ROCKWOOD STRATEGIC PLC - Full Year Results

Rockwood Strategic PLC delivered another year of strong long-term company performance, maintaining its position as one of the UK’s leading smaller companies investment trusts through a differentiated, value-focused investment strategy. In its latest investor update, the trust reported a 7.1% NAV total return for the year to March 2025, despite heightened market volatility, while generating approximately 100% cumulative returns over the past five years against a challenging backdrop for UK small-cap equities. Fund manager Richard Staveley highlighted significant value creation across the portfolio, including successful exits, takeover activity and strong operational progress within core holdings. The trust continues to focus on under-researched UK smaller companies with recovery potential, targeting businesses capable of doubling in value over a three-to-five-year investment horizon through operational improvement, balance sheet strengthening and strategic change. Management remains constructive on the outlook for UK small caps, citing historically attractive valuations, improving sentiment, falling interest rate expectations and increasing corporate activity. Key portfolio opportunities include turnaround and growth stories across financial services, industrials, technology and business services, with several holdings expected to deliver substantial earnings growth in 2026. The company also highlighted continued shareholder alignment, an active engagement approach and a disciplined capital allocation strategy, with assets under management approaching £185 million and a soft capacity limit of approximately £250 million. Rockwood Strategic believes its concentrated portfolio, proven stock-picking process and focus on valuation-driven opportunities position the trust to benefit from a potential re-rating in UK smaller companies and deliver attractive long-term shareholder returns.