(Alliance News) - Electra Private Equity PLC on Tuesday said it is sticking with its plan to separate its hospitality brands after exploring other options, and plans to rename the slimmed-down company Unbound Group PLC.
Shares were up 1.7% to 594.90 pence in London on Tuesday morning.
The London-based investment trust first announced in June that it would spin off its restaurant brands TGI Fridays, which operates across the UK, and 63rd+1st, which has one location in Cobham, Surrey. The new company will be called Hostmore PLC, and shares will be given to Electra shareholders.
"Preparations for the demerger of Hostmore are proceeding well and further announcements will follow shortly," Electra said. In June, it said Hostmore would demerge and list on the main market of the London Stock Exchange "late in the third quarter".
Electra will then have one remaining business, Hotter Shoes, a retailer targeting over 55s. The company will switch its listing to the secondary AIM market and rename itself Unbound Group, subject to shareholder approval. Unbound plans to offer a range of lifestyle and wellbeing products and services beyond shoes, starting in the first half of 2022.
It's the end of the Electra name, which the company has had since it first listed on the London Stock Exchange in 1976 as Electra Investment Trust.
Hotter Shoes saw 25% year-on-year in the first half of the financial year ending January 2022, Electra said. Its gross margin increased to 63% from 53%.
As part of the restructuring, Dan Lampard has been appointed chief financial officer of Hotter Shoes, effective August 30.
Electra Chair Neil Johnson said: "It is an absolute priority for the Electra board that, having already successfully delivered significant value for shareholders in our realisation strategy, the value realised for our final two investments should also exceed expectations.
"Whilst we can't determine the value that the market will ascribe to Hostmore and Unbound, what we can say is that we are delighted to be planning for both companies to embark on their separate journeys as independent listed companies with the management, strategy and financial position to deliver real value growth in both the short and longer terms."
By Ivan Edwards; ivanedwards@alliancenews.com
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