OCI’s full-year results were strong, with an annual total NAV return of 35% (three quarters of which was driven by underlying company EBITDA growth of 28%). This brings OCI’s five-year CAGR NAV total return to 19%, and is driven by i) high-growth companies/sector champions with structural tailwinds and often digital disruption benefits, ii) repeatable and proprietary sourcing, and post-acquisition support from its unique entrepreneur network, iii) recurring/subscription revenue streams, and iv) M&A-led value creation. The outlook is for more of the same. A £20m buyback has been announced, and quarterly reporting starts in April. The 23% discount to NAV appears anomalous with absolute and relative performance.
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