REG - Onward Opportunities - Half-year Report
08/09/2025 07:00
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RNS Number : 2623Y Onward Opportunities Limited 08 September 2025
The information contained within this announcement is deemed by the Company to
constitute inside information pursuant to Article 7 of EU Regulation 596/2014
as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 as amended. Upon the publication of this announcement
via a Regulatory Information Service, this inside information is now
considered to be in the public domain.
Onward Opportunities Limited
("Onward Opportunities" or the "Company")
Interim Results
Onward Opportunities Limited (AIM: ONWD), the investment company targeting
opportunities in smaller companies within the UK, today reports its unaudited
interim results for the six-month period ended 30 June 2025.
Highlights
Highlights in the reporting period to 30 June 2025 include:
Company Update
· 30 June 2025 net asset value ("NAV") per share of 128.41 pence,
equating to a total return of +10.4% over the 12-month period from 30 June
2024 (NAV: 116.32p), maintaining the encouraging track record of NAV
outperformance since launch during a period of significant market volatility
· 27-month NAV per share return since inception to 30 June 2025 of
+34.2%:
o Outperformed the UK AIM All Share Index total return by +34.1%
o Top quartile sector performance since launch with the Portfolio Manager
ranked second in the Citywire UK Smaller Companies IT rankings
o Delivered the Company's stated target returns of >15% IRR during the
period
· Successfully completed two capital raises year to date, raising
additional proceeds in excess of £4.1m from new and existing investors,
making the Company one of the fastest growing smaller companies funds in the
UK and one of the few investment companies to continue raising capital
· Cash balances tactically built up to c.22% during the first quarter as
inflows and realisations were built up, with the majority then profitably
invested during April 2025
· The Portfolio Manager has been nominated for Fund Manager of the Year
at both the City AM Awards 2025 and the PLC Awards, in recognition of the
Company's strong performance
Portfolio Update
· Proceeds from the takeover of Windward received, generating cash
profits of £2.4m, an IRR of 141.1% and a 2.5x multiple on invested
capital
· Significant progress at a number of holdings in spite of global
macroeconomic headwinds; Angling Direct (record trading), Likewise (record
trading), Venture Life Group (material disposal), The Mission
Group (material disposal), Frenkel Topping (indicative takeover
offer), Audioboom Group (record trading), Synectics (upgrades and contract
wins), Alumasc (international expansion). Performance detractors at MPAC
Group (US division slowdown since "liberation day"), Northcoders
(government contract uncertainty), REACT Group (profits warning)
· The depth of the investment pipeline is the strongest it has been since
inception, with a number of new core and nursery investments expected in
the third quarter. Recent new nursery holdings include Boku, Light Science
Technologies, Roadside Real Estate Holdings, Celebrus Technologies, E-energy
Group and Venture Life Group
Post period end highlights (1 July 2025 - 31 August 2025)
· 31 August 2025 NAV per share of 129.3 pence, a further NAV increase
of +0.7% in the two months since the period end to its all time highs,
extending the encouraging track record of NAV outperformance since launch
· Two nursery holdings promoted to the core portfolio following
Investment Committee discussion; Audioboom (increased to 8% NAV at 270p),
Likewise plc (increased to 8% NAV at 25p)
· Material operational progress announced at Angling Direct ("comfortably
in-line" trading), Pebble Beach Systems (strategy change and earnings
upgraded), Audioboom (rollout of videocasts and earnings upgraded)
· Mark Wharrier, former UK portfolio manager at Blackrock, Mercury &
Majedie, has joined the investment committee. Guy Micklethwaite has joined the
team from Odey Asset Management as an investment analyst to support pipeline
execution
Laurence Hulse, Lead Fund Manager, said:
"During the period, Onward successfully navigated its first market correction
since launch in 2023 as Trump's tariff turmoil took hold, providing a chance
for the resilience of the portfolio and discipline of the strategy to be
demonstrated. Cash balances had been patiently built up by the Manager at the
start of the year to over 20% and a disciplined approach meant liquid reserves
were held back during the first few months of volatility. These were then
deployed profitably during April, setting the portfolio up for recovery and
growth in the second half of the year, which has started strongly with the
fund's Net Asset Value returning to its all-time high in August; +35.1% since
we launched two years ago. Whilst the Company is sailing into the wind again
in 2025, we are confident in the portfolio's ability to tack through the
disruption, with several idiosyncratic return drivers emerging in both the
nursery holdings and core portfolio. Onwards."
Andrew Henton, Chairman, added:
"Despite unsettled markets and significant volatility, the Company has
continued to perform in line with expectations. This is a testament to the
diligence and insight of the Fund Manager, and the latency of the opportunity
in what remains an inefficient market for dynamic small company listed
shares."
ENDS
For further information, please contact:
Onward Opportunities Limited Tel: +44 (0)20 3416 9143
Andrew Henton, Chairman hello@dowgate.co.uk
Dowgate Wealth Limited (Portfolio Manager) Tel: +44 (0)20 3416 9143
Laurence Hulse, Investment Director hello@dowgate.co.uk
NSM Funds Limited (Company Secretary) Tel: +44 (0) 1481 743030
onwardopportunities@nsm.group
Cavendish Capital Markets Limited (Nominated Adviser and Joint Broker) Tel: +44 (0)20 7200 0500
Ben Jeynes / Hamish Waller
Dowgate Capital Limited (Joint Broker) Tel: +44 (0)20 3903 7715
Nicholas Chambers / Russell Cook
Interim Report and Unaudited Condensed Interim Financial Statements
For the period ended 30 June 2025
Highlights
Highlights in the reporting period to 30 June 2025 include:
Company Update
· 30 June 2025 net asset value ("NAV") per share of 128.41 pence,
equating to a total return of +10.4% over the 12-month period from 30 June
2024 (NAV: 116.32p), maintaining the encouraging track record of NAV
outperformance since launch during a period of significant market volatility
· 27-month NAV per share return since inception to 30 June 2025 of
+34.2%:
o Outperformed the UK AIM All Share Index total return by +34.1%
o Top quartile sector performance since launch with the Portfolio Manager
ranked second in the Citywire UK Smaller Companies IT rankings
o Delivered the Company's stated target returns of >15% IRR during the
period
· Successfully completed two capital raises year to date, raising
additional proceeds in excess of £4.1m from new and existing investors,
making the Company one of the fastest growing smaller companies funds in the
UK and one of the few investment companies to continue raising capital
· Cash balances tactically built up to c.22% during the first quarter
as inflows and realisations were built up, with the majority then
profitably invested during April 2025
· The Portfolio Manager has been nominated for Fund Manager of the Year
at both the City AM Awards 2025 and the PLC Awards, in recognition of the
Company's strong performance
Portfolio Update
· Proceeds from the takeover of Windward received, generating cash
profits of £2.4m, an IRR of 141.1% and a 2.5x multiple on invested
capital
· Significant progress at a number of holdings in spite of global
macroeconomic headwinds; Angling Direct (record trading), Likewise (record
trading), Venture Life Group (material disposal), The Mission
Group (material disposal), Frenkel Topping (indicative takeover
offer), Audioboom Group (record trading), Synectics (upgrades and contract
wins), Alumasc (international expansion). Performance detractors at MPAC
Group (US division slowdown since "liberation day"), Northcoders
(government contract uncertainty), REACT Group (profits warning)
· The depth of the investment pipeline is the strongest it has been
since inception, with a number of new core and nursery investments expected in
the third quarter. Recent new nursery holdings include Boku, Light Science
Technologies, Roadside Real Estate Holdings, Celebrus Technologies, E-energy
Group and Venture Life Group
Post period end highlights (1 July 2025 - 31 August 2025)
· 31 August 2025 NAV per share of 129.3 pence, a further NAV increase
of +0.7% in the two months since the period end to its all time highs,
extending the encouraging track record of NAV outperformance since launch
· Two nursery holdings promoted to the core portfolio following
Investment Committee discussion; Audioboom (increased to 8% NAV at 270p),
Likewise plc (increased to 8% NAV at 25p)
· Material operational progress announced at Angling Direct ("comfortably
in-line" trading), Pebble Beach Systems (strategy change and earnings
upgraded), Audioboom (rollout of videocasts and earnings upgraded)
· Mark Wharrier, former UK portfolio manager at Blackrock, Mercury &
Majedie, has joined the investment committee. Guy Micklethwaite has joined the
team from Odey Asset Management as an investment analyst to support pipeline
execution
Laurence Hulse, Lead Fund Manager, said:
"During the period, Onward successfully navigated its first market correction
since launch in 2023 as Trump's tariff turmoil took hold, providing a chance
for the resilience of the portfolio and discipline of the strategy to be
demonstrated. Cash balances had been patiently built up by the Manager at the
start of the year to over 20% and a disciplined approach meant liquid reserves
were held back during the first few months of volatility. These were then
deployed profitably during April, setting the portfolio up for recovery and
growth in the second half of the year, which has started strongly with the
fund's Net Asset Value returning to its all-time high in August; +35.1% since
we launched two years ago. Whilst the Company is sailing into the wind again
in 2025, we are confident in the portfolio's ability to tack through the
disruption, with several idiosyncratic return drivers emerging in both the
nursery holdings and core portfolio. Onwards."
Andrew Henton, Chairman, added:
"Despite unsettled markets and significant volatility, the Company has
continued to perform in line with expectations. This is a testament to the
diligence and insight of the Fund Manager, and the latency of the opportunity
in what remains an inefficient market for dynamic small company listed
shares."
Chairman's Statement
Onward Opportunities Limited ("ONWD" or "the Company") was admitted to trading
on the AIM market on 30 March 2023. As at 2 September 2025 (the latest
practicable date prior to the publication of this report) the net asset value
("NAV") 1 (#_ftn1) per ONWD ordinary share was 129.3p and the mid-market
closing share price of 129p on that same day, representing a total shareholder
return of 29% since admission to AIM.
