Tony Dalwood, CEO of Gresham House LON:GHE, said to DirectorsTalk of the results: “Gresham House has developed its alternative asset management proposition with further organic growth in the first half of 2017. The Group has achieved a number of milestones including passing through GBP0.5 billion AUM, and the launch of the British Strategic Investment Fund, and importantly I am pleased to report that we are on track to achieve profitability on a run-rate basis in the second half of this year.
We continue to assess various acquisitions alongside the organic strategy that is working well.”
— Continued momentum in organic growth of the business with AUM up c. 50% since the beginning of the year to GBP532m
-- Asset management revenue increased by 100% to GBP2.4m (H1 2016: GBP1.2m) -- Adjusted operating loss * reduced to GBP0.8m (H1 2016: GBP1.2m)
— On track to surpass management’s trading profitability expectations since this management team came together in 2014. Asset management trading profitability expected on a run-rate basis by the end of 2017
— Launch of British Strategic Investment Fund on the Long-Term Investment Solutions platform (the 4(th) Gresham House platform) with a 12-year life and achieving first close of fund at GBP150m
— Investment in client portal, co-investment platform, talented asset management and support individuals
-- Successful integration of LMS and the forestry division achieving acquisition return hurdles
Significant progress since 30 June 2017:
-- Sale of inherited legacy property asset, Southern Gateway, for gross proceeds of GBP7.25m
— Proposed acquisition of Hazel Capital LLP, the renewables and infrastructure group, which manages or advises over GBP100m of assets, including VCTs with net assets of GBP50m, plus additional EIS and energy storage systems asset management vehicles, is in final stages of due diligence
— Strong balance sheet – Borrowing facility of GBP4.4m repaid. Tangible and realisable assets of GBP27.4m after the sale of Southern Gateway and the repayment of the borrowing facility (H1 2017: GBP27.4m, including borrowing facility)
