REG - Onward Opportunities - Portfolio Update

Onward OpportunitiesAnnouncement

10/01/2024 07:00

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RNS Number : 1639Z  Onward Opportunities Limited  10 January 2024

 

10 January 2024

 

Onward Opportunities Limited

("Onward Opportunities" or the "Company")

 

Portfolio Update

 

Onward Opportunities Limited (AIM: ONWD), the investment company targeting
opportunities in smaller companies within the UK, provides an update for the
financial year ended 31 December 2023 ("FY23").

 

Company Update

 ·      FY23 unaudited Net Asset Value (NAV) Total Return of +11.3% to
 106.5p/share over the period from 30 March 2023 to 31 December 2023

 ·      Encouraging first financial year ahead of target returns in
 difficult market conditions, delivering investment outperformance (NAV growth)
 relative to:

 o  Indices - Outperformed UK AIM All Share by 16.6%; +11.3% Company NAV
 increase versus decline of 5.3% for UK AIM All Share

 o  Peers - Top decile performance in AIC UK Smaller Companies sector since
 inception; and

 o  The Company's target returns of >15% IRR stated at the time of IPO -
 The portfolio delivered an aggregated IRR of 22.6% and the invested portfolio
 as at year-end had generated an unrealised IRR of 40.2%

 ·      In March 2023, the Company completed its IPO notwithstanding
 challenging market conditions. The Company successfully completed a further
 capital raise in September 2023, increasing the Company's capital base by 25%
 and welcoming a number of new shareholders to the Company.

 Portfolio Update

 ·      Significant early contributions from both the core stable and
 nursery holdings; top five contributors to unrealised return were Angling
 Direct, MPAC Group, EKF Diagnostics, Windward and Springfield Properties

 ·      This early IRR performance is indicative of further upside within
 the existing portfolio, as well as the attractive pipeline of portfolio
 investments the manager is identifying in current markets over the medium to
 long term

 ·      DX Group was the first takeover of an investee company,
 generating an IRR of 197%

 ·      Portfolio has captured an income stream, that at FY24 dividend
 levels, is expected to offset the majority of the total expense ratio of the
 Company in the forthcoming year

 ·      Intense period of investment activity capitalising on the value
 opportunity in UK smaller companies; the Company was over 90% invested by
 year-end. The top 10 holdings represent 60% of NAV

 

Laurence Hulse, Investment Director & Founder, said:

 

"The team is delighted to have delivered a NAV return of +11.3% net of launch
costs in our first 9-months of operation, comparing favourably to the rest of
the peer group and comparator indices. It was particularly pleasing to quickly
earn back the IPO launch costs for shareholders who supported us.

"Onward Opportunities is all about truly active management; we are building a
portfolio of specialist investment ideas for existing and prospective
shareholders to access. Company resource is deployed analysing high conviction
opportunities and then engaged to help unlock the value identified. We look
forward to the portfolio developing further in the coming months. Onwards."

 

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

 Apex Administration (Guernsey) Limited (Company Secretary)              Tel: +44 (0) 203 5303 150

 Martin Baxter / Harry Rouillard                                         ool@maitlandgroup.com

 Cavendish Capital Markets Limited (Nominated Adviser and Joint Broker)  Tel: +44 (0)20 7397 8900

 Ben Jeynes/Camilla Hume

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

 Russell Cooke / Nicholas Chambers

 

 

 

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