Gresham House Strategic plc LON:GHS, the engaged investor applying private equity techniques to investing in smaller quoted companies, has told DirectorsTalk that following strong performance from its portfolio of realised investments it intends to pay a first dividend under the new Strategic Public Equity (“SPE”) strategy adopted in August 2015 of 15 pence per ordinary share, and to undertake a share buyback programme which, together with the dividend, will represent half of the Company’s profit from recent realisations. As of 31 March 2017, the Company had GBP1.7 million of unaudited profits from realisations, and it intends to distribute GBP864,573 via dividend and share buybacks, in line with the Company’s stated policy on shareholder returns.
David Potter, Non-Executive Chairman, commented: “Today’s announcement demonstrates the Board’s confidence in the long term potential of our SPE strategy. Despite the tricky operating environment in the 18 months since we adopted this strategy the Company has made steady progress and investments are well positioned to generate NAV growth.”
As stated in the Interim Results announcement dated 25 November 2016, at that time there were realisations available to be returned to shareholders representing approximately 15 pence per ordinary share of 50 pence each excluding shares held in treasury. The Company intends to seek shareholder approval at its 2017 Annual General Meeting to distribute approximately 15 pence per Ordinary Share to shareholders by way of a final dividend.
Pursuant to the authority granted at the Company’s 2016 Annual General Meeting, the Company announces that from Thursday 6 April 2017 it will commence a share buyback programme, subject to a maximum aggregate value equivalent to the balance remaining of the profits from realisations not being paid out by way of a dividend, over a maximum period of 30 calendar days, ending on Friday 5 May 2017.
The Company entered into an agreement with finnCap Ltd (“finnCap”) on 5 April 2017 to enable finnCap to purchase Ordinary Shares in accordance with the terms of the general authority to make market purchases granted to the Company by its shareholders at the 2016 Annual General Meeting held on 25 July 2016 and on the terms prescribed above. Any shares repurchased will be cancelled.
During the course of the share buyback programme, the Company will make further notifications to the market as and when share purchases are made.
Gresham House plc (“Gresham House”), the parent company of the Company’s Investment Manager Gresham House Asset Management Ltd, and members of the Gresham House investment team, the Gresham House Strategic Public Equity Investment Committee and the Board of the Company have all undertaken not to dispose of any Ordinary Shares through the share buyback programme.
