18th Jun 2025 14:40
(Alliance News) - Rockwood Strategic PLC on Wednesday said profit increased more than fourfold during an "eventful" financial 2025.
The London-based investor in smaller UK companies posted pretax profit surged to GB13.9 in the 12 months to March 31, from GBP2.9 million the year prior.
Total income also multiplied to GBP16.5 million from GBP3.8 million in financial 2024. Net gains on investments increased to GBP15.2 million from GBP2.9 million.
Revenue was up 15% at GBP1.3 million compared to GBP1.1 million the previous year.
Net asset value per share at March 31 was 248.79 pence, 17% higher than 206.04 pence on year for a NAV total return rate of 21%.
This beat not only the 5.1% rate Rockwood posted in financial 2024, but also the firm's comparators. The FTSE Small Cap index reported a rise of 3.4% in NAV total returns for the same period, while the AIM All-Share index posted a decline of 8.2%.
Rockwood noted that its share price maintained an average 2.9% premium to NAV throughout the 2025 financial year. On Wednesday afternoon, the company's shares were up 0.9% at 284.00 pence each in London, reflecting a 14% premium to NAV.
The firm suggested it had benefitted from a flexible approach to its portfolio, noting: "Half of the top ten holdings have changed in the last year. This ability to re-cycle and renew our portfolio provides confidence in the dynamism of our approach and that the seeds of future NAV growth are being sown."
Rockwood went on to say that its "highly stock specific approach" kept the portfolio in good shape regardless of external volatility.
The firm will retain the maximum capital allowed until it has gained more scale. Rockwood has a dividend policy to pay at least 85% of net income after expenses, but set no dividend, explaining: "During the period, modest levels of portfolio income did not exceed running expenses."
The firm's top ten holdings made up 63.1% of the portfolio, as of March 31. Its largest holding is a 13.9% stake in Abingdon, Oxfordshire-based education company RM PLC. Rockwood said the stake was worth about GBP13.4 million at March 31, with an internal recurring return rate of 60%.
Chair Noel Lamb commented: "Rockwood Strategic is clearly demonstrating that its differentiated approach works. We are delighted that through our issuance programme many new investors are becoming shareholders and we are able to continue to scale the Trust and deploy capital into this overlooked part of the UK stock market."
The firm issued 7.6 million new shares in financial 2025, an increase of about 25%.
Shares in Rockwood Strategic were up 0.9% at 284.00 pence in London on Wednesday afternoon.
By Holly Munks, Alliance News reporter
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