ELTA.L Regulatory News (ELTA)

EMBARGOED UNTIL 07:00AM, FRIDAY 2 AUGUST 2013 ELECTRA PRIVATE EQUITY PLC Interim Management Statement for the three month period to 30 June 2013 The information contained in this announcement is restricted and is not forrelease, publication or distribution, directly or indirectly, nor does itconstitute 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 itssubsidiaries have been abbreviated to `Electra' or the `Company'. References toElectra Partners LLP and EQM Capital LLP (manager of Electra's money marketinvestments) have been abbreviated to `Electra Partners' or `the Manager'. Unaudited Financial Highlights for the three month period ended 30 June 2013 * Diluted NAV per share of 2,671p (2,684p at 31 March 2013) * Share price down 6% compared to a decline of 2% in the FTSE All-Share Index * Share price up 35% over the year to 30 June 2013 against an 18% increase for the FTSE All-Share Index * The top 10 and 20 investments accounted for 64% and 81% respectively of the investment portfolio * £77 million of liquid resources (net of borrowings) * £298 million of liquid resources (net of borrowings) at 29 July 2013, following the receipt of Allflex Holdings ("Allflex") proceeds Portfolio Highlights for the three months to 30 June 2013 * £46 million invested * £251 million invested in the nine months since 30 September 2012 * £38 million realised (inclusive of income) * £150 million realised (inclusive of income) in the nine months since 30 September 2012 Subsequent to 30 June 2013 * Receipt of £266 million of proceeds from the sale of Allflex and subsequent reinvestment of £57 million * Refinancing of Park Resorts' debt facilities to give Electra a significant equity stake Dr Colette Bowe, Chairman of Electra Private Equity, said: "The Board is encouraged by the continuing ability of Electra Partners tosource new transaction opportunities, where Electra's flexible capital can beutilised to best advantage. This was demonstrated well in the recentrefinancing of Park Resorts' debt facilities, where Electra and other clientsof Electra Partners became majority shareholders." Hugh Mumford, Managing Partner of Electra Partners, said: "This year continues to be busy and the three month period to 30 June 2013 hasseen a high level of portfolio activity. Electra Partners is seeing anincreasing number of potential investment opportunities but continues to adopta patient and disciplined approach to new investment. "In July we completed the sale of Allflex, generating a 15x return on Electra'soriginal investment, and we were delighted to be able to reinvest £57 millionin the company." For further information For Dr Colette Bowe/Hugh Mumford: Nicholas Board or Andrew Kenny, Investor Relations, Electra Partners LLP 0207214 3902 1 Unaudited Net Asset Value As is usual for the calculation of Electra's net asset value for the purposesof Interim Management Statements, the investment portfolio (apart from listedinvestments) has not been revalued at 30 June 2013 although it does reflectpurchases and sales of investments, currency movements and bid values inrespect of listed investments at that date. The impact of these changesresulted in a decrease in the diluted net asset value of 0.5% since 31 March2013. 30 June 2013 31 March 2013 Movement p p % NAV per share (diluted) 2,671 2,684 (0.5) 2 Share Price Performance Electra's share price at 30 June 2013 was 2,215p, a decrease of 6% over thethree months to 30 June 2013 compared to a decline of 2% for the FTSE All-ShareIndex. Over the year to 30 June 2013, Electra's share price increased by 35%while the FTSE All-Share Index increased by 18%. 3 Resources and Commitments 30 June 2013 31 March 2013 £m £m Liquid resources 241 352 Bank borrowings (facility committed until 2017) (164) (163) ZDP shares (repayable 2016) (60) (59) Convertible Bond (repayable 2017 if not previously (81) (80)converted) Net Cash (64) 50 At 30 June 2013 outstanding commitments amounted to £104 million (10% of NAV).As at that date Electra had £77 million of liquid resources (net of bankfacilities). As at 29 July 2013 following the receipt of the Allflex proceedsand the related reinvestment, Electra had £298 million of liquid resources (netof bank facilities). 