Onward Opportunities Ltd on Wednesday said its net asset value rose at the end of 2023 from nine months earlier, while saying it expects portfolio income to offset the majority of its expense ratio in 2024.
On December 31, the UK smaller companies-focused investment firm said NAV per share stood at 106.5 pence, representing a NAV total return of 11% over the nine months.
Having listed in March, Onward Opportunities said it has been an ‘encouraging’ first financial year, noting it was ahead of target returns in ‘difficult’ market conditions.
It said it outperformed the UK AIM All-Share index by 17%, as the index fell by 5.3%. Onward Opportunities noted ‘top decile’ performance in the AIC UK Smaller Companies sector since inception.
Onward Opportunities said it delivered an aggregated internal rate of return of around 23%, while the invested portfolio at the end of 2023 generated an unrealised IRR of roughly 40%. At the time of the IPO, it said it targeted returns of over 15% IRR.
‘This early IRR performance is indicative of further upside within the existing portfolio, as well as the attractive pipeline of portfolio investments the manager is identifying in current markets over the medium to long term,’ the company said.
Onward Opportunities also said that its portfolio has captured an income stream, that at 2024 dividend levels, is expected to offset the majority of the total expense ratio for 2024.
‘The team is delighted to have delivered a NAV return of [over] 11.3% net of launch costs in our first nine-months of operation, comparing favourably to the rest of the peer group and comparator indices. It was particularly pleasing to quickly earn back the IPO launch costs for shareholders who supported us,’ said Founder & Investment Director Laurence Hulse.
‘Onward Opportunities is all about truly active management; we are building a portfolio of specialist investment ideas for existing and prospective shareholders to access. Company resource is deployed analysing high conviction opportunities and then engaged to help unlock the value identified. We look forward to the portfolio developing further in the coming months.’
Shares in Onward Opportunities were down 1.0% to 100.00p each in London on Wednesday afternoon.
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