For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20251006:nRSF0775Ca&default-theme=true
RNS Number : 0775C River UK Micro Cap Ltd 06 October 2025
River UK Micro Cap - Year-End Trading Update
River UK Micro Cap Limited (RMMC), the investment company that aims to deliver
long-term capital growth by identifying and capitalising on inefficiencies in
the smallest listed companies typically with a market capitalisation of less
than £100 million, provides an update in respect of the year ended 30
September 2025 ahead of the publication of the Company's Annual Report.
Key Highlights
Strong twelve-month outperformance:
· +22.3% twelve-month NAV per share return represents 14.1%
outperformance of our benchmark (Numis Small Cap inc AIM ex ITs +8.3%).
· Top decile versus AIC UK Smaller Companies sector over twelve months.
Attractive long-term returns:
· Since inception and after all fees, we have delivered an IRR(1) of
12.8% which compares to an annualised return of 5.6% for our benchmark.
· NAV growth has outperformed benchmark performance in 9 of our 11
financial periods since IPO in December 2014, only underperforming in FY2019
and FY2022.
· Top quartile versus AIC UK Smaller Companies sector since inception.
Shares trade on an 17% discount to NAV (NAV per share of 248.9p as at 30(th)
September 2025) and the Company has re-iterated its long-term commitment to
return capital to shareholders.
Portfolio Review
Top Contributors to performance:
· Serabi Gold +265%, a 4.2-percentage point (ppt) contribution to our
relative performance.
· DF Capital +80%, 3.5ppt contribution to performance.
· ActiveOps +51%, 2.9ppt contribution to performance.
· Gear4Music +72%, 2ppt contribution to performance.
· Aquis, Renold, Science in Sport and Windward were each bid for by
either strategic or financial buyers. Premiums to 30(th) September 2024 share
prices were 96%, 54%, 39% and 60% respectively.
We have built positions in five new holdings over the last twelve months
· Dialight - a designer and manufacturer of industrial LED lights.
· Microlise - enterprise software provider to large and medium sized
fleet operators.
· Sylvania Platinum - low-cost producer of Platinum Group Metals from
Chrome tailings.
· Tracsis - provision of mission critical software and hardware
solutions to the rail industry.
· Trifast - outsourced supply chain complexity via the manufacture and
distribution of qualified industrial fasteners for global manufacturing
businesses.
On average, new positions have gained 24% from our average purchase price to
30(th) September 2025.
Please see our quarterly communications Investor relations | River Global
(https://www.river.global/investment-trusts/river-uk-micro-cap-limited/investor-relations)
for detailed write ups on both our new positions and performance attribution.
Commenting on the results, Partner and Portfolio Manager George Ensor said:
"Sentiment towards UK listed small and micro cap companies remains depressed
and at odds with the ongoing improvement in company fundamentals and earnings.
We currently have a portfolio of companies that have, in aggregate, grown
earnings rapidly over the last few years, with net cash balance sheets and
substantial free cash flow generation. The portfolio free cash flow yield is
currently 7% which moves up to 8.5% when adjusted for the large discount to
NAV that our shares currently trade at (17%) - a discount that is at odds with
our peer group despite a track record and commitment to only retire equity.
We believe we are at or close to the start of a new global cycle of
outperformance for smaller companies which is an environment in which this
strategy will flourish."
We invite you to our upcoming quarterly investor webinar. George Ensor will
provide a live presentation relating to the Quarterly Investor Update via
Investor Meet Company on 15 Oct 2025, 10:00 BST.
Investors can sign up to Investor Meet Company for free and add to meet RIVER
UK MICRO CAP
LIMITED via:https://www.investormeetcompany.com/river-uk-micro-cap-limited/register-investor
(https://www.investormeetcompany.com/river-uk-micro-cap-limited/register-investor)
(1.)IRR is internal rate of return and is the portfolio return adjusted for
the capital returns (timing and quantum) to shareholders. The IRR is
calculated on a net of all fees basis.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END TSTUOUNRVSURRAA