Trading Statement
13/07/2022 07:00
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RNS Number : 2484S Gresham House PLC 13 July 2022
13 July 2022
Gresham House plc
("Gresham House", the "Company" or the "Group")
Trading update
Continued strong growth and delivery of strategy in H1: AUM +11% to £7.3bn
Gresham House, the specialist alternative asset manager, is pleased to
announce a trading update for the six-month period to 30 June 2022 1 (#_ftn1)
.
Highlights
· Strong progress against the Group's five year 'GH25' financial
and strategic objectives, with AUM growth of £0.8bn to £7.3bn (+11%) in H1,
from £6.5bn (31 December 2021), including organic growth of £0.5bn (+8%)
· Adjusted operating profit and margin expected to be at least in
line with market expectations(2) for the six months to 30 June 2022 and the
full year to 31 December 2022
· Several significant fundraises in private asset funds completed,
including a £150mn oversubscribed fundraise for Gresham House Energy Storage
Fund plc (GRID) and a £65mn fundraise for UK shared ownership housing fund,
Gresham House Residential Secure Income LP (ReSI LP)
· Net inflows to the Group's open-ended equity funds of £70mn,
despite strong macroeconomic headwinds and lower stock market valuations
· Fundraising closes for the Baronsmead and Mobeus VCTs of £70mn
· Completion of the acquisition of Burlington Real Estate in
Ireland, which is already delivering growth in the Gresham House Commercial
Property Fund
· £13mn development capital deployed by the Group to develop new
energy projects to support wider business growth
· Strongest client pipeline since the management team launched GH25
in 2020, with new clients and identified commitment indications across funds
including British Sustainable Infrastructure Fund (BSIF) II, both UK and
international forestry funds, real estate, and battery energy storage systems
Trading review
Gresham House delivered a strong and resilient performance in H1, with
adjusted operating profit and margin currently expected to be at least in line
with market expectations at both the half and full-year 2022 results. The
Group continues to make good progress towards delivery of its GH25 financial
and strategic objectives, despite the challenging backdrop including volatile
equity markets, high levels of inflation, and rising interest rates. This
continued performance has largely been driven by the Group's long-term and
sustainability-focused private asset classes which are in areas of structural
growth and typically less correlated with equity markets.
Funds raised
The Group has successfully exceeded its fundraising targets for H1 2022,
contributing to an AUM increase to £7.3bn as at 30 June 2022 (31 December
2021: £6.5bn).
In May 2022, Gresham House Energy Storage Fund plc (LSE: GRID), the Group's
listed utility-scale battery energy storage fund, completed a significantly
oversubscribed placing to raise £150mn.
Other notable fundraises include Gresham House Forestry Fund VI LP, which held
a first close with commitments of £75mn from institutional clients, and
£80mn raised in our affordable housing funds, comprising commitments to
Gresham House Residential Secure Income LP of £65mn and an equity capital
raise by Residential Secure Income plc of £15mn.
The Group also notes that it was pleased to see net-inflows of £70mn into its
open-ended equity funds in H1 2022, and £70mn raised for the Baronsmead and
Mobeus VCTs which achieved their maximum fundraising targets in the first
quarter, despite strong macroeconomic headwinds and lower stock market
valuations.
The growth in asset allocation to specialist alternatives continues alongside
specific demand for our asset classes. The pipeline of indicated commitments
to the British Sustainable Infrastructure Fund (BSIF) II, international and UK
forestry funds and real estate funds in H2 continues to be strong.
International expansion
The Group has continued its international expansion in the period, completing
the acquisition of Irish independent commercial property asset and development
management company, Burlington Real Estate, in March 2022 for €1.8mn. This
consolidated the partnership already existing in the award-winning Gresham
House Commercial Property Fund. Gresham House in Ireland has already seen
growth in this Fund in H1.
The Group's international forestry activity also continued to grow, acquiring
New Zealand forestry and carbon credit assets for £49mn on behalf of an
institutional client.
The Group was also pleased to note GRID's intention to expand internationally
to capture the wider battery energy storage growth opportunity.
Development projects
The Group has continued to deploy its balance sheet strategically into
development projects, including investment of £13mn to develop battery energy
storage and renewable energy projects. The battery energy storage projects are
part of the exclusive pipeline to be sold to GRID once operational and have
each delivered historic returns in excess of 30% IRR.
Tony Dalwood, Chief Executive of Gresham House, said:
"It's pleasing to see Gresham House continuing to deliver excellent
performance. Having grown AUM to £7.3bn, we are well placed to meet market
expectations, and deliver against our objectives despite the macroeconomic
challenges."
"With several fundraising initiatives underway across our divisions, and a
growing international presence, Gresham House is well positioned for the
second half of 2022 to continue growing the business in line with our
strategy."
1 Unaudited
(2) Market expectations defined as broker reports that follow Gresham House
plc as at 13 July 2022
Ends
For more information contact:
Gresham House plc
Tony Dalwood, Chief Executive Officer +44 (0)20 3837 6270
Kevin Acton, Chief Financial Officer
Houston - Media and analysts
Kay Larsen gh@houston.co.uk (mailto:gh@houston.co.uk)
Joseph Burgess +44 (0)204 529 0549
Canaccord Genuity Limited - Nominated Adviser and Joint Broker
Bobbie Hilliam
Georgina McCooke +44 (0)20 7523 8000
Jefferies International Limited - Joint Broker
Paul Nicholls +44 (0)20 7029 8000
Max Jones
About Gresham House
Gresham House is a specialist alternative asset management group, dedicated to
sustainable investments across a range of strategies, with expertise across
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
c.£7.3 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, we
are committed to operating responsibly and sustainably. We believe taking the
long view in delivering sustainable investment solutions will continue to be a
growing factor in the strength of our market positioning.
www.greshamhouse.com (http://www.greshamhouse.com)
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the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the
Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication
of this announcement, this information is now considered to be in the public
domain.
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