12 September 2024
Oakley
Capital Investments Limited
Interim
results for the six months ended 30 June 2024
Oakley Capital Investments
Limited1 ("OCI" or the "Company") today announces its
interim results for the six months ended 30 June 2024. OCI is a
listed investment company providing consistent, long-term returns
in excess of the FTSE All-Share Index by investing in funds managed
by Oakley Capital2 ("Oakley").
The Oakley
Funds3 invest primarily in
unquoted, profitable, pan-European businesses with recurring
revenues, and across four core sectors: Technology, Education,
Consumer and Business Services. Oakley's origination capabilities
and proven value creation drivers help founders and management
teams accelerate growth and produce consistently superior returns
for investors.
Significant investment activity lays foundation for future
returns
Highlights for the six months ended
30 June 2024
|
●
|
Net Asset Value ("NAV") per share of
708 pence and NAV of £1,249 million
|
|
●
|
Total NAV return per share,
including dividends, of 4% (+26 pence), or 6% before the impact of
foreign exchange
|
|
●
|
Total shareholder return of
5%
|
|
●
|
Additional investments made of £184
million
|
|
●
|
Sale of idealista and Ocean
Technologies Group agreed post period end
|
|
●
|
Period-end cash and available credit
facilities of £184 million
|
|
●
|
Total outstanding Oakley Fund
commitments of £805 million to be deployed over the next five
years
|
|
●
|
Half-year dividend of 2.25 pence per
share
|
Portfolio highlights
|
●
|
Average portfolio company
year-on-year organic EBITDA growth of 14% (FY2023: 14%)
|
|
●
|
Average portfolio company valuation
multiple (EV/EBITDA) of 16.4x (FY2023:
16.4x)
|
|
●
|
Average net debt/EBITDA ratio of
3.9x (FY2023: 4.2x)
|
|
●
|
The key drivers of NAV growth
were:
|
|
-
|
Portfolio companies (+41 pence):
valuation gains in the underlying investments with IU Group (+8
pence), Phenna Group (+7 pence), Dexters (+6 pence) and Cegid (+5
pence) being the largest contributors
|
|
-
|
Foreign exchange impact (-12 pence),
largely attributable to a 2.4% change in EUR:GBP
|
Portfolio overview
OCI's portfolio of private equity
investments delivered positive trading momentum:
|
●
|
Earnings - an average 14% organic
EBITDA growth has been maintained in spite of the economic
backdrop, demonstrating the persistence of the long-term trends
invested behind and the impact of Oakley's value
creation
|
|
●
|
Valuations - the average portfolio
EV/EBITDA multiple of 16.4x remains unchanged year on year
reflecting a conservative approach to valuation
|
|
●
|
Leverage - at 3.9x, the average net
debt/EBITDA has continued to contract as debt is cautiously
deployed within new and existing portfolio investments
|
Read more about the Portfolio's
performance in the Half Year Report
here.
Transactions
OCI completed look-through
investments totalling £184 million,
including:
|
●
|
New platform deals - £124
million
|
|
-
|
Alerce (Origin I) - £9 million - an Iberian transport and logistics software business
|
|
-
|
Steer Automotive Group (Fund V) -
£66 million - the UK's leading independent auto collision repair
group
|
|
-
|
Horizons Optical (Origin I) - £9
million - a medical software provider based in Spain
|
|
-
|
ProductLife Group (Fund V) - £40
million - a France-based provider of
regulatory and compliance services to the global life sciences
industry
|
|
●
|
Follow-on investments - £43 million
- bolt-on acquisitions made by existing portfolio companies
including Phenna Group, Affinitas, Thomas'
London Day Schools and Liberty Dental Group
|
|
●
|
Venture investments - £17 million
- investments made in portfolio companies
within Oakley Touring Venture Fund and Oakley PROfounders Fund
III
|
Announced transactions which
completed post period-end or are expected to complete in H2 2024,
include:
|
●
|
Investments
|
|
-
|
Vitroconnect (Origin II) - £20
million - a broadband open access platform based in Germany. The
transaction completed in July 2024
|
|
-
|
I-TRACING (Fund V) - £39 million - a
cybersecurity firm based in France. The transaction is expected to
complete in H2 2024
|
|
●
|
Realisations
|
|
-
|
idealista - (Fund IV) - the sale of
the southern European real estate classifieds platform was agreed
during the period. The transaction is expected to complete in H2
2024 and OCI's look-through share of proceeds is anticipated to be
c. £70 million
|
|
-
|
Ocean Technologies Group (Fund IV) -
agreed sale of leading independent software provider to the
maritime industry. The transaction is expected to complete in H2
2024, with a look-through share of proceeds anticipated to be c.
£50 million
|
Read more about OCI's recent
transactions in the Half Year Report
here.
Direct investments
During the period, OCI's direct
investments continued to perform well. North Sails benefitted from
strong trading in its Masts and Sails divisions and the business
further expanded its portfolio of best-in-class ocean sport brands
with two significant acquisitions. Time Out sustained its positive
momentum, with both Media and Market sales accelerating during the
final quarter of the Group's financial year and the Group seeing
increasing synergies between the businesses.
Read more about OCI's direct
investments in the Half Year Report
here.
Cash & commitments
|
●
|
Cash - OCI had £128 million cash and
undrawn credit facilities of £56 million as at 30 June
2024
|
|
●
|
Commitments - total outstanding
commitments to existing Oakley Funds were £805 million at the
period end. This will be deployed over the next five
years
|
The Board closely monitors
anticipated fund drawdowns and projected liquidity and will
continue its long-term commitment to share buybacks when
appropriate.
See OCI's Balance Sheet in the Half
Year Report
here.
