Trading Update

RNS Number : 1294N
Gresham House PLC
28 January 2021
 

28 January 2021

Gresham House plc

("Gresham House," "the Group" or "the Company")

Trading Update

Strong AUM growth and progress against five-year plan GH25

Gresham House, (AIM: GHE) the specialist alternative asset manager is pleased to provide 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.

- Ends -

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) NO 596/2014.

For more information contact:    

 

Gresham House plc    

Tony Dalwood, Chief Executive Officer 

Kevin Acton, Chief Financial Officer  

 

 

 +44 (0)20 3837 6270  

 

Houston - media and analysts     

Alexander Clelland  

Anushka Mathew  

 

 

  gh@houston.co.uk  

+44 (0) 20 4 529 0549 

Canaccord Genuity Limited - Nominated Adviser and Joint Broker    

Bobbie Hilliam  

Georgina McCooke  

 

 

+44 (0)20 7523 8000  

 

Jefferies International Limited - Joint Broker and Financial Adviser 

Paul Nicholls  

Max Jones  

 

+44 (0)20 7029 8000  

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
TSTUBARRAVUAUUR
UK 100

Latest directors dealings