INTERIM REPORT 2021 - Oakley Capital Investments
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
INTERIM REPORT 2021
OUR OBJECTIVE
Oakley Capital Investments (‘OCI’) aims to provide
shareholders with consistent long-term returns in excess of
the FTSE All-Share Index by providing exposure to private
equity returns, where value can be created through market
growth, consolidation and performance improvement.
OUR STRATEGY
OCI (the ‘Company’) provides liquid access to a portfolio
of high-quality private companies and market-leading
returns by investing in the Funds managed by Oakley
Capital (‘Oakley’). Oakley invests in businesses across
Western Europe in three distinct sectors – Technology,
Consumer and Education – with a clear focus on digital
business models.
www.oakleycapitalinvestments.com
Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 01 CONTENTS Overview 02 Why invest? 03 Financial highlights 04 Portfolio activity 05 Chair’s statement 07 At a glance 09 Portfolio overview Strategic Report 13 The Oakley difference 14 Investment Adviser’s report 16 Environmental, Social and Governance 17 Investment Adviser’s approach Oakley Funds 21 Overview of Oakley Funds 23 OCI NAV overview 26 Outstanding commitments of OCI 27 Overview of OCI’s underlying investments Portfolio Companies 31 Technology portfolio companies 36 Consumer portfolio companies 39 Education portfolio companies Supplementary information 44 Directors’ report 45 Principal risks and uncertainties 48 Shareholder information 49 Why invest in listed private equity? Financial Statements 51 Consolidated statement of comprehensive income 52 Consolidated balance sheet 53 Consolidated statement of changes in equity 54 Consolidated statement of cash flows 55 Notes to the Consolidated Interim Financial Statements 75 Directors and advisers 76 Glossary
Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 02
WHY INVEST?
OCI investors
gain liquid
access to a MARKET-LEADING HIGH-QUALITY REPEATABLE
RETURNS PORTFOLIO COMPANIES SUCCESS
differentiated
model of private Market-leading and consistent returns
drive capital growth for shareholders.
Returns are driven by profit growth in
a high-quality portfolio of companies
OCI benefits from its partnership with
Oakley, whose success is built on
equity investing OCI’s ten-year total shareholder return
is 158% versus 70% delivered by the
across Western Europe. Their business
models are predominantly focused
proprietary origination, with over 75% of
deals being uncontested. Central to the
that delivers FTSE All-Share. on tech-enabled services and digital
platforms that have delivered strong
ability to repeatedly source and execute
attractive deals is Oakley’s established
consistent trading performance, despite global
economic disruption.
network of successful business founders
and entrepreneurs who help identify
returns. opportunities and drive growth.
Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 03
FINANCIAL HIGHLIGHTS
OCI performance
Net Asset Value (‘NAV’) Total NAV return Five-year p.a. total return Total shareholder return
The Company’s The NAV of the Company at The total NAV return for the six-month The five-year annualised total NAV As at 30 June 2021, the share price
NAV per share 30 June 2021 was: period to 30 June 2021 was: return to 30 June 2021 was: was 364p, with a total shareholder
return for the six month period of:
increased in
the period by £ 804 m 11% 17% 28%
42 pence to 445 Jun 21 £804m Jun 21 11% Jun 21 17% Jun 21 28%
pence per share. Dec 20 £728m Jun 20 4% Jun 20 16% -19% Jun 20
Dec 19 £686m Jun 19 14% Jun 19 12% Jun 19 33%
OCI balance sheet and distributions
Cash Outstanding fund Dividend
commitments
Total cash reserves of the Total outstanding fund Total dividend payments for
Company as at 30 June 2021 commitments of the Company the six month period ending
were 21% of NAV: as at 30 June 2021 were: 30 June 2021 were:
£172 m £ 438 m 2.25 pence
Jun 21 £172m Jun 21 £438m Jun 21 2.25p
Dec 20 £223m Dec 20 £512m Jun 20 2.25p
Dec 19 £49m Dec 19 £429m Jun 19 2.25p
Portfolio companies
LTM EBITDA growth EV/EBITDA multiple Net debt/EBITDA ratio
35% 12.3x 3.5x
Jun 21 35% Jun 21 12.3x Jun 21 3.5x
Dec 20 20% Dec 20 11.8x Dec 20 3.9x
Dec 19 30% Dec 19 12.1x Dec 19 3.7x
OCI assesses its performance using a variety of measures that are not specifically defined under IFRS and are therefore termed Alternative Performance Measures (‘APMs’).
These APMs have been used as they are considered by the Board to be the most relevant basis for shareholders in assessing the performance of the Company. The APMs used
by the Company are listed in the Glossary, along with their definition/explanation, their closest IFRS measure and where appropriate, reconciliations to those IFRS measures.
Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 04
PORTFOLIO ACTIVITY
An active period for investments
by the Oakley Funds
Investments – £95 million invested1
idealista Dexters ECOMMERCE ONE ICP Education
OCI investment £43m OCI investment £13m OCI investment £6m OCI investment £27m
Fund IV acquired a minority stake Fund IV acquired a controlling The Origin fund completed the acquisitions Fund IV completed the acquisition
in idealista, the leading online stake in Dexters, London’s of Afterbuy and DreamRobot, two leading of a majority stake in ICP Education,
real estate classifieds platform leading independent providers of e-commerce in German- a leading independent group of
in Southern Europe, present in chartered surveyor and speaking Europe, together creating the UK children’s nurseries.
Spain, Italy and Portugal. estate agent. ECOMMERCE ONE Group.
February April July
January March May June
IU Group Daisy Daisy
Refinancing – £29m Partial exit – £5m Debt repayment – £17m
OCI proceeds OCI proceeds OCI proceeds
IU Group (formerly CPG) Fund II sold its stake in the Following the sale of the Digital
completed a refinancing Digital Wholesale Solutions Wholesale Solutions division,
resulting in a distribution division of the Daisy Group, all outstanding OCI loans and
to Fund III. the UK’s leading independent interest were repaid.
communications, IT and cloud
services provider.
