ELTA.L Regulatory News (ELTA)

EMBARGOED UNTIL 07:00 AM, MONDAY 26 OCTOBER 2015

ELECTRA PRIVATE EQUITY PLC

Audited Results for the Full Year ended 30 September 2015

The information contained in this announcement is restricted and is not for release, publication or distribution, directly or indirectly, nor does it constitute an offer of securities for sale, in the United States, Canada, Japan, Australia or New Zealand. References in this announcement to Electra Private Equity PLC and its subsidiaries have been abbreviated to 'Electra' or the

'Company'. References to Electra Partners LLP have been abbreviated to 'Electra Partners' or 'the Manager'.

Financial Highlights for the year to 30 September 2015

· Diluted NAV per share of 3,914p equating to a total return of 25%

· Final dividend of 78p per share announced, taking the total dividend for the year to 116p (based on the number of shares that will be in issue following the mandatory conversion of 5% Subordinated Convertible Bonds) or 3% of net asset value equivalent to a dividend yield of 3.6%

· Diluted NAV per share total return of 244% over ten years equivalent to a ten-year annualised return of 13%, at the upper end of the long-term target of 10-15% per annum

· Share price total return of 25% for the year and 210% over ten years

· Investment portfolio of £1,630 million equivalent to 108% of net assets

· £78 million of net liquid resources

Portfolio Highlights for the year to 30 September 2015

· £188 million invested

· £259 million realised

· £429 million total portfolio return, 34% on the opening portfolio

· Largest individual gains: AXIO Data Group (£112 million), The Original Bowling Company(£53 million), Elian (£44 million), Nuaire (£34 million), Park Resorts (£31 million) and Audiotonix (£30 million)

Subsequent to 30 September 2015

· Committed to invest a further £89 million in PhotoBox

· Disposal by AXIO Data Group of MIMS, net proceeds to Electra of £95 million; disposal of Electra's interest in Zensar Technologies for £82 million

· General Meeting to take place on 5 November 2015 to consider resolutions to appoint Edward Bramson and Ian Brindle to the Board of Electra. The Board of Directors unanimously recommends that all shareholders VOTE AGAINST BOTH resolutions

Commenting on the results, Roger Yates, Chairman of Electra Private Equity, said:

"Electra's performance continues to be extremely strong, with net asset value increasing by over £470 million in the two years to 30 September 2015, driven by excellent performance in the investment portfolio and impressive uplifts from realisations.

"We are also pleased to be announcing a final dividend for the year, taking total dividends announced in the year to 116p per share.

"The Board believes that Electra's investment approach has served shareholders extremely well over the years, producing consistent returns in the targeted range of 10-15%. The current portfolio is already delivering further strong growth, driven by our unique model, and we are very excited by the opportunities that lie ahead."

Commenting on Electra's position, Hugh Mumford, Managing Partner of Electra Partners, said:

"This has been another year of strong performance with a total NAV return of 25%, and a 10-year annualised net return on equity of 13%.

"We have continued to be busy with new investment, investing £188 million of Electra's capital as well as a further £125 million of portfolio companies' capital in ten bolt-on acquisitions.

"Investment performance again reflects our approach of buying attractive assets well and then accelerating their development by applying our proven active ownership model.

"Electra's portfolio offers considerable potential as the growth strategies we have in place at each portfolio company continue to take effect."

For further information:

For Roger Yates & Hugh Mumford:

Andrew Honnor or Matthieu Roussellier, Greenbrook Communications 020 7952 2000

Andrew Kenny or Nicholas Board, Electra Partners LLP 020 7306 3902

Performance Summary

Unless otherwise stated all information is at 30 September 2015 and is audited.

At 30 September 2015 the net asset value ("NAV") per share was 3,914p (diluted) and 4,168p (basic). At 20 October 2015 the unaudited NAV per share was 3,905p (diluted) and 4,158p (basic).

Performance (Total Return):

Performance calculated on a total return basis with dividends reinvested.

* The above index, prepared by Morningstar UK Limited, reflects the performance of 20 private equity vehicles, excluding Electra, listed on the London Stock Exchange.

NAV per share (diluted) vs. Share price vs. FTSE All-Share (Total Return)

Note: 30 September 2005 equals 100.

Historic NAV, Share price and Return on Equity

* Interim dividend.

Please note:

In 1999 Electra was placed in a realisation phase and was not authorised to make new investments. Between 1999 and 2006 Electra returned a total of £1.2 billion to shareholders through share buybacks and tender offers. Electra returned to full investment in October 2006.

Diluted and Basic NAV

During the year to 30 September 2015, 11,165 Convertible Bonds ("Bonds") were converted into 547,187 ordinary shares in the Company. Prior to this a total of 3,466 Bonds had been converted into 169,064 ordinary shares and, accordingly, the diluted NAV per share assumes the issue at 30 September 2015 of a further 4,215,753 ordinary shares on the basis of the conversion terms of the Bonds.

Calculation of NAV

At 30 September 2015

The calculation of the audited diluted NAV per share at 30 September 2015 has been affected by the issue of the Bonds. Electra is required to prepare accounts and report in accordance with the Companies Act 2006 and International Financial Reporting Standards (IFRS) as adopted by the European Union. Under IFRS, the Bonds are a compound financial instrument which contains both a liability and an equity component. Of the £100 million raised, £23 million of the Bonds was accounted for as an equity instrument with the balance accounted for as debt. Further details of the accounting treatment of the Bonds are set out in Note 18 of the Notes to the Financial Statements.

At 20 October 2015

The unaudited diluted NAV per share at 20 October 2015 was calculated on the basis of the NAV at30 September 2015 adjusted to reflect purchases and sales of investments, currency movements and bid values on that day in respect of listed investments.

Return on Equity

This is the total return divided by opening shareholder funds. Electra's ROE has been calculated by taking the percentage change in diluted NAV per share and adding back dividends paid per share. The annualised return on equity for the 10 years ended 30 September 2015 was 13%.

The Full Year Report for the year ended 30 September 2015 will be available on the Company's website www.electraequity.com. Neither the contents of this website nor the contents of any website accessible from hyperlinks on this website (or any other website) is incorporated into, or forms part of this announcement.

About Electra Private Equity PLC

Electra Private Equity PLC ("Electra" or the "Company") is a private equity investment trust which has been listed on the London Stock Exchange since 1976. As at 30 September 2015 its net assets were£1.5 billion or 3,914p per share fully-diluted.

Electra's business and affairs are managed on an exclusive and fully discretionary basis by Electra Partners LLP, an independent private equity fund manager with over 25 years' experience in the mid-market and a superior performance record. Electra is overseen by a board of independent non-executive Directors.

Electra's objective is to achieve a return on equity of between 10% and 15% per year over the long term by investing in a portfolio of private equity assets.

Performance is in line with this objective: for the 10 years to 30 September 2015 Electra's return on equity was 13% per year. Electra's performance has been consistently superior to that of the Morningstar Private Equity Index and the FTSE All-Share Index.

Private equity benefits from:

· an active approach based on a high level of engagement between the fund manager and the management teams of investee companies both before and after an investment is made;

· the alignment of interests between managers and investors through economic incentives; and

· an ownership framework which facilitates long-term decision-making.

Electra offers shareholders differentiated, direct access to private equity through a flexible listed vehicle.

Chairman's Statement

"Electra's performance continues to be extremely strong, with net asset value increasing by over £470 million in the two years to 30 September 2015, driven by excellent performance in the investment portfolio and impressive uplifts from realisations.

"We are also pleased to be announcing a final dividend for the year, taking total dividends announced in the year to 116p per share.

"The Board believes that Electra's investment approach has served shareholders extremely well over the years, producing consistent returns in the targeted range of 10-15%. The current portfolio is already delivering further strong growth, driven by our unique model, and we are very excited by the opportunities that lie ahead."

Overview

I am pleased to report another set of excellent results for the year to 30 September 2015. The total return to shareholders of £311 million has been achieved against a backdrop of difficult market conditions and continued agitation from our largest shareholder. Much of this return arises out of portfolio realisations made either during the year or shortly after it. Within the retained portfolio we continue to see good profit growth and cash generation both of which augur well for the future.

During this year, the Board concluded its review of the Company's capital structure, distribution policy and management fees, the results of which were announced in February. The Board believes that these changes will deliver benefits for all shareholders and enhance future shareholder returns from the investment performance consistently delivered by Electra Partners.

Results

This has been a particularly successful year with a total NAV return to 30 September 2015 of 25%. Electra's total share price return over the same period was 25%, compared to a total return on the FTSE All-Share of -2%.

This year's excellent performance is a continuation of Electra's long-term track record. Over the 10 years to 30 September 2015, Electra's diluted net asset value per share total return was 244%. This compares to the Morningstar Private Equity Index's total NAV return of 35% over ten years. On this measure, Electra is the best performing London-listed private equity investment company.

Electra's share price also performed well over the same period, generating a total return of 210%, compared to the total return for the Morningstar Private Equity Share Price Index of 10% and for the FTSE All-Share of 72%, both over ten years.

For the 10 years to 30 September 2015, Electra's annualised net return on equity was 13%. Over the same period Electra's annualised share price return was 12%.

Investment Activity

Investment activity continues at a high level, with one new direct investment and many bolt-on acquisitions within the portfolio. The latter have in general offered more attractive pricing and better value than direct investment opportunities seen this year. The ten completed bolt-ons were financed partly by Electra and with a further £125 million from portfolio companies' own balance sheets.

During the period Electra announced the merger of Park Resorts, South Lakeland Parks and Southview and Manor Park with Parkdean Holidays to create a group with an enterprise value of £960 million and profits of more than £100 million. This is a transformational deal which will help to drive this business forward.

Competition for and pricing of private equity investments are at historically high levels. Against this backdrop, Electra Partners has been active in realising value from some of the more mature assets in the portfolio. Realisations during the year to 30 September 2015 were at a high level, with proceeds of £259 million received and a further £270 million expected to be received shortly after the year-end.

Long-term Strategy and Sherborne Investors

The long-term nature of private equity investment can be seen in terms of both the investment process and average periods for which investments are held. A new investment can take several years to originate and from a few weeks to a year to execute. During this time the Manager develops its relationship with the management team, builds its investment thesis and strategy, and performs extensive internal and third-party due diligence in order to fully understand both the target business and the market in which it operates. Once made, private equity investments are illiquid and take time to mature before they reach a point at which value can be realised.

The effectiveness of this approach is demonstrated by Electra's long-term performance. Continuing this proven approach requires stability so that both the Manager and the portfolio company management teams can focus on implementing their agreed business plans.

Sherborne Investors have now held their investment in Electra for nearly two years but have consistently refused, despite repeated requests, to explain how and why they wish to implement changes to the Company's proven model.

On many occasions they have promised that their strategic changes will deliver £1 billion of additional value, but without providing any detail. Accordingly, the Directors do not know how or over what period such additional value might be delivered. In the meantime, Electra's proven strategy continues to produce excellent returns - over the two years since September 2013, shortly before Sherborne Investors came onto Electra's share register, Electra has produced a net return of £473 million.

As an independent Board, we are open to constructive dialogue with all investors. We are always interested to hear good suggestions as to how Electra's performance could be improved. In the case of Sherborne Investors, we have engaged in much dialogue but been offered absolutely no insight into the plan they intend to pursue. We have seen no evidence that they have done any due diligence on the portfolio or are able to offer any insights into how the underlying portfolio might be improved. Their continued description of Electra as a "turnaround" and of their participation on the Board as being "active", implies that their plan will follow their normal short-term, cost-cutting strategy. This would be completely at odds with the proven, patient growth strategy currently employed by Electra. We can therefore only conclude that the presence on the Board of the nominees of Sherborne Investors would not only be incompatible with Electra's proven strategy but also be potentially destabilising, divisive and value destructive. Hence our opposition to the election of Sherborne's nominees to the Board.

Review of Capital Structure, Distribution Policy and Management Fees

Following the General Meeting in October 2014, and as a result of discussions with shareholders, the Board announced that it was to conduct a review of Electra's capital structure, distribution policy and fee arrangements with Electra Partners. The outcome of this review was announced in February this year. By way of summary the following key changes were agreed by the Board:

· The multi-currency revolving credit facility which was previously drawn to facilitate currency hedging has been repaid. The facility will be redrawn in the future as required to bridge liquidity requirements for new investment or to meet ongoing expenses. The Board is content under the present circumstances to accept the additional currency exposure that this debt repayment will bring. However, the Company's foreign currency exposure will be kept under review.

