Gresham House Energy Storage Fund Plc GBP · LSE:GRID
Gresham House Energy Storage Fund Plc GBP — Gresham House Strategic — Investor Presentation (2018)
22 slides from Gresham House Energy Storage Fund Plc GBP's investor presentation, 2018
Slide 1: Gresham House Strategic plc Investor Presentation Q3 2018
GRESHAM HOUSE STRATEGIC PLC INVESTOR PRESENTATION | Q3 2018 Gresham House Asset Management
Slide 2: Disclaimer
DISCLAIMER This presentation (the “Presentation”) is issued by Gresham House Asset The internal rates of return or IRRs presented on a “gross” basis do not reflect any Management Ltd (“GHAM”), Investment Manager for Gresham House Strategic plc management fees, carried interest, taxes and allocable e
Slide 3: Gresham House Strategic plc - The Opportunity
GRESHAM HOUSE STRATEGIC PLC - THE OPPORTUNITY ▪ Compelling opportunity to buy at a 20.9% discount GHS portfolio metrics vs. indices to NAV1 (reduced from 30% at end March 2018) FTSE FTSE All FTSE GHS GHS Small Share AIM ▪ Concentrated portfolio with considerable potential current4 forecast4 Cap curr
Slide 4: Performance
PERFORMANCE Relative performance Discount to NAV Indexed Source: Bloomberg, as at 28 September 20181 3 years since Six months to Since inception to Performance 2018 Q31 inception2 28 Sept 2018 28 Sept 20183 GHS NAV total return 7.0% 30.8% 8.1% 31.5% FTSE Small Cap total return -2.1% 26.7% 4.8% 26.5%
Slide 5: Strategic Public Equity - The Market Opportunity
STRATEGIC PUBLIC EQUITY - THE MARKET OPPORTUNITY Smaller companies attractively priced FTSE All Share median EV/EBITDA multiple (x) 14 ▪ The valuation differential between large stocks above 12.02 £250m and smaller, less liquid stocks is significant 12 10 ▪ The valuation dislocation has been increas
Slide 6: Strategic Public Equity - Investment Opportunity
STRATEGIC PUBLIC EQUITY - INVESTMENT OPPORTUNITY Influential minority stakes 5%-25% and active management of investments (including Board introductions, advisory) Highly engaged strategy Adding value as an active investor supporting strong management teams Targeting inefficient areas of public marke
Slide 7: Gresham House Value Enhancement
GRESHAM HOUSE VALUE ENHANCEMENT Gresham House can add value to investments in a number of areas: 1. Provision of capital a. Primary capital b. Equity and hybrid investments 2. Strategic and corporate advice 3. Access to sector experts and directors a. Use of Investment Committee b. Advisory board c.
Slide 8: Gresham House Strategic plc - Top Portfolio Holdings
GRESHAM HOUSE STRATEGIC PLC - TOP 10 PORTFOLIO HOLDINGS NAV £44.9m (1,000.0)1 Undervalued with strong Strategic change and £11.0m £1.7m growth prospects expansion Recovery and growth, Site rollout, earnings growth, £6.0m investing alongside £1.7m high return on capital management Buy and build, orga
Slide 9: Strategic Public Equity - Track Record
STRATEGIC PUBLIC EQUITY - TRACK RECORD The team launched and managed the SPE strategy while working at SVG Investment Managers. Company Fund Vehicle Years Track record PFS Downing Active 73% total return since inception vs 55% Downing LLP OEIC 2011 - 2016 Management1 FTSE Small-Cap ex IT SVG Investm
Slide 10: Investment Team and Investment Committee
INVESTMENT TEAM AND INVESTMENT COMMITTEE Tony Dalwood Graham Bird Pardip Khroud (ACA) Fund Manager Fund Manager Investment Director Investment Committee Investment Committee (Chairman) Started Gresham House Joined in 2015 Joined in 2015 Asset Management in 2015. Over 25 years’ experience Over 15 yea
Slide 11: Conclusion
