in what continues to be a challenging market. This increase was driven by all product lines. Overall turnover has increased during the year to £29.1m (2012: £26.2m), an improvement of 11.1%, with EBITDA increasing by 10% to £2.3m during 2013. 

Besso continues to build on its ambition to grow globally and on 1^st July 2014 received the appropriate licences to begin trading in its newly opened office in Rio de Janeiro, Brazil. Besso Brazil will provide a broad range of products including D&O, marine and specialist reinsurance products to its clients in Brazil, increasing the international reach from which its clients benefit.

This follows Besso's recent expansion into both the Middle East (Istanbul) and Australia.

LEBC Holdings Limited ("LEBC")

LEBC continues to perform well and in May 2014 announced its 30^th September 2013 year-end results, declaring a profit of £0.8m for the year, a 38% increase in profit over the year-ended 30^th September 2012 (£0.6m).

The Edinburgh-headquartered firm, which has 14 branches throughout the UK, also reported an increase in turnover of 8%, from £10.4m (in the year ended 30^th September 2012) to £11.3m (in the year ended 30^th September 2013).

In February 2014 LEBC won the prestigious 'Large [IFA] Firm of the Year' Award, and in March 2014 won, for the second year running, Money Marketing's 'Best Retirement Advisor' Award. 

MB Prestige Holdings PTY Limited ("MB")

Following the Group's investment, MB had a successful 2013, reporting revenues of AUD 3.9m and a pre-tax profit of AUD 0.8m.

The Group can report that it received a dividend of AUD 0.2m, being its proportion of MB's declared dividend for the 2013 year, which the Group considers a pleasing initial return on investment.

The Group has focused on working with MB, alongside its London insurance broking investments, to develop its product offering in the high net worth arena in Australia.

Trireme Insurance Group Limited ("Trireme")

On 18^th August 2014 US Risk (UK) Limited changed its name to Trireme Insurance Group Limited. The underlying businesses of Oxford Insurance Brokers Limited and James Hampden International Insurance Brokers Limited have retained their names. This re-branding coincided with Trireme moving into new offices at 6 Bevis Marks, enabling the Trireme businesses to operate from a single site.

On 29^th May 2014, the Group subscribed to its pro-rata proportion of a £1.2m Rights Issue in Trireme. Total consideration paid amounted to £0.4m for newly issued B Ordinary Shares with the Group maintaining its shareholding. The Rights Issue was undertaken to provide financial support for the on-going development of the business.

Post Period Acquisition

On 14^th August 2014 the Group announced that it had subscribed for a 5% Preferred Ordinary shareholding in Nexus Underwriting Management Limited ("Nexus"), the independent specialty Managing General Agency (MGA), for a total consideration of £1.6m. The funds will be used to assist the company in its growth ambitions.

Founded in 2008 by Colin Thompson, its CEO and Ian Whistondale, its Chairman, Nexus has grown rapidly in the six years since inception; from a standing start it has cumulatively underwritten in excess of US$350m Gross Written Premium. 

Nexus has two operating subsidiaries, Nexus Underwriting Limited, which underwrites Speciality Insurance Products (Directors & Officers, Professional Indemnity, Financial Institutions and Accident & Health), and Nexus CIFS Limited, which specifically covers Trade Credit Insurance.

Nexus is one of the largest independent specialty MGAs in the London Market with a forecast Premium income in excess of £60m in 2014 (£55m in 2013). Commission income has risen from £0.9m in 2008 to a forecast of £13m in 2014, operating profit rising from £0.6m to a forecast of circa £3m over the same period.

The Group considered that the opportunity to invest in a well-established and fast-growing business, with on-going development potential and an experienced and ambitious management team, justified a smaller minority stake (at 5%) than is typical for the Company.

Dividend

The Group declared a final dividend of 2.75p per share on 24^th March 2014, which received shareholder approval at the Company's Annual General Meeting, held on 23^rd July 2014. The dividend was paid on 25^th July 2014 to Shareholders registered at the close of business on 27^th June 2014.

It remains the Board's aspiration to maintain at least this level of dividend for the years ending 31^st January 2015 and 31^st January 2016, subject to ongoing review and approval by the Board and the Shareholders.

The shift towards a regular dividend stream in recognition of the consistent growth and consolidation of the Group's investment portfolio demonstrates that the Group is an attractive capital and income investment.

The Management team remains positive about the Company's ability to generate long term returns from the existing investment portfolio, alongside an interesting pipeline of new investment opportunities.

Share Buy-Back

The Board continues to monitor and review the Group's buyback policy and considers that this strategy is worthwhile when the share price represents a significant discount to Net Asset Value. As such, during August 2014, the Group undertook a number of low volume daily share buy-backs.

Business Strategy

The Group typically invests amounts of up to £3m and only takes minority equity positions, normally acquiring between 15% and 45% of an investee company's total equity. Based on our current portfolio, the average investment has been held for approximately 8 years.

The Group usually requires its investee companies to adopt certain minority shareholder protections and appoint a director to its board.

Since 1990 the Group has generated an Average NAV annual compound growth rate of 11.3%. Its successful track record can be attributed to a number of factors that include a robust investment process, management's considerable sector experience and a flexible approach to exit.