1
All investments on a look-through basis. The timeline excludes direct debt and bolt-on investments. Realisations – £51 million realised1
Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 05
CHAIR’S STATEMENT
11% c. 400k
Six-month total NAV return Average daily share liquidity
Digital focus It is very pleasing to report that amidst the
ongoing disruption caused by COVID-19, OCI
Another example of strong performance is
market-leading property portal idealista, a
New investments
We are encouraged to see the same digital
underpins has continued to perform strongly during the
period, sustaining a pattern of above-average
new platform investment completed early
this year which is already reporting robust
focus informing new investments. In addition
to idealista, Oakley made three platform
NAV growth returns. EBITDA growth of 35% across the
investment portfolio underpinned a total NAV
growth thanks to growing demand across
Southern Europe.
investments during the period, including
ECOMMERCE ONE whose software supports
and new return per share of 11% in the six-month period
(and 26% over 12 months), thanks to the There is a common thread running through
online sales for merchants across German-
speaking Europe. This transaction essentially
investments. pronounced digital focus of the companies in these stories that also touches so many more
combines one business introduced through the
the portfolio, as well as the active management Oakley Fund companies: the growth in global
Oakley Network of entrepreneurs with another
provided by the Funds’ adviser Oakley Capital. internet usage. This is by no means a new
company, which demonstrates yet again
OCI has also benefitted from Oakley’s ability megatrend, but it has gained potency during
the Investment Adviser’s ability to execute
to continue sourcing promising investment COVID-19 as more businesses and consumers
complex transactions in a much sought-after
opportunities at attractive valuations, and shift to online, driving demand for the services
sector by leveraging its connections to source
several new investments were made by the and products that Oakley’s portfolio provides.
leading opportunities, outside a traditional,
Funds during the period, laying the foundation For example, WebPros’ webhosting “software-
often expensive auction process.
for future growth. as-a-service” today supports the operations
of more than 80 million websites around the
world, Grupo Primavera is helping thousands Cash and Commitments
Digital sweet spot
of Iberian SMEs to migrate their IT systems A healthy cash balance provides firepower
While some of our underlying companies for new investments. At the end of the period,
to the cloud. Meanwhile, more and more
remain affected by the pandemic, the Board OCI had no debt and cash reserves of £172m,
consumers are logging on to 7NXT’s online
is pleased to see how many businesses amounting to 21% of NAV. The Board believes
fitness classes and nutrition plans. The digital
continued to perform well, led most notably this puts OCI in a strong position to take
focus of the portfolio means that over 75% of
by IU Group (formerly Career Partner Group). advantage of a promising period for fresh
revenues are recurring or subscription-based,
The tech-focused education business was investments in existing Oakley Funds and
providing a degree of income certainty.
one of the biggest contributors to NAV the opportunity to commit to future funds.
growth and is now Germany’s largest and History shows that, on average, fund vintages
fastest-growing university, buoyed by that follow a macroeconomic downturn tend
increased demand for quality online learning. to outperform.
Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 06
CHAIR’S STATEMENT
CONTINUED
Environmental, Social and Discount Dividend
Governance & sustainability At OCI we strongly believe that improved, In April, a final dividend of 2.25 pence
At OCI we are committed to promoting more frequent communications will help per share was paid for the period ended
responsible investing as a way to de-risk shareholders and would-be investors to better 31 December 2020. We are pleased to
understand our underlying investment strategy, announce that an interim dividend of 2.25
The Board has investments and support value creation, since
research shows that companies with higher our portfolio and the drivers of NAV growth. pence per share will be paid in October 2021.
made it a priority to ESG scores tend to outperform the wider While OCI’s share price currently sits below
improve shareholder market. Oakley integrates ESG considerations the NAV per share, we are confident that
these measures, together with ongoing share
Outlook
throughout its investment cycle, from Whilst the global economy has generally
communications and origination to growth and exit. We have been buybacks and repeated performance, will rebounded strongly from the depths of
boost transparency. encouraged by Oakley’s further investment help the price to better reflect the quality and COVID-19, the ongoing pandemic continues
in its ESG capabilities, this period helping recurring growth of our underlying assets. to cause uncertainty for certain businesses.
portfolio companies to adopt more sustainable In this environment, it is reassuring to see
business practices. This is already beginning Share purchases that our underlying portfolio companies have
to bear fruit: two companies, Alessi and North The Board is committed to continuing its continued to perform well, thanks to the digital
Sails Apparel, have achieved coveted B Corp programme of share buybacks as an essential focus of their business models, and a strong
status. In addition, OCI is developing its own tool for value creation, while pursuing a focus on active management, which you can
direct Corporate Social Responsibility strategy careful approach to cash management that read more about in the Investment Adviser’s
to roll out in due course. balances buybacks with cash inflows, the report on page 15. At the same time, Oakley
pace of existing Fund investment and possible has continued its solid track record in sourcing
Transparency in communications future Fund commitments. Post-period end, promising, proprietary investments, thereby
The Board has made it a priority to enhance the Board authorised a buy-back of 2 million avoiding the more expensive deals that bedevil
shareholder communications and boost shares, which were acquired and cancelled the wider private equity industry, thus laying
transparency by further developing our digital at a price of 354p. It is also pleasing to the foundations for future, sustainable NAV
communications. Last year we invested in see sustained share purchases by Board growth. The Board is pleased to underline
producing our inaugural digital Annual Report, members and Oakley partners during the that we remain confident in the long-term
supported by interactive graphics and video. period, and their combined holding has now outlook for the Oakley Funds and their ability
We are incredibly pleased that this has been reached 11%, ensuring that the interests of to continue generating consistent value
recognised by industry body the Association the Board and Oakley Capital are aligned for investors.
of Investment Companies (‘AIC’) which with our shareholders. At the same time, the
awarded OCI “Best Report and Accounts shareholder registry has further diversified, and Caroline Foulger
2021 – Alternative”. To boost communication the top ten shareholders’ combined holding 8 September 2021
and transparency further we have taken the has fallen further from 80% in 2018 to 64% as
decision to increase the frequency of OCI’s at 30 June 2021. We continue to welcome an
NAV reporting to the market by moving to increasing number of private investors onto
quarterly updates commencing in 2022. the register, attracted by the liquid access and
superior returns that OCI provides.
Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 07
AT A GLANCE
OCI provides access to the performance of a portfolio of private companies through both
its investments in the Oakley Capital managed Funds and its direct investments.
