REG - Rockwood Strategic - Trading Update

Rockwood StrategicAnnouncement

02/10/2025 07:00

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RNS Number : 7978B  Rockwood Strategic PLC  02 October 2025

Rockwood Strategic plc
("RKW" or the "Company")

Trading Update

 

Rockwood Strategic plc (LSE: RKW) today provides an update ahead of
publication of its unaudited results for the six months ended
30(th) September 2025 (the "Period").

 

Interim Highlights

-     NAV Total Return performance in the Period of 12.5% to 279.91p per
share, which compares to rises in the FTSE Small Cap (ex-ITs) of 12.1% and the
FTSE AIM All-Share of 14.8%.

-     Total Shareholder Return in the Period was 11.5%.

-     NAV Total Return performance in the three years to
30(th) September 2025 of 93.9%, which compares to the FTSE Small Cap (ex-ITs)
of 31.2% and the FTSE AIM All-Share of -2.9%. The Total Shareholder Return in
this period was 99.7%.

-     The Company's shares traded at an average premium to NAV of 1.6% in
the Period and ended the Period at a 0.8% premium.

-     Significant investor demand resulted in the issuance of 9,343,667
new shares in the Period, increasing the share count by 24% and, alongside
performance, growing NAV to £134.8m. NAV has now grown 267% in the last three
years, building scale and widening our practicable investment universe. Net
Cash at Period end was c.£9.8m, 7.3% of NAV.

 

-       Twenty-four holdings at period end, with the top ten investments
cumulatively representing 59.3% of NAV.

 

-       Two new portfolio investments were made during the Period:
Treatt Plc has subsequently had a takeover approach at a derisory level.
Tribal Group Plc has rapidly risen 53% since our initial purchase. Full
details will be provided in the Company's forthcoming Interim Report.

 

-       One investment was realised, Galliford Try Plc, generating a
48.2% IRR and 2.4x money multiple. Initially purchased in Q2 2022 our
investment thesis has been delivered over three years via a material valuation
re-rating of the equity and excellent turnaround of the company's operating
performance.

-       Top five holding, Vanquis Banking Group Plc, has risen over 100%
as financial progress builds and motor finance liability clarity emerged.
Filtronic Plc won its largest ever contract from SpaceX.

-       Centaur Media Plc reported the successful sales for cash of the
MiniMBA, The Lawyer and Marketing Week which, when combined with existing
cash, exceeds the market capitalisation at the end of the period. This is a
clear current example of the pricing inefficiency in this part of the UK stock
market, the value inherent in the portfolio and the nature of available
investment opportunities.

 

Richard Staveley, Fund Manager, said:

"Rockwood Strategic continues to demonstrate that amongst widespread doom and
gloom, attractive investment returns are possible via our differentiated
approach. The spectre of potential tax changes combined with heightened
inflation and disruptive US trade policy have been dampening 'animal spirits'
which motivate corporate investment and hiring decisions, alongside equity
markets. However, our companies tend to be driven by 'self-help' and strategic
catalysts of a materiality that outweighs a soggy economic backdrop.
Furthermore, we believe all are at a deep discount to intrinsic value. We
expect positive progress across the portfolio during the rest of our financial
year and an optimist might expect tax clarity, lower inflation and stabilised
trade policy to emerge in the near future."

For further information, please contact:

 Rockwood Strategic plc

 Chairman                             Noel Lamb          020 7264 4444

 Rockwood Asset Management            Christopher Hart   020 7640 3200

 Investment Manager

 Singer Capital Markets Advisory LLP  James Maxwell       020 7496 3000

                                      James Fischer

 

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