TIDMGHS
RNS Number : 7000Y
Gresham House Strategic PLC
23 August 2018
23 August 2018
GRESHAM HOUSE STRATEGIC PLC
(the "Company")
Gresham House Strategic plc marks three-year anniversary of
appointment of new investment manager with strong NAV
outperformance and significant profitable realisation.
Gresham House Strategic (GHS) plc, the AIM-listed investment
company, this month, marks the third anniversary of the appointment
of Gresham House Asset Management, as its fund management team,
celebrating:
- Share price growth of 35.1% over the 3-year period, maiden
dividend of 15p paid in 2017, and grown by 15% in 2018 to
17.25p
- A net asset value (NAV) per share increase of 27.3% over the
last 3 years - compared to 15.5% and 16.1% for the FTSE All Share
and FTSE Small Cap (ex-Investment Trusts) Indices respectively in
the same period
- Portfolio deployed in 'value' investments that offer a higher
forecast sales growth of 12.2% compared to the FTSE All-Share of
3.1%, whilst trading on a lower valuation (GHS Portfolio EV/EBITDA
7.8x versus 9.5x FTSE All-Share)
- Significant recent partial realisation of GBP9.6 million of
the fund's major investment, IMImobile, crystallising GBP4.96
million profit, a 19% IRR and 2.13x money multiple (GHS retains a
6.3% holding in IMImobile)
- Total realisations of GBP24.2m in the 3-year period,
cumulatively generating GBP9.0m realised profits at 28.5% IRR and
1.60x money, significantly exceeding target returns
- Additional GBP1.2m returned to shareholders through share buybacks in 2017 and 2018
David Potter, Chairman, Gresham House Strategic plc, commented,
"The GHS Fund has performed exceptionally well, with share price
growth of over a third, and NAV per share growth of 27.3% since the
2015 restructuring of SPARK Ventures. This NAV growth represents an
outperformance of more than 11.2% since inception versus the FTSE
Small Cap Ex-Investment Trusts index. The focus remains on a
continued hands-on approach, adding value through constructive
engagement with investee stakeholders. I am pleased at the Fund's
progress which is testimony to our talented investment management
team."
Graham Bird, Fund Manager of Gresham House Strategic Plc stated
"GHS has outperformed and achieved significant positive NAV
appreciation whilst allowing for a progressive dividend policy to
be initiated, supported by modest share buy-backs. I am excited by
the attractive valuation characteristics and prospective growth of
the portfolio to generate further strong total returns. The
profitable realisations provide further potential for dividend
growth alongside additional opportunities for the investment team
to engage actively with more companies which can benefit from
strategic, operational or management initiatives, in so doing
identifying value creation catalysts in the small cap sector of the
market."
Ends.
For further information, contact
Gresham House Strategic 07711 450
plc David Potter 391
Gresham House Asset
Management Ltd
Investment Manager Graham Bird 0203 837 6270
finnCap Ltd
Nominated Adviser and Matt Goode / William Marle
Broker / Emily Watts 0207 220 0500
Attila Consultants Charles Cook / Nita Shah 0207 947 4489
Notes to editors
1. In August 2015, AIM-listed SPARK Ventures, changed its name
to Gresham House Strategic plc and appointed Gresham House Asset
Management, the specialist asset manager, as its investment
adviser, which made a significant investment in SPARK Ventures to
support the new investment mandate.
2. The investment portfolio management mandate was granted to
Gresham House, with Graham Bird, Investment Director of Strategic
Public Equity and Tony Dalwood, Chair of the Strategic Public
Equity Investment Committee managing the portfolio.
3. The Strategic Public Equity mandate utilises the principles
and practices of private equity to invest in influential stakes in
UK smaller public and private companies which it believes to be
undervalued. As such, the team has an engaged, active style of
investing, working closely with management teams, to create
shareholder value through strategic or operational initiatives,
supporting a clear 3-5 year management plan to implement these
initiatives.
4. The concentrated portfolio currently comprises 15 companies:
IMImobile, Northbridge, BeHeard, MJ Hudson, Tax Systems, Escape
Hunt, The Quarto Group, SpaceandPeople, Centaur, PCF Group, Augean,
ProPhotonix Limited, Smartspace Software (formerly Redstone
Connect), Universe Group, and an investment in Hanover Active
Equity Partners II LP.
5. GHS plc recently announced it had realised 42.2% of its
holding in IMImobile for GBP9.60 million, generating GBP4.96
million profit. This realisation represented a 19% IRR and 2.13x
money multiple, significantly above the company's stated target
return of 15% IRR. Following the sale, GHS has a resultant holding
of 6.3% of the issued share capital of IMImobile.
6. In June 2018, GHS plc announced positive preliminary results,
and last year, it paid a maiden dividend of 15p per share, with 15%
growth announced on this year's dividend at 17.25p per share. A
share buyback programme of up to GBP1m was also announced at that
time and was completed on 18 June 2018
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END
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