· The annual management fee, known as priority profit share, was previously set at 1.5% of gross assets, including cash. From 1 April 2015, no fee is being paid on cash and the management fee on Non-Core Listed and Primary Fund Investments has reduced to 1%. If the old arrangements had been in place, including the hedging policy, for the six months to 30 September 2015 the fee would have been £3 million higher than has been the case.

· Beyond the Convertible Bonds and the Zero Dividend Preference Shares already in issue, it is not currently intended to borrow on Electra's balance sheet other than through the use of the existing multi-currency facility on a revolving basis.

· For a number of years the Company had not paid dividends unless required to do so to maintain Investment Trust status and has not initiated any share buybacks since 2008. The Board has now implemented a distribution policy to return to shareholders a targeted 3% of NAV per annum by way of cash dividend or share buybacks. It is the intention of the Board that any shares bought back under this policy will be cancelled.

The Board believes the above changes are in the interests of all shareholders and will enhance future returns.

Balance Sheet

Net liquid resources at 30 September 2015, after allowing for the value of the ZDP Shares, which are repayable in August 2016, were £78 million. As mentioned above, it is anticipated that approximately £270 million will be received in respect of investments sold before or shortly after the end of the year to 30 September 2015. After taking into account the proposed final dividend and investments which are expected to complete in the near future, the resulting net liquid resources are anticipated to be approximately £170 million.

During the year the Company's multi-currency revolving credit facility was increased from £195 million to £275 million and the term was extended to December 2019. All terms were improved, in particular the margin and commitment fee.

5% Subordinated Convertible Bond

Subsequent to 30 September 2015, in accordance with the terms and conditions of the 5% Subordinated Convertible Bond, the Company became entitled to exercise its right to a Mandatory Conversion of all of the Bonds in issue into ordinary shares. Accordingly, the Board has resolved to exercise this right and proposes to issue the Mandatory Conversion Notice to Bond holders in November 2015.

Following the issue of the Mandatory Conversion Notice, the Bonds will convert into ordinary shares on 29 December 2015. Bond holders will receive further details about the Mandatory Conversion in the Mandatory Conversion Notice once posted.

Dividend

In line with the revised distribution policy described above, the Directors recommend the payment of a final dividend in respect of the year ended 30 September 2015 of 78p per ordinary share, equivalent to 2% of net asset value, which would make the total dividend paid for the year 116p per ordinary share (based on the number of shares that will be in issue following the mandatory conversion of 5% Subordinated Convertible Bonds) or 3% of net asset value. Subject to approval by shareholders at the Annual General Meeting to be held on 25 January 2016, the final dividend will be paid on 26 February 2016 to shareholders on the Register of Members at the close of business on 22 January 2016.

Outlook

This is another excellent set of results for Electra and a continuation of the Company's strong, long-term performance record. Electra's proven model continues to deliver excellent value for shareholders, with profit growth and cash generation within the portfolio suggesting that the prospects for the future are very promising.

Roger Yates

Chairman

23 October 2015

Strategic Report

The Strategic Report provides a review of the Company's business, strategy and performance during the year to 30 September 2015, and a description of the principal risks and uncertainties facing the Company. References to other sections of this Report and Accounts are provided where appropriate.

Business Model

Electra

Electra has been an approved Investment Trust since 1 October 2012 and will continue to be exempt from capital gains tax provided it continues to meet the eligibility conditions of Section 1158 of the Corporation Tax Act 2010 and of the ongoing requirements for approved companies in the Investment Trust (Approved Company) (Tax) Regulations 2011.

Electra's business and affairs are managed by an exclusive and fully discretionary Manager. Electra Partners LLP was appointed as the Manager in 2006 and manages the Company's assets and investments in accordance with guidelines determined by the Directors and as specified in limited partnership and in management and investment guideline agreements.

The Manager

Electra Partners is an independent private equity fund manager with over 25 years' experience in the mid-market. Electra Partners' team has delivered investment performance in the top quartile when compared with similar fund sizes, strategies and vintages. Electra Partners has successfully delivered consistently strong returns. For the ten years to 30 September 2015 Electra's annualised return on equity was 13%. Further information about Electra Partners is to be found in "The Manager" section on pages 14 to 17.

Fee Arrangements

Electra Partners receives a priority profit share of 1.5% per annum on the gross value of Electra's core investment portfolio (which accounted for 94% of the total investment portfolio at 30 September 2015) and a fee of 1% per annum on non-core listed and primary fund investments. No fee is paid on cash. The partners of Electra Partners participate in co-investment and carried interest schemes which are explained in more detail in Notes 22 and 23 of the Notes to the Financial Statements.

Alignment of Interests

The alignment of interests between investors and managers through economic incentives is a critical feature of the private equity model. It contributes to the outperformance of private equity compared to other asset classes.

When Electra invests in a buyout or co-investment, it is normal for the management team of the underlying company to make a meaningful investment in the equity of that company alongside Electra. This serves to align each portfolio company management team's interests with Electra's in making decisions relating to that company.

Equally, the partners of Electra Partners are obliged to invest pari passu in each investment which Electra makes. These individuals also benefit from carried interest schemes whereby they share in realised investment profits relating to certain investment pools, subject to a minimum annual return for Electra and after deducting the relevant part of the priority profit share paid to Electra Partners. These arrangements, which reward only realised returns and take into account the time value of money, ensure that Electra Partners is incentivised to construct a portfolio of attractive investments, to manage it effectively and to realise each investment at the optimum time.

These arrangements are described in more detail in Notes 22 and 23 of the Notes to the Financial Statements.

Objective and Strategy

Objective

Electra's objective is to achieve a rate of return on equity of between 10% and 15% per year over the long term by investing in a portfolio of private equity assets.

Strategy

Under the investment strategy approved by shareholders in October 2006, all of Electra's capital resources are available for investment in private equity, subject now to the Distribution Policy summarised on page 10 below. Electra actively manages its gearing and capital position in light of prevailing market conditions.

Electra's strategy, along with the performance of the Manager, is kept under active review by the Board.

Investment Strategy

Electra has one of the most flexible mandates in the private equity sector. This means that it invests across the full range of private equity opportunities, in any sector and across the capital structure.

This flexibility allows Electra Partners to tailor its investment strategy to suit changing market conditions, thereby deploying capital where it sees the best relative value for shareholders. Electra Partners focuses on the following types of investment: buyouts and co-investments, secondaries and debt.

Electra's structure means Electra can provide long-term capital to portfolio businesses. As it invests directly rather than through a fund structure, its investment horizons are not influenced by fund investment periods or fund-raising cycles. This means that it can support its investee companies with a long-term strategy and access to capital. Exits are sought only when returns can be maximised for shareholders.

Electra Partners manages Electra's business and affairs on an exclusive and fully discretionary basis. Further information on Electra Partners and its investment strategy can be found on pages 14 to 17.

Asset Management

Electra Partners employs a rigorous investment process which ensures disciplined investment selection and portfolio management. In constructing and managing Electra's investment portfolio, Electra Partners takes into consideration not only the specific circumstances of each individual investment but also the profile of the portfolio as a whole.

The portfolio is managed to avoid concentration in any one sector or asset. At the time of investment, not more than 15% of Electra's total assets will be invested in any single investment. If Electra acquires a portfolio of assets in a single transaction, this limitation shall be applied individually to each of the underlying assets and not to the portfolio as a whole. The largest investment made by Electra during the year was TGI Fridays which represented 8% of its total assets at the time of investment.

Gearing and Capital Management

Electra has a policy to maintain total gearing below 40% of its total assets. At 30 September 2015 gearing stood at 8% of total assets.

An appropriate level of liquidity is maintained to ensure that Electra can participate in all investments arranged by Electra Partners, support its portfolio with follow-on investment as required and meet ongoing costs and commitments including any distributions to shareholders in line with the Distribution Policy. At 30 September 2015 net liquid resources, after allowing for the value of the ZDP Shares, which are repayable in August 2016, were £78 million.

The Company makes use of borrowings to provide investment capacity or to meet ongoing expenses. The capital position and levels of gearing are managed in light of prevailing economic conditions. Beyond the Convertible Bonds and the Zero Dividend Preference Shares already in issue, it is not currently intended to borrow on Electra's balance sheet other than through the use of the multi-currency credit facility on a revolving basis to facilitate new investment or meet ongoing expenses.

Further information on Electra's borrowings is provided in Note 16 on page 56.

Costs

Electra's ongoing charges ratio for the year to 30 September 2015 was 2.0% (2014: 2.3%).

Commitments

Unlike many other listed private equity companies, Electra for the most part invests directly in transactions arranged by Electra Partners rather than through a limited partnership fund which may be managed in the interests of a number of investors.

This means that Electra's interests are clearly and independently taken into account by Electra Partners, which can moderate or accelerate the pace of investment to suit Electra's net liquid resources. As a result, there is a low risk of Electra becoming over-committed.

At 30 September 2015 Electra had commitments outstanding to private equity funds of £52 million, of which £21 million was to funds still in their investment period.

Distribution Policy

For a number of years the Company did not pay dividends unless required to do so to maintain Investment Trust status. However, following a review of the distribution policy in February 2015 the Company implemented a revised distribution policy whereby Electra will return to shareholders a targeted 3% of NAV per annum, by way of cash dividend or share buybacks. Any shares bought back under this policy will be cancelled.

Discount Management

The Board actively considers discount control mechanisms, including dividends, share buybacks, share splits and improved or ad hoc disclosure.

In evaluating dividends, share buybacks or other returns of capital to shareholders, the Board takes into account the discount at which Electra's shares trade relative to their net asset value, the prospective returns available from investment opportunities as well as other competing calls on the Company's capital.

The Directors intend to continue to seek shareholder authority on an annual basis to enable them to purchase shares for cancellation when they believe it will be in the best interests of shareholders.

Shareholder Engagement

Electra places great importance on communication with its shareholders. Working together with Electra Partners, it endeavours to provide valuable information and insight on the Company and its performance to shareholders through Annual and Interim Reports, Quarterly Update Reports, web disclosure covering key shareholder documents and key portfolio information as well as recently holding an inaugural Capital Markets Event. Representatives of the Board hold meetings with principal shareholders to discuss relevant issues as they arise. Electra Partners maintains a regular and proactive dialogue with institutional shareholders and analysts; markets Electra's shares to potential shareholders; maintains relationships with journalists, trade bodies and other industry commentators; and is responsive to enquiries from any shareholder or potential shareholder. Electra Partners' investor relations team regularly reports to the Board on its activities.

Principal Risks and Risk Management

Risk Management

The appointment of Electra Partners as AIFM of the Company under the AIFMD means that it is responsible for risk management and the ongoing process of identifying, evaluating, monitoring and managing the risks facing the Company in accordance with the requirements of the AIFMD. The Board keeps Electra Partners' performance of these responsibilities under review as part of its overall responsibility for the Company's internal controls. The Board and Electra Partners consider that the risks detailed below are the Principal Risks facing the Company along with the risks detailed in Note 19 of the Notes to the Financial Statements.

The Board and the Manager can confirm that the Principal Risks of the Company, including those which would threaten its business model, future performance, solvency or liquidity, have been robustly assessed for the year ended 30 September 2015.

Macroeconomic Risks

The performance of the Company's investment portfolio is materially influenced by economic conditions. These may affect demand for products or services supplied by investee companies, foreign exchange rates, the price of commodities or other input costs, interest rates, debt and equity capital markets and the number of active trade and financial buyers. All of these factors have an impact on the Company's ability to realise its investment portfolio and the level of return realisable.

Gearing Risks

One of the principal risks of gearing is that it can cause both gains and losses in the asset value of the Company to be magnified. Another significant risk associated with gearing is the potentially severe impact on the Company of a breach of its banking covenants. Secondary risks relate to whether the cost of gearing is too high and whether the length of the gearing is appropriate. The Board and Electra Partners regularly monitor the headroom available under banking covenants and review the impact of the various forms of gearing and their cost to the Company.

The Company uses gearing in a number of forms, through its multi-currency revolving credit facility, its Subordinated Convertible Bonds and Zero Dividend Preference Shares.

Gearing is also used across the Company's investment portfolio. Each investment in which gearing is employed presents the same risks as are faced by Electra. Electra Partners actively monitors gearing across the investment portfolio, including working closely with management teams to ensure that the terms of any borrowing facilities are being observed and maintaining relationships with the lenders who make facilities available.

Foreign Currency Risks

A proportion of the Company's investment portfolio, comprising investments in the USA, Continental Europe and Asia, is denominated in currencies other than Sterling. Movements in foreign exchange rates may therefore affect the Company's net assets, as detailed in Note 19 of the Notes to the Financial Statements.

The foreign investments held are principally held in the USA, Continental Europe and Asia.

