Gresham House sees AUM rise in 'year of significant growth'

15th Mar 2022 07:48

(Sharecast News) - Alternative asset manager Gresham House detailed a "year of significant growth" on Tuesday, with assets under management rising both organically and through acquisitions.

Gresham House said assets under management rose 65% to £6.5bn, driven by strong fundraising, targeted acquisitions, and investment performance and leading to "material growth" in operating margins, now at 32.7%, and adjusted operating profits, up 67% at £20.2m.

Net income was up 51% at £61.6m and earnings per share were 50% higher at 49.4p.

The AIM-listed group also stated it had made strong progress against its GH25 strategic objectives and confirmed that following the achievement of adjusted diluted earnings per share of 49.4p, up 50% year-on-year, it was now recommending a 67% increase in its dividend payment to 10.0p.

Elsewhere, Gresham House revealed it had acquired Irish commercial property asset and development manager Burlington Real Estate Property for an initial consideration of €1.8m.

Gresham House stated the acquisition forms part of its ongoing international expansion plans and was its second acquisition in Ireland, following the addition of Appian Asset Management to the group last summer.

"It consolidates the existing relationship between our two businesses to achieve long-term alignment and is expected to be earnings enhancing for the group with potential further value creation through synergies and identified growth initiatives," said Gresham House.

In addition to the €1.8m consideration, Gresham said the sellers had agreed to subscribe for 73,177 new ordinary shares at a price of £8.42 per subscription share.

As of 1345 GMT, Gresham House shares were up 3.15% to 814.90p.