Cash Balance

At the period end, the Group had £8.6m cash available for new investment opportunities after commitments. Currently the Group has a cash balance of £7.9m.

Outlook and New Business Opportunities

Insurance M&A activity continued to recover during the period and the Group received a strong flow of new opportunities in the sector, on both the broking and underwriting agent sides, in addition to financial services proposals in the retirement advisory, outsourcing and Software as a Service space.

During the period the Group received 27 new investment proposals. Of these, 17 fell within the insurance intermediary sector, one of the Group's specialist sectors.

The Group's investment strategy remains unchanged; to take minority positions in profitable businesses with strong management teams and good growth potential. We continue to see a number of investment opportunities with good management and business plans that would fit with our tried and tested business strategy and the Directors consider that the Group remains unique in its investment sector.

Brian Marsh OBE

20^th October 2014

Investments

As at 31st July 2014 the Group's equity interests were as follows:

Besso Insurance Group 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 Limited. The company specialises in insurance broking for the North American wholesale market and changed its name to Besso Insurance Group Limited in June 2011.

Date of investment: February 1995

Equity stake: 37.9%

31st July 2014 valuation: £8,388,000

The Broucour Group Limited

(www.turnerbutler.co.uk)

In March 2008 the Group assisted in establishing Amberglobe, a business sales platform that provides valuation and negotiation services for the sale of SME businesses in the sub £3m sector. In July 2012 Broucour was formed as a new holding company for Amberglobe, and the Group financed the acquisition of Turner Butler.

Date of investment: March 2008

Equity stake: 49.0%

31st July 2014 valuation: £249,000

Hyperion Insurance Group Limited

(www.hyperiongrp.com)

The Group first invested in Hyperion in 1994. Hyperion owns, amongst other things, an insurance broker specialising in directors' and officers' ("D&O") and professional indemnity ("PI") insurance. In 1998 Hyperion set up an insurance managing general agency specialising in developing D&O and PI business in Europe. The Group sold 80% of its holding to General Atlantic in July 2013, with the remaining holding being valued at the agreed option price.

Date of investment: November 1994

Equity: 2.5%

31st July 2014 valuation: £7,310,000

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: 34.9%

31st July 2014 valuation: £6,229,000

MB Prestige Holdings PTY Limited

(www.mbinsurance.com.au)

In December 2013 the Group invested in MB Prestige Holdings PTY Ltd, the parent Company of MB Insurance Group PTY a Managing General Agent, headquartered in Sydney, Australia. MB Group is recognised as a market leader in respect of prestige motor vehicle insurance in all mainland states of Australia.

Date of investment: December 2013

Equity stake: 40.0%

31st July 2014 valuation: £1,196,000

Randall & Quilter Investment Holdings plc

(www.rqih.com)

Randall & Quilter Investment Holdings is an AIM listed run-off management service provider and acquirer of solvent insurance companies in run-off. The Group invested in Randall & Quilter in January 2010, the result of a share exchange with the Group's shareholding in JMD Specialist Insurance Services Group Limited, which Randall & Quilter wholly acquired.

Date of investment: January 2010

Equity stake: 1.3%

31st July 2014 valuation: £1,490,000

Sterling Insurance PTY Limited

(www.sterlinginsurance.com.au)

In June 2013, in a joint venture enterprise alongside Besso, the Group invested in Sterling Insurance PTY Limited, an Australian specialist underwriting agency offering a range of insurance solutions within the Liability sector, specialising in niche markets including mining, construction and demolition.

Date of investment: June 2013

Equity stake: 19.7%

31st July 2014 valuation: £2,345,000

Summa Insurance Brokerage, S. L.

(www.grupo-summa.com)

In January 2005 the Group provided finance to a Madrid-based Spanish management team with the objective of acquiring and consolidating regional insurance brokers in Spain. Through acquisition Summa is able to achieve synergistic savings, economies of scale and greater collective bargaining thereby increasing overall value.

Date of investment: January 2005

Equity stake: 48.6%

31st July 2014 valuation: £2,805,000

Trireme Insurance Group Limited

(www.oxfordinsurancebrokers.co.uk)

(www.jhinternational.co.uk)

In June 2010 the Group invested in Trireme Insurance Group Limited (formerly known as US Risk (UK) Ltd). This company is the sole shareholder of Oxford Insurance Brokers, an insurance broking business, specializing in professional indemnity cover and James Hampden International Insurance Brokers, a specialist international reinsurance and insurance broking company.

Date of investment: July 2010

Equity stake: 29.3%

31st July 2014 valuation: £1,994,000

Walsingham Motor Insurance Limited

(www.walsinghamunderwriting.com)

In December 2013 the Group invested in Walsingham Motor Insurance Limited, a new niche UK Motor Managing General Agency. Walsingham was established in August 2012 and commenced trading in July 2013 having secured primary capacity from Calpe.

Date of investment: December 2013

Equity stake: 30.0%

31st July 2014 valuation: £300,000

These investments have been valued in accordance with the accounting policies on Investments set out in note 1 of the Consolidated Financial Statements.