Oakley Capital Investments delivered another year of solid progress given the tough trading climate, recording a modest increase in net asset value and making three more investments, taking the total to 10. Portfolio companies had a good year in terms of cash generation, enabling Emesa, Headland Media and Intergenia to repay a total of £17m in loans back to the company. At 135p, the shares are down a little from our buy tip (149p 26 Aug 2011) but trade at a chunky discount to net asset value. And with steady growth from the companies in the portfolio, we remain buyers.
The company invests in private equity ventures made by its associated limited partnership Oakley Capital Private Equity. Last year it acquired a 68 per cent stake in Emesa, an online business operating in e-commerce leisure and entertainment, added to the previous year's purchase of Time Out Group by taking a 65.7 per cent stake in Time Out New York, and bought a 51 per cent stake in web-hosting specialist Intergenia Holdings.
Net earnings per share were down, however, as the poor investment climate made it difficult to repeat the previous year's net realisations of £31.3m. In fact, net realisations delivered a loss of £525,000.
| OAKLEY CAPITAL INVESTMENTS (OCL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 135p | MARKET VALUE: | £173m | |
| TOUCH: | 133-137p | 12-MONTH HIGH: | 160p | LOW: 130p |
| DIVIDEND YIELD: | nil | PE RATIO: | 45 | |
| DISCOUNT TO NAV: | 21% | |||
| Year to 31 Dec | Net asset value (p) | Net investment income (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 99.0 | -2.78 | -1.00 | nil |
| 2008 | 108 | 4.99 | 6.00 | nil |
| 2009 | 141 | 2.66 | 47.0 | nil |
| 2010 | 168 | 3.47 | 27.0 | nil |
| 2011 | 171 | 4.18 | 3.00 | nil |
| % change | +2 | +20 | -89 | - |
Ex-div: na Payment: na | ||||
