Annual Financial Statements December 2023

Marwyn Value Investors Limited

30 April 2024

 

LEI: 213800L5751QTTVEA774

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, THE REPUBLIC OF SOUTH AFRICA, JAPAN, ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA OR ANY JURISDICTION IN WHICH IT WOULD BE UNLAWFUL TO DO SO

30 April 2024

MARWYN VALUE INVESTORS LIMITED (THE "COMPANY")

Annual Report and Financial Statements 2023

Marwyn Value Investors Limited announces the publication of its annual results for the year ended 31 December 2023.

The Annual Report and Financial Statements are available on the 'Financial Reports' section of the Company's website, http://www.marwynvalue.com/company-information/financial-reports, and will be uploaded to, and available on, the National Storage Mechanism.

HIGHLIGHTS

·      Ordinary share NAV Total Return of +5.1% with £5m (9.06p per share) paid in dividends

·      AdvancedAdvT: completion of acquisitions from Capita Plc

·      Zegona: additional investment following €5bn acquisition of Vodafone Spain and €300m placing

·     Le Chameau: appointment of Waheed Ali as Executive Chairman, additional investment and reporting record sales and continuing growth

·      Investment in and launch of fund administrator, Palmer Fund Services

·      £97m net assets attributable to Ordinary shares and significant investible cash in the fund and portfolio companies

Robert Ware, Chairman of Marwyn Value Investors Limited, commented:

"As we look forward, we believe that the Company is on the cusp of an exciting period. The strategic investments made during 2023 have strengthened our position for the future. With a portfolio now full of opportunities, we are optimistic that we are well placed to deliver value creation in the coming years."

Manager's Review of 2023 and Outlook for 2024

During 2023, our portfolio companies have demonstrated resilience and adaptability in the face of market challenges and are well underway in executing their strategies.

AdvancedAdvT, under the leadership of Vin Murria, completed the acquisition of five software businesses from Capita at an attractive valuation and is now well-positioned to pursue synergistic acquisition opportunities. With a strong balance sheet and a recent transition to AIM, we are optimistic about the company's future performance.

Palmer, launched in May 2023 with an £8 million investment from Marwyn Funds (of which approximately £6.2 million was attributable to the Company's ordinary share class), has made significant strides in establishing its presence in the private capital servicing sector. The company's highly experienced management team, comprising former executives of Sanne Group plc, has been focusing on obtaining the necessary regulatory approvals. We anticipate that as Palmer starts to onboard clients throughout 2024, the company will experience rapid growth and deliver substantial returns on our investment.

Zegona Communications, led by the experienced team of Eamonn O'Hare and Robert Samuelson, made a transformative move when it agreed to acquire Vodafone Spain in October 2023. The €5.0 billion transaction (which remains conditional on regulatory approval), financed through an innovative mix of vendor preference shares, underwritten leverage, bridge financing, and a €300 million equity placement, demonstrates Zegona's expertise in identifying and executing high-potential investments in the Spanish telecommunications market. With a clear value creation plan focused on cost reduction, revenue stabilisation, and potential fixed network transactions, we are confident in Zegona's ability to drive significant returns.

Le Chameau, with the addition of Waheed Alli to its management team and a further £5 million investment from the Marwyn Funds (of which over £4.9 million was attributable to the Company's ordinary share class), is poised for significant milestones as it approaches its centenary in 2027. The combination of Waheed's expertise and the leadership of CEO Corry Cavell-Taylor provides a solid foundation for the brand's expansion and strategic initiatives in the coming years.

Marwyn Acquisition Company II has benefited from the appointment of Will Self as CEO, working alongside Chairman Mark Hodges. This strengthened management team has accelerated MAC II's focus on financial services and intergenerational wealth.

We continue to explore promising opportunities in the media and entertainment space through 450 plc and are actively engaging with potential management partners for Marwyn Acquisition Company III and MAC Alpha.

