GHE – DirectorsTalk Interviews https://www.directorstalkinterviews.com LSE London Stock Exchange PLC Company Interviews Tue, 21 May 2019 13:08:44 +0000 en-GB hourly 1 Gresham House Plc Appointed for landmark Irish forestry mandate https://www.directorstalkinterviews.com/gresham-house-appointed-for-landmark-irish-forestry-mandate/412783073 Tue, 21 May 2019 13:07:42 +0000 https://www.directorstalkinterviews.com/?p=783073 Gresham House Plc (LON: GHE), the specialist alternative asset manager, today announces that Gresham House Asset Management has been appointed by AXA Investment Managers – Real Assets as the exclusive asset manager to a 4,074-hectare portfolio of mature Irish forests on a long term contract. The appointment follows the acquisition of the Portfolio by AXA ...

This article Gresham House Plc Appointed for landmark Irish forestry mandate was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
Gresham House Plc (LON: GHE), the specialist alternative asset manager, today announces that Gresham House Asset Management has been appointed by AXA Investment Managers – Real Assets as the exclusive asset manager to a 4,074-hectare portfolio of mature Irish forests on a long term contract.

The appointment follows the acquisition of the Portfolio by AXA IM – Real Assets, acting on behalf of clients, from several Irish forestry funds managed by the forestry consultancy Veon Limited. Veon Limited is being retained to provide forestry management services.

The Portfolio, which is historically very large by UK and Irish standards, is divided across 185 estates throughout Ireland. Comprising one of Europe’s fastest growing wood types and the main and most valuable commercial conifer species in Ireland and the UK, it benefits from good local infrastructure and proximity to a number of saw mills.

GHAM is committed to a long-term investment strategy and financial commitment to the Portfolio, bringing stability and sustainability to these important assets which will aim to continue to provide commercial, social and environmental benefits to the Irish economy, and which mark Irish forestry’s transition into a large-scale commercial sector.

With an existing portfolio of real assets ranging from renewables, infrastructure and forestry, GHAM is the UK’s largest commercial forestry manager, harvesting circa 10% of the UK’s total softwood annually. Following this major appointment, it will manage over 129,000 hectares of forests on behalf of institutions, endowments, family offices and private investors.

Tony Dalwood, Chief Executive Officer of Gresham House plc, added: “The strategic rationale for this partnership, alongside the potential financial returns, are clear and exciting for Gresham House. As the UK’s largest private forestry investment manager, this Portfolio marks the first step in our ambition to develop a long-term international business platform, increasing assets under management across a wide array of real asset investments. It also gives us a foothold in Ireland which may benefit our wider asset management business as Brexit unfolds. We believe there is a significant investment opportunity in forestry and this area will continue to be a key focus for Gresham House moving forward as we look for further ways to add value for our clients.”

Commenting on the new mandate, GHAM’s Managing Director of Forestry, Olly Hughes, said: ​

“We are thrilled to have brought this landmark transaction together and to support AXA IM – Real Assets’ efforts to offer investors long-term sustainable investments. Environmental, social and governance concerns are becoming increasingly important for investors. Not only is forestry renewable and satisfies ESG criteria, it is also a portfolio diversifier and delivers excellent returns being uncorrelated to stock markets, protected against inflation and possessing significant tax advantages. As the asset class continues to grow in popularity, we believe Gresham House Forestry will be well positioned to meet the increasing demand from investors not only in the UK and Ireland but also across Europe more generally.

Richard Hoare, Chairman of Veon, said:

“We are pleased to have realised this important transaction for the Irish Forestry Funds and to continue our involvement in their long-term stewardship. This is a very positive development for our shareholders, with the Portfolio’s value and returns serving as a strong endorsement of the Irish forestry and timber sector. We look forward to playing our part in continuing to grow the national forest estate and helping further develop the forest industry which is of critical importance in combatting the effects climate change.”

Follow this article (for updates)
X

Follow this article (for updates)

E-mail : *
* Your personal data will be used to support your experience throughout this website and for other purposes described in our Privacy Policy. I hereby agree and consent to the privacy policy.

This article Gresham House Plc Appointed for landmark Irish forestry mandate was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
...
Gresham House plc Trading in line with management’s expectations https://www.directorstalkinterviews.com/gresham-house-plc-trading-in-line-with-managements-expectations/412782516 Thu, 16 May 2019 06:10:33 +0000 https://www.directorstalkinterviews.com/?p=782516 Gresham House plc, (LON: GHE) the specialist alternative asset manager, will hold its Annual General Meeting today at 12.30 pm in Octagon Point, 5 Cheapside, London, EC2V 6AA. Anthony Townsend, Gresham House plc Non-Executive Chairman, will make the following statement: “The Company is pleased to announce that current trading of the business is in line ...

This article Gresham House plc Trading in line with management’s expectations was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
Gresham House plc, (LON: GHE) the specialist alternative asset manager, will hold its Annual General Meeting today at 12.30 pm in Octagon Point, 5 Cheapside, London, EC2V 6AA.

Anthony Townsend, Gresham House plc Non-Executive Chairman, will make the following statement:

“The Company is pleased to announce that current trading of the business is in line with management’s expectations. As highlighted in recent announcements, the Group continues to successfully target organic growth from its Strategic Equity and Real Assets divisions alongside identified synergies from acquisitions executed in 2018.

“The international expansion of the Forestry division has started. A new relationship with a large institutional investor has resulted in a signed letter of intent for the asset management of a substantial Irish forestry portfolio on its behalf. This successful and significant development is an example of how far our Forestry division’s integration plans have progressed and involved all parts of the integrated Group.

“Additionally, a new fund raising has commenced for Gresham House Energy Storage Fund plc (GRID), following the recent announcement of a placement of up to £75 million to acquire further battery storage projects.

“We have started the year in line with management plans and have made good progress developing the international side of the Forestry business through the proposed organic growth into Ireland. The quality of our business’ brand and its people is increasingly being recognised through industry awards and we remain optimistic for the rest of 2019.”


Follow this article (for updates)

X

Follow this article (for updates)

E-mail : *

*
Your personal data will be used to support your experience throughout this website and for other purposes described in our Privacy Policy. I hereby agree and consent to the privacy policy.

This article Gresham House plc Trading in line with management’s expectations was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
...
Gresham House Plc Management Invest in Company Shares https://www.directorstalkinterviews.com/gresham-house-plc-management-invest-in-company-shares/412770415 Fri, 22 Mar 2019 07:08:41 +0000 https://www.directorstalkinterviews.com/?p=770415 Gresham House plc (LON: GHE), the specialist alternative asset manager, announces that certain directors and employees have elected to invest and defer up to the maximum amount permitted of their 2018 bonus award into ordinary shares in the Company pursuant to the Company’s Bonus Share Matching Plan. The purpose of the Plan is to encourage ...

This article Gresham House Plc Management Invest in Company Shares was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
Gresham House plc (LON: GHE), the specialist alternative asset manager, announces that certain directors and employees have elected to invest and defer up to the maximum amount permitted of their 2018 bonus award into ordinary shares in the Company pursuant to the Company’s Bonus Share Matching Plan.

The purpose of the Plan is to encourage Gresham House employees to invest in the long-term growth of the Company. Under the Plan, equal portions of any award are subject to achieving 7 per cent. compound annual growth rate in total shareholder return and out-performing the FTSE All Share Index from the date of deferral. In the event that this performance condition is not met, the participants of the Plan will receive only the ordinary shares acquired with the deferred bonus.

Further details of the Plan are set out at page 91 of the 2018 annual report, which can be found on the Company’s website, www.greshamhouse.com.

Application has been made for the admission to trading on AIM for 107,225 Ordinary Shares issued under the Plan at a price of 445.33p per Ordinary Share, which equates to the average of the mid-market closing price over the ten trading days prior to Award as set out in as set out in the terms of the Plan. The new Ordinary Shares will rank pari passu in all respects with the existing Ordinary Shares of the Company. Admission of the new Ordinary Shares is expected on 27 March 2019.

Following Admission, Gresham House plc issued share capital will comprise 24,989,570 Ordinary Shares, which figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA’s Disclosure and Transparency Rules. The Company does not hold any shares in treasury.


Follow this article (for updates)

X

Follow this article (for updates)

E-mail : *

*
Your personal data will be used to support your experience throughout this website and for other purposes described in our Privacy Policy. I hereby agree and consent to the privacy policy.

This article Gresham House Plc Management Invest in Company Shares was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
...
Gresham House Plc Strategic Public Equity joint venture with Aberdeen Standard Investments https://www.directorstalkinterviews.com/gresham-house-plc-strategic-public-equity-joint-venture-with-aberdeen-standard-investments/412770279 Thu, 21 Mar 2019 11:10:34 +0000 https://www.directorstalkinterviews.com/?p=770279 Specialist alternative asset manager Gresham House Plc (LON: GHE) today announced that it has entered into an agreement with global asset manager Aberdeen Standard Investments which proposes the formation of a 50:50 joint venture relating to Gresham House’s top performing1 Strategic Public Equity strategy. The joint venture will establish a fund and seek to grow ...

This article Gresham House Plc Strategic Public Equity joint venture with Aberdeen Standard Investments was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
Specialist alternative asset manager Gresham House Plc (LON: GHE) today announced that it has entered into an agreement with global asset manager Aberdeen Standard Investments which proposes the formation of a 50:50 joint venture relating to Gresham House’s top performing1 Strategic Public Equity strategy. The joint venture will establish a fund and seek to grow funds under management over time.

The Strategic Public Equity team of Gresham House was selected by ASI as a joint venture partner on the basis of its long, successful track record investing in the strategic public equity space and the opportunity that this represents for clients and prospects. For Gresham House, the joint venture represents an opportunity to focus on its core investment process while benefiting from ASI’s global distribution capabilities to substantially increase assets under management.

The Parties believe that regulatory changes, such as MiFID II, have created a substantial investment opportunity at the smaller end of the quoted market where market inefficiencies and valuation dislocations exist, notably in companies with market capitalisations under £300 million.

The Parties also believe that an actively engaged investment approach, using the principles and practices of private equity, can achieve enhanced financial returns for investors. Gresham House’s SPE team has substantial experience in identifying undervalued smaller companies and it is this expertise that has driven ASI’s desire to form the joint venture.

In addition to the joint venture’s formation, ASI has also agreed to subscribe for 1,309,598 new Ordinary Shares in Gresham House plc at 496p per Ordinary Share, which rank equally with all other shares (the “Subscription”), representing 5.0% of Gresham House’s enlarged share capital as a result of the Subscription. The Subscription will be conditional on Gresham House obtaining standard shareholder authorities to issue the new Ordinary Shares at the Company’s 2019 AGM, scheduled for 16 May 2019. The Directors unanimously recommend that shareholders support the joint venture by voting in favour of the standard shareholder authorities at the AGM.

The Directors believe that enabling ASI to become a significant shareholder in the Company will increasingly align the interests of both Parties in the joint venture.

Commenting on the joint venture, Chief Executive of Gresham House, Tony Dalwood said:

“Like us, ASI understands the importance of specialist alternative investment strategies. The joint venture offers Gresham House access to a powerful distribution network and an industry-leading product development capability. The Strategic Public Equity investment approach is something I have been involved with since 2003 and we are delighted to have ASI as a shareholder in the process.”

Peter McKellar, Global Head of Private Markets at Aberdeen Standard Investments, commented:

“The structural changes, liquidity issues and declining research coverage amongst smaller companies provides a long-term opportunity to generate significant investment returns for our clients.

“The establishment of this joint venture is in reaction to client demand for exposure to the increasing opportunities in strategic public equity. We identified Gresham House as a compelling joint venture partner based on a belief that working with a team with their experience, depth of resource and strong track record can deliver a compelling investment opportunity for clients.”

Conditional novation of Investment Management Agreement with Gresham House Asset Management

Gresham House plc  has this morning announced that it has entered into an agreement which proposes the formation of a 50:50 joint venture with Aberdeen Standard Investments (“ASI”) relating to its Strategic Public Equity (“SPE”) strategy. The formation of the joint venture is subject to a number of conditions. It is expected that the joint venture will establish a new fund, grow funds under management that employ the SPE approach and accelerate the growth of Gresham House’s existing SPE strategy led by Graham Bird and Tony Dalwood.

As part of the arrangements, GHS has signed a novation agreement under which the existing Investment Management Agreement between GHS and Gresham House Asset Management will move to the joint venture once it is established.

There will be no changes to the terms of the investment management agreement. GHS will also continue to be managed by the same investment team using the same policies and processes. Consequently, the novation is not expected to have any impact on GHS.

GHS celebrated its third anniversary under Gresham House management in 2018. GHS’s NAV per share total return from inception to 15th March 2019 was 30.8%, growing 12.5% ahead of the total return of its benchmark the FTSE Small Cap (ex-investment trusts). GHS was also the top-performing fund in its segment in 2018, and this strong performance has continued into 2019 with the NAV +5.1% YTD 2019. GHS continues to review opportunities to scale the vehicle and promote this top-performing fund on a larger platform and the joint venture with ASI is expected to assist in that development.

Commenting on the developments, David Potter, Chairman of GHS said:

“The announcement by Gresham House and Aberdeen Standard Investments is an encouraging and positive endorsement of the Strategic Public Equity Strategy and one which we welcome. We believe GHS will benefit in future from the growing profile this investment strategy is enjoying as a result of the proposed joint venture, from increased resources that the joint venture is expected to provide, and from the broad distribution capabilities of ASI.”


Follow this article (for updates)

X

Follow this article (for updates)

E-mail : *

*
Your personal data will be used to support your experience throughout this website and for other purposes described in our Privacy Policy. I hereby agree and consent to the privacy policy.

This article Gresham House Plc Strategic Public Equity joint venture with Aberdeen Standard Investments was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
...
Market Risers: Gresham House plc, 3i Group plc, Anglo American plc, Associated British Foods plc & Be Heard Group PLC https://www.directorstalkinterviews.com/market-risers-gresham-house-plc-3i-group-plc-anglo-american-plc-associated-british-foods-plc-be-heard-group-plc/412769842 Mon, 18 Mar 2019 12:07:26 +0000 https://www.directorstalkinterviews.com/?p=769842 Stock in Gresham House plc ticker code: LON:GHE has increased 4.17% or 20 points during today’s session so far. Traders have stayed positive throughout the session. The high for the period has peaked at 500 and a low of 484.5. The total volume traded so far comes to 10,425 with the daily average at 10,058. ...

