Better Capital promises more deals after a strong first year

JON Moulton’s turnaround house Better Capital reported encouraging progress in its first interim results yesterday.

Moulton, founder and managing partner, said they were “quite pleased with the progress to date.”

It has committed £57.5m to four firms: Gardner, RD Precision, Reader’s Digest and Calyx. The portfolio generated a profit of £3.5m in the period.

Analysts say the fund currently generates a 12 per cent premium compared to its net asset value.

The fund, launched in November 2009 at 100p a share, raised more money in June at 110p a share, taking the total fund to £210m.

“With the initial restructurings well under way and proceeding generally according to plan, coupled with the impressive early results of Gardner, progress so far is encouraging,” said Better Capital’s chairman Richard Crowder.

Moulton said the fund, which takes majority stakes in distressed companies, was targeting “companies that have got the opportunity to do better, and need extra capital and a change in management to get there.”

The fund should be substantially invested by the end of 2011, through between four and ten deals, Moulton said.