Interim Management Statement

RNS Number : 5180Z

Electra Private Equity PLC

07 February 2014

 

EMBARGOED UNTIL 07:00AM, FRIDAY 7 FEBRUARY 2014

ELECTRA PRIVATE EQUITY PLC

Interim Management Statement for the three month period to 31 December 2013

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' or 'the Manager'.

Unaudited Financial Highlights for the three month period to 31 December 2013

·      Diluted NAV per share of 2,781p (2,764p at 30 September 2013)

·      Share price up 7% compared to an increase of 5% in the FTSE All-Share Index

·      Share price up 24% over the year to 31 December 2013 against a 21% increase for the
FTSE All-Share Index

·      The top 10 and 20 investments accounted for 47% and 64% respectively of the investment portfolio

·      £358 million of liquid resources (net of bank borrowings)

Portfolio Highlights for the three month period to 31 December 2013

·      £15 million invested

·      £89 million realised (inclusive of income)

Subsequent to 31 December 2013

·      £85 million invested in Hotter Shoes ("Hotter")

·      Committed to invest £83 million in Ogier Fiduciary Services ("OFS")

·      £204 million of liquid resources (net of borrowings) at 3 February 2014, following the investment in Hotter and net of the commitment to invest in OFS

Dr Colette Bowe, Chairman of Electra Private Equity, said:

"Following record levels of both new investments and realisations in the year to 30 September 2013, the Board is delighted to see a continuation of this high level of investment activity in the opening months of the new financial year. Although new investment in the three month period to 31 December 2013 was at a relatively subdued level, Electra Partners has subsequently finalised two major new investments, in January and February 2014, which will see Electra invest £168 million."

Hugh Mumford, Managing Partner of Electra Partners, said:

"The new financial year has started well, with a continuation of the high level of investment activity seen in 2013. We have maintained our patient and disciplined approach to new investment while also continuing to see performance, in the form of cash returns, from some of the more recent investments in the portfolio."

For further information please contact:

For Dr Colette Bowe/Hugh Mumford:

Andrew Honnor or Matthieu Roussellier, Greenbrook Communications                                [phone]

Andrew Kenny or Nick Board, Investor Relations, Electra Partners LLP                                  [phone]

1 Unaudited Net Asset Value

As is usual for the calculation of Electra's net asset value for the purposes of Interim Management Statements, the investment portfolio (apart from listed investments) has not been revalued at 31 December 2013 although it does reflect purchases and sales of investments, currency movements and bid values in respect of listed investments at that date. The impact of these changes resulted in an increase in the diluted net asset value of 1% since 30 September 2013.

	31 Dec 2013	30 Sept 2013	Movement
	p	p	%
NAV per share (diluted)	2,781	2,764	1

2 Share Price Performance

Electra's share price at 31 December 2013 was 2,380p, an increase of 7% over the three months to
31 December 2013 compared to an increase of 5% for the FTSE All-Share Index. Over the year to
31 December 2013, Electra's share price increased by 24% while the FTSE All-Share Index increased
by 21%.

3 Resources and Commitments

	31 Dec 2013	30 Sept 2013
	£m	£m
Liquid resources	515	452
Bank borrowings (facility committed until 2017)	(157)	(158)
ZDP shares (repayable 2016)	(62)	(61)
Convertible Bond (repayable 2017 if not previously converted)	(82)	(82)
Net Cash	214	151

At 31 December 2013 outstanding commitments to private equity funds amounted to £87 million or 8% of NAV (compared to £94 million at 30 September 2013). As at that date Electra had £358 million of liquid resources (net of bank borrowings). As at 3 February 2014, following the investment in Hotter and net of the commitment to invest in OFS, Electra had £204 million of liquid resources (net of bank borrowings).

4 Investment Portfolio

	* 31 Dec 2013	30 Sept 2013
	£m	£m
Direct unlisted	603	662
Secondaries	115	126
Funds	94	93
Listed	100	87
Investment portfolio	912	968

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

In the three months to 31 December 2013 currency movements decreased the value of the portfolio by
£5 million, although this was partially offset by gains of £2 million arising from the hedging arrangements of drawings under Electra's multi-currency loan facility.

