Gresham House plc (LON:GHE), the specialist alternative asset manager, has provided the following trading update for the financial year ended 31 December 2020.
Highlights
· Assets Under Management (“AUM”) increased by c.42% to £3.9 billion in the year to 31 December 2020 (2019: £2.8 billion)
· Organic growth in AUM of £1.0 billion (35%) in the year to 31 December 2020
· Strong fundraising performance in H2 2020 across both Real Assets and Strategic Equity divisions, attracting new institutional clients and demonstrating the continued demand for our sustainable investment strategies
· Full-year adjusted operating profits to be ahead of market expectations
· Proposed acquisition of Appian Asset Management in Ireland accelerates international expansion plans
· Continued investment in the platform including talent and operational resources to sustain a long-term growth trajectory and support GH25 objectives
· Cash position of £21.8 million as at 31 December 2020 leaves the Group well positioned to develop opportunities and continue to grow the business in 2021
Trading review
Group AUM has grown by c.42% to £3.9 billion for the year ending 31 December 2020, despite exceptionally difficult market conditions demonstrating the attractiveness and resilience of the Group’s sustainable investment strategies and talented team. This growth was driven by strong fundraising performances across both the Real Assets and Strategic Equity divisions, increasing the depth of the Group’s institutional client base, with the Gresham House Energy Storage Fund plc (GRID) raising £120 million, Gresham House Forest Fund I LP raising £108 million and the Baronsmead VCTs raising £38 million gross in the second half of the year. The overarching theme of sustainability continues to be highly relevant to our investment strategies and remains appealing to clients, which provides a strong tailwind for AUM growth. As a result, the Group expects to deliver full-year adjusted operating profits ahead of market expectations despite continued investment in resources to deliver GH25 ambitions.
The Group also benefited from balance sheet investments in battery storage projects through the wholly-owned subsidiary Gresham House Devco Limited, and their subsequent sales to GRID.
The Group has built strong momentum in progress against its five year strategy, GH25, as outlined in March 2020. The acquisition of Appian Asset Management, subject to approval from the Central Bank of Ireland, accelerates international expansion plans with the establishment of a regulated EU-based platform. The acquisition enhances the Group’s capabilities to develop existing strategies in Ireland and Europe with a particular focus on targeting sustainable infrastructure, social housing, specialist equities and forestry.
Tony Dalwood, Chief Executive of Gresham House, commented:
“In a challenging environment, we have delivered strong progress against our strategic and financial objectives, including delivering strong organic growth rates and executing attractive acquisitions.”
“Momentum has carried through into the start of 2021 as we remain well positioned to benefit from the increasing focus on sustainable investments alongside continuing to invest in talented people to support the ambitions of the Company.”
Gresham House will publish its full year results for the financial year ended 31 December 2020 on 11 March 2021.
