Oakley Capital Investments Limited has announced full-year results for the year to December 31, 2018. NAV increased by 16% to £2.81 over the period, which the company largely attributed to several successful exits. The current portfolio of 11 private companies grew average earnings at 39% and realisations returned £115 million, at a combined premium of 36% to the holding value.
Key Highlights
The company provided the following key highlights:
Financial highlights
- NAV per share of £2.81, a total return of 16%
- Total NAV of £574.8 million, a 5-year CAGR of 18%
- Final dividend of 2.25 pence per share, payable in April 2019 (full year dividend of 4.5 pence)
- £130.8 million of capital was deployed and £165.8 million cash was returned to the Company
Portfolio Highlights
- Fair value of the underlying portfolio companies grew by 33%
- Average portfolio company year-on-year EBITDA growth of 39%
- Average portfolio company valuation multiple (EV/EBITDA) of 12.6x and net debt to EBITDA ratio of 3.8x. The level of both is considerably below the industry average and conservative given the earnings growth and the capital light nature of the Oakley Funds’ portfolio companies
- Positive revaluations across Oakley’s three core sectors: Consumer, TMT and Education. The largest contributors were Career Partner Group, Inspired and WebPros
- The Company has benefitted from the realisations of Parship Elite, Verivox, Facile and Damovo, which generated a combined gross money multiple of 4.0x and returned £114.8 million to OCI
- The realisations were at a combined 36% premium to the OCI 2017 year-end look through value and increased the Company’s NAV per share by 14 pence
Outlook
Against a backdrop of uncertainty over the prospects for the world economy in 2019, the company believes that its balanced and resilient portfolio should provide an element of protection against any softening in the underlying economic outlook. Investment opportunities have been targeted with the potential for structural growth and are not reliant on cyclical economic strength. Oakley further noted that leverage across the portfolio is relatively conservative, with average net debt to EBITDA standing at 3.8x.
Oakley has invested across Western Europe and beyond. It believes that its experience of a wide range of geographies and sectors provides it with the flexibility to take advantage of the opportunities that an uncertain future may present.