DJ EPE Special Opportunities Limited Interim Review and Unaudited Financial Statements

TIDMESO TIDMEO.P TIDMEC.P TIDMEL.P

RNS Number : 3252Y

EPE Special Opportunities Limited

08 September 2020

EPE Special Opportunities Limited

("ESO" or the "Company")

Interim Review and Unaudited Financial Statements for the six months ended 31 July 2020

The Board of EPE Special Opportunities are pleased to announce the Companys Interim Review and Unaudited Financial Statements for the six months ended 31 July 2020.

Summary

-- The performance of the Company for the six months ended 31 July 2020 was encouraging in the context of the generalised disruption caused by COVID-19, with the Companys portfolio demonstrating resilience to acute economic headwinds. The Board and the Investment Advisor (the "IA") continue to carefully monitor the outlook for the UK economy as the threat of a second wave of COVID-19 infections remains high.

-- The Board, IA and the management of the portfolio companies took early and prudent steps to safeguard the financial position of the Company and its investments, and to protect the wellbeing of colleagues across the portfolio.

-- The Company maintains strong liquidity of GBP23.3 million which is available to support the existing portfolio, meet the Companys committed obligations and to deploy capital into sufficiently attractive investment opportunities as they arise.

-- The Net Asset Value ("NAV") of the Company as at 31 July 2020 was 303.04 pence per share, a decrease of 4.5 per cent on the NAV per share of 317.18 pence as at 31 January 2020. The small reduction in the Companys NAV per share has been driven primarily by the decline in value of the Companys unquoted assets, reflecting the impact of the COVID-19 pandemic.

-- The share price as at 31 July 2020 was 175.00 pence, representing a decrease of 12.1 per cent on the share price of 199.00 pence as at 31 January 2020.

-- Luceco plcs share price remained flat over the period. Luceco plcs share price subsequently increased by c.30 per cent. in August following the release of a trading update announcing performance ahead of market expectations. The business delivered operating profit for the interim period to 30 June 2020 ahead of the prior year despite reduced sales. Positive cash generation during the period led to a further reduction in the businesss net debt to 0.8x last 12 month EBITDA and allowed for the reinstatement of the interim dividend.

-- Whittard of Chelsea experienced challenging trading conditions, with UK retail stores closed in the interests of employee safety and in line with government advice. Whittard initiated a phased reopening of its stores starting from 19 June 2020. The disruption in the retail channel was partially mitigated by a significant increase in the businesss ecommerce platform.

-- David Phillips performance was encouraging in the period, with the business benefitting from a well-developed sales pipeline at the start of the disruption. In response to the spread of COVID-19 and reduced activity in the UK property sector, the business initially suspended parts of its trading operations. As restrictions eased, these divisions resumed trading and are expected to make up some of their lost sales in the balance of the year.

-- Pharmacy2U performed well over the period as consumers sought online alternatives to physical pharmacies. This shift in consumer behaviour delivered a signi cant increase in both patient numbers and sales over the period.

-- As at 31 July 2020, the Companys portfolio was valued at a weighted average EBITDA to enterprise value multiple of 8.9x (excluding Pharmacy2U, which is valued on a sales multiple) and had a low level of third-party leverage with net debt at 0.6x EBITDA in aggregate.

-- Subsequent to the review period, on 1 September 2020, the Company completed a GBP1.9 million investment into Atlantic Credit Opportunities Fund ("ACOF"), a commingled distressed credit fund which, subject to regulatory approval, will be managed by a subsidiary of the Investment Advisor, EPIC Private Equity LLP. The Companys investment in ACOF will provide ESO with the opportunity to generate uncorrelated returns through exposure to the significant dislocations in credit markets caused by the COVID-19 pandemic.

-- The Company has GBP3.9 million of outstanding unsecured loan notes repayable in July 2022. The Company has no other third party debt outstanding.

-- The Board continues to review new investment opportunities identified by the IA. The Companys strong cash position and the financial stability of the portfolio means that it is well positioned to take advantage of attractive opportunities, such as the Companys GBP1.9 million investment in Atlantic Credit Opportunities Fund , completed on 1 September 2020.

Mr Clive Spears, Chairman, commented: "The performance of EPE Special Opportunities in the six months ending 31 July 2020 was encouraging, supported by early measures taken to protect the Company, the portfolio and our colleagues in the face of unprecedented circumstances. The Board maintains a cautious outlook for the balance of the year, given the ongoing uncertainty surrounding the COVID-19 pandemic. I would like to take the opportunity to thank the Investment Advisor, EPIC Private Equity, for their hard work and dedication in guiding the Company through the disruption caused by the COVID-19 pandemic which leaves it well positioned for the future. I would also like to wish all shareholders and stakeholders across the portfolio the best of health."

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) Limited   +44 (0) 15 3488 5200) 
                                                    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 
 

Chairmans Statement

The performance of the Company for the six months ended 31 July 2020 was encouraging in the context of the generalised disruption caused by COVID-19, with the Companys portfolio demonstrating resilience to acute economic headwinds. The Board, Investment Advisor (the "IA") and the management of the portfolio companies took early and prudent steps to safeguard the financial position of the Company and its investments, and to protect the wellbeing of colleagues across the portfolio. The Board and IA continue to carefully monitor the outlook for the UK economy as the threat of a second wave of COVID-19 infection remains high.

Measures adopted to delay the spread of COVID-19 depressed economic activity in the second quarter of 2020 and, although western European economies are slowly reopening, the outlook remains uncertain in the medium term. The Company maintains strong liquidity of GBP23.3 million and operates with modest committed outgoings. The Company has GBP3.9 million of outstanding unsecured loan notes ("ULNs") repayable on 25 July 2022. The Company has no other third party debt outstanding. The Board has reviewed the business continuity plans of the Companys key operational service providers and is satis ed of their resilience, which has been demonstrated by all service providers through the lockdown period.

The IA worked closely with the management of portfolio companies to respond to the lockdown quickly and effectively, taking early and prudent steps to manage their liquidity and nancial position. The portfolio has a low level of third party leverage (with net debt at 0.6x last 12 month EBITDA in aggregate) and has strong relationships with all external lenders.

The Net Asset Value ("NAV") per share of the Company as at 31 July 2020 was 303.04 pence per share, representing a decrease of 4.5 per cent. on the NAV per share of 317.18 pence as at 31 January 2020. The share price of the Company as at 31 January 2020 was 175.00 pence, representing a decrease of 12.1 per cent. on the share price of 199.00 pence as at 31 January 2020.

Luceco plcs share price was flat in the period, as the business delivered a steady performance despite adverse circumstances. Luceco plcs share price subsequently increased by c.30 per cent. in August following the release of a trading update announcing performance ahead of market expectations. Luceco plc reported operating profit for the interim period to 30 June 2020 ahead of the same period in 2019 despite reduced sales. Positive cash generation during the period led to a further reduction in the businesss net debt to 0.8x last 12 month EBITDA. Luceco plc announced the reinstatement of dividends at the interim stage.

Whittard of Chelsea ("Whittard") faced significant challenges during the period, temporarily closing its retail stores on 21 March 2020 in the interests of employee safety and in line with government advice. The businesss ecommerce channel traded ahead of prior years and budget, partially mitigating the impact of the disruption. Whittard initiated a phased reopening of its stores starting from 19 June 2020. The business continues to review its xed and variable costs and has bene tted from the government schemes regarding furloughing, business rates and other taxation. The business has no third party debt.

(MORE TO FOLLOW) Dow Jones Newswires

September 08, 2020 02:16 ET (06:16 GMT)

DJ EPE Special Opportunities Limited Interim Review and Unaudited Financial Statements

TIDMESO TIDMEO.P TIDMEC.P TIDMEL.P

RNS Number : 3252Y

EPE Special Opportunities Limited

08 September 2020

EPE Special Opportunities Limited

("ESO" or the "Company")

Interim Review and Unaudited Financial Statements for the six months ended 31 July 2020

The Board of EPE Special Opportunities are pleased to announce the Companys Interim Review and Unaudited Financial Statements for the six months ended 31 July 2020.

Summary

-- The performance of the Company for the six months ended 31 July 2020 was encouraging in the context of the generalised disruption caused by COVID-19, with the Companys portfolio demonstrating resilience to acute economic headwinds. The Board and the Investment Advisor (the "IA") continue to carefully monitor the outlook for the UK economy as the threat of a second wave of COVID-19 infections remains high.

-- The Board, IA and the management of the portfolio companies took early and prudent steps to safeguard the financial position of the Company and its investments, and to protect the wellbeing of colleagues across the portfolio.

-- The Company maintains strong liquidity of GBP23.3 million which is available to support the existing portfolio, meet the Companys committed obligations and to deploy capital into sufficiently attractive investment opportunities as they arise.

-- The Net Asset Value ("NAV") of the Company as at 31 July 2020 was 303.04 pence per share, a decrease of 4.5 per cent on the NAV per share of 317.18 pence as at 31 January 2020. The small reduction in the Companys NAV per share has been driven primarily by the decline in value of the Companys unquoted assets, reflecting the impact of the COVID-19 pandemic.

-- The share price as at 31 July 2020 was 175.00 pence, representing a decrease of 12.1 per cent on the share price of 199.00 pence as at 31 January 2020.

-- Luceco plcs share price remained flat over the period. Luceco plcs share price subsequently increased by c.30 per cent. in August following the release of a trading update announcing performance ahead of market expectations. The business delivered operating profit for the interim period to 30 June 2020 ahead of the prior year despite reduced sales. Positive cash generation during the period led to a further reduction in the businesss net debt to 0.8x last 12 month EBITDA and allowed for the reinstatement of the interim dividend.

-- Whittard of Chelsea experienced challenging trading conditions, with UK retail stores closed in the interests of employee safety and in line with government advice. Whittard initiated a phased reopening of its stores starting from 19 June 2020. The disruption in the retail channel was partially mitigated by a significant increase in the businesss ecommerce platform.

-- David Phillips performance was encouraging in the period, with the business benefitting from a well-developed sales pipeline at the start of the disruption. In response to the spread of COVID-19 and reduced activity in the UK property sector, the business initially suspended parts of its trading operations. As restrictions eased, these divisions resumed trading and are expected to make up some of their lost sales in the balance of the year.

-- Pharmacy2U performed well over the period as consumers sought online alternatives to physical pharmacies. This shift in consumer behaviour delivered a signi cant increase in both patient numbers and sales over the period.

-- As at 31 July 2020, the Companys portfolio was valued at a weighted average EBITDA to enterprise value multiple of 8.9x (excluding Pharmacy2U, which is valued on a sales multiple) and had a low level of third-party leverage with net debt at 0.6x EBITDA in aggregate.

