Rockwood Strategic optimistic despite lower first-half return
Rockwood Strategic PLC on Thursday reported weaker performance in its first half, but maintained hopes of ‘positive progress’ for the remainder of the year.
The London-based investor in small cap equities estimated a net asset value total return of 12.5% over the six months that ended September 30, compared to 22.5% in the first half of financial 2025, and 21.0% in the year that ended March 31.
This was slightly ahead of the FTSE Small Cap index excluding investment trusts, which posted a total return of 12.1%. The firm’s other benchmark, the FTSE AIM All-Share index, was ahead with a return of 14.8%.
Nonetheless, Rockwood estimated its NAV per share had risen to 279.1 pence at September 30 from 252.55p on-year and 248.79p at March 31.
The firm noted ‘significant investor demand’ in the first half and the resulting issue of 9.3 million new shares.
‘Our companies tend to be driven by ’self-help’ and strategic catalysts of a materiality that outweighs a soggy economic backdrop. Furthermore, we believe all are at a deep discount to intrinsic value. We expect positive progress across the portfolio during the rest of our financial year,’ commented Fund Manager Richard Staveley.
During the six-month period, Rockwood said it had realised its investment into Cowley, Uxbridge-based construction firm Galliford Try PLC, with a 48.2% internal rate of return and a 2.4x money multiple, thanks to the company’s ‘turnaround’ since Rockwood’s initial investment back in 2022.
It held 24 assets at the end of September, including new additions Treatt PLC and Tribal Group PLC.
The firm singled out investee Vanquis Banking Group PLC, its top five holding, which it said had increased by more than 100% during the period, partly due to more clarity on motor finance liability.
Rockwood also pointed to Filtronic PLC’s SpaceX contract win and Centaur Media PLC’s disposals of publishing assets, citing the latter as evidence of ‘the pricing inefficiency in this part of the UK stock market, the value inherent in the portfolio and the nature of available investment opportunities.’
Rockwood shares were up 0.4% at 284.24 pence on Thursday afternoon in London.
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