Oakley Capital Investments Limited - Results for the six months ended 30 June 19

Earnings growth across portfolio and deal activity driving industry-leading returns

Oakley Capital Investments Limited1 (the "Company" or "OCI") today announces its interim results for the six months ended 30 June 2019.

FINANCIAL HIGHLIGHTS

  • NAV per share of £3.18 and NAV of £651 million
  • Total NAV return of 14% since 31 December 2018 and 23% since 30 June 2018
  • Total shareholder return of 33%
  • £38 million invested in Oakley Fund acquisitions
  • £57 million of proceeds returned from the Oakley Funds
  • 2019 interim dividend of 2.25 pence per share, to be paid on 24 October 2019 to shareholders on the register on 27 September 2019

 

PORTFOLIO HIGHLIGHTS

  • Fair value of the underlying portfolio companies grew by 25% on a like-for-like basis
  • Average portfolio company year-on-year EBITDA growth of 31%
  • Average portfolio company valuation multiple (EV/EBITDA) of 12.0x and net debt to EBITDA ratio of 4.1x
  • Positive revaluations across the Oakley Funds and co-investments, driven by continued strong performance from portfolio companies. Two notable contributors were Inspired, with a partial sale at an 80% premium to the book value as at 31 December 2018, and Time Out, whose share price increased 60% over the period

 

REALISATIONS AND DISTRIBUTIONS

  • Inspired - a partial sell-down returned £30 million to OCI
  • Career Partner Group and WebPros - refinanced in the period, returning £27 million

 

INVESTMENTS

  • Two investments completed during the period: Ekon and Seagull & Videotel. OCI's total indirect contribution through its interest in the Oakley Funds was £38 million
  • Three further investments have been signed but not completed since the beginning of the year, in which OCI is expected to invest £47 million via the Oakley Funds: Rastreator & Acierto, Alessi and Seven Miles
  • The five investments are expected to be made at an average EV/EBITDA multiple of 11.2x versus peer group comparable multiples of 13.4x
  • Co-investment debt of £19 million provided to North Sails, funding the relaunch of North Kiteboarding, including the acquisition of kiteboarding accessories brand Mystic, and increased marketing spend for North Sails Apparel

 

FUND UPDATE

  • Fund IV - Held a final close on €1.46 billion in June 2019, including an OCI commitment of €400 million. First investments signed: Seagull & Videotel and Seven Miles
  • Fund III - Alessi is the tenth and final platform investment in the Fund, which is now c.80% invested

 

COMPANY UPDATE

  • Outstanding commitments to the Oakley Funds amount to £502 million (77% of NAV) with funding sources of £651 million. Funding sources comprise equity investments of £430 million, debt investments of £125 million and net cash of £96 million
  • Corporate governance measures undertaken include the buy-back of shares for cancellation, the move to the Specialist Fund Segment of the LSE's Main Market and the appointment of independent director Craig Bodenstab to the board

 

Caroline Foulger, Chair Oakley Capital Investments Limited, commented:

"Continued strong portfolio company performance and exits above book value have delivereda 12-month total NAV return for OCI of 23%, well ahead of the wider market. We are pleased that the ongoing enhancement of the Company's governance, in combination with these returns, has been reflected in the share price, with a total shareholder return of 33% in the period."

 

Peter Dubens, Managing Partner Oakley Capital Limited, commented:

"It has been a positive start to the year for OCI and the Oakley Funds. The portfolio companies have grown EBITDA 31%, a partial exit was achieved at 80% above book value, and five new investments have been signed. The prospects of these high-quality companies and the attractive valuations at which they were acquired continue to demonstrate the repeatability of Oakley's unique sourcing model."