Rockwood Strategic PLC on Thursday said its net asset value has risen for the first half of its 2025 financial year, in a trading update ahead of its interim results.
The London-based investor in smaller UK public companies said it expects to report a net asset value total return of around 23% for the six months to September 30, which it compares to a 13% increase in the FTSE Small Cap ex Investment Trusts for the same six-month period.
It also said that ‘significant investor demand’ has resulted in the issuance of 3.2 million new shares, increasing the share count by 10% and, alongside performance, growing net asset value to £87 million.
Rockwood’s largest holding, Funding Circle Holdings PLC, rose 217% in the first half of financial 2025, following its sale of loss-making US operations, its launch of a ’streamlining’ initiative that led to UK profitability for the first time, and ‘significant’ share buybacks.
Richard Staveley, fund manager at Harwood Capital LLP, said: ‘We are pleased to have navigated a volatile period for UK small companies delivering strong net asset value growth and further outperformance of peers and relevant indices ahead of our target returns. The change in government has raised widespread concerns about the future taxation of gains made from investing in the British stock market, and potential changes to other reliefs that may restrict risk capital finding its way into the UK’s most promising small companies. We hope sense prevails.
‘We remain focused on finding the very best opportunities in this inefficient market. We are excited about the prospects for our undervalued holdings in the quarters and years to come, where self-help and valuation upside are the primary drivers of return.’
Shares for Rockwood Strategic were down 1.4% at 250.52 pence each in London on Thursday afternoon.
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