Outlook
The prospects of the existing
portfolio, in combination with a strong pipeline of new
opportunities, support the continued delivery of
outperformance:
|
●
|
The trading of a
focused portfolio of private equity investments is expected to
continue gaining momentum supported by Oakley's value creation
methods including M&A, talent hires, internationalisation, and
AI & data analytics
|
|
●
|
Attractive deal flow is set to
continue as Oakley's differentiated, founder-led orientation
unearths uncontested, complex transactions at compelling
valuations
|
|
●
|
In spite of a still subdued global
M&A market, the appeal of the Oakley Fund portfolio assets is
expected to result in possible further realisations
|
Caroline Foulger, Chair of Oakley
Capital Investments Limited, commented:
"It is
pleasing to report continuing momentum in OCI's
NAV growth, driven by higher earnings across a portfolio of
tech-enabled, disruptive businesses that have demonstrated an
ability to perform regardless of the economic backdrop. This once
again underlines the attractive nature of Private Equity and the
outcomes achievable through investing longer-term capital in
high-growth, high-potential private businesses, coupled with
hands-on management that influences the investment
outcome."
Peter Dubens, Managing Partner of
Oakley Capital Limited, commented:
"This has been a period of
considerable investment activity for Oakley with new deals in
France, Germany, Spain and the UK, and across a wide range of
sub-sectors. It demonstrates our truly pan-European approach to
investing, as well as our ability to unearth promising innovative
businesses, led by exceptional entrepreneurs and management teams.
These are the critical ingredients behind Oakley's success, and we
believe they will always be core to our future
performance."
The unaudited Interim Report and
Accounts are available on the Company's website at here.
A video overview of the 6-month
performance is also available at https://www.oakleycapitalinvestments.com/news-and-media/videos/
The Company's Q3 2024 trading update
is expected to be released on 23 October 2024.
- ends
-
Results presentation
A live presentation of the results,
delivered by Oakley Capital Partner Steven Tredget, will take place
at 9:00am today, Thursday 12 September 2024. The presentation will
be available to view via video webcast at the following
link:
https://www.investis-live.com/oakley-capital/66bc5e261cd26d1900025082/paert
Dividend
The half-year dividend declared in
respect of the six months ended 30 June 2024 is 2.25 pence per
share.
|
Ex-dividend date
|
19 September 2024
|
|
(date from which shares are
transferred without dividend)
|
|
|
Record date
|
20 September 2024
|
|
(last date for registering transfers
to receive the dividend)
|
|
|
Dividend payment date
|
18 October 2024
|
For
further information please contact:
Oakley Capital Limited
+44 20 7766 6900
Steven Tredget
Greenbrook Communications
Limited
+44 20 7952 2000
Rob White / Michael
Russell
Deutsche Numis (Financial Adviser
& Broker)
+44 20 7260 1000
Nathan Brown / Matt Goss
Notes:
LEI Number:
213800KW6MZUK12CQ815
1 About Oakley Capital Investments Limited ("OCI")
OCI is a Specialist Fund Segment
("SFS") traded investment vehicle that aims to provide shareholders
with consistent long-term capital growth in excess of the FTSE
All-Share Index by providing liquid access to private equity
returns through investment in the Oakley Funds.
A video introduction to OCI is
available at https://oakleycapitalinvestments.com/videos/.
The contents of the OCI website are not
incorporated into, and do not form part of, this
announcement.
2 Oakley Capital, the Investment Adviser
Founded in 2002, Oakley Capital
Limited has demonstrated the repeated ability to source attractive
growth assets at attractive prices. To do this it relies on its
sector and regional expertise, its ability to tackle transaction
complexity and its deal generating entrepreneur network.
3 The Oakley Funds
Oakley Capital Private Equity II,
Oakley Capital Private Equity III, Oakley Capital IV, Oakley
Capital V, Oakley Capital Origin Fund and Oakley Capital Origin II
are unlisted lower-mid to mid-market private equity funds that aim
to provide investors with significant long-term capital
appreciation. The investment strategy of the Funds is to focus on
buy-out opportunities in industries with the potential for growth,
consolidation and performance improvement. The Oakley family of
funds also includes Oakley PROfounders Fund III and Oakley Touring
Venture Fund, which are venture capital funds focused on
investments in entrepreneur-led, disruptive, technology led
companies.
For more information on the Oakley
Fund strategies in which OCI invests, please click
here.
Important information
Specialist Fund Segment securities
are not admitted to the Official List of the Financial Conduct
Authority. Therefore, the Company has not been required to satisfy
the eligibility criteria for admission to listing on the Official
List and is not required to comply with the Financial Conduct
Authority's Listing Rules.
The Specialist Fund Segment is
intended for institutional, professional, professionally advised
and knowledgeable investors who understand, or who have been
advised of, the potential risk from investing in companies admitted
to the Specialist Fund Segment.
This announcement may include
"forward-looking statements". These forward-looking statements are
statements regarding the Company's objectives, intentions, beliefs
or current expectations with respect to, amongst other things, the
Company's financial position, business strategy, results of
operations, liquidity, prospects and growth. Forward-looking
statements are subject to risks and uncertainties because they
relate to events and depend on circumstances that may or may not
occur in the future. Accordingly the Company's actual future
financial results, operational performance and achievements may
differ materially from those expressed in, or implied by, the
statements. Given these uncertainties, prospective investors are
cautioned not to place any undue reliance on such forward-looking
statements, which speak only as at the date of this announcement.
The Company expressly disclaims any obligation or undertaking to
update or revise any forward-looking statements contained herein to
reflect actual results or any change in the Company's expectations
with regard to them or any change in events, conditions or
circumstances on which any such statements are based unless
required to do so by the Financial Services and Markets Act 2000,
the Listing Rules or Prospectus Regulation Rules of the Financial
Conduct Authority or other applicable laws, regulations or
rules.