British Business Investments has posted full-year results for the period ending 31 March 2023. In its ninth year of operation, British Business Investments reports aggregate commitments that now exceed £3.8 billion. The government-sponsored firm aims to improve access to alternative finance for smaller UK businesses. At the same time, the entity seeks to generate a return on the investments and for the benefit of the “UK taxpayer.”
During the 2022/2023 period, British Business Investments added 19 portfolio commitments. The entity reports income from investments was £53.1 million and profit before tax of £38.1 million, compared to £203.4 million and £189.4 million, respectively, in the previous financial year. Write-downs have impacted the portfolio but they have generated a 6.3% average return over the past five years.
Chair of British Business Investments, Louis Taylor, commented on the results:
“In challenging economic times, the importance of British Business Investments’ role has been demonstrated once again. Against an uncertain backdrop, we have continued to support the UK economy by bolstering the finance options that are available to smaller businesses, making new commitments totalling £386m in the past financial year. We have also generated a strong financial return for the British Business Bank Group, with profit before tax of £38.1m, and a 6.3% five year adjusted return on average capital employed.”
As of March 31 2023, British Business Investments had made total commitments of over £3.8 billion to finance providers to support funding to UK smaller businesses since its inception in 2014. New commitments in 22/23 were £386 million, which, combined with third-party capital investing alongside us, means that total funding of almost £1.3 billion will be made available to the UK market.
You may download the British Business Investments Annual Report and Accounts 2022/23 here.