Gresham House PLC Pre-Close Update (7702Z)
27 January 2022 - 06:00PM
UK Regulatory
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
------------------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTFLFETLDIRFIF
(END) Dow Jones Newswires
January 27, 2022 02:00 ET (07:00 GMT)
Gresham House (LSE:GHE)
Historical Stock Chart
From Feb 2024 to Mar 2024
Gresham House (LSE:GHE)
Historical Stock Chart
From Mar 2023 to Mar 2024