Oryx International Growth outperformed both the FTSE Small Cap. and the AIM Index over the year that ended on 31 March 2015, producing a total return on net assets of 5.2% vs. 2.8% for the FTSE Small cap. and -15.8% for the AIM Index. This result builds on the company’s good track record of recent years – the NAV return on the fund is 209% higher than the return on the FTSE Small cap. over the ten years to the end of March.
The fund’s discount narrowed from 21.9% to 19.0% as the share price rose from 422p to 467p.
The manager says that, within the fund’s quoted portfolio, the two largest holdings, MJ Gleeson and Goals Soccer, were essentially unchanged during the twelve month period, so the outperformance of the Company can be attributed to a number of smaller holdings. In particular Proactis was up 58% following higher profit forecasts over the course of the year. OMG Group rose 51% as a result of the Group’s strategic decision to refocus OMG ‘Life’ into a licensed IP model, allowing the profitable divisions to become more evident. Redcentric plc was also up during the year by 17% and Allocate Software rose 34% as a result of a bid following which the position was exited . The principal disappointment was Bioquell, although they believe the outlook appears to be improving after the recent sale of its TraC Global division for £44.5m, and say the business is now focusing on realising shareholder value. Accumuli was up 60% as the company was bid for by NCC Group. More recently Nationwide Accident Repair was bid for by Carlyle Group.
The major changes in the asset positions during the year were the purchase of Hayward Tyler and a significant increase in the holdings of Source BioScience. There was also a further investment made into OMG.
Within the unquoted portfolio, one new investment was made in the fiscal year; Viking Investment, a leading provider of residential care services to people with mental health conditions. The investment was made at a modest discount to net book value and on a EV/EBITDA multiple of less than 9. The collapse in the oil prices toward the year end significantly impacted Tagos and, as a consequence, it was necessary to write down the value of the investment. Celsis continued to perform well and the value of the holdings was increased by 50% in US dollars terms during the period. Celsis is now in discussions to be acquired which could add further value to the portfolio in the current year. Finally they say Team Rock has completed its website which is now gaining considerable interest, although revenue to date has been modest. The company is looking at a further round of financing to take the business through to profitability.
OIG : Oryx extends ten year lead over FTSE Small Cap