Gresham House (LSE: GHE)

Currency in GBP

Last close As at 26/01/2023

GBP7.57

−3.00 (−0.39%)

Market capitalisation

GBP287m

Gresham House is a specialist alternative asset manager focused on sustainable investments with strategies in public and private equity and real assets including forestry, renewable energy, battery storage, housing and sustainable infrastructure. End-September 2022 AUM stood at £7.5bn.

With c 85% of AUM in real assets and private equity, the group is well-positioned to weather current market conditions. The H122 results in September showed AUM growth of 11% to £7.3bn (+8% organic) and adjusted operating profit up 91% to £13.2m. The November update with the capital markets day reported further growth with end-September AUM of £7.5bn and the company confirmed that it expects to achieve adjusted operating profit in line with market expectations for FY22.

Sector

Financials

Equity Analyst

Andrew Mitchell

Andrew Mitchell

Director, Financials

Key Management

  • Andy Hampshire

    COO

  • Kevin Acton

    CFO

  • Rupert Robinson

    MD of Investment Management Business

  • Samee Khan

    CLO

  • Tony Dalwood

    CEO

Balance Sheet

Forecast net debt (£m)

N/A

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 0.4 3.7 (8.8)
Relative (3.4) (6.2) (11.0)
52 week high/low 1005.0p/710.0p

Financials

Gresham House has a strong position in alternative asset management with a sustainability focus, areas that are expected to experience continued strong growth. Many of the real assets managed are deemed to offer a measure of inflation protection. Most assets managed are in long-term structures generating an average gross revenue margin of 1%. The group is ahead of schedule in delivering its five-year plan and has established a successful track record for acquisitions. Employees are aligned with shareholders, holding c 10% of the shares.

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2020A 41.9 12.1 12.1 32.92 23.0 15.4
2021A 70.4 20.5 20.2 49.31 15.4 13.7
2022E 76.6 26.4 25.9 52.15 14.5 16.7
2023E 84.7 31.4 31.0 58.56 12.9 10.2

Thematics

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