During the year, the Company held loans denominated in US Dollars and Euros, which partially offset foreign currency risk on foreign investments. Following a review of the capital structure in February 2015 it was announced that drawings under the multi-currency facility would be repaid in full in March 2015; this has removed the partial foreign currency hedge which that drawn debt had achieved.

The Board regularly reviews the Company's foreign exchange exposure together with the most cost-effective approach to hedging such exposure. The use of derivatives to hedge specific foreign exchange transactions may be considered where the timing and quantum of cash flows is known. The Board may also consider drawings in foreign currencies under the multi-currency revolving credit facility in the event of a material change in the Company's foreign exchange exposure. At 30 September 2015 the Company had no foreign exchange hedges in place.

Foreign exchange exposures also exist across the Company's investment portfolio as a result of the denomination of revenues, costs, assets and liabilities in different currencies. The Manager works with the Company's investment portfolio to make use of natural, financing and derivative hedges to mitigate these exposures.

Long-term Strategic Risks

The Company is subject to the risk that its long-term strategy and its level of performance fail to meet the expectations of its shareholders.

The Board keeps the Company's strategy and the performance of the Manager under regular review.

The Board regularly reviews the Objective and Investment Policy, which can be found on page 85, in light of prevailing investor sentiment to ensure the Company remains attractive to its shareholders.

Investment Risks

The Company operates in a highly competitive market. The supply of investment opportunities relative to that of investment capital, as well as the ability of Electra Partners to access investment opportunities, could have a significant effect on the Company's competitive position and on the sustainability of returns.

In order to source and execute good quality investments the Company is primarily dependent on Electra Partners having the ability to attract and retain executives with the requisite investment experience and whose compensation is in line with the Company's objectives.

The performance of the Company's portfolio is influenced by a number of factors. These include but are not limited to: (i) the quality of the initial investment decision; (ii) the quality of the management team of each underlying portfolio company as well as the ability of that team successfully to implement its business strategy; (iii) the success of Electra Partners in building an effective working relationship with each team in order to agree and implement value-creation strategies; and (iv) the macroeconomic risks described above. Any one of these factors could have an impact on the valuation of an investment and on the Company's ability to realise the investment in a profitable and timely manner.

Electra Partners has in place a rigorous investment process which ensures disciplined investment selection and portfolio management. This includes detailed due diligence, regular portfolio reviews and in many cases an active engagement with portfolio companies including by way of board representation.

The Board regularly reviews both the performance of Electra Partners and its incentive arrangements in order to ensure that both remain appropriate to the Company's objectives.

Portfolio Diversification Risk

The Company is subject to the risk that its portfolio may not be sufficiently diversified by being too heavily concentrated in any one sector or industry, particularly in relation to the UK economy where the majority of its investments are located.

Electra Partners attempts to mitigate this risk by portfolio diversification, including by making investments in accordance with the Objective and Investment Policy which requires that investments will be made across a broad range of sectors and industries and specifies that at the time of investment not more than 15% of the Company's investments will typically be invested in any single investment and if the Company acquires a portfolio of companies in a single transaction, this limitation shall be applied individually to each of the underlying companies purchased.

As part of its investment process, Electra Partners carries out detailed evaluation and due diligence of investment opportunities, including carefully considering whether the Company already has existing investments in that sector or industry and seeks to avoid making investments which inappropriately reduce the diversification of the portfolio of the Company.

Valuation Risk

The valuation of investments in accordance with IAS 39 and IPEV guidelines requires considerable judgement and is explained on pages 73 to 75.

Operational Risk

The Company's investment management, custody of assets and many administrative systems are provided or arranged by Electra Partners. The Company is thus exposed to a range of operational risks including those relating to human resources, legal and regulatory matters, information technology systems, business disruption or shortcomings in internal controls.

The Company's system of internal control mainly comprises the monitoring of the services provided by Electra Partners, including the operating controls established by them to ensure they meet the Company's business objectives. Further information is included in the Corporate Governance Statement on pages 97 to 101.

Viability Statement

The Directors have carefully assessed the Company's current position and prospects as described in the Chairman's Statement, the Investment Highlights and Portfolio Review, the Market Review and the Financial Review as well as the Principal Risks stated above and have formed a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the next three financial years.

The particular factors the Directors have considered in assessing the prospects of the Company and in selecting a suitable period in making this assessment are as follows:

· The Company invests primarily in long-term illiquid investments which are not publicly traded. When making a new investment the anticipated holding period can be five years or more.

· Gearing facilities are important for both the Company and its portfolio companies and are typically arranged with banks for periods of three to seven years.

· The Board reviews the liquidity of the Company and regularly considers commitments to private equity investments, long-term cash flow projections and the use of gearing.

· As detailed in the Corporate Governance Statement, the Valuations Committee oversees the valuation process carried out by Electra Partners. Typically, the medium-term prospects of each portfolio company form an important part of the valuation process.

· As also detailed in the Corporate Governance Statement, the Management Engagement Committee reviews the performance of the Manager.

Taking account of the above factors of anticipated investment holding periods, the term periods of gearing facilities of both the Company and its portfolio companies, the liquidity of the Company, the valuations and medium-term prospects of its portfolio companies and the activities and performance of the Manager, the Directors have formed a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the next three financial years.

In making this assessment, the Directors have assumed that the threats to the Company's solvency or liquidity incorporated in the Principal Risks will be managed or mitigated as outlined there.

Community, Social, Employee, Human Rights and Environmental Issues

In carrying out its activities and in its relationships with the community, the Company aims to conduct itself responsibly, ethically and fairly, including in relation to social and human rights issues.

The Company has no employees and the Board is composed entirely of non-executive Directors. As an investment trust, the Company has no direct impact on the environment. However the Company believes that high standards of corporate social responsibility ("CSR") make good business sense and have the potential to protect and enhance investment returns. Consequently, Electra Partners' investment process ensures that social, environmental and ethical issues are taken into account when these have a material impact on either investment risk or return.

Electra recognises and supports the view that social, environmental and ethical best practice should be encouraged.

Board Diversity

There are currently three female and three male Directors on the Board and there have been at least two female Directors on the Board since 2007.

The Company aims to have a balance of relevant skills, experience and background amongst the Directors on the Board and believes that all Board appointments should be made on merit and with due regard to the benefits of diversity, including gender. The Board's aim is to continue to maintain a diverse Board and, subject to appointing the best candidates available when current Directors retire, to have a proportion of at least one third female Board representation.

Apart from the main Board Directors there are thirteen male and one female non-executive Directors of the Company's consolidated subsidiaries, all of which are investment holding or finance vehicles.

Employee Related Disclosures

Electra is an investment trust which has no employees other than the non-executive Directors of its main Board and therefore has no disclosures to make in this regard.

Performance and Prospects

Performance

A number of Key Performance Indicators ("KPIs") are considered by the Board and Electra Partners in assessing the Company's success in achieving its objectives. These KPIs are:

· Return on equity over the long term

The Company's objective is to achieve a return on equity of between 10% and 15% per year over the long term. Over the 10 years to 30 September 2015 the Company's annualised diluted NAV per share return was 13%.

· The NAV per ordinary share total return

The Company's diluted net asset value per share total return was 25% over the twelve months and 244% over the ten years to 30 September 2015. These compared with 10% and 35% respectively by the Morningstar Private Equity Index.

· The share price total return

The Company's share price total return was 25% over the twelve months and 210% over the ten years to 30 September 2015. These compared with 13% and 10% respectively by the Morningstar Private Equity Index and -2% and 72% respectively by the FTSE All-Share Index.

Further details on the KPIs are shown on pages 1 to 2 of this Annual Report. Further information on the Company's performance is given in the Chairman's Statement, the Investment Highlights and Portfolio Review and the Financial Review on pages 5 to 7, 18 to 25, and 43 to 45 respectively.

Prospects

The Company's current position and prospects are described in the Chairman's Statement, the Investment Highlights and Portfolio Review, the Market Review and the Financial Review sections of this Annual Report, on pages 5 to 7, 18 to 26 and 43 to 45 respectively.

Roger Yates

Chairman

23 October 2015

The Manager

About Electra Partners

Electra Partners is an independent private equity fund manager with over 25 years' experience in the mid-market.

During this time, the Electra Partners team has invested in excess of £4.5 billion in more than 200 deals, with a consistent focus on mid-market companies. This track record of investing through numerous economic cycles gives Electra Partners both broad and deep experience across sectors, geographies and business models.

At 30 September 2015 Electra Partners had funds under management of over £1.8 billion including capital available for investment of nearly £350 million. Electra accounts for more than 95% of Electra Partners' funds under management; the balance is managed on behalf of US and European pension funds, asset managers and family offices.

Superior Performance

Over the last ten years Electra, which is managed on an exclusive and fully discretionary basis by Electra Partners, has seen a diluted NAV per share return of 244%. This is seven times the NAV per share return of the Morningstar Private Equity Index and is equivalent to a ten-year annualised return of 13%, at the upper end of Electra's target range of 10-15% over the long-term.

The Electra Partners team has delivered investment performance in the top quartile when compared with similar fund sizes, strategies and vintages.

The Electra Difference - Flexible Capital

Electra's investment strategy and structure is different from that of almost every other private equity fund. This has two key implications:

First, Electra Partners is able to invest across the full range of private equity opportunities: control and minority, equity and debt, direct and indirect. This means that it can tailor its investment strategy to suit changing market conditions and invest where many others cannot.

Second, Electra Partners is able to provide stable long-term capital. It doesn't face expiring investment periods or exit pressure driven by fund-raising cycles. This means that it can fully support investee companies with a long-term strategy and access to capital, and exit when returns are maximised for shareholders.

Investment Strategy

Throughout its history, Electra Partners has focused on investing for profits growth by backing the right management teams, comprising talented and experienced people with a credible strategy. Electra's flexible capital allows Electra Partners to invest across all forms of private equity situations, which it categorises into three groups:

1. Buyouts and Co-investments: direct investment in high-quality, well-managed businesses that have the potential for profits growth - through organic growth, operational improvement or acquisition. As lead investor, Electra Partners typically targets investments of £40 million to £150 million in UK-centric companies with an enterprise value of up to £300 million. Electra Partners also co-invests £30 million to £100 million in minority positions in UK or international companies alongside founders, other private equity firms, corporates or the public markets.

2. Secondaries: secondary purchases of existing investors' positions in either individual or portfolios of private equity funds, as well as acquisitions of portfolios of businesses, known as "secondary directs".

3. Debt: secondary purchases from existing lenders of individual or portfolios of either performing or stretched loans, where "stretched" refers to debt in good businesses with bad balance sheets where Electra Partners can take a role in the restructuring of the capital structure.

Electra Partners applies the disciplines of buyout investing to its appraisal and management of investments in all three of these groups.

Active Ownership

Electra Partners takes an active ownership approach to managing Electra's portfolio.

This means that before making a new investment, Electra Partners independently develops its own investment thesis and strategy, identifying the key drivers of investment return as part of its due diligence on each opportunity. It then develops an effective working relationship with a portfolio company's management team in order to implement this strategy, and engages more broadly with the portfolio company itself as well as the industry within which it operates. In particular Electra Partners contributes to the development of each portfolio company, and therefore to Electra's investment, in a range of areas including:

· Management: building the right management team by hiring experienced and ambitious people with the appropriate skills and talents, and by aligning their interests with Electra's through economic incentives;

· Business performance: on the basis of its own analysis and specialist external support, identifying opportunities to improve the company's effectiveness or efficiency;

· Strategy: agreeing long-term strategic objectives with the management team, ensuring the company has access to the resources required to deliver its strategy, measuring progress and taking appropriate action to correct any deviations from the agreed course;

· M&A: identifying, originating and executing add-on acquisition and merger opportunities using Electra Partners' extensive internal expertise and external networks; and managing the exit of each investment; and

· Financing: ensuring that the company has a financing structure appropriate to its objectives, for example where there is a short-term change programme underway which requires flexibility. Well-structured financing can also contribute to other objectives such as hedging a company's operational FX exposures.

Growth Themes

Electra Partners' investment strategy targets businesses driven by one or more macro growth themes, including:

Austerity / Value:

Consumers and businesses are increasingly focused on saving money through scale, technology or value propositions.

Example, Park Resorts: A UK operator of holiday parks. Demand is supported by the value proposition of static caravan parks to consumers looking for second homes or holidays.

Regulation:

Increasing regulation drives growth opportunities for compliance products / services and market consolidation.

Example, Allflex Corporation: A leading supplier of animal identification products. Growth is driven by increased regulation of the food chain to ensure food safety.

