LONDON (Alliance News) - Better Capital PCC Ltd Wednesday reported contrasting movements in the net asset values of its two cells over the course of its last financial year.
Better Capital's 2009 Cell showed a net asset value of GBP262.3 million on March 31, an increase from the GBP233.6 million recorded at the same stage of the prior year.
"The disappointing performance in Fund I as reported in early 2014 has been proactively addressed with positive results," Chairman Richard Crowder said of the 2009 Cell.
Crowder said the 2009 Cell's NAV growth was driven by a "solid" showing from holdings Gardner and Santia.
Gardner supplies metallic components to the aerospace industry. Santia provides consultancy and advisory health, safety and environmental services.
According to Better Capital's statement, cash remains "tight" in the 2009 Cell without a "significant" exit from an investment. There is "adequate" cash to meet "small funding requests" from portfolio companies and for fund expenses.
The 2012 Cell's net asset value was GBP339.9 million at the end of March, down from GBP375.6 million at the same point of the prior year, a result of write-downs in City Link and Jaeger.
City Link, which entered administration in December 2014, is a parcel delivery business. Jaegar is a premium clothing retailer for men and women.
A "busy period of deployment" means the 2012 Cell's uninvested cash has now fallen to GBP44.1 million. It had amounted to GBP54.7 million at the end of March.
Better Capital anticipates its balance will improve by between GBP10 million and GBP25 million through distributions from The Spicers-OfficeTeam Group Ltd and City Link in the short term. This will provide capital to deploy in "attractive opportunities" during the investment phase ending in June 2016.
The Spicers-OfficeTeam Group is comprised of Spicers, an office products and stationery wholesaler, and OfficeTeam, an office products and services supplier.
The 2009 Cell shares were up 3.8% at 104.88 pence on Wednesday. The 2012 Cell shares were flat at 71.25 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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