Gresham House Strategic Plc - Half-Year Results
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Gresham House Strategic plc
Interim results for the six months to 30 September 2020
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 2020.
- Strong NAV recovery, with NAV Total Return of 15.1% in the period versus the FTSE All Share Total Return of 7.3% and in line with the FTSE Small Cap Index Total Return of 15.2%
- £9.1m of new investments during the period
- 20% increase in the proposed interim dividend
- NAV Total Return of 29.9% since inception - outperforming comparator indices such as the FTSE Small Cap Index ex-Investment Trusts by 28.1%
Investment Management highlights
- Four significant investments - £2.4m equity investment into Flowtech Fluidpower plc, £2.6m into RPS Group plc, £2.1m into Van Elle Holdings plc and a significant upweighting of Fulcrum Utility Services plc. Three further new initial investments
- Full exit of IMImobile plc shares, generating a +23.8% IRR and 1.85x Money Multiple - £14.6m realised profit
- Further portfolio re-balancing progress within the period with three other investments fully exited, including receiving a premium on the Convertible Loan Note held in Be Heard Group plc which was subject to a takeover
- Re-negotiation of Convertible Loan Note at Northbridge Industrial Services plc, reducing conversion price
- Material engagement across the portfolio supporting the unlocking and driving of shareholder value
- Positive share price performances from recent new investments Fulcrum Utility Services plc, Van Elle Holdings plc and ULS Technology plc and resilient financial results from Augean plc
David Potter, Chairman of Gresham House Strategic plc, commented:
"In difficult times for markets and the economy, we have full confidence in the investment team, strategy and portfolio. We look forward to further NAV growth, while narrowing the share price discount and are pleased to continue growing our dividends ahead of the market."
Richard Staveley, Fund Manager and Managing Director of Strategic Public Equity, Gresham House, said:
"It has rarely been more important for investors to have a strong investment philosophy and process to tackle the challenges presented in 2020, fortunately we have one in the Strategic Public Equity strategy. This means we are able to cut through the market noise and focus on business fundamentals, the medium-term outlook for companies, not only the immediate issues, and spend focused time on severely undervalued and under researched small companies. UK Equities have rarely been cheaper compared to history, other international markets and different asset classes. We have grasped this rare opportunity with both hands and deployed capital to drive material NAV growth in the years ahead."
The full version of the GHS interim report will be available on its website shortly at www.ghsplc.com .
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 (MAR). Upon the publication of this announcement, this inside information is now considered to be in the public domain. For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of GHS by David Potter, Chairman.