TIDMOCI
RNS Number : 3732M
Oakley Capital Investments Limited
14 September 2023
14 September 2023
Oakley Capital Investments Limited
Interim results for the Six Months ended 30 June 2023
Oakley Capital Investments Limited(1) ("OCI" or the "Company")
is pleased to announce its interim results for the six months ended
30 June 2023. OCI is a listed investment company providing
consistent, long-term returns in excess of the FTSE All-Share Index
by investing in the Funds managed by Oakley Capital(2) ("Oakley"),
thereby capturing the outperformance of a leading private equity
manager.
The Oakley Funds(3) invest primarily in unquoted, profitable,
pan-European businesses with recurring revenues, and across four
sectors: Technology, Consumer, Education and Business Services.
Oakley's origination capabilities combined with proven value
creation drivers help management teams accelerate growth and
produce consistently superior returns for investors.
Resilient NAV and strengthened balance sheet
Highlights for the six months ended 30 June 2023
-- Net Asset Value ("NAV") per share of 663 pence and NAV of GBP1,169 million
-- Total NAV return per share, including dividends, of 0.5% since 31 December 2022 (+3 pence)
-- Total shareholder return of 5.3%
-- Additional investments made of GBP96 million and share of proceeds of GBP240 million
-- Net cash of GBP248 million
-- Total outstanding Oakley Fund commitments of GBP893 million
-- Undrawn revolving credit facility extended and increased to GBP175 million post-period end
-- Half-year dividend of 2.25 pence to be paid on 20 October
2023 to shareholders on the register on or before 21 September
2023
Portfolio highlights
-- Average portfolio company year-on-year EBITDA growth of 21% (FY2022: 22%)
-- Average portfolio company valuation multiple (EV/EBITDA) of 16.9x (FY2022: 15.9x)
-- Average net debt/EBITDA ratio of 4.0x (FY2022: 4.3x)
-- The key drivers of NAV were:
o Portfolio companies (+17 pence): valuation gains in the
underlying investments, with Idealista and Time Out being the
largest contributors
o Foreign exchange impact (-15 pence): 3% change in EUR:GBP
Portfolio overview
A resilient portfolio of tech-enabled businesses continued to
perform well:
-- Growth - an average 21% organic EBITDA growth demonstrates
the ability of a largely digitally disruptive portfolio to take
market share, countering the impact of macro-economic weakness
-- Valuation - an increase in the average valuation multiple to
16.9x reflects the portfolio activity in the period, leading to a
greater weighting towards the higher rated Technology sector. The
modest increase in asset value reflects the Company's cautious
approach to trading outlook and valuation multiples and the fact
that half of the NAV was not subject to change in the period. This
is the result of approximately 50% of the asset value being held in
cash, or investments that were valued based upon a transaction in
the last twelve months
-- Leverage - a fall in average net debt/EBITDA to 4.0x
underlines the portfolio company earnings growth and Oakley's
prudent approach to leverage. Of realised returns to date only 1%
has been attributable to the use of debt, in contrast to organic
earnings growth which has accounted for 65%
Proceeds
OCI's share of proceeds from realisations totalled GBP240
million. The primary contribution was Fund III's disposal of IU
Group, the largest and fastest growing university in Germany, and a
global leader in education technology.
Investments
During the period, OCI made a total look-through investment of
GBP96 million comprising:
-- IU Group (Fund V) - GBP66 million - Reinvestment to benefit
from the next phase of the Group's growth, focusing on accelerated
internationalisation, to further its vision of democratising
education
-- Thomas's London Day Schools (Fund IV) - GBP14 million - a top
rated group of co-educational independent schools in London
-- vLex (Origin Fund) - GBP7 million - bolt-on acquisition of
Fastcase, a leading US intelligence business, to form the world's
largest law firm subscriber base
-- Affinitas Education (Fund IV) - GBP2 million - bolt-on
acquisition of XIC, a single-site school in Spain, which brings the
total group to 12 schools, educating more than 10,000 students
-- OCI also made GBP1 million of look-through investments in
PROfounders III portfolio companies during the period.
Cash & commitments
A significant growth in liquid resources in the period:
-- Cash - OCI's net cash grew 126% to GBP248 million as at 30 June 2023
-- Credit facility - post-period end, OCI renewed and expanded
its revolving credit facility, raising total committed lending to
GBP175 million for a two-year term. As at 13 September 2023, the
facility was undrawn
-- Commitments - following OCI's $100 million commitment to
Oakley Touring Venture Fund during the period, OCI's total
outstanding commitments to the Oakley Funds amounted to GBP893
million. This is expected to be deployed into new investments over
the next five years
Outlook
The outlook for the global economy will remain uncertain in the
period ahead, which will present challenges, but also opportunity.
Oakley has decades of experience investing through economic cycles,
and Oakley's active management, and proven value creation
strategies are expected to continue driving NAV growth:
-- The portfolio of 27 European businesses continues to profit
from long-term megatrends including the shift to online solutions
by businesses and consumers, and the demand for mission-critical,
tech-enabled services
-- Oakley continues to demonstrate its forward thinking and
innovation, exploring new technologies such as AI and developing
new sectors such as Business Services
-- Enhanced balance sheet liquidity to take advantage of a
significant period of investment opportunities
Caroline Foulger, Chair of Oakley Capital Investments Limited,
commented:
"We are pleased to report the continued performance of the
Oakley Funds and their portfolio companies, which underpinned OCI's
robust asset value in the first half of the year. In contrast to
the wider market, Oakley has remained active with a high level of
investee company M&A and a meaningful realisation, the proceeds
from which have significantly strengthened the OCI balance
sheet.