Demographic change:

Changes in population structure and profile create demand for specialist products and services.

Example, Hotter Shoes: The UK's largest shoe manufacturer. Demand for Hotter's cushioned and supportive footwear is growing due to population ageing.

International:

The internationalisation of business offers domestic or regional companies opportunities to enter new geographic markets using a range of strategies.

Example, Audiotonix: A leading supplier of professional audio equipment. Growth is based on an increasing number of live events in developed and developing markets.

Digital economy:

Processing and communication technology development creates opportunities for new products and services.

Example, AXIO Data Group: An international group of information services businesses. New software applications are creating further opportunities to sell or integrate information into customers' workflow.

Investment Model

Electra Partners' investment team is managed by Chief Investment Partner Alex Fortescue and reports to the Investment Advisory Committee and the Investment Commitments Committee. Electra Partners operates a rigorous and disciplined investment model, as described below:

Origination - creating deal flow:

Managing networks of intermediaries, industry experts and other introducers; thematic and sector analysis to identify interesting areas and businesses; developing investment theses and strategies as well as relationships with target company management teams and vendors.

· 372 investment opportunities considered during the year to 30 September 2015

· 80% of completed UK buyout deals in Electra's space seen in the year

Execution - making investments:

Evaluation and pricing of investment opportunities; in-house and third-party due diligence; raising debt from specialist capital markets; developing 100-day and business plans with management teams; winning deals; structuring, negotiation and closing.

· 1 direct unlisted and 2 secondary transactions completed in the year to 30 September 2015

· Over £788 million of new debt raised in the year

Portfolio Management - creating returns:

Putting in place the right management team to drive profits growth and cash generation; working closely with the team to develop strategy, set targets, measure and manage performance; making use of M&A and financing; and dealing with problems and opportunities.

· 10 bolt-on transactions announced in the year to 30 September 2015

· 16% year on year profits growth in direct unlisted portfolio*

Exit - realising the investment:

Identifying strategic / financial acquirers; timing the exit; creating buyer appetite and competitive tension; supplementing M&A with refinancings.

· £259 million of capital realised in the year to 30 September 2015

· Including £78 million of cash returned from repayment of loans in the year

Investment Process: pre-investment: weekly and monthly investment team deal flow meetings; weekly and ad hoc investment committee meetings to consider new investments.

Investment Process: post-investment: weekly investment committee review of trading data; for each investment, 100-day review, biannual valuation process and annual strategy review.

* Weighted average, excluding investments held for less than 12 months and property investments

Investment Team

Electra Partners' senior management team is one of the most experienced teams in the industry and has on average 25 years' experience in private equity. The investment team has an average of 20 years' experience in private equity and is supported by a team of specialists in compliance, finance, investor relations and marketing.

For more information about Electra Partners please visit www.electrapartners.com.

Investment Highlights

"This has been another year of strong performance with a total NAV return of 25%, and a 10-year annualised net return on equity of 13%.

"We have continued to be busy with new investment, investing £188 million of Electra's capital as well as a further £125 million of portfolio companies' capital in ten bolt-on acquisitions.

"Investment performance again reflects our approach of buying attractive assets well and then accelerating their development by applying our proven active ownership model.

"Electra's portfolio offers considerable potential as the growth strategies we have in place at each portfolio company continue to take effect."

Performance for the Year

During the year, Electra's share price total return was 25% compared to a total return of -2% for the FTSE All-Share Index and a 13% total return for the Morningstar Private Equity Index over the same period.

Electra's diluted net asset value ("NAV") per share was 3,914p at the end of the financial year having continued to grow strongly, delivering a total return of 25% compared to a 10% NAV per share total return for the Morningstar Private Equity Index.

The total return from the investment portfolio over the year amounted to £429 million or 34%. Further information regarding the effect of this strong investment performance on Electra's NAV is included in the Financial Review on pages 43 to 45.

Long-Term Performance

Over the last ten years, Electra's shares have delivered a total return of 210%. This compares favourably to the total return over the same period of both the FTSE All-Share (72%) and the Morningstar Private Equity Index (10%).

Over the last ten years, Electra's NAV per share total return has been 244%. This again compares favourably to the NAV per share total return over the same period for the Morningstar Private Equity Index of 35%.

Investment Activity

New investment for the year totalled £188 million, compared to £410 million in the previous year. The lower level of new investment reflects the high volume of portfolio company M&A which has offered more attractive value creation opportunities than many of the new standalone investments that have been considered. The direct unlisted portfolio accounted for £167 million of this investment, where activity included one new investment, in TGI Fridays, and follow-on investments in Park Resorts, PINE and Allflex Corporation.

Realisations from the portfolio during the year reached £259 million, compared to £352 million in the previous year. The largest individual realisations were £72 million from the sale of Nuaire and £53 million in respect of AXIO Data Group, following its sale of JOC Group and Breakbulk in December 2014. £54 million was realised from funds and secondaries and £15 million was realised by the sale of listed securities.

Outlook

The year to 30 September 2015 has been another period of strong investment performance. The foundations of this performance are to be found in our success in buying attractive assets well, often by taking advantage of complexity; in developing a clear strategy for each investment centred on organic growth, operational improvement and M&A; and, together with portfolio company management teams, in actively implementing these strategies with energy and focus. We expect further strong performance from the investment portfolio as a result of this approach.

New investment has been slower this year. Our customary discipline has led us to focus on the relative value offered by portfolio company add-ons compared to new standalone investments this year. The former often take just as much time to complete as the latter. Nonetheless we continue to see opportunities to deploy Electra's capital to add to its portfolio of attractive private equity assets.

Portfolio Overview

At 30 September 2015, Electra's investment portfolio was valued at £1,630 million. The investment portfolio consists of direct unlisted investments, secondaries, listed securities and funds. The top 10 and 20 investments account for 67% and 90% respectively of the investment portfolio.

Portfolio Breakdown

Direct Unlisted Investments (83% of portfolio)

Direct unlisted investments form the major part (83% compared to 78% at 30 September 2014 and 68% at 30 September 2013) of Electra's portfolio and consist of investments in 25 private companies with an aggregate value of £1,351 million. The 10 largest investments account for 79% of the direct unlisted investment portfolio at 30 September 2015.

Secondary Investments (6% of the portfolio)

Secondary investments consist of limited partnership interests in third party private equity funds purchased from investors exiting their positions prior to the end of the fund's life. As a result of their relative maturity, secondary investments typically produce faster cash returns than direct unlisted investments. At 30 September 2015 Electra held investments in six secondary portfolios with an aggregate value of £92 million.

Listed Investments (6% of portfolio)

Electra held six listed investments with an aggregate value of £101 million at 30 September 2015. The largest listed investment was Zensar Technologies with a value of £84 million. Zensar is included within the core investment portfolio, the remaining five investments with a value of £17 million are outside the core investment portfolio.

Core Investment Portfolio (94% of portfolio)

The core investment portfolio includes investments where Electra Partners have an active role in originating, evaluating, negotiating and/or managing the investment. The core investment portfolio accounts for 94% of the investment portfolio at 30 September 2015.

Fund Investments (5% of portfolio)

Fund investments consist of limited partnership interests in third party private equity funds where Electra made a primary commitment to that fund. New primary commitments to funds are no longer part of Electra's investment strategy. In total, Electra held investments in 13 funds comprising 59 underlying investments with an aggregate value of £86 million at 30 September 2015. This compares to 18 funds comprising 78 underlying investments with an aggregate value of £80 million at 30 September 2014.

Investment Portfolio - Sector Breakdown

Direct Unlisted Investments - Age Analysis

Direct Unlisted Investments - Valuation Basis

Investment Portfolio - Geographic Breakdown*

* Based on the location of the investee company's head office.

Portfolio Review

Portfolio Movement

Electra's investment portfolio increased from £1,272 million to £1,630 million during the twelve months to 30 September 2015. The increase of £358 million resulted from the acquisition of £188 million of new investments together with the portfolio return of £429 million, offset by realisations of £259 million.

New Investments

Total new investment for the period reached £188 million compared to £410 million in the previous year.

The most significant individual new investments were in respect of TGI Fridays, Park Resorts, PINE and Allflex Corporation.

In December 2014 Electra invested £99 million of equity in the buyout of TGI Fridays, the UK franchise of the eponymous American-styled restaurant chain. At the time of Electra's investment it operated from 66 (now 67) UK restaurants in a range of locations, including city centres, shopping centres and retail parks. The business offers a differentiated product, with a wide demographic appeal, in the growing casual dining market. The intention is to grow through new restaurant openings as well as improving yield management.

Electra originally invested in Park Resorts in 2012, buying the company's senior debt before taking an equity position in a refinancing led by Electra Partners in 2013 and subsequently making additional investments to acquire South Lakeland Parks and the Southview and Manor Park holiday parks. In April 2015 Electra invested a further £27 million, of which £2 million was then syndicated to a co-investor, in Park Resorts preference shares. This investment reflected the company's strong performance and prospects.

PINE is a Jersey Property Unit Trust created to build a freehold investment property portfolio focused on the UK educational sector. Electra invested a further £24 million in the year, including £20 million to support the acquisition of freehold investment properties relating to two special educational needs schools in Hampshire operated by the Priory Group. This was an important step in growing PINE's portfolio to broaden its exit options.

In January 2015 Allflex Corporation acquired SCR (Engineers) Ltd, the world's largest manufacturer of electronic milk meters and smart tags for monitoring cow fertility and health. SCR has a strong historical growth trend, driven by dairy farms' increasing need for productivity gains as well as growing concern over animal well-being. Its acquisition provides Allflex with an entry into a highly attractive adjacent sector and cements its position as the worldwide leader in farm livestock management products. Further growth is anticipated as the group makes use of its combined distribution, technology and product development resources. Electra made a further investment of $18 million (£11 million) in Allflex to support the acquisition.

Electra additionally invested a total of £14 million in two separate secondaries transactions. The larger of these was in respect of a portfolio of secondary funds, including several to which Electra already had an exposure through its investment in the EP1 Secondary Portfolio. The smaller transaction, amounting to some £5 million, was an interest in a Spanish infrastructure fund. Both of these investments were made at a significant discount to NAV.

A further £6 million was drawn down by private equity funds in which Electra is a limited partner. Commitments outstanding to private equity funds fell to £52 million compared to £77 million at September 2014.

Realisations

Total realisations for the year came to £259 million compared to £352 million in the previous year.

The most significant realisations during the year were in respect of Nuaire, AXIO Data Group, the EP1 Secondary Portfolio, Labco and Knight Square.

In August 2015 Electra sold its interest in ventilation systems manufacturer Nuaire in a transaction valued at £145 million. Electra received proceeds of £72 million, which represented a 90% uplift from the valuation at the beginning of the year. Electra originally invested in Nuaire in 2007 in order to participate in regulatory-driven growth in the ventilation market. Since then Nuaire has invested in new product development and successfully expanded its customer base, resulting in an 80% increase in revenues and a 120% increase in profits. Including the proceeds received from a refinancing in 2014, Electra realised a return of 3.8x original cost, an 18% IRR.

AXIO is a diverse and cash-generative group of individual information services companies. Electra Partners' strategy is first to transform each business by developing an appropriate long-term strategy and delivering through operational improvement and M&A, before selling each business individually. Two such sales, of JOC Group and Breakbulk, were completed in December 2014. Using the proceeds of these sales as well as operating cash flow, AXIO repaid £53 million to Electra.

€22 million (£15 million) of proceeds were received from the sale of Electra's investment in Labco, the clinical laboratory services group.

Electra Partners' strategy in respect of Knight Square, formerly known as Peverel, is to invest in service improvement and business development initiatives to stimulate growth. At the same time as implementing these initiatives, Knight Square has continued to be highly cash generative and has additionally made progress in realising surplus assets, resulting in its acquisition debt being substantially paid down. In October 2014 the group completed a refinancing that allowed it to make loan repayments of £14 million to Electra.

The secondaries portfolio produced realisations of £42 million in the year. The largest component was the EP1 Secondary Portfolio, in respect of which Electra received distributions totalling £35 million. This takes total distributions from the EP1 Secondary Portfolio to £69 million or 78% of cost and the total return on the investment to 1.5x cost. In addition Electra received distributions of £6 million in respect of Capitol Health, a US healthcare fund in which Electra purchased a secondary interest in 2005. Total distributions from this fund now stand at £15 million and the total return at 4.2x original cost.

Other realisation proceeds received by Electra included £12 million from private equity funds in which Electra held a limited partnership interest and £15 million from listed investments.

Performance

During the year to 30 September 2015 Electra's investment portfolio generated a total return of £429 million, an increase of 34% on the opening portfolio of £1,272 million.