CONCLUSION ▪ Attractive entry point - 20.9%1 discount to NAV ▪ Significant potential upside - realising intrinsic value of portfolio ▪ Flexibility to take advantage of opportunities - successful realisations have provided cash to reinvest ▪ Timing - compelling case for small vs large and value vs gr
Slide 12: Appendix
Gresham House Specialist asset management Appendix | PAGE 12
Slide 13: Gresham House Strategic plc - Shareholdings
GRESHAM HOUSE STRATEGIC PLC - SHAREHOLDINGS1 Shareholders % Gresham House plc 22.6% M&G Investments Management Ltd 12.0% Smith & Williamson Investment 8.8% River & Mercantile Asset Management 5.7% Unicorn Asset Management 4.7% Hargreaves Lansdown Asset Management 4.6% Miton Asset Management Ltd 3.0%
Slide 14: GHS History
GHS HISTORY 2009: Realisation strategy adopted August 2015: Appointment of GHAM; realisation strategy ended, adoption of SPE investment policy December 2015: Name change to Gresham House Strategic plc August 2016: Launch of new ‘sister’ fund - Gresham House Strategic Public Equity Fund LP April 2017
Slide 15: Partial Investment Exit - IMImobile
PARTIAL INVESTMENT EXIT - IMI MOBILE The story Partial realisation summary IMImobile provides software and services centred around mobile data and consumer Original value of engagement, helping enterprise clients engage and transact with their customers £11.4m Cost price: 155p realised stake £m: mor
Slide 16: Investment Exit - Miton Group
INVESTMENT EXIT - MITON GROUP The story Realisation summary Miton Group is a UK asset management business focussed on equity and multi- Deal size £m: £1.8m IRR: 26% asset portfolios, and was one of GHAM’s initial investments for GHS 1. Undervalued, misunderstood, margin and return on capital recover
Slide 17: Northbridge - GHS Shareholding 10.6% + £2m Convertible Loan Notes
NORTHBRIDGE - GHS SHAREHOLDING 10.6% + £2M CONVERTIBLE LOAN NOTES1 Recovery and growth capital investing alongside management. The story Value creation to realise intrinsic value Northbridge manufactures specialist industrial equipment for sale and rental and is a leading global supplier of load ban
Slide 18: Be Heard - GHS Shareholding 9%
BE HEARD – GHS SHAREHOLDING 9% Primary growth capital, supporting buy & build strategy. The story Value creation to realise intrinsic value Be Heard's strategy is to create a mid-size digital marketing network providing more flexibility than holding groups and greater scale than digital specialists
Slide 19: Case Studies
CASE STUDIES Holding in company 16.2% Convertible loan note and private equity Secondary - recovery and growth Growth capital supporting buy and build strategy ▪ Earnings recovery (refocus on core UK business) ▪ Earnings growth (bolt on acquisitions and synergies) ▪ Margin recovery (cost reduction i
Slide 20: Case Studies
CASE STUDIES Holding in company 2.0% Holding in company 4.4% Secondary - growth capital to support strategic refocus Secondary - recovery and cash generation ▪ Margin growth (cost control) ▪ Cash generation (cost cutting) ▪ Earnings growth (focus on higher margin services, shift ▪ Resolution of HMRC
Slide 21: Case Studies
CASE STUDIES Holding in company 2.1% Holding in company 4.4% Profits growth, cash generation, improved valuation Recovery, cash generation, debt reduction and re-rating ▪ Acceleration of earnings growth via active growth strategy ▪ Re-rating to comparable trading multiples ▪ Effective sales team imp
Slide 22: Case Studies
CASE STUDIES Holding in company 8.1% Primary - Growth capital supporting roll-out strategy ▪ Earnings growth (through site roll-out) ▪ Attractive return on capital characteristics with ability to invest for organic growth Engagement ▪ Support of strategy ▪ Introduction to GH industry advisor Source:
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