-- Subsequent to the review period, on 1 September 2020, the Company completed a GBP1.9 million investment into Atlantic Credit Opportunities Fund ("ACOF"), a commingled distressed credit fund which, subject to regulatory approval, will be managed by a subsidiary of the Investment Advisor, EPIC Private Equity LLP. The Companys investment in ACOF will provide ESO with the opportunity to generate uncorrelated returns through exposure to the significant dislocations in credit markets caused by the COVID-19 pandemic.

-- The Company has GBP3.9 million of outstanding unsecured loan notes repayable in July 2022. The Company has no other third party debt outstanding.

-- The Board continues to review new investment opportunities identified by the IA. The Companys strong cash position and the financial stability of the portfolio means that it is well positioned to take advantage of attractive opportunities, such as the Companys GBP1.9 million investment in Atlantic Credit Opportunities Fund , completed on 1 September 2020.

Mr Clive Spears, Chairman, commented: "The performance of EPE Special Opportunities in the six months ending 31 July 2020 was encouraging, supported by early measures taken to protect the Company, the portfolio and our colleagues in the face of unprecedented circumstances. The Board maintains a cautious outlook for the balance of the year, given the ongoing uncertainty surrounding the COVID-19 pandemic. I would like to take the opportunity to thank the Investment Advisor, EPIC Private Equity, for their hard work and dedication in guiding the Company through the disruption caused by the COVID-19 pandemic which leaves it well positioned for the future. I would also like to wish all shareholders and stakeholders across the portfolio the best of health."

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) Limited   +44 (0) 15 3488 5200) 
                                                    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 
 

Chairmans Statement

The performance of the Company for the six months ended 31 July 2020 was encouraging in the context of the generalised disruption caused by COVID-19, with the Companys portfolio demonstrating resilience to acute economic headwinds. The Board, Investment Advisor (the "IA") and the management of the portfolio companies took early and prudent steps to safeguard the financial position of the Company and its investments, and to protect the wellbeing of colleagues across the portfolio. The Board and IA continue to carefully monitor the outlook for the UK economy as the threat of a second wave of COVID-19 infection remains high.

Measures adopted to delay the spread of COVID-19 depressed economic activity in the second quarter of 2020 and, although western European economies are slowly reopening, the outlook remains uncertain in the medium term. The Company maintains strong liquidity of GBP23.3 million and operates with modest committed outgoings. The Company has GBP3.9 million of outstanding unsecured loan notes ("ULNs") repayable on 25 July 2022. The Company has no other third party debt outstanding. The Board has reviewed the business continuity plans of the Companys key operational service providers and is satis ed of their resilience, which has been demonstrated by all service providers through the lockdown period.

The IA worked closely with the management of portfolio companies to respond to the lockdown quickly and effectively, taking early and prudent steps to manage their liquidity and nancial position. The portfolio has a low level of third party leverage (with net debt at 0.6x last 12 month EBITDA in aggregate) and has strong relationships with all external lenders.

The Net Asset Value ("NAV") per share of the Company as at 31 July 2020 was 303.04 pence per share, representing a decrease of 4.5 per cent. on the NAV per share of 317.18 pence as at 31 January 2020. The share price of the Company as at 31 January 2020 was 175.00 pence, representing a decrease of 12.1 per cent. on the share price of 199.00 pence as at 31 January 2020.

Luceco plcs share price was flat in the period, as the business delivered a steady performance despite adverse circumstances. Luceco plcs share price subsequently increased by c.30 per cent. in August following the release of a trading update announcing performance ahead of market expectations. Luceco plc reported operating profit for the interim period to 30 June 2020 ahead of the same period in 2019 despite reduced sales. Positive cash generation during the period led to a further reduction in the businesss net debt to 0.8x last 12 month EBITDA. Luceco plc announced the reinstatement of dividends at the interim stage.

Whittard of Chelsea ("Whittard") faced significant challenges during the period, temporarily closing its retail stores on 21 March 2020 in the interests of employee safety and in line with government advice. The businesss ecommerce channel traded ahead of prior years and budget, partially mitigating the impact of the disruption. Whittard initiated a phased reopening of its stores starting from 19 June 2020. The business continues to review its xed and variable costs and has bene tted from the government schemes regarding furloughing, business rates and other taxation. The business has no third party debt.

(MORE TO FOLLOW) Dow Jones Newswires

September 08, 2020 02:16 ET (06:16 GMT)

DJ EPE Special Opportunities Limited Interim Review and Unaudited Financial Statements

TIDMESO TIDMEO.P TIDMEC.P TIDMEL.P

RNS Number : 3252Y

EPE Special Opportunities Limited

08 September 2020

EPE Special Opportunities Limited

("ESO" or the "Company")

Interim Review and Unaudited Financial Statements for the six months ended 31 July 2020

The Board of EPE Special Opportunities are pleased to announce the Companys Interim Review and Unaudited Financial Statements for the six months ended 31 July 2020.

Summary

-- The performance of the Company for the six months ended 31 July 2020 was encouraging in the context of the generalised disruption caused by COVID-19, with the Companys portfolio demonstrating resilience to acute economic headwinds. The Board and the Investment Advisor (the "IA") continue to carefully monitor the outlook for the UK economy as the threat of a second wave of COVID-19 infections remains high.

-- The Board, IA and the management of the portfolio companies took early and prudent steps to safeguard the financial position of the Company and its investments, and to protect the wellbeing of colleagues across the portfolio.

-- The Company maintains strong liquidity of GBP23.3 million which is available to support the existing portfolio, meet the Companys committed obligations and to deploy capital into sufficiently attractive investment opportunities as they arise.

-- The Net Asset Value ("NAV") of the Company as at 31 July 2020 was 303.04 pence per share, a decrease of 4.5 per cent on the NAV per share of 317.18 pence as at 31 January 2020. The small reduction in the Companys NAV per share has been driven primarily by the decline in value of the Companys unquoted assets, reflecting the impact of the COVID-19 pandemic.

-- The share price as at 31 July 2020 was 175.00 pence, representing a decrease of 12.1 per cent on the share price of 199.00 pence as at 31 January 2020.

-- Luceco plcs share price remained flat over the period. Luceco plcs share price subsequently increased by c.30 per cent. in August following the release of a trading update announcing performance ahead of market expectations. The business delivered operating profit for the interim period to 30 June 2020 ahead of the prior year despite reduced sales. Positive cash generation during the period led to a further reduction in the businesss net debt to 0.8x last 12 month EBITDA and allowed for the reinstatement of the interim dividend.

-- Whittard of Chelsea experienced challenging trading conditions, with UK retail stores closed in the interests of employee safety and in line with government advice. Whittard initiated a phased reopening of its stores starting from 19 June 2020. The disruption in the retail channel was partially mitigated by a significant increase in the businesss ecommerce platform.

-- David Phillips performance was encouraging in the period, with the business benefitting from a well-developed sales pipeline at the start of the disruption. In response to the spread of COVID-19 and reduced activity in the UK property sector, the business initially suspended parts of its trading operations. As restrictions eased, these divisions resumed trading and are expected to make up some of their lost sales in the balance of the year.

-- Pharmacy2U performed well over the period as consumers sought online alternatives to physical pharmacies. This shift in consumer behaviour delivered a signi cant increase in both patient numbers and sales over the period.

-- As at 31 July 2020, the Companys portfolio was valued at a weighted average EBITDA to enterprise value multiple of 8.9x (excluding Pharmacy2U, which is valued on a sales multiple) and had a low level of third-party leverage with net debt at 0.6x EBITDA in aggregate.

-- Subsequent to the review period, on 1 September 2020, the Company completed a GBP1.9 million investment into Atlantic Credit Opportunities Fund ("ACOF"), a commingled distressed credit fund which, subject to regulatory approval, will be managed by a subsidiary of the Investment Advisor, EPIC Private Equity LLP. The Companys investment in ACOF will provide ESO with the opportunity to generate uncorrelated returns through exposure to the significant dislocations in credit markets caused by the COVID-19 pandemic.

-- The Company has GBP3.9 million of outstanding unsecured loan notes repayable in July 2022. The Company has no other third party debt outstanding.

-- The Board continues to review new investment opportunities identified by the IA. The Companys strong cash position and the financial stability of the portfolio means that it is well positioned to take advantage of attractive opportunities, such as the Companys GBP1.9 million investment in Atlantic Credit Opportunities Fund , completed on 1 September 2020.

Mr Clive Spears, Chairman, commented: "The performance of EPE Special Opportunities in the six months ending 31 July 2020 was encouraging, supported by early measures taken to protect the Company, the portfolio and our colleagues in the face of unprecedented circumstances. The Board maintains a cautious outlook for the balance of the year, given the ongoing uncertainty surrounding the COVID-19 pandemic. I would like to take the opportunity to thank the Investment Advisor, EPIC Private Equity, for their hard work and dedication in guiding the Company through the disruption caused by the COVID-19 pandemic which leaves it well positioned for the future. I would also like to wish all shareholders and stakeholders across the portfolio the best of health."

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) Limited   +44 (0) 15 3488 5200) 
                                                    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 
 

Chairmans Statement

The performance of the Company for the six months ended 31 July 2020 was encouraging in the context of the generalised disruption caused by COVID-19, with the Companys portfolio demonstrating resilience to acute economic headwinds. The Board, Investment Advisor (the "IA") and the management of the portfolio companies took early and prudent steps to safeguard the financial position of the Company and its investments, and to protect the wellbeing of colleagues across the portfolio. The Board and IA continue to carefully monitor the outlook for the UK economy as the threat of a second wave of COVID-19 infection remains high.

Measures adopted to delay the spread of COVID-19 depressed economic activity in the second quarter of 2020 and, although western European economies are slowly reopening, the outlook remains uncertain in the medium term. The Company maintains strong liquidity of GBP23.3 million and operates with modest committed outgoings. The Company has GBP3.9 million of outstanding unsecured loan notes ("ULNs") repayable on 25 July 2022. The Company has no other third party debt outstanding. The Board has reviewed the business continuity plans of the Companys key operational service providers and is satis ed of their resilience, which has been demonstrated by all service providers through the lockdown period.

The IA worked closely with the management of portfolio companies to respond to the lockdown quickly and effectively, taking early and prudent steps to manage their liquidity and nancial position. The portfolio has a low level of third party leverage (with net debt at 0.6x last 12 month EBITDA in aggregate) and has strong relationships with all external lenders.

The Net Asset Value ("NAV") per share of the Company as at 31 July 2020 was 303.04 pence per share, representing a decrease of 4.5 per cent. on the NAV per share of 317.18 pence as at 31 January 2020. The share price of the Company as at 31 January 2020 was 175.00 pence, representing a decrease of 12.1 per cent. on the share price of 199.00 pence as at 31 January 2020.

