Trading Update

RNS Number : 6652V

Rockwood Strategic PLC

11 April 2023

 

Rockwood Strategic plc
("RKW" or "the Company")

Trading Update

Rockwood Strategic plc (LSE: RKW) today provides an update ahead of publication of its audited results for the twelve months ended 31 March 2023 (the "Period").

Highlights

·     Net Asset Value (NAV) Total Return in the period of +21.4% to 1959.56/share which compares to declines in the FTSE Small Cap (ex-ITs) of -15.7% and FTSE AIM All Share of -22.4%.

· Total Shareholder Return in the Period was +28.2%.

·     No. 1 ranked fund over the last 12 months and 3 years by Total Shareholder Return and Net Asset Value Total Return in the AIC UK Small Companies sector.

·     NAV Total Return performance in the three years to 31 March 2023 of 116.9% which compares to the FTSE Small Cap (ex-ITs) of 49.6%. The Total Shareholder Return in the same three-year period was 139.4%.

· At Period end the Company traded at a discount of 7.1% to NAV.

·     Net cash of £10.5m at the end of the Period (representing 21.2% of NAV) due to the takeovers of Crestchic (Nicholas Mills was a NED of Crestchic) and Seraphine, plus special dividends from Centaur Media (Richard Staveley is a NED of Centaur Media), demonstrating the investment team's engaged strategy to maximise investment returns.

·     Prior to period end the re-investment phase commenced in an opportunity-rich market environment; initially into 5 new holdings, alongside increased investment into specific existing investments. This takes new investments made during the year to 11 of 18 total holdings (all publicly listed).

·     Positive operational updates across the portfolio during Q1 2023 resulting in NAV Total Return of +8.3%, compared to FTSE Aim of -2.7% and FTSE Small Cap (ex-ITs) of -2.1%. Strong contributions in particular from Centaur Media, MC Saatchi, RM Group and Pressure Technologies; all of which the Investment Manager believes are still materially undervalued by the stock market.

Richard Staveley, Fund Manager, Harwood Capital LLP said:

"We are clearly delighted with this year's best in sector results. Rockwood's strategy is differentiated, effective and being executed in favourable conditions for our value and recovery style of investing. We are excited about the current, concentrated portfolio's prospects for further material NAV growth and have a full pipeline of potential money-makers competing for our capital, which we are carefully deploying. The current mix of macro and market worries are not distracting us from the job in hand: identifying a small number of outstanding, undervalued UK small cap investment opportunities. These are companies where strategic, operational or management change is unlocking, realising or creating shareholder value, often as a result of our direct engagement."

The latest Investor Presentation and Q1 Factsheet are now available at  www.rockwoodstrategic.co.uk .

Rockwood Strategic plc Chairman	Noel Lamb	020 7264 4444
Harwood Capital LLP Investment Manager	Christopher Hart	020 7640 3200
Singer Capital Markets Advisory LLP	James Maxwell Alex Bond James Fischer	020 7496 3000

 

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