Interim results for the six months ended 30 June 2019
Continued organic growth and integration synergies captured
Gresham House plc, (AIM: GHE) the specialist alternative asset manager, is pleased to report a strong first half of the year with significant improvements in income and adjusted operating profit as the Group focused on consolidating and progressing its organic growth priorities whilst continuing to develop new investment products and clients.
Highlights
|
|
As at 30 Jun 19 |
As at 31 Dec 18 |
Change |
|
|
(£m) |
(£m) |
(%) |
|
Assets under management |
2,450 |
2,268 |
8.1 |
|
Cash and liquid assets1 |
36.3 |
32.8 |
10.6 |
|
|
|
|
|
|
|
Six months to 30 Jun 19 |
Six months to 30 Jun 18 |
Change |
|
|
(£m) |
(£m) |
(%) |
|
Total income |
15.3 |
4.9 |
+209 |
|
Total comprehensive income |
(0.7) |
(0.4) |
-83 |
|
Adjusted operating profit2 |
4.4 |
0.4 |
+1,090 |
1Cash and liquid assets includes cash and investments in tangible and realisable assets
2Adjusted operating profit is defined as the net trading profit of the Group before deducting amortisation, depreciation and exceptional items relating to acquisition and restructuring costs.
- AUM increased to £2.5 billion entirely driven by organic growth, enabling a significant increase in income to £15.3 million (H1 2018: £4.9 million) and adjusted operating profit to £4.4 million (H1 2018: £0.4 million)
- Captured annualised acquisition synergies of over £1.0 million
- Adjusted operating margin of 29% (H1 2018: 8%) – strong progress towards the Company's stated target of 40%
- Organic growth in AUM of £183 million includes fundraising of £50 million from Gresham House Energy Storage Fund plc (GRID), £25 million from Baronsmead VCTs and £94 million from Forestry
- Sustained balance sheet strength with cash and liquid assets of £36.3 million – driven by cash generation from the operating business and allowing further investment in people and platform for enhanced long-term growth
- Zero debt – fully repaid £10.0 million debt facility in July 2019 (repaid £7.0 million in period to 30 June 2019)
- Paid maiden dividend under new management team of 3.0p in the period
- Significant Irish forestry mandate awarded by AXA Investment Managers – Real Assets, taking the Group international and highlighting the sustainable investment capabilities of the Group
- Since 30 June 2019 continued fundraising with an additional £15.0 million for GRID, and we anticipate a further fundraising close for BSIF during the second half of the year
Commenting on the results, Tony Dalwood, Chief Executive, said:
“Our focus on alternative asset management remains increasingly of interest as allocations to these areas continue to build. Alongside revenues, the Gresham House brand is growing, and we are increasingly well-placed for the important shift towards ESG and sustainable investment.
“Trading in the first half of 2019 has been in line with our expectations and we feel well positioned for the remaining part of the year.
“We have made significant progress developing our platform, including enhanced capability within sales and distribution, in order to scale in the future whilst looking at international opportunities in a post-Brexit world.”