Manage taxpayer
money efficiently

Delivered: A 4% return on capital.

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Objective 4

Manage taxpayer
money efficiently

Delivered: A 4% return on capital.

Why it is important: When we manage our programmes efficiently, we deliver value for money. All UK taxpayers benefit from our ability to deliver the most positive outcome with the least amount of Government resources.

All our programmes, with the exception of the grant funding and operating costs element for Start Up Loans, count towards our financial return target. The Bank targets achieving a return on capital at least equivalent  to the Government’s medium term cost of capital. We have a target for the end of March 2019 of 2.525%.


Adjusted return on capital employed

The British Business Bank achieved a 3.9% adjusted return on capital employed in 2016/171, which was higher than the return generated in 2015/16 and our target for the year. This rise was principally generated by strong investment performance, with an increase in income from the Investment Programme assets, positive fair value movements on VC Catalyst and legacy Venture Capital funds and foreign exchange gains. 2016/17 also saw continued strong performance from Lending Solutions’ EFG programme, with lower than expected claims in a benign credit environment. Excluding foreign exchange gains of £2.6m the return would have been 0.2% lower.

Case study

Creo Medical

Creo Medical, a medical device company based in Chepstow, Wales, is focused on the development and commercialisation of minimally invasive surgical devices, initially in the areas of gastrointestinal (GI) surgery and lung cancer.

The Angel CoFund, a delivery partner of the British Business Bank, invested c.£1m alongside a number of experienced angel investors that specialise in early stage medical sector investing, as well as local institutional investor Finance Wales, in the funding rounds prior to IPO.

In December 2016 Creo Medical successfully underwent an IPO on AIM, raising £20m and making the company’s total share value worth £61m at the time of listing. The new funds will enable further development of the lead product range and enhance the development pipeline.


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Case study
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