Leading CI firms bounced back in 2020 despite Covid

The annual report from Bailiwick Investments, the investment company which backs a variety of local businesses, indicates how companies across a range of trading areas largely overcame the Covid challenge and 12-week lockdown in the spring of 2020.

‘It is clear that 2020 and early 2021 has been a pivotal period in the life of the companies. During this time, the companies have displayed resilience and maintained momentum,’ said Bailiwick Investments chairman and former Bailiff Sir Geoffrey Rowland in the report.

‘We have been encouraged by the response of the companies and their management teams to the pandemic. They have each applied a high level of focus in order to help their respective businesses navigate their way through the crisis.

‘The companies have emerged from the challenging experience leaner, more nimble, and have the potential to grow faster.’

The investment fund’s net asset value fell 20p per share to 113.19p from the start of 2020 to the end of March, immediately after the island’s first lockdown, but it recovered to almost return to its starting value by the year end and has since grown to 139.98p at the end of March 2021.

Many of the companies backed – which include SigmaRoc, owners of Ronez, Oatlands Village, The International Stock Exchange Group, Guernsey Recycling, Channel Islands Media Group, owners of the Guernsey Press, and retailer SandpiperCI – outperformed or equalled their prior year valuations.

The main exception was motor trader Jacksons CI, but the company did recover post-lockdown to hit budget targets for the second half of the year.

Of those listed trading companies, SigmaRoc, TISEG and Jersey Electricity all saw an increase in share price. SigmaRoc saw a massive increase in revenues year-on-year, which was driven by acquisitions in Belgium and the UK, and issued shares to raise funds for a European concrete acquisition in 2021. The Stock Exchange saw a record number of listings, up 6%, and its share price rose £2 over the year.

SandpiperCI performed strongly over the year despite the closure of its non-food retail stores during lockdown, with revenues, largely driven from food sales, topping £200m., up 7% year-on-year. Oatlands came back strongly from the significant losses suffered during lockdown, based on almost exclusively local clientele. It continues to develop expansion plans on the site, including a drive-in takeaway food outlet.

Bailiwick Investments, which is managed by Ravenscroft, saw its total returns for the year rise by some £4m.

‘The management of the businesses within the fund have done an incredible job of dealing with a year that no-one could have predicted. Covid-19 presented an enormous challenge and required quick thinking and agility. The fact that they have not only survived, but are now mostly thriving, is testament to the management, the staff and the support from islanders. Many of the businesses are now excited about their futures as we look forward to a summer which is very different to 2020,’ said Jon Ravenscroft, CEO of Ravenscroft.

‘Local investments remain extremely popular with Channel Islanders who like the opportunity to invest in businesses they know and use regularly and can play a part in their success.

‘There are now only a few ways that islanders can invest locally as many of the names from a few decades ago have been privatised. However, the appetite remains and as investment manager to Bailiwick Investments, we are delighted by the demand from investors and the performance of the fund. It’s a great indicator of the wider economy and the prosperity of the Channel Islands.’