Portfolio development
As at 4 September 2025, the portfolio was more than 95% invested, and the NAV
was up by 35.1% compared to the AIM market performance of -0.6%. Despite a
challenging start to the year, with first quarter performance affected by a
"risk off" sentiment triggered by President Trump's imposition of swingeing
tariffs, the second quarter saw a strong rebound amongst portfolio companies.
Encouragingly, this appears to be extending into the third quarter and the
NAV has recently reached its all-time high, having closed the first half near
to its high water mark. The Company was a top quartile performer over 12 and
24 months within its peer group.
Having launched in something of a financial storm during 2023, the Portfolio
Manager sought then actively to exploit circumstances and to buy names which
had, in the Manager's view, been indiscriminately over sold. Advantage was
thus taken of difficulty to build the initial portfolio. The change of
administration in the US, and uncertainty as to the ramifications of tariffs
and trade wars in an "America First" domestic agenda at the White House, have
since provided the first post launch "crisis" by which to test the portfolio
and investment strategy in adversity. The fact that the portfolio has proven
resilient in aggregate is testament to the thoughtful and analysis driven
selection of quality names whose underlying earnings have performed in line
with expectations - notwithstanding macroeconomic factors. The range of
identified value catalysts within different portfolio companies have proven to
be both pleasingly uncorrelated with each other, and also idiosyncratic. As a
Board, we believe this continues to augur well for the future.
More detail about individual contributors within the portfolio is contained
within the Portfolio Manager's report. One company highlighted therein is
Frenkel Topping, which is the subject of an offer which might see that company
taken private. Coming hot on the heels of the successful offer for Windward,
this is another data point providing evidence of the disparity in valuations
between AIM and strategic investors. If completed, the Frenkel Topping sale
will be of benefit to ONWD shareholders and celebrated as such, but it will be
a shame to see another dynamic growth company leave AIM because its board
believes its future development will be better served as an unlisted entity.
We can but hope that these transactions serve to highlight more widely the
value which is hidden in our target investible universe.
Corporate actions
Shortly after the end of the half year, ONWD successfully completed a further
fund raising of c.£2m, in so doing welcoming new investors to our shareholder
base. Taking the Company to a market capitalisation in excess of £50 million
will allow the shares to be marketed more widely to institutional investors,
and is a medium term objective for us as a Board. In the meantime, we will
continue opportunistically to tap the market when we identify sources of
demand for our shares. Not least, regular raises such as those we have been
conducting provide additional liquidity for the portfolio. The Portfolio
Manager not only continues to identify attractive opportunities for new
investment, but also selectively tries to top up existing positions when
attractive buying opportunities present themselves. Both are facilitated by
ad hoc capital raising.
Investor engagement
The Company held its first investor event in June, which was very well
attended by shareholders and other stakeholders. This presented an
opportunity, inter alia, for the Portfolio Manager to explain the investment
selection, and the subsequent engagement / oversight process, by means of a
live case study. It was also an opportunity for me personally, together with
my fellow board members, to meet with shareholders and to discuss the Company
and our ambitions for it. Feedback suggests that the event was well received
and we intend to make this a regular feature within the corporate calendar
going forwards. Details of such events will be communicated via RNS in
advance.
In closing, the Board remains satisfied with performance during the first
half, even if in absolute terms it has proven to be the most challenging in
our short history. We have no cause to doubt either the opportunity that is
inherent within the investment strategy we are pursuing, nor the processes
being followed by the Portfolio Manager to capture that opportunity.
I look forward to updating you further when I write again to report on the
full year ending 31 December 2025.
Andrew Henton
Chairman
8 September 2025
Portfolio Manager's Report
Introduction
At the end of 2024 there was a palpable Christmas cheer to investors as an
incoming Trump administration and AI-driven tech boom sparked hopes of a
return to animal spirits for the first time since 2021. There would be above
trend growth. Tax cuts. Falling interest rates. Peace in Ukraine. The budget
deficit was going to fall. Man was even going to get to Mars. Sound like a
heady tonic? Well, judged by equity prices not all investors had faith and a
dry January sobered up optimism in the US and gave markets a chance to assess
MAGA policies more clinically. Meanwhile in the UK the Chancellor confounded
the most brilliant scientific minds with an ability to conjure black holes at
will in a way that defied physics' 'Theory of Everything' with a fiscal
'theory of nothing'. There is a sense that an event horizon has been crossed,
and the UK faces a period of intense economic and political change brewing.
For Onward it created an intense period of highs and lows. The Company's first
breakout moment (the acquisition by Private Equity of high-conviction
investment Windward announced on Christmas Eve) gave way to a difficult period
of investment performance. Almost half of our +35% NAV returns in the
18-months since we had launched were given back during a highly volatile
3-months for global asset prices as fears of a trade war intensified. Then, in
true cyclical fashion, just as quickly as the storm gathered, it passed.
Reassuring updates from a number of our investments, combined with a global
relief rally, drove dramatic bounce backs in their share prices which saw
losses all but recovered in the second quarter. The portfolio had to work very
hard to standstill in the face of the Trump administration's trade policy!
Against this backdrop the Company has again stood out as one of the larger
issuers of equity across all London Stock Exchange-listed investment
companies, raising capital twice so far this year despite capital markets
being all but shut.
Shareholders have had the chance to learn much about their manager and
investments in these arduous six months. The following report summarises how
both navigated an extremely volatile period in order to maintain the early
track record of outperformance and continue to capture precious capital
inflows. The key highlights have been:
1) The Company maintained its growth momentum as one of the fastest growing
funds across all investment companies on the London Stock Exchange. This
evidences growing confidence from a widening shareholder base in our ability
to deliver strong returns, in spite of prevailing market conditions and
sentiment.
2) The Company extended its track record of top-quartile performance since
launch, frequently ranking 1(st), 2(nd) or 3(rd) for both investment
performance and shareholder returns over various time periods since launch 2
(#_ftn2) .
3) A fourth takeover bid within the portfolio. Frenkel Topping, a nursery
holding, received an offer and formed part of a wider story of strength in
this part of the portfolio, underscoring its importance in our overall
diversity of returns.
4) Post period end, the NAV reached its all-time-high since launch of
129p/share, further demonstrating the investment strategy's ability to deliver
in various economic climates.
Competition for capital is fiercer than ever, and UK shares will continue to
justify capital allocation only on a case-by-case basis. We expect identified
earnings catalysts and self-help maneuvers to drive performance in the
portfolio in H2, during which we yet again expect to be sailing into the wind.
We are becoming a little apathetic toward 'unprecedented times' and 'history
being made'; at what point is it the new normal? The UK economy simply does
not currently have the aggregated margins, the productivity growth, tax
environment or the breadth of entrepreneurial culture to cope with sustained
base rates above 4% and the associated cost of capital for businesses. Thus, a
meaningful reduction in interest rates remains a key catalyst for UK smaller
companies in our opinion.
Top Holdings Table as at 30 June 2025
Holding £ Value Portfolio Weighting % Thesis Summary Catalysts Total Return % Aggregated IRR %
Angling Direct PLC (ANG LN) £3.1m 9.4% Margin recovery, strategic refocus Strategy review, end market recovery, uses of cash, Board evolution +44.4% +30.9%
Synectics Plc (SNX LN) £3.1m 9.4% Organic growth, end market cyclical capex recovery, disposal Revised capital allocation, margin accretion, contract wins, Board changes +27.3% +40.8%*
Alumasc Group Plc (ALU LN) £2.6m 8.0% Discount to intrinsic value of building product brands Construction sector recovery, margin recovery, +40.7% +50.5%
market share gains
Springfield Properties Plc (SPR LN) £2.6m 7.9% De-leveraging, cycle recovery Land disposals, Scottish freeport housing requirements +20.0% +20.0%
Transense Technologies Plc (TRT LN) £2.4m 7.2% Organic growth via technological advantage Sales pipeline execution, senior leadership hires, +44.4% +31.2%
Board evolution
MPAC Group Plc (MPAC LN) £2.2m 6.6% Margin recovery, horizontal expansion New CEO & sales team, pension buy-out, supply +38.8% +52.7%
chain normalisation, Board evolution
The Mission Group Plc (TMG LN) £1.9m 5.9% Disposals to deleverage, SOTP value Return of Chair/major shareholder, disposals at premium to group multiple, +16.2% +20.3%*
buybacks
Likewise Group Plc (LIKE LN) £1.4m 4.3% Organic growth through market share gains, best in class management CAPEX completion, utilisation rate expansion, competitor difficulties, +45.6% +97.7%*
recovery in housing transactions
React Group Plc (REAT LN) £1.4m 4.3% Organic growth, bolt-on M&A Bolt-on M&A, IR initiatives, uses of cash -18.6% -13.6%
Frenkel Topping Group plc (FEN LN) £1.3m 4.0% Deep discount to atypical wealth managers, structural tailwinds Rotation of clients back to equity products, recovery in AUM, Ongoing trauma +11.0% +12.1%
claims
Eleven Nursery Holdings 16.6%
Cash at Bank c.6.0%
*Denotes holding period of less than 12-months for IRR calculation
Performance
Portfolio Performance (displayed to 30 June 2025 and rolled on to the last
practicable date post period end; 31 August 2025)
The Company had a modest 6-months, delivering a NAV decline of -0.7%. Whilst
this was a disappointing short-term performance in the context of peer group
averages and the UK AIM All Share, as well as our own return targets, it
represented a short-term blip. Onward's smaller, less liquid holdings suffered
during the volatility of the period. Returns since launch remain strong, and
the portfolio has been extending its gains into the third quarter now that the
crisis has subsided, with the NAV reaching its all-time high at the end of
August. Whilst the first half of 2025 was, in isolation, well behind target
and thus a disappointing outturn, there was significant operational progress
within many of our investments and we anticipate a stronger H2 as these trends
continue and feed through to asset prices. This strength is based on several
identified catalysts in the core portfolio and their potential for near term
execution, with most companies expected to report earnings or trading updates
this side of year end.
