Gresham House Strategic plc (LON:GHS) has announced today its final audited results for the year ended 31 March 2018.
GHS invests primarily in UK and European smaller public companies, applying private equity techniques and due diligence alongside a value investment philosophy to construct a focused portfolio expected to be comprised of 10-15 companies. The Investment Manager aims for a considerably higher level of engagement with investee company stakeholders, including management, shareholders, customers, suppliers and competitors, with the aim of identifying market pricing inefficiencies and supporting a clear equity value creation plan and targeting above market returns over the longer-term.
Highlights:
· Strong investment performance driving a Net Asset Value per share increase of 10.7% during the year to 31 March 2018, and 20.1% since the appointment of Gresham House Asset Management Ltd as Investment Manager
· NAV total return (including dividends paid) of 12.1% during the year to 31 March 2018 and 21.7% since the appointment of GHAM
· NAV per share at an all-time high of 1,227.4p per share as at 1 June 2018, outperforming the FTSE Small-Cap and All-Share indices
· Proposed dividend of 17.25p per share (15% growth on previous year)
· £11.1m deployed into new investments during the period – portfolio now ‘fully invested’
· £3.6m realisations, including significant completed exits, all of which crystallised returns above our 15% IRR target at attractive money multiples
· Realised profits providing opportunity to grow the dividend and add further value through NAV discount control
· Up to £1m share buy-back initiated post period end
· Clear action plans on existing investments identified and initiated where investment theses are behind plan
Financial highlights:
· NAV at 31 March 2018 of £43.4m (2017: £39.5m)
· Realised gains on investments of £1.3m in the year to 31 March 2018 (2017: £1.6m)
· Profit before tax of £4.7m (2017: £2.8m)*
· Earnings per share of 127.70p (2017: 76.07p)*
· Proposed full year dividend per share of 17.25p (2017: 15p)
*Prior year figures are stated on a consolidated Group rather than Company basis.