The performance arose principally from the direct unlisted portfolio which generated a total return of £377 million, representing an increase of 38%. Excluding investments held for less than 12 months and property investments, earnings in portfolio companies grew by a weighted average of 16% year on year. Listed investments produced a return of £25 million, of which £21 million related to Zensar Technologies. The secondaries portfolio contributed £15 million to the total return, representing an increase of 14%. Private equity funds contributed £12 million, or 15% of the opening portfolio of £80 million.

The total return of £377 million from the direct unlisted portfolio included £129 million of realised gains with the balance being unrealised. Unrealised appreciation included £71 million of valuation growth resulting from profit increases, £38 million in respect of debt repayment by portfolio companies, £65 million as a result of changes in multiples used for valuation and £74 million from a revaluation of Electra's investments in Park Resorts, South Lakeland Parks and Southview and Manor Park, based on the recent transaction value.

Analysis of Gains (Direct Unlisted Portfolio)

At 30 September 2015 direct unlisted investments valued on an earnings basis reflected a weighted average EV:EBITDA ratio of 8.6x compared to 8.2x at 30 September 2014.

Direct Unlisted Investments - Valuation Changes

The most significant increases in valuation arose in respect of AXIO Data Group, The Original Bowling Company, Elian, Park Resorts and Audiotonix.

AXIO has now successfully sold three of its seven divisions, in line with Electra Partners' strategy for the group. The sales of JOC Group and Breakbulk in December 2014 and of MIMS in October 2015 were achieved at valuations in excess of their carrying value, contributing £87 million to Electra's return of £112 million in the year. Following receipt of proceeds from the sale of MIMS, AXIO will have returned 2x original cost to Electra having sold less than 50% of the profits it acquired in 2013. The remainder of the return in the year is the result of profits growth driven by a continued focus on revenue growth and cost efficiency as well as the integration of the recently acquired FlightView business into OAG. The total return on this investment at the end of September was 3.1x original cost.

The valuation of The Original Bowling Company ("TOBC") increased by £53 million as a result of profits growth and strong cash generation. Profits growth since the date of Electra's investment has come from newly opened and refurbished sites as well as improved yield management, particularly in the peak holiday and weekend periods. The company's financial performance since completion of the investment in September 2014 has been significantly ahead of expectations and it is now anticipated that profits in the current year will exceed those planned for the year to September 2017 in the Electra Partners investment case. The total return on this investment at the end of September was 2.0x original cost. Further growth is expected from the ongoing programme of site openings and refurbishments as well as the acquisition of Bowlplex, a similar operator of ten-pin bowling centres. This acquisition was announced in April 2015 and is subject to the satisfaction of certain undertakings given by TOBC to the Competition and Markets Authority.

Elian has performed ahead of expectations since its acquisition in June 2014. This is the result of initiatives implemented by Electra Partners and the company's management team in respect of new business development, product expansion and cost rationalisation. The resulting profit performance is ahead of expectations and, together with cash flow and a re-rating of the sector following strong interest from financial sponsors, resulted in the valuation of Electra's investment increasing by £44 million. This took the total return on Electra's investment at the end of September to 1.6x cost. In September Elian announced that it had agreed to acquire SFM Europe, a leading provider of corporate services with more than €1 trillion of assets under administration. The deal is subject to regulatory approvals.

In August 2015 Electra announced the proposed merger of its portfolio companies Park Resorts, South Lakeland Parks and Southview and Manor Park with Parkdean Holidays. This transaction followed a strong performance by all three companies in 2014, with a number of investment and operational improvement programmes driving profits growth of 28%. During the financial year Electra's aggregate investment in the three companies has increased by £74 million, producing a total return of 2.2x original cost. Future growth is expected from further investment as well as the sharing of best practice across the group after completion of the merger, which is expected before the end of the year.

Audiotonix, formerly known as the Console Group, was formed in July 2014 by the merger of Electra's existing investment in Allen & Heath with DiGiCo. Performance of the group has been ahead of plan since completion of the merger, as a result of an increased focus on sales and marketing, new product development effectiveness and stronger cost controls. This performance, together with cash flow and an increase in the multiple used to value the business, resulted in the valuation of Electra's investment increasing by £30 million. The total return on this investment at the end of September was 1.5x original cost.

The largest valuation decreases were in respect of Daler-Rowney and Hotter Shoes.

The valuation of Electra's investment in Daler-Rowney was reduced by £20 million. This reflected a number of influences which have reduced profitability, including the weakening of the Euro against Sterling, operational reorganisation following the integration of an acquisition made in 2013 and movements in product mix. A number of new appointments have been made to strengthen the management team, which is implementing a plan to improve performance.

Hotter Shoes has continued to drive revenue growth through new store openings and international expansion. However, investment in promotional activity, customer acquisition and operational improvements has caused profits to decline. This, together with a decline in the earnings multiples of comparable companies, led to an £11 million reduction in the valuation of Electra's investment.

The table below shows the valuation changes in respect of Electra's direct unlisted investments.

Hugh Mumford

Managing Partner

Electra Partners LLP

23 October 2015

Market Review

"We have seen deal volumes fall back again in 2015 and this in turn has pushed prices up further. Despite this we have been able to deploy £188 million in a new platform investment and in supporting a number of portfolio companies making value-additive acquisitions."

Summary

The UK market has experienced subdued deal volumes in the year, which in turn has resulted in average deal pricing increasing further.

Our focus remains on three areas: first, growth businesses playing to our key investment themes; second, situations where business or transaction complexity leads the market to undervalue stable, cash-generative businesses; and third, bolt-on acquisitions in which synergies and frequently limited competition allow us to deploy capital at favourable prices.

We have invested £99 million in one new control buyout, £14 million in two secondary transactions and partly financed ten portfolio company bolt-ons.

Conditions remain good for realisations and we have been able to realise £259 million during the year.

Market deal volumes

Deal volumes in the year to 30 September 2015 have been below the levels seen last year, with 25 private equity deals in the UK in the £75 million to £300 million range. This is behind both 2014 (36) and 2013 (34).

Quarterly UK deal volumes for the year ended 30 September (£75 million to £300 million)

Source: MergerMarket (completed deals when EV is provided)

Electra Partners continue to see the majority of deals in Electra's size range. Of the 25 private equity deals completed in the UK in the year to 30 September 2015, Electra Partners considered 20 of them (80%) and completed one (TGI Fridays).

Deal Pricing

Deal pricing has continued to increase throughout the year. The average entry multiple for UK buyouts valued at over £10 million was 10.9x EBITDA compared to 10.6x in the year to 30 September 2014 and 10.5x in the year to 30 September 2013 (source: CMBOR).

Our average entry multiple (for the two years to 30 September 2015), a weighted average of 7.9x EBITDA, remains significantly below that of the wider market reflecting the mix of deals in this period.

Our deal pipeline remains healthy. In October we committed to invest £89 million in the acquisition of PhotoBox, and we expect to be able to deploy a significant portion of Electra's firepower in the short to medium term. Patience and discipline as ever remain central to our investment philosophy.

Alex Fortescue

Chief Investment Partner

Electra Partners LLP

23 October 2015

New Investment and Realisations

TGI Fridays

Date of initial investment: December 2014

Type of deal: Buyout

Growth themes: n/a

Equity ownership: 78%

Cost: £99 million

Valuation: £113 million

Valuation: Based on multiple of earnings

Location: UK

Website: www.tgifridays.co.uk

Management: Karen Forrester, CEO; Murray Hennessy, Non-Executive Chairman

In December 2014 Electra invested £99 million of equity in the management buyout of the UK franchise of TGI Fridays ("TGIF") from its American parent. Additional financing for the transaction was provided from bank facilities arranged by Electra Partners.

TGIF, which has the exclusive UK rights to operate under the TGI Fridays brand, has 67 American-styled restaurants in a range of locations, including city centres, shopping centres and leisure parks. This is an established brand which works well across the country. It offers bold, distinctive American food as well as an innovative cocktail list, and provides a high-energy, fun environment with a wide demographic appeal. Key to the success of the customer experience is the company's focus on hiring and retaining enthusiastic front-of-house staff to offer a high level of service and in March 2015, TGIF topped the Sunday Times "Best Big Companies to Work For" list.

The company offers a differentiated product, with a wide demographic appeal, in the growing casual dining market. It demonstrates attractive financial characteristics, outperforming its peers across a range of key performance indicators and offering a high return on capital expenditure. The intention is to continue to grow through new restaurant openings, at an average rate of six new sites a year, as well as improving yield management through pricing and marketing initiatives.

Trading has been in line with expectations since completion of the investment in December. One new site, in Leicester, has been opened and a number of other site openings are imminent, including a flagship restaurant in London's Leicester Square.

Realisations

Labco

Date of initial investment: July 2008

Date of realisation: August 2015

Type of deal: Co-investment

Growth themes: Demographic change

Cost: £25 million

Proceeds: £16 million

Multiple: 0.6x

IRR: n/a

Location: International

Website: www.labco.eu

Management: Philippe Charrier, CEO; Andreas Gaddum, Chairman

In 2008 Electra invested €30 million in a minority equity position in Labco.

Labco is a leading pan-European clinical laboratory services group. The company is the market leader in France, Spain and Portugal and also occupies leading positions in Italy and Belgium. It operates over 200 laboratories in which its 500 senior chemists and doctors perform 150 million tests for 20 million patients each year.

The company operates in fragmented markets in which overall demand is growing due to demographic change, medical advances and an increased propensity to test preventatively. At the same time, regulatory changes and public spending pressure are expected to lead to market consolidation favouring larger players.

The strategy was to support Labco in its acquisition of smaller laboratory groups, with the company's scale and infrastructure subsequently being used to improve the acquired businesses. Numerous acquisitions were completed in Germany, Spain and Italy.

In August 2015, Electra sold its interest in Labco in a transaction with an enterprise value of €1.2 billion. Electra received proceeds of £15 million, equivalent to 0.6x cost. The conclusion of this investment reflected prolonged difficult conditions in European markets, none-the-less the exit was achieved at an attractive multiple of earnings.

Nuaire

Electra's investment in Nuaire

The Deal

In 2007, Electra invested £23 million in the £73 million buyout of Nuaire.

The Business

Nuaire, headquartered in Caerphilly in south Wales, is one of the UK's leading manufacturers of energy-efficient domestic and commercial ventilation systems. Its innovative products help customers to reduce their energy consumption and carbon emissions and are used in all types of commercial and residential buildings in the UK and around the world.

Investment rationale and strategy

The business had grown strongly in the years prior to Electra's investment, with compound sales and profits growth of 9% and 10% respectively.

The plan was for a continuation of this performance as a result of the company's differentiated positioning within an industry which was experiencing regulatory-driven growth.

This differentiation had been achieved by a focus on market-leading delivery and product quality; on speed to market with new product development; and on developing a specification-led sales approach which ensured that Nuaire's products were designed into building projects from an early stage.

Market growth was being driven by the increasing focus on energy efficiency. This had resulted in a tightening of the UK's building regulations in order to reduce energy wasted by heating commercial and residential buildings through better insulation, which in turn required improved ventilation to ensure indoor moisture control and air quality. A series of UK and EU legislative steps have supported ventilation market growth of 8% p.a. since 2006.

Business growth

During the period of Electra's ownership, Nuaire's profits grew at a compound rate of 10% per annum. This has resulted from the company successfully capitalising on fundamental, long-term growth drivers.

The challenge of constructing more energy-efficient, and so increasingly tightly-sealed, buildings while maintaining indoor air quality has resulted in ventilation systems becoming more complex, incorporating heat recovery technology and, sophisticated controls to reduce energy usage and system losses. It has also driven technology convergence, with an increasing number of HVAC functions being integrated into a single unit.

Nuaire has been at the forefront of these developments in the UK. Its technical expertise and track record of engineering innovation have enabled it to launch new products before its competitors, Its development skills have enabled it to innovate in areas such as heat recovery, acoustic performance and integrated controls.

Nuaire has also successfully grown internationally, Its core export markets are in the Middle East and Continental Europe, where building regulations have increasingly been standardised in line with the UK's.

Moreover this growth has been achieved against the backdrop of a construction industry downturn between 2008 and 2012. Nuaire's positioning enabled it to outperform the broader ventilation market and meant that it was well-placed for an acceleration in financial performance as the construction industry recovered after 2012:

Sales and EBITDA progression

Electra Partners' role

Electra Partners had originally identified an opportunity to participate in regulatory-driven growth in the ventilation market in 2006. Electra Partners identified Nuaire as a platform in which Electra could take an equity interest to benefit from the same growth theme.

