TIDMGHE

RNS Number : 2816F

Gresham House PLC

15 July 2021

15 July 2021

Gresham House plc

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

Trading Update - H1 AUM growth of +19% to GBP4.7bn

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

 
 
        *    AUM growth of GBP761m in H1 (+19%) to GBP4.7bn, 
             including organic growth of GBP457m (+12%) 
 
         *    Completion of Appian Asset Management acquisition, to 
              form Gresham House Ireland and international platform 
 
        *    Cost synergies captured from Housing acquisition of 
             c.GBP0.9m 
 
        *    Advanced product progress within the Real Asset 
             division including Forestry, New Energy, Sustainable 
             Infrastructure and Housing to support AUM ambitions 
 
        *    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 GBP6bn+ 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 GBP4.7bn, with organic growth of GBP457m (+12%).

The acquisition of Appian Asset Management, announced on 17 December 2020 (AUM EUR350m, or GBP303m), was completed on 29 June 2021 with AUM of EUR396m (GBP340m). 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.GBP0.9m 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 GBP5.7m in the development of battery energy storage projects; GBP4.8m 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 GBP4.7bn as at 30 June 2021 (31 December 2020: GBP4.0bn).

ReSI LP, the shared ownership housing fund, held a first close in May 2021 with commitments of GBP70m and deployment by 30 June 2021 of GBP16m. 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 GBP100m, 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")"

 
For more information contact: 
Gresham House plc 
 
 Tony Dalwood, Chief Executive Officer 
 Kevin Acton, Chief Financial Officer             +44 (0)20 3837 6270 
Houston - PR advisors 
 
 Alexander Clelland                               gh@houston.co.uk 
 Kay Larsen                                       +44 (0)20 4529 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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END

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