Kelso Group Holdings Plc · LSE:KLSO
Kelso — Investor Presentation (November 2023)
23 slides from Kelso's investor presentation, Nov 30, 2023
Slide 1: Unlocking trapped value in UK listed companies
Unlocking trapped value in UK listed companies Kelso Group Holdings PLC | Investor presentation 1
Slide 2: Disclaimer
Disclaimer The information contained in this confidential document (“Presentation”) has been prepared by Kelso Group Holdings plc (the "Company"). It has not been verified and is subject to material updating, revision and further amendment. This Presentation does not constitute a prospectus or offer
Slide 3: Kelso summary
Kelso summary Summary Current market conditions have created a significant opportunity to unlock trapped value in UK small-mid caps UK public market valuations are at ~35 years lows relative to the RoW. ~30 companies with a market cap £50m-£1bn have been taken private since the start of 2023 Kelso f
Slide 4: Current market conditions have created a significant opportunity to unlock trapped value
Current market conditions have created a significant opportunity to Market opportunity unlock trapped value in publicly listed UK small-mid caps¹ Current market conditions Opportunity Recent market and economic pressure globally and in Perfect storm: leaves significant value in UK small- UK mid cap
Slide 5: UK public market valuations are at ~35 year lows relative to the RoW
UK public market valuations are at ~35 years lows relative to the Market RoW. ~30 companies with a market cap £50m-£1bn have been context taken private since the start of 2023 Blended valuation: UK vs. RoW post-1989 Select UK take private targets since 2023 Equity Valuations (1989-2023 av=100) Avera
Slide 6: Kelso is a permanent capital listed vehicle that invests in and engages with companies
Kelso is a permanent capital listed vehicle that invests in and engages with companies to help drive change that unlocks Why Kelso shareholder value Benefits Provides stability from an ability to weather market cycles A permanent capital listed vehicle and avoid forced sell-offs Managed by a senior
Slide 7: The senior team and board have significant experience
The senior team and board have significant experience across Team equity markets, investment management and shareholder activism Sir Nigel Knowles David Charters Sarah Rajani John Goold Mark Kirkland Jamie Brooke Non-Executive Non-Executive Non-Executive CEO CFO CIO Chairman Director Director CEO of
Slide 8: Kelso focuses on targets trading significantly below intrinsic value
Kelso focuses on targets trading significantly below intrinsic value Investment and frustrated institutional shareholder base. The minimum target criteria IRR per investment is 20% Company selection criteria Target returns and holding period Sector agnostic Each project must have clear plan and runw
Slide 9: Investment process
Investment Investment process process Build position, engage Unlock trapped value Conduct focused due diligence and value with stakeholders Screen for most attractive investment creation plan Do what it takes to unlock opportunities Invest in the business, shareholder value often illiquid so require
Slide 10: Kelso engages with target's boards and major shareholders
Kelso engages with target’s boards and major shareholders across Active strategy and IR, and corporate actions/structure to help unlock engagement approach value Engagement with board Engagement with shareholders Right management team and Combining the interests of smaller board in place with releva
Slide 11: Since Jan 2023, Kelso has raised £6 million across two fundraising rounds
Since Jan 2023, Kelso has raised £6 million across two fundraising First year overview rounds, appointed three NEDs and completed multiple investments Interim results Sir Nigel Knowles show net profit and David Charters post expenses, CT become and MIP of £1.0m, Sarah Rajani Chairman & SID £3m raise
Slide 12: Current portfolio
