Interim Management Statement

Interim Management Statement

Gresham House plc

GRESHAM HOUSE plc (“the Company”)

Interim Management Statement (Unaudited)

Introduction

This Interim Management Statement (the “Statement”) has been prepared in order to provide information to meet the requirements of the UK Listing Authority’s Disclosure and Transparency Rules. The Statement covers the three month period to 30 September 2013 together with relevant information up to the date of publication.

Investment Objective

Gresham House plc is an authorised investment trust listed on the London Stock Exchange. Following the passing of an ordinary resolution at the Company’s 2011 annual general meeting, its investment objective and policy is the orderly realisation of the Group’s assets over a period of approximately two years with a view to returning capital to shareholders thereafter. This period of time however is likely to be longer than originally anticipated given, in particular, the continuing fragile state of the commercial property market.

Material Events and Transactions

The Company’s interim results for the half-year ended 30 June 2013 were announced on 28 August 2013 and are available on the Company’s website www.greshamhouse.com.

The Directors are aware of the following events or transactions which have occurred in the period from 1 July 2013 to the date of this Statement:-

(i) notices have been served to terminate the service contracts and letters of appointment of each of the Company’s executive and non-executive directors on 31 July 2014. The Board will however ensure that, if required, adequate senior management will be in place after that time;

(ii) completion of the sale of the site in Vincent Lane, Dorking to Persimmon Homes Ltd for £2.95m on 7 August, 2013;

(iii) completion of the lease to TT Assembly Systems (UK) Ltd, a subsidiary of Toyota Tsusho Corp at £593,450 p.a., for the property known as Northern Gateway in Knowsley, Liverpool on 2 August 2013, following which terms have now been agreed for the sale of this investment;

(iv) full repayment of the group’s borrowings to the Royal Bank of Scotland plc resulting in net borrowings/cash improving by £3,037,000 from £(10,986,000) at 30 June 2013 to £(7,949,000) at 30 September 2013;

(v) terms have now been agreed with a national housebuilder for the sale of 20 acres of the site at Newton-le-Willows;

(vi) an increase of 1.3% in the IPD UK Quarterly Property Index for capital growth for the three months ended 30 September 2013; and

(vii) as at 30 September 2013 the value of the securities portfolio had increased by approximately 6.7% since 30 June 2013 compared with a increase in the FTSE All Share Index of 4.7%.

The Company has one class of share capital: ordinary shares of 25p each. There have been no changes in the issued share capital of the Company since 30 June 2013, which at today’s date, remains at 5,369,880 shares.

Financial Information

Investments - Properties

Investment properties are shown at fair value based on current use. All investment properties were valued by the directors as at 30 June 2013 due, in particular, to the weakness of the retail market in the north west. Following advice from Jones Lang LaSalle Limited, Chartered Surveyors, this directors’ valuation resulted in an overall decrease of £1,072,000 to £26,750,000.

Rental income on the property portfolio for the three months ended 30 September 2013 was £248,000 compared with £432,000 for the half-year ended 30 June 2013. Since 31 December 2012 the amount of vacant space has increased by 20,628 sq. ft. to 158,124 sq. ft. representing 26% of the total available.

Investments - Securities

	Â	As at 30.09.2013 Unaudited	Â	As at 30.06.2013 Unaudited
		£’000		£’000
Listed securities – on the London Stock Exchange		96		93
Securities dealt in under AIM		2,372		2,073
Securities dealt in under ISDX		74		51
Unlisted securities		3,508		3,443
		Â		Â
TOTAL		6,050		5,660

Investments at 30 September 2013

	Â	Market Value	Â	% of portfolio
		£’000s
					Â
SpaceandPeople plc* Memorial Holdings Ltd #		2,372 1,785		39.2 29.5
Attila (BR) Ltd Loan notes#		935		15.4
Kemnal Investments Ltd Loan notes#		466		7.7
AudioGravity Holdings Ltd #		295		4.9
Royal and Sun Alliance 7 3/8% preference‡		96		1.6
Wheelsure Holdings plc â€		74		1.2
Lancashire Tea Ltd Loan Notes#		15		0.3
Northgate plc 5% preference #		12		0.2
		Â		Â
		6,050		98.3
‡ UK Listed
* AIM traded securities † ISDX traded securities
# Unlisted securities

In addition the Company has a number of other investments, the market value of which does not exceed £1,000.

Securities have been valued on the same basis as that adopted in the Group’s Consolidated Financial Statements for the year ended 31 December 2012.

Sector analysis as at 30 September 2013

	Â	% of securities portfolio
Property investment		53
Media		39
Engineering		6
Financial		2
		Â
		100

Comparative movements

	Â	30.09.2013 Unaudited	Â	30.06.2013 Unaudited	Â	% change
Basic net asset value per ordinary share		N/A		439.3p		N/A
Share price (pence)		318.50		315.0		1.1
FTSE All Share index		3,443.85		3,289.70		4.7

Further information on the Company and Group, including a copy of this Statement, can be found at www.greshamhouse.com.

D Lucie-Smith

Chief Executive Officer

18 November 2013