Most importantly OCI has delivered one of the sector's highest
shareholder returns over the last 12 months. The Company is well
positioned to continue this performance as we enter a period that
is anticipated to present a high level of attractive investment
opportunities for the Oakley Funds."
Peter Dubens, Managing Partner of Oakley Capital Limited,
commented:
"The perceived negative impacts of macro-economic turbulence and
intimidating new technologies like generative AI are dominating
headlines, however we see significant opportunities ahead in both
of these themes.
The threats presented by both are undoubted. But entrepreneurs
often thrive, and a partnership with Oakley is most valued, during
periods of disruption to the established order.
With our network of pioneering founders, dry powder ready to
deploy and new strategies in place such as the AI focused Oakley
Touring Venture Fund, we are well positioned to take advantage of a
rapidly changing marketplace."
The unaudited Interim Report and Accounts are available on the
Company's website at
https://www.oakleycapitalinvestments.com/investor-centre/results-and-reports/
A video overview of the 6-month performance is also available
here
https://www.oakleycapitalinvestments.com/news-and-media/videos/
The Company's Q3 2023 trading update is expected to be released
on 26 October 2023.
- ends -
Results presentation
A live presentation of the results, delivered by Oakley Capital
Partner Steven Tredget, will take place at 9:00am today, Thursday
14 September 2023 . The presentation will be available to view via
video webcast at the following link:
https://www.investis-live.com/oakley-capital/64dc97390120c60d0008b333/gdrt
For further information please contact:
Oakley Capital Limited
+44 20 7766 6900
Steven Tredget
Greenbrook Communications Limited
+44 20 7952 2000
Rob White / Michael Russell
Liberum Capital Limited (Financial Adviser & Broker)
+44 20 3100 2000
Chris Clarke / Darren Vickers / Owen Matthews
Notes:
LEI Number: 213800KW6MZUK12CQ815
(1) About Oakley Capital Investments Limited ("OCI")
OCI is a Specialist Fund Segment ("SFS") traded investment
vehicle that aims to provide shareholders with consistent long-term
capital growth in excess of the FTSE All-Share Index by providing
liquid access to private equity returns through investment in the
Oakley Funds.
A video introduction to OCI is available at
https://oakleycapitalinvestments.com/videos/
The contents of the OCI website are not incorporated into, and
do not form part of, this announcement.
(2) Oakley Capital, the Investment Adviser
Founded in 2002, Oakley Capital Limited has demonstrated the
repeated ability to source attractive growth assets at attractive
prices. To do this it relies on its sector and regional expertise,
its ability to tackle transaction complexity and its deal
generating entrepreneur network.
(3) The Oakley Funds
Oakley Capital Private Equity L.P. and its successor funds,
Oakley Capital Private Equity II, Oakley Capital Private Equity
III, Oakley Capital IV, Oakley Capital V and Oakley Capital Origin
Fund and are unlisted lower-mid to mid-market private equity funds
that aim to provide investors with significant long-term capital
appreciation. The investment strategy of the Funds is to focus on
buy-out opportunities in industries with the potential for growth,
consolidation and performance improvement. The Oakley family of
funds also includes Oakley PROfounders Fund III and Oakley Touring
Venture Fund, which are venture capital funds focused on
investments in entrepreneur-led, disruptive, technology led
companies.
Important information
Specialist Fund Segment securities are not admitted to the
Official List of the Financial Conduct Authority. Therefore, the
Company has not been required to satisfy the eligibility criteria
for admission to listing on the Official List and is not required
to comply with the Financial Conduct Authority's Listing Rules.
The Specialist Fund Segment is intended for institutional,
professional, professionally advised and knowledgeable investors
who understand, or who have been advised of, the potential risk
from investing in companies admitted to the Specialist Fund
Segment.
This announcement may include "forward-looking statements".
These forward-looking statements are statements regarding the
Company's objectives, intentions, beliefs or current expectations
with respect to, amongst other things, the Company's financial
position, business strategy, results of operations, liquidity,
prospects and growth. Forward-looking statements are subject to
risks and uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future. Accordingly
the Company's actual future financial results, operational
performance and achievements may differ materially from those
expressed in, or implied by, the statements. Given these
uncertainties, prospective investors are cautioned not to place any
undue reliance on such forward-looking statements, which speak only
as at the date of this announcement. The Company expressly
disclaims any obligation or undertaking to update or revise any
forward-looking statements contained herein to reflect actual
results or any change in the Company's expectations with regard to
them or any change in events, conditions or circumstances on which
any such statements are based unless required to do so by the
Financial Services and Markets Act 2000, the Listing Rules or
Prospectus Regulation Rules of the Financial Conduct Authority or
other applicable laws, regulations or rules.
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END
IR GPUPCBUPWGBW
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