Electra Private Equity Asset Value Falls After Hefty Special Dividend

LONDON (Alliance News) - Electra Private Equity PLC said Thursday its asset value fell sharply after the payment of a hefty special dividend and as poor weather in March impacted its portfolio firms, as it looks a potential sale to unlock further value.

For the six months ended March, net asset value per share fell to 1,109.27 pence from 1,980.96p six months earlier. Shares in Electra were 9.8% higher at 910.00 pence on Thursday.

This was after its net asset value dropped to GBP425 million from GBP758 million prior. Adjusted for the payment of a 914p per share special dividend in December the NAV rose 3.9%. Electra also announced another special dividend of 25p per share.

NAV was impacted by between GBP15 million and GBP20 million due to "inclement" weather in March. This hurt its portfolio companies which include casual dining firm TGI Fridays and photo printing company Photobox Group.

"Since the internalisation of management in 2017 we have increased our focus on optimising value for shareholders," Electra Chairman Neil Johnson said. "In the last six months we have completed an in-depth review of the companies in our corporate portfolio with their management teams and we are confident that each of the controlled investments now has a deliverable strategy to grow value. We have invested to remove impediments to delivery and are confident in the ability of these investments to create value."

"We have further reduced our non-corporate portfolio and simplified our corporate structure, reducing costs and resolving legacy issues," Johnson added. "The time is right to commence the final stage of our strategic review which will consider all options in order to optimise shareholder value.''

Electra said it was considering further divestments of its holdings or the sales of the company as a whole.