TIDMOCI
Oakley Capital Investments Limited
11 March 2022
Oakley Capital Investments (OCI)
11/03/2022
Results analysis from Kepler Trust Intelligence
Oakley Capital Investments (OCI) announced its final results for
the year ended 31 December 2021, in which strong earnings and
realisations drove significant NAV growth of 35% on a total return
basis, and a share price total return of 48%.
76% of the increase in the portfolio's value was driven by
earnings growth, with underlying investments maintaining their
pattern of strong growth. Average EBITDA growth over the year was
28%, underpinned by digitally enabled businesses and recurring
revenues.
Oakley Fund commitments at the year-end were GBP404m, increasing
to GBP740m when including the initial commitment to Fund V
announced post year-end. The Chairman states that "With...a rich
pipeline in place, OCI has the resources to help finance new Fund
investments in the coming years, using balance sheet cash as well
as proceeds from anticipated future realisations".
Kepler View
Oakley Capital Investments (OCI) offers a concentrated, but
unique exposure to a number of very interesting growth companies.
Certainly, the world has changed markedly from the year end date,
but the underlying themes which have driven such strong earnings
growth over the last year, seem unlikely to be derailed. At the
year end, the portfolio exposure to consumer companies lay at 44%,
with the rest of the portfolio relatively evenly balanced between
technology and education.
When compared to the LPE peer group, OCI is relatively highly
committed as a proportion of NAV. However, on the same day as the
results announcement, the board announced they had authorised a
buyback programme up to an aggregate consideration of GBP20
million, potentially an indication of the value they see in the
shares (currently at a c. 30% discount to NAV), and their
confidence on their balance sheet position.
Oakley Capital's focus on active management and value creation
has helped its tech-enabled portfolio to continue generating strong
earnings growth. Its unique deal sourcing network means they are
able to find promising investments at attractive valuations. In the
current period of geopolitical, market and economic volatility, we
share the board's confidence in Oakley's "capabilities as a leading
private equity investor, as well as the long-term potential of the
Oakley Funds, to continue generating superior returns for
investors" which have delivered a five-year compound annual growth
rate of 19%.
OCI's shares have de-rated with the market this year, and now
trade at a discount to the 31/12/2021 NAV of c. 30%. One change
this year is the move to quarterly NAV announcements, the first of
which is expected to be announced on 27 April 2022 (for the NAV as
at 31/03/2022)...
CLICK HERE TO READ THE FULL REPORT
Visit http://www.trustintelligence.co.uk/investor for more high
quality independent investment trust research.
Important information
This report has been issued by Kepler Partners LLP. The analyst
who has prepared this report is aware that Kepler Partners LLP has
a relationship with the company covered in this report and/or a
conflict of interest which may impair the objectivity of the
research.
Past performance is not a reliable indicator of future results.
The value of investments can fall as well as rise and you may get
back less than you invested when you decide to sell your
investments. It is strongly recommended that if you are a private
investor independent financial advice should be taken before making
any investment or financial decision.
Kepler Partners is not authorised to make recommendations to
retail clients. This report has been issued by Kepler Partners LLP,
is based on factual information only, is solely for information
purposes only and any views contained in it must not be construed
as investment or tax advice or a recommendation to buy, sell or
take any action in relation to any investment.
The information provided on this website is not intended for
distribution to, or use by, any person or entity in any
jurisdiction or country where such distribution or use would be
contrary to law or regulation or which would subject Kepler
Partners LLP to any registration requirement within such
jurisdiction or country. In particular, this website is exclusively
for non-US Persons. Persons who access this information are
required to inform themselves and to comply with any such
restrictions.
The information contained in this website is not intended to
constitute, and should not be construed as, investment advice. No
representation or warranty, express or implied, is given by any
person as to the accuracy or completeness of the information and no
responsibility or liability is accepted for the accuracy or
sufficiency of any of the information, for any errors, omissions or
misstatements, negligent or otherwise. Any views and opinions,
whilst given in good faith, are subject to change without
notice.
This is not an official confirmation of terms and is not a
recommendation, offer or solicitation to buy or sell or take any
action in relation to any investment mentioned herein. Any prices
or quotations contained herein are indicative only.
Kepler Partners LLP (including its partners, employees and
representatives) or a connected person may have positions in or
options on the securities detailed in this report, and may buy,
sell or offer to purchase or sell such securities from time to
time, but will at all times be subject to restrictions imposed by
the firm's internal rules. A copy of the firm's Conflict of
Interest policy is available on request.
PLEASE SEE ALSO OUR TERMS AND CONDITIONS
Kepler Partners LLP is authorised and regulated by the Financial
Conduct Authority (FRN 480590), registered in England and Wales at
70 Conduit Street, London W1S 2GF with registered number
OC334771.
This information is provided by Reach, the non-regulatory press
release distribution service of RNS, part of the London Stock
Exchange. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
Reach is a non-regulatory news service. By using this service an
issuer is confirming that the information contained within this
announcement is of a non-regulatory nature. Reach announcements are
identified with an orange label and the word "Reach" in the source
column of the News Explorer pages of London Stock Exchange's
website so that they are distinguished from the RNS UK regulatory
service. Other vendors subscribing for Reach press releases may use
a different method to distinguish Reach announcements from UK
regulatory news.
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.
END
NRAGCGDXXGBDGDB
(END) Dow Jones Newswires
March 11, 2022 04:08 ET (09:08 GMT)
Oakley Capital Investments (LSE:OCI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Oakley Capital Investments (LSE:OCI)
Historical Stock Chart
From Apr 2023 to Apr 2024
