TIDMOIG
RNS Number : 5342J
Oryx International Growth Fund Ld
30 June 2011
ORYX INTERNATIONAL GROWTH FUND LIMITED
FINAL RESULTS FOR THE YEAR ENDED 31 MARCH 2011
Corporate Summary
INVESTMENT OBJECTIVE
The investment objective of the Company is to seek to generate
consistently high absolute returns whilst maintaining a low level
of risk for Shareholders.
The Company principally invests in small and mid-size quoted and
unquoted companies in the United Kingdom and United States. The
Investment Manager targets companies that have fundamentally strong
business models, but where there may be specific factors which are
constraining the maximisation or realisation of shareholder value,
which may be realised through the pursuit of an activist
shareholder agenda by the Investment Manager. Dividend income is a
secondary consideration when making investment decisions.
STRUCTURE
The Company is an authorised closed-ended investment company
incorporated in Guernsey on 2 December 1994. The Company's shares
have been admitted to the Official List and to trading on the main
market of the London Stock Exchange. The issued capital during the
year comprises the Company's Ordinary Shares.
INVESTMENT MANAGER & INVESTMENT ADVISER
The Investment manager and the Investment adviser during the
period was North Atlantic Value LLP, a United Kingdom limited
liability partnership incorporated under the Limited Partnerships
Act 2000 (partnership number OC304213) and regulated by the
Financial Services Authority.
DIRECTORS
NIGEL CAYZER (Chairman) COLIN HANNAWAY
British American
Nigel Cayzer is Chairman of Aberdeen Colin Hannaway has over 13 years
Asian Smaller Companies Investment of experience in the financial
Trust PLC and a non-executive services sector. Mr Hannaway is
director of Cayzer Continuation PCC currently an independent investor
Ltd. He is also a director of a and financial advisor in the United
number of private companies. He was States. His prior professional
Chairman of the Oriel Group PLC from experience includes senior roles
1989 until 1998, a non-executive in private equity, M&A and corporate
director of Caledonia Investments PLC finance with HSBC, Sterling Grace
from 1986 until 2002, the Alliance Corporation and J P Morgan Chase.
Housing Bank SAOG from 1998 until Colin Hannaway resigned from the
2006 and Chairman of the Oryx Fund Board with effect from 31 December
Ltd from 1994 until 2004. 2010.
SIDNEY CABESSA CHRISTOPHER MILLS
French British
Sidney Cabessa is Chairman of CIC Christopher Mills is Chief Investment
Finance an Investment Fund and a Officer of North Atlantic Smaller
subsidiary of French banking group, Companies Investment Trust plc,
CIC - Credit Mutuel. Mr Cabessa is a "NASCIT". NASCIT is winner of
director of Nature et Decouvertes, numerous Micropal and S&P Investment
International Metal Service, Nord Trust awards.
Est, Club-Sagem, CIC Securities, CIC
Capital Prive, Medias-Participation,
HRA Pharma and North American Banks
Fund Limited.
WALID CHATILA JOHN RADZIWILL
Canadian British
Walid Chatila is a Certified Public John Radziwill is currently a
Accountant (Texas 1984) and a director of International Assets
Chartered Accountant (Ontario 1991). Holding Corp, Goldcrown Group
He is currently the General Manager Limited, Fourth Street Capital, Ltd
of Al Nowais Investments LLC In Abu (BVI), Fifth Street Capital,Ltd
Dhabi, United Arab Emirates. From (BVI), PingTone Communications, Inc.
1994 to 2006 he was the Finance and Vendor Safe Technologies LLC. In
Director of Emirates Holdings in Abu the past five years, he has also
Dhabi and prior to that he worked in served as a director of Baltimore
audit and has more than 11 years of Capital Plc, USA Micro Cap Value Co.
international audit and special Ltd, Acquisitor Plc, Acquisitor
assignment experience in the Middle Holdings (Bermuda) Ltd and Lionheart
East and North America. Group Inc. Mr Radziwill is a member
of the Bar of England and Wales.
