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Electra Private Equity

LN: ELTA

Market Cap£27.1m

Last Close 64p

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 2 November and 2 December 2021, Electra Private Equity (ELTA) reiterated its corporate strategy for moving its listing from the Main Market of the London Stock Exchange to AIM, and provided updates on current trading for its remaining corporate investment, Hotter Shoes. With respect to trading, there was ongoing strength in Hotter’s revenue growth. Management’s medium-term guidance for Hotter suggests a revenue CAGR of 12% and EBIT CAGR of c 86% in FY22–25e. This guidance excludes incremental revenue from potential new brand partnerships as Unbound seeks to leverage its core target demographic, which management believes could double profits again in the medium term. Applying the median EV/sales multiple of UK online consumer peers to Hotter’s FY22 and FY23 guidance suggests an equity value of £22–33m, an average of £27.5m, versus its last reported (30 September 2021) adjusted net asset value (NAV) of £33.5m, before any incremental revenue and profit from the new brand partnerships. Unbound’s equity value will likely be enhanced when it is listed on AIM by the transfer of residual cash from Electra. Our estimated NAV for ELTA is £36.1m compared to the current market cap of £24.8m.

Content on Electra Private Equity
Electra Private Equity – Realisation strategy at the final stage
Investment companies | Review | 2 December 2021
Electra
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 6.0 (40.3) 26.3
Relative* 4.1 (41.9) 13.8
52-week high/low 124.0p/48.6p
*% relative to local index
Key management
Gavin Manson Chief financial and operating officer
Neil Johnson Executive Chairman

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