Gresham House plc Annual Results for the Year Ended 31st December 2021

15 March 2022

Gresham House plc

(“Gresham House,” “the Group” or “the Company”)

Annual Results for the year ended 31 December 2021 

65% AUM increase to £6.5bn with strong organic growth

The Board of Gresham House plc, (AIM: GHE), the specialist alternative asset manager, is pleased to announce a year of significant growth, both organically and through acquisitions. Assets under management (AUM) rose 65% to £6.5 billion. Growth in AUM has led to material growth in revenue, operating margin and profit. The Group made strong progress against its GH25 strategic objectives and increased its AUM target in November 2021 to £8.0 billion. The Board is pleased to confirm that following the achievement of adjusted diluted EPS of 49.4p, up 50%, it is recommending a 67% increase in the dividend to 10.0 pence (2020: 6.0 pence).

Financial highlights

• Substantial AUM growth of 65% to £6.5 billion (2020: £4.0 billion), with organic growth of £1.9 billion (c.50%)

o  Driven by strong fundraising, targeted acquisitions, and investment performance

• Strong net core income growth of 51% to £61.6 million (2020: £40.8 million)
• Growth in adjusted operating profit of 67% to £20.2 million (2020: £12.1 million) and 50% increase to adjusted diluted EPS to 49.4 pence (2020: 32.9 pence)
• Return on Capital Employed increased to 34.1% (2020: 16.0%)
• Final dividend proposed to increase by 67% to 10.0 pence (2020: 6.0 pence)
• Strong balance sheet with £40.3 million cash; £20.0 million undrawn RCF; plus £38.0 million investments

Strategic highlights

• Outstanding fundraising performance, with net inflows of £1.2 billion (2020: £0.4 billion) across all of the Group's strategies, including:

o  £206 million of net inflows in Strategic Equity open-ended and VCT funds

o  £100 million of additional fundraising for Gresham House Energy Storage Fund plc (GRID)

o  £202 million raised for new forestry fund Gresham House Forest Growth & Sustainability LP

o  £150 million BSIF II LP, the Group's second sustainable infrastructure fund

o  £430 million from AXA IM Alts Australian forestry mandate

• Continued growth and diversification of client base across broadening range of institutional and wholesale investors

o  Driven by product development and targeting of growing channels

• Targeted acquisitions have enhanced AUM by £625 million and enhanced the Group's potential:

o  International footprint established following completion of Appian Asset Management Limited acquisition, an EU-based AIFM in June 2021

o  Private Equity platform substantially augmented by acquisition of VCT business of Mobeus Equity Partners LLP in October 2021

• Further established market leadership in sustainability across battery storage, solar, wind, forestry, housing, and sustainable infrastructure
• Continued investment in talent to facilitate future growth in AUM
• Leading position in UK forestry in 2021 supports winning of international mandates in Australia and Ireland
• Well positioned for further growth across all asset classes in 2022 and beyond

GH25 upgrades

• GH25 five-year strategy target for AUM increased from £6.0 billion to £8.0+ billion
• EBITDA margin of 32.7% (2020: 29.6%), on track to achieve 40.0% target
• GH25 ROCE target raised from 15% to '20% over the medium term'
• Dividend policy established to target three times adjusted operating profits coverage by the end of GH25

Commenting on the results, Tony Dalwood, Chief Executive of Gresham House, said:

“Throughout 2021 we made exceptional progress on the delivery of our GH25 five-year strategy and are reporting outstanding growth in AUM, profitability and revenue. We are focused on private assets which exhibit long-term superior investment returns alongside sustainability characteristics.

“We have demonstrated our ability to grow organically and to add value through acquisitions, providing an exciting future for our Group. Gresham House Ireland and the Mobeus VCT businesses enhance the strategic ambitions and potential for the Group.

“Momentum across the business continues to be buoyed by the structural shift driving fund inflows into alternative asset classes as we continue to diversify our client base. Our ESG-focused strategy and strong investment performance mean we are well placed to capture the rising demand for investments that deliver both financial returns and sustainable, climate-based solutions.

“In light of our excellent 2021 performance, we are well on track to achieve our GH25 objectives and have therefore upgraded our targets in accordance with our ambition and strategic goals. Despite the current macroeconomic environment and geo-political events, we are confident of further growth throughout 2022 as we continue to deliver value to all our stakeholders.”

Gresham House is hosting its Annual Results webinar at 09:00am today.
Link: https://greshamhouse.zoom.us/webinar/register/WN_ReTB3jbdTVC_JbWkP2sEaQ

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014

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About Gresham House

Gresham House is a specialist alternative asset management group, focused on sustainable investments across a range of investment strategies, including forestry, housing, sustainable infrastructure, renewable energy and battery storage, public and private equity.

Our origins stretch back to 1857, while our focus is on the future and the long term. Quoted on the London Stock Exchange (GHE:LN) we actively manage £6.5 billion of assets on behalf of institutions, family offices, charities and endowments, private individuals and their advisers. We act responsibly within a culture of empowerment that encourages individual flair and entrepreneurial thinking.

As a signatory to the UN-supported Principles for Responsible Investment (PRI), our vision is to always make a positive social or environmental impact, while delivering on our commitments to shareholders, employees and investors. www.greshamhouse.com