Intention to Pay a Maiden Dividend & Share Buyback

RNS Number : 7304B

Gresham House Strategic PLC

06 April 2017

 

GRESHAM HOUSE STRATEGIC PLC

(the "Company")

Intention to Pay a Maiden Dividend

and Share Buyback Programme In Line with Stated Distribution Strategy

Gresham House Strategic plc, the engaged investor applying private equity techniques to investing in smaller quoted companies, is pleased to announce 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 £1.7 million of unaudited profits from realisations, and it intends to distribute £864,573 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 ("Ordinary Shares"), 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.

The Company expects to release its final results for the 12 months to 31 March 2017 in mid June 2017.

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

For further information, please contact:

Gresham House Strategic plc	David Potter	07711 450 391
Gresham House Asset Management Ltd	Graham Bird Jonathan Dighe	0203 837 6270 0203 837 6273
finnCap Ltd	Corporate Finance Matt Goode/Emily Watts Corporate Broking Tim Redfern/Richard Chambers	0207 220 0500
Attila Consultants	Charles Cook / Sorrel Davies	0207 947 4489 07710 910 563

 

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