Hyperion 2013 IPO in doubt

Howden parent Hyperion could see its IPO delayed beyond next year, according to one of the firm's largest investors.

Brian Marsh, pictured, chairman of BP Marsh, which holds a 13.84% stake in the firm, said that there are now internal doubts at Hyperion about whether the firm will be able to launch an IPO next year.

Marsh told Post in May that a late 2013 float seemed likely, although Hyperion chairman John van Kuffeler has stressed that the timing remains flexible.

"It depends who you speak to. If you speak to David Howden, he'll say that he's threatening to float round about June 2013," Marsh said.

"If you speak to his more pessimistic colleagues, they'll say they're not sure they'll make it in 2013 at all. You can't really make a reliable prediction because everybody has a different view."

BP Marsh sold a 2.75% stake in Hyperion to Murofo in May for a cash consideration of £4.5m, and Marsh said that he is not looking to sell any more stock prior to a 2013 IPO Forecast.

Such a price would value Hyperion at £165m, but Marsh believes that the true value is higher and is confident of getting a better price.

"It is worth a bit more than we got when we sold those shares in the spring, and then you've got our year end coming up at 3 January when we would assume it would go up again," he said.

"You're talking about a group of very considerable size, not least having added the £100m acquisition of Windsor, which they have done in the interim."

Marsh spoke to Post following the publication of BP Marsh's first-half results, which show profit after tax of £2.2m.

"I'm not crying my eyes out, put it that way. It's a steady improvement. That's not what we aim for, but it's what we seem to produce every six months," he said.

Marsh was particularly pleased with the performance of Lloyd's broker Besso and Hyperion, describing the firms as inflation, recession and foreign exchange proof.

"In times like this, they really are very reliable investments. Obviously they require attention as any decent field of corn does, but you also have to have the ability to stand aside and let them develop themselves. Those two really have motored everything else," he said.

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