Trading Update - H1 AUM growth of +19% to £4.7bn
15 July 2021
Gresham House plc
("Gresham House" or the "Company" or the "Group")
Trading Update - H1 AUM growth of +19% to £4.7bn
Gresham House (AIM: GHE), the specialist alternative asset manager, is pleased to announce a trading update for the six-month period to 30 June 2021.
Highlights
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· AUM growth of £761m in H1 (+19%) to £4.7bn, including organic growth of £457m (+12%) |
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· Completion of Appian Asset Management acquisition, to form Gresham House Ireland and international platform
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· Cost synergies captured from Housing acquisition of c.£0.9m
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· Advanced product progress within the Real Asset division including Forestry, New Energy, Sustainable Infrastructure and Housing to support AUM ambitions
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· Continued strong progress against five-year financial, strategic and sustainability plan, 'GH25', including product development, AUM growth, client expansion and fund investment performance |
Trading review
The Group has delivered a strong first half performance in line with market expectations and continues to make good progress towards delivery of its GH25 commitments to achieve £6bn+ in Assets Under Management (AUM), gain market share in specialist products and build an international presence. Demand for the Group's Environmental, Social and Governance (ESG) focused strategies continues to gain momentum and AUM grew 19% to £4.7bn, with organic growth of £457m (+12%).
The acquisition of Appian Asset Management, announced on 17 December 2020 (AUM €350m, or £303m), was completed on 29 June 2021 with AUM of €396m (£340m). Appian will be known as Gresham House Ireland going forward, and it provides a strong international platform for Gresham House in Ireland and across the EU.
Gresham House has continued to invest in the business during the period, with several key hires in high-growth opportunities aligned with the Group's investment strategies and products.
The Group has also continued to drive synergies from the TradeRisks Limited acquisition, with c.£0.9m of cost synergies captured to date.
The Group has continued to focus on using its balance sheet to develop the business, including: further investment of £5.7m in the development of battery energy storage projects; £4.8m in funds that the Group has launched and manages; including an investment which supports the creation of a pioneering new sustainable infrastructure asset class seeking to develop dedicated areas of land to establish new biodiversity.
Funds raised
Strong progress has been achieved against the Group's 2021 fundraising targets during H1 2021, which contributed to the AUM increase to £4.7bn as at 30 June 2021 (31 December 2020: £4.0bn).
ReSI LP, the shared ownership housing fund, held a first close in May 2021 with commitments of £70m and deployment by 30 June 2021 of £16m. The Housing team's strong pipeline is anticipated to support further fundraising in H2 2021. ReSI plc has also delivered excellent performance in the period and is now operating at a premium to NAV as at 30 June 2021.
Within the Group's BSIF strategy, the BSI Infrastructure LP is now fully committed, and the Group is on track to raise its second sustainable infrastructure fund, the British Sustainable Infrastructure Fund II or 'BSIF II', in H2 2021.
Post 30 June 2021 update
Following the period-end, in July 2021 the Gresham House Energy Storage Fund plc (GRID) launched and closed a fundraise of £100m, underlining the growth potential and market leading nature of GRID's battery energy storage projects, and further demonstrating the attractiveness of the Group's investment strategies. The fundraise was significantly oversubscribed and a scaling back exercise was undertaken.
Tony Dalwood, Chief Executive Officer, said :
"We have delivered strong progress in the first half, with growth in AUM from both organic initiatives and acquisition activity. The depth and breadth of our investor base continues to increase, driven by appetite for our ESG-focused investment strategies and strong investment performance, and we are well on track to achieve our GH25 objectives. We continue to invest in building our specialist teams with a focus on scalable or differentiated products and see good momentum across the business as we enter the second half."
Ends
"This announcement contains inside information for the purposes of the Market Abuse Regulation (596/2014/EU)("MAR")"
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For more information contact:
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Gresham House plc
Tony Dalwood, Chief Executive Officer Kevin Acton, Chief Financial Officer
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+44 (0)20 3837 6270
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Houston - PR advisors
Alexander Clelland Kay Larsen |
gh@houston.co.uk +44 (0)20 4529 0549
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Canaccord Genuity Limited - Nominated Adviser and Joint Broker
Bobbie Hilliam Georgina McCooke
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+44 (0)20 7523 8000
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Jefferies International Limited - Joint Broker and Financial Adviser
Paul Nicholls Max Jones |
+44 (0)20 7029 8000 |
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