This article Market Risers: Gresham House plc, 3i Group plc, Anglo American plc, Associated British Foods plc & Be Heard Group PLC was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
Stock in Gresham House plc ticker code: LON:GHE has increased 4.17% or 20 points during today’s session so far. Traders have stayed positive throughout the session. The high for the period has peaked at 500 and a low of 484.5. The total volume traded so far comes to 10,425 with the daily average at 10,058. The 52 week high for the shares is 515 around 35 points difference from the previous days close and the 52 week low at 404 which is a difference of 76 points. Gresham House plc has a 20 day moving average of 455.38 and the 50 day moving average at 449.62. The market cap now stands at £124.41m at the time of this report. The share price is in GBX. Mcap is measured in GBP. This article was written with the last trade for Gresham House plc being recorded at Monday, March 18, 2019 at 11:45:36 AM GMT with the stock price trading at 500 GBX.

 

The stock price for 3i Group plc EPIC code: LON:III has moved up 1.31% or 12.4 points throughout the session so far. Investors are a positive bunch throughout the session. The high for the period has reached 964 dropping as low as 951.4. Volume total for shares traded at this point reached 598,953 while the average shares exchanged is 1,820,487. The 52 week high is 1038 equating to 88.8 points in difference to the previous days close of business and a 52 week low sitting at 754.6 a difference of some 194.6 points. 3i Group plc now has a 20 SMA of 961.86 and also a 50 day simple moving average now of 904.53. Market capitalisation for the company is £9,356.32m at the time of this report. The stock is traded in GBX. Mcap is measured in GBP. This article was written with the last trade for 3i Group plc being recorded at Monday, March 18, 2019 at 12:02:17 PM GMT with the stock price trading at 961.6 GBX.

 

The trading price for Anglo American plc with company EPIC: LON:AAL has gained 1.78% or 34.6 points in today’s trading session so far. Buyers have so far held a positive outlook throughout the session. The period high has peaked at 1990 meanwhile the session low reached 1951.36. Volume total for shares traded at this point reached 911,786 with the average number of shares traded daily being 4,326,547. The stock 52 week high is 2078.5 which comes in at 139.5 points difference from the previous days close and the 52 week low at 1433.64 making a difference of 505.36 points. Anglo American plc now has a 20 SMA of 2023.49 and now a 50 day SMA of 1940.48. Market capitalisation for the company is £27,727.58m at the time of this report. The share price is in GBX. Mcap is measured in GBP. This article was written with the last trade for Anglo American plc being recorded at Monday, March 18, 2019 at 12:02:52 PM GMT with the stock price trading at 1973.6 GBX.

 

The stock price for Antofagasta plc EPIC code: LON:ANTO has climbed 1.54% or 14.2 points during the course of today’s session so far. Investors seem confident throughout the trading session. The high for the period has reached 944.4 and a low of 924.2. The volume total for shares traded up to this point was 386,341 with the daily average at 2,427,464. The 52 week high is 1171.5 about 247.9 points different to the previous business close and a 52 week low sitting at 713.2 a difference of some 210.4 points. Antofagasta plc now has a 20 SMA of 946.67 and the 50 day moving average at 891.79. This puts the market cap at £9,245.36m at the time of this report. The share price is in GBX. Mcap is measured in GBP. This article was written with the last trade for Antofagasta plc being recorded at Monday, March 18, 2019 at 12:02:52 PM GMT with the stock price trading at 937.8 GBX.

 

Shares of Associated British Foods plc EPIC code: LON:ABF has gained 1.01% or 23 points during today’s session so far. Buyers have so far held a positive outlook during the session. The period high has peaked at 2312 while the low for the session was 2273. The total volume traded so far comes to 136,216 whilst the average number of shares exchanged is 1,106,129. The 52 week high price for the shares is 2846 which is 558 points difference from the previous days close and the 52 week low at 2011 which is a variance of 277 points. Associated British Foods plc now has a 20 simple moving average of 2302.9 and now a 50 day MA at 2326.9. The market capitalisation is now £18,303.51m at the time of this report. The stock is traded in GBX. Mcap is measured in GBP. This article was written with the last trade for Associated British Foods plc being recorded at Monday, March 18, 2019 at 12:02:29 PM GMT with the stock price trading at 2311 GBX.

 

The stock price for Be Heard Group PLC ticker lookup code: LON:BHRD has climbed 9.52% or 0.1 points during today’s session so far. Market buyers seem confident during the session. Range high for the period so far is 1.15 dipping to 1.1. The volume total for shares traded up to this point was 582,656 whilst the average number of shares exchanged is 1,949,682. The 52 week high for the shares is 2.42 equating to 1.37 points difference from the previous close and the 52 week low at 0.91 which is a variance of 0.14 points. Be Heard Group PLC has a 20 SMA of 1.03 and now its 50 day moving average now of 1.11. The market capitalisation is now £11.97m at the time of this report. The share price is in Great British pence. Mcap is measured in GBP. This article was written with the last trade for Be Heard Group PLC being recorded at Monday, March 18, 2019 at 11:19:24 AM GMT with the stock price trading at 1.15 GBX.


Follow this article (for updates)

X

Follow this article (for updates)

E-mail : *

*
Your personal data will be used to support your experience throughout this website and for other purposes described in our Privacy Policy. I hereby agree and consent to the privacy policy.

This article Market Risers: Gresham House plc, 3i Group plc, Anglo American plc, Associated British Foods plc & Be Heard Group PLC was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
...
Gresham House plc Q&A with Chief Executive Officer Anthony Dalwood https://www.directorstalkinterviews.com/gresham-house-plc-qa-with-chief-executive-officer-anthony-dalwood/412769645 Thu, 14 Mar 2019 13:19:05 +0000 https://www.directorstalkinterviews.com/?p=769645 Gresham House plc (LON:GHE) Chief Executive Officer Anthony Dalwood caught up with DirectorsTalk for an exclusive interview to discuss growth, alternative asset management, having a strong balance sheet and paying dividends.   Q1: The group has grown substantially in 2018, can you describe for us where this growth has come from? A1: 2018 was a ...

This article Gresham House plc Q&A with Chief Executive Officer Anthony Dalwood was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
Gresham House plc (LON:GHE) Chief Executive Officer Anthony Dalwood caught up with DirectorsTalk for an exclusive interview to discuss growth, alternative asset management, having a strong balance sheet and paying dividends.

 

Q1: The group has grown substantially in 2018, can you describe for us where this growth has come from?

A1: 2018 was a superb year for Gresham House on many levels including organic growth and acquisition growth as well the development of the people side of things with some excellent talent, investment talent particularly, within the organisation.

In numbers wise, the total growth of the business was up in assets under management terms by 250% and within that we had growth organically of 30%.

Significant things to mention include forestry where we’re now very much the number one in the UK in terms of asset management with over £1 billion of assets under management in forestry, an increase of around £300 million on the previous year.

In addition to that we have renewables where significantly we developed a position in battery storage where we launched the sizable investment trust at the last year to build on our wind and solar positions within renewables.

The acquisition of Baronsmead led us to add to our Venture Capital Trust (VCT) products as well where, with Baronsmead, we have a significant brand within the private equity world of VCT.

So, all in all, a terrific year for the company and the team in it, significant growth organically and through acquisition as well as developing our existing five platforms that we have within alternative asset management.

 

Q2: What does the future growth profile of the business look like?

A2: We have quite defined plans across our five divisions; forestry, renewables, housing and infrastructure, private equity and public equity.

Following a very strong investment performance year for our equity funds and Strategic Public Equity company, we’ve got a plan to grow in those areas and we’ve got 2 open-ended vehicles under the lead Fund Manager Ken Wotton, the Micro Cap and the Multi Cap. In the Strategic Public Equity area, we had the number one small cap listed investment trust, or investment company, managed by Graham Bird and myself as well, investment performance there has led us to look to scale that business in the short term as well. So, they’re quite exciting plans that are defined.

In the other areas like forestry, there are potential organic growth opportunities, but we are beginning to also capture the opportunity of our 20/30 year investment performance and track record to look internationally to pick up growth overseas.

In addition to that, our renewables area of wind, the batteries and solar, we have plans there and new platforms there and finally, the British Strategic Investment fund, we’re hoping for a final close during the year, again with increased assets under management as we deploy more into interesting areas like vertical farming and waste recycling.

 

Q3: The market for alternative asset management is definitely growing, how do you expect the sector to continue to develop going forward and how might this affect GHE?

A3: The asset allocation to alternative has been immense over the last 15-20 years, if you go back 15 years or so pension funds in the UK, on average, have a circa 1% of their assets within the alternative space. If we fast forward, in the last year or so, that number is well above 20, around 22% on average of alternatives in terms of asset allocation. A considerable growth and there’s no suggestion that that is going to change in terms of the trajectory, demand for yield and income remains and we are well placed to benefit from that as asset allocation towards this area grows.

Frankly, we’re very pleased that we’re in a good space with the wind at our backs and it’s now an opportunity for us to just continue to capture that potential.

 

Q4: The company has a strong balance sheet, what does it mean for shareholders?

A4: The strong balance sheet is comforting for all sorts of ways from a shareholder perspective.

We have around £33 million in cash and realisable assets on our balance sheet which means a very strong balance sheet from us to grow our business both organically and through acquisitions going forward and again, supporting our investment teams and product development.

So, it provides options for capital allocation decisions and it also allows us to grow the business alongside our very strong shareholder relationships as well.

 

Q5: Finally, why did you decide on paying a dividend this time?

A5: The importance of income to shareholders is pretty well documented, we want to continue that and maintain a relevance that Gresham House is there for shareholders and aim to create shareholder value.

It also provides a very good discipline for the management team to focus on shareholder value and the generation of long-term cash profits.


Follow this article (for updates)

X

Follow this article (for updates)

E-mail : *

*
Your personal data will be used to support your experience throughout this website and for other purposes described in our Privacy Policy. I hereby agree and consent to the privacy policy.

This article Gresham House plc Q&A with Chief Executive Officer Anthony Dalwood was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
...
INTERVIEW: Why 2018 was a superb year for Gresham House on many levels https://www.directorstalkinterviews.com/interview-why-2018-was-a-superb-year-for-gresham-house-on-many-levels/412769269 Tue, 12 Mar 2019 07:22:13 +0000 https://www.directorstalkinterviews.com/?p=769269 Gresham House plc (LON:GHE) CEO Anthony Dalwood joins DirectorsTalk to discuss year end results for 2018. Tony explains where the growth has come from, what the future growth profile looks like, sector development going forward, what a strong balance sheet means for investors and why they decided on paying a dividend. Gresham House plc is ...

This article INTERVIEW: Why 2018 was a superb year for Gresham House on many levels was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
Gresham House plc (LON:GHE) CEO Anthony Dalwood joins DirectorsTalk to discuss year end results for 2018. Tony explains where the growth has come from, what the future growth profile looks like, sector development going forward, what a strong balance sheet means for investors and why they decided on paying a dividend.

Gresham House plc is an AIM quoted specialist asset manager providing funds, direct investments and tailored investment solutions, including co-investment across a range of highly differentiated alternative investment strategies. Our expertise includes timber, renewable energy, housing and infrastructure, strategic public and private equity (private assets). The group aims to deliver sustainable financial returns and is committed to building long-term partnerships with clients (institutions, family offices, high-net-worth individuals, charities and endowments and private individuals) to help them achieve their financial goals.

Shareholder value creation will be driven by long-term growth in earnings as a result of increasing AUM and returns from invested capital.


Follow this article (for updates)

X

Follow this article (for updates)

E-mail : *

*
Your personal data will be used to support your experience throughout this website and for other purposes described in our Privacy Policy. I hereby agree and consent to the privacy policy.

This article INTERVIEW: Why 2018 was a superb year for Gresham House on many levels was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
INTERVIEW: Why 2018 was a superb year for Gresham House on many levels Gresham House plc (LON:GHE) CEO Anthony Dalwood joins DirectorsTalk to discuss year end results for 2018. Tony explains where the growth has come from, GHE ...
Gresham House plc Reports transformational year https://www.directorstalkinterviews.com/gresham-house-plc-reports-transformational-year/412768838 Thu, 07 Mar 2019 07:28:47 +0000 https://www.directorstalkinterviews.com/?p=768838 Gresham House plc, (LON:GHE) the specialist alternative asset manager, has today reported a transformational year, more than trebling assets under management to £2.3 billion through organic and acquisitive growth, achieving profitability and significant margin improvement, whilst developing a high-quality pipeline of new opportunities and expanding its distribution capabilities. Highlights   2018 2017 Change (£m) (£m) ...

This article Gresham House plc Reports transformational year was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
Gresham House plc, (LON:GHE) the specialist alternative asset manager, has today reported a transformational year, more than trebling assets under management to £2.3 billion through organic and acquisitive growth, achieving profitability and significant margin improvement, whilst developing a high-quality pipeline of new opportunities and expanding its distribution capabilities.

Highlights

 

2018

2017

Change

(£m)

(£m)

(%)

Assets under management

2,268

649

250

Cash and liquid assets1

32.8

24.4

34

Total income

14.5

6.5

125

Operating loss

0.6

3.5

n/a

Adjusted operating profit2

3.0

-0.7

n/a

Dividend

3.0p

nil

n/a

 

1Cash and liquid assets includes cash and investments in tangible and realisable assets

2Adjusted operating profit is defined as the net trading profit of the Group before deducting amortisation, depreciation and exceptional items relating to acquisition and restructuring costs and after adding back income received from investment in associates.

* A strong year for growth in Assets Under Management (AUM) of 250%, including 30% organic growth, with AUM increasing to £2.3 billion (2017: £649 million)

* Adjusted operating profitability increased to £3.0 million (2017: £0.7 million loss)

* The acquisitions of FIM Services Limited (FIM) and the investment management business of Livingbridge VC LLP (Livingbridge VC) have been transformative and complement both financially and strategically our alternative asset management platform

* Annualised synergies of £700k from acquisitions have been identified and are in the process of being captured

* Balance sheet remains strong with £32.8 million of tangible and realisable assets (2017: £24.4 million) and gross cash of £14.0 million (2017: £9.8 million)

* Established group relationship with Santander, borrowing £10.0 million

* Maiden dividend of 3.0p proposed

* Future visibility for organic growth across all platforms identified

Commenting on the results, Tony Dalwood, Gresham House plc Chief Executive, said:

“We have continued to maintain momentum and make excellent progress in shareholder value creation whilst investing in the platform ahead of future growth, adding scale to the business and identifying synergies.