Despite the challenges posed by the current market environment, we remain confident in our investment philosophy and the resilience of our portfolio companies. We are grateful for the unwavering support of our investors and the guidance provided by our Board. As we move forward, we will continue to seek out compelling investment opportunities while prudently managing our resources to maximise long-term value creation.

PERFORMANCE

Ordinary Shares

	NAV Total Return2	FTSE SmallCap (ex-IC)	FTSE AIM All-Share
Year to 31 December 2023	+5.1%	+10.4%	-6.4%
3 Years to 31 December 2023	+26.4%	+19.8%	-31.1%
Since inception3 (23 February 2006 to 31 December 2023)	+197.4%	+162.0%	-18.9%
Post year-end
3 months to 31 March 2024	+5.7%	-1.0%	-2.3%

2016 Realisation Shares

	Shareholder Total Return4	FTSE SmallCap (ex-IC)	FTSE AIM All-Share
Year to 31 December 2023	+5.0%	+10.4%	-6.4%
Since inception5 (23 February 2006 to 31 December 2023)	+204.3%	+162.0%	-18.9%
Since creation of class6 (30 November 2016 to 31 December 2023)	+4.7%	+51.6%	+2.4%
Post year-end
3 months to 31 March 2024	+0.7%	-1.0%	-2.3%

2021 Realisation Shares

	Shareholder Total Return4	FTSE SmallCap (ex-IC)	FTSE AIM All-Share
Year to 31 December 2023	+4.2%	+10.4%	-6.4%
Since inception5 (23 February 2006 to 31 December 2023)	+193.1%	+162.0%	-18.9%
Since creation of class6 (30 November 2021 to 31 December 2023)	+8.6%	-3.4%	-33.5%
Post year-end
3 months to 31 March 2024	+5.3%	-1.0%	-2.3%

¹ Zegona's acquisition of Vodafone Spain remains conditional on certain regulatory approvals.

² NAV Total return assumes the reinvestment of dividends paid to shareholders into the Company at NAV and is calculated on a cum-income basis.

³ For the Ordinary shares, inception to date movement is based on the combined weighted average NAV of Marwyn Value Investors I, II and B shares prior to their amalgamation, using the conversion ratio published on 17 April 2008.

⁴ For the Realisation share classes, shareholder total return is calculated as the movement in total shareholder value, including all distributions made to Realisation shareholders over the relevant period.

⁵ Realisation class inception to date is calculated based on the Ordinary share performance up to the date the Ordinary shares were converted to the relevant Realisation class, then shareholder total return of the relevant Realisation class from that date.

⁶ Realisation class shareholder total return from creation of class represents total shareholder return for the relevant class from the date that Ordinary shares were converted to Realisation shares for each class.

Capitalised terms used in this announcement and not otherwise defined have the same meaning as detailed in the Company's Annual Report and Audited Financial Statements for the year ended 31 December 2023.

Company enquiries:

Company Secretary - Aztec Financial Services (Jersey) Limited

Magdala Mullegadoo / Chris Copperwaite

Telephone: [phone]

Investor Relations - Kam Bansil

Telephone: [phone]

Corporate Broker:

Chris Clarke / Owen Matthews

Liberum Capital Limited

Telephone: [phone]

The Company is a closed-ended investment company, trading on the London Stock Exchange's Specialist Fund Segment - a fully regulated market for professional, institutional and sophisticated investors. Current investments through its underlying funds include AdvancedAdvT Limited, the operating business of Le Chameau, 450 plc, Marwyn Acquisition Company II Limited, Palmer Street Limited, Zegona Communications plc, Marwyn Acquisition Company III Limited and MAC Alpha Limited.

Shares in the Company are not designed or intended for retail investors. Marwyn Investment Management LLP, the Manager, does not promote shares in the Company to retail investors and they should not be offered to retail investors.

Cautionary Statement

This announcement contains forward-looking statements which are made in good faith based on the information available at the time of its approval. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the actual results, performance.

Neither the content of the Company's website (or any other website) nor the content of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

 

END