Electra Private Equity claims impressive first-half numbers

Electra Private Equity posted its unaudited results for the six months to 31 March on Thursday, reporting “continued strong performance” as its net asset value per share reached 5,544p, for a total return of 10% for the six-month period and 30% over the last twelve months.

The FTSE 250 company's share price ended the period at 4,951p, for a total return of 18% for the period, compared with 8% for the FTSE All-Share Index.

Its investment return was £246m, or 15% on the opening portfolio for the six months/

The board said the largest individual gains were with Audiotonix at £62m, Treetops at £45m, AXIO at £44m, TGI Fridays at £30m, Innovia at £28m, Parkdean Resorts at £26m and Hotter at £12m.

There were 11 transactions during the period, including two add-ons to existing portfolio companies and nine realisations.

Electra said a total of £1.067bn was realised, or 63% of the opening investment portfolio.

Net asset value per share total return was 230% over ten years, equivalent to a ten-year annualised return of 13%, which was in the upper part of the board's long-term target of 10-15%.

Its share price total return was 237% over ten years, compared with 74% for the FTSE All-Share Index.

Since the period ended, the company said a further £442 million of realisations had completed, including £94m at CALA & Retirement Bridge, another £94m at Treetops, £78m at AXIO, £59m at PINE and £42m from the EP1 Secondary Portfolio.

An additional £26m of realisations had also been announced from AXIO.

The board confirmed a special dividend of £1bn, or 2,612p per share, was paid on 5 May.

Its updated unaudited net asset value stood at £1.12bn on 19 May, as adjusted to reflect purchases and sales of investments, currency movements and bid values on that day in respect of listed investments.

Expected cash at 31 May 2017 was set to be approximately £740m, the board said.

It declared a second special dividend of £350m, or 914p per share, which would be payable on 14 July to shareholders on the register on 9 June.

“Since my full year 2016 statement we have continued to make excellent progress in optimising shareholder value in our current structure and are now ready for the management transition from external to internal management from 1 June,” said chairman Neil Johnson.

“We are looking forward to the commencement of the second phase of the strategic review in June, when the executive management team will have direct access to the portfolio companies' management teams and financial information for the first time.

“The results of the second phase of the review will be announced in the fourth quarter of 2017.”