British Business Investments – full year results for the period ending 31 March 2017
British Business Investments (British Business Bank Investments Limited) reports strong results with a pre-tax profit of £55.1m – an increase of 37% year on year – ahead of target with a strong pipeline of further investments planned
British Business Investments, the commercial arm of British Business Bank plc, today announces its annual results for the period to 31 March 2017.
The results demonstrate significant growth in gross annual income and pre-tax profits (£60.5m and £55.1m respectively). The gross return on average capital employed for the period (7.4%, or 6.7% net of costs) is ahead of the benchmarks set for the business by its shareholder, the British Business Bank plc.
Highlights for the full year to 31 March 2017:
- Gross annual income of £60.5m, delivering a pre-tax profit of £55.1m – an increase of 37% on the year end 31 March 2016
- Gross return on average capital for the year was 7.4%, or 6.7% net of costs – both ahead of benchmark targets
- Total dividend of £40.0m paid to the shareholder, British Business Bank plc
- Supporting 17,719 businesses across the UK as at 31 March 2017 – an increase of 45% year on year
- £868m invested, alongside £6.3bn of private sector capital, across 38 business finance providers
- A major expansion of the VC Catalyst Programme, through a £400m allocation announced in the 2016 Autumn Statement
British Business Investments invests in challenger banks, non-bank lenders and venture and growth capital funds to increase the choice of finance for smaller and medium sized businesses, generating an attractive commercial return on investment for the UK taxpayer and at the same time having an economic impact by improving finance markets for small and medium sized businesses.
Catherine Lewis La Torre, Chief Executive Officer of British Business Investments, said: “As we complete our third year of operations, British Business Investments has again produced tangible, impressive results, meeting our strategic and commercial objectives.
“Our latest investments have enabled us to extend our support for innovative and alternative finance in the market and to increase the supply of capital to ambitious small and medium-sized businesses. Our work helps to ensure that this broad group of businesses, who are key drivers of the country’s productivity and employment creation, can find the appropriate funding they need to meet their capital investment and growth plans.
“Our Annual Report 2016/17 demonstrates the strength of our investment portfolio as well as the efficiency of our operations. Our success is due to the commitment and hard work of our team and I look forward to building on this further as we address the challenges and opportunities of the year ahead.”
Keith Morgan, Chairman of British Business Investments, said: “Over the past year, British Business Investments has become recognised as an important enabler of new and diverse finance options for smaller businesses, as a result of its strong and growing track record of success.
“Across our growing portfolio, we are increasing the diversity of the finance market and helping to deliver a range of funding to smaller and medium sized businesses, including through our support of market leaders in direct lending, asset finance and FinTech companies and platforms.
“In its third year, British Business Investments has achieved these marked increases across the board while producing positive investment returns for taxpayers and significant dividends for its shareholder.”
For further information, please contact:
Andy Johnson-Creek: firstname.lastname@example.org,
Scott Shearer, British Business Bank: email@example.com
Notes to editors
British Business Investments
British Business Investments is the trading name of British Business Bank Investments Limited, the commercial arm of the British Business Bank. It aims to earn a commercial return by investing – through finance providers – in smaller businesses and small mid-caps, pursuing investments on a fully commercial basis without receiving any advantage from the government. Find out more at www.bbinv.co.uk
British Business Bank Investments Limited is a wholly owned subsidiary of British Business Bank plc, the UK government’s economic development bank, registered in England and Wales, registration number 09091930, registered office at Foundry House, 3 Millsands, Sheffield, S3 8NH. British Business Bank is not a bank and does not operate as such. Neither entity is authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA).