Portfolio Update

Onward Opportunities Limited

10 January 2024

 

10 January 2024

Onward Opportunities Limited

("Onward Opportunities" or the "Company")

Portfolio Update

Onward Opportunities Limited (AIM: ONWD), the investment company targeting opportunities in smaller companies within the UK, provides an update for the financial year ended 31 December 2023 ("FY23").

Company Update

·      FY23 unaudited Net Asset Value (NAV) Total Return of +11.3% to 106.5p/share over the period from 30 March 2023 to 31 December 2023 ·      Encouraging first financial year ahead of target returns in difficult market conditions, delivering investment outperformance (NAV growth) relative to: o  Indices - Outperformed UK AIM All Share by 16.6%; +11.3% Company NAV increase versus decline of 5.3% for UK AIM All Share o  Peers - Top decile performance in AIC UK Smaller Companies sector since inception; and o  The Company's target returns of >15% IRR stated at the time of IPO - The portfolio delivered an aggregated IRR of 22.6% and the invested portfolio as at year-end had generated an unrealised IRR of 40.2% ·      In March 2023, the Company completed its IPO notwithstanding challenging market conditions. The Company successfully completed a further capital raise in September 2023, increasing the Company's capital base by 25% and welcoming a number of new shareholders to the Company. Portfolio Update ·      Significant early contributions from both the core stable and nursery holdings; top five contributors to unrealised return were Angling Direct, MPAC Group, EKF Diagnostics, Windward and Springfield Properties ·      This early IRR performance is indicative of further upside within the existing portfolio, as well as the attractive pipeline of portfolio investments the manager is identifying in current markets over the medium to long term ·      DX Group was the first takeover of an investee company, generating an IRR of 197% ·      Portfolio has captured an income stream, that at FY24 dividend levels, is expected to offset the majority of the total expense ratio of the Company in the forthcoming year ·      Intense period of investment activity capitalising on the value opportunity in UK smaller companies; the Company was over 90% invested by year-end. The top 10 holdings represent 60% of NAV

Laurence Hulse, Investment Director & Founder, said:

"The team is delighted to have delivered a NAV return of +11.3% net of launch costs in our first 9-months of operation, comparing favourably to the rest of the peer group and comparator indices. It was particularly pleasing to quickly earn back the IPO launch costs for shareholders who supported us.

"Onward Opportunities is all about truly active management; we are building a portfolio of specialist investment ideas for existing and prospective shareholders to access. Company resource is deployed analysing high conviction opportunities and then engaged to help unlock the value identified. We look forward to the portfolio developing further in the coming months. Onwards."

For further information, please contact:

Onward Opportunities Limited Andrew Henton, Chairman Dowgate Wealth Limited (Portfolio Manager) Laurence Hulse, Investment Director Tel: [phone] [e-mail] Tel: [phone] [e-mail] Apex Administration (Guernsey) Limited (Company Secretary) Martin Baxter / Harry Rouillard Tel: [phone] [e-mail] Cavendish Capital Markets Limited (Nominated Adviser and Joint Broker) Ben Jeynes/Camilla Hume Tel: [phone] Dowgate Capital Limited (Joint Broker) Russell Cooke / Nicholas Chambers Tel: [phone]

 

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