Marwyn Value Investors has published results for the year ended 31 December 2023. The NAV total return on the ordinary shares for the year was 5.1%, for the 2016 realisation shares it was 5.0% and for the 2021 realisation shares it was 4.2%. Those figures compare to a return on the Small Cap Index of 10.4% and on the AIM Index of -6.4%.
At the year end there was £97m of net assets attributable to the ordinary shares and “significant investible cash” in the fund and portfolio companies.
The manager discusses each of the concentrated portfolio of invesments, saying:
- AdvancedAdvT, under the leadership of Vin Murria, completed the acquisition of five software businesses from Capita at an attractive valuation and is now well-positioned to pursue synergistic acquisition opportunities. With a strong balance sheet and a recent transition to AIM, we are optimistic about the company’s future performance.
- Palmer, launched in May 2023 with an £8m investment from Marwyn Funds (of which approximately £6.2m was attributable to the company’s ordinary share class), has made significant strides in establishing its presence in the private capital servicing sector. The company’s highly experienced management team, comprising former executives of Sanne Group plc, has been focusing on obtaining the necessary regulatory approvals. We anticipate that as Palmer starts to onboard clients throughout 2024, the company will experience rapid growth and deliver substantial returns on our investment.
- Zegona Communications, led by the experienced team of Eamonn O’Hare and Robert Samuelson, made a transformative move when it agreed to acquire Vodafone Spain in October 2023. The €5.0bn transaction (which remains conditional on regulatory approval), financed through an innovative mix of vendor preference shares, underwritten leverage, bridge financing, and a €300m equity placement, demonstrates Zegona’s expertise in identifying and executing high-potential investments in the Spanish telecommunications market. With a clear value creation plan focused on cost reduction, revenue stabilisation, and potential fixed network transactions, we are confident in Zegona’s ability to drive significant returns.
- Le Chameau, with the addition of Waheed Alli to its management team and a further £5 million investment from the Marwyn Funds (of which over £4.9m was attributable to the company’s ordinary share class), is poised for significant milestones as it approaches its centenary in 2027. The combination of Waheed’s expertise and the leadership of CEO Corry Cavell-Taylor provides a solid foundation for the brand’s expansion and strategic initiatives in the coming years.
- Marwyn Acquisition Company II has benefited from the appointment of Will Self as CEO, working alongside chairman Mark Hodges. This strengthened management team has accelerated MAC II’s focus on financial services and intergenerational wealth.
- We continue to explore promising opportunities in the media and entertainment space through 450 plc and are actively engaging with potential management partners for Marwyn Acquisition Company III and MAC Alpha.