Interim Management Statement

LONDON--()--

GRESHAM HOUSE plc (“the Company”)

Interim Management Statement (Unaudited)

Introduction

This Interim Management Statement (the “Statement”) has been prepared in order to provide information to meet the requirements of the UK Listing Authority’s Disclosure and Transparency Rules. The Statement covers the three month period to 30 September 2012 together with relevant information up to the date of publication.

Investment Objective

Gresham House plc is an authorised investment trust listed on the London Stock Exchange. Following the passing of an ordinary resolution at the Company’s Annual General Meeting held on 19 May 2011, the Company’s objective is now the orderly realisation of the Group’s assets over a period of approximately two years with a view to returning capital to shareholders thereafter.

Material Events and Transactions

The Company’s interim results for the half-year ended 30 June 2012 were announced on 30 August 2012 and are available on the Company’s website www.greshamhouse.com.

The Directors are aware of the following events or transactions which have occurred in the period from 1 July 2012 to the date of this Statement:-

(i) planning consent has been received for a 70,000 sq.ft. (6,500 sq.m) foodstore with 464 car park spaces and petrol filling station on 10 acres adjoining the town centre of Newton-Le-Willows;

(ii) a 47,000 sq.ft. unit at Southern Gateway has been let;

(iii) terms have been agreed with a tenant for the 143,000 sq.ft. of warehouse known as Northern Gateway, Knowsley;

(iv) the sale of Unit H4 at Deacon Park, Knowsley is now expected to exchange by the year end;

(v) at Vincent Lane, Dorking the sale of 1.2 acres to Lidl is now not likely to complete until December 2012 and the Persimmon appeal date has been set for 6 December 2012;

(vi) a decrease of 0.8% in the IPD UK Quarterly Property Index for capital growth for the three months ended 30 September 2012;

(vii) as at 30 September 2012 the value of the securities portfolio had increased by approximately 3.6% since 30 June 2012 compared with a increase in the FTSE All Share Index of 3.7%;

(viii) Memorial Holdings Limited has commenced trading at its Kemnal Park cemetery; and

(ix) the loan of £890,000 to SMU Investments Ltd has been repaid in full together with all accrued interest.

The Company has one class of share capital: ordinary shares of 25p each. There have been no changes in the issued share capital of the Company since 30 June 2012, which at today’s date, remains at 5,369,880 shares.

Financial Information

Investments - Properties

Investment properties are shown at fair value based on current use. All investment properties were valued by Jones Lang LaSalle Limited, Chartered Surveyors, as at 31 December 2011 at a combined total of £27,443,000. These external valuations were carried out on the basis of market value in accordance with the latest edition of the Valuation Standards published by the Royal Institution of Chartered Surveyors. As per our normal policy, no independent property valuations have been undertaken since the last year end.

Rental income on the property portfolio for the three months ended 30 September 2012 was £266,000 compared with £520,000 for the half-year ended 30 June 2012. The amount of vacant space has decreased by 74,708 sq. ft. to 275,216 sq. ft. as at 30 September 2012 principally as a result of the letting of space at Southern Gateway and the demolition of a further unit at Newton-le-Willows.

Investments - Securities

  As at 30.09.2012

Unaudited

  As at 30.06.2012

Unaudited

£’000 £’000
Listed securities – on the London Stock Exchange 1,133 1,133
Securities traded on AIM 1,836 1,555
Securities dealt in on PLUS Market 83 102
Unlisted securities 4,446 4,928
     
TOTAL 7,498   7,718

Top Ten Investments at 30 September 2012

 

Market Value

  % of portfolio
£’000s
Memorial Holdings Ltd # 2,200 29.3
SpaceandPeople plc* 1,526 20.4
Standard Chartered Bank 6% bond‡ 1,039 13.9
Attila (BR) Ltd Loan notes# 916 12.2
AudioGravity Holdings Ltd # 590 7.9
Kemnal Investments Ltd Loan notes# 398 5.3
Avesco Group plc * 310 4.1
Xceed Imaging Ltd# 200 2.7
Lancashire Tea Ltd Loan Notes# 100 1.3
Royal and Sun Alliance 7 3/8% preference‡ 94 1.2
     
7,373   98.3
‡UK Listed
* AIM and PLUS Market Traded Securities
# Unlisted Securities

Securities have been valued on the same basis as that adopted in the Group’s Consolidated Financial Statements for the year ended 31 December 2011.

Sector analysis as at 30 September 2012

  % of securities portfolio
Property investment 42
Media 27
Financial 21
Engineering 9
Foods 1
 
100

Comparative movements

  30.09.2012

Unaudited

  30.06.2012

Unaudited

  % change

Basic net asset value per ordinary share

N/A

432.0p

N/A

Share price (pence) 312.50 287.50 8.7
FTSE All Share index 2,998.86 2,891.45 3.7

Further information on the Company and Group, including a copy of this Statement, can be found at www.greshamhouse.com.

D Lucie-Smith
Chief Executive Officer

9 November 2012

Short Name: Gresham House plc
Category Code: IMS
Sequence Number: 351360
Time of Receipt (offset from UTC): 20121109T111458+0000

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