Interim Management Statement

RNS Number : 9367K

Electra Private Equity PLC

25 July 2011

 



EMBARGOED UNTIL 07:00 AM, MONDAY 25 JULY 2011

ELECTRA PRIVATE EQUITY PLC

Interim Management Statement for the three month period to 30 June 2011

The information contained in this announcement is restricted and is not for release, publication, or distribution, directly or indirectly, nor does it constitute an offer of securities for sale in the United States, Canada, Japan, Australia or New Zealand.

References in this announcement to Electra Private Equity PLC and its subsidiaries have been abbreviated to 'Electra' or the 'Company'. References to Electra Partners LLP and EQM Capital LLP (manager of Electra's money market investments) have been abbreviated to 'Electra Partners'.

This is the Interim Management Statement for the three month period to 30 June 2011. As is usual for the calculation of Electra's net asset value per share for the purposes of Interim Management Statements, the investment portfolio (apart from quoted investments) has not been revalued at 30 June 2011 although it does reflect purchases and sales of investments, currency movements and bid values in respect of quoted investments at that date.

Financial Highlights

Unaudited NAV per share 2,206p diluted, 2,303p basic

Share price up 4.2% against 1.7% for the FTSE All-Share Index, and up 43.7% over the year to 30 June 2011 against 22.7% for the FTSE All-Share Index

Net liquid resources of £138 million (£22 million cash, £285 million liquidity funds and bank borrowings of £169 million)

Outstanding commitments to third party funds of £103 million, expected to be substantially funded from realisation proceeds received from third party funds

Investment capacity of over £300 million

Portfolio

£23 million invested

£37 million realised

The top 10 and 20 investments accounted for 49% and 68% respectively of the investment portfolio.

Colette Bowe, Chairman of Electra Private Equity, said:

"The number of investment opportunities the Manager, Electra Partners, is actively pursuing continues to increase. The last three months have seen a modest uplift in net asset value and our share price has yet again outperformed the benchmark. Electra continues to perform well."

For further information

For Colette Bowe/Hugh Mumford

Nick Miles/Kate Ruck Keene, M Communications 020 79202330

Monique Dumas, Investor Relations Partner, Electra Partners LLP 020 72144200

1 Unaudited Net Asset Value

As is usual for the calculation of Electra's net asset value per share for the purposes of Interim Management Statements, the investment portfolio (apart from quoted investments) has not been revalued at 30 June 2011 although it does reflect purchases and sales of investments, currency movements and bid values in respect of quoted investments at that date. The impact of these changes resulted in a diluted net asset value uplift of 13p per share since 31 March 2011.

	30 June 2011 (p)	31 March 2011 (p)	Movement %
Net Asset Value per share (diluted)	2,206	2,193	0.6
Net Asset Value per share  (basic)	2,303	2,288	0.7

2 Share Price Performance

Electra's share price at 30 June 2011 was 1,733p, an increase of 4.2% over the three months while the FTSE All-Share Index increased by 1.7% over the same period. Over the year to 30 June 2011, Electra's share price increased by 43.7% while the FTSE All-Share Index increased by 22.7%.

3 Resources and Commitments

At 30 June 2011 Electra had net liquid resources of £138 million comprising £22 million cash, £285 million liquidity funds and bank borrowings of £169 million. Outstanding commitments to third party funds amounted to £103 million which the Manager expects will be substantially funded from realisation proceeds received from third party funds.

As at that date Electra had available investment capacity of over £300 million.

4 Composition of Portfolio

At 30 June 2011, Electra held direct investments in 58 companies with an aggregate value of £672 million and investments in 21 funds with an aggregate value of £116 million. The top 10 and 20 investments accounted for 49% and 68% respectively of the investment portfolio.

	* 30 June 2011 £m	31 March 2011 £m
Direct investments
Unlisted	554	572
Listed	118	112
Funds	116	108
Investment portfolio	788	792

*  Valued on the basis of Section 1 (Unaudited Net Asset Value) as set out above and excludes accrued income on the investment portfolio.

