Met with Laurie and Jackson during this raise process. Came across very well, and am impressed at his investment philosophy. Lots of overlap in names we look at, so plenty of scope to work together. Highly recommend listening to him talk about the importance of tangibility in his theses, super interesting stuff. We dipped our toe in to support the raise, pleased to be on board! |
LH - not LHR (typo!) |
Good interview from LHR yesterday in the Vox platformhttps://www.voxmarkets.co.uk/media/674dbb16c04c3a54cfa9760a/ |
Added more in June and participated in the recent placing. One of the best UK small cap trusts. Expect Onward to hit new price levels as we go forward.
west |
I have made a small investment so expect big things . Just saying !! |
Very good news from TRT this morning |
Vox markets with Paul hill released hxxps://x.com/capitalpmh/status/1735661582565228817?s=46&;t=0PCXfgezWGeUMmdUYfwnSQ
lots of investment activity |
turgidly boring interview |
Great interview with ONWD fund manager Laurence Hulse, with Michael Taylor |
Nice result from their small investment in 'FIRE ANGEL' |
"the deployment of 98% NAV into 10 UK Gilts and treasury-bills that are earning a running yield in excess of 4% for the company." Good to see All instruments
have a maturity duration of less than six months. However - Blackrock ISG Sterling now yielding approx 4.95%. |
 Lesson Two: You're almost always wrong before you are right
For Laurence Hulse, who manages UK smaller companies' specialist Onward Opportunities, an internship at Barclays Capital when he was 18 brought a lesson he has lived by all his life.
'You're almost always wrong before you are right. This was one of the first 'lessons' I was ever taught,' Hulse says. During his time at Barclays under revered equity trader Howard Spooner, Hulse learned that because you do not usually time the market perfectly, your investment is likely to fall at first. 'Other than in the unlikely event when you buy at the very lowest price or sell at the very highest price to the penny, you have got to be prepared to be wrong initially,' Hulse says.
He adds that when you buy a share and it falls to start with or sell a share only to see the price rise, you 'look and feel wrong' even though you may well have made the right call in the long term.
As a result of this lesson, he has learned not to make sudden swerves in his trading. 'We very rarely trade into or out of a company in one transaction, as to do so would be to assume you have timed things perfectly.' |
Laurence Hulse of Onward Opportunities YouTube interview here:
10/05/2023 |
From ONWD's Factsheet Q2 2023
Portfolio Commentary:
Our first action on day 1 of trading was the deployment of 98% NAV into 10 UK Gilts and treasury-bills that are earning a running yield in excess of 4% for the company. From this start point, we have carefully invested c.18% NAV into 6 initial investments – each being 2% NAV or less. These are ideas where our initial work has flagged attractive upside potential and we look forward to updating shareholders on these further as due diligence completes. We also took our first core position, deploying c.6% NAV into Angling Direct (ANG LN), the UK’s leading retailer of fishing equipment and tackle. |
ONWD's first core position is in ANG. I also started buying ANG a month before ONWD
ONWD's first Factsheet Q2 2023
"With Angling Direct, we believe we have found an outstanding value opportunity hiding in plain sight; an attractive asymmetric risk profile underpinned by a net cash balance (£14m), that is c.65% of the market cap (c.£22m). The company represents either a growth or value investment, depending on various strategic decisions in the coming months. The business has a dominant market position in the
UK, where it is profitable and cash generative from a repeat customer base of anglers, where market share can be grown further. These metrics are targeted to improve under new management supported by a UK consumer recovery. More
recently, the business has been attempting to enter the much larger European market to provide additional earnings growth. Success has been limited so far, with annual losses that are material in the context of overall group profits, albeit
in difficult conditions, whereas the UK business generates an EBITDA that is about double the current group number (which includes European losses) even in the recent tough trading conditions of 2022. Upside comes from when the European strategy starts to bear fruit in the near term and contribute profitable growth to the group, or from when it can be wound down to remove the losses from group profits and opportunity cost, and we would be left with a value investment in a leading UK retailer trading on less than 2x EV/EBITDA. We estimate a 6-month payback on a closure of the European strategy. Either of these outcomes would add more than 50% to EBITDA and this optionality is in the context of our entry valuation on Angling Direct of c.£20m, of which c.£14m is net cash and there is a further c.£16m of stock. ONWD shareholders, who have backed our active and engaged approach, can expect us to be working hard to drive one of these two profitable outcomes on our investment. We have noted with interest the consolidation of angling retailers in the USA and Nordic countries in recent years." |
Megasteel, which is currently arranging a RTO into TMOR, also looks to fit ONWD's criteria well:-
17/04/2023 07:00 UK Regulatory (RNS & others) More Acquisitions PLC Update on Proposed RTO LSE:TMOR More Acquisitions Plc
"Further to the announcement on 23 September 2022 regarding the proposed acquisition by More of Megasteel Limited ("Megasteel") (the "RTO" or the "Proposed Acquisition"), the Company is pleased to confirm that preparations for the publication of a prospectus and admission of the enlarged group to trading on the London Stock Exchange are now well advanced.
