Gresham House strategic pleased with performance

Gresham House Strategic published its final audited results for the year to 31 March on Friday, reporting “strong investment performance” with its net asset value increasing 7.6% during the period, 19.9% during the 12 months to 31 May and 20.2% since the appointment of Gresham House Asset Management.

The AIM-traded company said its investment performance had also outperformed the FTSE Small-Cap Index since GHAM's appointment, with “relative low volatility”.

Its share price increased 8.2% during the year to 31 March and 16.2% in the 12 months to 31 May.

The board said its portfolio of investments was tracking “in line” with GHAM's investment thesis.

IMImobile reportedly performed strongly, with the share price rising 16.7% during the year to 174.5p as of 31 March, and a further 23.8% to 216p as of 31 May a result of a “strong trading update”, good organic growth, cash generation and a successful acquisition.

A strategic co-investment agreement with Gresham House Strategic Public Equity Fund LP, leading to £4.6m cash, was realised on the sale of 23.0% of its original holding in IMI, the board confirmed.

Realised profits on investments were £1.7m since GHAM's appointment.

In line with its policy to return half of realised profits to shareholders, the board recommended a maiden dividend of 15p per share and conducted a share buyback in April 2017, equating to around £0.8m in returns to shareholders.

Looking at its current position, the board said it was looking at its “significant investment” in existing portfolio companies and new strategic investment opportunities.

“Whilst we believe the market is expensive relative to historic ranges and that the outlook for equity markets remains uncertain, we are finding attractive investment opportunities focusing on smaller companies that tend to lack access to growth capital,” it said in its statement.

“We focus on 'value' stocks which have a margin of safety and where we can identify catalysts for value creation, and the ability to generate long term superior returns.”