Current Current portfolio portfolio Shares Current Current Change Investment Shares In price Cost Stock held price¹ value vs. cost % change % of NAV date (m) (p) (£m) (%) (p) (£m) (£m) Jan-Apr 5.0m 0.4% 61.4p £3.1m 80p £4.0m +£0.9m +30% 52% 2023 Sep 2023 3.4m 5.4% 33.5p £1.1m 28p £0.9m -£0.2m -18% 1
Slide 13: Achieving the price target for each investment would deliver a ~2x return on cost
Achieving the price target for each investment would deliver a ~2x Price target return on cost In Price Target Target Cost Change vs. cost Stock price target¹ return value % NAV (£m) (£m) (p) (p) (%) (£m) 61.4p ~120p ~90% £3.1m £6.0m +£2.9m 58% 33.5p ~80p ~140% £1.1m £2.7m +£1.6m 22% 108.5p ~175p ~6
Slide 14: THG (1/3)
THG THG (1/3) Key stats Current Shares in Market cap¹ Investment Shares held Target return Ticker share price¹ issue¹ (£m) date (m/%) (%) (p) (m) THG 80p 1,300m £1,018m Jan-Apr 2023 5.0m/0.4% ~90% Company overview Investment thesis THG is a British e-commerce company that was founded in The nutritio
Slide 15: THG (2/3)
THG THG (2/3) THG receives Kelso notes the RNS sets out the preliminary progress made by value proposition approach from THG including and the SoTP Apollo (share price release of the thesis reached ~120p) Golden Share 31st 17th 13th Jan Apr Jul Jan-Mar 30th 12th 13th Aug-Oct 2023 Mar May Jul 2023 In
Slide 16: THG (3/3)
THG THG (3/3) RNS – 31st January 2023 Press coverage Kelso is pleased to announce its investment in THG with the purchase of 5.0m shares at an average price of 54.5p, representing 0.4% of THG. The Board of Kelso believes that THG is a hugely exciting but significantly undervalued business. Matthew M
Slide 17: The Works (1/2)
The Works The Works (1/2) Key stats Current Shares in Market cap¹ Investment Shares held Target return Ticker share price¹ issue¹ (£m) date (m/%) (%) (p) (m) WRKS 28p 62.5m £17.3m Sep-2023 3.4m/5.4% ~140% Company overview Investment thesis The Works is a family-focused value retailer that sells book
Slide 18: The Works (2/2)
The Works The Works (2/2) RNS – 25th September 2023 Press coverage Kelso, the main market listed investment company, is pleased to announce that it has made its second investment, having purchased 2.0 million ordinary shares in TheWorks (LSE: WRKS) at an average price of 31.3p, representing 3.2% of
Slide 19: NCC Group (1/2)
NCC Group NCC Group (1/2) Key stats Current Shares in Market cap¹ Investment Shares held Target return Ticker share price¹ issue¹ (£m) date (m/%) (%) (p) (m) NCC 120 313m £377m Oct-2023 1.3m/0.3% ~65% Company overview Investment thesis NCC Group was founded in 1999 and admitted to AIM in NCC is the
Slide 20: NCC Group (2/2)
NCC Group NCC Group (2/2) RNS – 10th October 2023 Press coverage Kelso, the main market listed investment company, announces that it has made an investment in NCC (LSE:NCC), having purchased 1.0 million ordinary shares at an average price of 108p, representing 0.3% of the issued share capital of NCC
Slide 21: Angling Direct (1/2)
Angling Angling Direct Direct (1/2) Key stats Current Shares in Market cap¹ Investment Shares held Target return Ticker share price¹ issue¹ (£m) date (m/%) (%) (p) (m) ANG 40p 77m £31m Nov-2023 2.3m/3.0% ~100% Company overview Investment thesis Angling Direct was founded in 1986 and is the UK’s larg
Slide 22: Angling Direct (2/2)
Angling Angling Direct Direct (2/2) RNS - 29th November 2023 Press coverage New investment in Angling Direct Plc ("Angling") Kelso is pleased to announce that it purchased 2.32 million ordinary shares in Angling, at an average price of 35.1p, representing 3.0% of the total issued share capital in th
Slide 23: Kelso has made significant progress in the first year of operation
Kelso has made significant progress in the first year of operation Conclusion Current UK small-mid cap market offers a significant opportunity for investment Kelso offers a focused opportunity for significant returns The Directors own 21% and are fully aligned Kelso is fully invested in four current
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