Electra's portfolio consists of investments in companies and other investment vehicles (the "investment portfolio"). The investment portfolio consists primarily of direct investments in unlisted and listed companies together with investments in funds where investments are held in limited partnerships managed by other private equity managers.

Electra will normally invest in unlisted companies but may invest in listed companies when the management team, which Electra wishes to support, operates through a listed vehicle. Listed investments may also be held where they arise from previously unlisted investments and continue to generate the returns required under Electra's investment objectives.

Investments in funds are made principally to gain exposure to geographic areas outside the UK and which, because of the relationship with the fund manager, are likely to generate co-investment opportunities for Electra.

5 Investments and Realisations

Electra invested a total of £23 million in the three months to 30 June 2011. The largest investment in the period was a secondary investment of €24 million in Steadfast Capital GmbH's second fund. Realisations totalled £37 million for the three months to 30 June 2011 of which £20 million represented proceeds received following the securing of medium-term banking finance by Sentinel. In April 2011 Electra sold one third of its investment in Daler-Rowney to the Electra Partners Club 2007 fund leaving Electra with a £17.4 million investment.

6 Steadfast Capital

In June 2011 Electra acquired a secondary investment in Steadfast Capital GmbH's second fund at a cost of €24 million together with a commitment of €2 million. This fund is fully invested and comprises five investments the largest of which are FEP (automotive connectors); Kautex (specialist manufacturing equipment); and Falk & Ross (promotional clothing distributor).

7 Top 10 Direct Unlisted Investments*

Business	Value at 31 March 2011 £'000	Net Purchases/ (Sales) £'000	Performance £'000	** Value at 30 June 2011 £'000	Cost £'000
Allflex Holdings	86,410			86,410	40,482
BDR Thermea	61,835			61,835	44,337
esure	39,752			39,752	29,733
Promontoria	38,975	(1,083)	(190)	37,702	14,063
Premier Asset Management	31,823			31,823	55,785
Capital Safety Group	21,556	1,487		23,043	19,081
Nuaire	22,770			22,770	23,138
Lil-Lets Group	21,149			21,149	21,412
Labco	19,048		435	19,483	24,189
Daler-Rowney	26,170	(8,735)		17,435	17,435
	369,488	(8,331)	245	361,402	289,655

Key Direct Listed Investments *

Business	Value at 31 March 2011 £'000	Net Purchases/ (Sales) £'000	Performance £'000	** Value at 30 June 2011 £'000	Cost £'000
London & Stamford Property	37,125	-	1,544	38,669	30,195
Zensar Technologies	22,558	-	720	23,278	4,211
	59,683	-	2,264	61,947	34,406

*  Excludes liquidity funds and accrued income

**  Valued on the basis of Section 1 (Unaudited Net Asset Value) as set out above

Disclaimer

This statement aims to give an indication of material events and transactions that have taken place during the period from 1 April 2011 to the date of publication of this statement and their impact on the financial position of Electra Private Equity PLC. These indications reflect the Board's current view. They are subject to a number of risks and uncertainties and could change. Factors which could contribute to such differences include, but are not limited to, general economic and market conditions and specific factors affecting the financial prospects or performance of individual investments within Electra's portfolio.

No information contained in this announcement shall form the basis of, or be relied upon in connection with, any offer or commitment whatsoever in any jurisdiction.

This announcement is not an offer to sell or a solicitation of any offer to buy any securities of Electra Private Equity PLC (the "Company", and such securities, the "Securities") in the United States or any other jurisdiction. The Company is not registered under the U.S. Investment Company Act of 1940, as amended (the "Investment Company Act"), and holders of any Securities will not be entitled to the benefits of the Investment Company Act. The securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and may not be reoffered, resold or transferred in the United States or to, or for the account or benefit of U.S. persons (as such term is defined in Regulation S under the Securities Act) unless registered under the Securities Act or an exemption from such registration is available. Copies of this announcement are not being, and should not be, distributed or sent into the United States. No public offering of Securities is being made in the United States. If for any reason in the future an offering of the Securities is made, such offering will be made by means of a prospectus that may be obtained from the Company and will contain all relevant information about the Company, its management and its financial statements.

 

END

 

 

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