Gresham House upbeat after decent first half
By Josh White
Date: Thursday 15 Sep 2022
(Sharecast News) - Specialist alternative asset manager Gresham House reported assets under management of £7.3bn at the end of its first half on Thursday, rising 11% over the end of 2021.
The AIM-traded firm said organic growth over the six months ended 30 June came in at 8%, while net core income rose 61% to £37.2m.
Adjusted operating profit grew 91% to £13.2m, while its adjusted operating margin improved to 35% from 30%, which the board said highlighted its operational leverage.
Return on capital employed came in at 15.5% on an annualised basis, in line with the firm's medium-term targets but down from 24% a year ago.
The directors said balance sheet cash was used in the period, to continue to invest in and develop projects to grow its long-term assets under management.
Looking ahead, Gresham House said it expected adjusted operating profit to be at least in line with market expectations for the full year ending 31 December.
It said there were opportunities to scale for further assets under management growth across all divisions, including in real assets, public equity and private equity.
Net cash stood at £28.1m, on top of an unused £20m revolving credit facility to support further investment to grow the business.
"We have delivered a strong increase in assets under management, with organic growth and robust net fundraising across all business divisions, despite the challenges of the macroeconomic environment," said chief executive officer Tony Dalwood.
"Our performance illustrates the strength of investor appetite for the asset classes in which we specialise and has enabled us to further enhance the depth and breadth of our client base.
"Whilst we are cognisant of the market environment, we are confident that momentum for our asset classes will be sustained into the second half as we continue to raise funds, make further profitable progress against our 'GH25' strategy and to deliver value to all our stakeholders."
At 1128 BST, shares in Gresham House were up 0.84% at 806.75p.
Reporting by Josh White at Sharecast.com.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN