ELTA.L Regulatory News (ELTA)

10 Jul 2009 07:30



Electra Private Equity Plc ("Electra") - Interim Management Statement

10 July 2009

This is an Interim Management Statement issued by Electra in accordance with the FSA's Disclosure and Transparency Rule 4.3. This statement relates to the three month period from 1 April 2009 to 30 June 2009.

Sir Brian Williamson, Electra's Chairman said:

"With manageable levels of commitments, a portfolio with strong defensive characteristics and modest levels of debt in the underlying companies Electra remains well positioned for the future.

Although new investment and realisations remained at low levels over the three months to 30 June 2009, there was an increase in the number of new investment opportunities considered by our Manager, Electra Partners".

1. Resources and Commitments

At 30 June 2009 Electra had cash, money market funds and floating rate notes of £274 million, a quoted portfolio valued at £83 million and had drawn down £187 million of borrowings under its multi-currency revolving credit facility. Commitments to third party funds, which may be drawn down over the next five years, amounted to £96 million at that date.

2. Unaudited Net Asset Value Per Share

The investment portfolio, which comprises direct investments and investments through third party private equity funds and which excludes net liquid resources, was valued at £470 million at 31 March 2009 and has not been revalued (apart from quoted investments) at 30 June 2009. However, calculated on the basis of the net asset value at 31 March 2009 (adjusted to reflect the purchase and sale of investments, currency movements and bid values in respect of quoted investments) the unaudited net asset value at  30 June 2009 was 1,571p per share compared to 1,512p at 31 March 2009, an increase of 3.9%.

3. Composition of Portfolio

Electra's portfolio of unquoted and quoted investments consists of securities held in a number of companies (the "investment portfolio") together with cash or near cash offset by borrowings ("net liquid resources"). The investment portfolio consists primarily of direct investments together with funds where investments are held in limited partnerships managed by other private equity managers. Investments in funds are made primarily for the purpose of gaining exposure to other geographic areas and generating co-investment opportunities.

* Based on values at 31 March 2009 adjusted as detailed in 2 above

** Excludes accrued income on the investment portfolio of £10,391,000 at  30 June 2009 (31 March 2009: £8,591,000)

Electra had direct investments in 59 companies with an aggregate value of £405 million and investments in 34 private equity funds with an aggregate value of £71 million at 30 June 2009. The top 10 and 20 direct investments accounted for 63% and 86% respectively of the total direct investments.

Many of the unquoted investments have good defensive characteristics and are not consumer facing. The largest investment in the portfolio was in Allflex which at 30 June 2009 represented 18% of the unquoted portfolio. Allflex is an international manufacturer and supplier of animal identification tags to the agricultural sector.

4. Share Price Performance

Electra's share price at 30 June 2009 was 940p, an increase of 63% over the three months while the FTSE All-Share Index increased by 9% over the same period. Over the year to 30 June 2009, Electra's share price decreased by 39% while the FTSE All-Share Index decreased by 24%.

5. Investments and Realisations

Electra invested a total of £8.4 million in the three months to 30 June 2009 of which £2.8 million was drawn down under commitments to third party funds. This brings the total invested in the nine months to 30 June 2009 to £69.8 million. Investment for the equivalent nine month period last year was £75.1 million.

Realisation proceeds received by Electra were £6.5 million for the three months to 30 June 2009, bringing the total to £24.5 million for the nine months to 30 June 2009 (2008: £105.0 million).

6. Company Secretary

Having reviewed the AIC guidelines on corporate governance in the light of Sir David Walker's pending review of corporate governance in the UK banking industry, the Board has decided to appoint an independent Company Secretary.

Accordingly, the services of Company Secretary will be undertaken by Frostrow Capital LLP, in addition to its existing role as board adviser. A hand over period is currently in place with Frostrow taking over from Philip Dyke, a Partner of Electra Partners LLP, who has undertaken the duties of Company Secretary for the last 20 years. We thank him for his invaluable contribution. Philip remains a Partner of Electra Partners LLP.

Frostrow Capital LLP is an independent firm providing management, administrative and company secretarial services to investment companies.

7. Announcement of Results for Year to 30 September 2009

The Board currently anticipates that the announcement of results for the year ending 30 September 2009 will be made at the end of November 2009.

Ends

For information please contact:-

This statement aims to give an indication of material events and transactions that have taken place during the period from 1 April 2009 to the date of publication of this statement and their impact on the financial position of Electra Private Equity Plc. These indications reflect the Board's current view. They are subject to a number of risks and uncertainties and could change. Factors which could contribute to such differences include, but are not limited to, general economic and market conditions and specific factors affecting the financial prospects or performance of individual investments within Electra's portfolio.

The information contained in this announcement is restricted and is not for release, publication, or distribution, directly or indirectly, in or into the United States, Canada, Japan or Australia. The information in these materials does not constitute an offer for securities for sale in the United States, Canada, Japan or Australia.

No information contained in this announcement shall form the basis of, or be relied upon in connection with, any offer or commitment whatsoever in any jurisdiction.

This announcement is not an offer to sell or a solicitation of any offer to buy any securities of Electra Private Equity Plc (the "Company", and any securities, the "Securities") in the United States or any other jurisdiction. The Company is not registered under the U.S. Investment Company Act of 1940, as amended (the "Investment Company Act"), and holders of any Securities will not be entitled to the benefits of the Investment Company Act. The Securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and may not be reoffered, resold or transferred in the United States or to, or for the account or benefit of, U.S. persons (as such term is defined in Regulations under the Securities Act) unless registering under the Securities Act or an exemption from registration is available. Copies of this announcement are not being, and should not be distributed or sent into the United States. No public offering of Securities is being made in the United States. If for any reason in the future an offering of the Securities is made, such offering will be made by means of a prospectus that may be obtained from the Company and will contain all relevant information about the Company, its management and its financial statements.