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Widening discount wipes out gains for Oryx shareholders

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Oryx International Growth’s results for the 12 months ended 31 March 2024 show the trust generating an NAV uplift of 12.2%. However, the share price fell by 1.8% as the discount widened from 19.0% to 29.1%. There is no dividend.

The manager notes that performance was driven by takeovers or offers for significant parts of the business, resulting in capital returns. In this context, the company benefited from the takeover of Sureserve Group Plc, Smoove Plc, The Fulham Shore Plc, City Pub Group Plc, OnTheMarket Plc, Seraphine Group Plc and the closing of the protracted bid for Curtis Banks Group Plc. Companies that received bids for the majority of their assets include Pendragon Plc (now Pinewood Technologies Group Plc) and Ascential Plc.

Niox Group Plc was up over 40% during the period. Hargreaves Services Plc also performed well, up over 20%, NAHL Group Plc was up 60% while Maintel Holdings Plc was up nearly 100%. However, many holdings drifted without any bad news, reflecting the manager’s perception of a general malaise in UK markets. Examples of this include Avingtrans Plc, Centaur Media Plc, Redcentric Plc, Flowtech Fluidpower Plc and EKF Diagnostics Holdings Plc.

Some investments performed very poorly and Stobart Group Ltd (previously “Esken Ltd”) ended up worthless. Renalytix AI Plc fell substantially due to concerns over funding. Catalyst Media Group Plc and Randall & Quilter declined following failed bids and more difficult trading. Collectively, these investments reduced the NAV by around 3%.

Within the unquoted portfolio, Moxico Resources Plc was sold at a modest uplift from the 2023 valuation. A small holding was taken in iEnergizer Ltd and this was sold at a 100% profit in May 2024. GYG Limited was delisted to save listing costs and traded well in 2023. Since end March 2024 the company had a bid approach at a substantial premium to the end March 2024 valuation.

Sourcebio International Plc sold a division at a favourable price resulting in a recent return of capital, Jaguar Holdings Ltd is also trading well, and the manager hopes a liquidity event can be achieved in the next twelve months at an uplift to the current valuation.

OIG : Widening discount wipes out gains for Oryx shareholders

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