Luceco plcs share price was flat in the period, as the business delivered a steady performance despite adverse circumstances. Luceco plcs share price subsequently increased by c.30 per cent. in August following the release of a trading update announcing performance ahead of market expectations. Luceco plc reported operating profit for the interim period to 30 June 2020 ahead of the same period in 2019 despite reduced sales. Positive cash generation during the period led to a further reduction in the businesss net debt to 0.8x last 12 month EBITDA. Luceco plc announced the reinstatement of dividends at the interim stage.

Whittard of Chelsea ("Whittard") faced significant challenges during the period, temporarily closing its retail stores on 21 March 2020 in the interests of employee safety and in line with government advice. The businesss ecommerce channel traded ahead of prior years and budget, partially mitigating the impact of the disruption. Whittard initiated a phased reopening of its stores starting from 19 June 2020. The business continues to review its xed and variable costs and has bene tted from the government schemes regarding furloughing, business rates and other taxation. The business has no third party debt.

(MORE TO FOLLOW) Dow Jones Newswires

September 08, 2020 02:16 ET (06:16 GMT)

DJ EPE Special Opportunities Limited Interim Review -2-

David Phillips performance was encouraging in the period, with the business benefitting from a well-developed sales pipeline at the start of the disruption. In response to the spread of COVID-19 and reduced activity in the UK property sector, the business initially suspended parts of its trading operations. As restrictions eased, these divisions resumed trading and are expected to make up some of their lost sales in the balance of the year. The business continues to review its xed and variable costs and has bene tted from the government schemes regarding furloughing, business rates and other taxation.

Pharmacy2U performed well over the period as consumers sought online alternatives to physical pharmacies. This shift in consumer behaviour delivered a signi cant increase in both patient numbers and sales over the period.

The Board continues to review new investment opportunities identi ed by the IA. The Companys strong cash position and the financial stability of the portfolio means that it is well positioned to take advantage of any such opportunities.

Sub sequent to the review per i od, on 1 Septem ber 2 0 20, the C ompany co m pleted a GBP 1.9 million investment into Atlantic C redit Oppor t unities Fund ( "ACOF"), a commin gled distressed credit fund which, subject to regulatory approval, will be managed by a subsidiary of the Investment Advisor, EPIC Private Equity LLP. T h e C omp a n ys investment in ACOF will provide ESO with the opp o rtunity to gen e rate un c o rrelated retu r ns thr o ugh e x p o s ure to the sign i ficant dislocations in credit mar kets cau sed by the C OVID-19 pan demic.

I would like to take the oppor t unity to thank the I n vestment Advis or, EPIC Private Equity, for their hard wo rk and dedication in g uiding the C o m pany th r ou gh the dis r u ption ca u sed by the COVI D -19 pand e mic which leaves it well po sitioned for the futur e. I wo uld also like to wish all s har e h olders and stakeh olders ac r o ss the portf olio the best of health.

C live Spears

C h airman

   8   September  20 20 
   Investment   Advisors Report 

In the six months ended 31 July 2020 the Investment Advisors efforts have been focused on mitigating the impact of the economic disruption caused by the COVID-19 pandemic on the Company and its portfolio. Social distancing measures and the resultant recession in the UK and globally continue to depress sales demand across the portfolio. Despite this, the portfolio as a whole has shown pleasing resilience. The IA and the Board are closely monitoring the dynamic situation and are mindful of the risks to the safety of our colleagues and the financial position of the Company and its investments presented by a potential second wave of infections.

The Company was well positioned at the start of the period with strong liquidity and prudent levels of third party leverage. That position has been maintained through the period with net debt in the underlying portfolio at 0.6x last 12 month EBITDA in aggregate. The Company has current cash balances of GBP23.3 million (as at 31 July 2020) which is available to support the existing portfolio, meet the Companys committed obligations and deploy into sufficiently attractive investment opportunities as they arise.

The Company

The Net Asset Value ("NAV") per share of the Company as at 31 July 2020 was 303.04 pence per share, representing a decrease of 4.5 per cent. on the NAV per share of 317.18 pence as at 31 January 2020. The share price of the Company as at 31 July 2020 was 175.00 pence, representing a decrease of 12.1 per cent. on the share price of 199.00 pence as at 31 January 2020.

The Portfolio

The Companys portfolio is valued at a weighted average enterprise value to EBITDA multiple of 8.9x for mature assets (excluding assets investing for growth). The valuation has been derived by reference to relevant quoted comparables, after the application of an appropriate discount to adjust for the portfolios scale and unquoted nature (i.e. an illiquidity discount). Given the use of quoted comparables, the valuation reflects the fair value of assets as at the balance sheet date. The IA notes that the fair market value of the portfolio remains exposed to the volatile macro environment.

The share price of Luceco plc as at 31 July 2020 was 140.80 pence, in line with the beginning of period. Luceco plcs share price subsequently increased by c.30 per cent. in August following the release of a trading update announcing performance ahead of market expectations. On 8 September 2020, Luceco released its interim results for the six months ended 30 June 2020. The business delivered an adjusted operating profit of GBP9.0 million, GBP1.8 million ahead of the prior year despite a 13.4 per cent year-on-year reduction in sales due to reduced consumer demand. Notably, Luceco plc generated adjusted free cash flow of GBP10.2 million in the period (GBP5.1 million ahead of the prior year), which facilitated a further reduction in net debt to 0.8x last 12 month EBITDA. In addition, dividends were reinstated at the interim stage, including payment of dividends prudently suspended earlier in the year.

Whittard of Chelsea ("Whittard") has experienced unprecedented challenges since the start of the COVID-19 pandemic, with the closure of its UK retail estate resulting in sales for the period below budget and the prior year. The retail closure was partially mitigated by significant outperformance in Whittards ecommerce platform against budget and the prior year, in line with the accelerated shift of consumer spending to online observed in the wider UK retail sector since the beginning of the pandemic. The business initiated a phased re-opening of its store estate from 19 June 2020. Despite this, sales performance is expected to be impacted throughout the remainder of the year as a result of reduced consumer and tourist footfall. The IA is particularly mindful of the impact any second wave of the virus could have on the seasonal peak, consumer sentiment and government restrictions on physical trading.

David Phillips performance was encouraging in the period, with the business benefitting from a well-developed sales pipeline at the start of the disruption. The historic focus of management and the IA on improving the financial resilience and operational flexibility of the business during the turnaround phase meant that David Phillips was well positioned for the macro disruption caused by COVID-19. In response to the resultant reduction in activity in the UK property sector, the business initially suspended parts of its trading operations and benefitted from available gov er nment s up p ort (includ i ng the C oronavir us J ob Retention Scheme). As restrictions ea sed, these divisions resumed tra ding and are ex p ected to make up s ome of their lo st sales in the balance of t he yea r. T he IA and t he management team are clo sely monitoring the pr o perty m ar ket to be able to respo nd to s y stemic market changes bro u ght about by the COVID-19 crisis. The IA believes the bu siness is well placed to take advantage of these trends given its div e r sified cu stomer base which en c ompasses both private la ndlo r ds and the in stitutional residential prop e rty market.

Pharmacy2U performed well over the period. As the UKs leading online pharmacy, the business has benefitted from the need for online alternatives to physical pharmacies, which has delivered a signi cant increase in both patient numbers and sales since social distancing measures were implemented. Development of a new distribution facility in Leicestershire is expected to underpin the next stage of growth.

The IA co ntinues to m onitor the C ompan ys investment in Eu r opean Capital Private Debt Fund, w hich has completed the dep l oyment of the C ompanys committed ca pital in the fund and has begun to distribute capital to the C ompany.

The IA continues to review opp o rtunities to deploy capital into new investments, with the challenging mac ro enviro n ment generating an increa se in the n umber of well- priced op p ortunities. T his trend is ex pected to c ontin ue in the coming months as g overnment su p port is un w ou n d, precipitating r e quirem e nts for external f u ndin g.

Sub sequent to t he review per i od, on 1 September 20 2 0, the C ompany c ompleted a GBP 1.9 million investment into Atlantic C redit Opportu nities Fund ( "ACOF"), a commingled distressed credit fu n d which, subject to regulatory approval, will be managed by a subsidiary of the Investment Advisor, EPIC Private Equity LLP. The C ompan ys investment in ACOF will provide ESO with the o pp o rtunity to g e nerate un c orrelated retu r ns thro u gh ex po s ure to the significant dislocations in credit mar kets cau sed by the COVI D -19 pan demic.

The IA would like to e xpress gratitude to the man a gement a nd emp l oyees of the p ortfolio companies f or their hard work, d e dication and resp o n siveness during t his unprec e d e nted perio d. The IA is also g rateful f or the co ntinued s upport a nd co un sel of the B oard and the C omp a nys s hareh older s.

EPIC Private Equity LLP

Investment Advisor to the Company

8 September 2020

(MORE TO FOLLOW) Dow Jones Newswires

September 08, 2020 02:16 ET (06:16 GMT)

DJ EPE Special Opportunities Limited Interim Review -2-

David Phillips performance was encouraging in the period, with the business benefitting from a well-developed sales pipeline at the start of the disruption. In response to the spread of COVID-19 and reduced activity in the UK property sector, the business initially suspended parts of its trading operations. As restrictions eased, these divisions resumed trading and are expected to make up some of their lost sales in the balance of the year. The business continues to review its xed and variable costs and has bene tted from the government schemes regarding furloughing, business rates and other taxation.

Pharmacy2U performed well over the period as consumers sought online alternatives to physical pharmacies. This shift in consumer behaviour delivered a signi cant increase in both patient numbers and sales over the period.

The Board continues to review new investment opportunities identi ed by the IA. The Companys strong cash position and the financial stability of the portfolio means that it is well positioned to take advantage of any such opportunities.

Sub sequent to the review per i od, on 1 Septem ber 2 0 20, the C ompany co m pleted a GBP 1.9 million investment into Atlantic C redit Oppor t unities Fund ( "ACOF"), a commin gled distressed credit fund which, subject to regulatory approval, will be managed by a subsidiary of the Investment Advisor, EPIC Private Equity LLP. T h e C omp a n ys investment in ACOF will provide ESO with the opp o rtunity to gen e rate un c o rrelated retu r ns thr o ugh e x p o s ure to the sign i ficant dislocations in credit mar kets cau sed by the C OVID-19 pan demic.

