Interim Management Statement
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 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'.
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 to
source new transaction opportunities, where Electra's flexible capital can be
utilised to best advantage. This was demonstrated well in the recent
refinancing of Park Resorts' debt facilities, where Electra and other clients
of 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 has
seen a high level of portfolio activity. Electra Partners is seeing an
increasing number of potential investment opportunities but continues to adopt
a patient and disciplined approach to new investment.
"In July we completed the sale of Allflex, generating a 15x return on Electra's
original investment, and we were delighted to be able to reinvest £57 million
in the company."
For further information
For Dr Colette Bowe/Hugh Mumford:
Nicholas Board or Andrew Kenny, Investor Relations, Electra Partners LLP 020
7214 3902
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 2013 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 decrease in the diluted net asset value of 0.5% since 31 March
2013.
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 the
three months to 30 June 2013 compared to a decline of 2% for the FTSE All-Share
Index. 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 bank
facilities). As at 29 July 2013 following the receipt of the Allflex proceeds
and the related reinvestment, Electra had £298 million of liquid resources (net
of 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 of
the portfolio by £3 million, although this was partially offset by losses of £1
million arising from the hedging arrangements of drawings under Electra's
multi-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 £38
million, excluding proceeds received from the sale of Allflex, which completed
on 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 ï¼ 3,664 256,114 49,266
EP I Secondary 109,999 (3,682) 55 106,372 72,862
Portfolio
AXIO Data Group 90,584 ï¼ ï¼ 90,584 90,584
Park Resorts 70,225 (773) 773 70,225 69,000
Lil-lets Group 43,030 ï¼ ï¼ 43,030 28,144
Allen & Heath ï¼ 42,275 ï¼ 42,275 42,275
Peverel Group 34,812 ï¼ ï¼ 34,812 21,972
Promontoria 30,412 (3,064) 820 28,168 12,597
Nuaire 27,712 ï¼ ï¼ 27,712 23,138
Premier Asset 26,631 ï¼ ï¼ 26,631 55,837
Management
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 ï¼ (1,871) 29,428 4,072
LondonMetric 27,591 ï¼ 312 27,903 26,463
Property
58,890 ï¼ (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 completed
on 18 July 2013, with Electra receiving gross proceeds of £266 million, which
compared to a valuation at 30 June 2013 of £256 million - the difference
primarily relating to positive currency movement. The sale generated a gross
return of 15x original cost (including income) for Electra over 15 years; an
IRR 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 debt
facilities. Following completion of the refinancing Electra will become the
largest shareholder in the company. As at 30 June 2013 the refinancing had no
impact on Electra's diluted NAV per share.
Disclaimer
This statement aims to give an indication of material events and transactions
that have taken place during the period from 1 April 2013 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.
The 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, 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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