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Gresham House plc

Gresham House plc Transformational year, more than trebling assets under management to £2.3 billion

Commenting on the results, Tony Dalwood, Chief Executive, said:

“We have continued to maintain momentum and make excellent progress in shareholder value creation whilst investing in the platform ahead of future growth, adding scale to the business and identifying synergies.

The opportunities in the alternatives sector offer high-quality long-term investment returns for clients, and Gresham House has quality fund management teams and award winning individuals to execute within those specialist markets. The 2019/2020 pipeline for further organic AUM growth is exciting.”

Gresham House plc, (LON:GHE) the specialist alternative asset manager, is delighted to report a transformational year, more than trebling assets under management to £2.3 billion through organic and acquisitive growth, achieving profitability and significant margin improvement, whilst developing a high-quality pipeline of new opportunities and expanding its distribution capabilities.

Highlights


2018
2017Change

(£m)(£m)(%)
Assets under management2,268649250
Cash and liquid assets132.824.434
Total income14.56.5125
Operating loss0.63.5n/a
Adjusted operating profit23.0-0.7n/a
Dividend3.0pniln/a

1Cash and liquid assets includes cash and investments in tangible and realisable assets

2Adjusted operating profit is defined as the net trading profit of the Group before deducting amortisation, depreciation and exceptional items relating to acquisition and restructuring costs and after adding back income received from investment in associates.

§ A strong year for growth in Assets Under Management (AUM) of 250%, including 30% organic growth, with AUM increasing to £2.3 billion (2017: £649 million)

§ Adjusted operating profitability increased to £3.0 million (2017: £0.7 million loss)

§ The acquisitions of FIM Services Limited (FIM) and the investment management business of Livingbridge VC LLP (Livingbridge VC) have been transformative and complement both financially and strategically our alternative asset management platform

§ Annualised synergies of £700k from acquisitions have been identified and are in the process of being captured

§ Balance sheet remains strong with £32.8 million of tangible and realisable assets (2017: £24.4 million) and gross cash of £14.0 million (2017: £9.8 million)

§ Established group relationship with Santander, borrowing £10.0 million

§ Maiden dividend of 3.0p proposed

§ Future visibility for organic growth across all platforms identified

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Disclaimer: Statements in this article should not be considered investment advice, which is best sought directly from a qualified professional.