I would like to take the oppor t unity to thank the I n vestment Advis or, EPIC Private Equity, for their hard wo rk and dedication in g uiding the C o m pany th r ou gh the dis r u ption ca u sed by the COVI D -19 pand e mic which leaves it well po sitioned for the futur e. I wo uld also like to wish all s har e h olders and stakeh olders ac r o ss the portf olio the best of health.

C live Spears

C h airman

   8   September  20 20 
   Investment   Advisors Report 

In the six months ended 31 July 2020 the Investment Advisors efforts have been focused on mitigating the impact of the economic disruption caused by the COVID-19 pandemic on the Company and its portfolio. Social distancing measures and the resultant recession in the UK and globally continue to depress sales demand across the portfolio. Despite this, the portfolio as a whole has shown pleasing resilience. The IA and the Board are closely monitoring the dynamic situation and are mindful of the risks to the safety of our colleagues and the financial position of the Company and its investments presented by a potential second wave of infections.

The Company was well positioned at the start of the period with strong liquidity and prudent levels of third party leverage. That position has been maintained through the period with net debt in the underlying portfolio at 0.6x last 12 month EBITDA in aggregate. The Company has current cash balances of GBP23.3 million (as at 31 July 2020) which is available to support the existing portfolio, meet the Companys committed obligations and deploy into sufficiently attractive investment opportunities as they arise.

The Company

The Net Asset Value ("NAV") per share of the Company as at 31 July 2020 was 303.04 pence per share, representing a decrease of 4.5 per cent. on the NAV per share of 317.18 pence as at 31 January 2020. The share price of the Company as at 31 July 2020 was 175.00 pence, representing a decrease of 12.1 per cent. on the share price of 199.00 pence as at 31 January 2020.

The Portfolio

The Companys portfolio is valued at a weighted average enterprise value to EBITDA multiple of 8.9x for mature assets (excluding assets investing for growth). The valuation has been derived by reference to relevant quoted comparables, after the application of an appropriate discount to adjust for the portfolios scale and unquoted nature (i.e. an illiquidity discount). Given the use of quoted comparables, the valuation reflects the fair value of assets as at the balance sheet date. The IA notes that the fair market value of the portfolio remains exposed to the volatile macro environment.

The share price of Luceco plc as at 31 July 2020 was 140.80 pence, in line with the beginning of period. Luceco plcs share price subsequently increased by c.30 per cent. in August following the release of a trading update announcing performance ahead of market expectations. On 8 September 2020, Luceco released its interim results for the six months ended 30 June 2020. The business delivered an adjusted operating profit of GBP9.0 million, GBP1.8 million ahead of the prior year despite a 13.4 per cent year-on-year reduction in sales due to reduced consumer demand. Notably, Luceco plc generated adjusted free cash flow of GBP10.2 million in the period (GBP5.1 million ahead of the prior year), which facilitated a further reduction in net debt to 0.8x last 12 month EBITDA. In addition, dividends were reinstated at the interim stage, including payment of dividends prudently suspended earlier in the year.

Whittard of Chelsea ("Whittard") has experienced unprecedented challenges since the start of the COVID-19 pandemic, with the closure of its UK retail estate resulting in sales for the period below budget and the prior year. The retail closure was partially mitigated by significant outperformance in Whittards ecommerce platform against budget and the prior year, in line with the accelerated shift of consumer spending to online observed in the wider UK retail sector since the beginning of the pandemic. The business initiated a phased re-opening of its store estate from 19 June 2020. Despite this, sales performance is expected to be impacted throughout the remainder of the year as a result of reduced consumer and tourist footfall. The IA is particularly mindful of the impact any second wave of the virus could have on the seasonal peak, consumer sentiment and government restrictions on physical trading.

David Phillips performance was encouraging in the period, with the business benefitting from a well-developed sales pipeline at the start of the disruption. The historic focus of management and the IA on improving the financial resilience and operational flexibility of the business during the turnaround phase meant that David Phillips was well positioned for the macro disruption caused by COVID-19. In response to the resultant reduction in activity in the UK property sector, the business initially suspended parts of its trading operations and benefitted from available gov er nment s up p ort (includ i ng the C oronavir us J ob Retention Scheme). As restrictions ea sed, these divisions resumed tra ding and are ex p ected to make up s ome of their lo st sales in the balance of t he yea r. T he IA and t he management team are clo sely monitoring the pr o perty m ar ket to be able to respo nd to s y stemic market changes bro u ght about by the COVID-19 crisis. The IA believes the bu siness is well placed to take advantage of these trends given its div e r sified cu stomer base which en c ompasses both private la ndlo r ds and the in stitutional residential prop e rty market.

Pharmacy2U performed well over the period. As the UKs leading online pharmacy, the business has benefitted from the need for online alternatives to physical pharmacies, which has delivered a signi cant increase in both patient numbers and sales since social distancing measures were implemented. Development of a new distribution facility in Leicestershire is expected to underpin the next stage of growth.

The IA co ntinues to m onitor the C ompan ys investment in Eu r opean Capital Private Debt Fund, w hich has completed the dep l oyment of the C ompanys committed ca pital in the fund and has begun to distribute capital to the C ompany.

The IA continues to review opp o rtunities to deploy capital into new investments, with the challenging mac ro enviro n ment generating an increa se in the n umber of well- priced op p ortunities. T his trend is ex pected to c ontin ue in the coming months as g overnment su p port is un w ou n d, precipitating r e quirem e nts for external f u ndin g.

Sub sequent to t he review per i od, on 1 September 20 2 0, the C ompany c ompleted a GBP 1.9 million investment into Atlantic C redit Opportu nities Fund ( "ACOF"), a commingled distressed credit fu n d which, subject to regulatory approval, will be managed by a subsidiary of the Investment Advisor, EPIC Private Equity LLP. The C ompan ys investment in ACOF will provide ESO with the o pp o rtunity to g e nerate un c orrelated retu r ns thro u gh ex po s ure to the significant dislocations in credit mar kets cau sed by the COVI D -19 pan demic.

The IA would like to e xpress gratitude to the man a gement a nd emp l oyees of the p ortfolio companies f or their hard work, d e dication and resp o n siveness during t his unprec e d e nted perio d. The IA is also g rateful f or the co ntinued s upport a nd co un sel of the B oard and the C omp a nys s hareh older s.

EPIC Private Equity LLP

Investment Advisor to the Company

8 September 2020

(MORE TO FOLLOW) Dow Jones Newswires

September 08, 2020 02:16 ET (06:16 GMT)

DJ EPE Special Opportunities Limited Interim Review -2-

David Phillips performance was encouraging in the period, with the business benefitting from a well-developed sales pipeline at the start of the disruption. In response to the spread of COVID-19 and reduced activity in the UK property sector, the business initially suspended parts of its trading operations. As restrictions eased, these divisions resumed trading and are expected to make up some of their lost sales in the balance of the year. The business continues to review its xed and variable costs and has bene tted from the government schemes regarding furloughing, business rates and other taxation.

Pharmacy2U performed well over the period as consumers sought online alternatives to physical pharmacies. This shift in consumer behaviour delivered a signi cant increase in both patient numbers and sales over the period.

The Board continues to review new investment opportunities identi ed by the IA. The Companys strong cash position and the financial stability of the portfolio means that it is well positioned to take advantage of any such opportunities.

Sub sequent to the review per i od, on 1 Septem ber 2 0 20, the C ompany co m pleted a GBP 1.9 million investment into Atlantic C redit Oppor t unities Fund ( "ACOF"), a commin gled distressed credit fund which, subject to regulatory approval, will be managed by a subsidiary of the Investment Advisor, EPIC Private Equity LLP. T h e C omp a n ys investment in ACOF will provide ESO with the opp o rtunity to gen e rate un c o rrelated retu r ns thr o ugh e x p o s ure to the sign i ficant dislocations in credit mar kets cau sed by the C OVID-19 pan demic.

I would like to take the oppor t unity to thank the I n vestment Advis or, EPIC Private Equity, for their hard wo rk and dedication in g uiding the C o m pany th r ou gh the dis r u ption ca u sed by the COVI D -19 pand e mic which leaves it well po sitioned for the futur e. I wo uld also like to wish all s har e h olders and stakeh olders ac r o ss the portf olio the best of health.

C live Spears

C h airman

   8   September  20 20 
   Investment   Advisors Report 

In the six months ended 31 July 2020 the Investment Advisors efforts have been focused on mitigating the impact of the economic disruption caused by the COVID-19 pandemic on the Company and its portfolio. Social distancing measures and the resultant recession in the UK and globally continue to depress sales demand across the portfolio. Despite this, the portfolio as a whole has shown pleasing resilience. The IA and the Board are closely monitoring the dynamic situation and are mindful of the risks to the safety of our colleagues and the financial position of the Company and its investments presented by a potential second wave of infections.

The Company was well positioned at the start of the period with strong liquidity and prudent levels of third party leverage. That position has been maintained through the period with net debt in the underlying portfolio at 0.6x last 12 month EBITDA in aggregate. The Company has current cash balances of GBP23.3 million (as at 31 July 2020) which is available to support the existing portfolio, meet the Companys committed obligations and deploy into sufficiently attractive investment opportunities as they arise.

The Company

The Net Asset Value ("NAV") per share of the Company as at 31 July 2020 was 303.04 pence per share, representing a decrease of 4.5 per cent. on the NAV per share of 317.18 pence as at 31 January 2020. The share price of the Company as at 31 July 2020 was 175.00 pence, representing a decrease of 12.1 per cent. on the share price of 199.00 pence as at 31 January 2020.

The Portfolio

The Companys portfolio is valued at a weighted average enterprise value to EBITDA multiple of 8.9x for mature assets (excluding assets investing for growth). The valuation has been derived by reference to relevant quoted comparables, after the application of an appropriate discount to adjust for the portfolios scale and unquoted nature (i.e. an illiquidity discount). Given the use of quoted comparables, the valuation reflects the fair value of assets as at the balance sheet date. The IA notes that the fair market value of the portfolio remains exposed to the volatile macro environment.

The share price of Luceco plc as at 31 July 2020 was 140.80 pence, in line with the beginning of period. Luceco plcs share price subsequently increased by c.30 per cent. in August following the release of a trading update announcing performance ahead of market expectations. On 8 September 2020, Luceco released its interim results for the six months ended 30 June 2020. The business delivered an adjusted operating profit of GBP9.0 million, GBP1.8 million ahead of the prior year despite a 13.4 per cent year-on-year reduction in sales due to reduced consumer demand. Notably, Luceco plc generated adjusted free cash flow of GBP10.2 million in the period (GBP5.1 million ahead of the prior year), which facilitated a further reduction in net debt to 0.8x last 12 month EBITDA. In addition, dividends were reinstated at the interim stage, including payment of dividends prudently suspended earlier in the year.

