Gresham House plc (LON:GHE) today announced it’s audited results for year ended 31 December 2016.
Delivering on Strategy, and Another Year of Significant Development with 50% Growth in Assets Under Management
· Assets under management (“AUM”) in the year to 31 December 2016 increased 50% to £363 million (2015: £242 million)
· Revenue growth of over 200% in the year to 31 December 2016 to £4.3 million (2015: £1.4 million), and reduced adjusted operating loss in the year to £1.6 million (2015: £3.1 million)
· Organic growth includes Gresham House Forestry LP and Gresham House Strategic Public Equity LP, with potential value from carried interest arrangements
· New strategic shareholders invested to align with the Group and support long-term growth, including the recently announced plan for the new Gresham House British Strategic Investment Fund
· Strong balance sheet with £26.9 million of tangible/realisable assets at year end (2015: £27.7 million) and a further £7.3 million received on the issuance of shares to a new strategic shareholder, Berkshire Pension Fund, in March 2017
Platform
Strategic Equity
· Gresham House Asset Management (“GHAM”) appointed investment manager to LMS Capital with AUM of £68 million at 31 December 2016
· Gresham House Strategic Public Equity LP (“SPE LP”) launched with committed AUM of £24 million at first close on 15 August 2016
· Gresham House Strategic plc (“GHS”) has seen NAV grow 6% over the period from 14 August 2015 to 31 December 2016, including a significant cash weighting
Real Assets
· Gresham House Forestry AUM grown by 20% to £247 million at 31 December 2016 (2015: £205 million)
· Gresham House Forestry Fund LP launched with committed capital of £15 million at first close on 31 October 2016
Process
· Investment in compliance and regulatory functions
· Integration and rebranding of Gresham House Forestry completed in the year and performance in line with achievement of 15% return on invested capital acquisition criteria
· LMS’s transition to GHAM as an external manager progressing to plan, implementing cost savings and GHAM value-add
· Investment teams are performing well and delivering growth across the strategies
People
· Continued investment in a strong and dedicated team appointing a new Finance Director, Chief Operating Officer and General Counsel, plus the lead fund manager for Gresham House Forestry and experienced Investment Directors in the Strategic Equity division
· Chief Technology Officer also joined in February 2017
Post reporting period
· Continued development in 2017, with Berkshire Pension Fund becoming a 20% strategic shareholder.
Tony Dalwood, CEO of Gresham House Plc, comments: “In 2015 we established the foundations of a specialist asset manager and 2016 has seen us build Gresham House into a credible specialist player whilst developing the brand. This has been enhanced by progress in early 2017, which has generated additional momentum that will drive further growth in the coming year. Our priority is to generate sustainable and increasing profits through growth in AUM. The positive recent developments accelerate our path to profitability in the nearer term and hence long-term value creation for shareholders. We continue to work on a number of organic and acquisition initiatives, including the recently announced Gresham House British Strategic Investment Fund with local government pension schemes and other long term investors.”