The Directors of More are also pleased to confirm that the Company and Megasteel are currently undertaking an investor roadshow as part of the Proposed Acquisition.
Rod McIllree, Executive Director of More Acquisitions plc, said:
"We are pleased to report that the RTO is progressing well. We are particularly encouraged by the strong level of interest that has been being shown in Megasteel by the UK investment community to date. We are increasingly confident that shareholders can expect completion of the RTO within this quarter, subject to FCA and other relevant approvals."
Nigel Roberts, CEO of Megasteel Limited, said:
"We are very pleased that we are are now in the final stages of the proposed RTO of Megasteel Ltd by More Acquisitions PLC. I have met with several existing shareholders of More and also potential shareholders and I look forward to concluding the process speedily and successfully."" |
The Amocri Group, which is currently arranging a RTO into ROC, also looks to fit ONWD's criteria well:-
15/11/2022 15:56 UKREG Rockpool Acquisitions PLC Potential Reverse Takeover & Suspension of Listing
"Rockpool Acquisitions Plc, the Special Purpose Acquisition Company ("SPAC") formed to undertake the acquisition of a company or business headquartered or materially based in Northern Ireland or alternative transactions with suitable targets, including those that may not have a direct connection with Northern Ireland , has entered into heads of terms ("Heads") relating to the proposed acquisition (the "Acquisition") of the entire issued and to be issued share capital of Amcomri Group Limited ("Amcomri"), the holding company of a fast-growing, acquisitive group of quality UK Engineering and Manufacturing businesses
The group consists of nine SMEs acquired over the past five years in those industrial sectors, and has a wealth of experience in optimising business performance
The Group primarily provides a range of specialist engineering and equipment services to the power, rail, petrochemical, process and production electronics industries in the UK and Ireland. Within these sectors it offers a range of services and equipment to allow asset owners to extend the operating life of key high value critical assets or associated infrastructure
More recently it has established a second focus area in specialist printing in which it owns a further two operating companies, its most recent acquisition in this sector being Bex Design & Print Limited, a 35-year-old specialist screen and digital print business supplying into the electronics and other industries ...
Mike Irvine, co-founder and Non-Executive Director of Rockpool, said: "I am delighted that we are able to announce the potential acquisition of Amcomri which is intended to see Rockpool transform from a SPAC into a profitable trading enterprise. Amcomri's track record of successfully acquiring businesses and its wealth of experience in optimising business performance when combined with the opportunities for further acquisitions that a listing should provide, make the Acquisition a transaction that should create value for both the Rockpool and Amcomri shareholders."" |
30/03/2023 07:00 UK Regulatory (RNS & others) Onward Opportunities Limited Admission to AIM and First Day of Dealings LSE:ONWD Onward Opportunities Limited
"... Investing policy
The Company will seek to achieve its investment objective by investing primarily in equity and equity-related securities of UK smaller companies that are predominantly listed or admitted to trading on markets operated by the London Stock Exchange, and where it is considered that there is a material potential valuation upside that can be delivered from catalysing strategic, operational or management initiatives
In order to ensure that the Company is able to maintain its approach of active engagement with investee companies, and to encourage and support value creation, the Company will typically target meaningful minority stakes in investee companies of between 5 per cent. And 25 per cent. Of the issued share capital
Whilst the Company has no limitation on the size of the companies in which it can invest, the Company typically expects to invest in companies with market capitalisations of no more than GBP250 million (with a particular focus on those below GBP100 million) at the time of investment. The Company will therefore focus on investments in the "micro" smaller companies sector and on companies admitted to trading on AIM
Investee companies will typically have certain of the following characteristics:
-- balance sheet asset backing;
-- a competitive advantage and/or strong management track record;
-- attractive cash flow potential;
-- visibility of earnings/future earnings improvement;
-- potential for liquidity and/or exit in line with the Company's targeted hold period;
-- scope for an active shareholder to trigger value creation; and/or
-- foreseeable events and catalysts to unlock intrinsic value
Investments may be either direct investments made by the Company, or indirect investments made by the Company through similar funds or investment vehicles. The Company may make its investments for cash or for share consideration
Although investments will not be restricted to specific sectors, the Company does not expect to pursue or make investments into companies in the biotechnology sector or in companies directly involved in extractive industries (such as mining or oil and gas)
Whilst the Company will initially seek to take minority stakes in investee companies of between 5 per cent. And 25 per cent. And will not typically seek to take majority positions in investee companies, it will not be restricted from taking a majority position if considered appropriate by the Portfolio Manager
The Company's portfolio is expected to be relatively concentrated, with a typical investment being between 2 per cent. And 10 per cent. Of Net Asset Value at the time of investment. This is expected over time to result in a portfolio of approximately 10 to 15 high conviction investments and a further 5 to 10 smaller portfolio holdings, in companies operating in a number of industries and geographic locations
Whilst the Company will target an investment holding period of three to five years, actual holding periods and exit strategies will depend on the underlying investment, the availability of exit opportunities and the size of the Company's investment. The Company may therefore dispose of investments outside of the target timeframe should an appropriate opportunity arise
The Company may hold cash in its portfolio from time to time to maintain investment flexibility. There is no limit on the amount of cash which may be held by the Company at any time. ..."