As the chart above depicts, performance was volatile throughout the period,
declining -11.4% in the first quarter and then bouncing back +11.9% in the
second quarter as markets started to look through the trade war risks and,
more importantly, a number of our investments published strong updates. It has
then gone on to return to the all-time high post period end as we enter
September. Nursery holdings including Boku, Audioboom, Venture Life Group,
Pebble Beach Systems, and Frenkel Topping provided much of the heavy lifting,
alongside core holdings such as Angling Direct and Likewise, offsetting
weakness in other areas of the portfolio, particularly at MPAC. This trend has
continued into the second half, underscoring the value of this dynamic, more
liquid element of the portfolio construction. Two of the nursery holdings have
been upweighted to core holdings post period end - Audioboom (up to 8% at
270p) and Likewise Group (up to 8% at 25p).
Total Returns to 30 June 2025 HY25 - 6 months to 30 June 2025 1-year - 12 months to 30 June 2025 Since inception - 27 months to 30 June 2025 Since inception - 29 Months to 31 August 2025
ONWD NAV Total Return -0.7% +10.4% +34.2% +35.1%
ONWD Total Shareholder Return 'TSR' -3.6% +6.9% +32.5% +29.0%
ONWD NAV relative performance to UK AIM All-Share Total Return Index -8.9% +7.6% +34.1% +35.7%
ONWD TSR relative performance to UK AIM All-Share Total Return Index -11.8% +4.1% +32.6% +29.7%
AIC UK Smaller Companies Ranking for NAV Return 20th 5(th) 4(th) 4(th)
AIC UK Smaller Companies Ranking for TSR 19th 6(th) 6(th) 9(th)
As the table above reveals, a very strong FY24 was followed by six months
where the entire portfolio had to work even harder just to stand still. It was
ever thus. Companies build their reputations with how they handle crises and
both the Manager and the portfolio holdings have been given a chance to
demonstrate to investors how they handle such volatile circumstances. Of
particular highlight was a demonstration of how an investment committee
structure enables Onward to run cash balances with discipline. We had
tactically built-up cash reserves in the first couple of months of 2025 from
the takeout of Windward (13% NAV), a capital raise (4% NAV) and exiting
Audioboom from the nursery for a c.+100% return in 4 months (4% NAV). This was
because the team had instinctive concerns around an upcoming 'spring
statement' by the Chancellor and optimistic sentiment on both sides of the
Atlantic appeared stretched, rather than prophetic views on US trade policy.
This proved fortuitous as we entered the tariff volatility with a c.20% cash
balance. Perhaps a manager working in isolation might have been tempted to
re-invest quickly off the back of a hubristic success like Windward? Another
without veteran eyes and ears around them may have been tempted to step in
with purchases early on in the sell off in an attempt to catch falling knives?
Instead, the Onward team waited for the end of Q1 portfolio meeting with the
Investment Committee and took the lay of the land, which is described in more
depth in our market commentary section below. What was clear based on
experience is that conditions were now approaching extremities in terms of
pricing of assets but also the limits of political will for a vain President.
Our smaller, less liquid equity holdings had been particularly punished on
little volume despite good operating performance in many cases and the fact
hardly any were direct tariff victims. Examples at the time would include
Springfield Properties with a material disposal at 1.3x book value (paying off
all of its debt, shares trade at a material discount to that valuation), The
Mission Group disposing 20% of its profits for 75% of its market cap, Angling
Direct beating forecasts in a tough backdrop, Synectics beating forecasts for
the 4(th) time in a year and upgrading next year. Despite this, their share
prices were down between 15% and 50% from their January highs. It was
concluded that the team should start to capitalise on the competitive
advantage that had been cultivated for Onward (large cash balance). The team
deployed all of these monies into agreed new and existing holdings through the
course of April, three days after what proved to be the low of the drawdown
for AIM and other UK equity indices. These sorts of stress tests are as
valuable to the Manager as they are to the shareholders and the Board.
Market Commentary
If 2024 saw the lettuce wilt in the stands, then H1 2025 was more a case of
the crowd not showing up at all - not out of protest, but fatigue. The UK
market may not be on life support, but it's certainly still in post-op and the
recovery is slow. The new Government continues to claim it inherited a
poisoned chalice; voters increasingly suspect it just brought a leaky one of
its own.
Against this backdrop, UK small caps muddled through what felt like six months
of shadow boxing - plenty of motion, little impact. The performance gap versus
global peers has continued to stretch like a stubborn elastic band and yet,
beneath the malaise, there are flickers of energy and occasional knockout
blows for those nimble enough to land them. UK equities are starting to
outperform on a relative basis for the first time in recent reckoning and
whilst it seems more due to there being a vacuum above pulling them up, rather
than a rising tide beneath, this can be no bad thing. It does make one wonder
what might have been with a more constructive government? To us the UK
equity market could have offered a great haven for inflows this year in that
parallel universe. US practices without the politics?
If the UK was unable, so similarly did the global situation offer few safe
harbours. US economic data, while still positive, has softened meaningfully -
with the long-heralded "no landing" now possibly touching down; US GDP growth
in Q1 was just 1.4%. After 500bps of tightening, the Fed cut once in June
but insisted it is still "data-dependent" - the central bank equivalent of a
shrug. Meanwhile, the UK finally managed its first rate cut in July, though
the MPC's caution remains palpable, with inflation sticking closer to 3% than
2%. This was followed by another cut in August, only to be met with a rise in
inflation to 3.8%.
AIM continues to face outflows, low liquidity and a buyers strike from
institutional investors. Yet paradoxically, this has made the survivors more
valuable - to trade buyers, private equity, and patient public market
investors alike. Our portfolio saw that thesis play out again, with several
holdings generating material alpha through bid activity or strong results
amidst the gloom.
The dislocation between public and private market valuations remains wide but
as refinancing gets tougher and debt more expensive, we expect that gap to
narrow - especially as M&A picks up. The fact remains: some of the best
value in global equities can be found in UK small caps, particularly those
with recurring revenue, strong cash generation, and competent management. They
just need someone to notice.
We remain firm believers in the idea that public markets are a public good.
That's not just rhetoric - it's the philosophical backbone of what the Company
is about. Onward is an accessible fund with publicly traded shares and no
minimum investment. UK capital markets must be made relevant again, not just
for allocators but for the retail investors and entrepreneurs who've
historically built wealth and innovation through them. That starts with
confidence, transparency, and engagement - none of which currently feature in
most political conversations about the City.
But we're not in the business of waiting for Westminster to rediscover its
love for capital markets. We continue to fish in the neglected ponds - to
borrow Munger's rule - and we're still finding fish. The Company delivered
another period of solid NAV performance in H1, driven by a handful of key
positions, strong discipline, and an unwillingness to follow the crowd into
the obvious.
Much like last year, we don't expect the UK to start leading global markets
tomorrow. But with every passing quarter of underperformance, the mean
reversion case builds. Capital is a coward - but it's also opportunistic.
Eventually, it flows to where the returns are. For the patient, the unloved
corners of the UK market remain fertile ground. The Snow Leopards which
feature so heavily in our branding are crepuscular creatures and we are glad
to be in the market when it is cold and dark. Whilst it is unclear if this is
dusk or a new dawn for UK capital markets as they ebb and flow, we are
demonstrating that we are equipped to be sanguine in either part of the cycle.
Angling Direct plc (ANG LN) - Date of first investment May 2023 - +30.9% IRR
as at 30 June 2025
Angling Direct is the UK's leading retailer of fishing equipment and tackle.
Our early returns on this investment demonstrate how we have captured dual
optionality on the upside with our timing into Angling Direct, which creates
an attractive asymmetric risk profile for shareholders' capital, initially
investing between 24 and 30 pence per share. This position represents either a
growth or value investment, depending on various strategic decisions that are
taken in the coming months.
The business has a dominant market position in the UK, where it is profitable
and cash generative from a repeat customer base of 'anglers'. These metrics
are improving materially under new management and look set to benefit from
both a UK consumer recovery and growth from additional store rollout, which
is now accelerating.
The previous management team attempted to enter the much larger European
market to provide additional earnings growth. This strategy has not matched
the UK success, with over five years of annual losses that are material in the
context of overall group profits, whereas the UK business generates a profit
that is significantly more than the current group number (which factors in
European losses). Our returns thesis is that either the European strategy
starts to bear fruit imminently after years of trying and contributes
profitable growth to the group, or it can be reviewed to remove the
opportunity cost to management. We are now dialling up the intensity here,
given there has been little evidence that Europe is not an opportunity cost,
dilutive to group margins and ROCE and therefore also shareholder value.
The Company's approach has made a material impact this year on ANG's strategy,
increasing shareholder value. The team has been highly engaged with the
company for over 12 months on a number of strategic matters and the recently
announced capital allocation policy, including a £4m buyback, was well
received by shareholders. Behind the scenes, there has been a refinement of
operational elements within the strategy under new CEO Steve Crowe, the
benefits of which are beginning to reveal themselves in some
cracking UK divisional figures and increased growth rates. There was
something reassuring about how our very first investment led the recovery out
of Q1 with Angling Direct delivering a strong set of figures for a retailer in
the UK that saw the shares hit a 3-year high. The management team deserve
credit for how they are developing what was a low growth loss making retailer
five years ago. A bolder but still profitable store roll-out strategy,
improving terms of supply, better store management and customer engagement
came together to deliver a year of record sales for FY24 and a Q1 25 that was
reportedly 17.1% ahead of that. The new 'shop the range' tactic, a loyalty app
that has half a million members in just 24 months, and a weakening dollar
appear to be the next catalysts to take earnings further forward in the
current year. We noted with interest that their you tube channel recently hit
its 30 millionth viewing. We suspect the sterling summer sunshine may have
also been supportive. There is of course the additional upside that a
profitable resolution one way or the other to the European strategy question
will bring.
Two years on from first investing, it would be natural to expect this debate
to be approaching a conclusion following the recent capital allocation
commentary by the company. Fishing is a sport of probability maximisation, and
in that sense shares many similarities with investment management. Investors
can expect the ANG team to be on a path to reducing European losses for
shareholders one way or the other, creating material value for all
shareholders in the process.
