Gresham House Share Discussion Threads

[flyfisher] 22/9/2015 11:25

It was reported in recent SAL results that A.P Stirling passed away in august, he held 5% in GHE + warrants.
I wonder whether that stake will ultimately come to market.

[redhill9] 17/8/2015 07:25

Full disposal of holding in Space and People:

[topvest] 25/7/2015 20:06

Yes, agreed - happy to hold.

[redhill9] 22/7/2015 10:37

Ah, Flyfisher, I see what you mean. Warrants issued free to "normal" shareholders (in exchange for accepting dilution in GHE) started trading in the range you mention, which is what I was referring to.

The increase in price of directors warrants of course isn't based on any increase in value of the company, just the difference between the very cheap issue price directors received compared to the price the market has since settled at (with very few transactions).

I did buy some more warrants a while ago to add to those allocated on restructure as they have well over 4 years remaining and it could be expected that the new directors should raise the NAV substantially in that time.

[flyfisher] 22/7/2015 09:11

Hi redhill, Warrants were issued to directors at 7.5p, last time I looked warrants were trading at 35-40p range.

[redhill9] 22/7/2015 08:50

...............and an increase in warrant price, which are already up by several hundred percent.

Sorry, but what does that mean? Warrant price has hardly moved since issue.

[flyfisher] 21/7/2015 21:10

Trading update is positive, southern gateway is shortly to be fully let and should have a write up in the accounts, presumably it will now be marketed for sale at a decent premium to book.
Newton deal with persimmon is to complete shortly and they have already said that they will market the commercial site at newton after residential completion. Memorial has a contract with tower hamlets and the book discount on the atilla loan notes looks set to be unwound as they are to receive £1.6m by oct 2016 against a book value of £0.95m.
Also possible that part of the deferred tax asset may become recognized in the accounts as useable.

New deal seems to be at a discount to nav of around 15% for which they have accepted a discount of 7% in SAL stock, sal effectively being put into a minority owned subsidiary holding equities and with large tax losses, the asset swap seems to have switched capital gain to an entity which can use it without tax liability, and they have an income stream from fund management of about £600k p.a.
Both income and nav accretive to GHE.

The assets were written down prior to the new team reversing in and the strike of their warrants. It is now time for assets to be written up, a nav increase and an increase in warrant price, which are already up by several hundred percent.

[topvest] 21/7/2015 19:55

Interesting deal today. Need to study more closely. Not particularly happy at swapping SAL away at a 7% discount, but I guess it's part of a bigger deal.

[redhill9] 11/5/2015 09:56

Thanks topvest, I've had a read through the report as well. It does look as though Gresham House could be an interesting prospect in its restructured form, but I suspect it may take some time for value to emerge.

Bearing this in mind I've just bought 2,000 Gresham House warrants (GHEW) at 41.4p to add to those allocated free with the recent restructure. The warrants have an exercise price of 323.27p on 31 December 2019, so 4.5 years remaining. I calculate that if the Ords share price increases by 50% from it's current 279p to 419p by 31/12/19 then the warrants will be worth 95p (419p-323.7p) a profit of 53p or 129%. However that must be conservative if GH get going as they anticipate and, for example, an increase of 100% in the Ords share price to 558p would indicate a warrant value of 234p (558p-323.7p) a profit of 193p or 466%.

Of course if the Ords share price is less than 323.27p by 31/12/19 then the warrants will be worthless, and the share price needs to be 375p just to get your money back, but they look like a worthwhile 4.5 year punt to me for anyone with patience. I bought online at normal rates through Hargreaves Lansdowne after finding Barclays will only deal in GHEW by phone, which has increased costs.

[topvest] 09/5/2015 10:36

Well, I've just been reading the Annual Report. The future does look interesting. Gresham House Asset Management has been set up and is in the process of gaining FCA authorisation. Sounds like they are going to launch an investment vehicle over the summer and possibly do an acquisition. Looks relatively tempting at below asset value, but speculative until we know what is going to happen. With the heavyweight board they could transition this company to an interesting future. Certainly happy to hold for the time being to see what the next step is. New web-site launched as well.

[skyship] 05/4/2015 07:45

bisiboy - I always thought Memorial Holdings a bit of a gem Alternative Asset investment; and always anticipated an imminent sell off at a good premium to Dignity. I certainly read that wrong it would seem...

Still not back in here; but retain on my Monitor.

[redhill9] 02/4/2015 11:04

RNS yesterday. Results on 28 April could be interesting. I've noticed the spread on the warrants has reduced and they are now showing an Offer price of 45p.

GRESHAM HOUSE PLC ("Gresham House" or "the Company")

Co-operative Bank Facility and Notice of Results

The Company is pleased to announce that it has reached an agreement with the Co-operative Bank ("Bank") to extend the group's existing GBP3.278m loan facility on unchanged terms. The Bank has also agreed to advance a further GBP0.372m that will be applied to finance capital expenditure to enhance the Company's property at Southern Gateway, Speke, Liverpool. The enlarged facility will run for two years from drawdown.

The Gresham House group has no other loan facilities.

Notice of results

Company also notifies that it expects to announce its results for the year ended 31 December 2014 on Tuesday, 28 April 2015.

[topvest] 22/2/2015 17:51

Yes, SpaceandPeople is looking good again. It will be interesting to see how Gresham House get on with the new strategy.

[bisiboy] 22/2/2015 17:28

must confess i never really understood the memorial holding investment
i.e why they made it.

