Trading update

RNS Number : 0419V

Gresham House PLC

09 December 2021

 

9  December 2021

Gresham House plc

("Gresham House," "the Group" or "the Company")

Trading update

AUM growth and profit significantly ahead of expectations

Gresham House (AIM: GHE) the specialist alternative asset manager, is pleased to provide the following trading update for the financial year ended 31 December 2021.

The Group has delivered exceptionally strong growth with accelerating momentum continuing into the fourth quarter of 2021. Following the completion of an international forestry transaction, the Board expects to significantly outperform market expectations, delivering Assets Under Management ("AUM") in excess of £6.0bn, at least a 50% increase since the end of last year, driving further expected substantial increases in profit and margins. Adjusted operating profit is expected to be at least £18.5m and margins in excess of 32%, not including performance fees.

· The Forestry division has continued to benefit from demand for the asset class, particularly from institutional investors. New business AUM is expected to increase by over £600m in 2021 and includes further international expansion with completion of an Australian forestry mandate:

o  As announced on 26 July 2021, Gresham House was appointed as asset manager for the 24,800-hectare Australian forestry investment, Green Triangle Forest Products, by AXA IM Alts.

o  The launch of the Gresham House Forest Growth & Sustainability LP has been well received with a second close expected within six months of launch.

· The platforms within Sustainable Infrastructure are increasingly recognised as offering both attractive financial returns alongside identified social and environmental returns in areas such as vertical farming and digital infrastructure. A second close of the British Sustainable Infrastructure Fund II LP (BSIF II) is expected imminently to increase total commitments in 2021 to £150m and, together with our plans for climate transition strategies, is intended to support an identified pipeline for deployment of over £1.6bn.

· The Strategic Equity team is benefiting from continued strong investment performance which is supporting growth in the open-ended equity funds and VCT areas, which have scaled through over £200m of net inflows year to date.

Tony Dalwood, Chief Executive of Gresham House, commented:

"It is extremely pleasing to see the strength of Gresham House's asset classes and ESG-focused investments continuing to deliver excellent investment performance and contributing to clear progress towards our GH25 ambitions. Generating strong performance for our clients, whilst offering asset classes which are increasingly in demand, has brought very strong growth across the entire Group. This has resulted in the substantial increases to our forecasts that we are announcing today including a 50% increase in assets under management for the year.

"Our client base is growing and diversifying as investors seek solutions for long term sustainable investing that provide both best practice governance and strong performance. We also continue to build out the Group's international footprint with the addition of an Australian forestry mandate. The structural growth drivers for the alternative asset management sector remain strong, and our investment this year in talent across the business puts us in an excellent position to drive further momentum and growth into the new year and beyond. The Board looks forward to updating the market further at our Full Year results which will be released in March 2022."

- Ends -

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

For more information contact:
Gresham House plc     Tony Dalwood, Chief Executive Officer   Kevin Acton, Chief Financial Officer	[phone]
Houston - media and analysts      Alexander Clelland     Kay Larsen	[phone]  [e-mail]
Canaccord Genuity Limited - Nominated Adviser and Joint Broker     Bobbie Hilliam     Georgina McCooke	[phone]
Jefferies International Limited - Joint Broker and Financial Adviser  Paul Nicholls     Max Jones	[phone]

Certain statements contained in this announcement constitute "forward-looking statements" with respect to the financial condition, performance, strategic initiatives, objectives, results of operations and business of the Company. All statements other than statements of historical facts included in this announcement are, or may be deemed to be, forward-looking statements.  Without limitation, any statements preceded or followed by or that include the words "targets", "forecasts", "plans", "believes'", "expects", "aims", "intends", "anticipates", "estimates", "projects", "will", "may", "would", "could" or "should", or words or terms of similar substance or the negative thereof, are forward-looking statements.  Forward-looking statements include statements relating to the following: (i) future capital expenditures, expenses, revenues, earnings, synergies, economic performance, indebtedness, financial condition, dividend policy, losses and future prospects; and (ii) business and management strategies and the expansion and growth of the Company's operations. Such forward-looking statements involve risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. Many factors could cause actual results, performance or achievements to differ materially from those projected or implied in any forward-looking statements. The important factors that could cause the Company's actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, economic and business cycles, the terms and conditions of the Company's financing arrangements, foreign currency rate fluctuations, competition in the Company's principal markets, acquisitions or disposals of businesses or assets and trends in the Company's principal industries.  Due to such uncertainties and risks, you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements in this announcement may not occur. The forward-looking statements contained in this announcement speak only as of the date of this announcement.  The Company and its Directors each expressly disclaim any obligation or undertaking to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so by applicable law or regulation, the AIM Rules,  UK MAR, the DTRs, the rules of the London Stock Exchange or the Financial Conduct Authority.

 

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