Electra Private Equity Assets Fall As Portfolio Realisations Continue

LONDON (Alliance News) - Electra Private Equity PLC net asset decreased in financial 2019 as the ...

Alliance News 16 May, 2019 | 10:09AM
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LONDON (Alliance News) - Electra Private Equity PLC net asset decreased in financial 2019 as the investment trust adopted the realisation policy voted in by shareholders in October.

"Having doubled shareholder value between 2015 and 2017, 2018 was a year in which we reflected on the future and embarked on the optimisation of our remaining assets," said Chair Neil Johnson.

At March 31, Electra's NAV per share stood at 509.43 pence compared to 892.40p at September 30 and 1,109.27p at the same point a year prior.

The investment trust's net assets decreased to GBP195 million from GBP342 million six months ago and GBP425 million twelve months ago.

Chief Financial Officer Gavin Manson said: "Having determined our future strategy and completed satisfactory exits from our main non-controlled corporate assets early in the current financial year, our focus going forward is on working with management to create value in the remaining controlled portfolio and in completing the realisation of our non-core assets. This focus is supported by the greatly simplified corporate and operating structures we now have in place and through the continued active reduction of our cost base."

Electra's portfolio was valued at GBP172 million at the end of year, down from GBP264 million the year before. The investment trust saw GBP118 million in total realisation in financial 2019, with GBP96 million coming from Photobox and GBP21 million from Knight Square.

The majority's of Electra's remaining portfolio is made up of a GBP131.9 million investment in casual restaurant chain TGI Fridays, which represents 345p of Electra's NAV or 68%.

Johnson added: "We have adjusted our cost base to better reflect the size of the remaining business and are working with our portfolio companies to grow value. Our portfolio has further significant value creation opportunities and we are confident that we will continue to provide shareholders with attractive returns in the period up until our wind-down, which will follow realisation of our existing investments in the medium term."

Electra did not declare an interim dividend but intends to distribute the proceeds of its asset realisations as the occur.

Shares in Electra Private Equity were down 0.3% Thursday at 336.09 pence each.

By Paul McGowan; paulmcgowan@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Electra Private Equity Ord 346.39 999 -
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