5 Investments and Realisations

Electra invested a total of £15 million in the three months to 31 December 2013, excluding the investment in Hotter and the commitment to invest in OFS, which were made in January 2014 and February 2014 respectively.

Realisations inclusive of income over the same period totalled £89 million including £37 million of proceeds received from the sale of Lil-lets Group, £15 million received by way of loan repayments from AXIO Data Group, £12 million from the part disposal of the holding in LondonMetric Property and £9 million received as a result of distributions from the EP1 Secondary Portfolio.

6 Key Investments

Key Direct Unlisted Investments and Secondary Investments*

	Fair value of holding at 30 Sept 2013	Net payments/ (receipts)	Net performance in period	** Fair value of holding at 31 Dec 2013	Cost of holding at 31 Dec 2013
Company	£'000	£'000	£'000	£'000	£'000
EP1 Secondary Portfolio	105,633	(9,442)	(1,538)	94,653	63,606
AXIO Data Group	104,804	(14,663)	177	90,318	72,674
Park Resorts	86,823	(411)	80	86,492	69,571
Allflex Corporation	52,856	−	(1,129)	51,727	56,656
Allen & Heath	42,275	(374)	374	42,275	42,275
Peverel Group	39,943	−	−	39,943	21,973
Premier Asset Management	35,904	−	−	35,904	56,069
Nuaire	35,180	27	−	35,207	23,115
Daler-Rowney	27,524	−	−	27,524	17,435
Promontoria	27,104	−	(110)	26,994	12,606
South Lakeland Parks	21,218	−	−	21,218	21,218
BDR Thermea	19,300	2	(79)	19,223	13,472
PINE	18,250	(295)	297	18,252	14,032
Davies Group	14,832	3,074	−	17,906	38,862
Cala Group	15,642	1,641	−	17,283	14,944
Labco	16,266	−	(65)	16,201	25,336
Sentinel Performance Solutions	13,471	−	−	13,471	15,535
Sub total	677,025	(20,441)	(1,993)	654,591	579,379
Other investments	111,869	(48,419)	15	63,465
Total Direct Unlisted and Secondary investments	788,894	(68,860)	(1,978)	718,056

Key Direct Listed Investments*

	Fair value of holding at 30 Sept 2013	Net payments/ (receipts)	Net performance in period	** Fair value of holding at 31 Dec 2013	Cost of holding at 31 Dec 2013
Company	£'000	£'000	£'000	£'000	£'000
Zensar Technologies	23,754	−	12,439	36,193	4,072
LondonMetric Property	31,105	(12,077)	4,631	23,659	17,404
Sub total	54,859	(12,077)	17,070	59,852	21,476
Other investments	31,946	5,134	2,886	39,966
	86,805	(6,943)	19,956	99,818

* Excludes liquidity funds

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

7 Hotter Shoes

In January 2014 Electra invested £85 million in the buyout of Hotter Shoes, a leading UK designer, manufacturer and retailer of stylish and comfortable footwear. Headquartered in Lancashire, Hotter operates from one of the most advanced shoe making facilities in the world and sells over two million pairs of shoes each year in the UK and internationally.

8 Ogier Fiduciary Services

On 3 February 2014 it was announced that Electra had agreed to invest £83 million in the acquisition of Ogier Fiduciary Services ("OFS"), the fiduciary services division of the Ogier Group. Completion of the transaction is subject to certain conditions including regulatory approvals which are anticipated within six months. OFS provides trust, fund and company administration services to corporates, private clients and investment funds.

Disclaimer

This statement aims to give an indication of material events and transactions that have taken place during the period from 1 October 2013 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 difficulties 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.

The 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 any securities, the "Securities") in the United States or any other jurisdiction. The Company is not registered under the U.S. Investment Company Act, as amended (the "Investment Company Act"), and holders of any Securities will not be entitled to the benefits of the Investment Company Act. These 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, Canada, Japan, Australia or New Zealand. 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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