LEBC’s majority shareholder B.P. Marsh & Partners has reduced the valuation of its holding in the group by 33%, following its withdrawal from the defined benefit (DB) transfer market.
According to the group’s interim results for the six month period to 31 July 2019 published today (15 October), the group still holds a 59.3% stake in LEBC.
This was valued at £35.5m in January, with the new cut giving the stake a value of £40.3m down from £59.9m six months prior.
The July results noted the reduced valuation was a “consequence” of LEBC’s voluntary withdrawal from the market, which was announced at the start of September.
The national advisory firm voluntarily agreed with the Financial Conduct Authority (FCA) to alter its regulatory permissions as DB transfers have continued to attract negative attention in the advice space.
B.P. Marsh & Partners’ interim results noted LEBC is still expected to produce annual revenue of around £19m alongside an “acceptable underlying profit position”.
It added: “In line with its successful long-term investment strategy, the group will continue to support LEBC as it evolves as a business, which provides a range of financial solutions for the benefit of its customers, staff and shareholders.
“LEBC has implemented a significant restructuring and is working on a number of initiatives, some of which have already been implemented, including its bionic advice offering.
“The group will work closely with LEBC’s management team to return LEBC to the position it was in before the withdrawal from the DB market.”