Oryx International Growth Fund : Annual Report for the year ended 31 March 2021.pdf

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Annual Report and Financial Statements for the year ended 31 March 2021

Index

	Page
Strategic Report
Company Overview	1
Chairman's Statement	2
Investment Adviser's Report	3
Ten Largest Holdings	4
Investment Schedule	7
Directors' Report	18
Corporate Governance Report	21
Audit Committee Report	31
Directors' Remuneration Report	35
Statement of Directors' Responsibilities	37
Independent Auditor's Report	39
Statement of Comprehensive Income	48
Statement of Financial Position	49
Statement of Changes in Equity	50
Statement of Cash Flows	51
Notes to the Financial Statements	52
Alternative Performance Measures	71
Company Information	Inside back cover

Oryx International Growth Fund Limited

Strategic Report

Company Overview

Key Figures

	At 31 March	At 31 March
(£ in millions, except per share data)	2021	2020
Net Asset Value ("NAV") attributable to shareholders
- Ordinary Shares	230.31	124.87
Investments	225.87	117.27
Cash and cash equivalents	5.78	7.74
NAV per share attributable to shareholders
- Ordinary Shares	16.42	8.80
Share Price	14.90	6.70
Discount to NAV	(9.26)%	(23.86)%
Earnings/(Loss) per share	7.60	(0.60)

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Oryx International Growth Fund Limited

Strategic Report Chairman's Statement

I am very pleased to report another excellent year with the NAV increasing 86% to £16.42 and the share price increasing 122% to £14.90. This outstanding result caps off the outstanding record that Christopher Mills and his team at Harwood Capital Management have achieved over the last 25 years. At inception in 1996, £1,000 invested would now be worth over £20,000; this is a record that places this fund amongst the best performing in the London market.

As the Investment Manager's report and the descriptions attached to the top ten holdings supports, the company holds a number of positions in companies across a wide range of activities that have stood it in good stead in these rapidly changing times. The focus on only investing in companies that have good balance sheets has seen us through the challenges of Covid with some standout results which has fed, in turn, into the substantial rise in the net asset value. It once again endorses the management philosophy of only investing in companies where the investee companies have good prospects, active management and conservative balance sheets.

While the Company used the authority to buy back shares during the year sparingly, we intend to renew it for a further year at the AGM to assist, if appropriate, in the management of the discount and to enhance shareholder value.

In line with our stated policy, the board do not intend to pay a dividend.

In view of the positioning of the portfolio in the market, your board remain confident that the strategy pursued by Harwood Capital Management (Gibraltar) Limited and the team led by Mr Christopher Mills will continue to deliver, over the long term, good returns to the shareholders.

Nigel Cayzer

Chairman

7 July 2021

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Oryx International Growth Fund Limited

Strategic Report

Investment Adviser's Report

It is pleasing to note that the Oryx International Growth Fund Limited ("Company") has had another successful period of performance, following a difficult start to 2020 with the damage done to the economy by Covid-19. The NAV per share rose by 86.6% for the year ended 31 March 2021, which compares very favourably with the increase in the appropriate indices.

Quoted equities:

The rise in NAV was positively impacted by positive gains in every one of the top ten holdings. RenalytixAI (+328.6%) and EKF Diagnostics (+212.0%) were the most notable contributors, with positive data driving the performance of Renalytix and EKF benefiting from its Covid-19 related Primestore MTM product. Sureserve climbed 93% in the period on the back of green initiatives laid out by the government that should benefit its compliance business. Gleeson Homes gained 55.9% over the period as consumers regain confidence and look to acquire new build homes.

Over the period the Company added several new positions to the portfolio. GYG provides maintenance services to superyachts. The investment was made on the back of its rising order book and current trends of newly minted billionaires spending newfound wealth on luxury assets. Tissue Regenix, a medical technology company, has undergone significant cost reduction and operational restructuring under new management and offers significant upside as surgeries gradually come back online. Another addition, Wandisco, is a business that moves data to and from the cloud, counting Microsoft and Amazon as two of its largest customers and plans to add Google and Snowflake later this year.

Finally, the Company exited its position in Totally Group with a satisfactory 138.0% gain in the period as we believe the shares to be fully valued at their current level.

Unquoted equities:

The year under review was a satisfactory one for the unquoted portfolio with Source Bioscience going public at a substantial uplift to the prior year valuation.

We are optimistic that the current year will see further progress with the sale of Hansard and IPO of Antler, both at a good uplift to the current valuation. Trellus is also going public, and we are hopeful of a very substantial uplift. There is also likely to be a process started on Viking to go public, although any uplift is likely to be modest.

Tradewise remains a problem but with the investment largely written off, the impact of the company having further bad news going forward is insignificant.

Outlook:

The year ended with the UK in touching distance of its third lockdown ending. While there is no guarantee or assumption that we are now on the right side of this global pandemic, we can hope for a more favourable economic environment going into the next investment period. External investment in the UK, most significantly the US, has surged as foreign managers take comfort that the 'Brexit Issue' has largely been resolved and de-risked. Public company valuations in the UK are still significantly discounted to their American counterparts, which supports a more optimistic outlook for UK equities.

Additionally, we expect consumer spending to dramatically increase as consumers exit lockdown and return to the high street, sport, and leisure venues. It is important to note that the portfolio had an extremely strong performance in its past year and this return will be extremely difficult to replicate this year. With that said, we continue to work closely with management teams, both old and new, and will continue to actively search for exciting investment opportunities.

Harwood Capital Management (Gibraltar) Limited

7 July 2021

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