15 Apr 2021 07:00
Electra Private Equity PLC
Disposal of Sentinel Performance Solutions Group Ltd
and Portfolio Trading Update
Electra Private Equity PLC ('Electra') is pleased to announce the disposal of Sentinel Performance Solutions Group Ltd, a leading UK manufacturer of products to improve the performance of heating and closed water systems, to Aalberts N.V., ('Aalberts') a global industrial technology group headquartered in Utrecht, the Netherlands and listed on the Amsterdam Stock Exchange (www.aalberts.com).
Electra is also providing an update on its other larger portfolio companies, Fridays and Hotter Shoes, as it continues to work towards realisation of its remaining portfolio companies in 2021.
A further update will be provided on 21st May with publication of Electra's Interim Results for the period to 31st March 2021.
Sentinel Performance Solutions Group Limited ('Sentinel')
Following an initial investment in Sentinel in 2011, Electra gained control of the business for a nominal sum in July 2019. Following investment of £1.5m, management changes and the implementation of a successful turnaround and development plan, Electra is pleased to announce completion of a sale to Aalberts.
Electra has received proceeds of £22.2m (58.1 pence per share) which compares to the carrying value of £10.9m (28.5 pence per share) as at 30th September 2020.
Electra intends retaining the cash received pending further asset realisations and confirmation of future distributions to shareholders in due course.
Electra was advised by Clearwater International (on corporate finance advisory services) and international law firm DWF Law LLP (on legal advisory services) for the transaction.
TGI Fridays ('Fridays')
Fridays commenced outside dining at 32 of its 87 sites on 12th April on relaxation of Covid-19 restrictions. This represents less than 10% of total internal / external capacity and builds on 'click & collect' and delivery sales now operating from 27 sites.
All existing sites will open for 'dine-in' immediately on relaxation of Covid-19 restrictions with current expectations being:
· Current: 1 site (Channel Islands)
· 26th April: additional 8 sites - subject to possible tiering: (Scotland)
· 17th May: additional 77 sites - England & Wales, including new Fridays Lincoln
· 20th May: additional 1 site: New '63rd + 1st' Cobham
As reported at Electra's AGM in February, the management team has been agile in responding to challenging trading conditions and optimising opportunities, leaving the business well positioned to emerge strongly from lockdown and with a strong pipeline of high quality additional sites for Fridays and 63rd + 1st targeted to open throughout 2021 and beyond.
Hotter Shoes
Following the implementation of its new business model focused on direct-to-consumer channels in the UK and US in October 2020, Hotter has made further excellent progress in the first quarter of 2021.
In the 3 months to end March overall sales were up 6% YOY on a LFL basis with direct channels up 34% YOY and more than compensating for the Covid-related closure of Hotter's 17 stores throughout the quarter.
Reported EBITDA for the quarter was up £0.9m on the same period in 2020.
Chairman of Electra, Neil Johnson, commented:
"As we approach the final stages of our realisation strategy, we are pleased with the ongoing progress of Fridays and Hotter Shoes, both of which have made significant improvements to their businesses in the last 12 months. We are delighted that we have successfully completed the disposal of Sentinel on-time and to plan, despite the challenges of the last year."
For further information: Gavin Manson, Chief Financial and Operating Officer, Electra Private Equity PLC 020 3874 8300
About Electra Private Equity PLC:
Electra is a private equity investment trust which has been listed on the London Stock Exchange since 1976. Electra's investment objective is to follow a realisation strategy, which aims to crystallise value for shareholders, through balancing the timing of returning cash to shareholders with maximisation of value. The Company will not make any new investments but will continue to support its existing investments to the extent required in order to optimise returns. Since 1st October 2016, Electra has distributed over £2 billion to shareholders through ordinary dividends, special dividends and share buybacks. Electra's key investments include TGI Fridays, Hotter Shoes and Sentinel Performance Solutions. As at 30th September 2020, NAV per share was 353.4p.