Returns
driven by profit
growth in a high- Oakley Fund investments Direct investments Cash and other
quality portfolio Total Total Total
of companies. £ 474.6 m £ 157.9m £171.9m
% of OCI NAV % of OCI NAV % of OCI NAV
59% 20% 21%
Read more on page 27 Read more on page 28 Read more on page 26
Technology: £243.9m Consumer: £308.0m Education: £214.1m
Total HY21 £243.9m HY21 £308.0m HY21 £214.1m
Portfolio1 FY20 £184.9m FY20 £260.6m FY20 £192.7m
FY19 £247.9m FY19 £236.6m FY19 £231.5m
£766.0m
Read more on page 31 Read more on page 36 Read more on page 39
1
he Total Portfolio is the fair value of OCI’s investments, made up of the Oakley Funds’ investments on a look-through basis, and OCI’s direct investments.
T
See the Glossary for a reconciliation of the Total Portfolio to OCI’s NAV.
Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 08
AT A GLANCE
CONTINUED
NAV per share since inception (£)
NAV per share
4.50
4.45
4.00
of 445 pence, 4.03
outperforming
3.50
3.00
3.45 £ 4.45
FTSE All-Share 2.50 2.81 Continued strong NAV
Index for the 2.00 2.31
2.45 growth in 2021.
last ten years. 1.50 1.68 1.71
1.81
2.00 2.01 2.00
1.41
1.00
0.99 1.08
0.50
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 HY21
NAV per share
OCI long term performance vs Indices
400
350
300
158%
Performance Index
250
Significant outperformance
200 versus FTSE All-Share Index
continued in 2021.
150
100
50
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
OCI FTSE All-ShareOverview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 09
PORTFOLIO OVERVIEW
Portfolio breakdown by Company
Look-through investments in the Oakley Funds and direct investments.
ACE Education
OCI invests Ocean Technologies Group WebPros
in a diversified ICP Education idealista
portfolio of private Schülerhilfe
Facile
equity assets via the
Oakley Funds and TechInsights
IU Group
direct investments. Grupo Primavera
Contabo
7NXT
Daisy
Dexters
atHome
Iconic BrandCo
ECOMMERCE ONE
Windstar Medical North Sails
Wishcard Technologies Group
North Sails direct debt
Time Out
Technology Consumer Education
WebPros £55.6m North Sails £145.2m IU Group £99.0m
idealista £41.5m Time Out £73.0m Schülerhilfe £45.9m
Facile £40.3m Wishcard Technologies Group £29.4m ICP Education £26.9m
TechInsights £25.8m Windstar Medical £29.2m Ocean Technologies Group £26.5m
Grupo Primavera £22.6m Iconic BrandCo £16.5m ACE Education £15.8m
Contabo £18.4m Dexters £14.7m
7NXT £13.9m
Daisy £11.5m
atHome £8.5m
ECOMMERCE ONE £5.8m
£ 243.9m £ 308.0m £ 214.1m
Three portfolio companies were re-branded in the period – IU Group (formerly CPG); ACE Education (formerly AMOS) and Grupo Primavera (formerly Ekon).Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 10
PORTFOLIO OVERVIEW
CONTINUED
Leading impact on NAV
Wishcard Technologies
Strong portfolio Time Out IU Group TechInsights
Group
company
Share price growth Student intake growth Trading performance Total last 12 months
performance drives of 68% of 70% vs the prior year increased fair value (‘LTM’) voucher sales
NAV uplift. by 80% growth of 104%
Time Out successfully IU Group has continued to TechInsights has Wishcard Technologies
completed an equity raise sustain very strong results performed strongly Group has had another
of £17 million to further during H1 2021, achieving in H1 2021. Following period of strong
strengthen the company’s significant financial growth a challenging market performance in H1 2021.
balance sheet in response and increased student environment in 2019 and This has been driven by
to the impact of COVID-19. numbers. In online studies, 2020, the semiconductor like-for-like store growth
As a result, Time Out’s H1 2021 student intake industry is expected and the increased voucher
share price rebounded. growth has exceeded to recover throughout distribution to new
Also in the period, all six expectations and Dual the latter half of 2021. retailers, as well as strong
Time Out Markets re- Studies has shown positive TechInsights remained growth across B2B and
opened following a period signs of recovery following resilient throughout this online channels. Despite
of temporary closure the lack of hospitality and negative cycle and is the lockdowns in Germany,
during lockdowns as a travel opportunities last recording positive growth the business continued to
result of COVID-19. The year. Student intake is 70% against the prior year. The trade well as products are
re-opening of the markets higher than in 2020, with business continues its shift sold in grocery stores, fuel
has enhanced the use of a marked increase in the towards recurring revenues stations and supermarkets.
the newly launched Time number of new enrolments and the transition has As essential retailers, these
Out Market app which for Autumn 2021. been accelerated by the types of stores remained
enables contactless acquisition of IHS Markit’s open throughout the
transactions with order & Teardown division. restrictive measures.
pay at table, home delivery
and collection.
+16p +15p +6p +5p
NAV per share uplift NAV per share uplift NAV per share uplift NAV per share uplift
Read more on page 37 Read more on page 40 Read more on page 33 Read more on page 37Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 11 Strategic Report 13 The Oakley difference 14 Investment Adviser’s report 16 Environmental, Social and Governance 17 Investment Adviser’s approach
Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 12
New investment:
ECOMMERCE ONE
Oakley’s Origin Fund made its second investment in the first half
of the year into Afterbuy and DreamRobot, two leading providers
of e-commerce software in German-speaking Europe, which have
been combined to become ECOMMERCE ONE. The acquisition
marks the beginning of a strategy aimed at solidifying the Group’s
position as the market-leading provider for small and medium-
sized online merchants in the DACH region. Oakley will support
the growth of the businesses through its operational experience
and software buy-and-build expertise, drawing on its track-record
of successful investments in the technology sector.
ECOMMERCE ONE, a deal introduced to Oakley by Valentin
Schütt, who they partnered with on Oakley Capital Fund IV’s
investment in Wishcard Technologies Group, represents another
example of Oakley’s repeated partnering with talented and trusted
business founders, who help to uncover attractive opportunities
that others may not be able to access.Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 13
THE OAKLEY DIFFERENCE
ative
e
Cr
The ability and
The foundation of experience to tackle
complex transactions and
Oakley’s success is release unseen pockets
of value.
built on its proprietary
Over 40%
origination, with over of deals are carve-outs.
