Case Studies
Please find below case studies on two of our investee companies showing performance data from initial purchase against FTSE Small Cap (ex IT) Index.
Spirent Case Study
- World market leading technology business, under managed, suffering from delayed new product introductions and poor cost management
- Disappointed investors over prior 2 years
- SVG followed turnaround investor, Sherbourne Investors, which purchased a 20% stake and changed the management team
- SVG supported the EGM requisitionists
- EBIT margin in the core division has grown from <10% to >25%. Material cash flow and operational improvement
- Taking market share and poised for growth as telecoms investment grows from 2010 onwards
Performance – Total return | SPT | SMXX |
Since day of first purchase 31st August 2006 | +147% | -26% |
RPC Case Study
- European market leader in rigid plastic packaging, with significant asset backing
- Grown through acquisitions – never properly integrated or consolidated 50 sites
- Significant scope to improve operational and cash flow performance as well as governance
- Key to unlock value was replacement of long term Chairman with a quality outsider
- SVGIM worked with another investor to purchase a combined stake of >15% and engaged to improve shareholder returns
- Turnaround and improvement potential is ahead of plan
Performance – Total return | RPC | SMXX |
Since first strategic purchase | +9.5% | -36.2% |
Since engagement with company 17th April 2008 | +45.4% | -12.2% |
Statpro Case Study
- Quality growth business with aligned management (own 18%)
- Robust business model with high levels of recurring revenue
- SVG kept close waiting for an event to deploy more capital
- Close relationship resulted in SVG receiving the first call to back a placing in October 2008
- Still significant upside potential
Performance – Total return | SOG | SMXX |
Since day of first purchase 8th May 2007 | +34.8% | -38.7% |
Since SVG corner-stoned placing 16th October 2008 | +129.5% | +30.7% |