REG - Oakley Capital Inv. - Trading Statement

Oakley Capital InvestmentsAnnouncement

24/01/2024 07:15

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RNS Number : 6857A  Oakley Capital Investments Limited  24 January 2024

 

24 January 2024

 

 

 

Oakley Capital Investments Limited

 

Trading update for the year ended 31 December 2023

 

Oakley Capital Investments Limited(1) ("OCI" or the "Company") today
announces its trading update for the year ended 31 December 2023. OCI is a
listed investment company providing consistent, long-term returns in excess of
the FTSE All-Share Index by investing in funds managed by Oakley
Capital(2) ("Oakley").

The Oakley Funds(3) invest primarily in unquoted, profitable, pan-European
businesses with recurring revenues, and across four focus sectors. Oakley's
origination capabilities combined with proven value creation drivers help
management teams accelerate growth and produce consistently superior returns
for investors.  

Highlights for the year ended 31 December 2023

 ●    Net Asset Value ("NAV") per share of 684 pence and NAV of £1,207 million
 ●    Total NAV return per share, including dividends, of 4% (+27 pence)
 ●    Total shareholder return of 18%
 ●    Investments of £175 million and share of proceeds of £266 million
 ●    Year-end cash and available debt of £382 million
 ●    Outstanding commitments of £1,017 million

NAV growth

The Company's unaudited NAV as at 31 December 2023 was £1,207 million, which
represents a NAV per share of 684 pence, based on portfolio valuations at
year-end. The total NAV per share return including dividends was 4% (+27
pence) since 31 December 2022 and 1% (+8 pence) since 30 September 2023. Of
the realised and unrealised portfolio uplift in the year, 65% of the increase
was driven by EBITDA growth, and 35% as a result of multiple expansion. The
largest contributions came from IU Group, which expanded enrolments 33% to
125,000 students during the year; North Sails, which generated revenue and
profit growth led by the sails, masts and apparel business, ahead of target;
and online property portal idealista, which posted strong results across its
core markets in Southern Europe.

Portfolio company performance

In 2023, the underlying companies in OCI's portfolio continued to trade well
in an uncertain macroeconomic environment, thanks to their resilient,
asset-light business models, usually with strong disruptive market positions
and predictable, recurring cash flows. Companies across all of Oakley's four
sectors, Technology, Consumer, Education and Business Services, contributed to
valuation gains.

Proceeds

OCI's look-through share of proceeds from exits and refinancings during the
year totalled £266 million, consisting of:

 ●    Realisations - £240 million - IU Group exit at gross return of 85% IRR
 ●    Refinancings - £26 million - idealista and Cegid completed debt refinancings

Investments

OCI made a total look-through investment of £175 million which included:

 ●    New platform deals - £50 million - Thomas's London Day Schools, Liberty
      Dental Group and WebCentral
 ●    Reinvestment - £66 million - IU Group, benefitting from the next phase of the
      company's growth, focused on leveraging AI and internationalisation
 ●    Follow-on investments - £35 million - in addition to vLex's acquisition of
      Fastcase and 7NXT's acquisition of 7Mind, 22 bolt-on acquisitions were
      completed by portfolio companies
 ●    Venture investments - £24 million - investments in Oakley Touring Venture
      Fund and PROfounders III portfolio companies.

Post balance-sheet events

 ●    Further new platform deals - up to c. £100 million - investments in Alerce
      and Steer Automotive Group. Both transactions are expected to complete within
      1H 2024.

Cash & commitments

OCI's total liquidity as at 31 December 2023 was £382 million, comprising
£207 million of cash on the balance sheet and £175 million in undrawn credit
facilities. OCI made a total commitment of $100 million in Oakley Touring
Venture Fund, which focuses on AI-powered software companies, and €190
million in Origin II, taking the total outstanding commitments to the Oakley
Funds to £1,017 million as at 31 December 2023. This will be deployed into
new investments over the next five years. The Board closely monitors
anticipated fund drawdowns and projected liquidity and will continue its
long-term commitment to share buybacks when appropriate.

The Company expects to report its audited annual results for 2023 on 14 March
2024.

- ends -

 

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/.
(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, Oakley Capital Origin Fund and Oakley Capital Origin II, 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.

For more information on the Oakley Fund strategies in which OCI invests,
please click here.
(https://www.oakleycapitalinvestments.com/what-we-invest-in/investment-strategies/)

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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