[flyfisher] 30/1/2015 19:37

The portfolio holding space and people issued a good trading update last week and its value has increased significantly. It will have put about 5p on the nav of ghe.

[redhill9] 01/12/2014 09:56

GHE restructure now effective and Ords and Warrants now trading on AIM, although no sign yet of new warrants on my Barclays account. Warrants (GHEW) currently quoted as bid/offer 30p/50p.

RNS this morning:

GRESHAM HOUSE PLC (‘Gresham̵7; or the ‘Company’;)

First Day of Dealings on AIM

Successful Fundraising to raise £11.5 million

Gresham House plc (LSE AIM: GHE) is pleased to announce the admission (‘Admission217;) of its Ordinary Shares (AIM: GHE) and Shareholder Warrants (AIM: GHEW) to trading on AIM today, following a placing of 3,973,510 new Ordinary Shares at a price of 286.9p per share and a subscription for 850,000 unquoted Supporter Warrants. The Ordinary Shares have simultaneously been cancelled from the Official List and Main Market.

Highlights

£11.5 million raised, before expenses, pursuant to the placing of 3,973,510 new Ordinary Shares at 286.9 pence per share (the ‘Placing’;) and subscription for 850,000 unquoted Supporter Warrants by various members of the incoming management team.
Total number of Ordinary Shares in issue following Admission is 9,343,390, giving the Company a market capitalisation of approximately £26.8 million at the Placing Price.
1,073,904 Shareholder Warrants have been issued to existing Shareholders as at close of business on 28 November 2014 on a 1-for-5 basis. The Shareholder Warrants have also been admitted to trading on AIM today.
New directors comprising Anthony Townsend, Peter Moon, Anthony (Tony) Dalwood, Michael Phillips and Duncan Abbot have been appointed with effect from today. Richard Chadwick will continue as a director on the board. Tony Ebel, Brian Hallett and John Lorimer have all retired as directors of the Company from today’s date.
Investment Committee has now been appointed.
New Investing Policy to make direct and indirect investments, and investment strategy to develop or acquire an asset management business, have been adopted.
The new board intends to develop the Company as a quoted platform principally for investment in, and investment management of, relatively differentiated, specialist or illiquid assets in order to generate superior returns for Shareholders over the longer term.
Placing proceeds will be used to make investments in line with the New Investing Policy and the investment strategy.
Loss of Authorised Investment Trust status and adoption of new articles of association effective today; the Company now intends to make the appropriate court filings to progress the reduction of capital, as approved by Shareholders at the General Meeting in October 2014.
Westhouse Securities Ltd acted as Nominated Adviser and Broker to the Company and the Placing.

The board now comprises:

Anthony Townsend, Non-Executive Chairman;
Peter Moon, Non-Executive Director;
Anthony (Tony) Dalwood, Chief Executive;
Michael Phillips, Strategic Development Director;
Duncan Abbot, Finance Director; and
Richard Chadwick, Non-Executive Director.

Tony Dalwood, Chief Executive of the Company, commented:

‘I am very pleased that the Company's shares have today been admitted to AIM. Gresham has a long term heritage which this experienced new board and Investment Committee is well placed to capitalise on as a quoted platform for investment management of illiquid, or specialist asset classes. The support from new and existing investors to the transaction was encouraging. The new directors look forward to growing longer term shareholder value in line with the new strategy.

I would also like to take this opportunity to thank the retiring directors, Tony Ebel, Brian Hallett and John Lorimer, for working with the new board in order to successfully complete this transaction and for their long years of dedicated service to the Company.’

Issue Statistics


Number of Ordinary Shares prior to Admission 5,369,880

Number of Placing Shares 3,973,510

Enlarged number of Ordinary Shares at Admission 9,343,390

Placing Price 286.9p

Market capitalisation at Placing Price £26.8 million

Number of Shareholder Warrants at Admission 1,073,904

Number of unquoted Supporter Warrants at Admission 850,000

Gross proceeds of Placing and Supporter Warrant issue £11.46 million

ISIN / Ticker for Ordinary Shares GB0003887287 / GHE

ISIN / Ticker for Shareholder Warrants GB00BPYP3515 / GHEW

[whitecollarhunter] 12/11/2014 09:39

plenty more skeletons in this closet ...
Memorial Holdings investment £2,568,000 in 2010 , 2014 interim accounts £0, overseen by Anthony Abel , Derek Lucie Smith?

[topvest] 21/10/2014 16:36

Interesting that the good news is post placing pricing rather than before. Seem to have taken a long time to get this sorted. Oh well, at least we are starting to get some good news.

[flyfisher] 21/10/2014 12:55

Thanks for the link topvest.
Good news today on a new let at southern gateway. I make pro-forma nav after the placing at 297p/share. Todays announcement should put that up to about 306p.

A step in the right direction.

[topvest] 20/10/2014 18:55

Some news today, probably timed well ahead of the placing...

hxxp://www.theaic.co.uk/aic/news/citywire-news/rupert-robinson-joins-svg-and-iimia-founders-to-launch-fund-group

Looks interesting now. Some high profile names are behind this.

[hobo66] 20/10/2014 12:10

Skinning operation. None of these people have ever managed money. Flaw.

[topvest] 08/10/2014 20:16

Well I think they have good credentials, so I would expect some reasonable deals and new funds/trusts. It's all about the ability of Tony Dalwood I think. He did reasonably on Strategic Equity Capital plc.

[flyfisher] 08/10/2014 20:08

I wonder if the new team will bring a batch of clients with them.