Whittard of Chelsea ("Whittard") has experienced unprecedented challenges since the start of the COVID-19 pandemic, with the closure of its UK retail estate resulting in sales for the period below budget and the prior year. The retail closure was partially mitigated by significant outperformance in Whittards ecommerce platform against budget and the prior year, in line with the accelerated shift of consumer spending to online observed in the wider UK retail sector since the beginning of the pandemic. The business initiated a phased re-opening of its store estate from 19 June 2020. Despite this, sales performance is expected to be impacted throughout the remainder of the year as a result of reduced consumer and tourist footfall. The IA is particularly mindful of the impact any second wave of the virus could have on the seasonal peak, consumer sentiment and government restrictions on physical trading.

David Phillips performance was encouraging in the period, with the business benefitting from a well-developed sales pipeline at the start of the disruption. The historic focus of management and the IA on improving the financial resilience and operational flexibility of the business during the turnaround phase meant that David Phillips was well positioned for the macro disruption caused by COVID-19. In response to the resultant reduction in activity in the UK property sector, the business initially suspended parts of its trading operations and benefitted from available gov er nment s up p ort (includ i ng the C oronavir us J ob Retention Scheme). As restrictions ea sed, these divisions resumed tra ding and are ex p ected to make up s ome of their lo st sales in the balance of t he yea r. T he IA and t he management team are clo sely monitoring the pr o perty m ar ket to be able to respo nd to s y stemic market changes bro u ght about by the COVID-19 crisis. The IA believes the bu siness is well placed to take advantage of these trends given its div e r sified cu stomer base which en c ompasses both private la ndlo r ds and the in stitutional residential prop e rty market.

Pharmacy2U performed well over the period. As the UKs leading online pharmacy, the business has benefitted from the need for online alternatives to physical pharmacies, which has delivered a signi cant increase in both patient numbers and sales since social distancing measures were implemented. Development of a new distribution facility in Leicestershire is expected to underpin the next stage of growth.

The IA co ntinues to m onitor the C ompan ys investment in Eu r opean Capital Private Debt Fund, w hich has completed the dep l oyment of the C ompanys committed ca pital in the fund and has begun to distribute capital to the C ompany.

The IA continues to review opp o rtunities to deploy capital into new investments, with the challenging mac ro enviro n ment generating an increa se in the n umber of well- priced op p ortunities. T his trend is ex pected to c ontin ue in the coming months as g overnment su p port is un w ou n d, precipitating r e quirem e nts for external f u ndin g.

Sub sequent to t he review per i od, on 1 September 20 2 0, the C ompany c ompleted a GBP 1.9 million investment into Atlantic C redit Opportu nities Fund ( "ACOF"), a commingled distressed credit fu n d which, subject to regulatory approval, will be managed by a subsidiary of the Investment Advisor, EPIC Private Equity LLP. The C ompan ys investment in ACOF will provide ESO with the o pp o rtunity to g e nerate un c orrelated retu r ns thro u gh ex po s ure to the significant dislocations in credit mar kets cau sed by the COVI D -19 pan demic.

The IA would like to e xpress gratitude to the man a gement a nd emp l oyees of the p ortfolio companies f or their hard work, d e dication and resp o n siveness during t his unprec e d e nted perio d. The IA is also g rateful f or the co ntinued s upport a nd co un sel of the B oard and the C omp a nys s hareh older s.

EPIC Private Equity LLP

Investment Advisor to the Company

8 September 2020

(MORE TO FOLLOW) Dow Jones Newswires

September 08, 2020 02:16 ET (06:16 GMT)

DJ EPE Special Opportunities Limited Interim Review -3-

Biographies of the Directors

 
 Clive Spears                                      David Pirouet 
 Clive Spears retired from the Royal Bank          David Pirouet joined PricewaterhouseCoopers 
  of Scotland International Limited in              Channel Islands LLP in 1980, retiring 
  December 2003 as Deputy Director of Jersey        in 2009 after being an Audit and Assurance 
  after 32 years of service. His main activities    Partner for over 20 years. During his 
  prior to retirement included Product              29 years at the rm Mr Pirouet specialised 
  Development, Corporate Finance, Trust             in the nancial services sector, in particular 
  and Offshore Company Services and he              in the alternative investment management 
  was Head of Joint Venture Fund Administration     area and also led the businesss Hedge 
  with Rawlinson & Hunter. Mr Spears is             Fund and business recovery practices 
  an Associate of the Chartered Institute           for over four years. Mr Pirouet currently 
  of Bankers and a Member of the Chartered          holds a number of non-executive positions 
  Institute for Securities & Investment.            across private equity, infrastructure 
  He has accumulated a well spread portfolio        and corporate debt. Mr Pirouets appointments 
  of directorships centring on private              currently include non-executive Director 
  equity, infrastructure and corporate              and Chair of the Audit and Risk committee 
  debt. His current appointments include            for GCP Infrastructure Investments (FTSE 
  Chairman of Nordic Capital Limited and            250 listed company). 
  director of Invesco Enhanced Income Limited. 
                                                  ----------------------------------------------- 
 Heather Bestwick                                  Robert Quayle 
                                                  ----------------------------------------------- 
 Heather Bestwick has been a nancial services      Robert Quayle qualified as an English 
  professional for over 25 years, onshore           solicitor at Linklaters & Paines in 1974 
  in the City of London and offshore in             after reading law at Selwyn College, 
  the Cayman Islands and Jersey. She quali          Cambridge. He subsequently practiced 
  ed as an English solicitor, specialising          in London and the Isle of Man as a partner 
  in ship nance, with City rm Norton Rose,          in Travers Smith Braithwaite. He served 
  and worked in their London and Greek              as Clerk of Tynwald (the Isle of Mans 
  of ces for 8 years. Ms Bestwick subsequently      parliament) for periods totalling 12 
  practised and became a partner with global        years and holds a number of public and 
  offshore law rm Walkers in the Cayman             private appointments, and is active in 
  Islands, and Managing Partner of the              the voluntary sector. Mr. Quayle is a 
  Jersey of ce. Ms Bestwick sits on the             director of a number of companies in 
  boards of the manager of the Deutsche             the financial services and distribution 
  Bank dbX hedge fund platform and Rathbone         sectors. 
  Investment Management International Limited. 
                                                  ----------------------------------------------- 
 Nicholas Wilson 
 Nicholas Wilson has over 40 years of 
  experience in hedge funds, derivatives 
  and global asset management. He has run 
  offshore branch operations for Mees Pierson 
  Derivatives Limited, ADM Investor Services 
  International Limited and several other 
  London based financial services companies. 
  He is Chairman of Gulf Investment Fund 
  plc, a premium listed company, and, until 
  recently, was chairman of Alternative 
  Investment Strategies Limited. He is 
  a resident of the Isle of Man. 
 

Biographies of the Investment Advisor

 
 Giles Brand                                          Hiren Patel 
 Giles Brand is a Partner and the founder             Hiren Patel is the Managing Director 
  of EPE. He is currently the Non-executive            of EPE Administration and is a 
  Chairman of Whittard of Chelsea and Luceco           Partner and the Finance Director 
  plc, and Non-executive Director of the               and Compliance Officer of EPE. 
  Reader Organisation, a not-for-profit                He has worked in the investment 
  educational charity. Before joining EPE,             management industry for the past 
  Giles was a founding Director of EPIC                twenty years. Before joining EPE 
  Investment Partners, a fund management               Administration, Hiren was Finance 
  business which at sale had US$5 billion              Director of EPIC Investment Partners. 
  under management. Prior to this, Giles               Prior to this, Hiren was employed 
  worked in Mergers and Acquisitions at                at Groupama Asset Management where 
  Baring Brothers in Paris and London. Giles           he was the Group Financial Controller. 
  read History at Bristol University. 
                                                     -------------------------------------------------- 
 Robert Fulford                                       James Henderson 
                                                     -------------------------------------------------- 
 Robert Fulford is an Investment Director             James Henderson is an Investment 
  of EPE. He previously worked at Barclaycard          Director at EPE. He previously 
  Consumer Europe before joining EPE. Whilst           worked in the Investment Banking 
  at Barclaycard, Robert was the Senior                division of Deutsche Bank before 
  Manager for Strategic Insight and was                joining EPE. Whilst at Deutsche 
  responsible for identifying, analysing               Bank he worked on a number of M&A 
  and responding to competitive forces.                transactions and IPOs in the energy, 
  Prior to Barclaycard, Robert spent four              property, retail and gaming sectors, 
  years as a strategy consultant at Oliver             as well as providing corporate 
  Wyman Financial Services, where he worked            broking advice to mandated clients. 
  with a range of major retail banking and             At EPE, James manages the investment 
  institutional clients in the UK, mainland            in Pharmacy2U. James read Modern 
  Europe, Middle East and Africa. At EPE               History at Oxford University and 
  Robert manages the investments in Whittard           Medicine at Nottingham University. 
  of Chelsea and David Philips. Robert read 
  Engineering at Cambridge University. 
                                                     -------------------------------------------------- 
 Alex Leslie                                          Ian Williams 
                                                     ------------------------------------------------ 
 Alex Leslie is an Investment Director                Ian Williams is an Investment Director 
  at EPE. He previously worked in Healthcare           at EPE. He was previously a Partner at 
  Investment Banking at Piper Jaffray before           Lyceum Capital Partner LLP responsible 
  joining EPE. Whilst at Piper Jaffray he              for deal origination and engagement, with 
  worked on a number of M&A transactions               a primary focus on the business services 
  and equity fundraisings within the Biotechnology,    and software sectors, as well as nancial 
  Specialty Pharmaceutical and Medical Technology      services, education and health sectors. 
  sectors. At EPE, Alex manages the investment         Prior to Lyceum, Ian was a Director at 
  in Luceco plc. Alex read Human Biological            Arbuthnot Securities, involved in transactions 
  and Social Sciences at Oxford University             including IPOs, secondary fund raisings 
  and obtained an MPhil in Management from             and M&A, focusing on the support services, 
  the Judge Business School at the Cambridge           healthcare, transport & IT sectors. Ian 
  University.                                          read Politics and Economics at the University 
                                                       of Bristol. 
                                                     ------------------------------------------------ 
 

Independent Review Report to EPE Special Opportunities Limited

Conclusion

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly report for the six months ended 31 July 2020 which comprises Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and the related explanatory notes.

