Gresham House reports strong year amid volatile conditions

Alternative asset management specialist Gresham House announced a strong set of financial results on Thursday, despite volatile economic conditions.

The AIM-traded company said its assets under management grew 20% to end 2022 at £7.8bn, with organic growth of £1.1bn, or 17%.

Its net core income increased 25%, while operating profit was ahead 34% year-on-year.

Gresham House’s cash position was described as “strong” at £32m, with an undrawn committed revolving credit facility of £20m also available.

As a result of its strong performance, the board reported a return on capital employed of 19.3%, and adjusted diluted earnings per share of 55.2p, up 12%.

The directors recommended a 60% increase in the dividend to 16p, representing a 256% rise in the distribution over three years.

Gresham House noted that the dividend was covered by adjusted diluted earnings per share by 3.5 times.

The firm said it had maintained its momentum in 2023, with a positive start to the year, including new fundraisings across its asset classes.

“We are ahead of our ‘GH25’ five-year targets through the strong execution of our financial and strategic goals to create shareholder value,” said chief executive officer Tony Dalwood.

“Importantly, we are delivering strong investment performance for clients.

“During a year in which many fund management businesses have found growth challenging, we have increased assets under management organically by 17% and raised the proposed dividend by 60%.”

Dalwood said the company’s “differentiated and relatively resilient” asset classes, together with its investment track records, would provide further growth opportunities both in the UK and internationally.

“We move into 2023 in a strong position and have continued to raise funds across a number of our asset classes.

“The long-term potential to scale Gresham House remains our ambition.”

At 1230 BST, shares in Gresham House were up 4.12% at 710.1p.

Reporting by Josh White for Sharecast.com.