Gresham House

“Certain pockets of the UK high street have been well insulated and delivered strong operational performance, such as companies on the right side of structural growth drivers or those with resilient propositions and defensive characteristics” 💬   Brendan Gulston, Co-Fund Manager of the WS Gresham House UK Multi Cap Income Fund, comments on the UK companies that remain resilient despite macroeconomic trends and low #valuations, in an article for Shares Magazine.   He highlights low ticket experiential leisure companies including tenpin bowling operator Hollywood Bowl Group Plc and the leading fishing equipment retailer Angling Direct PLC, both of which are taking wallet share from other larger business models.   Value-driven sectors, such as leading value variety goods retailer B&M Retail, have also continued to deliver strong operational performance with growth in average basket sizes and ongoing store rollout.   https://lnkd.in/e6yTX5CH   #ukequity #smallcap | Capital at risk. Not an investment recommendation. Opinions are the fund managers own and not necessarily those of Gresham House. 

Wishing all our clients, partners and stakeholders a very happy and prosperous 2025 🎆

“We pursue healthcare services opportunities that are at or close to profitability and can deliver a lower-risk growth trajectory supporting more consistent investment returns” 🩺💬   Ken Wotton, Manager of the Baronsmead VCTs, highlights what he looks for in healthcare portfolio companies in an article for This Is Money.   The #healthcare services sector focuses on developing and delivering technology and products to drug development firms to aid them in their discovery process, and often accelerates or enhances the expensive process of delivering new drugs to the market.   The area is also attractive as it often benefits from structural tailwinds in spend but has a lower risk business model than other parts of the sector.    https://lnkd.in/dbmr3zXQ   #technology #investment | Capital at risk. Not an investment recommendation. 

Merry Christmas 🎄 Season’s greetings to all our clients, investors and followers. We look forward to working with you all in 2025. Also a big thank you to our charity partners, RSBC (Royal Society for Blind Children) and Campaign Against Living Miserably who we have been delighted to support this year.

Powering the energy transition 🔋☀️🍃 Renewables, including wind, solar and battery energy storage have a vital role to play in the energy transition to provide cleaner, cheaper energy as well as helping to build energy security for the country. It also offers investors with compelling investment opportunities. #energytransition #windenergy | Capital at risk. Not an investment recommendation.

Christmas in Cleish 🎄   We are delighted to have donated the Christmas tree for the village of Cleish in Scotland.   The tree is a Sitka Spruce and was supplied from Cleish & Craigencat forest which is managed by our forestry team.   The community gathered at the beginning of December for a festive light switch on ceremony which was attended by Father Christmas himself!   #christmastree #forestry #sitkaspruce 

“Why would you put money into the US at an all-time high when you could put it into the UK at half the price?” 💬   Ken Wotton, Fund Manager, WS Gresham House UK Smaller Companies Fund, comments on the outlook for the UK market in an article for Trustnet.   Despite the underperformance in the UK market in comparison to its US counterpart, the opportunity to invest in undervalued UK companies that have fundamentally strong business models is a missed opportunity for many.   Ken highlights XPS Self Invested Pensions as an attractive UK-listed opportunity that combines a significant runway for growth with solid fundamentals and cash flow.   https://lnkd.in/eFmNqw_S   #smallcap #ukequities #valuations | Capital at risk. Not an investment recommendation. Opinions are the fund managers own and not necessarily those of Gresham House. 

“We like businesses with strong balance sheets because they can withstand shocks - and that same principle works for the consumer” 💬   Cassie Herlihy, Associate Director, Public Equity, highlights why she favours small and mid-cap companies as the UK bucks the borrowing trend with household debt falling and rising wage growth, in the December addition of the Portfolio Adviser magazine.   Despite a favourable backdrop, UK #consumers have been reluctant to spend in any meaningful way, and although what will trigger spending remains elusive, all the fundamentals are pointing in the right direction.   When the tides do turn, these strong foundations are set to benefit UK small and mid-cap businesses due to their high exposure to the domestic UK market.   https://lnkd.in/e2Pqa-uB (article on pg. 13)   #ukequities #smallcap #midcap | Capital at risk. Not an investment recommendation. Opinions are the speakers own and not necessarily those of Gresham House. 

“Carve-outs frequently offer an excellent opportunity to unlock value without necessitating the sale of the entire business. They can also lead to a re-rating of an undervalued company, with the cash proceeds reinvested for growth, used to reduce debt, or returned to shareholders.” 💬   Cassie Herlihy, Associate Director, Public Equity, discusses how the value in UK corporates can be unlocked through carve-outs in her piece for Trustnet. In 2024, there have been more than 20 significant carve-outs from UK listed companies. Most of these have been sold at #valuation multiples higher than the overall group’s valuation multiple, with some even exceeding the entire market cap of the parent company.   Cassie highlights specialist data and analytics company Ascential which split and sold its three distinct high-quality business units successfully in 2024, as well as consultancy firm Ricardo and document management service Restore, which are both appealing acquisition targets for 2025.   https://lnkd.in/evWzAVye   #ukequities #carveouts | Capital at risk. Not an investment recommendation. Opinions are the speakers own and not necessarily those of Gresham House.

Google goes back to nature 🌳   As the global megatrend of #decarbonisation continues Google has unveiled its first ever mass timber office building in California. The cutting-edge, 182,500 sq. ft., five-story structure is made almost exclusively of pieces of layered and laminated wood and there are hopes it could reshape the future of sustainable architecture for the workplace.   The structure is expected to have 96% less carbon emissions over time versus a steel office structure of equivalent size, due to timber’s ability to absorb and store carbon. Mass timber can also be stronger than steel and provides better seismic resistance due to increased strength.   The construction time for #masstimber buildings is also much shorter compared to traditional methods as the #timber is prefabricated in a factory and then assembled on site. Google's office took only 14 weeks to construct after the foundations were poured.   https://lnkd.in/exRCv8Ep   #forestry