Past performance is not a reliable indicator of future performance
Investors may not get back the value of their original investment
The value of the Investment Company and the income derived from it may go down as well as up and is not guaranteed
Investing in small and mid-sized companies may involve a higher degree of risk than investing in larger sized companies
Case studies are selected for illustrative purposes only to illustrate the investment strategy and are not investment recommendations
The Prospectus and the Key Information Document, available at www.oitplc.com, provide more information about the risk profile of the Investment Company
Executive Summary - Q3 2021
NAV growth c.2.4% over the period. Net cash ended the period at 12%
NAV per share rose 2.4%1,2 in the period, slightly lagging the NSCI +AIM ex IC index ("Comparator") which rose 2.9% 2,3
Significant volatility of absolute and relative performance over the quarter
NAV per share growth year to date of 21.1%, remains slightly ahead of the Comparator which has returned 19.9%. Net cash year to date of 7% of portfolio
Busy reporting period. Portfolio companies broadly trading in-line, benefitting from COVID re-opening No new positions started but further investments made into existing names
Two positions exited - Vectura (competitive takeover) and Volution (exit into the market)
Active engagement with portfolio companies. Clinigen - Chairman & Senior NED change & Elliot becomes a shareholder Net cash ended the period at 12% following proceeds from Vectura
Themes for the Quarter - Supply chain challenges; upside from industrial holdings; focus on B2B media
OIT's shares ended the period trading at c.3% premium to NAV of 158.2p1,2.
c.4.0m OIT shares issued in the quarter. Blocklisting remains in situ
As at 30th September 2021. Performance measured from COB 1st May 2018 Source: 1 Odyssean Capital 2 Link Asset Services 3Bloomberg. The NSCI + AIM ex Investment Company index is only used for the purposes of calculating performance fees. OIT does not attempt to match the composition of this index. The investment strategy is unconstrained and not benchmarked against any particular index. Past performance is no guarantee of future performance and the value of investments can go up and down
NAV up c.2.4% in period with shares trading at a small premium
NAV Total Return Per Share1
Share price return3
NSCI + AIM ex IC Total Return3
Average cash balance2
Rebased NAV per share and share price
vs comparator index1
NAV per share performance vs comparator index¹
OIT Share Price
As at 30st September 2021. Performance measured from COB 1/5/18, share performance since inception assumes IPO price of 100p. Source: 1Link Asset Services, Bloomberg, Odyssean Capital; Numis Smaller Companies plus AIM ex Investment Companies Total Return Index. Rebased to start NAV 2 Link Asset Services, Odyssean Capital 3 Bloomberg. YTD - Year to Date; LTM = Last 12 months. Past performance is no guarantee of future
performance and the value of investments can go up and down
Performance drivers in Q3 2021
Key stock contributors
Largest positive contributors
Flat performers / Largest negative contributors
Vectura received further bid approaches, ultimately successful bid from Phillip Morris at 165p per share
We view the final bid as fair value - returning c.40% IRR, 1.7x cash multiple
A September Q3 trading statement confirmed full year expectations in-line despite a 'challenging environment', and flagged the pipeline of further opportunities looked 'encouraging'
We remain positive on the potential for Chemring as it continues to display its quality and improving trading momentum
Interim results confirmed trading in line and flagged good progress both on operational efficiencies and development of the new e- commerce platform
We see significant opportunity for Flowtech as the group makes progress on its self help activities. The potential from the e- commerce opportunity is now more clear, offering a further medium to long term upside
Final full year results were in-line with a return to revenue growth, strong cash generation an improving order book, and positive feedback on the recent acquisition of IPM
Shares de-rated aggressively late in Q3 on no news. This may have been due to profit taking and wage inflation concerns. We remain positive on the medium term potential for NCC given the growth in its end markets
The bid for Spire from Ramsay Healthcare was voted down by shareholders and fell away. The shares have fallen back on this news
We believe that the fundamental opportunity for Spire of strong demand (long waiting lists; increased demand for self-pay) and a management team delivering cost savings supports an attractive standalone equity story
Xaar delivered an in-line set of interim results, showing revenue growth and pleasing progression on the development product pipeline.
Shares were very weak on concerns on supply chain and Chinese end demand since mid September. We view these issues as short term. Our equity thesis is based on Xaar delivering revenue growth well above GDP, leveraging past significant investments R&D and better utilising its manufacturing capacity
Source: Odyssean analysis. Past performance is no guarantee of future performance and the value of investments can go up and down.
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Odyssean Investment Trust plc published this content on 11 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 October 2021 08:51:08 UTC.