The interim consolidated financial statements of the Company have been prepared on a going concern basis and under the historical cost convention, except for financial instruments at fair value through profit and loss, which are measured at fair value.
The Directors are cautious of the state of the global economy and the local trading environments of their investments but are confident the Company has sufficient cash reserves to meet all liabilities as they fall due for the foreseeable future.
The Board of Directors has assessed whether it is appropriate to adopt the going concern basis of accounting in preparing these interim consolidated financial statements. As part of this assessment, the Board of Directors have considered a wide range of information relating to the present and future conditions, as well as the impact on investment and sale expectations for each of the Oakley Funds, cash flow projections and the longer-term strategy of the Company.
As part of the assessment, the Board of Directors:
- Assessed liquidity, solvency and capital management. The Company considered liquidity risk as the risk that the Company may encounter difficulty in meeting obligations arising from its financial liabilities that are settled by delivering cash or another financial asset, or that such obligations would have to be settled in a manner disadvantageous to the Company. Unfunded commitments to the Oakley Funds are irrevocable and can exceed cash and cash equivalents available to the Company. Based on current cash flow projections and barring unforeseen events, the Company expects to be able to meet its obligations as they fall due.
As at 30 June 2026, cash and cash equivalents of the Company amount to £80.9 million. The Company has total outstanding commitments of £939.8 million relating to the Oakley Funds which, other than c.£300.0 million, are expected to be called over the next five years. Under the Company’s by-laws, the Company is permitted to borrow up to 50% of Gross Asset Value which would amount to approximately £770.0 million for the interim period ended 30 June 2026. As at 30 June 2026, the Company had drawn down £250.6 million including accrued interest of £3.0 million across the £325.0 million loan facility. Subsequent to the period-end, the Board and lenders approved a further £75 million increase in the Company's facility limit. The Directors consider the Company to have sufficient resources and liquidity and can continue to operate for a period of at least 12 months;
- Considered the estimates inherent to the valuations of the Oakley Funds and the unquoted debt and equity securities. The Company’s approach to valuations was consistent with the prior year’s approach. In addition, key assumptions and estimates relating to the valuation of the unquoted debt instruments were considered. This included assessment of counterparty risk, interest rates and future cash flow projections; and
- Assessed the operational resilience of the Company’s critical functions, which includes monitoring the performance of the Company’s key service providers.
The Board of Directors considers it appropriate to prepare the Financial Statements of the Company on the going concern basis.
2.1 Basis of accounting
The interim consolidated financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with the latest Annual Report and Consolidated Financial Statements as at and for the year ended 31 December 2025, which were prepared in accordance with International Financial Reporting Standards ('IFRS'). These interim consolidated financial statements do not include all the information required for a complete set of IFRS financial statements. However, the explanatory notes are included to explain events and transactions that are significant to an understanding of changes in the Company’s financial position and performance since the last annual consolidated financial statements.
During the period, OCI Financing (Bermuda) Limited, a wholly owned subsidiary of the Company, was liquidated. Control ceased upon completion of the liquidation and the subsidiary was deconsolidated from that date. Accordingly, as the Company had a subsidiary during the period, the interim financial statements continue to be prepared on a consolidated basis.
The interim consolidated financial statements were authorised for issue on 9 September 2026 by the Company’s Board of Directors.
2.2 Functional and presentation currency
The interim consolidated financial statements are presented in GBP, which is the Company's functional currency.
Transactions and balances
Transactions in currencies other than GBP are recorded at the spot rates of exchange prevailing on the dates of the transactions.
At each reporting date, investments and other monetary assets and liabilities that are denominated in foreign currencies are translated at the closing spot rates prevailing on the reporting date. Non-monetary assets and liabilities that are measured at fair value in foreign currencies are also translated into GBP at the spot exchange rate at the reporting date.
Capital drawdowns and proceeds of distributions from the Oakley Funds in foreign currencies, and income and expense items denominated in foreign currencies, are translated into British pounds at the exchange rate on the respective dates of such transactions.
Foreign exchange gains and losses on other monetary assets and liabilities are recognised in net foreign currency gains and losses in the consolidated statement of comprehensive income.
The Company does not isolate unrealised or realised foreign exchange gains and losses arising from changes in the fair value of investments. All such foreign exchange gains and losses are included with the net realised and unrealised gains or losses on investments in the consolidated statement of comprehensive income.