This new UK small cap. investing company floating last week is an indicator of currently depressed valuations in good opportunities.
And the checklist of characteristics they are looking for seems to fit NWT (Newmark Security) to a T:-
"Newmark Security in 2023: A Transformed Tech & USA Success Story" |
Current share price 6th. April 2023: 105p
12,750,010 shares in issue
Market capitalisation: £13.3875M.
"An Investment Company managed by a team with c.160 years combined experience, targeting a structural market opportunity in smaller companies within the UK"
30/03/2023 07:00 UK Regulatory (RNS & others) Onward Opportunities Limited Admission to AIM and First Day of Dealings LSE:ONWD Onward Opportunities Limited
"First Day of Dealings on AIM
Newly launched investment company with UK smaller company focus
Onward Opportunities Limited, the newly incorporated Guernsey incorporated non-cellular (closed-ended) investing company, is delighted to announce the admission of its entire issued ordinary share capital to trading on AIM, a market operated by the London Stock Exchange plc ("Admission").
Admission will take place, and dealings in the Company's ordinary shares of no par value ("Ordinary Shares") will commence, at 8.00 a.m. today under the ticker 'ONWD' .
Key Highlights:
-- The Company's investment objective is to seek to generate risk-adjusted absolute returns to shareholders through investments in UK smaller companies. Returns are expected to be principally derived from capital growth over a target three to five-year holding period with an appropriate diversification of investment risk.
-- Dowgate Wealth Limited will provide portfolio management services to the Company, with the investment team led by Investment Director Laurence Hulse (the "Portfolio Manager").
-- The Board and the Portfolio Manager therefore believe that a structural market opportunity exists in the UK smaller companies sector which can be exploited through the deep industry experience of the Portfolio Manager. The Board and the Portfolio Manager consider that implementing an active investment approach to investment identification and position management can lead to increased returns by targeting these inefficiencies.
-- Dowgate Wealth is an employee-owned, private company founded in 2020 by former Hargreave Hale colleagues. As at 30 January 2023, Dowgate Wealth has assets under administration in excess of GBP495 million.
-- In connection with Admission, the Company has conditionally raised Gross Proceeds of c.GBP12.8 million of initial capital pursuant to the Placing at a price of 100 pence per Placing Share. Net Proceeds are intended to be invested in accordance with the Company's investing policy.
-- The ISIN of the Ordinary Shares will be GGOOBMZR1514, the SEDOL of the Ordinary Shares BMZR151 and the Company's LEI number 2138000P1Q2B3E09LE92.
Cenkos Securities plc ("Cenkos") is acting as Nominated Adviser, joint broker and joint bookrunner to the Company. Dowgate Capital Limited ("Dowgate Capital") is acting as joint broker and joint bookrunner to the Company.
All capitalised terms used in this announcement and not otherwise defined shall have the meanings given to them in the Company's admission document dated 23 March 2023. The Company's admission document is available for viewing at www.onwardopportunities.co.uk .
Laurence Hulse, Investment Director of Dowgate Wealth, commented :
" We are pulling together for clients, the three core ingredients to make money; a clear market opportunity, a bespoke strategy to capture it and the people required to execute the plan. This launch puts in place the foundations to grow an investment company that can actively engage with UK smaller companies we identify value in. I would like to extend my thanks to our seed investors and the whole team for providing this fantastic onward opportunity to build upon. "
Andrew Henton, Chairman of the Board, Onward Opportunities Limited added :
" We believe that a structural market gap in the market exists within UK smaller companies which can be exploited through the deep industry experience of the investment team. We recognise that implementing an active approach to identifying these companies, and engaging with them, can support the SMEs that are the driving wheels of enterprise in the UK and lead to increased returns by targeting these inefficiencies. "
Mark Chadwick, Chief Executive Officer, Dowgate Wealth added :
" Dowgate Wealth is excited to be launching our first investment company, which sits right at home amongst the team's small cap investing heritage. The market volatility of 2022 has created a statistically interesting time to deploy capital into robust, well-researched investment ideas in the UK. We are confident that Onward Opportunities will prove to be a popular proposition for investors looking for an innovative product that can provide absolute returns. " .." |
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