The opportunities in the alternatives sector offer high-quality long-term investment returns for clients, and Gresham House has quality fund management teams and award winning individuals to execute within those specialist markets. The 2019/2020 pipeline for further organic AUM growth is exciting.”

Chairman’s statement

As we begin the fifth year of our plan to build a market leading specialist asset management business, I am delighted to report another strong year of organic and acquisitive growth. The Group has deepened its reach into its chosen asset classes, and simultaneously further increased its alternative asset management product platforms to create a high-quality alternative investment manager, which will continue to scale in terms of Assets Under Management (AUM).

Activity in the period
Alongside the completion of two significant transactions in 2018, the Group has continued to focus on prudent financial management and sustainable long-term growth, working to identify and develop new investment opportunities for clients. As a result, 2018 has been an excellent year for shareholder value creation whether measured by AUM, up 250% to £2.3 billion (2017: £649 million), or profitability, up to an adjusted operating profit of £3.0 million (2017: £0.7 million loss), including organic growth of 30% in AUM. It was also pleasing to see the Company’s market capitalisation surpass £100 million during the year, an important milestone as our offering gains increasing relevance to a wider range of investors.

In May we announced the transformative acquisition of FIM Services Limited, (FIM) making the Group the leading commercial forestry asset manager in the UK with almost £1.0 billion of Forestry AUM. The integration plan to combine the FIM and Gresham House Forestry teams has now been largely completed. Following this, in November we acquired the fund and investment management businesses of Livingbridge VC LLP (Livingbridge VC), increasing AUM by a further £0.5 billion and adding the two Baronsmead VCTs to our range along with two open-ended vehicles with strong track records. Both acquisitions met stringent financial criteria, introduced complementary new expertise to the business, expanded our client offering and broadened our shareholder base.

Before the end of the year, the Group successfully listed the UK’s largest battery storage fund on the London Stock Exchange, called Gresham House Energy Storage Fund plc (GRID). The IPO raised £100 million, with £57.2 million immediately deployed in a seed portfolio managed by the Group’s New Energy asset management division.

Beyond these exciting developments across the Group’s investment strategies, it was also very pleasing to see top decile performance from the Strategic Public Equity team via Gresham House Strategic plc (GHS); and a substantial deployment of committed capital by the British Strategic Investment Fund (BSIF) in a variety of UK infrastructure and housing opportunities.

As part of our continued growth and development we realised the need to refine our Group broking and advisory relationships. Consequently, we were delighted to appoint Canaccord Genuity and Jefferies International after a thorough selection process.

Notwithstanding the significant developments during the year, it is important to recognise that our experienced and capable management team has ambitious plans for the business to continue building a sustainable ‘asset to covet’ – something that employees, shareholders and clients can be proud of.

Results
The activity in the year and growth in AUM has driven income to increase by 125% to £14.5 million (2017: £6.5 million). The AUM growth has not purely been from acquisition, with the team also focusing on delivering organic growth of 30% in AUM including the successful IPO of GRID, additional fundraisings in forestry and renewables plus good investment performances across other vehicles managed by the Group.

Profitability has also benefited as a result of scale and growth, with an adjusted operating profit of £3.0 million being delivered in the year (2017: £0.7 million loss), along with adjusted diluted EPS of 14.7 pence (2017: (5.9) pence). Total comprehensive net income improved to a loss of £0.6 million (2017: £3.5 million loss). The management team continues to operate a cost-focused model, while recognising the need to invest in the critical areas of the business, such as distribution and a high-quality investment team.

Dividend

I indicated in the 2018 interim results, that the Board has considered the Company’s long-term dividend policy as an important part of the Company’s development. We are therefore particularly delighted to announce the intention to pay a maiden dividend of 3.0 pence.

Shareholders
The broadening of our shareholder base is further testament to the executive management team’s strategy, vision, communication and execution to date. In addition to new institutional shareholders, we have welcomed other significant long-term shareholders, including FIM’s Richard Crosbie Dawson and Colin Lees Millais and the Livingbridge partners who joined as part of the Livingbridge VC acquisition. I would also like to thank our existing shareholder base, who have loyally continued to support the growth of the Company in the year and have proved to be valuable long-term investors in the Company.

Board
As noted at the time of our interim results, growth companies must have access to the right expertise and experience at Board level in order to provide the necessary governance, capability and support to management teams. The addition of Rachel Beagles to the Board in March 2018 has, together with Simon Stilwell in December 2017, proved invaluable in this regard and they have become highly valued colleagues.

Outlook
We have started 2019 positively with successful fundraising efforts for both the Baronsmead VCTs, which closed within two weeks raising £25 million of new capacity, alongside a number of other fundraising initiatives which have progressed in the early part of the year.

The macro environment’s ten year ‘bull’ cycle is showing clear signs of slowing, with concerns around corporate margins and high valuations, as noted by our management team in recent years. The Group’s balance sheet has been managed accordingly and we enter 2019 in a strong position with the support of a new banking relationship with Santander. The continued uncertainties around Brexit do little to help, but with a predominantly UK-faced business we remain cautiously optimistic.

The increasing allocation to alternatives by long-term investors bodes well for the future and it is important that such an investment approach looks through short-term issues. This executive management team has proven its ability to source and execute value enhancing acquisitions in areas of relevance to the Gresham House strategy within alternative asset management alongside organic growth. Additional shareholder value is then created through clear integration and growth plans. We continue to further develop an exciting pipeline of opportunities to grow organically and significantly scale the Group, which gives us real confidence in its long-term prospects and shareholder value creation potential.

Anthony Townsend

Chairman

6 March 2019

Chief Executive’s report

2018 marked a transformational fourth year for the Group under this management team. Through organic growth and complementary acquisitions, Gresham House is a specialist alternative asset manager with breadth and depth, alongside high-quality investment professionals. This has resulted in a business across four office locations, 74 people with £2.3 billion AUM and with KPIs moving in an attractive direction. Commensurately, our sales and distribution capability has been enhanced to help us make the most of the opportunities before us. Underpinning all of this is a disciplined approach to return on capital employed, management and operations – bringing us closer to our profitability and operating margin targets, and hence our shareholder value creation objectives. This is now a scalable platform for long-term growth.

Growing shareholder value
At the heart of our strategy for the Group is the creation of shareholder value with the aim of making Gresham House an ‘asset to covet’. As the scale of the business has increased over the last year, Assets Under Management, (AUM) have reached £2.3 billion. We have nonetheless maintained our focus on operational efficiency through integration, and optimising resources to serve the business we have whilst supporting the next stage of the Group’s growth. It is therefore pleasing to have generated 30% organic growth in AUM in 2018, alongside the value from integrating the forestry and private equity acquisitions.

Disciplined approach

Our ability to achieve sustainable long-term growth focuses on a highly disciplined approach to managing risk and controls within the business. Gresham House’s Investment Committee challenges capital allocation decisions for the Group’s balance sheet for recommendation to the Board. With acquisitions, for example, we only deploy capital where there is a clear path to a 15% Return on Invested Capital (ROIC) over the medium-term and hence we believe in placing a significant focus on valuation and due diligence when appraising an acquisition. To date, it is pleasing to report that historic organic and acquisition investments are meeting this target, supporting our objective of generating high-quality recurring income streams for the Group from a diversified range of alternative investments. The long-term nature of a substantial proportion of our management contracts is significant.

Organic growth

Providing excellent service, including investment performance and communication, is central to maintaining the engagement of our clients. Underpinning traditional channels of client communications, our upgraded online client portal completed its first full year of operation. Through this mechanism, clients are able to see the full range of new investment opportunities we offer. Taken together with our co-investment platform, our improved fundraising capabilities mean that we can move quickly to support a range of exciting opportunities that expand AUM across the Group’s investment strategies, particularly in our top-performing Strategic Public Equity activities, notably Gresham House Strategic plc (GHS), and the LF Gresham House UK Micro Cap and LF Gresham House UK Multi Cap Income unit trust funds.

The Group’s organic growth in 2018 was headlined by the New Energy team’s listing and launch of the UK’s largest battery storage investment fund, called Gresham House Energy Storage Fund, (GRID). It aims to provide investors with an attractive and sustainable dividend by investing in a portfolio of utility-scale Energy Storage Systems (ESS) located in Great Britain, which use battery technology to import and export power, accessing multiple revenue sources within the power market.

Across the Group’s other investment strategies, we have a range of organic growth opportunities as new and existing investors from both public and private sectors look to deploy capital with us. The British Strategic Investment Fund, (BSIF), continues to attract interest as it deploys capital, including from public sector pension schemes seeking to invest in sub-£50 million UK housing and infrastructure opportunities, and is targeting a final close later in 2019.

The FIM Sustainable Timber and Energy LP had a further close at the end of January 2019 at £35 million having raised an additional £6.0 million post year-end, and we are also delighted that in the same month fundraising for the two Baronsmead VCTs, which came over as part of the Livingbridge VC acquisition, was fully subscribed within ten days of opening. Each of these serves to emphasise and evidence the Group’s future organic growth potential.

Acquisition, integration and optimisation

During the year we completed two significant acquisitions, FIM Services Limited (FIM) and the fund and investment management business of Livingbridge VC LLP (Livingbridge VC).

FIM significantly developed the Group’s AUM within the real assets sector, increasing it by circa £1.0 billion, expanding fee income, adding a strong team and bringing a complementary investor base into the Group and widening its distribution capabilities for new product launches. As a result of the transaction, the Group is now the market-leading forestry asset manager in the UK with enhanced expertise in renewables asset management.

Livingbridge VC added £0.5 billion to the Group’s AUM, comprising quoted and unquoted equities via the two Baronsmead VCTs and two top-performing open-ended investment companies (OEICs), LF Livingbridge (now LF Gresham House) UK Micro Cap Fund and LF Livingbridge (now LF Gresham House) UK Multi Cap Income Fund.

In both cases these additions to the Group met our acquisition criteria on expected ROIC, scope for operational cost savings and business development. Additionally, both brought strong investment management teams that share Gresham House’s ethos and culture, meaning that their integration into the Group has been swift and we have made excellent progress achieving identified earnings-enhancing synergies.

Strategic Equity

Gresham House Strategic plc (GHS) celebrated its third anniversary under Gresham House management in the year. NAV per share growth from inception to 31 December 2018 was 24.5%, growing 11.2% ahead of its benchmark. GHS was also the top-performing fund in its segment in the year. We continued to review opportunities to scale GHS and promote this top-performing fund on a larger platform.

Strategic Public Equity LP (SPE LP) performed strongly in the year and was significantly ahead of its target returns, returning cash to investors following the partial sale of IMI Mobile at an attractive price, which has accelerated the discussions for the next fund launch. With SPE LP reporting a 1.4x money multiple to the end of 2018, Gresham House has continued to build on the team’s successful 15-year track record. Planning for SPE Fund IV is now well developed in order to allow a scalable version of this differentiated quoted equity strategy.

The addition of the two OEICs and the two Baronsmead VCTs with the Livingbridge VC acquisition has enhanced the offering that Gresham House has in this specialist area of investment.

The Baronsmead VCTs offer a high-quality and successful investment track record to investors and will continue to be managed by the same team to maintain this important brand. We are very pleased to welcome the Baronsmead VCTs under Gresham House management and look forward to investing further in the team and its resources to benefit investors. The strength of the Baronsmead VCTs has already been demonstrated in January, with the top up fundraise of £25 million completing within ten days.

The LF Gresham House UK Micro Cap Fund is top quartile performing under the leadership of Ken Wotton over one, three and five-year periods and alongside the LF Gresham House UK Multi Cap Income Fund brings new open-ended vehicle capacity into Gresham House. These vehicles have capacity to substantially scale on the back of strong investment performance. Importantly, the UK Micro Cap Fund has top decile performance over five years versus peers.

The private equity opportunity has significantly increased following the Livingbridge VC transaction. Gresham House has now added to its private equity capability with a strong team and track record. The opportunity for LMS Capital plc (LMS) to benefit from this strong private equity combined investment team is clear. Having positioned LMS successfully under Gresham House management, a number of opportunities for its future direction and scale are apparent.

Real Assets

The forestry division has grown well in the year, with organic growth in AUM of circa £120 million in 2018. This is the result of the long-term sustainable growth in the value of the underlying forest portfolio, clear focus on the acquisition of forests for clients and targeted fundraising in our existing long-term LP structures.

The integration of the Gresham House Forestry and FIM operations has enabled us to combine two highly skilled teams for the benefit of clients and shareholders alike. The combined team continues to provide a high-quality service to existing clients and also has the ability to grow the forestry business in the UK as well as review international opportunities. I am very pleased that Olly Hughes has recently joined us as the Managing Director of Forestry from Oxford Capital after the period end. Under his stewardship of the division we are expecting to see this area of the business develop further.

The New Energy division remains an area of huge potential for Gresham House. Our existing product offering includes the Hazel Renewable Energy VCTs (to be renamed Gresham House Renewable Energy VCTs) and the newly launched Gresham House Energy Storage Fund plc (GRID). These are exciting and scalable products which emphasise the potential opportunity from operating in sustainable areas of the renewable energy market. We have also supported the development of battery storage projects that are part of the pipeline for GRID, which we expect to be operational in 2019 and will lead to GRID seeking to issue additional shares supported by demand for this income-yielding investment. The scale of the opportunity for utility-scale batteries in the UK is considerable and bodes well for increasing AUM in this sector.

Infrastructure and housing in the sub £50 million enterprise value space remains attractive and have the potential for considerable investment. BSIF has worked hard with its initial capital and was circa 50% invested at the end of 2018. The opportunities to form long-term partnerships through relationships with local government pension schemes (LGPS) are considerable and long-term growth is very positive. With Brexit impacting inward UK investment, the opportunity exists for LGPS to invest in assets and platforms of strategic interest locally, regionally and nationally, such as vertical farming and affordable housing. We are aiming to have a final close for BSIF in 2019 and based on the current rate of investment, we expect to be raising a new fund for this strategy within the next year.

