Trading Update for the six months ended 30 June 2023

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 ("Oakley"), thereby capturing the outperformance of a leading private equity manager.

The Oakley Funds invest primarily in unquoted, profitable, pan-European businesses with recurring revenues, and across four sectors: Technology, Consumer, Education and Business Services⁽¹⁾. Oakley's origination capabilities combined with proven value creation drivers help management teams accelerate growth and produce consistently superior returns for investors.   

Resilient NAV and strengthened balance sheet

NAV growth

The Company’s unaudited NAV, based on a revaluation of all portfolio companies as at 30 June 2023, was £1,169 million, which represents a NAV per share of 663 pence. The total NAV per share return, including dividends, was 0.5% (+3 pence) since 31 December 2022. The total return includes 17 pence of valuation gains in the underlying portfolio companies less 15 pence of foreign exchange impact, due to the 3% movement in EUR:GBP. The modest increase in asset value reflects the Company’s cautious approach to trading outlook and valuation multiples, and the fact that half of the NAV was not subject to change in the period. This results from approximately 50% of the asset value being held in cash, or underlying investments that were valued based upon a transaction within the last 12 months. 

Portfolio company outlook

OCI’s underlying portfolio of tech-enabled businesses are expected to continue to deliver robust trading performances in the challenging macroeconomic environment as customers continue to shift spending online, switch to SaaS solutions and invest in education, thereby underpinning NAV and demonstrating the enduring power of the long-term megatrends that Oakley invests behind. 

Transactions

During the period, OCI’s look-through share of proceeds from realisations was £240 million and it made look-through investments of £96 million.

Additionally, the Oakley Funds made further investments with the acquisition of Fastcase, a legal intelligence business which has been combined with Oakley portfolio company vLex; an investment in premium schools group Thomas's London Day Schools; and a bolt-on acquisition to Affinitas Education, XIC, a single-site school based in Spain. 

Cash & commitments

OCI had net cash of £248 million as at 30 June 2023. Post period end, OCI renewed and expanded its revolving credit facility, raising total committed lending to £175 million for a two-year term. As at 26 July 2023, the facility was undrawn.  

On 30 June 2023 OCI made a US $100 million commitment to the Oakley Touring Venture Fund, a strategy established to invest in proven next generation enterprise software companies powered by generative AI. Total outstanding Oakley Fund commitments, including this, at the period end were £893 million which are expected to be drawn over the next 5 years. 

For more information on the Oakley Fund strategies in which OCI invests, please click here. 

OCI's latest quarterly factsheet can be accessed here.  

The Company expects to report its unaudited interim results for the six months to 30 June 2023 on 14 September 2023. 

(1) Business Services

Business Services is a newly classified Oakley sector, which reflects the Investment Adviser’s growing track record in information platforms and Testing, Inspection, Certification, and Compliance ("TICC"). These investments were previously categorised under Technology.

For more information on Business Services and the other Oakley focus sectors, please click here.