Synectics plc (SNX LN) - Date of first investment September 2024 - +40.8% IRR
as at 30 June 2025
Synectics plc ("SNX") is a leader in Advanced Security and Surveillance
Systems. Its expertise is in providing solutions for specific markets where
security and surveillance are critical to operations. SNXs' core IP comprises
an open-architecture, proprietary 'Synergy' software combined with specialist
'COEX' cameras, delivering highly technical, tailored solutions to a
high-profile and blue-chip global customer base in markets including Gambling,
Oil & Gas, Infrastructure and Transport. It holds best-in-class and market
leading positions in some of these sectors which, we believe, makes it a
potential strategic asset.
The business used the pandemic to transform its strategy and focus on
operations, and this is now starting to bear fruit in the form of contract
wins. It was this earnings transformation that some of our screening systems
were flagging. Anecdotally, the business has transformed over the past 15
years from one with seven employees in hardware and one software developer, to
50 in software, two in hardware and much higher margins. Over the last 10
years, the Synergy command and control technology platform has become a key
driver to SNX both winning and retaining customers as well as improving
margins, primarily in systems but also indirectly in security. Synergy is
(according to customers and former employees we have spoken to) a
user-friendly command and control platform with good flexibility,
expandability, and resilience that is 'world leading'. Contract wins such
as Marina Bay Sands speak to this.
The mission critical nature of SNXs' products makes this an interesting
business to consider for investment now that the turnaround is completed. Two
crucial aspects of the Synergy platform are that it increases customer
retention stickiness by integrating into their operations but also generates a
higher blended margin than a typical hardware only surveillance and security
company.
We were able to acquire this world-leading, sticky, high-margin product on a
sub 10x price/earnings multiple through the second half of 2024, another great
example of 'gems amongst the rubble'. The business is now throwing off large
amounts of excess cash and there is optionality around the hardware division
that offers the potential for material capital returns to shareholders or
supplement capital growth at the company. We now look to new Chair, Bob
Holt, and recently appointed CEO, Amanda Larnder, to maximise extraction of
the material earning opportunities facing the business, particularly in
datacenters in the UK and new Casino openings around the world, particularly
the UAE and Far East. Interim results for H1 (to end May 2025)
demonstrated continued progress with revenue growth of ~35%, strong order
intake, repeat and new customer mandates and a well‑loaded pipeline for H2
across sectors and geographies. Order book momentum remains solid for the
remainder of fiscal 2025 and has been followed up with a number of contract
announcements over the summer. The business has a track record of upgrading
repeatedly in the second half and we are encouraged that management felt
compelled to upgrade this year in the first half, leaving us excited for H2.
Alumasc plc (ALU LN) - Date of first investment May 2023 - +50.5% IRR as at 30
June 2025
Alumasc is a building products company split across three divisions: Water
Management, Timloc (housebuilding products), and Building Envelope (roofing).
Whilst there are limited synergies between the three, Timloc and Water
management are both designers and manufacturers of building products, whereas
roofing is more akin to distribution and assembly. There is a wide spread of
quality of model and leadership across the three with a margin spread from 12%
to 23%. We believe Water and Timloc are much higher quality than roofing and
this is numerically backed up in the margins and industry referencing.
Our screening system picked up that the group had been producing improving,
sector leading margins since COVID, and that these were creating a very
attractive Cash Flow Return on Assets versus the company's own history and
peers. Whilst this is partly due to disposals of weaker assets, the more
intriguing driver we uncovered was that some of the group's brands were
demonstrating an ability to pass on cost pressures. Further work has revealed
that this is because Alumasc's products are often specified by architects
giving them at times almost monopolistic pricing power where their products
are required. This is of course immensely attractive, especially when
purchased on a single digit p/e multiple.
Having disposed of 6 operating assets in the past 8 years, the group has a
much more focused product set and strategy to consolidate their strong market
positions in Water Management and building products where margins are most
attractive. We believe that self-funded bolt-on acquisitions can combine with
increased R&D and an international sales team to drive market share
further over the coming years in what should become a recovery period for
construction activity
These market positions and associated brands such as Gattic, Timloc, Harmer
and Wade often attract interest from strategic buyers if they trade on single
digit multiples for too long.
Transense Technologies plc (TRT LN) - Date of first investment June 2023 -
+31.2% IRR as at 30 June 2025
Transense Technologies plc ("TRT") is a very different business, but we
believe it is another example of a small UK company quietly working up
great prospects for growth. It is fair to say the business has had a checkered
history of 'jam tomorrow' as a listed business, with a series of false dawns
leading to cash consumption, funding requirements and shareholder value
destruction. However, our screens and subsequent due diligence have uncovered
that over the past few years, prospects and crucially profits have tangibly
changed, and that this success is partly obscured by perceptions from the
past. The business has three core market leading technologies at various
stages of execution and a valuation of £13m at the point of investment. In
2019 the first of these, iTrack, became profitable through a 10-year royalty
deal with Bridgestone that is 100% profit margin, and has as we modelled,
peaked at around £3m per annum. This deal, led by the now Executive
Chairman Nigel Rogers, has been crucial as it has provided the group with
visible long-term profits that have allowed development of its other two
exciting technologies - Translogik and Surface Acoustic Wave ("SAW") sensors.
Translogik provides tyre wear monitoring equipment to fleet managers and
revenues have more than doubled since 2020 when the new team started to deploy
time and effort into the opportunity using iTrack profits. The technology
generates a gross margin in excess of 50% for the group and we expect that
under the recently appointed Managing Director, Ryan Maughan, revenues can at
least double again in the next few years, if not more. Progress is slightly
behind in this division versus where we had hoped given it was the simpler and
more established of the two technologies. Personnel issues at TRT (poor sales
hire) combined with slowdown in capex cycles at the tyre majors resulted in a
muted 12-months, though prospects now look more exciting following the
appointment of a new head of sales.
Lastly, the patent protected SAW technology, which is the least progressed but
with the largest potential for earnings contribution, has accelerated its
headway in some of the highest barrier to entry markets - US defence and
high-performance motorsport - and is now forming a beach head in the exciting
robotics market. SAW is garnering industry and investor interest because of
its ability to provide more specific and consistent torque readings in
high-intensity and adverse operating environments. The team are targeting
opportunities in the industrial, electric drivetrain and aerospace sectors and
we are monitoring progress closely following early successes with McLaren
and GE aviation. The two major pieces of work won last year appear to be
progressing well; Protean's in-wheel motors have recently been designed into
the incoming Renault 5, and the "LANDOne" landing gear program with Airbus,
which was a little more speculative as it was a new use case for SAW, is
stated to be working well and we think has the potential to lead to other
prototype use cases within Airbus.
Whilst the numbers are small, SAW's accelerating and broadening growth is
starting to make the potential more tangible and whilst a breakout moment of a
designed-in production order has not quite landed, it is clear from the
pipeline commentary that this moment has come close and the chances of one
landing have increased.
MPAC Group plc (MPAC LN) - Date of first investment September 2023 - +52.7%
IRR as at 30 June 2025
MPAC Group plc ("MPAC") is a designer and assembler of automated robotic
packaging lines with a strong foothold in defensive sectors globally, and a
historic specialism in 'side-loading' borne out of its days as cigarette
packager. After a difficult 2022/23, the business had got on to a strong
footing under new management with a clear plan for earnings growth.
We were able to purchase initially on an EV/EBITDA of c.2.5x, and subsequently
(with higher conviction) at multiples closer to 5x and 6x in 2024 - all at a
discount to the 10x (or higher) multiples where private equity transactions
have occurred. As the business approached these sorts of valuations in late
2024 and early 2025, the investment was reduced by c.50% in order to bank
material profits in excess of 100% and recalibrate exposure. The CEO, Adam
Holland, (referenced extensively at JCB & Rolls Royce) identified levers
to recover margins to 10%+ (which is now complete) and grow earnings with an
expanding sales team and abated supply chain headwinds of 2022/2023.
At the point of first investment, we had modelled 12.5%+ EBIT margins by 2028
but this ambition has been pushed out by 12 to 24 months following the recent
trading update for H124 which provided the disappointing news that US trade
policy had materially impacted customer confidence in the North American
business. Q2 order intake was impacted materially by tariff uncertainty,
leading to a large number of order deferrals and an opportunity to accelerate
U.S. footprint consolidation and cost optimisation ahead of expected recovery.
We have actively driven progress on a number of key initiatives including a
pension 'buy-out' (as it is now in surplus), incentive arrangements for the
new senior leadership team, board composition, M&A strategies and investor
communications which ought to maximise returns when the recovery ensues. The
company now represents a recovery opportunity in a similar way to our
successful investment in 2023 and the Investment Committee is actively
reviewing whether to re-invest profits from previous share sales and up-weight
the investment again.
React Group plc (REAT LN) - Date of first investment May 2023 - (13.6%) IRR as
at 30 June 2025
It has been a disappointing period for React Group Plc ("REAT") and we are
growing frustrated with the Board after a sustained period of setbacks. In
Q324 we identified what we felt to be opportunities to improve both the
organic and acquisitive elements of the growth strategy - without these two
flywheels working React's equity becomes sterile. Little appears to have been
done with our comments, which are now starting to look painfully accurate. We
often don't like to be proved correct. In some cases, management themselves
have now conceded we are right on various matters. The frustration is that
in the meantime the company's ability to garner additional growth capital for
M&A has been hamstrung and we are sat with sterile equity. The value
creation strategy has been to bolt-on specialist services which can generate
attractive and growing cash flows to fund further deals without the need for
future share issuance. This strategy is now broken because profits have fallen
and the balance sheet is at full capacity, which has led to share price
declines to a level where even additional equity capital is not feasible.
The value of REAT lies in growing facilities services where the customer has
an urgent call to action as this creates time sensitivity, a need for
specialist skills and costs of downtime. All of these create pricing power for
REAT and therefore margin. The clue is in the name; 'React'. The most recent
acquisition of Aquaflow fits this bill much better and it is no coincidence
that it is one of the better performing divisions as blocked pipes are an
urgent problem. Whilst we have some specific frustrations, we are actively
engaged with stakeholders to resolve these issues and get it back on the track
of acquiring price inelastic facility services that are cash generative and
growing, utilizing the right capital structure.