Team
At the heart of our business is a talented, driven team of management and investment professionals who have established a strong culture of excellence. I was therefore delighted that we were named Best Alternative Investment Manager at the 2018 European Wealth Briefing Awards. Such external recognition demonstrated to everyone working in the business that we are building something special and that their efforts are being recognised in the wider market.

With our recent acquisitions, the Group’s headcount has grown, and we have used the momentum gained during the year to enhance our distribution and sales capabilities alongside revenue growth, in addition to building our investment teams to deploy capital for investors in an efficient and profitable manner.

As noted at the time of the interim results, Heather Fleming’s arrival as Head of Institutional Business brings considerable experience and expertise to our fundraising strategy. Her growing team forms a critical element of our fundraising and distribution power as we focus on organically expanding the Group’s investment product portfolio.

I am also delighted to welcome the Livingbridge VC team who joined Gresham House at the end of the year, including high-quality investment managers Ken Wotton, Steve Cordiner and Bevan Duncan. Like the FIM team, their integration into the business will help us to develop exciting new investment opportunities for current and new clients, as well as enhancing the Gresham House brand.

We could not implement our ambitious strategy for the Group without the dedication, energy and expertise of everyone working in the business. I, and the rest of the management team, thank everyone that is part of the Gresham House ‘family’ for their hard work as we continue to grow the business and achieve our shareholder value objectives.

Outlook
The achievements of 2018 are substantial. Our disciplined approach to managing the business means that we benefit from synergy potential and are well-positioned to take advantage of the growing proportion of asset allocations to alternatives. The combination of sustainable fund management income and performance fees creates a solid foundation upon which to develop new opportunities and co-investments that will increase the Group’s scale and its relevance to a wider constituency of investors based on top quality investment talent.

The management team are focused on key areas to generate further shareholder value including organic growth in areas of competitive advantage (like forestry and new energy) whilst generating attractive returns on balance sheet capital and targeting 40-plus margins as we scale AUM.

Setting aside our conviction in the assets where we deploy capital, we also stand to benefit from the increased focus investors place on environmental, social and governance (ESG) criteria as the Group offers investors superior performance within an ESG-compliant framework, alongside sustainable real asset sectors including forestry, renewables and critical UK strategic infrastructure.

We will continue to be selective in our acquisition strategy, focusing on the most effective way to create value for shareholders, however the clear emphasis for 2019 is on organically increasing AUM. The opportunity to increase each of the five investment units to a multiple of their current size and the operational gearing upon the existing Gresham House platform should drive margins toward the 40% target, even before the benefits of performance fees.

The geopolitical outlook for the UK and Europe has remained challenging, creating uncertainty in markets and necessitating a pragmatic approach to risk and compliance management. Analysis of valuations and return on capital employed remain a concern. That said, the current macroeconomic environment also creates dislocations and opportunities for us as we seek to deliver the kind of high-quality, long-term sustainable income offered by alternative assets. The increasing focus on income yield, inflation linkage and sustainable asset investment should support long-term AUM growth and consequently Gresham House shareholder value despite market and valuation concerns.

Gresham House has repeatedly demonstrated that it offers innovative opportunities for public and private investor clients. Taken together with the added attractions of our partnership approach to investor relationships, the Gresham House platform and brand is growing. The value generated by a dynamic and capable team is now clearly showing through in shareholder value creation. We look to the future with confidence and optimism.

Tony Dalwood

Chief Executive

6 March 2019


Follow this article (for updates)

X

Follow this article (for updates)

E-mail : *

*
Your personal data will be used to support your experience throughout this website and for other purposes described in our Privacy Policy. I hereby agree and consent to the privacy policy.

This article Gresham House plc Reports transformational year was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
...
Hardman & Co Investor Forum 26th February 2019 https://www.directorstalkinterviews.com/hardman-co-investor-forum-26th-february-2019/412768586 Tue, 05 Mar 2019 09:58:58 +0000 https://www.directorstalkinterviews.com/?p=768586 Last week we were delighted to host our 15th Investor Forum at the offices of DAC Beachcroft. We welcomed 4 interesting companies to present to an audience of 60 sophisticated investors. The audience had the opportunity to learn more about investing in clean energy, a dividend paying gold miner, and two distinct health care companies ...

This article Hardman & Co Investor Forum 26th February 2019 was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
Last week we were delighted to host our 15th Investor Forum at the offices of DAC Beachcroft. We welcomed 4 interesting companies to present to an audience of 60 sophisticated investors. The audience had the opportunity to learn more about investing in clean energy, a dividend paying gold miner, and two distinct health care companies at different commercial stages.


Follow this article (for updates)

X

Follow this article (for updates)

E-mail : *

*
Your personal data will be used to support your experience throughout this website and for other purposes described in our Privacy Policy. I hereby agree and consent to the privacy policy.

This article Hardman & Co Investor Forum 26th February 2019 was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
Hardman & Co Investor Forum 26th February 2019 Last week we were delighted to host our 15th Investor Forum at the offices of DAC Beachcroft. We welcomed 4 interesting companies to present to an AAZ,GHE,STX ...
Gresham House plc Focus for 2019 and the opportunities underlying its investment strategies https://www.directorstalkinterviews.com/gresham-house-plc-focus-for-2019-and-the-opportunities-underlying-its-investment-strategies/412765264 Wed, 23 Jan 2019 11:55:33 +0000 https://www.directorstalkinterviews.com/?p=765264 Gresham House plc (LON:GHE) CEO Tony Dalwood, discusses the busy and successful past year, his focus for 2019 and the opportunities within each of the five underlying investment strategies. Gresham House plc is an AIM quoted specialist alternative asset manager providing funds, direct investments and tailored investment solutions, including co-investment across a range of highly ...

This article Gresham House plc Focus for 2019 and the opportunities underlying its investment strategies was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
Gresham House plc (LON:GHE) CEO Tony Dalwood, discusses the busy and successful past year, his focus for 2019 and the opportunities within each of the five underlying investment strategies.

Gresham House plc is an AIM quoted specialist alternative asset manager providing funds, direct investments and tailored investment solutions, including co-investment across a range of highly differentiated alternative investment strategies.

Our expertise includes strategic public equity, private equity (private assets), forestry, new energy, housing and infrastructure.

The Group aims to deliver sustainable financial returns and is committed to building long-term partnerships with clients, (institutions, family offices, high-net-worth individuals, charities and endowments and private individuals) to help them achieve their financial goals.

Shareholder value creation will be driven by long-term growth in earnings as a result of increasing AUM and returns from invested capital.


Follow this article (for updates)

X

Follow this article (for updates)

E-mail : *

*
Your personal data will be used to support your experience throughout this website and for other purposes described in our Privacy Policy. I hereby agree and consent to the privacy policy.

This article Gresham House plc Focus for 2019 and the opportunities underlying its investment strategies was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
Gresham House plc Focus for 2019 and the opportunities underlying its investment strategies Gresham House plc (LON:GHE) CEO Tony Dalwood, discusses the busy and successful past year, his focus for 2019 and the opportunities within each of the GHE ...
Gresham House plc Q&A: Acquisition of Livingbridge VC (LON:GHE) https://www.directorstalkinterviews.com/gresham-house-plc-qa-acquisition-of-livingbridge-vc-longhe/412761950 Fri, 23 Nov 2018 10:32:26 +0000 https://www.directorstalkinterviews.com/?p=761950 Gresham House plc (LON:GHE) Chief Executive Officer Anthony Dalwood caught up with DirectorsTalk for an exclusive interview to discuss the acquisition of Livingbridge VC and what this means for them and their shareholders and their focus going forward.   Q1: Gresham House is on a growth trajectory with the recent acquisition of the fund and ...

This article Gresham House plc Q&A: Acquisition of Livingbridge VC (LON:GHE) was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
Gresham House plc (LON:GHE) Chief Executive Officer Anthony Dalwood caught up with DirectorsTalk for an exclusive interview to discuss the acquisition of Livingbridge VC and what this means for them and their shareholders and their focus going forward.

 

Q1: Gresham House is on a growth trajectory with the recent acquisition of the fund and investment management businesses of Livingbridge VC, namely the two Baronsmead VCT’s and two OEIC’s with a collective AUM of £0.5 million. Could you give us an overview of the deal?

A1: We’re very excited here at Gresham House about this transaction.

Baronsmead is a very well-known brand particularly for the long-term in the VCT community and particularly, we look forward to working with the Board’s of the VCT’s and the transferring team maintaining their high standards. They have a very longstanding track record in this space and are very well-known.

In addition to these VCT’s, we also have acquired a couple of funds managed by Ken Wotton, Graeme Bencke and Brendan Gulston, Livingbridge equity funds. Those OEIC’s are things which we are very excited about putting our expertise behind and growing them. They also have some good track record in their Livingbridge UK Micro Cap Fund and the more recent Livingbridge UK Multi Cap Income Fund.

So, we’re excited about that, to get behind and support them and grow all of those products.

 

Q2: So, who is Livingbridge and why are they such a good fit for Gresham House?

A2: Livingbridge is a very successful private equity business and within it they have a unit that manages these two VCT’s and the equity funds we’ve mentioned. Baronsmead was founded in 1995, they’ve been exceptionally good performers over a very long term and we’re just proud to be chosen, privileged to be chosen, to be able to take them on to the next stage of their growth.

 

Q3: Can you talk us through what this deal means for GHE and its shareholders and clients?

A3: It’s always the primary factor that we enter in for any potential transaction, Gresham House is growing organically but also through acquisition. This acquisition allows us to expand our Strategic Equity division to over £600 million in assets under management, the Gresham House group now has over £2 billion of assets under management.

The important bit is focussing on shareholder value and the earnings enhancement potential from this for GHE is significant, it will help us accelerate our operating margins towards our target of 40%. Importantly, when we deploy our capital, we can consistently go through an analysis which aims to achieve a threshold return of at least 15% and we believe this will do that over a medium term as well.

In addition to that, we have strategic opportunities, our project range is expanded and deepened, and we have significant synergy opportunities. I suppose, importantly also that the team that’s coming across from Livingbridge and Baronsmead have a very similar culture in investment philosophy.

So, all in all, both strategically and financial, we’re excited and very positive about this transaction.

 

Q4: Now, this is Gresham House’s second acquisition this year, what is your focus in the near term and the long-term and how does this play to your vision?

A4: We always intend growing organically and through acquisition and there are synergies here and are almost in everything we do so this transaction is consistent with that.

We aim to be a business which is focussed on alternative asset management, we want shareholders, employees and clients to be proud of being a part of the GHE family.

All in all, this contributes, in our opinion, to all of those factors and we remain continuing the momentum of growth and shareholder value within the company.


Follow this article (for updates)

X

Follow this article (for updates)

E-mail : *

*
Your personal data will be used to support your experience throughout this website and for other purposes described in our Privacy Policy. I hereby agree and consent to the privacy policy.

This article Gresham House plc Q&A: Acquisition of Livingbridge VC (LON:GHE) was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
...
INTERVIEW: Gresham House Plc Increases group AUM to over £2bn https://www.directorstalkinterviews.com/interview-gresham-house-plc-increases-group-aum-to-over-2bn/412761774 Tue, 20 Nov 2018 14:38:21 +0000 https://www.directorstalkinterviews.com/?p=761774 Gresham House Plc (LON: GHE) the specialist alternative asset manager, announced the acquisition of the fund and investment management businesses of Livingbridge VC LLP. Tony Dalwood, CEO of Gresham House joins Directors talk to discuss the recent acquisition. Tony provides an overview of the deal, why Livingbridge is a good fit for Gresham, what the ...

This article INTERVIEW: Gresham House Plc Increases group AUM to over £2bn was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
Gresham House Plc (LON: GHE) the specialist alternative asset manager, announced the acquisition of the fund and investment management businesses of Livingbridge VC LLP. Tony Dalwood, CEO of Gresham House joins Directors talk to discuss the recent acquisition. Tony provides an overview of the deal, why Livingbridge is a good fit for Gresham, what the deal means for its shareholder and clients. He goes on to talk about what their focus is in the near term and long term and how this plays to his vision.

Gresham House plc is an AIM quoted specialist asset manager providing funds, direct investments and tailored investment solutions, including co-investment across a range of highly differentiated alternative investment strategies. Our expertise includes strategic public and private equity (private assets), forestry, renewable energy, housing and infrastructure, The Group aims to deliver sustainable financial returns and is committed to building long-term partnerships with clients, (institutions, family offices, high-net-worth individuals, charities and endowments and private individuals) to help them achieve their financial goals.

Shareholder value creation will be driven by long-term growth in earnings as a result of increasing AUM and returns from invested capital.


Follow this article (for updates)

X

Follow this article (for updates)

E-mail : *

*
Your personal data will be used to support your experience throughout this website and for other purposes described in our Privacy Policy. I hereby agree and consent to the privacy policy.

This article INTERVIEW: Gresham House Plc Increases group AUM to over £2bn was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
INTERVIEW: Gresham House Plc Increases group AUM to over £2bn Gresham House Plc (LON: GHE) the specialist alternative asset manager, announced the acquisition of the fund and investment management businesses of GHE ...
Gresham House plc Successful £100m launch of the Gresham House Energy Storage Fund Plc https://www.directorstalkinterviews.com/gresham-house-plc-successful-100m-launch-of-the-gresham-house-energy-storage-fund-plc/412761127 Fri, 09 Nov 2018 13:12:05 +0000 https://www.directorstalkinterviews.com/?p=761127 Gresham House plc (LON: GHE) today announced the successful Gresham House Energy Storage Fund Plc issue. The Fund will be managed by the New Energy division of Gresham House Asset Management, the specialist renewable and storage asset manager. The net proceeds will be used by the Fund to acquire a Seed Portfolio for a consideration ...

This article Gresham House plc Successful £100m launch of the Gresham House Energy Storage Fund Plc was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
Gresham House plc (LON: GHE) today announced the successful Gresham House Energy Storage Fund Plc issue.

The Fund will be managed by the New Energy division of Gresham House Asset Management, the specialist renewable and storage asset manager.

