REG - Onward Opportunities - Full-Year Update

Onward OpportunitiesAnnouncement

14/01/2025 07:00

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RNS Number : 1671T  Onward Opportunities Limited  14 January 2025

14 January 2025

 

Onward Opportunities Limited

("Onward Opportunities" or the "Company")

 

Full-Year Update

 

Onward Opportunities Limited (AIM: ONWD), the investment company targeting
opportunities in UK smaller companies, provides an update regarding the
12-month period ended 31 December 2024 ("FY24"), ahead of publication of the
Company's audited FY24 results expected in March 2025.

 

Company Update

 

·     The Company's 12-month Total Shareholder Return ("TSR") to 9 January
2025 (the last practicable date) of +38.1% was market leading, ranking 1(st)
of the Association of Investment Companies ("AIC") UK Smaller Company peer
group. For reference Onward Opportunities also materially outperformed all
funds (Unit Trusts & OEICs) in the IA UK Smaller Companies table.

 

·    Net Asset Value ("NAV") was 131.37 pence per share at 31 December
2024, equating to a total return of +23.4% over 12 months, creating another
encouraging period of NAV outperformance:

 

o  Significantly outperformed the UK AIM All Share index Total Return by
+27.3% (UK AIM All Share: -3.9%)

 

o  NAV outperformance amongst peers in the AIC UK Smaller Companies sector
(3rd in Sector)

 

o  Significantly outperformed the Company's stated target returns of 15% per
annum

 

·     Top decile NAV performance of +37.3% since launch 21 months ago (2nd
in Sector), furthering the Company's track record of outperformance versus its
target returns and comparator indices.

 

·     Completed five additional capital raises during FY24, each with an
issue price at a premium to the NAV at the time. These totalled £9.3m and
meant the Company was one of the most successful investment companies and
trusts at raising capital on the London Stock Exchange.

 

Portfolio Update

 

·     Top five contributors to returns in the period were Windward
(+£2.13m), MPAC Group (+£1.72m), Synectics (+£1.0m), Transense Technologies
(+£786k), and Alumasc (+£495k).

 

·    Upon completion of the formal offer for Windward the estimated
realised return on investment is expected to be 134.5% IRR, 2.5x MM,
underscoring the potential of the investment strategy.

 

·    Only three noteworthy detractors from returns with investment losses
at RBG Holdings (-£1.3m), where the investment was fully exited; Comptoir
(-£336k) and Ebiquity (-£428k).

 

 

Laurence Hulse, Lead Fund Manager, said:

 

"Onward Opportunities has successfully navigated a tough backdrop and
outperformed tougher competition this year. The team is delighted to have
delivered a NAV return of +23.4% for 2024 and these results add to the track
record of significant market outperformance that we have been building since
launching in March 2023. To have delivered this year both in terms of our
investment performance and the growth of the fund, provides the best possible
way by which to thank our supportive and expanding shareholder base.

 

There have been some fantastic achievements by the management teams we have
backed, and our thanks must also go to them. The takeover approach for
Windward at 215p/share within 18-months of our initial investment and
subsequent purchases, between 45p and 120p, is a great example of the
outstanding value and hidden gems on the public markets which we work hard to
identify. Onwards."

 

For further information, please contact:

 

 Onward Opportunities Limited                                            Tel: +44 (0) 203 5303 600

 Andrew Henton, Chairman                                                 ool@apexgroup.com

 Dowgate Wealth Limited (Portfolio Manager)                              Tel: +44 (0) 203 5303 600

 Laurence Hulse, Investment Director                                     ool@apexgroup.com

 SEC Newgate (Financial Communications)                                  Tel: +44 (0) 203 757 6880

 Bob Huxford / Molly Gretton                                             onward@secnewgate.co.uk

 Apex Administration (Guernsey) Limited (Company Secretary)              Tel: +44 (0) 203 5303 600

 James Taylor / Tanya Kinnear                                            ool@apexgroup.com

 Cavendish Capital Markets Limited (Nominated Adviser and Joint Broker)  Tel: +44 (0)20 7220 0500

 Ben Jeynes / Camilla Hume - Corporate Finance

 Michael Johnson / Chris West / Charlie Combe - Sales and ECM

 Dowgate Capital Limited (Joint Broker)                                  Tel: +44 (0)12 9351 7744

 Russell Cook / Nicholas Chambers

About Onward Opportunities

 

Onward Opportunities is an investment company focussed on the UK small cap
market, led by an Investment Committee and Lead Manager with over 160 years'
combined experience.

Onward has a clear investment strategy, to capitalise on the significant
valuation anomalies arising from a lack of investor information on UK small
and micro-cap stocks. Through its analysis, experience and deep understanding
of the UK Small Cap market, Onward Opportunities is able to identify these
anomalies, enabling investment in opportunities with superior potential
upside.

The investment philosophy is to focus on companies with competitive advantage,
strong management track record, balance sheet asset backing, attractive cash
flow potential and visibility of earnings. Investee companies will also have
scope for material potential valuation upside that can be delivered from
catalysing strategic, operational or management initiatives. Onward
Opportunities helps its portfolio companies realise this potential through
active engagement.

Since IPO in March 2023, the investment strategy and philosophy have proven
successful, consistently outperforming the AIM All Share Index. Onward
Opportunities' investment objective is to deliver a return on investments of
at least 2.0x invested capital over a three-to-five-year hold period,
aggregating into a total annualised return of at least 15% per annum.

 

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