TIDMOCI

RNS Number : 6843Y

Oakley Capital Investments Limited

08 September 2022

8 September 2022

Oakley Capital Investments Limited

Interim Results for the Six Months ended 30 June 2022

Oakley Capital Investments Limited(1) ("OCI" or the "Company") today announces its interim results for the six 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"), thereby capturing the outperformance of a leading private equity manager.

The Oakley Funds(3) invest primarily in unquoted, pan-European businesses across three sectors: Technology, Consumer and Education. Oakley leverages its unique business founder network to source attractive investment opportunities and then applies proven value creation strategies to accelerate sustainable growth.

Financial Highlights

 
       Net Asset Value ("NAV") per share of 630 pence and NAV 
  --    of GBP1,119 million 
       Total NAV return per share of 17% (+94 pence) since 31 
  --    December 2021 and 42% since 30 June 2021 (+189 pence) 
       Total shareholder return of -7% 
  -- 
       Investments of GBP68 million and share of proceeds of GBP64 
  --    million 
       Period-end cash and available debt of GBP197 million. Expected 
  --    cash proceeds from transactions post period end of c.GBP110 
        million 
       Total outstanding Oakley Fund commitments of GBP993 million 
  -- 
       Buy-back and cancellation of just under 1 million shares 
  -- 
       Half-year dividend of 2.25 pence to be paid on 13 October 
  --    2022 to shareholders on the register on or before 23 September 
        2022 
 

Portfolio Highlights

 
       Average portfolio company year-on-year EBITDA growth of 18% 
  --    (2021 annual results: 28%) 
       Average portfolio company valuation multiple (EV/EBITDA) 
  --    of 13.7x (2021 annual results: 13.9x) 
       Portfolio value increase was 72% driven by EBITDA growth 
  --    and 28% by multiple expansion 
       Average net debt/EBITDA ratio of 3.9x (2021 annual results: 
  --    4.2x) 
       70% of portfolio companies deliver their products or services 
  --    digitally 
       The largest drivers of NAV movement were: 
  -- 
       IU Group (+38 pence) - valuation uplift underpinned by growth 
  --    in student enrolments 
       Contabo (+26 pence) - sale of business agreed at c.105% premium 
  --    to book value 
       Grupo Primavera (+8 pence) - strategic combination of business 
  --    with Cegid 
       Wishcard (+8 pence) - strong voucher sales drive revenue 
  --    growth 
       Foreign exchange (+19 pence) - +2% change in EUR:GBP, +10% 
  --    change in USD:GBP 
 

Investments

During the period, OCI made a total look-through investment of GBP68 million which was attributable primarily to the following platform deals, as well as the Grupo Primavera bolt on acquisitions of Cloudware S.A. and Eticadata:

 
       TechInsights (Fund IV) - GBP35 million - leading information 
  --    services platform for the semiconductor market 
       Vice Golf (Origin Fund) - GBP11 million - digitally native 
  --    golf brand 
       Affinitas Education (Fund IV) - GBP8 million - global K12 
  --    schools group 
 

During the period, OCI also completed the buyback and cancellation of just under 1 million shares at an average price of 409 pence per share, resulting in a NAV uplift of 1 pence. The OCI Board remains committed to its share buyback programme.

Cash & commitments

 
       Balance sheet - OCI had GBP97 million in cash at 30 June 
  --    2022, equal to 9% of NAV 
       Expected proceeds - OCI anticipates c.GBP110 million of 
  --    cash proceeds from transactions announced post-period end, 
        which are expected to complete later this year 
       Revolving credit facility - during the period OCI agreed 
  --    a GBP100 million facility with major lenders to increase 
        the Company's flexibility and liquidity 
       Commitments - OCI had outstanding commitments of GBP993 
  --    million at 30 June 2022. This will be deployed into new 
        investments over the next five years, funded with existing 
        balance sheet cash as well as expected proceeds from future 
        realisations 
 

Post balance sheet events

Oakley continued to sustain a high level of activity post-period end with a number of transactions due to complete after 30 June, including: the sale and reinvestment in both Contabo and Facile; the strategic combination of Grupo Primavera with Cegid, the French market leader in SME business software; the partial exit of Seedtag; as well as two new platform investments in Phenna Group and vLex.

Outlook

A portfolio of attractive, digitally-enabled businesses with recurring revenue models position Oakley and OCI for continued, resilient performance during a period of heightened economic uncertainty and accelerating inflation

 
       Long-term, enduring structural tailwinds continue to drive 
  --    demand for the products and services Oakley's portfolio 
        companies provide, as more businesses and consumers shift 
        online 
       Sustained, strong demand for Oakley's assets validate the 
  --    firm's investment strategy and replenish resources for 
        new investments 
       Unique origination strategy, proven value creation levers 
  --    and active management lay the foundations for future growth 
 

The Interim Report and Accounts are available on the Company's website:

https://oakleycapitalinvestments.com/publication-category/results-centre/

A video overview of the six-month performance is also available here:

https://oakleycapitalinvestments.com/videos/

Caroline Foulger, Chair of Oakley Capital Investments Limited, commented:

"We are pleased to report strong returns due to an excellent performance from the Oakley Funds. The period saw healthy realisations and robust earnings from Oakley's portfolio of tech-enabled businesses which underpinned strong NAV growth and comes after a very strong 2021. It is reassuring to see robust demand for Oakley's portfolio companies, which provides confidence in the quality of our underlying assets and the integrity of valuations at a time of significant market and economic uncertainty."

Peter Dubens, Managing Partner of Oakley Capital Limited, commented:

"In the teeth of a rapid economic slowdown and growing business uncertainty, we have sustained our track record of double-digit revenue growth while continuing to find exciting new businesses to back. We anticipate that a challenging operating environment lays ahead, however we remain focused on applying the same toolkit that has helped us sustain strong performance over two decades of investing: being the very best partner for ambitious business founders, applying our unique brand of active management, and carefully balancing our entrepreneurial ethos with deep sector expertise and effective value creation."

- ends -

Results presentation

A live presentation of the results, delivered by Oakley Capital Partner Steven Tredget, will take place at 9:00 BST today, Thursday 8 September 2022. The presentation will be available to view via video webcast at the following link: https://www.investis-live.com/oakley-capital/62fcf06e14e08212006fa776/dfdsq

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:

LEI Number: 213800KW6MZUK12CQ815

All FX rates are as at 30 June 2022. Contribution from post-balance sheet events is the subject to final FX rates and deal costs.

(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 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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END

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