Gresham House posts slight uptick in assets under management

14th Sep 2023 12:20

(Sharecast News) - Alternative asset manager Gresham House reported 5% growth in assets under management in its first half on Thursday, to £8.3bn.

The AIM-traded company said the six months ended 30 June saw an 8% increment in its adjusted operating profit, bringing it to £14.2m, as its adjusted operating margin stood at 34%.

Net core income increased 12%, shifting to £41.6m year-on-year, while the adjusted operating profit jumped 8% to £14.2m.

The adjusted operating margin slightly decreased from 35% in the first half of 2022 to 34%.

Return on capital employed for the period remained consistent at 19% annually, which aligned with the company's 20% medium-term targets.

That also improved from 15.5% in the first half of 2022.

Gresham House reiterated its commitment to growing long-term assets under management and to lay the foundation for new funds by using its balance sheet cash.

Looking ahead, Gresham House said that even with a market slowdown in fundraising, growth momentum was seen across all asset categories in the second half.

It said it had identified a potential investor pipeline for funds aiming to close in the latter half of the year.

The company also confirmed its commitment to long-term strategic plans post the GH25 milestone.

In late 2023 or early 2024, Gresham House intended to transition into private ownership.

However, the board assured continuity in the firm's service delivery and commitment to financial and non-financial client returns through its teams.

"In the first six months of 2023, we have delivered further growth in the business, and we have continued to advance our international expansion ambitions," said chief executive officer Tony Dalwood.

"We now have a strong and firmly established market position, endorsed by recent industry awards wins and nominations as a leading provider of alternative investment solutions spanning natural capital, renewable energy, and strategic equity.

"We now look beyond the GH25 plan towards the next 10 years and a new chapter for Gresham House as a private company targeting continued strong investment performance from our range of specialist asset classes."

At 1108 BST, shares in Gresham House were down 0.23% at 1,065p.

Reporting by Josh White for Sharecast.com.