The net proceeds will be used by the Fund to acquire a Seed Portfolio for a consideration of £57.22 million* immediately following Admission and will subsequently be available to invest in an exclusive pipeline of utility-scale Energy Storage Systems (ESS) in Great Britain.

These assets provide services to the National Grid to support grid stability as well as delivering the essential infrastructure required to enable Great Britain’s increasing reliance on intermittent sources of renewable energy such as wind and solar.

The Supplementary Prospectus for Gresham House Energy Storage Fund Plc is available on the Company’s website: newenergy.greshamhouse.com/esfplc.

Tony Dalwood, Chief Executive Officer of Gresham House, said: “We are pleased to have raised £100m against a backdrop of volatile markets. Gresham House Energy Storage Fund Plc provides our clients with access to a new and innovative, fast-growing sector and is highly complementary to solar and wind investments. We now have a strong platform from which to grow a substantial “institutional scale” fund.”


Follow this article (for updates)

X

Follow this article (for updates)

E-mail : *

*
Your personal data will be used to support your experience throughout this website and for other purposes described in our Privacy Policy. I hereby agree and consent to the privacy policy.

This article Gresham House plc Successful £100m launch of the Gresham House Energy Storage Fund Plc was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
...
Gresham House Plc Acquire Livingbridge VC Fund Management Business https://www.directorstalkinterviews.com/gresham-house-plc-acquire-livingbridge-vc-fund-management-business/412761087 Fri, 09 Nov 2018 10:23:08 +0000 https://www.directorstalkinterviews.com/?p=761087 Gresham House, (LON: GHE) the specialist alternative asset manager, announced the acquisition of the fund and investment management businesses of Livingbridge VC LLP, for an initial consideration of £30.0 million, increasing up to £40.0 million dependent on the achievement of certain targets. Key Highlights Strategic rationale: UK equities asset manager with a strong brand and ...

This article Gresham House Plc Acquire Livingbridge VC Fund Management Business was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
Gresham House, (LON: GHE) the specialist alternative asset manager, announced the acquisition of the fund and investment management businesses of Livingbridge VC LLP, for an initial consideration of £30.0 million, increasing up to £40.0 million dependent on the achievement of certain targets.

Key Highlights

Strategic rationale:

UK equities asset manager with a strong brand and track record

Product development – creates platform for accelerated organic growth

Significant increases in investment capability with consistent investment philosophies (public and private equity combination)

Diversifying and expanding the client base including platforms and wealth manager distribution channel

Additions to existing VCT products and Strategic Equity division

Increases group AUM to over £2bn, and profitability enhancement

Materially earnings enhancing plus additional cost synergies allows acceleration toward operating margin targets

Identified cost synergies and opportunity for cross fertilisation between investor bases

The acquisition will include the Baronsmead VCT products alongside two open-ended vehicles, LF Livingbridge UK Micro Cap Fund and LF Livingbridge UK Multi Cap Income Fund

The Acquisition combines two UK focussed asset managers with aligned investment philosophies, and enhances the investment expertise and depth in Gresham House’s existing Strategic Equity team. Upon completion, Gresham House’s assets under management (“AUM”) will be over £2 billion.

The Acquisition will be funded through the allotment of 1,562,500 ordinary shares of £0.25 each in the Company (the “Consideration Shares”), to Livingbridge VC, a new credit facility, a vendor placing of 2,617,628 ordinary shares of £0.25 each (“Placing Shares”) (the “Placing”) and existing cash resources of the Company. The Placing Price of 448 pence per Placing Share is at the middle market price of 448 pence per Ordinary Share on 7 November 2018 (being the last business day prior to the release of this announcement).

Subject to the acquired business achieving certain performance targets over approximately a three-year period, further consideration of up to £10.0 million will be payable, comprised of cash and Ordinary Shares. The Company expects the Acquisition to exceed its medium-term ROIC target of 15%.

The Acquisition will increase the Group’s momentum towards its 40 per cent. operating margin target. The Group has identified a number of cost synergies in the business and will also benefit from greater investment management and distribution capacity following completion of the transaction.

The Placing has raised approximately £11.7 million. Canaccord Genuity Limited (“Canaccord”) is acting as financial adviser, nominated adviser, joint broker and bookrunner in relation to the Placing. Jefferies International Limited (“Jefferies”) is acting as joint broker and bookrunner in relation to the Placing. The Placing is not being underwritten.

Completion of the Placing is conditional on, inter alia, completion of the Acquisition and Admission of the Placing Shares

Livingbridge VC

The fund and investment management business of Livingbridge VC has built a strong investment track record, serving a client base including private individuals, wealth managers, IFAs and institutions. It manages approximately £0.5 billion of quoted and unquoted equities via the Baronsmead venture capital trusts, (“VCTs”) and two open-ended investment companies (“OEICs”), LF Livingbridge UK Micro Cap Fund and LF Livingbridge UK Multi Cap Income Fund.

The approach to investing is similar to that of the Group’s Strategic Equity unit, targeting superior returns through investment into UK smaller public and private companies over a longer-term investment horizon.

All 16 employees at the fund management businesses of Livingbridge VC, comprising 8 specialist investment and research professionals alongside 8 distribution, finance and operational staff, will join the Company’s Strategic Equity operations and the funds will add to the Group’s product stable. The gross assets being acquired as part of the transaction by the Company are valued at £1. The Directors believe that the Company will maintain and, enhance the service provision offered to existing clients, through increased network, further investment, support of the team and increased resources. The three-year transition process has been designed to ensure a smooth integration.

The combined Baronsmead and Equity Funds business generated unaudited EBITDA and profit before tax of £5.0 million, (ex-performance fees) on revenues of £9.1 million in the year ended 31 December 2017. In the five years to 2017, the combined business achieved an 8.0 per cent CAGR in assets under management (“AUM”), which is expected to accelerate with the growth of its OEICs.

Commenting on the Acquisition, Anthony Dalwood, Gresham House’s chief executive, said:

“The Livingbridge VC fund management business’ investment philosophy across public and private equity companies has generated strong performance and has clear financial and strategic benefits for long-term Gresham House shareholder value. The excellent team will add to our existing high-quality investment and client personnel, enabling additional growth opportunities for the Group. We look forward to supporting the Baronsmead VCT and Equity Funds brands, which are well respected in their markets, alongside their strong investment track record.

“The acquisition is an extension of Gresham House’s organic strategy, aligning investment goals of the two teams. Additionally, we expect the deal to be immediately earnings enhancing, taking the Group’s AUM past £2 billion, increasing our scale and relevance to investors and creating additional shareholder value. We’re very much looking forward to welcoming the Livingbridge VC fund management team to Gresham House with whom we have a close cultural fit.”

Further details of the Acquisition

The Company has agreed to acquire, through its subsidiary Gresham House Asset Management Limited and subject to the satisfaction of certain conditions, the fund and investment management business of Livingbridge VC for a total initial consideration of £30.0 million, which may rise to £40.0 million subject to trading performance of the acquired assets over the three period following completion of the Acquisition.

The Acquisition will be funded through the allotment of 1,562,500 ordinary shares of £0.25 each in the Company (the “Consideration Shares”) to Livingbridge VC, a new credit facility, a vendor placing of 2,617,628 ordinary shares of £0.25 each (“Placing Shares”) (the “Placing”) and the existing cash resources of the Company. The Placing Price of 448 pence per Placing Share is at the middle market price of 448 pence per Ordinary Share on 7 November 2018 (being the last business day prior to the release of this announcement).

Completion of the Acquisition is expected to occur on or around 30 November 2018. Completion of the Acquisition is not conditional on completion of the Placing and in the event that the Placing does not complete, the cash payable to Livingbridge VC that would have been funded by the proceeds of the Vendor Placing will be satisfied by the Company using its existing cash resources and Livingbridge VC will sell the Placing Shares to the Company’s employee benefit trust for nil consideration.

Trading Update

The Directors are pleased to confirm the Company is currently trading in line with market expectations.

Details of the Placing

The Company and Livingbridge VC today entered into a vendor placing agreement with the Banks (“the Vendor Placing Agreement”). Pursuant to the Vendor Placing Agreement, the Banks have secured purchasers of the Placing Shares at the Placing Price and accordingly have raised approximately £11.7 million.

In addition, the Company today entered into an arrangement agreement with the Banks (the “Arrangement Agreement”) pursuant to which the Banks agreed to arrange the Vendor Placing in order to facilitate the Acquisition. The Company has given warranties and indemnities customary on a placing in favour of the Banks in the Arrangement Agreement.

Your attention is drawn to the detailed terms and conditions of the Placing set out in the Appendix to this Announcement (which forms part of this Announcement).

The Appendix to this Announcement contains the detailed terms and conditions of the Placing and the basis on which investors agreed to participate in the Placing . The Placing has not been underwritten by the Banks. Placees are deemed to have read and understood this Announcement in its entirety, including the Appendix, and to have made their offer on the terms and subject to the conditions contained herein and to have given the representations, warranties, undertakings and acknowledgements contained in the Appendix to this Announcement.

The Placing Shares will be issued credited as fully paid and will rank pari passu with the existing Ordinary Shares, including the right to receive all dividends and other distributions (if any) declared, made or paid on or in respect of such shares after the date of their issue.

Application will be made for the Consideration Shares and the Placing Shares to be admitted to trading on AIM (“Admission”). It is expected that the Acquisition will complete and Admission will occur at 8.00 a.m. on 30 November 2018 with the transfer and settlement of the Placing Shares with Placees shortly following Admission. In this regard, the Placing Shares are expected to settle in the CREST accounts of Placees within two Business Days of the date of Admission.

Completion of the Placing is conditional on the Completion of the Acquisition, Admission of the Placing Shares and on each of the Vendor Placing Agreement and the Arrangement Agreement becoming unconditional in all respects. In the event that, for whatever reason, the Placing does not become unconditional or is terminated, the cash payable to Livingbridge VC that would have been funded by the proceeds of the Vendor Placing will be satisfied by the Company using existing cash resources and Livingbridge VC will sell the Placing Shares to the Company’s employee benefit trust for nil consideration.

Related Party Transaction

Royal County of Berkshire Pension Fund has committed to subscribe for up to 490,228 Placing Shares in the Placing. Due to the size of RCBPF’s existing holding of 3,937,316 Ordinary Shares in the capital of the Company, representing approximately 19.1 per cent. of the current issued share capital, this transaction is considered to be a related party transaction pursuant to AIM Rule 13 of the AIM Rules.

The Directors consider, having consulted with the Company’s nominated adviser, Canaccord Genuity, that the terms of RCBPF’s participation in the Placing are fair and reasonable in so far as Shareholders are concerned. Immediately following Admission, it is envisaged that RCBPF will hold 4,427,544 Ordinary Shares representing approximately 18.28 per cent. of the enlarged share capital.

Details of the credit facility

The Company has entered into new banking facilities in connection with the Acquisition provided by Banco Santander S.A. (London branch). The facilities include a new term loan of £6.0 million and a revolving credit facility of £4.0 million. The new facilities are conditional upon completion of the Acquisition and are repayable in November 2021.

Placing and Acquisition Considerations

The Directors believe the Acquisition to be in the best interests of Gresham house and its shareholders as a whole. In making this statement the Directors have spent time, and have taken appropriate advice, in considering the Acquisition and the method by which the cash consideration payable in respect of the Acquisition should be funded. The Directors concluded that the Placing was the most appropriate structure to raise equity funding, alongside funds raised from the new credit facility and the existing cash resources of the Company.

By incorporating a vendor placing into the cash consideration payable in respect of the Acquisition, the Company is utilising the authorities granted to it under Resolution 7, being the ability to allot shares for shares, passed at its last annual general meeting held on 7 May 2018. The Company retains the disapplication of pre-emption rights in respect of issues of shares for cash granted under Resolution 8, at its AGM. The Company believes it is important to retain its cash allotment authorities as it provides funding flexibility in relation to future corporate or strategic events,


Follow this article (for updates)

X

Follow this article (for updates)

E-mail : *

*
Your personal data will be used to support your experience throughout this website and for other purposes described in our Privacy Policy. I hereby agree and consent to the privacy policy.

This article Gresham House Plc Acquire Livingbridge VC Fund Management Business was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
...
Gresham House plc intention to float a fund to provide utility-scale Energy Storage Systems https://www.directorstalkinterviews.com/gresham-house-plc-intention-to-float-a-fund-to-provide-utility-scale-energy-storage-systems/412759464 Thu, 04 Oct 2018 08:49:45 +0000 https://www.directorstalkinterviews.com/?p=759464 Gresham House plc (LON: GHE) announced its intention to float a fund that will provide utility-scale Energy Storage Systems to the National Grid. ESS are the enabling infrastructure that will support the continued growth of renewable energy sources such as wind and solar, essential to the UK’s stated target to reduce carbon emissions. Gresham House today ...

This article Gresham House plc intention to float a fund to provide utility-scale Energy Storage Systems was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
Gresham House plc (LON: GHE) announced its intention to float a fund that will provide utility-scale Energy Storage Systems to the National Grid.

ESS are the enabling infrastructure that will support the continued growth of renewable energy sources such as wind and solar, essential to the UK’s stated target to reduce carbon emissions.

Gresham House today announces its intention to launch Gresham House Energy Storage Fund plc.

The Fund will invest in utility-scale ESS in Great Britain that provides services to the National Grid to support grid stability as well as delivering the essential infrastructure required to enable Great Britain’s increasing reliance on intermittent sources of renewable energy such as wind and solar.

ESS will offer infrastructure and renewables investors a diversified and robust source of income, independent of renewables subsidies or the absolute level of power prices.

The UK already operates over 40GW of renewable energy which represented over 30% of total electricity generation in Q1 2018. This is set to grow to 50% by 2023.

This forecast growth in intermittent renewables increases the variability of power supply on the National Grid. ESS address this challenge very effectively by absorbing or releasing power. The transition to renewables can only continue with the support of effective ESS.

Rupert Robinson, Managing Director of Gresham House Asset Management, said: “We are excited to bring this opportunity to invest in energy storage systems to institutional and high net worth investors. What will set the Fund apart is the proven expertise of the management team in this highly specialist sector and the cornerstone investment of more than £30 million, from the management team and institutional investors. The seed portfolio comprises 70 megawatts (MW) across five fully operational sites. We are confident that we can deploy up to £200 million in a tangible pipeline within 12 months of IPO.”


