Better Capital : BCAP and Better Capital 2012 : BC12 – finals

Better Capital 2012 warns on Everest/SPOT valuation

Better Capital has published results for the year ended 31 March 2014 for its two cells – the original (“2009”) cell, Better Capital : BCAP, and the 2012 cell – Better Capital 2012 : BC12.

The net asset value of the 2009 cell fell by 10.7% or £31.2m over the year as the company wrote down the value of its investment in Spicers. This company has been folded into OfficeTeam – the company recently acquired by the Better Capital 2012 cell and the 2009 cell now has an 11.5% stake in the combined business. The 2009 cell contributed £8.8m to help support four of its investments during the year including money to help Santia buy First Order Red an asbestos consultancy business. The 2009 cell also sold the Readers Digest business for a nominal sum during the year. The managers report indicates that trading has stabilised or improved in most of its investments. The problems at Spicers are ascribed to a poorly executed move to a new location in Smethwick, inadequate systems and the unavailability of credit insurance for Spicers’ suppliers as Spicers suffered cash constraints.

The net asset value of the 2012 cell rose by 8% or £19m. The report says this is entirely down to an uplift in the value of Everest. Generally the manager’s comments on trading are positive with the exception of City Link where they say “some of the reduction in depots and other changes have been executed too quickly causing a shortfall in operational performance with subsequent delays and costs”.


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