TIDMOCI

RNS Number : 8351T

Oakley Capital Investments Limited

27 July 2022

27 July 2022

Oakley Capital Investments Limited

Trading update for the Three Months ended 30 June 2022

Oakley Capital Investments Limited(1) ("OCI" or the "Company") today announces its quarterly trading update for the three months ended 30 June 2022. OCI is a listed investment company providing consistent, long-term returns in excess of the FTSE All-Share Index by investing in the funds managed by Oakley Capital(2) ("Oakley").

The Oakley Funds(3) invest primarily in unquoted, pan-European businesses across three sectors: Technology, Consumer and Education. Oakley's origination capabilities combined with proven value creation drivers generate sustainable growth and consistently superior returns for investors.

Strong demand for assets and robust earnings outlook for portfolio companies drive total quarterly NAV return of 11%

Highlights for the period

 
 --   Net Asset Value ("NAV") per share of 630 pence and NAV of GBP1,119 million 
 --   Total NAV return per share of +11% since 31 March 2022 (+61 pence), and +17% since 31 December 
       2021 (+94 pence) 
 --   GBP30 million in new investments during the period 
 --   c.GBP112 million share of sale proceeds expected post period-end 
 --   New GBP100 million revolving debt facility adds flexibility and liquidity 
 

NAV growth

The Company's unaudited NAV, based on portfolio company valuations at 30 June 2022, was GBP1,119 million, which represents a NAV per share of 630 pence. The NAV per share return including dividends was 11% (+61 pence) since 31 March 2022, and an increase of 94 pence (17%) since year-end. In the three months to 30 June 2022, 67% of the increase in the portfolio's value was driven by EBITDA growth and 33% by multiple expansion, the latter driven by the multiples achieved for signed exits in the period, all of which were at significant premiums to prevailing book value. The 61 pence total return includes 46 pence of valuation gains, 11 pence of foreign exchange movements and 2 pence of dividends, while share buybacks added 1 penny.

Portfolio company performance

In a period of heightened market and economic uncertainty, Oakley's portfolio of digitally-enabled companies continued to deliver robust earnings growth, underpinned by long-term, enduring market tailwinds such as business and consumer digitisation and a focus on recurring and subscription revenues.

Transactions

During the period, OCI made look-through investments of GBP30 million, largely attributable to the investment in Vice Golf, a digital-first golf brand with a strong track-record of profitable growth, as well as a number of portfolio company bolt-on acquisitions.

During the quarter, Oakley agreed the sale and reinvestment in web-hosting business Contabo as well as the sale of the investment in Italy's leading price comparison website, Facile, both at significant premiums to their carrying values. The transactions are due to complete later this year, and OCI's look-through share of proceeds is expected to total c.GBP112 million.

Cash & commitments

OCI had cash on the balance sheet of GBP97 million at 30 June 2022, comprising 9% of NAV. This excludes anticipated proceeds from agreed deals that are yet to complete. Total outstanding Oakley Fund commitments as at 30 June 2022 were GBP993 million. They will be mostly deployed into new investments over the next five years, funded with existing balance sheet cash as well as expected proceeds from exits announced during the period and future realisations. During the period, the Company also agreed a GBP100 million revolving credit facility with major lenders, thereby increasing OCI's flexibility and liquidity.

Post-balance sheet events

Post period-end, portfolio company TechInsights completed its bolt-on acquisition of Strategy Analytics, a leading provider of syndicated research into the consumer technology sector. Oakley Capital also announced the strategic combination of Grupo Primavera with Cegid, the French market leader in SME business software. As part of the transaction, Oakley will increase its stake in Grupo Primavera and roll over its equity into Cegid. The transaction is expected to complete later this year. OCI's total look-through investment from these acquisitions is expected to total c.GBP31 million.

OCI's latest quarterly factsheet can be accessed here .

The Company expects to report its unaudited interim results for the six months to 30 June 2022 on 8 September 2022.

- ends -

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

Liberum Capital Limited (Financial Adviser & Broker)

+44 20 3100 2000

Chris Clarke / Darren Vickers / Owen Matthews

Notes:

This announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as amended by The Market Abuse (Amendment) (EU Exit) Regulations 2019.

LEI Number: 213800KW6MZUK12CQ815

(1) About Oakley Capital Investments Limited ("OCI")

OCI is a Specialist Fund Segment ("SFS") traded investment vehicle whose purpose is 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 L.P. and its successor funds, Oakley Capital Private Equity II, Oakley Capital Private Equity III, Oakley Capital IV, Oakley Capital V and Oakley Capital Origin Fund 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.

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.

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