75% of deals being
nected
uncontested. n
Co
An established network
of business founders that
identify opportunities and
drive growth.
Over 20
successful entrepreneurs have
been backed by Oakley, many
aborative
on repeated occasions.
oll
C
Entrepreneurial, open,
decisive and focused
on building lasting
partnerships.
Over 80%
of deals have Oakley as the
Company’s first PE investor.Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 14
INVESTMENT ADVISER’S
REPORT
Oakley’s effective
35% 4
Average LTM EBITDA growth New investments in the period
origination strategy
means the firm continues
to unearth attractive,
Private equity reaches new heights shopping, the migration of business IT to the The opportunity to invest in ECOMMERCE
proprietary investment cloud and the increasing international demand ONE was introduced to us by a German tech
It is a testament to the resilience of private
opportunities. equity that the industry has rebounded so for quality, accessible education. EBITDA entrepreneur with deep sector expertise who
strongly since the depths of the pandemic. growth is also supported by a programme Oakley had previously partnered with on its
Over the past 18 months, deal-making and of investment to help portfolio companies investment in consumer technology company
fundraising have surged to new records, and realise their full potential. During the period, Wishcard Technologies Group in 2019. The
private equity firms are now sitting on more Oakley continued to enable management ECOMMERCE ONE deal, completed in June
than $2.2 trillion of so-called “dry powder”1 teams to recruit key talent, professionalise this year, demonstrates the effectiveness of
ready to pour into new investments. That their business models by enhancing business Oakley’s entrepreneur network for sourcing
is pushing up valuations, especially in the processes and controls, transform their proprietary deals as well as leveraging valuable
“hot” sectors that have performed so well digital marketing and e-commerce offerings market insights to help assess opportunities.
during the pandemic, such as technology and and execute transformational M&A. A strong Proactive sector screening is another key
business software. This market exuberance example of this is Ekon’s recent combination part of Oakley’s origination strategy. Our
inevitably raises investor concerns about the with PRIMAVERA to create Iberia’s leading investment in children’s nursery group
impact it may have on future returns as more independent provider of business software, ICP Education followed a detailed sector
money chases fewer deals. The good news with a mission to help thousands of SMEs in screening exercise that identified attractive
is that Oakley’s effective origination strategy the region to migrate their IT systems to the and compelling market drivers in early years
means the firm continues to unearth attractive, cloud. Oakley’s focus on sustainability and education. ICP also builds on our significant
proprietary investment opportunities in sought- ESG factors, the screening process pre- experience as one of the most active investors
after sectors. At the same time, Oakley’s investment and through ownership to exit, not in Europe’s education sector. Meanwhile, our
portfolio of tech-enabled businesses continues only helps mitigate investment risk, but helps investment in London estate agents Dexters
to profit from the exciting megatrends that build value by de-risking business models demonstrates our willingness to embrace
have accelerated during the pandemic. for future investors. During the period, North complex investment situations, building on
Sails became the second portfolio company our track record and capabilities to unearth
to gain coveted B Corp status, underlining the pockets of value that can form the foundation
Sustaining EBITDA growth
company’s commitment to sustainable growth. for future market leaders. These latest
While some companies remain impacted by investments have sustained our long-term
COVID-19 restrictions, the majority of Oakley’s Effective origination record: 75% of investments are uncontested
investments performed well during the period. deals and 40% are carve-outs.
On average, EBITDA across the portfolio Oakley has also continued to benefit from an
grew 35% over the last 12 months, buoyed by origination strategy that is proven to uncover
growing trends including the shift to online the most promising investment deals.
1
Source: S&P Global Market Intelligence.Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 15
INVESTMENT ADVISER’S
REPORT CONTINUED
The case for reinvestments Hybrid working delivers The way ahead
The growing surplus of capital in the private The disruption caused by the COVID-19 As cash-rich private equity investors explore
equity market means there is robust interest pandemic has forced businesses to completely new strategies to allocate their capital,
The disruption in acquiring our businesses when it comes change the way they work, and private equity Oakley remains resolutely focused on its core,
caused by the to exit, supporting high valuations. Often, is no exception, with key activities including proven investment strategy: backing high-
Oakley decides to reinvest in its businesses deal-making and fundraising impacted. Last growth, attractive private businesses in the
COVID-19 pandemic to ensure investors can continue to benefit year, Oakley successfully raised the maiden European mid-market. Indeed, we believe this
has forced businesses from the strong growth of its most promising Origin fund, largely completing its investor strategy will continue to provide promising
portfolio companies. In 2019 Oakley meetings and due diligence virtually. The opportunities as companies remain private
to completely reinvested in WebPros, which has continued benefits of maintaining a flexible approach for longer, and more founders turn to private
change the way to generate double-digit earnings growth. In to hybrid working through a mix of working in equity not just for capital but also to leverage
July this year, and immediately after the period the office and at home, sustained by digital their know-how and support as they seek to
they work. end, Origin reinvested in ACE Education communications, are very clear: improved grow their businesses post-pandemic. Oakley
alongside France’s Groupe Amaury in order efficiencies, reach and accessibility across has a rich pipeline of exciting investment
to benefit from the growing demand for the firm. Better collaboration between teams prospects thanks to its strong origination
quality, vocational higher education across and across offices supports better outcomes platform. It has the right sector focus and track
Europe. Our collaboration with Amaury also in terms of finding new deals and building record, and a well-resourced investment team
demonstrates Oakley’s ability to forge deep successful businesses. The success from and operating platform, to help companies
strategic partnerships with other like-minded rolling out our hybrid working model without grow, generate jobs and wealth, and to sustain
investors that help to expand our networks and compromising Oakley’s culture has given us strong returns for investors
capabilities. Our reinvestment in WebPros was the confidence to expand our geographic
made alongside CVC, Europe’s largest private footprint, even during a pandemic. Oakley’s
equity investor. Meanwhile, our partnership Milan office will open later this year, adding
with EQT on idealista builds on our joint to our existing hubs in London, Munich and
collaboration with Facile, Italy’s leading price Luxembourg, boosting the firm’s ability to find
comparison website. new deals, deepen its network and support
portfolio companies in an important market
for Oakley.
