Gresham House (LSE: GHE)

Currency in GBP

Last close As at 06/02/2023

GBP7.55

−2.00 (−0.26%)

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, GHE is well-positioned to weather challenging market conditions. GHE issued a positive pre-close update for FY22. Year-end AUM is expected to be at least £7.8bn (prior year £6.5bn). FY22 adjusted operating profit is expected to be above the upper end of market expectations of £26.5m (our estimate £25.9m). Since the year end GHE has announced the launch of an Irish Strategic Forestry Fund with target AUM of €200m and strong fund-raising for VCTs signalling continued momentum. We will look to update our estimates following the full-year results announcement in March. Note: the PBT figure shown is GHE’s adjusted operating profit.

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 0.0 4.9 (16.6)
Relative (5.3) (4.7) (17.5)
52 week high/low 1005.0p/710.0p

Financials

Gresham House (GHE) 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 22.9 15.4
2021A 70.4 20.5 20.2 49.31 15.3 13.6
2022E 76.6 26.4 25.9 52.15 14.5 16.6
2023E 84.7 31.4 31.0 58.56 12.9 10.2

Thematics

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