LONDON (Alliance News) - Better Capital PCC Ld Monday said it shares shareholders' frustration at the significant write-downs faced by one of its funds, but said it has received assurances that "the key issues" are being "firmly" addressed.
In a highly anticipated interim management statement that comes about two weeks after the company said two of its main companies in BECAP Fund LP faced significant write-downs because of poor trading, Better Capital said it still has "good expectation" of a "satisfactory" outcome for the fund. It said Thierry Bouzac was recruited as an Operating Partner in January for his "considerable experience" of undertaking operational turnarounds in the UK and Continental Europe, while "further strengthening" of the operating team is in process.
The companies were Monday revealed as Gardner and Spicers, with both businesses being hit by weaker trading while remaining profitable.
However, their valuations will fall because the last valuation was "earnings-driven."
"The anticipated write-down in the valuation of the portfolio in the 2009 Cell at March 31 2014 will give rise to a lesser reduction in the Cell's NAV due to the offset of accrued carried interest which stood at GBP8.6 million at September 30, 2013," Better Capital said in a statement.
"Deal flow continues to track at a rate consistent with previous periods; however, a higher proportion of attractive opportunities are originating from Western Europe. In the period from October 1 to February 17, seven offers were submitted on behalf of Fund II," it added.
Two were deals in the UK, three from Germany and two from Ireland. Several of these deals have been progressed to a reasonably advanced stage, Better Capital said.
"The General Partners of Funds I and II are mindful of generating distributions that can be passed onto the Shareholders in both Cells, and will seek to generate such distributions later in the year if this can be sensibly achieved," Better Capital said.
Better Capital shares were Monday quoted down 0.02% at 115.48 pence per share.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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