75% 40%
Uncontested deals of deals are carve-outsOverview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 16
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
We believe that The Board has endorsed Oakley’s policy to advise on the investment of the Company’s resources in a responsible manner. In the period,
Oakley has focused on the following key areas of ESG, consistent with its belief that investing responsibly protects and creates value:
investing responsibly
protects and
creates value.
Cybersecurity Climate Diversity & Inclusion
Cybersecurity maturity Oakley has joined initiative D&I Committee and working
assessments have been Climate International (‘iCI’) – groups have been formed with
undertaken across the portfolio a private equity action group a focus on recruitment, culture
(with some still ongoing) on climate change, with a and training.
and bespoke roadmaps collective commitment to
for improvement have understand and reduce
been developed. carbon emissions of private
equity-backed companies
and secure sustainable
investment performance.Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 17
INVESTMENT ADVISER’S APPROACH
Oakley is a leading private equity firm that specialises in investments in high-growth, mid-market companies
operating in Western Europe.
Oakley invests in ambitious founders and entrepreneurs, building lasting partnerships that lead to many
more opportunities. In doing so we overcome complexity, help drive businesses forward and create value
for our investors.
KEY HOW WE CREATING GENERATING
RESOURCES INVEST VALUE RETURNS
KEY RESOURCES
Team Network Commitments
Experienced team of investment professionals, Oakley builds close partnerships with
entrepreneurs and skilled operators. entrepreneurial founders and managers.
They provide an invaluable resource to broaden
173m
€
Oakley’s deal introduction network and deepen Commitments by portfolio
expertise within sector hubs. company management teams
across the Oakley FundsOverview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 18
INVESTMENT ADVISER’S APPROACH CONTINUED
HOW WE INVEST
Sector Primarily Western Investment Primary deals
focus European focus focus
80%
North America
Education Norway
Technology France DACH
Up to €400m
Spain enterprise Deals since inception where
value Oakley is a company’s first
Italy
private equity investor
Consumer
UK
CREATING VALUE
Buy-and-Build Growth acceleration Business transformation EBITDA growth
Creating scale and synergies Helping portfolio companies Providing support in the transition
through targeted M&A. to achieve their full potential
with appropriate capital and
from entrepreneurial ownership
to businesses with scalable and 35%
operational resources. sustainable operations.
Average LTM EBITDA growth
across the underlying portfolio
GENERATING RETURNS
Oakley Funds1 MM2 IRR 2 OCI’s investment in the Oakley Funds Realised IRR
77%
Oakley Fund I (vintage 2007) 2.1x 36% Capital called to date £670.8m
Oakley Fund II (vintage 2013) 2.3x 37% Capital returned to date £774.6m
Across all Funds
Oakley Fund III (vintage 2016) 3.1x 51% Remaining fair value of Oakley Funds £474.6m
1
Fund IV and Origin Fund are early stage and therefore returns have not been included.
2
Gross Money Multiple and Gross IRR are based upon realised and unrealised portfolio returns as at 30 June 2021.Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 19 Oakley Funds 21 Overview of Oakley Funds 23 OCI NAV overview 26 Outstanding commitments of OCI 27 Overview of OCI’s underlying investments
Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 20
New investment:
ICP Education
Oakley’s experience investing in high-quality businesses within
the Education sector led to the identification of the nursery
sector as an attractive area which is enjoying sustained
growth. As a result, Fund IV has invested in ICP Education,
a leading independent group of UK nurseries.
ICP Education, one of the largest nursery operators in the
UK, has achieved a strong track-record of growth since its
foundation and is one of the highest quality large nursery
operators in England, with a third of nurseries rated Ofsted
Outstanding and 98% rated Outstanding or Good. As one of
the most active investors in the European education sector,
Oakley will partner with the management team and support
them as they continue to grow one of the leading premium
nursery groups and realise their growth ambitions in the UK
and internationally.Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 21
OVERVIEW OF OAKLEY
FUNDS
Funds overview
O IV
Oakley Funds: total Oakley Origin Fund Oakley Fund IV
realised gross returns
of 3.9x MM and 77% OCI is invested in the Oakley Funds,
IRR since inception. which are Western Europe-focused Vintage: 2021 Vintage: 2019
private equity funds that aim to build
portfolios of high-growth companies,
primarily in the Technology, Consumer
OCI commitment Fund size OCI commitment Fund size
and Education sectors. €129m €458m €400m €1,460m
During 2021, the Origin Fund was closed Current investments Current investments
to all investors with total commitments
7NXT Ocean Technologies Group
raised of €458m. OCI’s total commitment ECOMMERCE ONE Wishcard Technologies Group
to the fund was €129m. ACE Education1 Contabo
WebPros
The Origin Fund is Oakley’s latest WindStar Medical
vehicle and is focused on investing in idealista
Dexters
lower mid-market companies, building on
ICP Education
the firm’s successful history of investing
in this segment.
OCI’s outstanding commitments OCI’s outstanding commitments
£107.7m £212.9m
OCI’s investment in the fund as OCI’s investment in the fund as
a % of NAV a % of NAV
0% 20%
1
he investment in ACE Education is an event after the balance sheet date, having completed subsequent to 30 June 2021,
T
Read more on the Oakley Funds on page 27
and is therefore excluded from the figures in this report.Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 22
OVERVIEW OF OAKLEY
FUNDS CONTINUED
Funds overview continued
III II I
Oakley Fund III Oakley Fund II Oakley Fund I
Vintage: 2016 Vintage: 2013 Vintage: 2007
OCI commitment Fund size OCI commitment Fund size OCI commitment Fund size
€326m €800m €190m €524m €202m €288m
Current investments Current investments Current investments
atHome ACE Education 1
Facile Daisy Time Out
TechInsights Iconic BrandCo Grupo Primavera North Sails
Schülerhilfe IU Group
6.9x 152% 3.1x 59% 2.9x 44%
Realised Realised Realised Realised Realised Realised
gross MM gross IRR gross MM gross IRR gross MM gross IRR
OCI’s outstanding commitments OCI’s outstanding commitments OCI’s outstanding commitments
£103.4m £11.4m £2.4m
OCI’s investment in the fund as OCI’s investment in the fund as OCI’s investment in the fund as
a % of NAV a % of NAV a % of NAV
29% 6% 4%
1
The investment is ACE Education was fully realised following the period end.Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 23
OCI NAV OVERVIEW
Net Asset Value and activity in the period to 30 June 2021
OCI’s NAV grew
from £728 million Net asset value Proceeds Investments
to £804 million, an
increase of 11% since £ 804 m £ 51m £ 95 m
31 December 2020
to 445 pence
per share.
