Gresham House Energy Storage Fund Plc GBP · LSE:GRID
Gresham House Energy Storage Fund Plc GBP — Gresham House Strategic — Investor Presentation (February 2018)
21 slides from Gresham House Energy Storage Fund Plc GBP's investor presentation, Feb 28, 2018
Slide 1: Gresham House Strategic Plc Investor Presentation
Gresham House Strategic Plc Investor Presentation 28 February 2018
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 29.9% discount to NAV1 ▪ Concentrated portfolio with considerable potential upside, attractively valued and tracking in line with investment manager’s thesis ▪ Portfolio valued at a discount to market together with sh
Slide 4: Public Equity – The Market Opportunity
Public Equity – The Market Opportunity Smaller companies attractively priced FTSE All Share median EV/EBITDA multiple (x) 15.0 ▪ The valuation differential between large stocks above 11.8 9.5 £250m and smaller, less liquid stocks is significant 10.0 ▪ The valuation dislocation has been increasing 5.
Slide 5: Public Equity – Investment Opportunity
Public Equity – Investment Opportunity Influential minority stakes Gresham House Value Enhancement (5%-25%) and active management of investments (including Board introductions, advisory) Strategic and Provision of Corporate Capital Advice Highly engaged strategy Adding value as an active investor su
Slide 6: Discount to NAV and Strategy offer a 'Double Discount'
Discount to NAV and Strategy offer a ‘Double Discount’ 1. GHS plc shares currently trade at a 29.9%1 discount to NAV 2. The NAV represents a concentrated portfolio of stocks which GHAM believes to be trading below intrinsic value: ▪ Gresham House Investment theses for the portfolio holdings identifi
Slide 7: Gresham House Strategic Plc: Top 10 Portfolio Holdings
Gresham House Strategic Plc: Top 10 Portfolio Holdings NAV £42.8m (1,173.7)1 Undervalued with strong Organic & acquisition growth £18.4m £1.6m growth prospects at attractive valuations Buy & build, organic growth Growth capital supporting £4.0m plus strong cash generation £1.5m strategic refocus Rec
Slide 8: Public Equity – Track Record
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 Investment 2 Strate
Slide 9: Public Equity: Investment Team and Investment Committee
Public Equity: Investment Team and Investment Committee Tony Dalwood Bruce Carnegie-Brown Tom Teichman Fund Manager and Investment Committee Investment Committee Investment Committee Over 30 years experience in 30 years experience in VC’ (Chairman) Private Equity and Banking. Started Gresham House C
Slide 10: Conclusion
Conclusion Portfolio investments compare Attractive entry favourably to the point – 29.9%1 indices on discount to NAV valuation, growth forecasts and gearing Alignment - Gresham Significant potential House plc and team upside – Realising members owning intrinsic value of >20% of the Fund portfolio I
Slide 11: Appendix
Gresham House Specialist asset management Appendix | PAGE 11
Slide 12: Gresham House Strategic Plc: Shareholdings
Gresham House Strategic Plc: Shareholdings1 Shareholders % Gresham House plc 19.3% M&G 11.7% Smith & Williamson 8.6% River & Mercantile 8.4% Unicorn Asset Management 4.6% Hargreaves Lansdown 3.5% Charles Stanley 2.9% Berkshire County Council 2.9% Janus Henderson Investors 2.2% Investec Wealth & Inve
Slide 13: Highlights
Highlights 2009 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 2009: Realisation strategy Aug 2015: Appointment of GHAM Dec 2015: Name change to Gresham House Strategic Plc Aug 2016: New ‘sister’ fund - Gresham House Strategic Public Equity Fund LP April 2017: Maiden dividend and share buy-back worth £900,000 |
Slide 14: IMI Mobile – GHS shareholding c.15%
IMI Mobile – GHS shareholding c.15%1 “Undervalued and poorly understood, significant re-rating opportunity” The Story Value creation to realise intrinsic value IMI provides software and services centred around mobile data and consumer engagement, helping enterprise clients engage and transact with t
Slide 15: Northbridge – GHS shareholding c.11.5%
Northbridge – GHS shareholding c.11.5%1 “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 banks. The company’s key mark
Slide 16: Be Heard – GHS shareholding c.10%
Be Heard – GHS shareholding c.10% “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 speciali
Slide 17: Quarto Group – GHS shareholding c.4%
Quarto Group – GHS shareholding c.4% “Secondary with opportunity for growth capital” The Story Value creation to realise intrinsic value Quarto is a leading global illustrated book publishing and distribution group. Quarto creates more than 1,500 adult and children's books a year, sold into 35 count
Slide 18: 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
Slide 19: Case studies
Case studies Holding in company 4.6% Holding in company 2.8% Primary – Growth capital supporting roll-out strategy Secondary – operational gearing and AUM growth ▪ Earnings growth (through site roll-out). ▪ Earnings Growth (organic). ▪ Attractive return on capital characteristics with ability to ▪ I
Slide 20: Case studies
Case studies Holding in company 2.1% Holding in company 3.1% 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 HM
Slide 21: Case studies
Case studies Holding in company 2.2% Profits growth, cash generation, improved valuation ▪ Acceleration of earnings growth via active growth strategy ▪ Effective sales team implementation and expansion ▪ Margin growth; expansion into UK mid-markets companies ▪ Regulatory changes requiring businesses
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