Trading update for the year ended 31 December 2023

Oakley Capital Investments Limited ("OCI" or the "Company") today announces its trading update for the year ended 31 December 2023. 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 focus sectors. Oakley's origination capabilities combined with proven value creation drivers help management teams accelerate growth and produce consistently superior returns for investors.

Highlights for the year ended 31 December 2023

• Total shareholder return of 18%
• Investments of £175 million and share of proceeds of £266 million
• Year-end cash and available debt of £382
• Outstanding commitments of £1,017 million

NAV growth

The Company’s unaudited NAV as at 31 December 2023 was £1,207 million, which represents a NAV per share of 684 pence, based on portfolio valuations at year-end. The total NAV per share return including dividends was 4% (+27 pence) since 31 December 2022 and 1% (+8 pence) since 30 September 2023. Of the realised and unrealised portfolio uplift in the year, 65% of the increase was driven by EBITDA growth, and 35% as a result of multiple expansion. The largest contributions came from IU Group, which expanded enrolments 33% to 125,000 students during the year; North Sails, which generated revenue and profit growth led by the sails, masts and apparel business, ahead of target; and online property portal idealista, which posted strong results across its core markets in Southern Europe.

Portfolio company performance

In 2023, the underlying companies in OCI’s portfolio continued to trade well in an uncertain macroeconomic environment, thanks to their resilient, asset-light business models, usually with strong disruptive market positions and predictable, recurring cash flows. Companies across all of Oakley’s four sectors, Technology, Consumer, Education and Business Services, contributed to valuation gains.

Proceeds

OCI’s look-through share of proceeds from exits and refinancings during the year totalled £266 million, consisting of:

• Realisations - £240 million - IU Group exit at gross return of 85% IRR
• Refinancings - £26 million - idealista and Cegid completed debt refinancings

Investments

OCI made a total look-through investment of £175 million which included:

• New platform deals - £50 million 

• Reinvestment - £66 million - IU Group, benefitting from the next phase of the company’s growth, focused on leveraging AI and internationalisation
• Follow-on investments - £35 million – in addition to vLex's acquisition of Fastcase and 7NXT’s acquisition of 7Mind, 22 bolt-on acquisitions were completed by portfolio companies
• Venture investments - £24 million - investments in Oakley Touring Venture Fund and PROfounders III portfolio companies.

Post balance-sheet events

• Further new platform deals – up to c. £100 million - investments in Alerce and Steer Automotive Group. Both transactions are expected to complete within 1H 2024.

Cash & commitments

OCI’s total liquidity as at 31 December 2023 was £382 million, comprising £207 million of cash on the balance sheet and £175 million in undrawn credit facilities. OCI made a total commitment of $100 million in Oakley Touring Venture Fund, which focuses on AI-powered software companies, and €190 million in Origin II, taking the total outstanding commitments to the Oakley Funds to £1,017 million as at 31 December 2023. This will be deployed into new investments 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.

OCI's latest quarterly factsheet can be accessed here.

The Company expects to report its audited annual results for 2023 on 14 March 2024.