Proceeds during the period1 Investments during the period1
During the period, OCI’s share of proceeds from divestments, During the period, OCI made total look-through investments of
refinancings and repayment of loans amounted to £51 million, £95 million, of which £89 million were platform investments, and
consisting of: £6 million were bolt-on and follow-on investments, comprising:
• Realisations – £5 million – the exit of Fund II’s stake in the Digital • Platform investments – £89 million – the acquisitions of idealista
Wholesale Solutions division of the Daisy Group; (Fund IV), Dexters (Fund IV), ICP Education (Fund IV) and
• Refinancings – £29 million – the refinancing of IU Group; ECOMMERCE ONE (Origin Fund);
• Direct debt repayment – £17 million – the full repayment of a loan • Bolt-on and follow-on investments – £6 million – a bolt-on to
to the Daisy Group. Grupo Primavera, and further investments into North Sails
and Globe-Trotter.
•
1
Proceeds and investments are included on a look-through basis.Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 24
OCI NAV OVERVIEW
CONTINUED
Movement in NAV (£m)
900
Movement 800
87.9 (4.1)
804.4
in NAV and
4.9 (1.9) (3.9) (6.5)
700 728.0
investments
Total earnings £80.5m
on a look-
600
500
£ 80.5m
Net earnings in 2021
through basis 400
during 2021. 300
200
100
0
FY20 Interest Other income FX on cash Realised gains/ Unrealised Dividend HY21
and (expenses) (losses)2 gains/(losses)3
Attribution analysis of movements in the value of investments (£m)
700
27.8
87.6 (46.5) 81.0
600 632.5
(6.5) 4.9 (20.9)
500
87.9m
505.1 Unrealised gains £87.9m3
400 £
300 Unrealised gains
on investments
200
100
0
FY20 Purchases Distributions1 Realised Interest FX EBITDA Multiple HY21
gains/(losses)2
Increase Decrease Total
1
Distributions include redemptions, loan repayments (including accrued interest and arrangement fees) and transfers.
2
ealised gains/(losses) include realised gains/(losses) on underlying fund portfolio investments sold in the period, and income and expenses
R
of the underlying fund during the period.
3
nrealised gains/(losses) include FX on the conversion of period end fund holdings from the Fund’s reporting currency (Euros) to Pounds, plus
U
unrealised gains/(losses) on the Fund’s portfolio investments and any change in OCI’s share of fund holdings. Changes in Provisional Profit
Allocation (‘carry’) are apportioned across the realised and unrealised gains.Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 25
OCI NAV OVERVIEW
CONTINUED
Portfolio company level investment attribution analysis
The below chart summarises the largest movements in realised and unrealised gains/(losses) of the portfolio
29.7m
companies during the period on a look-through basis.
£
Gain on Time Out
Time Out 29.7
IU Group 26.2
TechInsights 10.2
Wishcard Technologies Group 8.7
Contabo 8.7
Facile 5.3
WebPros
7NXT 3.6
5.2
£ 26.2m
Gain on IU Group
ACE Education (3.1)
(10) (5) 0 5 10 15 20 25 30 35
Realised gains/(losses) Unrealised gains/(losses) including FX and interest
Realised and unrealised gains/(losses) are presented for the portfolio companies and direct equity investments
only. This chart therefore, excludes realised and unrealised gains/(losses) on the other assets/(liabilities) of the
Funds including income and expenses of the underlying fund, FX on the conversion of period end fund holdings
from the Fund’s reporting currency (Euros) to Pounds and any change in OCI’s share of fund holdings.Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 26
OUTSTANDING
COMMITMENTS OF OCI
Outstanding commitments to the Oakley has reached the end of its investment period Cash has decreased from £223.1m at
Funds as at 30 June 2021 were £437.8 million, with future acquisitions limited to bolt-on 31 December 2020, largely due to two capital
of which £212.9 million was to Fund IV and investments to the current portfolio. calls to finance Fund IV’s investments in
£107.7 million to the Origin Fund, both of which idealista and ICP Education. Cash represents
are currently in their investment period. Funds OCI has no leverage and had cash on the 21% of total NAV at 30 June 2021 (31% at
Outstanding I and II are in the realisation phase and Fund III balance sheet of £171.5 million at 30 June 2021. 31 December 2020).
