Oakley Capital Investments Limited Trading update for the six months ended 30 June 20 (3966U)

TIDMOCI

RNS Number : 3966U

Oakley Capital Investments Limited

29 July 2020

29 July 2020

Oakley Capital Investments Limited

Trading update for the six months ended 30 June 2020

Resilient performance despite COVID-19 disruption

Oakley Capital Investments Limited(1) (the "Company"), a listed investment vehicle providing investors access to the Oakley Funds(2) , today announces a trading update for the six months ended 30 June 2020.

Interim highlights

 
 
        *    Net Asset Value ("NAV") per share of 356 pence 
 
 
        *    Total NAV return per share of 4% (+13 pence) since 31 
             December 2019 
 
 
        *    OCI invested GBP94.7 million and received proceeds of 
             GBP291.3 million 
 
 
        *    Cash of GBP261.5 million 
 
 
        *    Outstanding Oakley Fund commitments of GBP528 million, 
             including an Origin Fund commitment of EUR 75 million 
 
 
        *    Buy-back and cancellation of 4.3 million shares 
 

NAV growth

The Company's NAV as at 30 June 2020 is estimated to be GBP691 million, which represents a NAV per share of 356 pence. This is a total NAV per share return including dividends of 4% (+13 pence) since 31 December 2019 and 13% (+42 pence) since 30 June 2019. The largest drivers of NAV movement in the six months to June 2020 were:

 
 
        *    Time Out (-26 pence) - Market closures and 
             advertising decline as a result of COVID-19 lockdowns 
             led to a share price fall of 68%. Successful GBP47 
             million refinancing completed in June 
 
 
        *    Inspired (+10 pence) - Sale of remaining stake at a 
             25% uplift to the December 2019 carrying value 
 
 
        *    Career Partner Group (+9 pence) - Record student 
             registration to online courses drove fair value 
 
 
        *    FX (+16 pence) - Favourable exchange movements 
             arising from a 7% appreciation of the euro against 
             the pound 
 

Portfolio company performance

During the period, the Oakley Funds were generally resilient to the challenges posed by COVID-19. This reflects the level of portfolio company bias towards software, tech-enabled services, online platforms and subscription-based revenue. The 15 portfolio companies can be separated into three COVID-19 impact categories:

 
            1. Trading unimpacted or benefitting - five companies - 23% 
             of NAV 
             Business Service Software, Web Hosting and Education Technology 
             businesses. Each grew their revenues at or above expectations 
             in the period. Four of these five investments were made within 
             the last 12 months and their fair value at 30 June 2020 remains 
             at cost. 
             2. Some short-term disruption - seven companies - 27% of NAV 
             Online Consumer Platforms, Telecoms and Education businesses. 
             Whilst there has been a short-term impact on financial performance, 
             the full year results are expected to be close to original 
             budgets. 
             3. Significant lockdown impact - three companies - 28% of 
             NAV 
             Physical footprint, direct to consumer businesses including 
             Time Out, North Sails and Iconic BrandCo (the consumer brand 
             platform that has to date acquired Alessi and Globe-Trotter). 
             Whilst each suffered material disruption between March and 
             May, they remain strong businesses with both North Sails and 
             Iconic BrandCo enjoying a surge in activity levels in June 
             and July. Time Out's performance remains restricted by its 
             Market closures, though these have started to reopen. 
 

Proceeds

During the period, the Company's share of proceeds from Fund III's exit of WebPros, the partial realisation of atHome, the refinancing of Career Partner Group, Fund II's exit of Inspired, as well as the exit of OCI's direct holding in Inspired and the repayment of Time Out loans together contributed GBP291.3 million.

Investments

In the six months to 30 June 2020, OCI invested GBP94.7 million through: a re-investment in WebPros and two bolt-on acquisitions for Ocean Technologies Group via Fund IV, the Iconic BrandCo's acquisition of Globe-Trotter via Fund III, equity participation in Time Out's refinancing via Fund I and a direct investment, and direct debt investments provided to North Sails.

During the period, OCI also completed the buy-back and cancellation of 4.34 million shares at an average price of 173 pence per share.

Cash & Commitments

The Company has no leverage and has cash on the balance sheet of GBP261.5 million at 30 June 2020, comprising 38% of NAV, placing OCI in a strong position in the current environment. In July 2020 a commitment of EUR75 million was made to the Oakley Capital Origin Fund, the latest Oakley Fund, taking total outstanding OCI Fund commitments to GBP528 million. This will be deployed in new investments over a five-year period.

The Company expects to report its interim results for 2020 on Thursday 10 September 2020.

- ends -

For further information please contact:

Oakley Capital Limited

[phone]

Steven Tredget, Investor Relations

Greenbrook Communications Limited

[phone]

Alex Jones / Gina Bell / James Williams

Liberum Capital Limited (Financial Adviser & Broker)

[phone]

Gillian Martin / Owen Matthews

Notes:

This announcement contains inside information for the purposes of the Market Abuse Regulation (EU) No. 596/2014

LEI Number: 213800KW6MZUK12CQ815

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

OCI is a Specialist Fund Segment ("SFS") traded investment vehicle, which provides access to the Oakley Funds(2) . It is a liquid vehicle that aims to provide capital growth and dividends to investors.

An introduction to OCI video is available at https://oakleycapitalinvestments.com/videos/

(2) 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 and Oakley Capital Origin Fund are unlisted lower-mid to mid-market private equity funds with the aim of providing 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 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.

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 information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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July 29, 2020 02:00 ET (06:00 GMT)