Electra makes total return of 15 percent, seeks directors

LONDON (Reuters) - British private equity firm Electra (ELTA.L) said on Wednesday it made a total return of 15 percent in the six months ended March, helped by profit growth in its portfolio of companies.

The Hotter Shoes owner said it would pay an interim dividend of 44 pence a share.

Electra is undertaking a strategic review, including of the performance reporting of its companies, after activist investor Edward Bramson, who heads Sherborne Investors (SIGB.L), fought his way onto the board in 2015 after a bitter battle lasting almost two years.

In January shareholder advisory firm PIRC said Electra's board was not independent enough after the appointment of U.S.-based Bramson and a supporter, Ian Brindle.

Chairman Kate Barker told Reuters in a telephone interview that the board was seeking "a couple" more independent non-executive directors to address the issue.

Electra has already appointed Neil Johnson, chairman of chemicals firm Synthomer (SYNTS.L), as non-executive chairman and director.

Johnson is to join Electra on May 12, replacing Barker, who stood in as interim chair after Bramson's joining the board in November prompted the resignation of then Chairman Roger Yates.

Barker added that the strategic review was expected to be completed in the autumn.

Electra said it had invested 203 million pounds in the period, although the UK referendum on an exit from the European Union was hampering the pace of some transactions.

"We've observed that the market is a little quieter because of it," Alex Fortescue, managing partner of Electra. "I think there are processes and transactions that have been put on hold pending the outcome. In terms of our portfolio, we don't see areas of key risk from a Brexit vote."

Electra is building up its debt portfolio, which now stands at 59 million pounds, as part of a drive to build up its stable, cash-yielding assets.

(Reporting by Freya Berry; editing by Mark Potter and Jason Neely)