In structuring the transaction, Electra Partners took a prudent approach to leverage which meant that the business was able to trade through the recession without becoming financially stressed. Electra Partners' flexible capital enabled it to adjust its time horizons as the construction cycle softened. This allowed it to develop a strategy to invest in product development and manufacturing capacity during the downturn to create growth momentum in the recovery.

Having created an attractive growth in profits, Electra Partners initiated and managed a sales process involving both private equity and strategic buyers. This resulted in the business being sold well, at the right time, with the benefits of competitive tension.

Outcome

In August 2015 Electra sold its interest in Nuaire to Polypipe Group plc, a London Stock Exchange-listed manufacturer of plastic piping systems, in a transaction with an enterprise value of £145 million. Electra's total return on the investment was 3.8x original cost, an 18% IRR.

Earnings growth created favourable conditions for an exit process and drove 45% of Electra's realised profit; strong cash generation contributed 43% with the remainder resulting from the increase in the multiple of earnings at which the company was sold:

Returns attribution, multiple of money

Key Investments

Direct Unlisted and Secondary Investments

Listed Investments

Fund Investments

The three largest funds were Gaja Capital, Motion Equity Partners and TCR Capital, which accounted for 45% of the total value.

Large Direct Unlisted Investments

AXIO Data Group

Date of initial investment: April 2013

Type of deal: Buyout

Growth themes: International, Digital economy

Equity ownership: 69%

Cost: £21 million

Valuation: £200 million

Valuation: Based on multiple of earnings

Multiple: 3.1x

Location: International

Website: www.axiogroup.net

Management: Henry Elkington, CEO; Hans Gieskes, Chairman

In 2013 Electra invested £91 million in debt and equity to finance the £148 million acquisition of UBM plc's Data Services division, since renamed AXIO Data Group.

AXIO originally comprised seven information businesses serving a range of sectors in over 25 countries: healthcare, intellectual property licensing, containerised trade and breakbulk services, aviation and forest products.

AXIO's businesses are defensive by virtue of their industry and geographic diversity. Its strong brands occupy leadership positions in niche markets and it is robust and cash-generative. The investment plan is to transform each business by developing the right long-term strategy and delivering through operational improvement and M&A, and then to realise multiple arbitrage by selling the portfolio's components to strategic acquirers.

During the year AXIO sold three of its seven businesses, namely JOC Group, Breakbulk and, most recently, MIMS. All three of these sales have been to strategic acquirers at valuation multiples more than twice Electra's entry multiple. Following these transactions, in which AXIO has sold businesses representing less than 50% of the profits it acquired in 2013, Electra's total cash proceeds from the investment will be £180 million, 2x original cost.

The group has continued to make progress developing growth and business improvement initiatives in its remaining businesses, which produced 9% profits growth on flat sales in 2014 and are showing a similar growth rate in 2015. In January 2015 AXIO announced that its aviation division, OAG, had acquired FlightView, Inc., the leading provider of real-time flight information for the aviation and travel industries. The acquisition has created a market leader in the growing global flight status and schedules data markets.

Park Resorts

Date of initial investment: January 2012

Type of deal: Debt

Growth themes: Austerity / Value, Demographic change

Equity ownership: 49%

Cost: £93 million

Valuation: £185 million

Valuation: Based on price of recent transaction

Multiple: 2.0x

Location: UK

Website: www.park-resorts.com

Management: David Boden, CEO; Alan Parker, CBE, Chairman

In 2012 Electra acquired senior debt in Park Resorts for £70 million at a significant discount to face value, making Electra the largest lender to the group.

Park Resorts is a UK operator of caravan holiday parks. The company has a strong management team and operates in a defensive, fragmented sector that has performed strongly throughout the recession as a result of its customer demographic and value proposition.

While the investment case produced attractive returns in the event of the debt position being held to maturity, the strategy was to take an equity position in Park Resorts through a restructuring of the company's debt and thereafter to grow the business both organically and through acquisition.

The restructuring of Park Resorts' debt was completed in August 2013, when funds managed or advised by Electra Partners became the majority shareholders, and a significant amount of capital was made available to improve park facilities. In 2015 Electra invested a further £25 million in preference shares issued by Park Resorts which were acquired from GI Partners at a discount to their face value.

In August 2015 Electra announced the proposed merger of its portfolio companies Park Resorts, South Lakeland Parks and Southview and Manor Park with Parkdean Holidays. This transaction followed a strong performance by all three companies in the year to December 2014, with a number of investment and operational improvement programmes driving aggregate revenue and profits growth of 8% and 28% respectively; strong performance has continued into the current financial year. Completion of the transaction is anticipated in November 2015.

Elian

Date of initial investment: June 2014

Type of deal: Buyout

Growth themes: International, Regulation

Equity ownership: 59%

Cost: £76 million

Valuation: £120 million

Valuation: Based on multiple of earnings

Multiple: 1.6x

Location: International

Website: www.elian.com

Management: Paul Willing, CEO; John Connolly, Chairman

In June 2014 Electra made an £81 million equity investment in the £180 million management buyout of Elian, formerly Ogier Fiduciary Services, from Ogier LLP.

Elian is a leading provider of offshore trust, fund and company administration services employing over 500 people. It is headquartered in Jersey and has operations in Cayman, Luxembourg, Guernsey, BVI, Bahrain, Hong Kong, Dublin, New York, Tokyo and London. The company serves 3,000 corporate, private and investment fund clients worldwide.

The business enjoys a high level of recurring revenue and strong cash generation. It has a blue chip client base and strong relationships with its regulators. Its fragmented, global market benefits from high barriers to entry as well as a number of growth drivers: demand is driven not only by legislation and regulation which favour larger players, but also by the increasing levels of international trade and investment which require corporate or fund structures to be established and administered.

Elian is continuing to grow by developing its international office network, expanding the team and through acquisition.

The company has seen particular success in a number of initiatives to strengthen new business development, expand the company's product range and improve cost efficiency. These have led to revenues and profits growing by 5% and 10% respectively in the year to January 2015, ahead of Electra Partners' investment case. Growth has continued into the current financial year. In September, Elian agreed to acquire SFM Europe, a leading provider of administration services to securitisation and structured finance vehicles. The acquisition remains subject to regulatory approvals.

The Original Bowling Company

Date of initial investment: September 2014

Type of deal: Buyout

Growth themes: n/a

Equity ownership: 85%

Cost: £50 million

Valuation: £103 million

Valuation: Based on multiple of earnings

Multiple: 2.0x

Location: UK

Website: www.amf-bowling.co.uk; www.hollywoodbowl.co.uk

Management: Steve Burns, CEO; Peter Boddy, Chairman

In September 2014 Electra made a £50 million equity investment in the £91 million management buyout of The Original Bowling Company ("TOBC") from private shareholders and CBPE Capital.

TOBC operates 44 ten-pin bowling centres under the Hollywood Bowl and AMF brands. TOBC offers high-quality bowling centres, predominantly located in leisure or retail parks, which offer a complete family entertainment experience with restaurants, licenced bars and state-of-the-art family games arcades.

Ten-pin bowling is a robust and growing part of the UK leisure sector, offering opportunities for further expansion through new openings. TOBC is the UK market leader and has grown ahead of the market thanks to its management team and history of investment-backed growth, as a result of which its estate is well positioned to make further advances.

TOBC's historical growth trend is expected to continue with close management of the existing estate in order to optimise yield and return on capital. The business plan also anticipates a number of site refurbishments as well as openings of new bowling centres.

The company's financial performance since completion of the investment in September 2014 has been significantly ahead of expectations and it is now anticipated that profits in the current year will exceed those planned for the year to September 2017 in the Electra Partners investment case. This performance is the result of improved yield management, particularly in the peak holiday and weekend periods, as well as the success of a number of site refurbishment projects. In April 2015 TOBC announced that it had agreed to acquire Bowlplex, which operates 16 ten-pin bowling centres; completion of the transaction is subject to the satisfaction of certain undertakings given by TOBC to the Competition and Markets Authority.

Audiotonix (formerly known as Console Group)

Date of initial investment: August 2014

Type of deal: Buyout

Growth themes: International

Equity ownership: 58%

Cost: £61 million

Valuation: £91 million

Valuation: Based on multiple of earnings

Multiple: 1.5x

Location: UK

Website: www.audiotonix.com

Management: James Gordon, CEO; Malcolm Miller, Chairman

In 2013 Electra invested £42 million in the acquisition of Allen & Heath. In March 2014 Electra invested a further £15 million in Allen & Heath for the acquisition of Calrec. In August 2014 Allen & Heath was merged with DiGiCo to create a new professional audio group valued at £143 million. Electra retained a 58% interest in the new group at a cost of £64 million.

Allen & Heath, Calrec and DiGiCo all design and manufacture audio mixing consoles used to manage live sound in settings ranging from concert venues or houses of worship to live television broadcasts. All three businesses have strong premium brands, well-regarded products and a history of product innovation. The group sells worldwide, with over 90% of revenues derived outside the UK. The global market for professional audio products is growing, fuelled by an increasing number of live events in both developed and developing markets.

The business is gaining market share by optimising new product development and sales and marketing activities across the brand portfolio. Further opportunities to consolidate the fragmented professional audio market through acquisition are also being considered.

In the year to March 2015, Audiotonix produced revenue growth of 8% reflecting the launch of new products and continued growth into new territories. Profits in the year were ahead of the Electra Partners investment case due to the realisation of cost synergies in excess of expectations since completion of the merger. Further growth is anticipated as a result of a number of important new product launches, such as the Allen & Heath dLive and the DiGiCo S21, as well as initiatives to share expertise and to develop cross-selling opportunities.

Allflex Corporation

Date of initial investment: July 2013

Type of deal: Co-investment

Growth themes: Regulation, International

Equity ownership: 15%

Cost: £68 million

Valuation: £73 million

Valuation: Based on multiple of earnings

Multiple: 1.1x

Location: International

Website: www.allflex-group.com

Management: Jacques Martin, CEO; Jean-Baptiste Wautier, Chairman

In 1998 Electra invested £23 million in the US$160 million buyout of Allflex. In 2013 Electra sold its investment in Allflex generating a return of 15x original cost and an IRR of 28%. Electra made a new equity investment of £57 million for a minority stake in Allflex alongside the private equity buyer. In January 2015 Electra made a further investment of £11 million to support the $250 million acquisition of SCR (Engineers) Ltd.

Allflex is the world's leading manufacturer and distributor of visual and electronic animal identification tags. Headquartered in the US and with operations in key global livestock markets, including Brazil, France and China, Allflex sells more than 200 million tags each year in over 60 countries worldwide. The acquisition of SCR, the world's largest manufacturer of electronic milk meters and smart tags for monitoring cow fertility and health, has brought a leadership position in an adjacent market which cements Allflex's position as the worldwide leader in animal traceability and farm livestock management products.

The company operates in attractive growth markets driven by greater regulation of the food chain to ensure food safety, as well as increasingly sophisticated farm management techniques. In addition to these demand growth dynamics, the opportunity to build on the group's combined distribution, technology and product development resources creates strong long-term growth prospects for Allflex.

The integration of SCR into Allflex is progressing well with significant focus on revenue and cost synergies. In June 2015 the group acquired SureFlap, a UK supplier of microchip-enabled pet doors and feeders, and continues to seek further add-on acquisition opportunities. In 2014 the group reported revenue and profits growth of 8% and 10% respectively; growth has been maintained in 2015 albeit at a lower rate as a result of the weakness in the China dairy market and strengthening of the US Dollar, Allflex's reporting currency.

Hotter Shoes

Date of initial investment: January 2014

Type of deal: Buyout

Growth themes: International, Demographic change

Equity ownership: 61%

Cost: £84 million

Valuation: £61 million

Valuation: Based on multiple of earnings

Multiple: 0.7x

Location: International

Website: www.hotter.com

Management: Peter Taylor, CEO; Alan White, Chairman

In January 2014 Electra invested £84 million in equity in the management buyout of Hotter Shoes ("Hotter") from Stewart Houlgrave, the company's founder, and Gresham LLP.

Established in 1959, Hotter is Britain's largest shoe manufacturer and sells over two million pairs of shoes each year in the UK and internationally in stores, in catalogues and online. The company, with a strong focus on comfort and service, serves customers whose age, health or lifestyle are such that they require more cushioned and supportive footwear.

Hotter is a growth business whose sales had more than doubled in the four years prior to the buyout, driven by demographic change, in particular population ageing, and international growth opportunities in the US and South Africa.

The company's growth strategy is built on a continued store opening programme in the UK, further growth in international markets, increasing online sales and on range development and extension to broaden the target market.

