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.
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.
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.
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).