Follow this article (for updates)

X

Follow this article (for updates)

E-mail : *

*
Your personal data will be used to support your experience throughout this website and for other purposes described in our Privacy Policy. I hereby agree and consent to the privacy policy.

This article Gresham House plc intention to float a fund to provide utility-scale Energy Storage Systems was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
...
Gresham House plc Q&A with CEO Tony Dalwood: Interim Results (LON:GHE) https://www.directorstalkinterviews.com/gresham-house-plc-qa-with-ceo-tony-dalwood-interim-results-longhe/412758582 Mon, 17 Sep 2018 10:25:36 +0000 https://www.directorstalkinterviews.com/?p=758582 Gresham House plc (LON:GHE) Chief Executive Officer Tony Dalwood caught up with DirectorsTalk for an exclusive interview to discuss their interim results, delivering on strategy, pipeline growth and what to expect from the remainder of 2018.   Q1: Tony, what are the main takeaways from the Gresham House interim results? A1: Very pleased with the ...

This article Gresham House plc Q&A with CEO Tony Dalwood: Interim Results (LON:GHE) was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
Gresham House plc (LON:GHE) Chief Executive Officer Tony Dalwood caught up with DirectorsTalk for an exclusive interview to discuss their interim results, delivering on strategy, pipeline growth and what to expect from the remainder of 2018.

 

Q1: Tony, what are the main takeaways from the Gresham House interim results?

A1: Very pleased with the interim results this year, 2018. It’s shows a number of things, particularly continued momentum, operational performance as well as growth organically and through acquisition.

How that’s been shown, the financial returns are coming through, our targets are being met mainly things like we now have £1.6 billion of assets under management, we hit an exceeded profitability which is, again, another milestone we set ourselves a while back. Other areas and financial metrics will include our revenue targets and the fact that we have a very strong balance sheet. We have substantial cash, £17/£18 million of cash plus liquid assets totalling over £30 million so, again, that positions us in a really positive way.

Other takeaways include the fact that the acquisitions we made over the last 12 months were capturing the synergies we outlined in advanced of the acquisitions and that value is, again, something we value and believe is precious as we generate shareholder value going forward. Another aspect is the fact we’re recruiting and bringing in quality people into the group now, that bodes well for the long-term and sustainable growth of this business.

So, really, all-in-all GHE is increasingly becoming a significant alternative asset management business so we’re very pleased with that.

 

Q2: How is the strategy delivering on its objectives to deliver shareholder value?

A2: We’ve set some very clear financial metrics in terms of shareholder value.

One is the return on capital when we use our balance sheet and that needs to exceed 15% and we’ve shown that our acquisitions and deployment of capital to date is hitting that which is really pleasing in the medium term.

Secondly, operation margin targets, we’re on track to target over 40% margins in the medium to longer term and that’s a crucial area to generate operational gearing in this business.

That would lead eventually, and we would expect to a decent shareholder value and that we can see that coming through in terms of others recognising the vision and our objectives here. We’ve had new shareholders come on board in this business in the last 6-12 months, both institutional high net-worth’s but also wealth managers as well.

 

Q3: What can we expect for the rest of 2018 from Gresham House plc and what is the pipeline for growth?

A3: The focus on organic growth is very important. We’re integrating FIM and Hazel Capital which we continue to do and that’s creating some good momentum. We have clear organic growth plans from our existing products, the British Strategic Fund, forestry, solar and increasingly from areas that we’ve highlighted that we have expertise in like energy storage systems, batteries, which we’re quite excited about actually.

The focus, as I say, is organic but we have been positive and constructive in our opportunistic approach to acquisitions. So, whilst we are focussed on delivering growth in our existing 5 asset management areas, we will always look where we can capture some value from further acquisitions although that isn’t necessarily our focus at the moment.

So, all-in-all, for the remainder 2018, we’re quite positive around the momentum that’s in the business.

 

Gresham House plc (LON:GHE) is a specialist alternative asset manager providing funds, direct investments and tailored investment solutions, including co-investment across a range of highly differentiated alternative investment strategies. 


Follow this article (for updates)

X

Follow this article (for updates)

E-mail : *

*
Your personal data will be used to support your experience throughout this website and for other purposes described in our Privacy Policy. I hereby agree and consent to the privacy policy.

This article Gresham House plc Q&A with CEO Tony Dalwood: Interim Results (LON:GHE) was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
...
INTERVIEW: Gresham House Plc Developing a high-quality pipeline of new opportunities https://www.directorstalkinterviews.com/interview-gresham-house-plc-developing-a-high-quality-pipeline-of-new-opportunities/412758528 Fri, 14 Sep 2018 13:26:35 +0000 https://www.directorstalkinterviews.com/?p=758528 Gresham House Plc (LON:GHE) CEO Tony Dalwood talks to DirectorsTalk about their strong interim results for the six months ended 30th June 2018. Tony discusses the key points from the results, how the strategy is delivering on its objectives to deliver shareholder value, what we can expect for the rest of 2018 and what’s in ...

This article INTERVIEW: Gresham House Plc Developing a high-quality pipeline of new opportunities was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
Gresham House Plc (LON:GHE) CEO Tony Dalwood talks to DirectorsTalk about their strong interim results for the six months ended 30th June 2018. Tony discusses the key points from the results, how the strategy is delivering on its objectives to deliver shareholder value, what we can expect for the rest of 2018 and what’s in the pipeline for growth.

Gresham House plc is an AIM quoted specialist asset manager providing funds, direct investments and tailored investment solutions, including co-investment across a range of highly differentiated alternative investment strategies. Our expertise includes timber, renewable energy, housing and infrastructure, strategic public and private equity, (private assets). The Group aims to deliver sustainable financial returns and is committed to building long-term partnerships with clients, (institutions, family offices, high-net-worth individuals, charities and endowments and private individuals) to help them achieve their financial goals. Shareholder value creation will be driven by long-term growth in earnings as a result of increasing AUM and returns from invested capital.


Follow this article (for updates)

X

Follow this article (for updates)

E-mail : *

*
Your personal data will be used to support your experience throughout this website and for other purposes described in our Privacy Policy. I hereby agree and consent to the privacy policy.

This article INTERVIEW: Gresham House Plc Developing a high-quality pipeline of new opportunities was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
INTERVIEW: Gresham House Plc Developing a high-quality pipeline of new opportunities Gresham House Plc (LON:GHE) CEO Tony Dalwood talks to DirectorsTalk about their strong interim results for the six months ended 30th June 2018. Tony GHE ...
Gresham House plc Reports strong H1, more than doubling AUM https://www.directorstalkinterviews.com/gresham-house-plc-reports-strong-h1-more-than-doubling-aum/412758389 Thu, 13 Sep 2018 06:23:58 +0000 https://www.directorstalkinterviews.com/?p=758389 Gresham House plc, (LON:GHE) the specialist alternative asset manager, has today reported a strong first half of the year, more than doubling assets under management, developing a high-quality pipeline of new opportunities and expanding its distribution capabilities. Highlights As at 30 Jun 18 As at 31 Dec 17 Change (£m) (£m) (%) Assets under management ...

This article Gresham House plc Reports strong H1, more than doubling AUM was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
Gresham House plc, (LON:GHE) the specialist alternative asset manager, has today reported a strong first half of the year, more than doubling assets under management, developing a high-quality pipeline of new opportunities and expanding its distribution capabilities.

Highlights

As at

30 Jun 18

As at

31 Dec 17

Change

(£m)

(£m)

(%)

Assets under management

1,609

649

+148

Cash and liquid assets1

33.3

24.5

+36

Six months to 30 Jun 18

Six months to 30 Jun 17

Total income

4.9

2.5

+98

Operating loss

(0.5)

(1.1)

+58

Adjusted operating profit2

0.4

(0.8)

 

1Cash and liquid assets includes cash and investments in tangible and realisable assets

2Adjusted operating profit is defined as the net trading profit of the Group before deducting amortisation, depreciation and exceptional items relating to acquisition and restructuring costs. Represents a £1.2m improvement from a £0.8m loss to a £0.4m profit

* Growth in AUM to £1.6bn results in H1 adjusted operating profit of £0.4m – profitability enhanced by the capture of identified synergies from acquisitions with more identified for 2019

* Strong balance sheet with cash and liquid assets of £33.3m

* Strong performance of existing funds managed by the Group, including Gresham House Strategic plc where the three-year anniversary saw outperformance over benchmark by 11.2% since the Group took over the management contract

* All corporate acquisitions to date have met or exceeded their 15% medium-term return on shareholder capital hurdle

* Successful completion of £15.0m placing to fund transformational acquisition of FIM Services, enhancing the Group’s forestry and new energy asset management capabilities (Gresham House now the largest UK commercial forestry asset manager)

* Continuing investment in scaling existing five asset management divisions, operations, marketing and distribution capability from organic cashflow

* Intention to accelerate dividend policy with an initial payment in 2019

 

Commenting on the results, Anthony Dalwood, Gresham House plc Chief Executive, said:

“We have made excellent progress in the first half, adding scale to the business, making us more relevant and accessible to a wider constituency of investors.

“The challenges created by wider macroeconomic and geopolitical conditions have increased investors’ focus on our areas of expertise. We are gaining greater brand recognition by identifying and developing high-quality investment opportunities and providing excellent client service.

“Whilst we focus on completing the integration of the FIM business, there remain attractive opportunities to grow the business organically and through acquisition. We will continue to be selective in our acquisition strategy, focusing on the most effective way to create value for shareholders.”

CHAIRMAN’S STATEMENT

During the first half of the year, we have continued to implement our strategy of creating a diverse range of high-quality alternative investment opportunities, delivered with outstanding client service. Over three years into our plan to create a market-leading alternative investment manager, I am delighted to report that we continue to make strong progress and are excited by the opportunities before us.

ACTIVITY IN THE PERIOD

The continued success of the Group relies on maintaining sustainable long-term growth, identifying new investment opportunities and using the balance sheet to develop our offering for clients.

The management team has maintained strong momentum during the period, growing the Group’s Assets Under Management, (“AUM”) by 148% to over £1.6 billion, (2017: £649 million), driven by the transformative acquisition of FIM Services Limited, (“FIM”) in May 2018. Gresham House is now a market-leading forestry asset manager in the UK with enhanced expertise in new energy asset management.

The final part of the Hazel Capital LLP (“Hazel Capital”) transaction completed in the period, with the Group acquiring stakes in energy storage projects and expanding its revenue opportunities in the renewables market. The team is developing these new projects, which are expected to be an attractive addition to the Group’s investment pipeline.

Taking the wider pipeline into consideration, we have an exciting array of new opportunities in prospect. Consequently, we have continued to invest in our distribution and sales capabilities, ensuring that we are able to address a wider investor audience.

RESULTS

Income for the first half of the year nearly doubled in comparison to the first half of 2017, reaching £4.9 million, (H1 2017: £2.5 million). The Group is now profitable on an underlying basis, achieving an adjusted operating profit of £0.4 million, (H1 2017: £0.8 million loss) driven by organic activity, such as the British Strategic Investment Fund and Gresham House Strategic plc and acquiring management contracts and businesses, such as Hazel Capital and FIM.

The Gresham House Group is focused on generating long-term shareholder value through growing organically alongside selective acquisitions in specialist alternative asset management.

The Board has considered the Company’s long-term dividend policy and is pleased to announce that it intends to propose a dividend payment alongside the announcement of the full year results of the Company for the year ended 31 December 2018.

SHAREHOLDERS

As management continues to grow the business, the Group is fortunate to enjoy the support of a strong and committed shareholder base. This was evidenced most recently during the £15 million placement and accelerated book build as part of the FIM transaction, where we were over-subscribed and also welcomed a number of new shareholders to the register. The Board will continue to work closely with the Group’s shareholders as we continue to implement our strategy for the business. We are also delighted that there is a growing ownership of Gresham House shares within the employees of the Group who are investing through such mechanisms as bonus reinvestment in “bonus share matching” and “save as you earn”.

BOARD

It is vital that growth companies have access to the right expertise and experience at Board level in order to provide the necessary governance and support to management. I was delighted to welcome Rachel Beagles to the Board in March 2018 who has, together with the 2017 appointment of Simon Stilwell, proved invaluable.

OUTLOOK

The excellent progress made during the first half of the year helped the Group maintain its strong momentum. There’s no doubt that Tony Dalwood and his team have worked hard over the past three years to build a significant specialist alternative asset management business. We are developing an exciting pipeline of opportunities to grow organically and there remain attractive opportunities to grow through acquisition.

As the management team continues to integrate recent acquisitions and develop future opportunities, we look forward with optimism.

Anthony Townsend

Chairman

13 September 2018

CHIEF EXECUTIVE’S REPORT

In the first half of 2018, the Company made excellent progress. Our increased size gives us greater relevance to a wider constituency of investors and our brand, website and client portal are gaining greater recognition. We have ambitious plans to continue growing the business in line with our vision to become an “asset to covet”, with teams across the business developing high-quality new investment opportunities for clients.

CONTINUED GROWTH

The acquisition of FIM during the period has had a transformative effect on the business: more than doubling AUM to £1.6 billion; expanding long-term sustainable management fee income; adding a strong team; and bringing a complementary investor base into the Group, widening its distribution capabilities for new product launches.

At the same time, we have continued our work to develop a range of new investment opportunities, where our blend of skills and expertise can be most effectively deployed to generate high-quality returns for investors and shareholders. Examples of this include our New Energy team developing products in areas such as energy storage systems, where we are targeting new launches in the near future. After the period end, we launched a further fundraising for FIM Solar Distribution LLP and plan to raise further funds for the FIM Sustainable Timber and Energy LP in the second half of 2018.

DISCIPLINED APPROACH

The Group’s continued growth requires a diligent and disciplined approach to managing risk and controls within the business. The Investment Committee process exists to challenge capital allocation decisions for both Gresham House plc as well as the funds that are managed and advised by the Group. This discipline aims to safeguard client and shareholder funds alike.

GENERATING SHAREHOLDER VALUE

Scale and efficiency are central elements of creating shareholder value in a successful asset management business. During the period we added significant scale to the business and have focused on optimising the Group’s new and existing operations.

