TIDMGHE
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 GBP6.0bn,
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 GBP18.5m 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 GBP600m 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
GBP150m and, together with our plans for climate transition
strategies, is intended to support an identified pipeline for
deployment of over GBP1.6bn.
-- 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 GBP200m
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 +44 (0)20 3837 6270
Houston - media and analysts
Alexander Clelland +44 (0)20 4529 0549
Kay Larsen gh@houston.co.uk
Canaccord Genuity Limited - Nominated Adviser
and Joint Broker
Bobbie Hilliam
Georgina McCooke +44 (0)20 7523 8000
Jefferies International Limited - Joint Broker
and Financial Adviser
Paul Nicholls
Max Jones +44 (0)20 7029 8000
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTUWVBRARUURAA
(END) Dow Jones Newswires
December 09, 2021 02:00 ET (07:00 GMT)
Gresham House (LSE:GHE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Gresham House (LSE:GHE)
Historical Stock Chart
From Apr 2023 to Apr 2024