23rd Jun 2016 08:32
LONDON (Alliance News) - AIM-listed investment company Gresham House Strategic PLC on Thursday said it expects its share price discount to net asset value to narrow as it turned to profit in the financial year to the end of March.
The investor made a pretax profit of GBP262,000, turning from a GBP2.4 million loss made a year earlier, thanks to realised gains made on its portfolio and a positive performance in the valuation of its investments, offset partially by higher administrative expenses.
Gresham House Strategic realised gains of GBP427,000 on its portfolio in the year, compared to a GBP407,000 loss made the year prior, while its unrealised gains on its portfolio totalled GBP3.4 million, again swinging from a GBP452,000 loss in the 2015 financial year.
Over the course of the year, Gresham House Strategic completed the sale of assets previously in the SPARK Ventures portfolio, the previous incarnation of the company, and raised GBP14.3 million in new equity to back its investment plans.
The name of the company was changed to Gresham House Strategic from SPARK after Gresham House Asset Management Ltd was appointed asset manager.
Including investments made post-the financial year end, the company has deployed GBP6.2 million so far in primary growth capital and secondary transactions. It holds investments in a number of UK-listed companies, including an 18% holding in mobile software and services company IMImobile PLC and an 11% stake in retail, promotional and brand experience specialist SpaceandPeople PLC.
The portfolio also includes holdings in digital marketing firm Be Heard Group PLC, illustrated book publisher Quarto Group Inc, industrial services and rental company Northbridge Industrial Services PLC, and asset manager Miton Group PLC.
Gresham House Strategic Chairman David Potter said the fund is still trading at a discount to its net asset value, but he expects this to narrow over the coming financial year as its investment manager, which has only been place for ten months, continues to shape the fund. The fund's net asset value discount narrowed to 20% by the end of the financial year, from 34% at the start.
The company's net asset value per share at the end of March was 995.71 pence, compared to 1,080.00p at the end of March.
"We believe that many good investment opportunities to deploy cash and inject growth capital into smaller companies in support of long-term strategies will arise in the short-term," Potter said.
"Markets are, and may remain volatile, and smaller quoted companies will continue to be under-researched and sometimes friendless. The board is optimistic about the prospects for the underlying investments which should drive NAV growth and with risk appetite stable, the discount to NAV should narrow in the coming year," he added.
Shares in Gresham House Strategic were up 1.2% to 789.00p on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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