Electra Private Equity PLC Edison issues update on Electra Private Equity
May 26 2021 - 4:01AM
RNS Non-Regulatory
TIDMELTA
Electra Private Equity PLC
26 May 2021
London, UK, 26 May 2021
Edison issues update on Electra Private Equity (ELTA)
On 21 May, Electra Private Equity (ELTA) announced the board's
intention to demerge Fridays - the largest of the two operating
businesses (74% of ELTA's NAV) - onto the FTSE Main Market and,
subsequently, to bring Hotter Shoes (10% of NAV) to AIM through
reclassification of the Electra entity. This followed the 15 April
announcement about the disposal of Sentinel for GBP22.2m (58.1p per
share), GBP11.3m higher than the asset's carrying value on the
balance sheet at 30 September 2020. ELTA has been following a
realisation strategy since October 2016, when it had a market cap
of c GBP1.7bn, and has since returned c GBP2bn to shareholders.
Since our December 2020 initiation note, the shares have
appreciated from a 22% discount to NAV to currently trading at a 7%
premium. The share price has almost doubled from 275.5p to 550.5p
per share.
-- ELTA's performance over one year and shorter periods has
responded very positively to the strategic and operational efforts
within the group of the past 24 months, including the ongoing
progress of the realisation of assets, with Sentinel sold in April
2021 (proceeds of GBP22.2m).
-- ELTA's management has, over the last six months, realised a
lot of the upside we highlighted in the scenario analysis in our
initiation note , and the increased NAV of GBP196.9m on 31 March
2021 reflects its efforts.
-- ELTA's strategy remains the realisation of assets in the best
possible way for shareholders.
-- ELTA's management believes that the TGI Fridays business,
with 87 sites now fully open in accordance with government
guidance, is well positioned to emerge from lockdown strongly, with
a robust pipeline of additional sites due to open in 2021 and
beyond.
-- Hotter's EBITDA in the seven months to end April 2021 is 8%
ahead of pro forma EBITDA for the continuing business in the year
to January 2020, which indicated pro forma full-year EBITDA of
GBP5.4m, up GBP0.9m on Q120.
-- A further update will be provided by the company as plans progress.
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