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly report for the six months ended 31 July 2020 is not prepared, in all material respects, in accordance with IAS 34 Interim Financial Reporting as adopted by the EU and the AIM Rules.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. We read the other information contained in the half-yearly report and consider whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

(MORE TO FOLLOW) Dow Jones Newswires

September 08, 2020 02:16 ET (06:16 GMT)

DJ EPE Special Opportunities Limited Interim Review -3-

Biographies of the Directors

 
 Clive Spears                                      David Pirouet 
 Clive Spears retired from the Royal Bank          David Pirouet joined PricewaterhouseCoopers 
  of Scotland International Limited in              Channel Islands LLP in 1980, retiring 
  December 2003 as Deputy Director of Jersey        in 2009 after being an Audit and Assurance 
  after 32 years of service. His main activities    Partner for over 20 years. During his 
  prior to retirement included Product              29 years at the rm Mr Pirouet specialised 
  Development, Corporate Finance, Trust             in the nancial services sector, in particular 
  and Offshore Company Services and he              in the alternative investment management 
  was Head of Joint Venture Fund Administration     area and also led the businesss Hedge 
  with Rawlinson & Hunter. Mr Spears is             Fund and business recovery practices 
  an Associate of the Chartered Institute           for over four years. Mr Pirouet currently 
  of Bankers and a Member of the Chartered          holds a number of non-executive positions 
  Institute for Securities & Investment.            across private equity, infrastructure 
  He has accumulated a well spread portfolio        and corporate debt. Mr Pirouets appointments 
  of directorships centring on private              currently include non-executive Director 
  equity, infrastructure and corporate              and Chair of the Audit and Risk committee 
  debt. His current appointments include            for GCP Infrastructure Investments (FTSE 
  Chairman of Nordic Capital Limited and            250 listed company). 
  director of Invesco Enhanced Income Limited. 
                                                  ----------------------------------------------- 
 Heather Bestwick                                  Robert Quayle 
                                                  ----------------------------------------------- 
 Heather Bestwick has been a nancial services      Robert Quayle qualified as an English 
  professional for over 25 years, onshore           solicitor at Linklaters & Paines in 1974 
  in the City of London and offshore in             after reading law at Selwyn College, 
  the Cayman Islands and Jersey. She quali          Cambridge. He subsequently practiced 
  ed as an English solicitor, specialising          in London and the Isle of Man as a partner 
  in ship nance, with City rm Norton Rose,          in Travers Smith Braithwaite. He served 
  and worked in their London and Greek              as Clerk of Tynwald (the Isle of Mans 
  of ces for 8 years. Ms Bestwick subsequently      parliament) for periods totalling 12 
  practised and became a partner with global        years and holds a number of public and 
  offshore law rm Walkers in the Cayman             private appointments, and is active in 
  Islands, and Managing Partner of the              the voluntary sector. Mr. Quayle is a 
  Jersey of ce. Ms Bestwick sits on the             director of a number of companies in 
  boards of the manager of the Deutsche             the financial services and distribution 
  Bank dbX hedge fund platform and Rathbone         sectors. 
  Investment Management International Limited. 
                                                  ----------------------------------------------- 
 Nicholas Wilson 
 Nicholas Wilson has over 40 years of 
  experience in hedge funds, derivatives 
  and global asset management. He has run 
  offshore branch operations for Mees Pierson 
  Derivatives Limited, ADM Investor Services 
  International Limited and several other 
  London based financial services companies. 
  He is Chairman of Gulf Investment Fund 
  plc, a premium listed company, and, until 
  recently, was chairman of Alternative 
  Investment Strategies Limited. He is 
  a resident of the Isle of Man. 
 

Biographies of the Investment Advisor

 
 Giles Brand                                          Hiren Patel 
 Giles Brand is a Partner and the founder             Hiren Patel is the Managing Director 
  of EPE. He is currently the Non-executive            of EPE Administration and is a 
  Chairman of Whittard of Chelsea and Luceco           Partner and the Finance Director 
  plc, and Non-executive Director of the               and Compliance Officer of EPE. 
  Reader Organisation, a not-for-profit                He has worked in the investment 
  educational charity. Before joining EPE,             management industry for the past 
  Giles was a founding Director of EPIC                twenty years. Before joining EPE 
  Investment Partners, a fund management               Administration, Hiren was Finance 
  business which at sale had US$5 billion              Director of EPIC Investment Partners. 
  under management. Prior to this, Giles               Prior to this, Hiren was employed 
  worked in Mergers and Acquisitions at                at Groupama Asset Management where 
  Baring Brothers in Paris and London. Giles           he was the Group Financial Controller. 
  read History at Bristol University. 
                                                     -------------------------------------------------- 
 Robert Fulford                                       James Henderson 
                                                     -------------------------------------------------- 
 Robert Fulford is an Investment Director             James Henderson is an Investment 
  of EPE. He previously worked at Barclaycard          Director at EPE. He previously 
  Consumer Europe before joining EPE. Whilst           worked in the Investment Banking 
  at Barclaycard, Robert was the Senior                division of Deutsche Bank before 
  Manager for Strategic Insight and was                joining EPE. Whilst at Deutsche 
  responsible for identifying, analysing               Bank he worked on a number of M&A 
  and responding to competitive forces.                transactions and IPOs in the energy, 
  Prior to Barclaycard, Robert spent four              property, retail and gaming sectors, 
  years as a strategy consultant at Oliver             as well as providing corporate 
  Wyman Financial Services, where he worked            broking advice to mandated clients. 
  with a range of major retail banking and             At EPE, James manages the investment 
  institutional clients in the UK, mainland            in Pharmacy2U. James read Modern 
  Europe, Middle East and Africa. At EPE               History at Oxford University and 
  Robert manages the investments in Whittard           Medicine at Nottingham University. 
  of Chelsea and David Philips. Robert read 
  Engineering at Cambridge University. 
                                                     -------------------------------------------------- 
 Alex Leslie                                          Ian Williams 
                                                     ------------------------------------------------ 
 Alex Leslie is an Investment Director                Ian Williams is an Investment Director 
  at EPE. He previously worked in Healthcare           at EPE. He was previously a Partner at 
  Investment Banking at Piper Jaffray before           Lyceum Capital Partner LLP responsible 
  joining EPE. Whilst at Piper Jaffray he              for deal origination and engagement, with 
  worked on a number of M&A transactions               a primary focus on the business services 
  and equity fundraisings within the Biotechnology,    and software sectors, as well as nancial 
  Specialty Pharmaceutical and Medical Technology      services, education and health sectors. 
  sectors. At EPE, Alex manages the investment         Prior to Lyceum, Ian was a Director at 
  in Luceco plc. Alex read Human Biological            Arbuthnot Securities, involved in transactions 
  and Social Sciences at Oxford University             including IPOs, secondary fund raisings 
  and obtained an MPhil in Management from             and M&A, focusing on the support services, 
  the Judge Business School at the Cambridge           healthcare, transport & IT sectors. Ian 
  University.                                          read Politics and Economics at the University 
                                                       of Bristol. 
                                                     ------------------------------------------------ 
 

Independent Review Report to EPE Special Opportunities Limited

Conclusion

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly report for the six months ended 31 July 2020 which comprises Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and the related explanatory notes.

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly report for the six months ended 31 July 2020 is not prepared, in all material respects, in accordance with IAS 34 Interim Financial Reporting as adopted by the EU and the AIM Rules.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. We read the other information contained in the half-yearly report and consider whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

(MORE TO FOLLOW) Dow Jones Newswires

September 08, 2020 02:16 ET (06:16 GMT)

DJ EPE Special Opportunities Limited Interim Review -3-

Biographies of the Directors

 
 Clive Spears                                      David Pirouet 
 Clive Spears retired from the Royal Bank          David Pirouet joined PricewaterhouseCoopers 
  of Scotland International Limited in              Channel Islands LLP in 1980, retiring 
  December 2003 as Deputy Director of Jersey        in 2009 after being an Audit and Assurance 
  after 32 years of service. His main activities    Partner for over 20 years. During his 
  prior to retirement included Product              29 years at the rm Mr Pirouet specialised 
  Development, Corporate Finance, Trust             in the nancial services sector, in particular 
  and Offshore Company Services and he              in the alternative investment management 
  was Head of Joint Venture Fund Administration     area and also led the businesss Hedge 
  with Rawlinson & Hunter. Mr Spears is             Fund and business recovery practices 
  an Associate of the Chartered Institute           for over four years. Mr Pirouet currently 
  of Bankers and a Member of the Chartered          holds a number of non-executive positions 
  Institute for Securities & Investment.            across private equity, infrastructure 
  He has accumulated a well spread portfolio        and corporate debt. Mr Pirouets appointments 
  of directorships centring on private              currently include non-executive Director 
  equity, infrastructure and corporate              and Chair of the Audit and Risk committee 
  debt. His current appointments include            for GCP Infrastructure Investments (FTSE 
  Chairman of Nordic Capital Limited and            250 listed company). 
  director of Invesco Enhanced Income Limited. 
                                                  ----------------------------------------------- 
 Heather Bestwick                                  Robert Quayle 
                                                  ----------------------------------------------- 
 Heather Bestwick has been a nancial services      Robert Quayle qualified as an English 
  professional for over 25 years, onshore           solicitor at Linklaters & Paines in 1974 
  in the City of London and offshore in             after reading law at Selwyn College, 
  the Cayman Islands and Jersey. She quali          Cambridge. He subsequently practiced 
  ed as an English solicitor, specialising          in London and the Isle of Man as a partner 
  in ship nance, with City rm Norton Rose,          in Travers Smith Braithwaite. He served 
  and worked in their London and Greek              as Clerk of Tynwald (the Isle of Mans 
  of ces for 8 years. Ms Bestwick subsequently      parliament) for periods totalling 12 
  practised and became a partner with global        years and holds a number of public and 
  offshore law rm Walkers in the Cayman             private appointments, and is active in 
  Islands, and Managing Partner of the              the voluntary sector. Mr. Quayle is a 
  Jersey of ce. Ms Bestwick sits on the             director of a number of companies in 
  boards of the manager of the Deutsche             the financial services and distribution 
  Bank dbX hedge fund platform and Rathbone         sectors. 
  Investment Management International Limited. 
                                                  ----------------------------------------------- 
 Nicholas Wilson 
 Nicholas Wilson has over 40 years of 
  experience in hedge funds, derivatives 
  and global asset management. He has run 
  offshore branch operations for Mees Pierson 
  Derivatives Limited, ADM Investor Services 
  International Limited and several other 
  London based financial services companies. 
  He is Chairman of Gulf Investment Fund 
  plc, a premium listed company, and, until 
  recently, was chairman of Alternative 
  Investment Strategies Limited. He is 
  a resident of the Isle of Man. 
 

