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Gresham House PLC (GHE)

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Thursday 27 January, 2022

Gresham House PLC

Pre-Close Update

RNS Number : 7702Z
Gresham House PLC
27 January 2022
 

27 January 2022

 

Gresham House plc

 

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

 

Pre-Close Update

 

Significant AUM growth of 65% and momentum supports results ahead of expectations

 

Gresham House, (AIM: GHE) the specialist alternative asset manager, is pleased to provide the following unaudited pre-close period update for the financial year ended 31 December 2021.

 

Highlights

  • Assets Under Management ("AUM") increased by 65% to £6.5 billion (2020: £4.0 billion)
  • Organic growth in AUM of approximately £1.9 billion (c.50%) in the year to 31 December 2021
  • Full year adjusted operating profits expected to be in excess of £19.75 million, excluding performance fees (2020: £12.1 million)
  • Net Performance Fees earned in the year of £1.7 million (2020: £nil)
  • Cash position of £39.1 million and undrawn revolving credit facility of £20.0 million as at 31 December 2021 in addition to existing investments on the balance sheet
  • Group positioned to continue momentum in 2022, including identified uses of balance sheet capital to support business growth in its specialist asset classes
  • Sustainability focus continues across the Group alongside high levels of employee engagement as recently evidenced by results of 2021 Employee Engagement Survey indicating a 96% advocacy rate

 

 

Trading review

The Group has delivered exceptionally strong profit and AUM growth in 2021. AUM has grown by 65% over the year, driven by strong fundraising, targeted acquisitions and performance. This was particularly noted in the independent valuations of Forestry assets in December 2021 alongside fund performance and inflows into new fund launches and existing funds. Adjusted operating profits are expected to be in excess of £19.75 million for the year to 31 December 2021, the increase since the last trading update on 9 December 2021 reflecting private asset deployment and transaction fees earned ahead of management expectations.

 

Strong fund performance across the Group is pleasing, with many equity funds in top IA quartiles. Consequently, the Group has also received net performance fees of £1.7 million from the equity funds for the year to 31 December 2021 (2020: £nil).

 

The Group has made excellent progress against its five-year goals, as set out in its GH25 strategic plan, and in November it revised its GH25 AUM target upwards by 33% to £8 billion AUM, whilst maintaining the targets of 40% EBITDA margin and 15% ROIC by 2025.

 

The Board was very pleased to note that its recent 2021 Employee Engagement Survey demonstrated high levels of satisfaction and commitment, including a 96% advocacy rate amongst staff, against an external benchmark of 73%.

 

Tony Dalwood, Chief Executive of Gresham House, commented:

"The performance of Gresham House over the course of the year demonstrates the success of the Group's strategy and business model. It is a testament to the capability and energy of those working within Gresham House as we aim to satisfy growing client demand for our sustainable and specialist asset classes and capture the significant opportunity ahead of us."

 

 

- 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   

Kay Larsen

Joe Burgess

 

[email protected] 

+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

 

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