Gresham House AuM surge, maiden dividend declared
Asset manager Gresham House posted a surge in full-year assets under management on Thursday as it declared a maiden dividend.
In the year to the end of December 2018, assets under management rose a whopping 250% to £2.27bn, including organic growth of 30% and a boost from acquisitions.
Income during the year was up 125% to £14.5m and adjusted operating profit came in at £3m versus a loss of £0.7m in 2017.
Meanwhile, the company proposed a maiden dividend of 3p a share.
Gresham said its balance sheet remains strong, with £32.8m of tangible and realisable assets versus £24.4m the year before, and gross cash of £14m compared to £9.8m.
Chief executive Tony Dalwood said: "We have continued to maintain momentum and make excellent progress in shareholder value creation whilst investing in the platform ahead of future growth, adding scale to the business and identifying synergies.
"The opportunities in the alternatives sector offer high-quality long-term investment returns for clients, and Gresham House has quality fund management teams and award winning individuals to execute within those specialist markets. The 2019/2020 pipeline for further organic AUM growth is exciting."
Canaccord Genuity said this is a "good set" of results, with AuM in line with expectations but revenue 13% higher than it expected.
"Based on these results, there seems to be upside risk to revenues and the dividend," it said.
"GHE is a conviction buy. We see considerable scope for growth and feel the valuation substantially undervalues the prospects for this high growth alternative asset manager."
At 1440 GMT, the shares were up 4% to 463.92p.