- Gresham House's revenue increased 254% to £1.7 million in the six months to the end of June with assets under management rising to £359m at the end of August.

Income for the six months to 30 June 2016 of £1,706k (2015: £482k) is the first reporting period with management fees from two established divisions. This income includes management fees from Gresham House Forestry of £928k (2015: nil) and GHS of £251k (2015: nil), demonstrating the business now being established as a specialist asset manager.

Rental income primarily from the Southern Gateway site in Speke earned £370k in the period (2015: £329k) as a result of the team carefully managing the site to maximise value for shareholders. More detail can be found in the strategic update section.

Administration overheads of £2,911k (2015: £639k) continue to be in line with expectations as we invest in people, processes and distribution to build the asset management business. Staff costs were £1,479k (2015: £367k) in the period, with other costs and professional fees making up £809k (2015: £271k). Administration overheads also include amortisation of £594k (2015: nil) relating to the intangible assets acquired as part of the Aitchesse transaction and depreciation of £29k (2015: £1k).

Finance costs increased to £155k (2015: £73k) driven by the Kleinwort Benson facility being fully drawn in April 2016. We drew £7.00 million under this facility and used it to repay the existing Co-op facility of £2.85 million as well as the £677k short-term loan notes issued in connection with the acquisition of Aitchesse.

The remainder of the legacy portfolio has had a relatively small impact on the period. The fair value movement in investments was an unrealised loss of £29k (2015: £655k gain) and realised gains from the legacy portfolio were £14k (2015: nil). The fair value reduction in investment properties of £154k relates to the Southern Gateway site, where we have invested in capital expenditure to improve future revenues, although there is no current increase in the valuation as at 30 June 2016 of £7.65 million from 31 December 2015.

The loss after tax for the six-month period to 30 June 2016 is £1,658k (2015: £52k profit). However, the adjusted loss before tax for the six-month period to 30 June 2016 was £1,035k (2015: £63k profit). This represents the Group's performance before the deduction of amortisation, depreciation and exceptional costs, which primarily relate to transaction activity, see note 7 for further details. We view the adjusted (loss)/profit before tax as the best measure of performance while the Group continues to grow.

The group also reports significant progress made post-reporting period:

- Gresham House Asset Management ("GHAM") appointed investment manager to LMS Capital plc ("LMS") on 16 August 2016 with AUM of £86 million at 31 August 2016

- Gresham House Strategic Public Equity LP ("SPE LP") launched with committed AUM of £24 million at first close on 15 August 2016

- Strong first full year performance of Gresham House Strategic plc ("GHS") with NAV growing by 8.9% to 31 August 2016 from 14 August 2015, outperforming the FTSE Small-Cap Index (ex. Investment Trusts) by 6.0%

- Expect to launch the Gresham House Forestry Fund LP before the end of this year

- Continuing to see strong pipeline for organic and acquisition growth opportunities to create further shareholder value

Chief executive Anthony Dalwood said: "Gresham House continues to build goodwill and awareness as a specialist asset manager with the year to date showing achievement of significant milestones including AUM and revenue growth. We expect this to continue as the Group has invested in a platform to generate scale.

"The focus remains on higher margin and alternative asset management product, which can also generate long term performance fees. These asset classes continue to see increased allocation from pension funds, institutional investors, family offices and high-net-worth individuals. Opportunities for Gresham House to grow organically and through further acquisitions are evident."

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