Springfield Properties plc (SPR LN) - Date of first investment July 2023 -
+20.3% IRR as at 30 June 2025
Springfield Properties Plc ("SPR") is one of Scotland's largest
housebuilders and crucially owns the largest land bank with planning approval
in the country. Over the past 24-months the Scottish government has helpfully
(for the Company at least!) self-inflicted a number of headwinds to the
housebuilding market to complement the well-documented impact of rising
interest rates and consumer pressures on the sector.
Those self-inflicted headwinds include rent-controls, unrealistic terms of
business for social housing construction contracts and wider political
uncertainty. These challenges resulted in SPR having to materially cut
earnings guidance, which in turn left its balance sheet looking stretched. The
shares followed and the company traded at a near 50% discount to NAV (of which
the main asset is the previously mentioned land bank). Whilst these were all
fascinating reasons to create a potential entry point, it is of course a
recovery that we, as capital allocators, are interested in. We have invested
with a line of sight on a number of catalysts for value recovery.
Most crucially are the self-help initiatives that we are proactively
supporting. SPR has removed £4m from the central cost base - which is
material in the context of a historic EBITDA of around £20m. Secondly, and
really to the core of our thesis, is the disposal of land parcels at premia to
book value which transfer enterprise value to equity value in the form of
monetising a portion of the balance sheet assets to pay down debt ahead of
forecasts. SPR has already announced a number of profitable disposals, and we
expect these efforts to continue to progress for the foreseeable. As these
de-risking catalysts complete it is not unreasonable to expect SPR to re-rate
from around 0.65x NAV at the point of investment to nearer 1.2-1.3x where the
sector typically trades through the cycle.
SPR provided another exciting update in January as our debt-reduction thesis
took a very large step forward with a land sale to Barrat of £64m at around
1.3x book value - the SPR shares trade at 0.75x TNAV at a market cap of
£117m. In tandem we have been following up our work on the appeals of the
group's pivot to the highlands for housebuilding activity, where SPR owns
further large banks of land. Here, what is interesting is the structural need
for housing to facilitate material investment going into the region's freeport
and green power line, where thousands of homes are needed for workers and then
communities. This creates supernormal profits potential for SPR as the main
landowner and house builder in the area, being thus best placed to facilitate
this unusual demand for housing which is materially cheaper than housing
construction workers in hotels for years, and create we think a supernormal
returns opportunity.
The Mission Group (TMG LN) - Date of first investment July 2024 - +20.3% IRR
as at 30 June 2025
The Mission Group ("TMG") is a classic special situation which we have been
able to obtain for the portfolio; a business now trading at a material
discount to its sum of the parts valuation and a deep discount to historic and
sector multiples. TMG is an advertising agency focused on the UK market,
which for the past eight years has been something of a disadvantage but is now
increasingly looking like a great geography in which to be 'overweight'. The
business had still been growing against this backdrop until 2022/23, when a
sector slowdown caught the business over geared, especially its property and
technology sector facing agencies. The high levels of operational gearing in
these businesses and their cyclical nature led to a material earnings
downgrade and resultant short-term impact on the share price, which our
long-term valuation approach has been able to take advantage of.
One of the founders, David Morgan MBE, returned as Chair to help deliver cost
take-outs and a disposal strategy to recover value for shareholders, of which
he is one with a 5% equity stake. The TMG Board executed a publicly stated
strategy of disposals to reduce debt and our analysis of the goodwill on the
balance sheet suggested that three of the 15+ agencies in the group are worth
significantly more than the current c£40m EV.
In January this year TMG announced material progress with the disposal
strategy we have vocally supported, disposing of April6 for 7x EBIT and a
consideration of £14m versus a market cap for the entire business of £20m.
April6 was only 20% of the group profits but sold for 75% of the market cap
highlighting the value on offer and the neatness of the transaction. The use
of proceeds was to pay off the majority of the group's debt, so what has been
lost in operating profit has been materially reclaimed in reduced interest
costs. Applying the same multiple to the group's remaining profits provides a
valuation of £60m; following recent market volatility the group's EV is now
materially lower than it was before the disposal. The value we have spotted
has not gone unnoticed - the business has received two approaches from a peer
at 29p and 35p per share; a 45% and 75% premium respectively to our 20p entry
price.
Likewise Group Plc (LIKE LN) - Date of First Investment October 2024 - +97.7%
IRR as at 30 June 2025
Likewise Flooring (Likewise Group PLC) is a major UK trade flooring
distributor, supplying everything from high-end residential carpets to
commercial flooring solutions - vinyl, laminate, adhesive, underlay, tiles,
matting. They support trade professionals via credit accounts, ordering
platforms, technical assistance, demos, and swift logistics from regional
hubs. Likewise has been outperforming its competitors in the UK flooring
distribution sector due to a combination of strategic, operational, and
cultural advantages and this has delivered a purple patch of market
outperformance and share gains over the past two years which have coincided
with the breakeven and operational gearing point of the business. This is why
we have decided now is the time to materially upweight our initial nursery
position which was bought at 14p in 2024. This was executed post period end in
August 2025.
We believe that Likewise's key competitive advantages will drive top line
outperformance married with tight control of costs to drive a material
increase in profit margins from operational gearing. These identified
advantages include experienced leadership. CEO Tony Brewer and multiple
directors are industry veterans with decades of experience, particularly from
Headlam Group where they grew the share price from 50p to over 500p twice
(2000-07, 2009-15). It is notable that Headlam has been declining since they
left in 2016 when it was a £500m company - recently Likewise's market value
was greater than Headlam's for the first time. Such proven leadership is vital
for acquisition integration, logistics scaling, and customer service
execution.
Secondly, as a NewCo, the business benefits from efficient, modern logistics
infrastructure; a Nationwide network of regional depots (e.g. Birmingham,
Glasgow, Derby, Ivybridge) providing fast, next-day service. These depots
contain recent capital investments in high-capacity warehousing and cutting
lines, funded at the IPO long before we invested as sunk costs, which Onward
can now benefit from. Finally, the business has strong financial discipline
which makes for a stark contrast to the balance sheets at Headlam and Victoria
which have the potential to be terminal and at the very least expensive. Tony
Brewer maintains a lean cost base - his CEO's desk is on the cutting room
floor in the Midlands warehouse, with growing operating profit and positive
cash flow. The net cash position supports growth investment (e.g. depots,
systems, staff share schemes) and has allowed the company to Initiate a share
buyback program, signaling confidence and shareholder alignment.
Audioboom plc (BOOM LN) - Date of First Investment November 2024 - >1000%
IRR as at 30 June 2025
Whilst not in the top 10 holdings as at the end of June, given that Audioboom
has become the largest holding post period end due to the very strong share
price performance following our significant upweighting at 270p in July, it
would be remiss not to use this as an opportunity to provide comments for
shareholders.
Audioboom first entered the nursery in 2024 at 250-300p and went on to deliver
a series of profit upgrades that transformed the profitability and future cash
generation potential of the company - the shares subsequently rallied strongly
to around 600p in Q125 where we took profits as trade war uncertainty grew.
Following the market volatility this year, we have now been able to reinvest
in Audioboom, but this time as a core holding as;
1) the value on offer was even greater (the profits this year are higher
than last year for the same price),
2) the business is now exiting the last of its onerous contracts,
unlocking cash generation at the business for the first time in years,
3) M&A activity in the podcast sector has ticked up noticeably, with
serial acquirers such as Lemonada paying valuations which are at a large
premium to Audioboom's
4) most importantly, our understanding of the real value of Audioboom's
business model has grown substantially.
Audioboom's business model is to help podcasters produce their shows and
distribute them for monetisation and in this we observe a number of attractive
qualities versus a valuation of 0.7x Sales at the point of investment. Most
significantly, the end markets are in structural growth with both the volume
of listeners growing each year, and also the amount of advertising budget
committed to this growing listener count growing at an even faster rate,
creating a structural tailwind for revenues for Audioboom. Within these sales,
the company has an emboldening competitive advantage to advertisers; it can
provide them with the same, if not more, high-quality eyeballs and earlobes
for their campaigns and products at a much lower cost than, say, a TV
production house or broadcaster and still make a much better margin.
This is because the cost to produce a podcast for an hour is single digit
percentages of the cost of making an hour of TV. To exaggerate for effect,
it is 3 people in a room with some basic recording equipment versus a series
of production sets, high paid actors, camera crews and equipment etc in TV.
This is why Audioboom's margins are starting to expand and their unit
economics are likely to increase further. They can charge advertisers much
less than their competition and deliver the same result, whilst making a
higher profit margin.
The fact Audioboom is the 4(th) largest publisher in the US and the 2(nd) in
the UK and one of the very few that are independently listed makes them stand
out as a potential strategic asset for a larger media organisation seeking a
'land grab' in this attractive market. We look forward to the typically busy
H2 advertising period around the start of the NFL season and Christmas with
interest. Any earnings growth from such busy periods ought to drive upgrades
and surplus cash from here given the platform nature of the business.
Conclusion
Markets are ebbing into an extended bear cycle for the UK, which has entered
its 4th year. The withdrawal symptoms from ultra-low interest rates are
everywhere to see in the UK. Generationally depressed equity market
valuations, a dearth of IPOs, PE funds extending realisation periods, falling
housing transactions, repeated rounds of redundancies in the finance sector
which now seem to be spreading to the wider economy, and decade high profit
warnings.
Perhaps because the Company was borne out of such conditions, the Manager
relishes these headwinds as an opportunity to monetise them for shareholders
and that is also why Onward has been able to do so much more ably than most of
its competitors. We head into the second half cautiously optimistic because we
believe our investee companies can execute further catalysts idiosyncratically
of the wider world. Our optimism is not because we expect any great white
macro hope, but because we know that reasons for despondency create
dislocations in value. We are proving ourselves able to capture the value
opportunities embedded in such dislocations for our shareholders, resulting in
material outperformance.