Biographies of the Investment Advisor

 
 Giles Brand                                          Hiren Patel 
 Giles Brand is a Partner and the founder             Hiren Patel is the Managing Director 
  of EPE. He is currently the Non-executive            of EPE Administration and is a 
  Chairman of Whittard of Chelsea and Luceco           Partner and the Finance Director 
  plc, and Non-executive Director of the               and Compliance Officer of EPE. 
  Reader Organisation, a not-for-profit                He has worked in the investment 
  educational charity. Before joining EPE,             management industry for the past 
  Giles was a founding Director of EPIC                twenty years. Before joining EPE 
  Investment Partners, a fund management               Administration, Hiren was Finance 
  business which at sale had US$5 billion              Director of EPIC Investment Partners. 
  under management. Prior to this, Giles               Prior to this, Hiren was employed 
  worked in Mergers and Acquisitions at                at Groupama Asset Management where 
  Baring Brothers in Paris and London. Giles           he was the Group Financial Controller. 
  read History at Bristol University. 
                                                     -------------------------------------------------- 
 Robert Fulford                                       James Henderson 
                                                     -------------------------------------------------- 
 Robert Fulford is an Investment Director             James Henderson is an Investment 
  of EPE. He previously worked at Barclaycard          Director at EPE. He previously 
  Consumer Europe before joining EPE. Whilst           worked in the Investment Banking 
  at Barclaycard, Robert was the Senior                division of Deutsche Bank before 
  Manager for Strategic Insight and was                joining EPE. Whilst at Deutsche 
  responsible for identifying, analysing               Bank he worked on a number of M&A 
  and responding to competitive forces.                transactions and IPOs in the energy, 
  Prior to Barclaycard, Robert spent four              property, retail and gaming sectors, 
  years as a strategy consultant at Oliver             as well as providing corporate 
  Wyman Financial Services, where he worked            broking advice to mandated clients. 
  with a range of major retail banking and             At EPE, James manages the investment 
  institutional clients in the UK, mainland            in Pharmacy2U. James read Modern 
  Europe, Middle East and Africa. At EPE               History at Oxford University and 
  Robert manages the investments in Whittard           Medicine at Nottingham University. 
  of Chelsea and David Philips. Robert read 
  Engineering at Cambridge University. 
                                                     -------------------------------------------------- 
 Alex Leslie                                          Ian Williams 
                                                     ------------------------------------------------ 
 Alex Leslie is an Investment Director                Ian Williams is an Investment Director 
  at EPE. He previously worked in Healthcare           at EPE. He was previously a Partner at 
  Investment Banking at Piper Jaffray before           Lyceum Capital Partner LLP responsible 
  joining EPE. Whilst at Piper Jaffray he              for deal origination and engagement, with 
  worked on a number of M&A transactions               a primary focus on the business services 
  and equity fundraisings within the Biotechnology,    and software sectors, as well as nancial 
  Specialty Pharmaceutical and Medical Technology      services, education and health sectors. 
  sectors. At EPE, Alex manages the investment         Prior to Lyceum, Ian was a Director at 
  in Luceco plc. Alex read Human Biological            Arbuthnot Securities, involved in transactions 
  and Social Sciences at Oxford University             including IPOs, secondary fund raisings 
  and obtained an MPhil in Management from             and M&A, focusing on the support services, 
  the Judge Business School at the Cambridge           healthcare, transport & IT sectors. Ian 
  University.                                          read Politics and Economics at the University 
                                                       of Bristol. 
                                                     ------------------------------------------------ 
 

Independent Review Report to EPE Special Opportunities Limited

Conclusion

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly report for the six months ended 31 July 2020 which comprises Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and the related explanatory notes.

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly report for the six months ended 31 July 2020 is not prepared, in all material respects, in accordance with IAS 34 Interim Financial Reporting as adopted by the EU and the AIM Rules.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. We read the other information contained in the half-yearly report and consider whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

(MORE TO FOLLOW) Dow Jones Newswires

September 08, 2020 02:16 ET (06:16 GMT)

DJ EPE Special Opportunities Limited Interim Review -4-

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Directors responsibilities

The half-yearly report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly report in accordance with the AIM Rules.

As disclosed in note 2, the annual financial statements of the Company are prepared in accordance with International Financial Reporting Standards as adopted by the EU. The Directors are responsible for preparing the condensed set of financial statements included in the half-yearly financial report in accordance with IAS 34 as adopted by the EU.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly report based on our review.

The purpose of our review work and to whom we owe our responsibilities

This report is made solely to the Company in accordance with the terms of our engagement. Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this report, or for the conclusions we have reached.

KPMG Audit LLC

Chartered Accountants

Heritage Court

41 Athol Street

Douglas

Isle of Man IM1 1LA

8 September 2020

Statement of Comprehensive Income

For the six months ended 31 July 2020

 
                                                                                             1 Feb               1 Feb 
                                                                                           2019 to             2019 to 
                                                                                            31 Jul              31 Jan 
                                        1 Feb 2020 to 31 Jul 2020                 2019 (unaudited)      2020 (audited) 
                                  Revenue        Capital 
                              (unaudited)    (unaudited)   Total (unaudited)                 Total               Total 
 Note                                 GBP            GBP                 GBP                   GBP                 GBP 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
        Income 
        Interest income             1,398              -               1,398                94,630             101,566 
        (Losses)/gains 
        on investments                  -    (2,439,705)         (2,439,705)            14,453,782          39,568,491 
       -----------------    -------------  -------------  ------------------                          ---------------- 
        Total 
        income/(loss)               1,398    (2,439,705)         (2,438,307)            14,548,412          39,670,057 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
        Expenses 
        Investment 
        advisors 
  5     fees                    (937,976)              -           (937,976)             (747,247)         (1,642,504) 
  14    Directors fees          (77,000)              -            (77,000)              (77,000)           (154,264) 
        Share based 
        payment 
  6     expense                 (217,715)              -           (217,715)              (42,695)            (71,158) 
  7     Other expenses          (342,047)              -           (342,047)             (905,733)         (1,257,703) 
        Total expense         (1,574,738)              -         (1,574,738)           (1,772,675)         (3,125,629) 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
        (Loss)/profit 
        before 
        finance costs 
        and tax               (1,573,340)    (2,439,705)         (4,013,045)          (12,775,737)          36,544,428 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
 
        Finance charges 
        Interest on 
        unsecured 
        loan note 
  13    instruments             (159,842)              -           (159,842)             (159,842)           (319,685) 
        (Loss)/profit 
        for the 
        year before 
        taxation              (1,733,182)    (2,439,705)         (4,172,887)            12,615,895          36,224,743 
        Taxation                        -              -                   -                     -                   - 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
        (Loss)/profit 
        for the 
        year                  (1,733,182)    (2,439,705)         (4,172,887)            12,615,895          36,224,743 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
        Other 
        comprehensive 
        income                          -              -                   -                     -                   - 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
        Total 
        comprehensive 
        (loss)/income         (1,733,182)    (2,439,705)         (4,172,887)            12,615,895          36,224,743 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
        Basic 
        (loss)/earnings 
        per ordinary 
        share (pence)              (5.27)         (7.42)             (12.69)                 40.50              112.86 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
        Diluted 
        (loss)/earnings 
        per ordinary 
        share (pence)              (5.27)         (7.42)             (12.69)                 40.50              112.86 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
 

The total column of this statement represents the Companys Statement of Comprehensive Income, prepared in accordance with IFRS as adopted by the EU. The supplementary revenue return and capital return columns are prepared in accordance with the Board of Directors agreed principles. All items derive from continuing activities.

Statement of Financial Position

As at 31 July 2020

 
                                            31 July 2020          31 January     31 July 2019 
                                             (unaudited)      2020 (audited)      (unaudited) 
 Note                                                GBP                 GBP              GBP 
       --------------------------------    -------------    ----------------    ------------- 
        Non-current assets 
        Investments at fair value 
  8      through profit or loss               82,107,768          83,382,923       59,965,060 
                                              82,107,768          83,382,923       59,965,060 
       --------------------------------    -------------    ----------------    ------------- 
        Current assets 
        Cash and cash equivalents             22,150,379          25,604,783       26,177,016 
        Trade and other receivables              175,798             235,211          214,434 
       --------------------------------    -------------    ----------------    ------------- 
                                              22,326,177          25,839,994       26,391,450 
       --------------------------------    -------------    ----------------    ------------- 
        Current liabilities 
        Trade and other payables               (641,238)         (1,028,704)        (823,939) 
       -------------------------------- 
        Net current assets                    21,684,939          24,811,290       25,567,511 
       --------------------------------    -------------    ----------------    ------------- 
 
        Non-current liabilities 
  13    Unsecured loan note instruments      (3,946,520)         (3,936,217)      (3,925,914) 
                                             (3,946,520)         (3,936,217)      (3,925,914) 
       --------------------------------    -------------    ----------------    ------------- 
        Net assets                            99,846,187         104,257,996       81,606,657 
       --------------------------------    -------------    ----------------    ------------- 
        Equity 
  10    Share capital                          1,730,828           1,726,953        1,707,589 
        Share premium                         13,619,627          13,489,826       13,489,826 
        Capital reserve                       81,845,729          84,285,434       59,170,725 
        Revenue reserve                        2,650,003           4,755,783        7,238,517 
        Total equity                          99,846,187         104,257,996       81,606,657 
        Net asset value per share 
         (pence)                                  303.04              317.18           245.54 
       --------------------------------    -------------    ----------------    ------------- 
 

Statement of Changes in Equity

(MORE TO FOLLOW) Dow Jones Newswires

September 08, 2020 02:16 ET (06:16 GMT)

DJ EPE Special Opportunities Limited Interim Review -4-

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Directors responsibilities

The half-yearly report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly report in accordance with the AIM Rules.

As disclosed in note 2, the annual financial statements of the Company are prepared in accordance with International Financial Reporting Standards as adopted by the EU. The Directors are responsible for preparing the condensed set of financial statements included in the half-yearly financial report in accordance with IAS 34 as adopted by the EU.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly report based on our review.

The purpose of our review work and to whom we owe our responsibilities

This report is made solely to the Company in accordance with the terms of our engagement. Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this report, or for the conclusions we have reached.

