Interim Management Statement

Interim Management Statement

Gresham House plc

GRESHAM HOUSE plc (“the Company”)

Interim Management Statement (Unaudited)

Introduction

This Interim Management Statement (the “Statement”) has been prepared in order to provide information to meet the requirements of the UK Listing Authority’s Disclosure and Transparency Rules. The Statement covers the three month period to 31 March 2012 together with relevant information up to the date of publication.

Investment Objective

Gresham House plc is an authorised investment trust listed on the London Stock Exchange. Following the passing of an ordinary resolution at the Company’s Annual General Meeting held on 19 May 2011, the Company’s objective is now the orderly realisation of the Group’s assets over a period of approximately two years with a view to returning capital to shareholders thereafter.

Material Events and Transactions

The Company’s final results for the year ended 31 December 2011 were announced on 27 April 2012 and are available on the Company’s website www.greshamhouse.com.

The Directors are aware of the following events or transactions which have occurred in the period from 1 January 2012 to the date of this Statement:-

(i) planning consent has been received for the development of a new Lidl foodstore at the site in Vincent Lane, Dorking. Contracts were exchanged in March 2011 for the sale of 1.1 acres of the three acre site for £1.88m in cash, subject to the receipt of planning permission. The sale is now expected to complete in August 2012.

(ii) conversely the planning application made by Persimmon for the remainder of the site at Vincent Lane, Dorking was rejected despite the planning officers’ recommendation to grant a consent. Persimmon is now considering the most appropriate method of appeal. Contracts have been exchanged for the sale for a sum of £3.035m subject to receipt of planning permission.

(iii) A planning application has been submitted at Newton-Le-Willows on the 10 acres nearest to the town centre for a 6,500 sq m foodstore, petrol filling station and 464 car park spaces. Determination is expected in Q3 this year.

(iv) the decrease of 0.7% in the IPD UK Quarterly Property Index for Capital Growth for the three months ended 31 March 2012.

(v) as at 31 March 2012 the value of the securities portfolio had increased by approximately 2.2% since 31 December 2011 compared with an increase in the FTSE All Share Index of 5.1%.

The Company has one class of share capital: ordinary shares of 25p each. There have been no changes in the issued share capital of the Company since 31 December 2011, which at today’s date, remains at 5,369,880 shares.

Financial Information

Investments - Properties

Investment properties are shown at fair value based on current use. All investment properties were valued by Jones Lang LaSalle Limited, Chartered Surveyors, as at 31 December 2011 at a combined total of £27,443,000. These external valuations were carried out on the basis of market value in accordance with the latest edition of the Valuation Standards published by the Royal Institution of Chartered Surveyors. The directors do not consider that there has been any material change in the value of these properties since year end.

Rental income on the property portfolio for the three months ended 31 March 2012 was £251,000 compared with £1,036,000 for the year ended 31 December 2011. As stated in the Report of the Directors contained within the financial statements for the year ended 31 December 2011, the amount of vacant space as at 31 December 2011 was 349,924 sq. ft. representing 54% of the total available. There has been no significant change to these numbers since year end.

Investments - Securities

	Â	As at 31.03.2012 Unaudited	Â	As at 31.12.2011 Audited
		£’000		£’000
Listed securities – on the London Stock Exchange		1,548		2,270
Securities dealt in under AIM		1,517		1,370
Securities dealt in under PLUS Market		102		153
Unlisted securities		5,365		5,285
		Â		Â
TOTAL		8,532		9,078

Top Ten Investments at 31 March 2012

	Â	Market Value	Â	% of portfolio
		£’000s
Memorial Holdings Limited #		2,568		30.1
SpaceandPeople plc*		1,207		14.1
Standard Chartered Bank 6% bond‡		1,043		12.2
Attila (BR) Ltd Loan notes#		906		10.6
SMU Investments Ltd #		890		10.4
AudioGravity Holdings Limited #		590		6.9
HSBC Bank 5.75% bond ‡		418		4.9
Avesco Group plc*		310		3.6
Xceed Imaging Limited #		200		2.4
Lancashire Tea Limited #		170		2.0
		Â		Â
		8,302		97.2
					Â
‡ UK Listed
* AIM Traded Securities
# Unlisted Securities

Securities have been valued on the same basis as that adopted in the Group’s Consolidated Financial Statements for the year ended 31 December 2011.

The investment in Memorial Holdings Limited represents a 15% shareholding in this company which is currently developing a 55 acre cemetery at Kemnal Park in the London Borough of Bromley. It is anticipated that the cemetery will commence trading in the summer with completion of the chapel by end 2012.

Sector analysis as at 31 March 2012

	Â	% of securities portfolio
Financial		29
Property investment		41
Media		20
Engineering		8
Foods		2
		Â
		100

Comparative movements

	Â	31.03.2012 Unaudited	Â	31.12.2011 Audited	Â	% change
Basic net asset value per ordinary share		N/A		447.0p		N/A
Share price (pence)		331.50		259.50		27.7
FTSE All Share index		3,002.78		2,857.88		5.1

Further information on the Company and Group, including a copy of this Statement, can be found at www.greshamhouse.com.

D Lucie-Smith

Chief Executive Officer

18 May 2012