Onward's branding incorporates a Snow Leopard - a 'crepuscular' creature,
which means that they are most active at dawn and dusk. That is how we have
been able to outperform for our investors, harvesting overlooked value when
everyone else has given up (dusk) and capturing emerging ideas early with an
energetic and focused approach (dawn).
Whilst UK equity markets are deep into a dusk, the Company is demonstrating
itself capable of generating returns in the darkest part of the cycle and that
is perhaps what is most exciting about the months and years to come when a
dawn breaks and markets are flowing again.
Ever Onwards,
Laurence Hulse
Lead Fund Manager, Founder
Board Members
The Board is responsible for the determination of the Company's investment
objective and investing policy and has overall responsibility for the
Company's activities including the review of investment activity and
performance and the control and supervision of the AIFM, the Portfolio Manager
and the other service providers.
The Directors meet at least four times a year, and at such other times as may
be required. The Directors (including the Chair) are all independent
non-executive directors. Given the size of the Board, it has not been
considered necessary to appoint a senior independent director at this stage in
the Company's lifecycle.
The Board has been assembled to ensure that the Company has the appropriate
breadth of skills and experience in order to ensure that it can be governed
effectively and comprises the following persons:
The Directors of the Company who served during the period are:
· Andrew Henton (Independent Non-Executive Chairman)
· Susan Norman (Independent Non-Executive Director)
· Henry Freeman (Independent Non-Executive Director, Chair of Management
Engagement Committee)
· Luke Allen (Independent Non-Executive Director, Chair of Audit and Risk
Committee)
All Directors also served during the year ended 31 December 2024, and their
brief biographies are available in the annual report as at that date.
Investment Committee
The Investment Committee of the Company who served during the period are:
· Laurence Hulse (Lead Fund Manager and Founder)
· Tom Teichman (Investment Committee Chair)
· David Poutney (Investment Committee Member)
· Jeremy McKeown (Investment Committee Member)
· Jay Patel (Investment Committee Member)
Following the period end, Mark Wharrier was appointed as an Investment
Committee Member and David Poutney stepped down from the Investment Committee.
All committee members also served during the year ended 31 December 2024,
and their brief biographies are available in the annual report as at that
date.
Mark Wharrier's biography is as follows:
Mark has been a professional equity investor for over thirty years and brings
deep expertise of the UK stock market. He began his career at Mercury Asset
Management in 1994, where he managed over £1bn of UK equity portfolios for
institutional clients.
In 2004, he co-founded NewSmith Asset Management with a team of colleagues,
focusing on UK equities for pension fund clients. The business was later
acquired by Man Group. Mark returned to BlackRock in 2013 as a Managing
Director, where he led the UK Equity Income franchise and managed an
investment trust. He subsequently held portfolio management roles at Troy
Asset Management and Majedie Asset Management, specialising in UK equity
income strategies.
Today, Mark remains an active investor in UK public equities. He also serves
as a director of several private businesses, is a Trustee of non-profit
organisations, and sits on the University of Durham Investment Committee. A
passionate advocate for the UK stock market, he recently launched a podcast
series featuring CEO interviews titled The Business Case. Mark holds a
degree in Economics, History, and Management from Durham University.
Interim Management Report
For the six month period ended 30 June 2025
Principal Risks and Uncertainties
The Directors have reconsidered the principal risks and uncertainties
affecting the Company. The Directors consider that the principal risks and
uncertainties have not significantly changed since the publication of the
Audited Financial Statements for the year ended 31 December 2024. The risks
and associated risk management processes, including financial risks, can be
found in the Audited Financial Statements for the financial year ending 31
December 2024, https://onwardopportunities.co.uk/document-centre/.
The risks referred to, and which could have a material impact on the Company's
performance for the remainder of the current financial period, relate to:
· Market risk
· Credit risk
· Liquidity risk
· Investee company failure
· Portfolio concentration risk
· Key person risk
· Share price risk
· Conflicts of interest
Emerging Risks
Emerging risks, along with all other risks the directors have identified the
Company as being exposed to, are monitored via the Company's Business Risk
Assessment. During the period, as part of their regular review and assessment
of risk, the Directors have continued to consider the impact of the emerging
risks of climate change, the use of artificial intelligence, the impact of
rising tariffs on EU economies, and the potentially changing fiscal
environment in the UK on the Company's business model and viability, but do
not consider these to be material risks at this time.
With respect to climate change risk in particular, the Directors consider that
the pricing of the underlying portfolio of the Company's investments reflects
market participants' views of climate change risk and that there are no
further climate related influences on the NAV of the Company at this point in
time.
ESG and Climate Change Risks and Considerations
The momentum of ESG adoption in the asset management industry has continued in
2025, with incoming regulations encouraging asset owners to increase their
demand for transparency. As ESG processes are further embedded within the
wider investment sector the hope is that improving environmental outcomes will
be realised as compliant companies find it easier to access capital via the
public markets and to grow relative to their less or non-compliant peers.
Climate change risk has been considered within the Emerging Risks section
above.
Going Concern
The Directors have adopted the going concern basis in preparing the Unaudited
Condensed Interim Financial Statements.
In assessing the going concern basis of accounting, the Directors have
assessed the guidance issued by the Financial Reporting Council and considered
the Company's own financial position, recent market volatility, the on-going
impact of the Russian war on Ukraine and the conflict in the Middle East,
increases in tariffs, inflation, interest rates and other uncertainties
impacting on the Company's investments.
At period end the Company had a net asset position of £32,977,000 comprising
cash of £1,980,000, listed investments amounting to £30,484,000 and a
convertible loan note of £500,000.
The Company generates liquidity by raising capital and exiting investments. It
uses liquidity by making new and follow-on investments and paying company
expenses. The Directors ensure it has adequate liquidity by regularly
reviewing its financial position and forward-looking liquidity requirements.
In assessing its going concern status, the Directors have considered the level
of operating expenses relative to net assets, such expenses approximating to
3.2% of net assets as at 30 June 2025.
Important events and financial performance
Highlights as at 30 June 2025 are as follows:
Ordinary Shares
30 June 2025
Highlights
Net Asset Value per share 3 (#_ftn3) 128.4p
Share Price 132.5p
% of capital deployed into AIM listed equities (investments) 92.4%
% of capital deployed into cash and near cash equivalents 6.0%
The table below provides performance information:
Date NAV % change in
per share NAV
30 March 2023 95.7p
30 June 2023 96.4p 0.8% increase
31 December 2023 106.5p 10.5% increase
30 June 2024 116.3p 9.2% increase
31 December 2024 129.4p 11.3% increase
30 June 2025 128.4p 0.8% decrease
The net loss for the period ended 30 June 2025 amounted to £105,000. Further
details of the Company's performance for the period are included in the
Portfolio Manager's Report, which includes a review of investment activity and
adherence to investment restrictions.
Premium
As at 30 June 2025, the share price was trading at a premium of 3.2% to the
last published NAV per share.
Related party transactions
Details of related party transactions are given in note 16 to the Unaudited
Condensed Interim Financial Statements.
Director
8 September 2025
Unaudited Condensed Statement of Comprehensive Income
For the six month period ended 30 June 2025
Period from Period from
1 January 2025 to 1 January 2024 to
30 June 2025 30 June 2024
(unaudited) (unaudited)
Notes Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Investments
Net gains on investments held at fair value through profit or loss - 217 217 - 1,959 1,959
Net investment gains - 217 217 - 1,959 1,959
Interest income 2 20 22 2 - 2
Dividend income - 148 148 - 64 64
Total income 2 168 170 2 64 66
Portfolio management and 5 (231) - (231) (144) - (144)
performance fees
Other expenses 6 (261) - (261) (161) - (161)
Total (loss) / gain and comprehensive (loss) / income for the period (490) 385 (105) (303) 2,023 1,720
(Loss) / Gain per 7 (1.96) 1.54 (0.42) (1.80) 12.03 10.23
Ordinary Share (pence)
The total column of this statement represents the Unaudited Condensed
Statement of Comprehensive Income of the Company prepared under IAS 34.
The supplementary revenue and capital return columns are prepared under
guidance published by the Association of Investment Companies ("AIC").
All items in the above statement derive from continuing operations.
The notes on pages 26 to 35 form an integral part of these Unaudited Condensed
Interim Financial Statements.
Unaudited Condensed Statement of Financial Position
As at 30 June 2025
30 June 31 December
2025 2024
£'000 £'000
Notes (unaudited) (audited)
Non-current assets
Investments held at fair value through profit or loss 9 30,484 30,789
Convertible loan note 10 500 500
Current assets
Interest receivable on convertible loan note 10 30 10
Dividend receivable 49 12
Cash and cash equivalents 1,980 362
Other receivables 48 13
2,107 397
Total assets 33,091 31,686
Current liabilities
Management fee payable 5 (41) (40)
Performance fee payable 5 - (481)
Unsettled trades 11 (33) (95)
Other payables (40) (49)
Total liabilities (114) (665)
Net assets 32,977 31,021
Equity
Share Capital 12 26,722 24,661
Capital reserve 7,857 7,472
Revenue reserve (1,602) (1,112)
Total equity 32,977 31,021
Net Asset Value per Ordinary Share (pence) 13 128.41 129.37
Number of Ordinary Shares in issue 12 25,680,624 23,979,754
Approved by the Board of Directors and authorised for issue on 8 September
2025 and signed on their behalf:
_______________________
Director
The notes on pages 26 to 35 form an integral part of these Unaudited Condensed
Interim Financial Statements.
