Profits of British Business Investments soars 37%
British Business Investments shows significant growth for the year ended March 31
British Business Investments has registered high levels of profit for the year ended 31 March. Profits of British Business Investments have soared 37%, the commercial arm of the British Business Bank announced declared in its annual results which showed significant growth. The gross annual income is £60.5m whereas; the pre-tax profit is £55.1m. 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.
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.”
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.
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.”
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