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18 Jul 2012 07:00
ELECTRA PRIVATE EQUITY PLC
Interim Management Statement for the three month period to 30 June 2012
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 and EQM Capital LLP (manager of Electra's money market investments) have been abbreviated to 'Electra Partners' or 'the Manager'.
Highlights
• Unaudited NAV per share as at 30 June 2012 of 2,382p diluted (2,360p at 31 March 2012), 2,503p basic
• Share price down 4.3% over the period against a 3.7% decrease for the FTSE All-Share Index
• Share price down 5.1% over the year against a 7.4% decrease for the FTSE All-Share Index
• Outstanding commitments of £91 million (10.3% of NAV)
• Investment capacity of over £440 million
• The top 10 and 20 investments accounted for 56% and 74% respectively of the investment portfolio
Colette Bowe, Chairman of Electra Private Equity, said:
"The last three months have seen a modest uplift in net asset value and our share price slightly lagging the FTSE All-Share. The Board supports the Manager's cautious investment stance."
Hugh Mumford, Managing Partner of Electra Partners, said:
"Whilst this has been a quiet period for deal completion, our origination efforts are undiminished and we are seeing the majority of deals in our market. We remain cautious, however, as, in our view, prices have yet to reflect the uncertain macro environment."
For further information
For Colette Bowe/Hugh Mumford
Nick Woods/Charlotte McMullen, M:Communications 020 7920 2330
Monique Dumas, Investor Relations Partner, Electra Partners LLP 020 7214 4200
1 Unaudited Net Asset Value
As is usual for the calculation of Electra's net asset value for the purposes of Interim Management Statements, the investment portfolio (apart from listed investments) has not been revalued at 30 June 2012 although it does reflect purchases and sales of investments, currency movements and bid values in respect of listed investments at that date. The impact of these changes resulted in a diluted net asset value increase of 0.9% since 31 March 2012.
30 June 2012 | 31 March 2012 | Movement | |
p | p | % | |
NAV per share (diluted) | 2,382 | 2,360 | 0.9 |
NAV per share (basic) | 2,503 | 2,479 | 1.0 |
2 Share Price Performance
Electra's share price at 30 June 2012 was 1,644p, a decrease of 4.3% over the three months compared to a 3.7% decrease in the FTSE All-Share Index over the same period. Over the year to 30 June 2012, Electra's share price decreased by 5.1% while the FTSE All-Share Index decreased by 7.4%.
3 Resources and Commitments
30 June 2012 | 31 March 2012 | |
£m | £m | |
Liquid resources | 408 | 413 |
Bank borrowings (facility committed until 2016) | (156) | (159) |
ZDP shares (repayable 2016) | (55) | (55) |
Convertible Bond (repayable 2017) | (100) | (100) |
Net cash | 97 | 99 |
At 30 June 2012 outstanding commitments amounted to £91 million (10.3% of NAV).
As at that date Electra had available investment capacity of over £440 million made up of £408 million liquid resources and £39 million of undrawn borrowings.
4 Investment Portfolio
* 30 June 2012 | 31 March 2012 | |
£m | £m | |
Direct unlisted | 538 | 543 |
Secondaries | 40 | 40 |
Funds | 108 | 109 |
Listed | 99 | 94 |
Investment portfolio | 785 | 786 |
* Valued on the basis of Section 1 (Unaudited Net Asset Value) as set out above
In the three months to 30 June 2012 currency movements reduced the portfolio by £3.4 million, although this was offset by gains of £3.4 million arising from the hedging arrangements of drawings under Electra's multi-currency loan facility.
5 Investments and Realisations
Electra invested a total of £10 million in the three months to 30 June 2012. The largest investment in the period was a £7 million purchase of additional shares in Allflex Holdings. Realisations over the same period totalled £14.8 million of which £4.8 million represented proceeds received from the partial loan repayment in esure and £4.2 million represented the final instalment in respect of the disposal of Capital Safety Group.
6 Key Investments
Top 10 Direct Unlisted Investments*
Fair value of holding at 31 March 2012 |
Net payments/(receipts) |
Net performance in period |
**Fair value of holding at 30 Jun 2012 |
Cost of holding at 30 Jun 2012 | |
Company | £'000 | £'000 | £'000 | £'000 | £'000 |
Allflex Holdings | 111,313 | 6,795 | ‒ | 118,108 | 48,698 |
esure | 55,597 | (4,752) | ‒ | 50,845 | 20,675 |
Park Resorts | 44,911 | ‒ | ‒ | 44,911 | 44,911 |
Lil-lets Group | 43,241 | ‒ | ‒ | 43,241 | 23,194 |
Promontoria | 36,420 | ‒ | (950) | 35,470 | 14,082 |
Davies Group | 30,839 | ‒ | ‒ | 30,839 | 35,789 |
Nuaire | 29,898 | ‒ | ‒ | 29,898 | 23,138 |
BDR Thermea | 28,200 | ‒ | ‒ | 28,200 | 21,534 |
Premier Asset Management | 25,585 | 14 | (14) | 25,585 | 55,837 |
Peverel Group | 21,971 | 1 | (1) | 21,971 | 21,971 |
427,975 | 2,058 | (965) | 429,068 | 309,829 |
Key Direct Listed Investments*
Fair value of holding at 31 March 2012 |
Net payments/(receipts) |
Net performance in period |
**Fair value of holding at 30 Jun 2012 |
Cost of holding at 30 Jun 2012 | |
Company | £'000 | £'000 | £'000 | £'000 | £'000 |
London & Stamford Property | 32,789 | ‒ | 1,396 | 34,185 | 30,195 |
Zensar Technologies | 23,249 | ‒ | 7,584 | 30,833 | 4,211 |
56,038 | ‒ | 8,980 | 65,018 | 34,406 |
* Excludes liquidity funds
** Valued on the basis of Section 1 (Unaudited Net Asset Value) as set out above
Disclaimer
This statement aims to give an indication of material events and transactions that have taken place during the period from 1 April 2012 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 difficulties 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.
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 1940, as amended (the "Investment Company Act"), and holders of any Securities will not be entitled to the benefits of the Investment Company Act. These 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 Regulation S under the Securities Act) unless registered under the Securities Act or an exemption from such registration is available. Copies of this announcement are not being, and should not be distributed or sent into the United States, Canada, Japan, Australia or New Zealand. 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.
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