Rockwood Strategic plc
(“RKW” or “the Company”)
Full year results for the year ended 31 March 2022
27.5% NAV growth
Rockwood Strategic plc (AIM: RKW) is pleased to announce its audited results for the year ended 31 March 2022.
Financial highlights
- NAV Total Return performance in the twelve months to 31 March 2022 of 27.5% to 1613.8p/share which compares to the FTSE Small Cap (ex-ITs) of 3.2%. The Total Shareholder Return in this period was 22.2%.
- NAV Total Return performance in the three years to 31 March 2022 of 57.7% to 1613.8p/share which compares to the FTSE Small Cap (ex-ITs) of 29.7%. The Total Shareholder Return in this period was 50.9%
- Investment gains realised in Augean, RPS, National World, Universe Group and Ted Baker. Significant unrealised gains within remaining portfolio.
- Material engagement across the investments supporting the unlocking and realisation of shareholder value through operational and strategic changes.
- RKW ended the year with net assets of £41 million, invested in 9 companies together with £10.5 million in cash.
- £25 million returned to shareholders during the period by way of B share scheme and tender offer. No final dividend declared as a result. Future policy to pay out at least 85% of portfolio income net of expenses, retaining capital for re-investment.
Corporate development
- Harwood Capital appointed as Investment Manager, Richard Staveley as Lead Fund Manager.
- Revised Investment Policy approved by shareholders post year-end to actively invest in a focused portfolio of UK Small Companies, with substantial cash to deploy carefully into new opportunities.
- Noel Lamb appointed as Chairman.
- Graham Bird will not be seeking re-election at the AGM, a replacement independent Non-executive Director will be announced in due course.
- 'Investment Advisory Group' (IAG) formed to support the investment process, its highly regarded members having over 150 years of cumulative investment experience.
- Material reductions made to the Company's running costs going forward, following elevated costs due to corporate actions during the year.
- Singer Capital Markets appointed Nomad and Sole Broker.
Noel Lamb, Chairman of Rockwood Strategic plc, commented:
“The portfolio has delivered excellent NAV growth despite a year of significant corporate change and elevated costs. This specialist, active strategy now has an aligned, focused Investment Manager which we believe will continue to deliver for shareholders. We are exploring a move from the AIM to the main market of the London Stock Exchange to help further enhance future shareholder returns.”
Richard Staveley, Fund Manager, Harwood Capital LLP said:
“We are tremendously excited about the future for Rockwood Strategic. The portfolio holdings have significant upside, with profits predominantly driven by self-help. We have substantial cash to carefully deploy into an inefficient part of the UK stock market. The investment opportunity for shareholders is clear: UK equities are on a discount to Global equities, Micro-cap companies are on a discount to the market, the portfolio is on a discount to Micro-cap and Rockwood shares are on a discount to the portfolio.
We have aligned ourselves with shareholders in this differentiated, specialist strategy, current market conditions are rich with opportunity for the experienced, dedicated, value investor and we look forward to delivering our goal of compounding shareholders wealth over the long term.”
The full version of the RKW 2022 Annual Report and Notice of AGM has been published and will shortly be available on the Company's website shortly at www.rockwoodstrategic.co.uk.