Electra Private Equity posts solid returns

9th Dec 2016 07:08

(ShareCast News) - Electra Private Equity posted its preliminary results for the year to 30 September on Friday, with a net asset value per share of 5,149p, representing a total return of 35% for the year.The FTSE 250 firm's share price was 4,310p, a total return of 36% for the year, compared with 17% for the FTSE All-Share Index.Its investment return was £751m, or 46% on the opening portfolio.The company made 27 transactions during the year including three new platform deals, 10 add-ons to or mergers of existing portfolio companies and 8 realisations during the period.It realised £903m, or 55% of opening investment portfolio, and invested £218m.Total dividends paid in the year were 122p, with a second interim dividend of 110p per share declared, now payable to tendered shares.NAV per share total return stood at 255% over 10 years, equivalent to a 10-year annualised return of 14%, at the upper end of the company's long-term target of 10-15%.Share price total return was 237% over ten years, compared with 76% for the FTSE All-Share Index.The firm said the conversion of the 5% Subordinated Convertible Bond, the redemption of the Zero Dividend Preference Shares and the cancellation of the multi-currency revolving credit facility left it with no gearing."Over the last six months, we have reviewed and reconstituted the Board, set in train the development of a strong executive team and completed the first phase of our strategic review," said chairman Neil Johnson."These initiatives are designed to optimise shareholder value and give me confidence that we are building a business with a strategy and structure that is attractive to shareholders."Johnson said the board was eager to embark on the second stage of its review, though the timing of that was currently constrained by the terms of the outsourced management contract and will be after June 2017, unless they are able to negotiate earlier access to the portfolio companies with Epiris.