Quarterly Newsletter – Retail Experiences On The Ground In The United Kingdom

Welcome to Auscap’s July 2026 Quarterly Newsletter titled – Retail Experiences On The Ground In The United Kingdom.

At times, significant market volatility can create the impression that rapid change is taking place that is materially affecting the value of listed firms. The reality is, while share prices move around wildly in response to fluctuations in sentiment and investor psychology, the underlying value of these businesses is far more stable. Over the June quarter we visited the operations of a number of businesses within and outside of Australia. From being onsite at mining operations in remote parts of the country, to visiting defence sites for industrial contractors through to travelling across the United Kingdom (UK) to get first-hand experience of retail trends, our objective is to consistently spend as much time as possible in and around the operations of the companies we hold or would consider holding in the Auscap funds.

In this newsletter we discuss a few takeaways from our recent travels to the UK that have increased our conviction in the international opportunity for two retailers, Nick Scali and Lovisa, that are held as investments in both of the Auscap funds. We also detail the performance and portfolio positioning of the funds in June 2026.

Learning Outcomes: After reading this newsletter, readers should be able to evaluate how company visits and on-the-ground research can provide insights into the long-term growth opportunities, competitive positioning, and investment potential of businesses such as Nick Scali and Lovisa, while distinguishing between short-term market sentiment and underlying business performance.

This activity meets the guidelines for qualifying CPD, and has been accredited for continuing professional development by the Financial Advice Association of Australia but does not constitute FAA’s endorsement of the activity. 0.5hr CPD is available for this activity.