2 August 2022

Castelnau Group Limited publishes its Q2 2022 Quarterly Investment Report

Castelnau Group Limited, an investment company established to invest in public and private companies with the aim of outperforming the FTSE All Share Total Return Index over the long term, has published its Quarterly Investment Report for the three months ended 30 June 2022.

The Report is available here: https://www.castelnaugroup.com/investor-relations/reports-factsheets

Castelnau Group's portfolio comprises investments in Dignity Plc, Hornby Plc, Stanley Gibbons Group Plc, Showpiece Technologies Limited and The Cambium Group, as well as in two 'enabling' businesses, Rawnet Limited and Ocula Technologies Limited.  The Investment Manager to Castelnau Group is Phoenix Asset Management Partners Limited. Net Assets declined by 8.2% in the quarter as our holdings declined in price, particularly Dignity (-20%) and Hornby (-7.7%).

Gary Channon, CEO and CIO of Phoenix, commented:

"All our businesses are making positive progress, with new innovations and growth initiatives in the pipeline.  On the people front, we've appointed two CEOs (Dignity Plc. and Stanley Gibbons Plc.) and have made some key leadership appointments across both our business and our portfolio businesses.

"Dignity plc announced the appointment of Kate Davidson as Chief Executive Officer and I was pleased to formally hand over the business, confident that I leave it with a brighter future and that it is better led than when I took over.  Over the past 12 months, we have completely changed Dignity's strategy and have begun to change the culture, the organisational structure and the way in which the Company works. There isn't an area of the business that hasn't been changed in some way.

"At Stanley Gibbons, we announced the appointment of Tom Pickford as Chief Executive Officer. He joins in September from The Hut Group and before that, Proctor & Gamble.

"Elsewhere in the period we have undertaken work to delist Stanley Gibbons and tidy up the post-COVID balance sheet of The Cambium Group. Castelnau's cash position declined mainly as a result of participating in The Cambium Group's capital raise, which increased our holding in The Cambium Group to 60.0%.

"The NAV of the fund is a reflection of the price of things rather than the value. In our estimation, the Group is more valuable now than it was at the beginning of the year. If we are right, then in time it will show. Rising values and falling prices combine to make excellent future investment returns. We were optimistic when we floated last autumn so you can imagine we are even more optimistic now."

Enquiries:

Phoenix Asset Management Limited

+44 (0) 208 600 0100

Gary Channon

Steve Tatters

Gina Bocek

Liberum Capital Limited

+44 (0) 20 3100 2000

Darren Vickers

Owen Matthews

Will King

Citigate Dewe Rogerson

+44 (0) 20 7638 9571

Caroline Merrell

Toby Moore

Jos Bieneman