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Electra Private Equity

LN: ELTA

Market Cap£228m

Last Close 584p

Electra Private Equity’s investment objective is to follow a realisation strategy, which aims to crystallise value for shareholders through balancing the timing of returning cash to shareholders with maximisation of value.

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Investment summary

On 16 September, Electra Private Equity (ELTA) issued a trading update for its largest remaining hospitality brands, Fridays and 63rd+1st, and named the board members for Hostmore, the parent company of those brands. ELTA’s board confirmed its intention to demerge Fridays – the largest of the two operating businesses (74% of ELTA’s NAV) – onto the Main Market of the London Stock Exchange (initially announced in May), early in Q421. The board aims to transition the remaining company, Hotter Shoes (10% of ELTA’s NAV), to AIM, renaming it Unbound. ELTA has been following a realisation strategy since October 2016, when it had a market cap of c £1.1bn, and has since returned c £2bn to shareholders. Since our initiation note published in December 2020, ELTA’s NAV has appreciated c 45% from £135m to £197m. The market capitalisation of c £222m and a c £320m management valuation for Hotter and TGI Fridays (excluding cash, see below) implies further upside for ELTA’s share price.

Content on Electra Private Equity
Electra Private Equity – Introducing Hostmore and Unbound brands
Investment companies | Update | 27 September 2021
Electra
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Share price graph
Price performance
%
1m
3m
12m
Actual 7.4 2.5 223.1
Relative* 3.9 (2.2) 160.1
52-week high/low 670.0p/172.2p
*% relative to local index
Key management
Gavin Manson Chief financial and operating officer
Neil Johnson Executive Chairman

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