News

Interim results for the six months ended 30 June 2024

Oakley Capital
12.09.24
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Oakley Capital Investments Limited ("OCI" or the "Company") today announces its interim results for the six months ended 30 June 2024. OCI is a listed investment company providing consistent, long-term returns in excess of the FTSE All-Share Index by investing in funds managed by Oakley Capital ("Oakley").

The Oakley Funds invest primarily in unquoted, profitable, pan-European businesses with recurring revenues, and across four core sectors: Technology, Education, Consumer and Business Services. Oakley's origination capabilities and proven value creation drivers help founders and management teams accelerate growth and produce consistently superior returns for investors.

ST Still Interim 2024

Watch our interview with Oakley Capital Partner, Steven Tredget to find out more.

Significant investment activity lays foundation for future returns

Highlights for the six months ended 30 June 2024

NAV per share

708p

as at 30 June 2024

Net Asset Value

£1,249m

as at 30 June 2024

Total NAV return per share

4%

since 31 December (+26 pence)

Total shareholder return

5%

as at 30 June 2024

New Investments

£184m

as at 30 June 2024

Cash and undrawn credit facilities

£184m*

as at 30 June 2024

  • Total outstanding Oakley Fund commitments of £805 million to be deployed over the next five years
  • Half-year dividend of 2.25 pence per share

Portfolio highlights

  • Average portfolio company year-on-year organic EBITDA growth of 14% (FY2023: 14%)
  • Average portfolio company valuation multiple (EV/EBITDA) of 16.4x (FY2023: 16.4x)
  • Average net debt/EBITDA ratio of 3.9x (FY2023: 4.2x)
  • The key drivers of NAV growth were:
    - Portfolio companies (+41 pence): valuation gains in the underlying investments with IU Group (+8 pence), Phenna Group (+7 pence), Dexters (+6 pence) and Cegid (+5 pence) being the largest contributors
    - Foreign exchange impact (-12 pence), largely attributable to a 2.4% change in EUR:GBP

 

Portfolio overview

OCI's portfolio of private equity investments delivered positive trading momentum:

Earnings - an average 14% organic EBITDA growth has been maintained in spite of the economic backdrop, demonstrating the persistence of the long-term trends invested behind and the impact of Oakley’s value creation

Valuations - the average portfolio EV/EBITDA multiple of 16.4x remains unchanged year on year reflecting a conservative approach to valuation

Leverage – at 3.9x, the average net debt/EBITDA has continued to contract as debt is cautiously deployed within new and existing portfolio investments

Read more about the Portfolio's performance in the Half Year Report here.

Transactions

OCI completed look-through investments totalling £184 million, including:

New platform deals - £124 million

Alerce, Origin I

Alerce, an Iberian transport and logistics software business

£9m

Alerce Newspost

Steer Automotive Group, Fund V

Steer Automotive Group, the UK’s leading independent auto collision repair group

£66m

Steer Listing Image 2

Horizons Optical, Origin I

Horizons Optical, a medical software provider based in Spain

£9m

Horizons Optical

ProductLife Group, Fund V

ProductLife Group, a France-based provider of regulatory and compliance services to the global life sciences industry

£40m

PLG Banner 2

Announced transactions which completed post period-end or are expected to complete in H2 2024, include:

Investments
Realisations
Investments
Realisations
Vitroconnect Banner

vitroconnect, Origin II

£20 million

vitroconnect, a broadband open access platform based in Germany. The transaction completed in July 2024

I TRACING

I-TRACING, Fund V

£39 million

I-TRACING, a cybersecurity firm based in France. The transaction is expected to complete in H2 2024

Idealista CTA

idealista, Fund IV

idealista: the sale of the southern European real estate classifieds platform was agreed during the period. The transaction is expected to complete in H2 2024 and OCI’s look-through share of proceeds is anticipated to be c. £70 million

Ocean Technologies Group

Ocean Technologies Group, Fund IV

Ocean Technologies Group: agreed sale of leading independent software provider to the maritime industry. The transaction is expected to complete in H2 2024, with a look-through share of proceeds anticipated to be c. £50 million

Read more about OCI's recent transactions in the Half Year Report here.

Direct Investments

During the period, OCI’s direct investments continued to perform well. North Sails benefitted from strong trading in its Masts and Sails divisions and the business further expanded its portfolio of best-in-class ocean sport brands with two significant acquisitions. Time Out sustained its positive momentum, with both Media and Market sales accelerating during the final quarter of the Group’s financial year and the Group seeing increasing synergies between the businesses.

Read more about OCI's direct investments in the Half Year Report here.

Cash & commitments

  • Cash - OCI had £128 million cash and undrawn credit facilities of £56 million as at 30 June 2024
  • Commitments - total outstanding commitments to existing Oakley Funds were £805 million at the period end. This will be deployed over the next five years

The Board closely monitors anticipated fund drawdowns and projected liquidity and will continue its long-term commitment to share buybacks when appropriate.

See OCI's Balance Sheet in the Half Year Report here.

Outlook

The prospects of the existing portfolio, in combination with a strong pipeline of new opportunities, support the continued delivery of outperformance:

  • The trading of a focused portfolio of private equity investments is expected to continue gaining momentum supported by Oakley’s value creation methods including M&A, talent hires, internationalisation, and AI & data analytics
  • Attractive deal flow is set to continue as Oakley’s differentiated, founder-led orientation unearths uncontested, complex transactions at compelling valuations
  • In spite of a still subdued global M&A market, the appeal of the Oakley Fund portfolio assets is expected to result in possible further realisations
Quote Caroline Foulger

It is pleasing to report continuing momentum in OCI’s NAV growth, driven by higher earnings across a portfolio of tech-enabled, disruptive businesses that have demonstrated an ability to perform regardless of the economic backdrop. This once again underlines the attractive nature of Private Equity and the outcomes achievable through investing longer-term capital in high-growth, high-potential private businesses, coupled with hands-on management that influences the investment outcome.

Caroline Foulger

Chair — Oakley Capital Investments

Quote Peter Dubens

This has been a period of considerable investment activity for Oakley with new deals in France, Germany, Spain and the UK, and across a wide range of sub-sectors. It demonstrates our truly pan-European approach to investing, as well as our ability to unearth promising innovative businesses, led by exceptional entrepreneurs and management teams. These are the critical ingredients behind Oakley’s success, and we believe they will always be core to our future performance.

Peter Dubens

Managing Partner — Oakley Capital

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