RUPERT EVANS JOHN GRACE
British New Zealander
Rupert Evans is a Guernsey Advocate Mr Grace is a Director and Founder of
and was a partner in the firm of Sterling Grace International Ltd. Mr
Ozannes between 1982 and 2003, Grace is also Chairman of Trustees
since then he has been a consultant Executors Holdings Ltd, the premier
to Ozannes (now Mourant Ozannes). and oldest New Zealand trust company
He is a non-executive director established in 1882. Mr Grace
of a number of other investment graduated from Georgetown University.
companies some of which are quoted Mr Grace has served as a director of
on recognised stock exchanges. numerous public companies and
He is a Guernsey resident. charities. John Grace was appointed
as a director on 8(th) March 2011.
CHAIRMAN'S STATEMENT
I am pleased to report that this year has seen the portfolio
outperforming the comparative indices with a rise of 21.9% as
against 11.5% in the FTSE Small Cap Index.
As I said in my statement last year, our portfolio was affected
by the crash and this result sees some of the value returning as
confidence builds up and action by the managers to improve
performance takes effect. The unquoted portfolio, which comprises
17.03% of the total, has a number of investments which are valued
in such a basis that reflects the uncertainty of future
realisations. The benefit of this will be seen when the
realisations take place.
Using the powers granted at the last AGM to acquire shares, the
company has acquired 1,945,054 shares during the year. The current
discount is 20% and we will seek to renew these powers at the next
AGM in order to continue management of the discount. In line with
our policy, no dividend will be paid for the period.
The current state of the economy makes any kind of prediction
difficult. However your manager's style of active management should
provide opportunities on both sides of the investment coin. Decent
businesses are still being sold for good albeit not silly prices
and likewise, these difficult times can throw up opportunities to
acquire interesting stakes at reasonable cost. We would therefore
hope to see progress continue during the current year.
As at 30 April 2011, the Company was trading at a discount of
19.64%.
Nigel Cayzer
Chairman
30 June 2011
INVESTMENT ADVISER'S REPORT
During the year under review the net asset value per share of
the Fund rose by 22.5%. This compares with a rise in the FTSE Small
Cap Index of 11.5% and a rise in the FTSE of 4.0%.
Income for the period amounted to GBP9,332,489 (2010:
GBP12,238,319). Consistent with our long term policy, the directors
do not intend to pay a dividend in respect of the period end 31(st)
March 2011.
During the year 1,945,054 shares were acquired for cancellation.
As the shares were acquired at a significant discount this has
benefited all long term shareholders.
Quoted Portfolio:
The portfolio benefited from a significant number of takeovers
during the period. In particular Chrysalis, Castle Support
Services, Inspired Gaming and Focus Solutions were all acquired at
an average premium to the valuation as at 31(st) March 2010 of over
50%.
Against this the value of the holding in Assetco was sold at
some 75% less than the 2010 valuations following very disappointing
results. New investments made during the period include GPG Group,
CVS and IDOX. Further details of these investments can be found in
the list of our largest ten holdings.
Unquoted Portfolio:
One small new investment was made during the year - Capital
Accumulation which owns the third largest provider of online
brokerage services in the United Kingdom - Interactive Investor.
Trading since the shares were acquired has exceeded expectations
and a write up was made at year end, reflecting a third party
transaction.
During the year the large holding in Avanti Bond was realised at
a substantial profit from cost, although it was necessary to write
off the Assetco warrants. The company's three largest investments
Celsis, Bionostics and Orthoproducts all performed most
satisfactorily, either achieving or exceeding budgets in all cases.
Significant amounts of debt were repaid and the average debt to
EBITDA is now below 1.5x.
It is anticipated that there will be a number of realisations in
the unquoted portfolio in the current year which we are hopeful
will be in excess of current valuations.
Conclusions:
The current year has started well and there has been a further
improvement in the net asset value since the financial year
end.
However, the broad economic background is extremely difficult -
inflation is nearly 5% but salaries are growing much less rapidly
and taxes are rising. This is producing very considerable pressure
on consumers' disposable income which will be further impacted by
the inevitable rise in interest rates during the current year.
However, many of the businesses in which the Fund has invested have
an international exposure which should mitigate against the
weakness of the domestic UK economy.
The unquoted portfolio is also expected to see a number of
realisations in the current year which should further assist the
overall performance of the Fund.
In conclusion, your managers are not complacent about current
economic difficulties but hope that through the active management
of the portfolio to achieve a further rise in the net asset value
over the coming financial year.
North Atlantic Value LLP
30 June 2011
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