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British Business Investments posts 37% profit increase

Tom Belger | 07:28 Wednesday 27th September 2017

British Business Investments has reported a pre-tax profit of £551m in its annual results for the period ending 31st March 2017, an increase of 37% on last year.

The commercial arm of the British Business Bank invests in challenger banks, non-bank lenders and venture and growth capital funds to increase the choice of finance for smaller businesses.

Highlights for the full year to 31st March 2017 include:

• gross annual income of £60.5m, delivering a pre-tax profit of £55.1m – an increase of 37% on the year ended 31st 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 £40m paid to the shareholder British Business Bank PLC
• supporting 17,719 businesses across the UK as at 31st 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.

“As we complete our third year of operations, British Business Investments has again produced tangible, impressive results, meeting our strategic and commercial objectives,” said Catherine Lewis La Torre, CEO of British Business Investments.

“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.”

Keith Morgan, chairman of British Business Investments, added: “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.”

 

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