commitments to Outstanding Outstanding
the Oakley Funds Fund Fund vintage
Total commitment
(€m)
at 30 June 2021
(€m)
at 30 June 2021
(£m) % of NAV
of £438 million. Oakley Fund I 2007 202.4 2.8 2.4 0
Oakley Fund II 2013 190.0 13.3 11.4 1
Oakley Fund III 2016 325.8 120.6 103.4 13
Oakley Fund IV 2019 400.0 248.0 212.9 27
Origin Fund 2020 129.3 125.4 107.7 13
Outstanding commitments 510.1 437.8 54
Cash and cash equivalents 171.5 21
Net outstanding commitments unfunded by cash resources at the year end 266.3 33
Outstanding commitments and liquid resources (£m)
Fund l
Fund ll
2019 Fund lll
Fund lV
Origin
Cash
2020
2021
0 50 100 150 200 250 300 350 400 450 500 550Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 27
OVERVIEW OF
OCI’S UNDERLYING
INVESTMENTS
Investments Sector Location Year of investment Open cost Fair value
Fund I
Time Out Consumer Global 2010 £57.9m £32.9m
OCI’s proportionate allocation of Fund I investments (on a look through basis) £32.9m
OCI’s NAV at Other Assets and Liabilities (£3.5m)
30 June 2021 OCI’s investment in Fund I £29.4m
was £804 million, Fund II
a NAV per share North Sails
Daisy
Consumer
Technology
Global
UK
2014
2015
£43.8m
£8.5m
£34.3m
£11.5m
of 445 pence. OCI’s proportionate allocation of Fund II investments (on a look through basis) £45.8m
Other Assets and Liabilities £4.0m
OCI’s investment in Fund II £49.8m
Fund III
Casa & atHome Technology Italy/Luxembourg 2017 £0.0m £8.5m
Schülerhilfe Education Germany 2017 £30.0m £45.9m
TechInsights Technology Canada 2017 £0.3m £25.8m
ACE Education Education France 2017 £6.9m £15.8m
IU Group Education Germany 2018 £0.0m £99.0m
Facile Technology Italy 2018 £20.0m £40.3m
Grupo Primavera Technology Spain 2019 £22.6m £22.6m
Iconic BrandCo Consumer Italy/UK 2019/2020 £16.3m £16.3m
OCI’s proportionate allocation of Fund III investments (on a look through basis) £274.4m
Other Assets and Liabilities (£42.1m)
OCI’s investment in Fund III £232.3m
Fund IV
Ocean Technologies Group Education Norway/UK 2019 £20.8m £26.5m
Wishcard Technologies Group Consumer Germany 2019 £15.8m £29.4m
Contabo Technology Germany 2019 £4.8m £18.4m
WebPros Technology Switzerland/USA 2020 £43.4m £55.6m
Windstar Consumer Germany 2020 £29.2m £29.2m
idealista Technology Spain 2021 £41.5m £41.5m
Dexters Consumer UK 2021 £13.4m £14.7m
ICP Education Education UK 2021 £26.9m £26.9m
OCI’s proportionate allocation of Fund IV investments (on a look through basis) £242.2m
Other Assets and Liabilities (£82.7m)
OCI’s investment in Fund IV £159.5mOverview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 28
OVERVIEW OF
OCI’S UNDERLYING
INVESTMENTS CONTINUED
Investments Sector Location Year of investment Open cost Fair value
Origin Fund
7NXT Technology Germany 2020 £10.2m £13.9m
ECOMMERCE ONE Technology Germany 2021 £5.8m £5.8m
During the period, OCI’s proportionate allocation of Origin Fund investments (on a look through basis) £19.7m
OCI earned Other Assets and Liabilities (£16.1m)
OCI’s investment in Origin Fund £3.6m
£4.8 million
Direct investment
of interest from Time Out Equity Consumer Global £40.1m
debt facilities. North Sails Debt Consumer Global £66.6m
North Sails Apparel Debt Consumer Global £44.3m
Fund Facilities Debt n/a n/a £6.9m
Total direct investments £157.9m
Total OCI investments £632.5m
Cash, other assets and liabilities £171.9m
Total OCI NAV £804.4m
Other Assets and Liabilities comprise OCI’s share of, primarily, cash, receivables and third-party fund debt facilities.
Direct equity securities Direct debt securities The Company also provides an annual
Investor’s confidence in Time Out’s ability to The Company provides debt facilities to revolving credit facility to Fund I which
bounce back from the pandemic was reflected certain portfolio companies. These are was renewed in June 2021.
in a significant increase in the share price provided at market interest rates, allowing
from 35.5p at 31 December 2020 to 59.5p OCI to generate higher returns than would be
at 30 June 2021. 2020 was a challenging earned on cash reserves.
year for Time Out due to the unprecedented
impact of COVID-19, however the measures As noted on page 23, Fund II exited the
that the Company has taken to adapt the Digital Wholesale Solutions division of the
re-opening of the Time Out Markets and the Daisy Group. A direct loan of £17.5 million,
further strengthening of the balance sheet including interest was repaid to OCI using
by successfully completing an equity placing part of the proceeds from the realisation.
in April, raising £17 million, has enabled the At the period end, loans to the portfolio
performance of the business to improve company North Sails were £110.9 million.
in 2021.Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 29 Portfolio Companies 31 Technology Portfolio Companies 36 Consumer Portfolio Companies 39 Education Portfolio Companies
Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 30 Technology: £243.9m Consumer: £308.0m Education: £214.1m HY21 £243.9m HY21 £308.0m HY21 £214.1m FY20 £184.9m FY20 £260.6m FY20 £192.7m FY19 £247.9m FY19 £236.6m FY19 £231.5m Read more on page 31 Read more on page 36 Read more on page 39
Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 31
TECHNOLOGY PORTFOLIO COMPANIES
Technology sector
Oakley has built a Oakley has built a successful track-record backing technology-led, forward-thinking companies that
provide B2B and B2C solutions. In B2B, a heritage in web hosting and telecoms has extended to cloud-
successful track- based Software as a Service (‘SaaS’) solutions, whilst in B2C, Oakley is one of the leading investors in
record in backing online marketplaces.
technology-led
businesses.
Sector investments1 NAV breakdown
OCI’s share of OCI’s share of
Investment Oakley Fund open cost (£m)1 fair value (£m)1 % of OCI NAV
WebPros Fund IV 43.3 55.6 6.9%
idealista Fund IV 41.5 41.5 5.2%
£ 243.9m
Facile Fund III 20.0 40.3 5.0%
TechInsights Fund III 0.3 25.8 3.2%
Grupo Primavera Fund III 22.6 22.6 2.8%
Contabo Fund IV 4.8 18.4 2.3% Technology
sector
7NXT Origin 10.2 13.9 1.7%
Daisy Fund II 8.5 11.5 1.4%
atHome 2
Fund III 0.0 8.5 1.1%
ECOMMERCE ONE Origin 5.8 5.8 0.7%
1
OCI’s open cost and valuations represents OCI’s indirect investment through the Oakley funds and is calculated on a look-through basis.
2
Entire cost invested in atHome has been returned.Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 32
TECHNOLOGY PORTFOLIO COMPANIES CONTINUED
Technology sector
WebPros Idealista Facile
New investment – Fund IV
The WebPros Group comprises two of the most The leading online real estate classifieds platform in Italy’s leading online destination for consumers to
widely used web hosting automation software Southern Europe. compare prices for motor insurance, energy, telecoms
platforms, simplifying the lives of developers and personal finance.
and web professionals the world over.
