Board Change and Announcement of Strategic Review

RNS Number : 5111Z

Gresham House Strategic PLC

24 May 2021

 

This announcement contains inside information

24 May 2021

Gresham House Strategic plc ("GHS")

Retirement of Chairman and Announcement of Strategic Review

The Board of GHS announces that David Potter, Chairman, has advised the Board that he will be retiring from the Board and will not be standing for re-election at the forthcoming Annual General Meeting in September 2021.  A process to identify a successor has already commenced.

David was the principal driving force to establish GHS after the winding up of Spark Ventures VC portfolio in 2015.  During David's period as Chairman, GHS has delivered strong investment returns and has been one of the best performing small company investment funds in the UK pursuing its strategic public equity strategy under the asset management of Gresham House Asset Management ("GHAM").  Over the last five years, the share price has approximately doubled and its discount to net asset value has narrowed considerably.  The Board of GHS will miss David's involvement and wishes him well.

The Board of GHS is disappointed that despite the strong investment and share price performance that it has not been possible to raise additional equity due to the continued existence of the discount of the share price to net asset value.  The future growth of GHS is therefore limited due to the lack of availability of new funds for investment at a time when both several attractive investment opportunities exist and GHS would be a benefit from taking larger stakes in some of its existing investments.

Accordingly, with the announcement of David's retirement, it is timely for the Board of GHS to commence a strategic review ("Strategic Review") of the existing strategy against other strategic options available to GHS with the objective of determining the best course of action to provide growth in value for shareholders. This review will be conducted in conjunction with an independent financial adviser who is expected to be appointed shortly.

As a part of the Strategic Review the continuing role of GHAM as asset manager will be considered.  The Board of GHS does not wish to pre-empt the results of the Strategic Review, as it is certainly possible that the existing asset management arrangements will be retained.  Nonetheless, the Board believes it is prudent to serve protective notice on GHAM.  Accordingly, the Board has today, in accordance with the investment management agreement between GHS and GHAM, served 12 months' notice which may be revoked at any time by GHS.

It is expected that the Strategic Review will be concluded by the forthcoming Annual General Meeting at which time a further announcement will be made.

The Board of GHS has received from Rock Nominees Limited a requisition dated 21 May 2021 for an Extraordinary General Meeting of the shareholders of GHS. An announcement containing a summary of the proposed resolutions will be released immediately after this announcement.

Gresham House Strategic plc

24 May 2021

This announcement contains inside information for the purposes of Article 7 of the UK version of the Market Abuse Regulation (EU No. 596/2014) as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018. The person responsible for this announcement on behalf of GHS is Thomas Verlander, Company Secretary.

Enquiries:

Thomas Verlander, Company Secretary, [phone]

Nominated Advisor & Broker

finnCap Ltd  [phone]

Stuart Andrews

William Marle

 

END

 

 

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