Better Capital gets set to write down two firms
BETTER Capital plans to write down the value of two of its portfolio companies after tough trading in recent months.
The turnaround investor, led by Jon Moulton, said a pair of “more material” companies in the 2009 fund had suffered a difficult few months.
While the unnamed companies “remain profitable”, Better said it will make a significant write-down at the end of March, hitting the overall value of the fund.
The 2009 Cell invests in seven firms including IT outsourcer Calyx, boat maker Fairline, and Reader’s Digest.
It also has holdings in software group Omnico, stationery wholesaler Spicers, aerospace manufacturer Gardner and support services company Santia, which was founded from the ashes of Connaught.
A spokesperson declined to name the firms facing write-downs. Better said it will give more detail on 17 February, but will not reveal anything that could be “commercially detrimental”.
Shares in Becap LP, the listed element of the fund, crashed over 20 per cent to 122p yesterday.
Better added in yesterday’s trading update that companies in its separate 2012 fund were showing “demonstrable progress” and that the portfolio’s net asset value will rise or remain stable at a valuation in March.
This fund’s holdings are delivery company City Link, which Better bought for £1 from Rentokil last year; fashion brand Jaeger; and window installation firm Everest.