The integration of the FIM business is going well and we are already starting to see the benefit of operational efficiency gains. We have only recognised the profits of the FIM business since acquisition towards the end of May 2018, so the second half of 2018 will see the real impact of FIM on the profits of the Group. In addition, we have identified further synergies for 2019.

Turning to the wider Group, all acquisitions to date have met their 15% medium-term return on capital hurdle, demonstrating the team’s ability to create value through acquisitions and integration. The earnout payment to the sellers of the Aitchesse business was also settled in the period, confirming a return on investment of 15% since acquisition.

We are also creating shareholder value through the development of new investment products and the effective management of existing funds through our two core divisions, Strategic Equity and Real Assets. The British Strategic Investment Fund (“BSIF”) is a good example where we continue to have strong interest from local government pension schemes looking to invest in housing and infrastructure opportunities below £50 million. BSIF has invested and committed £27 million across PRS (private rental sector) housing and energy storage systems (utility scale batteries) and has an exciting pipeline of investment opportunities.

The performance of the other funds that the Group manages has been strong, with Gresham House Strategic plc recently passing its three-year anniversary and outperforming its benchmark by 11.2%. This fund has the potential to generate performance fees, alongside other funds, which have the potential to make carried interest payments to the Group. We currently do not accrue for performance fees and carried interest in our results until they are certain, but current performance indicates that we would expect these to be delivered in future periods.

Looking ahead, we have a number of exciting new energy, infrastructure, and private equity investment opportunities alongside which we are using the Group’s balance sheet to develop assets and seed new initiatives, such as energy storage systems.

TALENTED TEAM

Achieving our objectives for the business can only happen with the right mix of high-quality people performing to the best of their abilities. Testament to this is our recent win of Best Alternative Investment Manager at the 2018 European Wealth Briefing Awards. I am grateful to everyone working in the business for what we have achieved so far and will do in the future.

The focus on where to deploy resources is critical to our continued development and we have identified the need to enhance the Group’s distribution and sales capabilities in addition to building our investment teams to deploy capital for investors in an efficient and profitable manner.

With this in mind, I am very pleased that Heather Fleming has joined us as Head of Institutional Business. Heather was previously the Head of Institutional Distribution for UK & Ireland at Fidelity and brings considerable experience and expertise to our fundraising strategy. We will also be hiring to provide greater support for Heather and grow this critical area of the business.

I am also delighted to welcome the team who have joined Gresham House as part of the FIM transaction. We have a high-quality forestry and renewables team to merge with our existing team of strong individuals and capabilities. We expect these key areas of our Real Assets division to develop and grow and I look forward to continuing to work closely with all of the team on new developments and initiatives.

OUTLOOK

Our strategy for Gresham House is proceeding as planned, with organic and acquisitive growth increasing our scale, enabling us to be more efficient, creating attractive investment opportunities for clients and creating value for shareholders. With the achievement of operational profitability, new fundraisings and initiatives, we are gaining momentum across the Group and expect this to positively impact the bottom line.

Whilst we focus on completing the integration of the FIM business, there remain attractive opportunities to grow the business organically and through acquisition. We will continue to be selective in our acquisition strategy, focusing on the most effective way to create value for shareholders.

The geopolitical outlook for the UK and Europe remain uncertain as the terms of Brexit continue to be negotiated. We are monitoring this closely to manage the risks and also capitalise on opportunities as the fundamental characteristics of long-term alternative assets remain attractive to investors.

Whilst valuations across most traditional asset classes are relatively high, the growing demand for alternatives managed by teams with strong track records, continues to grow as asset allocation to these areas increases. Investors are increasingly looking for “partners” to support them in achieving their investment and positive social impact targets. Gresham House has shown multiple points of evidence that it can be a solutions provider and is looking to increase these partnership relationships with more family offices, pension schemes and high net worth individuals to achieve client and shareholder value objectives.

Anthony Dalwood

Chief Executive

13 September 2018


Follow this article (for updates)

X

Follow this article (for updates)

E-mail : *

*
Your personal data will be used to support your experience throughout this website and for other purposes described in our Privacy Policy. I hereby agree and consent to the privacy policy.

This article Gresham House plc Reports strong H1, more than doubling AUM was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
...
Gresham House plc Change advisers https://www.directorstalkinterviews.com/gresham-house-plc-change-advisers/412758017 Fri, 07 Sep 2018 06:11:40 +0000 https://www.directorstalkinterviews.com/?p=758017 Gresham House Plc, (LON:GHE) the specialist alternative asset manager, has announced today that, with immediate effect, Canaccord Genuity Limited has been appointed as the Group’s Nominated Adviser and Joint Broker; and Jefferies International Limited has been appointed as Financial Adviser and Joint Broker. Gresham House plc is an AIM quoted specialist asset manager providing funds, ...

This article Gresham House plc Change advisers was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
Gresham House Plc, (LON:GHE) the specialist alternative asset manager, has announced today that, with immediate effect, Canaccord Genuity Limited has been appointed as the Group’s Nominated Adviser and Joint Broker; and Jefferies International Limited has been appointed as Financial Adviser and Joint Broker.

Gresham House plc is an AIM quoted specialist asset manager providing funds, direct investments and tailored investment solutions, including co-investment across a range of highly differentiated alternative investment strategies. Our expertise includes timber, renewable energy, housing and infrastructure, strategic public and private equity, (private assets). The Group aims to deliver sustainable financial returns and is committed to building long-term partnerships with clients, (institutions, family offices, high-net-worth individuals, charities and endowments and private individuals) to help them achieve their financial goals.

Shareholder value creation will be driven by long-term growth in earnings as a result of increasing AUM and returns from invested capital.


Follow this article (for updates)

X

Follow this article (for updates)

E-mail : *

*
Your personal data will be used to support your experience throughout this website and for other purposes described in our Privacy Policy. I hereby agree and consent to the privacy policy.

This article Gresham House plc Change advisers was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
...
Gresham House Plc GHF performs in line with expectations https://www.directorstalkinterviews.com/gresham-house-plc-ghf-performs-line-expectations/412753368 Tue, 26 Jun 2018 06:10:44 +0000 https://www.directorstalkinterviews.com/?p=753368 Gresham House Plc (LON:GHE), the specialist alternative asset manager, has today announced the final additional consideration in respect of its November 2015 acquisition of Gresham House Forestry Limited, formerly Aitchesse Limited. Gresham House Forestry has performed in line with the Board’s expectations and has delivered on certain performance targets for the period 1 July 2015 ...

This article Gresham House Plc GHF performs in line with expectations was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
Gresham House Plc (LON:GHE), the specialist alternative asset manager, has today announced the final additional consideration in respect of its November 2015 acquisition of Gresham House Forestry Limited, formerly Aitchesse Limited.

Gresham House Forestry has performed in line with the Board’s expectations and has delivered on certain performance targets for the period 1 July 2015 to 28 February 2018, as set out in the Company’s Admission Document dated 4 November 2015.

The final additional consideration is £3.25 million and will be made up of £1 million in cash with the remaining £2.25 million satisfied by the issue of 504,095 new ordinary shares of 25p each at an issue price of 440p (the “Consideration Shares”). The Consideration Shares rank pari passu in all respects with the existing Ordinary Shares of the Company. 79,545 of the Consideration Shares will be subject to lock-up provisions until 31 December 2019. Admission of the Consideration Shares is expected to occur at 8.00 am on 29 June 2018.

The earnout is due to the vendors of Aitchesse Limited, being its senior management at the time of the transaction.

Following Admission, Gresham House Plc’s issued share capital will comprise 20,600,550 Ordinary Shares. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA’s Disclosure and Transparency Rules. The Company does not hold any shares in treasury.


Follow this article (for updates)

X

Follow this article (for updates)

E-mail : *

*
Your personal data will be used to support your experience throughout this website and for other purposes described in our Privacy Policy. I hereby agree and consent to the privacy policy.

This article Gresham House Plc GHF performs in line with expectations was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
...
Gresham House PLC Completion of Investment in GH New Energy https://www.directorstalkinterviews.com/gresham-house-plc-completion-investment-gh-new-energy/412752121 Mon, 04 Jun 2018 06:17:58 +0000 https://www.directorstalkinterviews.com/?p=752121 Gresham House Plc (LON:GHE), the specialist alternative asset manager, has today announced that the conditions precedent relating to its investment into battery storage projects managed by Gresham House New Energy, formerly Hazel Capital LLP, have now been fulfilled. This follows the proposed acquisition announcement of 31 October 2017. The £2.0 million investment will be used ...

This article Gresham House PLC Completion of Investment in GH New Energy was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
Gresham House Plc (LON:GHE), the specialist alternative asset manager, has today announced that the conditions precedent relating to its investment into battery storage projects managed by Gresham House New Energy, formerly Hazel Capital LLP, have now been fulfilled. This follows the proposed acquisition announcement of 31 October 2017.

The £2.0 million investment will be used to acquire shares in operational Energy Storage System (“ESS”) projects as well as a 25% stake in Noriker Power Limited, a developer and service provider of new energy technology. The deal allows Gresham House to be more closely aligned with its client base through investment in the battery storage space alongside the opportunity to capture further value from the development stages of projects.

As announced on 31 October 2017, the investment consideration is comprised of £750,000 in cash and £1.25 million through the issue of new Ordinary Shares. Accordingly, Gresham House is pleased to announce that application has been made for the admission to trading on AIM (“Admission”) of 304,877 new Ordinary Shares of 25p each in the Company at a price of 410p. The newly issued shares rank pari passu in all respects with the existing Ordinary Shares of the Company. Admission of the shares is expected to occur at 8.00 am on 7 June 2018.

Following Admission, Gresham House PLC’s issued share capital will comprise 20,096,455 Ordinary Shares, which figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA’s Disclosure and Transparency Rules. The Company does not hold any shares in treasury.


Follow this article (for updates)

X

Follow this article (for updates)

E-mail : *

*
Your personal data will be used to support your experience throughout this website and for other purposes described in our Privacy Policy. I hereby agree and consent to the privacy policy.

This article Gresham House PLC Completion of Investment in GH New Energy was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
...
Gresham House plc Q&A: Proposed Acquisition of FIM Services Limited https://www.directorstalkinterviews.com/gresham-house-strategic-plc-qa-proposed-acquisition-fim-services-limited/412751127 Tue, 15 May 2018 10:44:41 +0000 https://www.directorstalkinterviews.com/?p=751127 Gresham House plc (LON:GHE) Chief Executive Officer Tony Dalwood caught up with DirectorsTalk for an exclusive interview to discuss their proposed acquisition of FIM Services, the synergies this will create, the benefits of investing in this type of asset class, the financial & strategic benefits to shareholders and fundraising plans over the next 12 months. ...

This article Gresham House plc Q&A: Proposed Acquisition of FIM Services Limited was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
Gresham House plc (LON:GHE) Chief Executive Officer Tony Dalwood caught up with DirectorsTalk for an exclusive interview to discuss their proposed acquisition of FIM Services, the synergies this will create, the benefits of investing in this type of asset class, the financial & strategic benefits to shareholders and fundraising plans over the next 12 months.

 

Q1: The proposed FIM acquisition announced earlier this month means that Gresham House is now a significant forestry manager in the UK. Tony, can you talk us through the deal?

A1: Forestry Investment Management Services Limited has been around for nearly 40 years and we already have an existing and successful forestry business that continues to grow which we’re very pleased with.

The deal has very much been in discussion between us and them for quite a while, so we understand each other’s businesses very well and we are acquiring 100% of Forestry Investment Management (FIM) for cash and shares.

So, it’s very pleasing that some of the shareholders are rolling into Gresham House shares for the longer term which is always an important alignment issue. We are raising some new money off some new shareholders as well as existing so, again, it’s pleasing that existing shareholder was broadly and largely stood their corner and wanted to maintain their position in GHE. Meanwhile, we’re bringing in some new shareholders and that will be completed on May 21st at the General Meeting in order to approve the bill.

It will lead to Gresham House being the number one forestry asset management in the UK and it also enhances our renewables proposition as well. We believe it will be very good for clients, importantly, as well as shareholders and the service provision as well as the management of forest is something we believe will be positive for all stakeholders within the forestry environment.

 

Q2: So, what synergies will this create?

A2: We’ve done extensive diligence on FIM over the last period and we have put together quite a detailed integration plan. We have a number of people working on that, communicating both with our existing business and the new target acquisition of FIM in order to bring them together so that we can have opportunities for efficiencies particularly around process and use of technology.
There’s minimum people overlap which is great, so we hopefully won’t have too much disruption there, but we see opportunities over the longer term to enhance those synergies.

 

Q3: What are the benefits of investing in type of asset class?

A3: Forestry is regarded as the real asset and real assets have come up on the asset allocation agenda quite considerably over the last few years. Typically, some of the characteristics that are sited for forestry are a lower correlation than traditional asset classes such as bonds and equities, there’s also an element of inflation linkage if you look back through history.

It is very much a long-term asset class for those people that want to capture a liquidity discount, this is an opportunity to do so through forestry. For some UK investors, there are BPR, or Business Property Relief, opportunities for inheritance tax purposes.

 

Q4: How has the deal been beneficial to shareholders on a strategic and a financial level?

A4: From a shareholder point of view, there’s both a financial opportunity for returns from EPS enhancements, earnings per share enhancements, and we believe our return on investor capital hurdle will be exceed within the short to medium term.

On the strategic side, again, clear, there are synergies that I’ve alluded to earlier, we’ll become the UK’s number one forestry asset manager and the opportunity within renewables is also enhanced, we have a platform there and we believe we can accelerate growth in that area. As a result of that, we think the clients within the forestry area will also benefit, I mentioned that earlier.
Gresham House itself, post the acquisition, will be increasingly diversified business of scale with critical mass with five platforms, niche assets classes and over £1.5 billion of assets under management.

 

Q5: What can you tell me about fundraising plans over the next 12 months?

A5: From a Gresham House point of view, there aren’t any plans to raise further equity or capital at this stage, we’re always looking at a strategic or acquisition opportunity that meets our financial criteria so that may change in due course but at the moment there are no plans to increase the capital base.

From an underlying investment management teams and our sales and distribution, there are a number of initiatives, particularly in our British Strategic Investment Fund, or BSIF, in infrastructure and housing in the UK.