Unaudited Condensed Statement of Changes in Equity
For the six month period ended 30 June 2025
Share capital Revenue reserve Capital reserve Total
£'000 £'000 £'000 £'000
For the period 1 January 2025
to 30 June 2025 (unaudited)
At 1 January 2025 24,661 (1,112) 7,472 31,021
Share issue 2,124 - - 2,124
Share issue costs (63) - - (63)
Total (loss) / gain and comprehensive (loss) / income for the period - (490) 385 (105)
At 30 June 2025 26,722 (1,602) 7,857 32,977
Share capital Revenue reserve Capital reserve Total
£'000 £'000 £'000 £'000
For the period 1 January 2024
to 30 June 2024 (unaudited)
At 1 January 2024 15,536 (423) 1,956 17,069
Share issue 1,684 - - 1,684
Share issue costs (50) - - (50)
Total (loss) / gain and comprehensive (loss) / income for the period - (303) 2,023 1,720
At 30 June 2024 17,710 (726) 3,939 20,423
The notes on pages 26 to 35 form an integral part of these Unaudited Condensed
Interim Financial Statements.
Unaudited Condensed Statement of Cash Flows
For the six month period ended 30 June 2025
Period from Period from
1 January 2025 1 January 2024
to 30 June to 30 June
2025 2024
Notes £'000 £'000
(unaudited) (unaudited)
Cash flows from operating activities
Other expense payments 14 (1,078) (300)
Interest income 2 2
Dividend income 111 -
Purchase of equity investments 9 (10,357) (9,344)
Sale of equity investments 9 10,879 8,044
Net cash outflow from operating activities (443) (1,598)
Cash flows from financing activities
Issue of Ordinary Shares 12 2,124 1,684
Share issue costs 12 (63) (50)
Net cash inflow from financing activities 2,061 1,634
Net increase in cash and cash equivalents 1,618 36
Cash and cash equivalents at beginning of period 362 407
Cash and cash equivalents at end of period 1,980 443
Cash and cash equivalents comprise of the following:
Cash at bank 1,980 443
1,980 443
The notes on pages 26 to 35 form an integral part of these Unaudited Condensed
Interim Financial Statements.
Notes to the Unaudited Condensed Interim Financial Statements
For the six month period ended 30 June 2025
1. Reporting Entity
Onward Opportunities Limited (the "Company") is registered in Guernsey and was
formed on 31 January 2023, with registered number 71526. The Company's
registered office is Les Echelons Court, Les Echelons, St Peter Port,
Guernsey, GY1 1AR.
The Company is a Registered Closed-ended Collective Investment Scheme
regulated by the Guernsey Financial Services Commission ("GFSC"), with
reference number 2804577, pursuant to the Protection of Investors (Bailiwick
of Guernsey) Law 2020, as amended and the Registered Collective Investment
Scheme Rules and Guidance, 2021.
The Company had 23,979,754 shares in issue under ticker ONWD, SEDOL BMZR151
and ISIN GG00BMZR1514 on 31 December 2024. During the current period, the
Company admitted a further 1,700,870 shares for a gross consideration of
£2,124,000. The Unaudited Condensed Interim Financial Statements of the
Company are presented for the period ended 30 June 2025.
The Company and its Alternative Investment Fund Manager received discretionary
portfolio management services directly from Dowgate Wealth Limited ("DWL")
during the six month period ended 30 June 2025.
With effect from 3 May 2025 the Company's administration was delegated to NSM
Funds Limited and its Alternative Investment Fund Manager was Global Fund
Management Services Limited ("GFM"). Prior to 3 May 2025 the services were
provided by Apex Fund and Corporate Services (Guernsey) Limited and FundRock
Management Company (Guernsey) Limited respectively.
2. Material accounting policies
(a) Basis of accounting
The Unaudited Condensed Interim Financial Statements have been prepared on a
going concern basis in accordance with IAS 34 Interim Financial Reporting as
adopted by the European Union, and applicable Guernsey law. These Unaudited
Condensed Interim Financial Statements do not comprise statutory Financial
Statements within the meaning of the Companies (Guernsey) Law, 2008, they do
not include all of the information required for full annual financial
statements and should be read in conjunction with the financial statements of
the Company as at 31 December 2024, which were prepared in accordance with
International Financial Reporting Standards as adopted by the European Union
("IFRS"). The accounting policies adopted in these Unaudited Condensed Interim
Financial Statements are consistent with those of the previous financial
period and the corresponding interim reporting period.
Where presentational guidance set out in the Statement of Recommended Practice
("SORP") for investment companies issued by the Association of Investment
Companies ("AIC") updated in July 2022 is consistent with the requirements of
IFRS, the Directors have sought to prepare the Unaudited Condensed Interim
Financial Statements on a basis compliant with the recommendations of the
SORP.
(b) Going concern
The Directors have adopted the going concern basis in preparing the Unaudited
Condensed Interim Financial Statements.
In assessing the going concern basis of accounting, the Directors have
assessed the guidance issued by the Financial Reporting Council and considered
the Company's own financial position, recent market volatility, the on-going
impact of the Russian war on Ukraine and the conflict in the Middle East,
increases in tariffs, inflation, interest rates and other uncertainties
impacting on the financial position and liquidity requirements of the
Company's investments.
At period end the Company had a net asset position of £32,977,000 comprising
cash of £1,980,000, listed investments amounting to £30,484,000 and a
convertible loan note of £500,000.
The Company generates liquidity by raising capital and exiting investments. It
uses liquidity by making new and follow-on investments and paying company
expenses.
The Directors ensure it has adequate liquidity by regularly reviewing its
financial position and forward-looking liquidity requirements. In assessing
its going concern status, the Directors have considered the level of operating
expenses relative to net assets, such expenses approximating to 3.2% of net
assets as at 30 June 2025.
(c) Segmental reporting
The chief operating decision maker is the Board of Directors. The Directors
are of the opinion that the Company is engaged in a single segment of business
with the primary objective of investing in securities to generate capital
growth for shareholders. Consequently, no business segmental analysis is
provided.
The key measure of performance used by the Board is the Net Asset Value of the
Company (which is calculated under IFRS). Therefore, no reconciliation is
required between the measure of profit or loss used by the Board and that
contained in these Unaudited Condensed Interim Financial Statements.
(d) Taxation
The Company has been granted exemption from liability to income tax in
Guernsey under the Income Tax (Exempt Bodies) (Guernsey) Ordinance, 1989
amended by the Director of Income Tax in Guernsey for the current period.
Exemption is applied for and granted annually and is subject to the payment of
a fee which was £1,600 for the period.
(e) Investment entities
In accordance with IFRS 10 an investment entity is an entity that:
· Obtains funds from one or more investors for the purpose of
providing those investor(s) with investment management services;
· commits to its investor(s) that its business purpose is to
invest funds solely for returns from capital application, investment income,
or both; and
· measures and evaluates the performance of substantially all of
its investments on a fair value basis.
The Directors are satisfied that the Company meets each of these criteria and
hence is an investment entity in accordance with IFRS 10.
3. Use of estimates and critical judgements
The preparation of Unaudited Condensed Interim Financial Statements in
accordance with IFRS requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and the disclosure
of contingent assets and liabilities at the date of the Unaudited Condensed
Interim Financial Statements and the reported amounts of income and expenses
during the period. Actual results could differ from those estimates and
assumptions.
The estimates and underlying assumptions are reviewed on an ongoing basis.
There were no significant accounting estimates or significant judgements in
the current period.
4. New and revised standards
New standards and interpretations not yet adopted
Certain new accounting standards, amendments to accounting standards and
interpretations have been published that are not mandatory for current period
and have not been early adopted by the Company.
Standards, amendments and interpretations effective during the period
There are no standards, amendments to standards or interpretations that are
effective for annual periods beginning on 1 January 2025 that have a material
effect on the financial statements of the Company.
5. Portfolio management and performance fees
1 January 2025 1 January 2024
to 30 June to 30 June
2025 2024
£'000 £'000
Portfolio management fees 231 144
Total portfolio management fees 231 144
The Company procures portfolio management services directly from DWL, under
the Portfolio Management Agreement.
Management fee
The monthly management fee is equal to of 1.5% of the Net Asset Value that is
up to and including £50m and 1% of the Net Asset Value that is above £50m
(the "Management Fee"). The management fee is calculated and paid monthly in
arrears.
As at 30 June 2025, an amount of £41,000 (31 December 2024: £40,000) was
outstanding in respect of management fees.
Performance fee
For the year ending 31 December 2025 a performance fee may be payable to DWL,
the sum of which would be equal to 12.5% of the amount by which the Adjusted
Net Asset Value at the end of a Calculation Period exceeds the higher of: (i)
the Performance Hurdle; and (ii) the High Water Mark (the "Performance Fee").
The calculation period for the current year will be the period commencing on 1
January 2025 and ending on 31 December 2025 (the "Calculation Period").
As at 30 June 2025, the Company had not reached the end of the Calculation
period so an accrual of £nil (31 December 2024: £481,000) for performance
fees payable to DWL has been reflected within these Unaudited Condensed
Interim Financial Statements.
6. Other expenses
1 January 2025 to 30 June 1 January 2024 to 30 June
2025 2024
£'000 £'000
Directors' fees 63 63
Administration fee 53 42
Auditor's remuneration for:
- audit fees 10 10
- non-audit fees - (6)
Custodian fees 7 5
Broker fees 38 5
Registrars' fees 8 3
Listing fees 9 6
Regulatory fees 3 7
Legal fee and professional fees:
- ongoing operations 23 5
Directors' liability insurance 2 2
Tax advice 6 -
Marketing expenses 22 -
Sundry expenses 17 19
Total other expenses 261 161
7. (Deficit) / Earnings per Ordinary Share
30 June 2025 30 June 2024
Net return Per share Net return Per share
£'000 pence £'000 pence
Revenue return (490) (1.96) (303) (1.80)
Capital return 385 1.54 2,023 12.03
At 30 June (105) (0.42) 1,720 10.23
Weighted average number of Ordinary Shares 24,937,195 16,820,358
The return per share is calculated using the weighted average number of
Ordinary Shares.
8. Dividends
The Board has not declared an interim dividend (2024: £nil).
