EPE Special Opportunities Limited Trading Statement (9285N)
04 Febrero 2021 - 01:00AM
UK Regulatory
TIDMESO TIDMEO.P TIDMEC.P TIDMEL.P
RNS Number : 9285N
EPE Special Opportunities Limited
04 February 2021
EPE Special Opportunities Limited
("ESO" or the "Company")
Trading Statement
The Board of EPE Special Opportunities Limited is pleased to
provide an update on the Company's performance for the year ended
31 January 2021.
Summary
-- The unaudited estimate of the Company's Net Asset Value
("NAV") as at 31 January 2021 is 437.63 pence per share, an
increase of 38.0 per cent on the NAV per share of 317.18 pence as
at 31 January 2020. The unaudited estimate has been prepared using
the Company's historic valuation methodology and accounting
principles.
-- The Company's share price as at 31 January 2021 was 271.00
pence, representing an increase of 36.2 per cent. on the share
price of 199.00 pence as at 31 January 2020.
-- The Company has overall performed well in the face of
significant disruption caused by the spread of COVID-19 and the
resultant economic headwinds. The Board, Investment Advisor and the
management of the portfolio companies have continued to prioritise
the protection and wellbeing of colleagues, whilst safeguarding the
financial position of the Company and its investments. Worryingly
however, lockdowns have continued into 2021 and the cost of the
pandemic to livelihoods and the wider economy remains to be
counted.
-- The disruption to the economy could lead to businesses
needing further financial support over the coming 12-18 months.
This dynamic is both an investment opportunity and a portfolio risk
for the Company. The Board continues to examine new investment
opportunities as identified by the Investment Advisor.
-- Liquidity at the Company is circa GBP28.0 million. The
Company has GBP3.9 million of outstanding unsecured loan notes
repayable in July 2022. The Company has no other third-party debt
outstanding.
-- On 21 January 2021, Luceco plc released its full year trading
statement for the year ended 31 December 2020. The business
reported year-on-year revenue growth of 2.3 per cent. despite
disruption in the first half of 2020. In addition, the business
achieved year-on-year gross margin gains (40 per cent. vs. 36 per
cent. in the prior year) and increased profitability (GBP30 million
operating profit vs. GBP18 million in the prior year) following the
successful implementation of manufacturing improvements, a shift in
sales mix towards high margin professional sales and tight control
of overheads. Net debt improved by GBP9.1 million over the year to
GBP18.3 million at year end. In November 2020, the Company sold 4.0
million shares in Luceco plc, returning GBP10.0 million cash to
ESO, whilst retaining a 24.9 per cent. holding in the business.
-- Whittard of Chelsea has experienced unprecedented disruption
during the year ended 31 December 2020. UK retail stores were
closed for multiple periods throughout year which led to a
reduction in Whittard's group sales of 20 per cent. when compared
to the year ended 31 December 2019. Whittard's UK retail stores
were the largest and most profitable sales channel in 2019 and
sales were 60 per cent. down for the same period in 2020. Lockdowns
and landlord inflexibility continue to blight UK retail and much
more must be done to mitigate the disruption and costs that are no
fault of hard-pressed retailers. Despite the disruption to the UK
store estate, Whittard has only remained EBITDA positive through
the period due to growth in UK ecommerce. Over the period, the
business has continued to pursue compelling international
opportunities with the Asian part of the business trading strongly.
Corporate gifting, online marketplaces and new geographies also
provide encouragement for the future.
-- David Phillips made pleasing progress in the period, building
on the profitable and growing platform established in the prior
period. The business maintained overall sales levels and improved
EBITDA year on year by GBP2.9 million. Growth in profitability was
achieved due to the ongoing benefits of the turnaround and, more
recently, through efficiencies identified through the COVID-19
crisis.
-- Building on its impressive growth trajectory, Pharmacy2U
experienced significant sales growth as patients sought
direct-to-home alternatives to collecting prescriptions in high
street pharmacies. The business's new distribution facility began
dispensing live orders in November 2020.
-- In September 2020, the Company completed a GBP1.9 million
investment into Atlantic Credit Opportunities Fund, a commingled
distressed credit fund, and in November 2020, the Company completed
a $2.5 million investment in a segregated account of Prelude
Structured Alternatives Master Fund LP, a multi-manager hedge fund
platform invested in high yield credit securities. Both investments
aim to benefit from increased credit markets opportunities in the
coming period.
-- The Company's unquoted portfolio is valued at a weighted
average EBITDA to enterprise value multiple of 5.8x (excluding
Pharmacy2U, which is valued on a sales multiple). The Company's
portfolio has in aggregate 0.3x third party net debt to EBITDA.
-- Between November and December 2020, the Company completed
buybacks in the market totaling 799,480 ordinary shares (or 2.4 per
cent. of the Company's issued ordinary share capital).
Mr Clive Spears, Chairman, commented: " The performance of the
Company in the year ended 31 January 2021 was pleasing overall in
the face of acute disruption caused by the spread of COVID-19. The
Board would like to thank the Investment Advisor, the Company's
other service providers, colleagues and employees across the
portfolio for their efforts over this challenging and unprecedented
period. The Board looks forward to releasing the audited report and
accounts for year ended 31 January 2021 in due course."
The person responsible for releasing this information on behalf
of the Company is Amanda Robinson of Langham Hall Fund Management
(Jersey) Limited.
Enquiries:
EPIC Private Equity LLP +44 (0) 207 269 8865
Alex Leslie
Langham Hall Fund Management (Jersey) +44 (0) 15 3488 5200)
Limited Amanda Robinson
Cardew Group Limited +44 (0) 207 930 0777
Richard Spiegelberg
Numis Securities Limited +44 (0) 207 260 1000
Nominated Advisor: Stuart Skinner / Huw Jeremy
Corporate Broker: Charles Farquhar
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END
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