(Alliance News) - Electra Private Equity PLC on Wednesday said its next asset value declined in its most recent financial year after a sharp drop in valuation for its three largest investments.
The private equity investor's NAV per share fell to 353.4 pence as at September 30 from 548.4p the year before.
Chair Neil Johnson explained that: "The emergence of the pandemic and the resultant impact on equity market values has had the effect of reducing the combined valuation of our three larger investments, TGI Fridays, Hotter Shoes and Sentinel Performance Solutions, by GBP58.4 million, or 31%, from their valuations last September. Both Fridays and Hotter utilised the first period of lockdown to successfully restructure and have emerged as stronger and more agile businesses."
However, Johnson noted: "With significant improvements now implemented, a return to 2019 levels of market activity should provide an opportunity for combined value realisation in excess of pre Covid-19 valuation levels."
Electra still intends to complete realisations of its portfolio companies in 2021.
In November, the company confirmed it was in talks with investment bank Stifel Nicolaus Europe to realise its investment in online retailer Hotter Shoes. This disposal was not specifically mentioned in the annual report.
No ordinary dividend was proposed, with Electra planning to distribute asset realisation proceeds in 2021, the timing of which depends on realisation processes.
Shares in Electra were up 0.9% at 268.42 pence in London on Wednesday.
By Anna Farley; annafarley@alliancenews.com
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