The company has continued to implement its growth plans, including opening UK stores, entering the German home shopping market and improving its online presence. Revenue growth, which was 8% for the year to January 2015, has continued into the current financial year, supported by particularly strong growth in the US. In April 2015 Hotter announced that it had won the Queen's Award for Enterprise in recognition of its success in international trade. Investment in promotional activity, customer acquisition and operational improvements have also continued. Some short term operational difficulties over the late summer and autumn in reconfiguring the warehouse facilities have hampered stock availability and driven excess warehouse costs, meaning that profits have declined slightly year-on-year.

South Lakeland Parks

Date of initial investment: September 2013

Type of deal: Buyout

Growth themes: Austerity / Value, Demographic change

Equity ownership: 71%

Cost: £19 million

Valuation: £61 million

Valuation: Based on price of recent transaction

Multiple: 3.0x

Location: UK

Website: www.southlakelandparks.co.uk

Management: David Boden, CEO; Alan Parker, Chairman

In September 2013 Electra invested £21 million in equity in the £47 million management buyout of South Lakeland Parks from White Ocean Leisure and its lenders. Of this investment, £2 million was subsequently syndicated to a co-investor.

South Lakeland owns and operates nine freehold holiday parks with 2,500 pitches in the English Lake District and Morecambe Bay area. Since acquisition these parks have been managed by Park Resorts.

The holiday park sector is defensive and fragmented and has performed strongly throughout the recession as a result of its customer demographic and value proposition. South Lakeland's estate of high-quality parks fits well with the existing Park Resorts portfolio.

At the time of acquisition, a number of opportunities were identified. First, to deliver operational improvements and profits growth in the South Lakeland portfolio through improved management of the estate. Second, to invest in the infrastructure and facilities of the holiday parks in order to further enhance their appeal to both caravan owners and holiday-makers. Third, to consider the further development of the existing South Lakeland estate.

In August 2015 Electra announced the proposed merger of its portfolio companies Park Resorts, South Lakeland Parks and Southview and Manor Park with Parkdean Holidays. This transaction followed a strong performance by all three companies in the year to December 2014, with a number of investment and operational improvement programmes driving aggregate revenue and profits growth of 8% and 28% respectively; strong performance has continued into the current financial year. Completion of the transaction is anticipated in November 2015.

PINE

Date of initial investment: June 2005

Type of deal: Co-investment

Growth themes: n/a

Equity ownership: 99%

Cost: £38 million

Valuation: £56 million

Valuation: Derived from property investment value

Multiple: 1.5x

Location: UK

Website: www.thepinefund.com

Management: Harry Hyman, CEO (Nexus Group)

Electra first invested in PINE in 2005 as a start-up to exploit an identified opportunity to create a new institutionally acceptable property asset class in conjunction with an experienced property specialist and a nursery school operator.

PINE initially comprised a sale and leaseback property investment portfolio of nursery schools let on index-linked leases to nursery school operators, as well as a nursery school operating business. In 2012 Treetops Nurseries was spun out of PINE as part of a refinancing and is now a standalone investment in Electra's portfolio, valued at £27 million at 30 September 2015.

The objective is to expand PINE's investment focus to the education sector generally, in order to broaden its appeal and range of exit options. During the year PINE acquired additional freehold properties, the largest of which was a property relating to two special educational needs schools, operated by Priory Group. PINE now owns a portfolio of over 30 properties leased to education providers with a value of more than £78 million.

CALA Group

Date of initial investment: March 2013

Type of deal: Co-investment

Growth themes: n/a

Equity ownership: 11%

Cost: £32 million

Valuation: £50 million

Valuation: Based on net assets

Multiple: 1.6x

Location: UK

Website: www.cala.co.uk/cala-group

Management: Alan Brown, CEO; Anthony Fry, Chairman

In 2013 Electra made an equity investment of £13 million alongside Patron Capital Partners and Legal & General in the £210 million acquisition of CALA Group from Lloyds Banking Group. During 2014 Electra increased its investment to £32 million to support land purchases and the acquisition of Banner Homes.

CALA Group is a national house builder which provides high quality homes in Scotland, the Midlands and South East England. Banner Homes' focus on premium homes in the South East represents a strong strategic fit for CALA and accelerates its strategy to double in size by 2017. Following the acquisition CALA is one of the ten largest housebuilders in the UK.

The UK currently experiences a significant undersupply of new houses. Loosening planning regulations, measures to improve mortgage availability and an improving macro-economic environment have created favourable conditions for an investment in the housebuilding sector.

The integration of Banner Homes into CALA is now complete; the acquisition contributed to strong financial performance, with revenues for the year to June 2015 exceeding £500 million. The group's return on capital has risen by four percentage points to 18.4% and operational improvements are expected to improve this further to in excess of 20%. The group now operates from around ninety sites across the UK and has a controlled land bank of over 14,000 plots with a potential GDV of almost £5.2 billion.

Southview and Manor Park

Date of initial investment: August 2014

Type of deal: Buyout

Growth themes: Austerity / Value, Demographic change

Equity ownership: 72%

Cost: £18 million

Valuation: £41 million

Valuation: Based on price of recent transaction

Multiple: 2.2x

Location: UK

Website: www.park-resorts.com

Management: David Boden, CEO; Alan Parker, Chairman

In August 2014 Electra made a £20 million equity investment in the £49 million acquisition of Southview and Manor Park holiday parks from Bluebird Partners and a European bank of this investment, £2 million was subsequently syndicated to a co-investor.

Southview and Manor Park ("SVMP") are large and established holiday parks - Southview in Skegness, Lincolnshire and Manor Park in Hunstanton, Norfolk. Together the parks comprise more than 2,000 pitches, a 9-hole golf course as well as the four-star Southview Park Hotel. Electra's existing portfolio company, Park Resorts, has managed both parks since 2010 and continues to do so.

This was the second bolt-on transaction for Park Resorts, the first being South Lakeland Parks which was completed in September 2013. Each of these investments benefits from: a resilient market supported by customer demographics and strong value propositions; high barriers to entry; a cash-generative business model; and growth potential. SVMP's large and well-invested sites offer growth potential through the development of new pitches.

In August 2015 Electra announced the proposed merger of its portfolio companies Park Resorts, South Lakeland Parks and Southview and Manor Park with Parkdean Holidays. This transaction followed a strong performance by all three companies in the year to December 2014, with a number of investment and operational improvement programmes driving aggregate revenue and profits growth of 8% and 28% respectively; strong performance has continued into the current financial year. Completion of the transaction is anticipated in November 2015.

Knight Square (formerly known as Peverel Group)

Date of initial investment: March 2012

Type of deal: Buyout

Growth themes: Austerity / Value, Demographic change

Equity ownership: 49%

Cost: £9 million

Valuation: £34 million

Valuation: Based on multiple of earnings

Multiple: 2.1x

Location: UK

Website: www.knightsquare.com,

Management: Paul Lester CBE, Chairman

In 2012 Electra made a £22 million equity investment in the £62 million acquisition of Peverel, the UK's leading property management services group, from its administrators. In October 2014 the company completed a refinancing that allowed it to make loan repayments of £14 million to Electra.

Peverel, now known as Knight Square, is one of the UK's leading property services businesses. Through its FirstPort business, the group provides general management services to almost 4,000 retirement and other residential developments across the UK. Through Appello, it also provides telecare and telehealth monitoring services that allow people to live independently in their own homes.

Knight Square is the leader in a robust market. At the time of investment, the intention was to invest in process and service improvement initiatives in order to enable the business to solidify this leadership position. With much of this work now complete, the focus is now on targeting opportunities to grow not only as a result of demographic change but also by taking advantage of the company's nationwide coverage and economies of scale.

Profits growth in the year to December 2014 was 9% on revenues which were flat. Revenue growth in the current financial year has strengthened as the negative effects on revenues of reduced property transaction volumes have been offset by new business development as well as Appello's acquisition of Call24, a call monitoring centre in the South West.

Premier Asset Management

Date of initial investment: September 2007

Type of deal: Buyout

Growth themes: Regulation

Equity ownership: 25%

Cost: £30 million

Valuation: £33 million

Valuation: Based on multiple of earnings

Multiple: 0.9x

Location: UK

Website: www.premierfunds.co.uk,

Management: Mike O'Shea, CEO; Mike Vogel, Chairman

In 2007 Electra made a £33 million minority equity and debt investment in the take-private of Premier. In 2009 Electra made a further £24 million equity investment to support the acquisition of two OEICs from Aberdeen Asset Management. In 2014 Electra sold a majority shareholding in Premier to funds under the management of Elcot Capital Management for a consideration comprising £20 million in cash and £26 million of preference shares while retaining an equity interest of 25%.

Premier is a retail asset manager, with the bulk of its assets under management ("AUM") in branded retail funds, of which the largest franchises are in multi-asset, UK equities, global equities and fixed income.

The retail investment market displays growth drivers including demographic and regulatory change from which Premier is well placed to benefit due to its strong product portfolio and investment performance. The intention remains to accelerate growth by investing in sales and marketing and by exploring other opportunities to extend the scope of the business.

Following a strong performance in the year to September 2014, with revenue and profits growth of 16% and 29% respectively, Premier has continued its success in growing assets. AUM now stand in excess of £4 billion, more than 30% ahead of the prior year, thanks to strong fund performance, investment in marketing and distribution and a favourable demand environment.

Innovia Group

Date of initial investment: April 2014

Type of deal: Co-investment

Growth themes: International

Equity ownership: 24%

Cost: £33 million

Valuation: £30 million

Valuation: Based on multiple of earnings

Multiple: 0.9x

Location: International

Website: www.innoviafilms.com, www.innoviasecurity.com

Management: Mark Robertshaw, CEO; Malcolm Fallen, Chairman

In April 2014 Electra made a €40 million (£33 million) equity investment in the €498 million buyout of Innovia Group from the Candover 2001 Fund.

The group is headquartered in Cumbria and operates five manufacturing sites worldwide. Innovia's Security division is the leading manufacturer of polymer banknote substrate for central banks. Polymer banknotes have numerous advantages over paper notes including security, durability and cleanliness, yet today account for only a small share of all banknotes in circulation. Innovia Security benefits from a strong intellectual property portfolio and a 20-year track record producing substrate for 36 central banks.

Innovia's Films division is a leading global producer of speciality high performance films primarily used in packaging applications for the food and tobacco industries. Innovia Films benefits from high barriers to entry and steadily growing demand. It occupies leading positions in mature niche markets and enjoys long-term customer relationships.

The group's strategy is to develop its banknote substrate business as central banks around the world increasingly choose to benefit from the advantages of polymer over paper banknotes, while at the same time continuing to grow its packaging films business through product innovation and capacity expansion.

In the year to December 2014 Innovia generated profits growth of 3% on revenues which were flat. Performance in the current year is at a similar level. In early 2014 Innovia Security announced a new contract with the Bank of England for the supply of polymer substrate for the next generation £5 and £10 notes. The investment in new manufacturing capacity in Cumbria to support this contract continues, with production scheduled to commence in 2016.

Treetops Nurseries

Date of initial investment: February 2012

Type of deal: Buyout

Growth themes: Demographic change

Equity ownership: 79%

Cost: £12 million

Valuation: £27 million

Valuation: Based on multiple of earnings

Multiple: 2.0x

Location: UK

Website: www.treetopsnurseries.co.uk

Management: Charles Eggleston, CEO; Stephen Booty, Chairman

In 2012 Treetops Nurseries was spun out of PINE as part of a refinancing and is now a standalone investment in Electra's portfolio. Electra invested a further £2 million in 2013 to finance the acquisition of Toybox (four freehold sites in Bedfordshire) and a further £5 million in 2014 to fund the acquisition of Happy Child (15 nurseries).

Headquartered in Derby, Treetops is the sixth-largest nursery school operator in the UK, operating 50 nurseries (30 freehold, 20 leasehold) predominantly in the Midlands and South East and with over 3,300 registered places. More than 90% of the company's nurseries are rated Good or Outstanding by OFSTED.

Treetops was separated from PINE in order to allow it to benefit from dedicated management focus and access to growth capital to effect a buy and build strategy. Treetops expects to grow organically, in particular through improved marketing and investment in the sites, designed to improve occupancy. Opportunities to grow through acquisition of other operators in the highly fragmented nursery market are also being actively pursued. The cash generative nature of the business model creates capacity to finance smaller acquisitions internally with additional funding available from Electra for more substantial targets.

