Interim Management Statement


GRESHAM HOUSE plc (“the Company”)

Interim Management Statement (Unaudited)


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 31 March 2014 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 2011 annual general meeting, its investment objective and policy is the orderly realisation of the Group’s assets over a period of approximately two years with a view to returning capital to shareholders thereafter. Given, in particular, the fragile state of the property market in 2011 and 2012, this period of time has been greater than originally anticipated.

Material Events and Transactions

The Company’s final results for the year ended 31 December 2013 were announced on 29 April 2014 and are available on the Company’s website

The Directors are aware of the following material events or transactions which have occurred in the period from 1 January 2014 to the date of this Statement:-

(i) contracts were exchanged with Persimmon Homes Limited on 29 April 2014 for the sale of 20 acres gross of the 28 acre site at Newton-le-Willows for £7.43m in cash, plus overage, conditional upon Persimmon obtaining satisfactory detailed planning permission. Outline planning consent for residential use has already been granted;

(ii) the sale of the 6 acre development site in Knowsley for £416k was completed on 15 May 2014;

(iii) the value of the investment in SpaceandPeople plc has fallen from £2,815,312 as at 31 March 2014 to £1,237,500 as at 19 May 2014 as a result of a profits warning announced in April 2014;

(iv) net borrowings have increased by £491,000 from £(2,121,000) at year end to £(2,612,000) as at 31 March 2014;

(v) an increase of 2.2% in the IPD UK Quarterly Property Index for Capital Growth for the three months ended 31 March 2014; and

(vi) the resignation of Derek Lucie-Smith, Chief Executive, with effect from 25 April 2014 due to ill health.

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 31 December 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 property investments were valued by Jones Lang LaSalle Limited, Chartered Surveyors, as at 31 December 2013 at a combined total of £16,700,000. 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. The directors do not consider that there has been any material change in the value of these properties since year end.

Rental income on the property portfolio for the three months ended 31 March 2014 was £238,000 compared with £999,000 for the year ended 31 December 2013. As stated in the Report of the Directors contained within the financial statements for the year ended 31 December 2013, the amount of vacant space as at 31 December 2013 was 157,657 sq. ft. representing approximately 35% of the total available. There has been no significant change to these numbers since the year end.

Investments - Securities

  As at 31.03.2014


  As at 31.12.2013


£’000 £’000
Listed securities – on the London Stock Exchange 98 93
Securities dealt in under AIM 2,815 2,805
Securities dealt in under ISDX 82 76
Unlisted securities 2,185 2,185
TOTAL 5,180 5,159

Investments at 31 March 2014


Market Value

      % of portfolio    
SpaceandPeople plc*

Attila (BR) Ltd Loan notes#





Memorial Holdings Limited # 610 11.8
Kemnal Investments Ltd Loan notes# 466 9.0
AudioGravity Holdings Limited # 148 2.9
Royal & Sun Alliance plc preference shares‡ 98 1.9
Wheelsure Holdings plc † 81 1.6
Lancashire Tea Limited Loan# 15 0.3
Northgate plc preference shares# 12 0.2
5,180 100.0
‡ UK Listed
* AIM traded securities

† ISDX 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 2013.

Sector analysis as at 31 March 2014

        % of securities portfolio
Property investment 38.8
Media & photography 54.4




Others 0.5

Comparative movements





      % change    

Basic net asset value per ordinary share




Share price (pence) 318.50 312.50 1.9
FTSE All Share index 3,555.59 3,609.63 (1.5)

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

B J Hallett

21 May 2014

Short Name: Gresham House plc
Category Code: IMS
Sequence Number: 418661
Time of Receipt (offset from UTC): 20140521T150736+0100


Gresham House plc


Gresham House plc