British Business Investments (BBI) pre-tax profits dropped by 80% in the group’s latest full-year results.
As the investment subsidiary of the state-backed British Business Bank, BBI’s focus is on supplying funds to SMEs to boost the UK’s startup ecosystem and deliver commercial returns.
In the group’s full-year results for the period ending 31 March 2023, it was reported that pre-tax profit for the period was at £38.1m, a significant decline from the £189.4m posted for 2022.
The Sheffield-based firm said the reduced profits were a result of ongoing challenges in the UK and the global economic environment.
The investment group made 19 new commitments totalling £386m in the past financial year.
“In challenging economic times, the importance of British Business Investments’ role has been demonstrated once again,” said BBI chair Louis Taylor.
“Against an uncertain backdrop, we have continued to support the UK economy by bolstering the finance options that are available to smaller businesses.”
Adam Kelly, Managing director of BBI said: “Despite the continued challenging economic environment, British Business Investments saw resilient performance in its portfolio during the past financial year, combined with strong demand across all of our programmes.
“This illustrates that funding gaps remain in the market for the types of finance that we support.”
This month, the Bristol-headquartered investor Science Creates Ventures secured a £15m funding boost from BBI’s Regional Angels Programme.