Since 2012, the company has made a number of acquisitions which have more than doubled profitability and brought it greater scale in the attractive markets of London and the South East. Further M&A opportunities are under active consideration. Operational improvement and site enhancement programmes have been implemented in acquired sites. Financial performance in the year to September 2014 was strong, with sales and profits growth (including the impact of acquisitions) of 33% and 41% respectively; strong performance has continued into the current year.

Davies Group

Date of initial investment: September 2011

Type of deal: Buyout

Growth themes: Austerity / Value

Equity ownership: 57%

Cost: £39 million

Valuation: £23 million

Valuation: Based on multiple of earnings

Multiple: 0.6x

Location: UK

Website: www.davies-group.com

Management: Dan Saulter, CEO; Adrian Hill, Chairman

In 2011 Electra invested £36 million in equity in the £60 million management buyout of Davies Group from LDC. A further £3 million was invested in December 2013 to fund the acquisition of Garwyn.

Davies is a leading insurance claims service provider. It employs 580 people across the UK and Republic of Ireland and offers a full spectrum of validation and fulfilment services including claims management, loss adjusting, restoration and repair. Davies's focus is on servicing claims relating to residential property, commercial and specialist liability policies. The business handles over 120,000 claims each year and manages more than £600 million of indemnity spend.

The current focus of Davies is on the broker and MGA market and the development of selective additional business areas both organically and through M&A. The company's strategy is to invest in technology and other service improvement and extension initiatives in order to become a partner of choice for insurers increasingly outsourcing claims management.

Davies has continued to make good progress following the business transformation initiated in 2013. Revenue growth of 9% in the year to July 2015 reflected new business wins as well as the acquisitions of ALA, an Irish specialist loss adjuster, and MFS, a leading provider of claims handling services for insurers and fleet operators. The acquisition of MFS was financed by bank facilities. Completion of these acquisitions means that Davies is able to offer claims-related services across property, casualty and motor, providing the group with cross-selling opportunities. Profits were flat in the year to July 2015 as a result of ongoing investment in technology to enhance customer service and to streamline business processes in order to position the group to provide best-in-class services.

Daler-Rowney

Date of initial investment: March 2011

Type of deal: Buyout

Growth themes: International

Equity ownership: 41%

Cost: £20 million

Valuation: £12 million

Valuation: Based on multiple of earnings

Multiple: 0.6x

Location: International

Website: www.daler-rowney.co.uk

Management: Patrick Giraud, CEO; Chris Parratt, Chairman

In 2011 Electra made a £17 million equity investment in support of the buyout of Daler-Rowney from private shareholders. Electra invested a further £3 million in 2014 in order to provide additional liquidity.

Daler-Rowney is one of the largest suppliers of fine art materials in the world with a comprehensive product range including artists' paints, brushes, papers and canvases which meet the needs of artists ranging from beginners to professionals. The company manufactures its products in the UK and the Dominican Republic and sells in more than ninety countries worldwide.

The company occupies a leading position in a stable, niche market benefiting from high barriers to entry created by products, brands and supply chain complexity. The intention is to continue to invest in product development and in sales and marketing in order to grow market share, and at the same time to undertake further geographic expansion.

Daler-Rowney experienced a decline in profits in 2014 as a result of a number of factors, including the weakening of the Euro against Sterling, operational reorganisation following the integration of an acquisition made in 2013, and movements in product mix. Following a number of new appointments to strengthen the management team, a plan to improve performance is now being implemented. A variety of growth initiatives underway, including investment in manufacturing capacity as well as in developing new products and customer relationships, continue to offer opportunities for further value creation.

Promontoria

Date of initial investment: October 2007

Type of deal: Buyout

Growth themes: n/a

Equity ownership: 11%

Cost: £8 million

Valuation: £11 million

Valuation: Based on net assets

Multiple: 2.2x

Location: Germany

Website: n/a

Management: n/a as holding company

In 2002 Electra provided acquisition funding to a new company to allow it to undertake the sale and leaseback of certain German retail property assets. The company was itself acquired in 2007 by Promontoria, an unleveraged investment company, for which Electra received consideration in the form of ordinary shares and loan stock.

Today Promontoria owns 55 retail properties situated throughout Germany. Of these, 41 are leased to the German discount chain Woolworth, which underwent a financial restructuring in 2010. The business strategy is to continue to develop the portfolio and improve the tenant mix. Properties are being sold when attractive and deliverable offers are received.

The realisation of the portfolio has also continued and in the twelve months to September 2015 thirty-three stores were sold for a consideration of €89 million. This takes total proceeds from the fifty-four stores divested over the past six years to €273 million. These proceeds have been distributed to shareholders, with Electra's share being €29 million. Contracts have been exchanged in respect of the sale of nine further properties.

Large Listed Investment

Zensar Technologies

Date of initial investment: September 1997

Type of deal: Co-investment

Equity ownership: 23%

Cost: £4 million

Valuation: £84 million

Multiple: 19.3x

Location: International

Website: www.zensar.com

Management: Ganesh Natarajan, CEO; Harsh Goenka, Chairman

In 1997 Electra invested US$9 million in the equity of an unquoted subsidiary of Mumbai-listed parent, Zensar Technologies. In 2001 the listed parent closed down its operations and the unlisted subsidiary performed a reverse merger. This resulted in Electra owning shares in the listed entity.

Zensar is a provider of software development services to large corporates, offering both an onsite and offsite service. Onsite services consist of contracts, whereby Zensar provides software engineers to work on customers' premises (mainly in the US and UK) whereas for the offsite business the work is undertaken by Zensar's software professionals located in its software development centres in India.

As an early entrant to the software services market and having established strong customer relationships and a good reputation, Zensar was well positioned to be able to grow in the sector. The company has an acquisition strategy to add niche capabilities and to bulk up.

Today the company employs over 8,000 people at 20 locations around the globe. The company has a global reach operating in the US, Europe, Africa, Middle East, Singapore and Australia regions and has delivery centres in India (Pune, Hyderabad, Delhi and Bangalore), South Africa, the UK, Amsterdam and the USA (Westborough).

In October 2015 Electra sold its interest in Zensar for a consideration of £82 million. Together with £7 million of proceeds from dividends and sales of shares, this generated a total return of 19x original cost, an IRR of 18%.

Financial Review

"The Company's diluted NAV per share total return was 25% during the year as a result of a strong performance from the total portfolio which delivered gains of £429 million."

Analysis of Movement in Net Asset Value per share

The Consolidated Income Statement on page 46 of the Report shows the total return for the period and, together with the impact of Bond conversions and the interim dividend of 38p per ordinary share paid during the period, explains the movement in NAV for the year to 30 September 2015.

Performance from the investment portfolio contributed £10.65 per share, 34% of the opening NAV. Deducted from this, as shown below, were finance, operating costs and tax, which together totalled 64p per share; the priority profit share paid to Electra Partners for managing the portfolio amounted to 62p per share; and the charge for incentive schemes amounted to 167p per share. Bond conversions during the period increased NAV per share by 6p and the interim dividend paid reduced NAV per share by 38p. These net costs, together with the investment performance, resulted in an increase to net assets of £7.40 per share, a total return (adding back the dividend paid) of 25% for the year.

Incentive Schemes

The current incentive schemes operated by Electra (alternatively referred to as "carried interest") are based on three-year pools. Currently, there are three pools in relation to the three-year periods commencing 2006, 2009 and 2012. The carried interest schemes are described in more detail in Note 22 on pages 68 to 71.

The carried interest provision has increased from £83 million to £132 million in the year to September 2015. The movement in the provision comprises a £67 million provision for future carried interest in relation to the increase in value of the portfolio in the year and payments of £18 million in relation to the 2006 pool and pre-2006 incentive arrangements. Additionally, £17 million was paid in the year in relation to amounts payable in the previous year and shown in creditors which arose from realisations in the 2006 pool during the year to September 2014, as shown in the table below:

The increase of £67 million (equivalent to £1.67 per share) to the provision for incentives made during this period reflects the strong performance of the investment portfolio, which produced a total return of £429 million for the year. The provision represents approximately 16% of the increase in the portfolio value, which is less than the accrual rate on the post 2006-pools of 18% due to the lower percentage applied to investments such as Zensar Technologies. The majority (70%) of this increase relates to the 2012-pool and reflects the increase in valuation and realisations achieved in respect of AXIO Data Group, Elian, Audiotonix, The Original Bowling Company and EP1.

The majority of cash paid in the year related to the 2006 pool, most of which had been provided for in previous years. This pool commenced on 1 October 2006 and contains £436 million of direct investments made between six and nine years ago. This pool has a realised return of 1.7x cost and a total return of 1.8x cost. A brief summary of the pool from inception to date is shown below:

Over 80% of the provision carried forward relates to the 2009 and 2012 pools which represent investments made since 2009. Both of these pools require substantial realisations to occur before any carried interest payments are made to the participants. In aggregate, at 30 September 2015 more than £800 million would need to be realised across the two pools before the hurdle requirements are met.

Net Liquid Resources

The Consolidated Cash Flow Statement on page 51 analyses the movement in the Group's cash for the year. Cash has reduced by £51 million during the year. The larger components of cash inflows were sales of investments and investment income including liquidity funds which yielded nearly £390 million. The major constituents of the cash outflows were investments of £187 million, and the repayment of drawings of £153 million under the multi-currency bank facility. The repayment of the multi-currency bank facility in March followed the conclusion of the Board's strategic review and consequent change in currency hedging policy.

It is expected that approximately £270 million of cash proceeds relating to transactions previously announced will be received in the near term. Against this, Electra has the following commitments:

· payment of the final capital entitlement of 155.41p per ZDP share to the ZDP shareholders in August 2016 amounting to £73 million in aggregate;

· subject to shareholder approval at the Annual General Meeting in January 2016, payment of a final dividend of 78p* per ordinary share (£31 million), as recommended by the Directors; and

· financing of committed and other investments.

* based on the number of shares that will be in issue following the mandatory conversion of 5% Subordinated Convertible Bonds.

Accordingly, it is expected that free cash, after taking the above into account, will be approximately £170 million.

Finance Costs, Gearing and FX

Finance costs of 41p per share, or £17 million, in the year were made up as follows:

The coupon payable in respect of the bank facility is based on LIBOR plus a margin of 2.5%, which was equivalent to an average 3.7% during the period when the facility was drawn. As stated above, following the Board's strategic review, the bank facility was repaid in full at the end of March. Should the facility remain undrawn, commitment fees will continue to be paid at a cost of £2 million per annum.

The Convertible Bond pays a coupon of 5% per annum, amounting to £5 million in the year. A further amount was accrued in respect of the Convertible Bond to represent the cost of the embedded derivative of the conversion option. In total the accrual rate adopted is 9.9% adding an additional £2 million in the year.

Subsequent to 30 September 2015, in accordance with the terms and conditions of the 5% Subordinated Convertible Bond, the Company became entitled to exercise its right to a Mandatory Conversion of all of the outstanding Bonds into new ordinary shares. Accordingly, the Board has resolved to exercise this right and proposes to issue the Mandatory Conversion notice to Bond holders in November 2015, following which the outstanding Bonds will convert into ordinary shares on 29 December 2015

The Zero Dividend Preference Share ("ZDP") is accounted for by accruing at 6.5%, which is the yield to maturity based on its redemption value. The amount charged in this period was £5 million, which was charged to the capital column in the Consolidated Income Statement, reflecting the way in which this instrument will be eventually repaid. The ZDP will be repaid in August 2016 and is therefore disclosed as a short-term creditor.

The weighted average cost of debt for the period was 7.5%. This is greater than last year due to the repayment of the multi-currency facility, which has a lower cost than the remaining debt instruments.

The repayment of the multi-currency facility in March 2015 removed the natural hedge on Electra's currency exposure. Over the year Sterling has strengthened against the Euro and weakened against the US Dollar leading to an overall foreign exchange gain on the investment portfolio of £0.6 million for the year ended 30 September 2015. At 30 September 2015 the estimated foreign currency exposure, taking into account hedging within portfolio companies, was €235 million and $320 million. Of the US$ exposure $127 million related to Zensar which was sold shortly after the year end.

Steve Ozin

Partner

Electra Partners LLP

23 October 2015

Financial Statements

Consolidated Income Statement

The 'Total' columns of this statement represent the Group's Income Statement prepared in accordance with International Financial Reporting Standards adopted by the EU ("IFRS"). The supplementary Revenue and Capital columns are both prepared under guidance published by the Association of Investment Companies. This is further explained in the Basis of Accounting and Significant Accounting Policies in Note 25.

The amounts dealt with in the Consolidated Income Statement are all derived from continuing activities.

Consolidated Statement of Comprehensive Income

Consolidated Statement of Changes in Equity