TIDMGHE

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 GBP6.5 billion (2020: GBP4.0 billion) 
 
   -- Organic growth in AUM of approximately GBP1.9 billion (c.50%) in the year to 31 December 2021 
 
   -- Full year adjusted operating profits expected to be in excess of GBP19.75 million, excluding performance fees 
      (2020: GBP12.1 million) 
 
   -- Net Performance Fees earned in the year of GBP1.7 million (2020: GBPnil) 
 
   -- Cash position of GBP39.1 million and undrawn revolving credit facility of GBP20.0 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 GBP19.75 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 GBP1.7 million from the equity funds for the year to 31 December 2021 (2020: GBPnil).

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 GBP8 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            +44 (0)20 3837 
  Kevin Acton, Chief Financial Officer              6270 
                                                  ------------------ 
 Houston - media and analysts                      gh@houston.co.uk 
  Kay Larsen                                        +44 (0) 20 4 529 
  Joe Burgess                                       0549 
                                                  ------------------ 
 Canaccord Genuity Limited - Nominated Adviser 
  and Joint Broker 
  Bobbie Hilliam                                   +44 (0)20 7523 
  Georgina McCooke                                  8000 
                                                  ------------------ 
 Jefferies International Limited - Joint Broker 
  and Financial Adviser 
  Paul Nicholls                                    +44 (0)20 7029 
  Max Jones                                         8000 
                                                  ------------------ 
 

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END

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