Gresham House plc, (AIM:GHE) the specialist alternative asset manager, has reported a strong first half of the year, more than doubling assets under management, developing a high-quality pipeline of new opportunities and expanding its distribution capabilities.
Highlights
As at | As at | Change | |
(£m) | (£m) | (%) | |
Assets under management | 1,609 | 649 | +148 |
Cash and liquid assets1 | 33.3 | 24.5 | +36 |
Six months to 30 Jun 18 | Six months to 30 Jun 17 | ||
Total income | 4.9 | 2.5 | +98 |
Operating loss | (0.5) | (1.1) | +58 |
Adjusted operating profit2 | 0.4 | (0.8) | – |
1Cash and liquid assets includes cash and investments in tangible and realisable assets
2Adjusted operating profit is defined as the net trading profit of the Group before deducting amortisation, depreciation and exceptional items relating to acquisition and restructuring costs. Represents a £1.2m improvement from a £0.8m loss to a £0.4m profit
- Growth in AUM to £1.6bn results in H1 adjusted operating profit of £0.4m – profitability enhanced by the capture of identified synergies from acquisitions with more identified for 2019
- Strong balance sheet with cash and liquid assets of £33.3m
- Strong performance of existing funds managed by the Group, including Gresham House Strategic plc where the three-year anniversary saw outperformance over benchmark by 11.2% since the Group took over the management contract
- All corporate acquisitions to date have met or exceeded their 15% medium-term return on shareholder capital hurdle
- Successful completion of £15.0m placing to fund transformational acquisition of FIM Services, enhancing the Group’s forestry and new energy asset management capabilities (Gresham House now the largest UK commercial forestry asset manager)
- Continuing investment in scaling existing five asset management divisions, operations, marketing and distribution capability from organic cashflow
- Intention to accelerate dividend policy with an initial payment in 2019
Commenting on the results, Anthony Dalwood, Chief Executive, said: “We have made excellent progress in the first half, adding scale to the business, making us more relevant and accessible to a wider constituency of investors.
“The challenges created by wider macroeconomic and geopolitical conditions have increased investors’ focus on our areas of expertise. We are gaining greater brand recognition by identifying and developing high-quality investment opportunities and providing excellent client service.
“Whilst we focus on completing the integration of the FIM business, there remain attractive opportunities to grow the business organically and through acquisition. We will continue to be selective in our acquisition strategy, focusing on the most effective way to create value for shareholders.”
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