WebPros has continued to perform strongly throughout H1 idealista has continued to progress well since Oakley’s Facile has remained resilient in H1 2021, despite continued
2021. Revenue for the six months ending 30 June 2021 was investment in January 2021. Across all three of idealista’s challenges in Italy posed by COVID-19. The business
up 23% against the prior year and EBITDA was up 28% core markets, traffic and leads are performing extremely grew revenue and EBITDA 18% and 10%, respectively,
against prior year. well. The number of subscribing agents are also at very against the prior year. Facile’s core insurance vertical
good levels and the combination of idealista with Casa.it, showed progress in new business contracts and its
The performance throughout the business has been which was agreed last year, is providing strong benefits for insurance field sales force has continued to perform
primarily driven by organic growth and price increases both agents and consumers in Italy. well as a result of strong productivity across all agent
implemented across both cPanel and Plesk. cPanel has cohorts. In Facile’s non-insurance verticals, Gas & Power
delivered organic growth and price increases in line with Growth for the first six months of 2021 has been in
has continued to perform well whilst broadband has seen
expectations, offset slightly by underperformance in line with pre-COVID-19 trends, and ahead of Oakley’s
mixed performance in H1 2021, with higher-than-expected
specific customer contracts. Plesk has delivered organic investment case.
conversion and commission rates being outweighed by
growth above expectations. lower traffic volumes. Mortgages has seen a very strong
H1 2021, benefiting from a continued rebound in the Italian
real estate market.
OPEN COST OPEN COST OPEN COST
£ 43.3 m £ 41.5 m £ 20.0m
FAIR VALUE % OF OCI NAV FAIR VALUE % OF OCI NAV FAIR VALUE % OF OCI NAV
£ 55.6 m 6.9% £ 41.5 m 5.2% £ 40.3 m 5.0%Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 33
TECHNOLOGY PORTFOLIO COMPANIES CONTINUED
Technology sector
TechInsights Grupo Primavera Contabo
TechInsights is the content information platform for The largest independent provider of business A leading cloud infrastructure provider focusing on
the semiconductor market providing unique insights software in Iberia. infrastructure as a service (‘IaaS’) and platform as a
through reverse engineering to support the Product service (‘PaaS’) solutions with over 100k customers
Benchmarking and Intellectual Property strategy. from 186 countries.
TechInsights has performed strongly in H1 2021. Following The Ekon Group (excluding Primavera) performed well in Contabo has continued to see strong performance
a challenging market environment in 2019 and 2020, the H1 2021, with performance exceeding expectations across throughout H1 2021. Trading for the Group (including the
semiconductor industry is expected to recover in 2021 and the Group, as the market environment for new customer two add-ons VSHosting and G-Portal) has been strong,
grow strongly. TechInsights remained resilient throughout acquisitions improved with the easing of COVID-19 generating revenue and EBITDA growth of 64% and 71%,
this negative cycle and is recording positive growth restrictions. In the six-month period, revenues were up 9% respectively, against the same period last year. The Group
against the prior year. against the same period last year, largely driven by the acquired G-Portal, a rapidly growing platform as a service
acceleration of SaaS and Subscription revenues which provider in the gaming space in April 2021. The business
The business continues its shift towards recurring grew by 25% and 64%, respectively, against the prior year, provides a gaming platform for ~90 different multi-player
revenues and the transition has been accelerated by the as a result of strong growth in Ekon, Contasimple and games worldwide and has a premium positioning in
acquisition of IHS Markit’s Teardown division, c.60% of run Diez Software. terms of web interface and support. Currently, Contabo
rate revenues are now recurring versus 15% at the time of operates cloud infrastructure in 20 lean and highly efficient
Oakley’s acquisition. In H1 2021, Ekon signed the transformative acquisition of data centres in Germany, the Czech Republic , the USA,
Primavera, an Enterprise Resource Planning provider of Japan, Australia and Singapore, giving the business a truly
similar scale to Ekon, operating predominantly in Portugal. global presence.
The full group has been rebranded to Grupo Primavera.
OPEN COST OPEN COST OPEN COST
£ 0.3 m £ 22.6 m £ 4.8 m
FAIR VALUE % OF OCI NAV FAIR VALUE % OF OCI NAV FAIR VALUE % OF OCI NAV
£ 25.8 m 3.2% £ 22.6 m 2.8% 18.4 m
£ 2.3%Overview Strategic Report Oakley Funds Portfolio Companies Supplementary Information Financial Statements 34
TECHNOLOGY PORTFOLIO COMPANIES CONTINUED
Technology sector
7NXT Daisy atHome
Germany’s market leader in female-focused online The UK’s number one independent provider An online property group comprising a portfolio of
fitness subscriptions, nutrition and wellbeing. of converged B2B communications, IT and real estate and automotive online classifieds and
cloud services. financial services.
7NXT has continued to perform well in the period ending In the six months to 30 June 2021, Daisy generated In the 12 months to 30 June 2021, atHome Group
30 June 2021, delivering EBITDA growth of 124% against revenue broadly in line with prior year. The SMB division successfully navigated COVID-19 related challenges
the same period last year. The core business, Gymondo, was slightly down against the previous year due to lower across all verticals. The business continues to benefit from
which offers subscription-based access to high-quality mobile revenues and one-off mobile kit sales. DCS the accelerated consumer transition to online research
workout videos, customised fitness programmes and however performed better than expectations, with strong and purchasing, especially in the less digitally mature
personalised nutrition plans performed particularly well in one-off project revenues and IT services sales, slightly mortgage and car verticals. The Group reported revenue
H1 2021, achieving EBITDA growth of 129% against the offset by lower mobile and connectivity revenues. and EBITDA growth of 16% and 14%, respectively, versus
prior year. This growth has been driven predominantly by the previous year. atHomeFinance and LuxAuto continue
marketing efficiencies within German-speaking Europe Due to the impact of COVID-19 restrictions on project to grow strongly and remain the number one destinations
and savings in international marketing expenses. The implementation and new business wins, the Allvotec for consumers in Luxembourg looking to take out a
second business in the group, Shape Republic, a direct-to- division did not perform as well as expected in the period. mortgage or buy a second-hand car. atHomeProperty has
customer brand selling fitness and nutrition supplements However, Daisy’s core markets and pipeline are showing also proved resilient and management are optimistic about
predominantly via online channels, continues to show signs of improvement. the growth of the property business in FY 22 as the impact
positive momentum with revenue to 30 June 2021 32% of COVID-19 eases.
higher than in the prior year.
OPEN COST OPEN COST OPEN COST
£10.2 m £ 8.5 m £ 0.0m
FAIR VALUE % OF OCI NAV FAIR VALUE % OF OCI NAV FAIR VALUE % OF OCI NAV
£13.9m 1.7% £11.5 m 1.4% £ 8.5 m 1.1%You can also read
