(Alliance News) - Electra Private Equity PLC on Thursday reported a sharp decline in net assets as the investment company continues its two-year realisation process.
The trust declared a further special dividend of 31 pence on Thursday, so has elected not to declare an ordinary dividend for financial 2019. Electra paid special dividends of 365p and 54p at the end of 2018 and then in April 2019, respectively.
Shares in the trust were up 19% on Thursday morning in London at 342.33p each.
At September 30, Electra's NAV per share stood at 548.43p, compared to 892.40p at the same point last year - a 38% drop.
The investment trust's net assets also decreased 38%, falling to GBP210 million from GBP342 million.
"Our results demonstrate the progress made at Electra over the last year, reflected in a significant NAV uplift on retained assets, as we actively manage our remaining portfolio of investments," said Chair Neil Johnson.
Electra's portfolio was valued at GBP193 million at the end of year, down from GBP267 million the year before. The investment trust achieved GBP119 million in total realisations in financial 2019, with GBP96 million coming from Photobox and GBP21 million from Knight Square.
The majority's of Electra's remaining portfolio is made up of a GBP242 million investment in casual restaurant chain TGI Fridays, which represents 169.2p of Electra's NAV, and a GBP33 million holding in retailer Hotter Shoes, 86.2p of NAV.
Electra noted the valuation of the four largest controlled investments increased by 31% on the prior year to GBP186.6 million, comprising 88.9% of NAV.
Johnson continued: "We have made tangible progress in both of our two larger businesses, TGI Fridays and Hotter Shoes. At TGI the new management's focus both on improving customer experience and on operational excellence gives confidence that it is on the right track to further develop the business and deliver profitable growth. The changes at Hotter are now progressing, with improved trading, under a much-strengthened management team."
"I look, with confidence, to more progress from our key portfolio investments in 2020 and further delivery of our strategy," he added.
Chief Financial & Operating Officer Gavin Manson further added: "Whilst we have made progress in developing value from the low point of early 2019, we believe that further significant value can be achieved at portfolio level, which on successful realisation will provide a good return to our shareholders."
By Paul McGowan; paulmcgowan@alliancenews.com
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