LONDON (Alliance News) - Electra Private Equity PLC saw its shares rise Thursday after it reported higher net asset value for the first half of its financial year, returns in line with long-term averages and targets, and it said it had made a record level of new investment despite the tough competition in the market.
In a statement, the company reported a diluted net asset value per share increase of 5% to 2,914 pence, while the figure including dividends has now made a ten-year annualised return on equity of 14%, in line with its long-term target of 10-15% a year.
Its diluted return per share was 150 pence for the six months to end-March, while its share price rose 17%, beating the 5% total return from the FTSE All-Share index. Its share price total return is more than double the return for the index over ten years, it said.
"Electra aims to produce a return on equity of 10-15% per annum over the long term, and over the past ten years has done just that with an annualised return of 14%," Chairman Roger Yates said in a statement.
"The total return from the investment portfolio of 9% over six months reflects our success in purchasing cash-generative assets at discounted values," said Hugh Mumford, the managing partner of Electra Partners, the company's fund manager.
Electra Private Equity said it invested or committed a total of GBP250 million during the six month period, and realised GBP152 million including income. Its biggest individual investments or commitments were Hotter Shoes, Ogier Fiduciary Services, and Innovia Group.
Its total portfolio gain in the period was GBP89 million, and it made its largest individual gains on AXIO Data Group, at GBP37 million, and Park Resorts at GBP£10 million.
"Electra Partners' deal flow remains strong despite an increasing level of competition in the private equity market," the company said in its outlook statement.
"Recent performance has been notably strong in the less mature parts of the portfolio as the investments made over the past two years have already started to generate returns. Electra Partners is actively pursuing value creation strategies across the portfolio and, with the wider economic improvement leading to stronger trading conditions, Electra is well positioned to continue to deliver superior returns to its shareholders," it added.
Electra Private Equity shares were up 1.9% at 2,769.24 pence early Thursday, one of the top gainers on the FTSE 250.