The British Business Bank has disclosed that it enabled £6.8bn in financing for smaller enterprises during the 2024/2025 financial year.
This total comprises £1.2bn directly deployed by the agency, £2.6bn in guaranteed lending, and £3bn of private sector capital.
The bank indicated that 24,000 businesses, which had not previously received its support, were granted funding, in addition to 4,000 businesses that had previously benefited from its services.
A significant majority (84%) of the supported businesses were situated outside of London.
The expected outcomes from this financial assistance include the creation of 38,000 new jobs, an increase in business turnover amounting to £18bn, which is projected to enhance UK economic output by £8bn, and a contribution of over £100m to Gross Value Added (GVA) across all UK nations and regions.
Furthermore, the British Business Bank has reported a return to profitability, with its investment portfolio expanding by nearly 20%.
The agency recorded a pre-tax profit of £144m in its most recent financial year, attributed to the strong performance of its investments.
In terms of financial performance, the bank achieved a 4.2% five-year adjusted return on capital employed across both its commercial and developmental activities.
It realised gains of £83.6m in 2024/25, bringing its lifetime Multiple on Invested Capital (MOIC) to 2.3 times.
British Business Bank CEO Louis Taylor said: “In a busy and productive 2024/2025, the British Business Bank amplified its role, delivering significant impact in driving economic growth and innovation and playing its part in the economic transformation of the UK’s Nations and regions.
“The bank returned a pre-tax profit of £144m this year. Our activities in 2024/2025 are expected to produce an impact of 38,000 additional jobs and £8.0bn of gross value added over the life of the finance.
“At the same time, we have undertaken a significant reshaping of our organisation to prepare for an expanded mandate and long-term ambitions.
“Having an economic development bank with permanent capital and a consistent risk appetite, underpinning the UK venture and growth market through its cycles, is a powerful and very positive development.”
“British Business Bank facilitates £6.8bn in financing in FY24/25” was originally created and published by Leasing Life, a GlobalData owned brand.
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