Gresham House Strategic plc
Interim results for the six months to 30 September 2019
Realisations, new investments and portfolio re-balancing drive further NAV growth
Gresham House Strategic plc (GHS or the Company) is pleased to announce its unaudited half year results for the period ended 30 September 2019.
Financial highlights
- Strong share price performance, with share price rising 10.3% in the period
- Discount narrowing from 22.9% to 14.4% in the period
- 15% increase in the proposed interim dividend
- NAV Total Return of 40.0% since inception[1] – outperforming comparator indices
Investment Management highlights
- Consolidation of the strong NAV performance of FY19 against volatile market conditions, NAV Total Return 0.3% vs 0.2% FTSE Small Cap Total Return, and NAV up a further 5.8% post-period end to 15 November 2019
- Further significantly profitable realisation of 1.3m IMImobile shares, generating a 21.7% IRR and 1.98x Money Multiple
- Two new strategic investments in H1 – £2.3m equity investment into Pressure Technologies and £2.1m Convertible Loan Note (CLN) into Lakes Distillery
- Further portfolio re-balancing progress within the period with five investments partially or fully exited, including three underperformers
- Development of the team capacity and capability through the hire of Richard Staveley, an experienced specialist small-cap manager
- Operational support and turnaround efforts in a number of under-performing investments
Post-period end highlights
- Share price rising a further 11.7%2, with discount narrowing to 9.8%[2]
- Strong performance from Augean in particular, has helped grow NAV; NAV per share rising 5.8% between 30 September and 15 November
David Potter, Chairman of Gresham House Strategic plc, commented:
“I am pleased to report a satisfactory start to the year, despite the rising uncertainty around Brexit during the period. Our Investment Manager continues to believe the UK markets and many smaller companies in particular are undervalued and this market segment stands to benefit from a meaningful re-rating if and when the Brexit uncertainty is resolved.”
Graham Bird, Fund Manager and Managing Director of Strategic Public Equity, Gresham House, said:
“NAV has held steady during the first half of the year amidst an uncertain market, political and weakening economic backdrop. Nevertheless, we believe there are a number of factors which make the outlook for SPE investing and the near-term opportunities within the portfolio attractive. We therefore continue to view the opportunity set and outlook for GHS with cautious optimism.”
Richard Staveley, Fund Manager and Managing Director of Strategic Public Equity, Gresham House, said:
“The opportunity to invest in over-looked and unloved UK small companies has rarely been greater. Structural factors combined with the current market backdrop have created a uniquely exciting time for dedicated, longer-term investors. Gresham House's Strategic Public Equity strategy is a truly active approach, delivering a clear concentration of best ideas, a passion for value and the platform to follow through on this opportunity.”