4 Investment Portfolio * 30 June 2013 31 March 2013 £m £m Direct unlisted 801 777 Secondaries 130 138 Funds 116 113 Listed 91 93 Investment portfolio 1,138 1,121 * Valued on the basis of Note 1 (Unaudited Net Asset Value) as set out above. In the three months to 30 June 2013 currency movements increased the value ofthe portfolio by £3 million, although this was partially offset by losses of £1million arising from the hedging arrangements of drawings under Electra'smulti-currency loan facility. 5 Investments and Realisations Electra invested a total of £46 million in the three months to 30 June 2013.The largest investment in the period was a £42 million investment in Allen &Heath. Realisations inclusive of income over the same period totalled £38million, excluding proceeds received from the sale of Allflex, which completedon 18 July 2013. 6 Key Investments Top 10 Direct Unlisted and Secondary Investments* Company Fair value of Net Net ** Fair Cost of holding at payments/ performance value holding at 31 Mar 2013 (receipts) in period of holding 30 Jun at 2013 £'000 £'000 £'000 30 Jun £'000 2013 £'000 Allflex Holdings 252,450 － 3,664 256,114 49,266 EP I Secondary 109,999 (3,682) 55 106,372 72,862Portfolio AXIO Data Group 90,584 － － 90,584 90,584 Park Resorts 70,225 (773) 773 70,225 69,000 Lil-lets Group 43,030 － － 43,030 28,144 Allen & Heath － 42,275 － 42,275 42,275 Peverel Group 34,812 － － 34,812 21,972 Promontoria 30,412 (3,064) 820 28,168 12,597 Nuaire 27,712 － － 27,712 23,138 Premier Asset 26,631 － － 26,631 55,837Management 685,855 34,756 5,312 725,923 465,675 Key Direct Listed Investments* Company Fair value of Net Net ** Fair v Cost of holding at payments/ performance alue of h holding at olding at 31 Mar 2013 (receipts) in period 30Jun 2013 30 Jun £'000 £'000 £'000 2013 £'000 £'000 Zensar Technologies 31,299 － (1,871) 29,428 4,072 LondonMetric 27,591 － 312 27,903 26,463Property 58,890 － (1,559) 57,331 30,535 * Excludes liquidity funds ** Valued on the basis of Note 1 (Unaudited Net Asset Value) as set out above 7 Allflex In May 2013, Electra received a binding offer for Allflex. The sale completedon 18 July 2013, with Electra receiving gross proceeds of £266 million, whichcompared to a valuation at 30 June 2013 of £256 million - the differenceprimarily relating to positive currency movement. The sale generated a grossreturn of 15x original cost (including income) for Electra over 15 years; anIRR of 28%. Subsequent to the sale, Electra agreed to reinvest US$85 million (£57 million)in the new buyout vehicle established to acquire Allflex. 8 Park Resorts On 24 July 2013 it was announced that Park Resorts had refinanced its debtfacilities. Following completion of the refinancing Electra will become thelargest shareholder in the company. As at 30 June 2013 the refinancing had noimpact on Electra's diluted NAV per share. Disclaimer This statement aims to give an indication of material events and transactionsthat have taken place during the period from 1 April 2013 to the date ofpublication of this statement and their impact on the financial position ofElectra 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 notlimited to, general economic and market conditions and specific factorsaffecting the financial prospects or performance of individual investmentswithin Electra's portfolio. No information contained in this announcement shall form the basis of, or berelied upon in connection with any offer or commitment whatsoever in anyjurisdiction. The announcement is not an offer to sell or a solicitation of any offer to buyany securities of Electra Private Equity PLC (the "Company" and any securities,the "Securities") in the United States or any other jurisdiction. The Companyis not registered under the U.S. Investment Company Act, as amended (the"Investment Company Act"), and holders of any Securities will not be entitledto the benefits of the Investment Company Act. These securities have not beenand 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 theUnited States or to, or for the account or benefit of U.S. persons (as suchterm is defined in Regulation S under the Securities Act) unless registeredunder the Securities Act or an exemption from such registration is available.Copies of this announcement are not being, and should not be distributed orsent into the United States, Canada, Japan, Australia or New Zealand. No publicoffering of Securities is being made in the United States. If for any reason inthe future an offering of the Securities is made, such offering will be made bymeans of a prospectus that may be obtained from the Company and will containall relevant information about the Company, its management and its financialstatements.