Electra’s interim results show it generating a total return on net assets of 15% for the six months ended 31 march 2016, well ahead of a 7% return for the Morningstar Private Equity Index. The discount widened a little leading to a 9% return to shareholders. The return on the UK market for the period was 4%. The interim dividend is 44p, 16% higher than last year.
Electra invested or committed to invest £203 million in eight transactions, more than the £188 million invested in the whole of the previous year. Four new investments completed or committed in the period. They say pricing of bolt-on acquisitions represents an attractive alternative to new investments and Electra Partners have continued to seek out such opportunities. During the period five such bolt-ons were completed.
There has been a high level of realisation activity in the period. In aggregate, income and capital proceeds amounted to £384m, nearly a quarter of the opening portfolio value. Three investments accounted for more than two thirds of this figure, being AXIO Data Group, Parkdean Resorts and Zensar Technologies. Approximately 50% of the portfolio return in the period was generated by Parkdean Resorts, The Original Bowling Company and Elian.
Net cash at 31 March 2016 (after allowing for the ZDP Shares, which are repayable in August 2016) was £248m. After taking into account the interim dividend and investments which are expected to complete in the near future, the resulting net liquid resources are anticipated to be approximately £185m. There is no intention to extend the life of the ZDP Shares or to raise a new instrument once the ZDP Shares are repaid in August 2016.
ELTA : Electra will not issue new ZDPs