9. Investments held at fair value through profit or loss
Equity instruments Equity instruments
30 June 31 December
2025 2024
£'000 £'000
Opening book cost 23,381 15,032
Opening investment holding unrealised gains 7,408 1,663
Opening valuation 30,789 16,695
Movements in the period/year
Purchases at cost 10,357 27,336
Sales - proceeds (10,879) (18,987)
Net gains on investments held at fair value 217
through profit or loss 5,745
Closing valuation 30,484 30,789
Closing book cost 25,450 23,381
Closing investment holding unrealised gains 5,034 7,408
Closing valuation 30,484 30,789
Movement in unrealised (losses)/gains during the period/year (2,549) 6,198
Realised gains/(loss) on sale of investments 2,766 (453)
Net gain on investments held at fair value through profit or loss 217 5,745
Total net gain on investments held at fair value through profit or loss 217 5,745
10. Convertible loan note
Period ended 30 June Year ended 31 December
2025 2024
£'000 £'000
Convertible loan note - Principal amount 500 500
Convertible loan note interest receivable
Opening balance 10 -
Interest earned 20 19
Interest received - (9)
Total interest receivable 30 10
On 12 July 2024, the Company purchased a convertible loan note in OTAQ plc for
a consideration of £500,000. The loan note incurs interest at 10% per annum
for the first three years and 12.5% for the next two years if the loan has not
yet converted. Interest is payable quarterly in arrears based on calendar
quarters. The conversion price on the loan note is £0.03 per share with an
option to receive the principal loan amount if the conversion rate is
unfavourable. The convertible loan is secured against OTAQ's inventory at a
rate of 2.2x. The fair value of the convertible loan note approximates to its
carrying amount as presented above.
On 10 June 2025 OTAQ plc appointed voluntary liquidators to wind up the
company. This course of action triggered all loan note holders including
Onward Opportunities to call in their security on the assets, opting to
transfer them into a NewCo, ringfenced from OTAQ plc and its other creditors.
This process is now advanced with key terms and structures agreed, including a
realisation plan. The Loan Notes are held at cost which is considered to be a
reasonable approximation of fair value as at 30 June 2025 and this methodology
will be monitored on an ongoing basis and reviewed again at the year-end audit
process. The loan note holders are currently in negotiations with purchase
orders at the full market price for a portion of the assets, which represents
a >100% premium to the current carrying value.
11. Unsettled trades
At the period end, the net amount in relation to trades that were settled post
period end was £33,000 (31 December 2024: £95,000).
12. Share capital
No of
shares £'000
Ordinary Shares at no par value
Opening balance as at 1 January 2024 16,027,290 15,536
Issue of shares 7,952,464 9,450
Issue costs - (325)
At 31 December 2024 23,979,754 24,661
Issue of shares 1,700,870 2,124
Issue costs - (63)
At 30 June 2025 25,680,624 26,722
The holders of Ordinary Shares have the right to receive notice of and attend,
speak and vote in general meetings of the Company. They are also entitled to
participate in any dividends and other distributions of the Company.
13. Net Asset Value per Ordinary Share
The Net Asset Value per Ordinary Share and the Net Asset Value at the period
end calculated in accordance with the Articles of Incorporation were as
follows:
30 June 2025 31 December 2024
NAV NAV NAV NAV
per share attributable per share attributable
pence £'000 pence £'000
Ordinary Shares: basic and diluted 128.41 32,977 129.37 31,021
The Net Asset Value per Ordinary Share is based on 25,680,624 Ordinary Shares,
being the number of Ordinary Shares in issue at the period end.
14. Other expense payments
30 June 30 June
2025 2024
£'000 £'000
Total (losses)/gains for the period (105) 1,720
Net gains on investments held at fair value
through profit or loss (217) (1,959)
Interest income (22) (2)
Dividend income (148) -
Movement in working capital
Increase in other receivables (35) (28)
Decrease in payables (551) (31)
Total other expense payments (1,078) (300)
15. Financial instruments and capital disclosures
The Company's activities expose it to a variety of financial risks; market
risk (which includes price risk, foreign currency risk and interest rate
risk), credit risk and liquidity risk. The Unaudited Condensed Interim
Financial Statements do not include all financial risk management information
and disclosures required in the annual financial statements; they should be
read in conjunction with the Company's Audited Financial Statements as at 31
December 2024.
The Company measures fair values using the following hierarchy that reflects
the significance of the inputs used in making the measurements. Categorisation
within the hierarchy has been determined on the basis of the lowest level
input that is significant to the fair value measurement of the relevant assets
as follows:
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or
liabilities.
An active market is a market in which transactions for the asset or liability
occur with sufficient frequency and volume on an ongoing basis such that
quoted prices reflect prices at which an orderly transaction would take place
between market participants at the measurement date. Quoted prices provided by
external pricing services, brokers and vendors are included in Level 1, if
they reflect actual and regularly occurring market transactions on an
arm's-length basis.
Level 2 - Inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (that is, as prices) or
indirectly (that is, derived from prices).
Level 2 inputs include the following:
· quoted prices for similar (i.e., not identical) assets in
active markets;
· quoted prices for identical or similar assets or liabilities in
markets that are not active. Characteristics of an inactive market include a
significant decline in the volume and level of trading activity, the available
prices vary significantly over time or among market participants or the prices
are not current;
· inputs other than quoted prices that are observable for the asset
(for example, interest rates and yield curves observable at commonly quoted
intervals); and
· inputs that are derived principally from, or corroborated by,
observable market data by correlation or other means (market-corroborated
inputs).
Level 3 - Inputs for the asset or liability that are not based on observable
market data (unobservable inputs).
The level in the fair value hierarchy within which the fair value measurement
is categorised in its entirety is determined on the basis of the lowest level
input that is significant to the fair value measurement in its entirety. If a
fair value measurement uses observable inputs that require significant
adjustment based on unobservable inputs, that measurement is a Level 3
measurement. Assessing the significance of a particular input to the fair
value measurement in its entirety requires judgement, considering factors
specific to the asset or liability.
At 30 June 2025 Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Equity instruments 30,484 - - 30,484
Convertible loan note - - 500 500
30,484 - 500 30,984
At 31 December 2024 Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Equity instruments 30,789 - - 30,789
Convertible loan note - - 500 500
30,789 - 500 31,289
The Company has exposure to both level 1 and level 3 instruments in the
current period.
The following table shows a reconciliation of the opening balance to the
closing balance for fair values:
June June December December
2025 2025 2024 2024
£'000 £'000 £'000 £'000
Level 1 Level 3 Level 1 Level 3
Opening balance 30,789 500 16,695 -
Purchases at cost 10,357 - 27,336 500
Sales at cost (8,113) - (18,987) -
Total gains included in net gains on investments in the Unaudited Condensed
Statement of Comprehensive Income
- on assets sold 2,766 - (453) -
- on assets held at period end (5,315) - 6,198 -
30,484 500 30,789 500
16. Related parties
DWL provides portfolio management services to the Company.
1 January 1 January 1 January
2025 to 2024 to 2024 to
30 June 31 December 30 June
2025 2024 2024
£'000 £'000 £'000
Fees charged / (recharged) by DWL:
Management fees
Total management fee charged 231 344 144
Management fee outstanding 41 40 25
AIFM recharge
Total AIFM fee recharged (28) (55) (26)
AIFM fee recharge outstanding (14) (5) (9)
Performance fees
Total Performance fees charged - 481 -
Performance fees outstanding - 481 -
AIFM fee charged:
Total AIFM fee charged by FundRock 19 55 26
Total AIFM fee charged by GFM 14 - -
AIFM fee outstanding 19 5 5
Directors' fees
Total Directors' fees charged 63 125 63
Directors' fees outstanding - - -
As at 30 June 2025 the following Directors have holdings in the Company:
Director Number of % Ordinary Shares in
Ordinary Shares issue as at 30 June 2025
Andrew Henton 100,000 0.3894
Susan Norman 45,104 0.1756
Henry Freeman 20,000 0.0779
Luke Allen 25,052 0.0976
Adrian Norman (husband of Susan Norman) 4,878 0.0190
17. Post statement of financial position events
Subsequent to the period end the Company has raised a further £2.0m by way of
additional subscription for 1,570,897 new ordinary shares. The Company now has
a total of 27,251,521 ordinary shares in issue.
There has not been any other matter or circumstance occurring subsequent to
the end of the interim financial period that has significantly affected, or
may significantly affect, the operations of the Company, the results of those
operations, or the state of affairs of the Company in future financial
periods.
Corporate Information
Directors
Andrew Henton, Chairman
Henry Freeman
Luke Allen
Susan Norman
Registered office
Les Echelons Court
Les Echelons
St Peter Port
Guernsey
GY1 1AR
Portfolio Manager
Dowgate Wealth Limited ("DWL")
15 Fetter Lane
London
EC4A 1BW
AIFM
Global Fund Management Services Limited ("GFM")
Les Echelons Court
Les Echelons
St Peter Port
Guernsey
GY1 1AR
Nominated Advisor and Joint Broker
Cavendish Capital Markets Limited
1 Bartholomew Close
London
EC1A 7BL
Joint Broker
Dowgate Capital Limited
15 Fetter Lane
London
EC4A 1BW
Administrator and Company Secretary
NSM Funds Limited
Les Echelons Court
Les Echelons
St Peter Port
Guernsey
GY1 1AR
Registrar
MUFG Corporate Markets
Mont Crevelt House
Bulwer Avenue
St Sampson
Guernsey
GY2 4LH
Custodian
Butterfield Bank (Guernsey) Limited
P.O. Box 25
Regency Court
Glategny Esplanade
St Peter Port
Guernsey
GY1 3AP
English Legal Adviser to the Company
Gowling WLG (UK) LLP
4 More London Riverside
London
SE1 2AU
Guernsey Legal Adviser to the Company
Collas Crill LLP
Glategny Court
PO Box 140
St Peter Port
Guernsey
GY1 4EW
Independent Auditor
Grant Thornton Limited
St James Place
St James Street
St Peter Port
Guernsey
GY1 2NZ
1 (#_ftnref1) The Net Asset Value (NAV) is the amount of total assets less
total liabilities, i.e., the difference between what the Company owns and what
it owes., per share.
2 (#_ftnref2) Citywire Investment Manager Rankings, Association of
Investment Companies
3 (#_ftnref3) Net Asset Value expressed as an amount per share.
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