We’re focussing very much on energy storage systems or battery storage in the UK and that’s growing as a sub-asset class of interest.
Finally, we have a developing co-investment platform with all sides of the various things that we do within Gresham House so there are fundraising plans constantly within the group for the underlying asset classes that we manage.


Follow this article (for updates)

X

Follow this article (for updates)

E-mail : *

*
Your personal data will be used to support your experience throughout this website and for other purposes described in our Privacy Policy. I hereby agree and consent to the privacy policy.

This article Gresham House plc Q&A: Proposed Acquisition of FIM Services Limited was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
...
INTERVIEW: Gresham House Plc FIM Acquisition https://www.directorstalkinterviews.com/interview-gresham-house-plc-fim-acquisition/412750963 Fri, 11 May 2018 11:36:54 +0000 https://www.directorstalkinterviews.com/?p=750963 Gresham House Plc (LON:GHE) CEO Tony Dalwood talks to DirectorsTalk about the proposed acquisition of FIM Services Limited. With the deal meaning that Gresham House would be a significant forestry manager in the UK we ask Tony to talk us through the deal, explain the synergies, the benefits of investing in this type of asset ...

This article INTERVIEW: Gresham House Plc FIM Acquisition was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
Gresham House Plc (LON:GHE) CEO Tony Dalwood talks to DirectorsTalk about the proposed acquisition of FIM Services Limited. With the deal meaning that Gresham House would be a significant forestry manager in the UK we ask Tony to talk us through the deal, explain the synergies, the benefits of investing in this type of asset class, what this means to shareholders on a financial and strategic level and plans for fundraising over the next 12 months.

Gresham House Plc is a specialist alternative asset manager providing funds, direct investments and tailored investment solutions, including co-investment across a range of highly differentiated alternative investment strategies. Our expertise includes strategic public and private equity (private assets), timber, renewable energy, housing and infrastructure. We aim to deliver sustainable financial returns and we are committed to building long-term partnerships with our clients to help them achieve their financial goals. In December 2014, a new management team led by CEO Tony Dalwood set out to transform the former property focused investment trust into a specialist alternatives asset management business. Through a combination of acquisitions and organic growth, the team is delivering on its objectives.


Follow this article (for updates)

X

Follow this article (for updates)

E-mail : *

*
Your personal data will be used to support your experience throughout this website and for other purposes described in our Privacy Policy. I hereby agree and consent to the privacy policy.

This article INTERVIEW: Gresham House Plc FIM Acquisition was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
INTERVIEW: Gresham House Plc FIM Acquisition Gresham House Plc (LON:GHE) CEO Tony Dalwood talks to DirectorsTalk about the proposed acquisition of FIM Services Limited. With the deal meaning that GHE ...
Gresham House Plc Management Invest into Ordinary Shares of the Company https://www.directorstalkinterviews.com/gresham-house-plc-management-invest-ordinary-shares-company/412750839 Thu, 10 May 2018 06:06:56 +0000 https://www.directorstalkinterviews.com/?p=750839 Gresham House Plc (LON:GHE), the specialist alternative asset manager, announced today that the management team and certain employees have elected to invest and defer up to the maximum amount permitted of their 2017 bonus award into ordinary shares in the Company pursuant to the Company’s Bonus Share Matching Plan. The purpose of the Plan is ...

This article Gresham House Plc Management Invest into Ordinary Shares of the Company was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
Gresham House Plc (LON:GHE), the specialist alternative asset manager, announced today that the management team and certain employees have elected to invest and defer up to the maximum amount permitted of their 2017 bonus award into ordinary shares in the Company pursuant to the Company’s Bonus Share Matching Plan.

The purpose of the Plan is to encourage Gresham House Plc employees to invest in the long-term growth of the Company. Under the Plan, equal portions of any award are subject to achieving 7% compound annual growth rate in total shareholder return and out-performing the FTSE All Share Index from the date of deferral. In the event that this performance condition is not met, the participants of the Plan will receive only the ordinary shares acquired with the deferred bonus.

Further details of the Plan are set out at page 39 of the 2017 annual report, which can be found on the Company’s website, www.greshamhouse.com.

Application has been made for the admission to trading on AIM (“Admission”) for 109,540 Ordinary Shares issued under the Plan at a price of 410.8p per Ordinary Share, which equates to the average of the market closing price over the last ten trading days as set out in the terms of the Plan. The new Ordinary Shares will rank pari passu in all respects with the existing Ordinary Shares of the Company. Admission of the new Ordinary Shares is expected on 15 May 2018.

Following Admission, the Company’s issued share capital will comprise 12,650,189 ordinary shares, which figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA’s Disclosure and Transparency Rules. The Company does not hold any shares in treasury. In addition, the Company will have 1,068,120 shareholder warrants in issue.

The notifications which follow, made pursuant to Article 19(3) of the Market Abuse Regulation, provide further details. The dealings set out below are in respect of the initial shares committed to be purchased by the relevant Person Discharging Managerial Responsibilities (“PDMR”). Any matching shares due to be issued will be issued upon the satisfaction of the conditions set out above.


Follow this article (for updates)

X

Follow this article (for updates)

E-mail : *

*
Your personal data will be used to support your experience throughout this website and for other purposes described in our Privacy Policy. I hereby agree and consent to the privacy policy.

This article Gresham House Plc Management Invest into Ordinary Shares of the Company was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
...
Gresham House Plc Acquisition of FIM Services Ltd https://www.directorstalkinterviews.com/gresham-house-plc-acquisition-fim-services-ltd/412750434 Wed, 02 May 2018 06:19:48 +0000 https://www.directorstalkinterviews.com/?p=750434 Gresham House Plc (LON:GHE), the specialist alternative asset manager, has today announced the proposed acquisition of the entire issued share capital of FIM Services Limited, an alternative investment fund manager specialising in UK real assets, specifically sustainable forestry and renewable energy investments, by its wholly-owned subsidiary, Gresham House Holdings Limited, for a total consideration of ...

This article Gresham House Plc Acquisition of FIM Services Ltd was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
Gresham House Plc (LON:GHE), the specialist alternative asset manager, has today announced the proposed acquisition of the entire issued share capital of FIM Services Limited, an alternative investment fund manager specialising in UK real assets, specifically sustainable forestry and renewable energy investments, by its wholly-owned subsidiary, Gresham House Holdings Limited, for a total consideration of up to £25.0 million on a cash-free, debt-free basis (subject to certain adjustments).

The Acquisition combines two leading firms in UK commercial forestry management and renewables, adding both assets under management (“AUM”) and in-house investment expertise to Gresham House Forestry and Gresham House New Energy. Upon completion, Gresham House’s AUM will be over £1.5 billion across five specialist alternative investment strategies: forestry, new energy, UK housing and infrastructure, private assets and strategic public equity.

On completion, Gresham House will pay an initial consideration of £21.0 million comprising £11.2 million in cash and £9.8 million in loan notes (such loan notes to be exchanged for new ordinary shares in Gresham House) (the “Consideration Shares”). Further deferred consideration of up to £4.0 million will be payable by the Company, subject to the satisfaction of certain performance targets being met over a two year period post-Completion.

Gresham House has a robust investment process when appraising balance sheet investments. The acquisition of FIM is expected by the Directors to provide financial returns which exceed its 15 per cent. return on capital hurdle in the short-medium term alongside material earnings enhancement before identified synergies. The historic acquisition multiple is 6.2x EBITDA, rising to 7.4x with full deferred payments, thereby accelerating the Company’s profitable growth and increasing the potential to pay dividends.

In addition, Gresham House is pleased to announce the proposed conditional placing of new ordinary shares in the Company (the “Placing Shares”) at a price of 410 pence per Placing Share (the “Placing Price”) to raise approximately £15.0 million (before expenses) (the “Placing”). The proceeds of the Placing will be used to satisfy, in part, the cash consideration payable pursuant to the Acquisition.

The Placing is being conducted through an accelerated book building process which will be launched immediately following the release of this announcement and which is expected to close no later than 4.00 p.m. (BST) today. Liberum Capital Limited is acting as financial adviser, nominated adviser, broker and sole bookrunner in relation to the Placing. The Placing is not being underwritten.

Highlights

The Acquisition

• The Acquisition combines two leading firms in UK commercial forestry management and renewables, adding both AUM and in-house investment expertise to Gresham House Forestry and Gresham House New Energy.

• Upon completion of the Acquisition, Gresham House’s AUM will be over £1.5 billion across five specialist alternative investment strategies: forestry, new energy, UK housing and infrastructure, private assets and strategic public equity.

• The Acquisition should accelerate the Group’s (as enlarged by the Acquisition) profitability growth and increase the potential to pay dividends.

Taurus London acted as lead adviser to Gresham House on the Acquisition.

The Placing

• Gross proceeds of approximately £15.0 million (approximately £14.5 million net of expenses) to be raised via a proposed Placing at an issue price of 410 pence per Placing Share.

• The Placing Price of 410 pence per Placing Share represents a 1.06 per cent. premium to the 30 day VWAP of 405.69 pence.

• The Placing Shares represent, in aggregate, approximately 19.68 per cent. of the Company’s issued share capital as enlarged by the issue of the New Ordinary Shares.

• The proceeds of the Placing will, in addition to the Company’s existing cash resources of approximately £13.5 million and cash acquired from FIM of approximately £6.0 million, be used:

◦ to satisfy the cash consideration payable pursuant to the Acquisition as well as restructuring costs and fees (of up to £22.8 million);

◦ for general corporate purposes, including seeding of new products and the provision of project development capital (approximately £5.0 million);

◦ to fund future acquisitions (approximately £3.7 million); and

◦ to provide general working capital, including satisfying regulatory and restructuring capital requirements (approximately £3.0 million).

• Completion of the Placing will be conditional upon, inter alia, the approval by Shareholders at the General Meeting of the Resolutions and Admission occurring, details of which are set out below.

Anthony Dalwood, Gresham House Plc CEO commented: “The acquisition of FIM will allow Gresham House to achieve scale and establish a market leading position as an investor in UK commercial forestry whilst also enhancing the Gresham House New Energy division. Over the last three years, we have rapidly established Gresham House as a platform for growth for specialist asset management teams. The strategic rationale, alongside the potential financial returns, are clear and exciting for Gresham House shareholders.”

Richard Crosbie Dawson, Managing Director of FIM commented: “Gresham House is the ideal home for FIM’s next stage of growth. Tony and his team have a proven track record in successfully integrating businesses and our own integration planning is already underway. We have a complementary client base to Gresham House and our combined expertise and experience will facilitate new investment opportunities. We are excited about what the future holds.”

The Accelerated Book Build

The Placing is being conducted by way of an Accelerated Book Build led by Liberum Capital as sole bookrunner.

Completion of the Placing will be conditional upon, inter alia, the approval by Shareholders at the General Meeting of the Resolutions and Admission occurring.

Accordingly, the Company expects to publish a circular (the “Circular”) in due course following the successful closure of the Accelerated Book Build, in order to convene the General Meeting to approve certain matters necessary to implement the Placing and the Acquisition (the “Resolutions”).

The Company has today entered into the Placing Agreement with Liberum Capital which contains customary terms and conditions, described in more detail below. Pursuant to the Placing Agreement, Liberum Capital has conditionally agreed, as agent for the Company, to use its reasonable endeavours to procure Placees for the Placing Shares at the Placing Price.

Your attention is drawn to the detailed terms and conditions of the Placing described in the Appendix to this Announcement (which forms part of this Announcement).

The book for the Accelerated Book Build will open with immediate effect. The book is expected to close no later than 4.00 p.m. (BST) today. The timing of the closing of the book and the making of allocations may be accelerated or delayed at Liberum Capital’s sole discretion. The Appendix to this Announcement contains the detailed terms and conditions of the Placing and the basis on which investors may participate in the Accelerated Book Build. The Placing is not being underwritten by Liberum Capital. Details of the number of Placing Shares conditionally placed with institutional and other investors pursuant to the Placing and gross proceeds will be announced as soon as practicable after the close of the Accelerated Book Build.

Qualifying investors who are invited, and who choose, to participate in the Accelerated Book Build by making an oral and legally binding offer to acquire Placing Shares, will be deemed to have read and understood this Announcement in its entirety, including the Appendix, and to be making such offer on the terms and subject to the conditions contained herein and to be making the representations, warranties, undertakings and acknowledgements contained in the Appendix to this Announcement.

The Placing Shares will be issued credited as fully paid and will rank pari passu with the existing ordinary shares in the capital of the Company (the “Ordinary Shares”), including the right to receive all dividends and other distributions (if any) declared, made or paid on or in respect of such shares after the date of their issue.

Circular and Notice of General Meeting

The Company expects to publish the Circular in connection with the Placing and the Acquisition in due course, which will contain a notice convening the General Meeting in order to approve certain matters necessary to implement the Placing and the Acquisition. A copy of the Circular will be made available on the Company’s website at www.greshamhouse.com.

The General Meeting is expected to be convened for 11.00 a.m. on 21 May 2018 and will take place at the offices of the Company’s solicitors, Eversheds Sutherland (International) LLP at One Wood Street, London EC2V 7WS. The actions that Shareholders should take to vote on the Resolutions will be set out in the Circular, along with the recommendation of the board of directors of the Company (the “Directors”).

Admission

Application will be made for the New Ordinary Shares to be admitted to trading on AIM and it is expected that Admission will become effective and trading will commence in the Placing Shares at 8.00 a.m. on 22 May 2018.

Further details of the Placing and the Acquisition can be found below.

Defined terms used in this Announcement will have the meaning (unless the context otherwise requires) as set out in this Announcement and in the Circular to be posted to Shareholders in due course, which will be available on the Company’s website www.greshamhouse.com.

This announcement is released by Gresham House Plc and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (“MAR”), encompassing information relating to, inter alia, the proposed Placing to raise approximately £15.0 million and the acquisition of FIM Services Ltd, a specialist manager in real assets investments described above, and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.


Follow this article (for updates)

X

Follow this article (for updates)

E-mail : *

*
Your personal data will be used to support your experience throughout this website and for other purposes described in our Privacy Policy. I hereby agree and consent to the privacy policy.

This article Gresham House Plc Acquisition of FIM Services Ltd was written by DirectorsTalk Interviews.


©2017 DirectorsTalk Interviews
]]>
...