Gresham House Energy Storage Fund Plc GBP · LSE:GRID
Gresham House Energy Storage Fund Plc GBP — Gresham House Strategic — Investor Presentation (2018)
21 slides from Gresham House Energy Storage Fund Plc GBP's investor presentation, 2018
Slide 1: Gresham House Strategic Plc Investor Presentation Q1 2018
Gresham House Strategic Plc Investor Presentation | Q1 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 30% discount to 130 Relative Performance 0% NAV1 125 -5% ▪ Concentrated portfolio with considerable potential 120 -10% 115 upside, attractively valued and tracking in line with 110 -15% 105 investment manager’s thesis
Slide 4: Public Equity – The Market Opportunity
Public Equity – The Market Opportunity FTSE All Share median EV/EBITDA multiple (x) 14 Smaller companies attractively priced 11.5 12 ▪ The valuation differential between large stocks above 10 7.7 8 £250m and smaller, less liquid stocks is significant 6 ▪ The valuation dislocation has been increasing
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 30%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 identifies
Slide 7: Gresham House Strategic Plc: Top Portfolio Holdings
Gresham House Strategic Plc: Top 10 Portfolio Holdings NAV £43.4m (1,186.3)1 Earnings recovery, de-gearing Undervalued with strong supplemented with modest £19.3m £1.3m growth prospects organic & acquisition growth at attractive valuations Buy & build, organic growth Growth capital supporting £3.8m
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: Investment Team and Investment Committee
Investment Team and Investment Committee Tony Dalwood Graham Bird Pardip Khroud (ACA) Fund Manager and Fund Manager and Investment Director Investment Committee Investment Committee Joined in 2015 (Chairman) Joined in 2015 Over 15 years experience in Started Gresham House Over 25 years experience in
Slide 10: Conclusion
Conclusion ▪ Attractive entry point – 30%1 discount to NAV ▪ Significant potential upside – Realising intrinsic value of portfolio ▪ Portfolio approaching ‘fully invested’ – Cash weighting reduced to <7% NAV ▪ Timing – Compelling case for small vs large & value vs growth ▪ Investment team with a str
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 8.0% Unicorn Asset Management 4.6% Hargreaves Lansdown 3.9% Charles Stanley 3.0% Berkshire County Council 2.9% Alliance Trust Savings 2.3% Investec Wealth & Investm
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 totalling £900,0
Slide 14: IMI Mobile - GHS shareholding c.15%
IMI Mobile - GHS shareholding c.15%1 “Undervalued and poorly understood, significant growth and 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 tran
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 2.4% 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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