Gresham House plc
(“Gresham House,” “the Group” or “the Company”)
Interim results
Strong AUM and income growth with focus on sustainable investment
Gresham House plc, (AIM: GHE) the specialist alternative asset manager, is pleased to report a strong 17% growth in Assets Under Management (AUM) in the first half of the year, with a 33% increase in core income and 15% increase in adjusted operating profit. The Group remained focused on delivering both organic as well as acquisition-based growth despite challenging market conditions, while continuing to broaden its client base, investing in people and enhancing its sustainability culture.
HIGHLIGHTS
|
|
As at 30 Jun 2020 |
As at 31 Dec 2019 |
Change |
|
|
(£m) |
(£m) |
(%) |
|
Assets under management |
3,264 |
2,797 |
+16.7 |
|
Cash and liquid assets1 |
45.1 |
41.3 |
+9.0 |
|
|
|
|
|
|
|
Six months to 30 Jun 2020 |
Six months to 30 Jun 2019 |
|
|
|
(£m) |
(£m) |
(%) |
|
Total core income |
17.8 |
13.4 |
+33.3 |
|
Adjusted operating profit2 |
5.2 |
4.5 |
+15.5 |
|
Total comprehensive net loss |
2.2 |
0.7 |
-239.6 |
1 Cash and liquid assets includes cash and investments in tangible and realisable assets
2 Adjusted operating profit is defined as the net trading profit of the Group after charging interest but before depreciation, amortisation, share-based payments relating to acquisitions, profits and losses on disposal of tangible fixed assets, net performance fees, net development gains and exceptional items
Financial Highlights
- AUM up 17% in H1 to £3.3 billion including +10% organic growth
- Core income up 33% to £17.8 million (H1 2019: £13.4million)
- Adjusted operating profit up 15% to £5.2 million (H1 2019: £4.5 million)
- Strong balance sheet with cash and liquid assets at £45.1 million and zero debt
Operational Highlights
- COVID-19 pandemic resilience, with no team members furloughed or use of the Coronavirus Business Interruption Loan Scheme
- Integration of TradeRisks progressing well, enhancing strength and expertise of Housing team and increasing AUM by £184 million alongside the planned launch of Gresham House Residential Secured Income LP (shared ownership housing fund)
- Final close of the British Strategic Investment Fund at £300 million
- Further investment in the future growth of the business with senior appointments made including Rebecca Craddock-Taylor as Director of Sustainable Investment and David Gardner and Peter Bachmann to the International Forestry and Sustainable Infrastructure teams
Sustainable Investment Highlights
- Achieved Principles for Responsible Investment scores of A+ for Strategy and Governance, A+ for Infrastructure and A for Strategic Equity divisions
- Awarded Green Economy Mark by the London Stock Exchange, emphasising our dedication to building a greener economy and a more sustainable future
Commenting on the results, Tony Dalwood, Chief Executive Officer said:
“We have continued to build and invest in our platform to achieve our strategic and financial objectives set out in the “GH25” plan. Our AUM growth is testament to the strength and resilience of our investment strategies and our talented team despite the challenges due to the COVID-19 pandemic.
With the strong foundation and robust balance sheet, we remain confident of maintaining our long-term growth trajectory.”