KPMG Audit LLC

Chartered Accountants

Heritage Court

41 Athol Street

Douglas

Isle of Man IM1 1LA

8 September 2020

Statement of Comprehensive Income

For the six months ended 31 July 2020

 
                                                                                             1 Feb               1 Feb 
                                                                                           2019 to             2019 to 
                                                                                            31 Jul              31 Jan 
                                        1 Feb 2020 to 31 Jul 2020                 2019 (unaudited)      2020 (audited) 
                                  Revenue        Capital 
                              (unaudited)    (unaudited)   Total (unaudited)                 Total               Total 
 Note                                 GBP            GBP                 GBP                   GBP                 GBP 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
        Income 
        Interest income             1,398              -               1,398                94,630             101,566 
        (Losses)/gains 
        on investments                  -    (2,439,705)         (2,439,705)            14,453,782          39,568,491 
       -----------------    -------------  -------------  ------------------                          ---------------- 
        Total 
        income/(loss)               1,398    (2,439,705)         (2,438,307)            14,548,412          39,670,057 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
        Expenses 
        Investment 
        advisors 
  5     fees                    (937,976)              -           (937,976)             (747,247)         (1,642,504) 
  14    Directors fees          (77,000)              -            (77,000)              (77,000)           (154,264) 
        Share based 
        payment 
  6     expense                 (217,715)              -           (217,715)              (42,695)            (71,158) 
  7     Other expenses          (342,047)              -           (342,047)             (905,733)         (1,257,703) 
        Total expense         (1,574,738)              -         (1,574,738)           (1,772,675)         (3,125,629) 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
        (Loss)/profit 
        before 
        finance costs 
        and tax               (1,573,340)    (2,439,705)         (4,013,045)          (12,775,737)          36,544,428 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
 
        Finance charges 
        Interest on 
        unsecured 
        loan note 
  13    instruments             (159,842)              -           (159,842)             (159,842)           (319,685) 
        (Loss)/profit 
        for the 
        year before 
        taxation              (1,733,182)    (2,439,705)         (4,172,887)            12,615,895          36,224,743 
        Taxation                        -              -                   -                     -                   - 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
        (Loss)/profit 
        for the 
        year                  (1,733,182)    (2,439,705)         (4,172,887)            12,615,895          36,224,743 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
        Other 
        comprehensive 
        income                          -              -                   -                     -                   - 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
        Total 
        comprehensive 
        (loss)/income         (1,733,182)    (2,439,705)         (4,172,887)            12,615,895          36,224,743 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
        Basic 
        (loss)/earnings 
        per ordinary 
        share (pence)              (5.27)         (7.42)             (12.69)                 40.50              112.86 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
        Diluted 
        (loss)/earnings 
        per ordinary 
        share (pence)              (5.27)         (7.42)             (12.69)                 40.50              112.86 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
 

The total column of this statement represents the Companys Statement of Comprehensive Income, prepared in accordance with IFRS as adopted by the EU. The supplementary revenue return and capital return columns are prepared in accordance with the Board of Directors agreed principles. All items derive from continuing activities.

Statement of Financial Position

As at 31 July 2020

 
                                            31 July 2020          31 January     31 July 2019 
                                             (unaudited)      2020 (audited)      (unaudited) 
 Note                                                GBP                 GBP              GBP 
       --------------------------------    -------------    ----------------    ------------- 
        Non-current assets 
        Investments at fair value 
  8      through profit or loss               82,107,768          83,382,923       59,965,060 
                                              82,107,768          83,382,923       59,965,060 
       --------------------------------    -------------    ----------------    ------------- 
        Current assets 
        Cash and cash equivalents             22,150,379          25,604,783       26,177,016 
        Trade and other receivables              175,798             235,211          214,434 
       --------------------------------    -------------    ----------------    ------------- 
                                              22,326,177          25,839,994       26,391,450 
       --------------------------------    -------------    ----------------    ------------- 
        Current liabilities 
        Trade and other payables               (641,238)         (1,028,704)        (823,939) 
       -------------------------------- 
        Net current assets                    21,684,939          24,811,290       25,567,511 
       --------------------------------    -------------    ----------------    ------------- 
 
        Non-current liabilities 
  13    Unsecured loan note instruments      (3,946,520)         (3,936,217)      (3,925,914) 
                                             (3,946,520)         (3,936,217)      (3,925,914) 
       --------------------------------    -------------    ----------------    ------------- 
        Net assets                            99,846,187         104,257,996       81,606,657 
       --------------------------------    -------------    ----------------    ------------- 
        Equity 
  10    Share capital                          1,730,828           1,726,953        1,707,589 
        Share premium                         13,619,627          13,489,826       13,489,826 
        Capital reserve                       81,845,729          84,285,434       59,170,725 
        Revenue reserve                        2,650,003           4,755,783        7,238,517 
        Total equity                          99,846,187         104,257,996       81,606,657 
        Net asset value per share 
         (pence)                                  303.04              317.18           245.54 
       --------------------------------    -------------    ----------------    ------------- 
 

Statement of Changes in Equity

(MORE TO FOLLOW) Dow Jones Newswires

September 08, 2020 02:16 ET (06:16 GMT)

DJ EPE Special Opportunities Limited Interim Review -4-

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Directors responsibilities

The half-yearly report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly report in accordance with the AIM Rules.

As disclosed in note 2, the annual financial statements of the Company are prepared in accordance with International Financial Reporting Standards as adopted by the EU. The Directors are responsible for preparing the condensed set of financial statements included in the half-yearly financial report in accordance with IAS 34 as adopted by the EU.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly report based on our review.

The purpose of our review work and to whom we owe our responsibilities

This report is made solely to the Company in accordance with the terms of our engagement. Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this report, or for the conclusions we have reached.

KPMG Audit LLC

Chartered Accountants

Heritage Court

41 Athol Street

Douglas

Isle of Man IM1 1LA

8 September 2020

Statement of Comprehensive Income

For the six months ended 31 July 2020

 
                                                                                             1 Feb               1 Feb 
                                                                                           2019 to             2019 to 
                                                                                            31 Jul              31 Jan 
                                        1 Feb 2020 to 31 Jul 2020                 2019 (unaudited)      2020 (audited) 
                                  Revenue        Capital 
                              (unaudited)    (unaudited)   Total (unaudited)                 Total               Total 
 Note                                 GBP            GBP                 GBP                   GBP                 GBP 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
        Income 
        Interest income             1,398              -               1,398                94,630             101,566 
        (Losses)/gains 
        on investments                  -    (2,439,705)         (2,439,705)            14,453,782          39,568,491 
       -----------------    -------------  -------------  ------------------                          ---------------- 
        Total 
        income/(loss)               1,398    (2,439,705)         (2,438,307)            14,548,412          39,670,057 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
        Expenses 
        Investment 
        advisors 
  5     fees                    (937,976)              -           (937,976)             (747,247)         (1,642,504) 
  14    Directors fees          (77,000)              -            (77,000)              (77,000)           (154,264) 
        Share based 
        payment 
  6     expense                 (217,715)              -           (217,715)              (42,695)            (71,158) 
  7     Other expenses          (342,047)              -           (342,047)             (905,733)         (1,257,703) 
        Total expense         (1,574,738)              -         (1,574,738)           (1,772,675)         (3,125,629) 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
        (Loss)/profit 
        before 
        finance costs 
        and tax               (1,573,340)    (2,439,705)         (4,013,045)          (12,775,737)          36,544,428 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
 
        Finance charges 
        Interest on 
        unsecured 
        loan note 
  13    instruments             (159,842)              -           (159,842)             (159,842)           (319,685) 
        (Loss)/profit 
        for the 
        year before 
        taxation              (1,733,182)    (2,439,705)         (4,172,887)            12,615,895          36,224,743 
        Taxation                        -              -                   -                     -                   - 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
        (Loss)/profit 
        for the 
        year                  (1,733,182)    (2,439,705)         (4,172,887)            12,615,895          36,224,743 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
        Other 
        comprehensive 
        income                          -              -                   -                     -                   - 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
        Total 
        comprehensive 
        (loss)/income         (1,733,182)    (2,439,705)         (4,172,887)            12,615,895          36,224,743 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
        Basic 
        (loss)/earnings 
        per ordinary 
        share (pence)              (5.27)         (7.42)             (12.69)                 40.50              112.86 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
        Diluted 
        (loss)/earnings 
        per ordinary 
        share (pence)              (5.27)         (7.42)             (12.69)                 40.50              112.86 
       -----------------    -------------  -------------  ------------------    ------------------    ---------------- 
 

The total column of this statement represents the Companys Statement of Comprehensive Income, prepared in accordance with IFRS as adopted by the EU. The supplementary revenue return and capital return columns are prepared in accordance with the Board of Directors agreed principles. All items derive from continuing activities.

Statement of Financial Position

As at 31 July 2020

 
                                            31 July 2020          31 January     31 July 2019 
                                             (unaudited)      2020 (audited)      (unaudited) 
 Note                                                GBP                 GBP              GBP 
       --------------------------------    -------------    ----------------    ------------- 
        Non-current assets 
        Investments at fair value 
  8      through profit or loss               82,107,768          83,382,923       59,965,060 
                                              82,107,768          83,382,923       59,965,060 
       --------------------------------    -------------    ----------------    ------------- 
        Current assets 
        Cash and cash equivalents             22,150,379          25,604,783       26,177,016 
        Trade and other receivables              175,798             235,211          214,434 
       --------------------------------    -------------    ----------------    ------------- 
                                              22,326,177          25,839,994       26,391,450 
       --------------------------------    -------------    ----------------    ------------- 
        Current liabilities 
        Trade and other payables               (641,238)         (1,028,704)        (823,939) 
       -------------------------------- 
        Net current assets                    21,684,939          24,811,290       25,567,511 
       --------------------------------    -------------    ----------------    ------------- 
 
        Non-current liabilities 
  13    Unsecured loan note instruments      (3,946,520)         (3,936,217)      (3,925,914) 
                                             (3,946,520)         (3,936,217)      (3,925,914) 
       --------------------------------    -------------    ----------------    ------------- 
        Net assets                            99,846,187         104,257,996       81,606,657 
       --------------------------------    -------------    ----------------    ------------- 
        Equity 
  10    Share capital                          1,730,828           1,726,953        1,707,589 
        Share premium                         13,619,627          13,489,826       13,489,826 
        Capital reserve                       81,845,729          84,285,434       59,170,725 
        Revenue reserve                        2,650,003           4,755,783        7,238,517 
        Total equity                          99,846,187         104,257,996       81,606,657 
        Net asset value per share 
         (pence)                                  303.04              317.18           245.54 
       --------------------------------    -------------    ----------------    ------------- 
 

Statement of Changes in Equity

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September 08, 2020 02:16 ET (06:16 GMT)

DJ EPE Special Opportunities Limited Interim Review -5-

For the six months ended 31 July 2020

 
                                                           Six months ended 31 July 2020 (unaudited) 
                                                   Share         Share       Capital       Revenue         Total 
                                                 capital       premium       reserve       reserve 
 Note                                                GBP           GBP           GBP           GBP           GBP 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Balance at 1 February 2020             1,726,953    13,489,826    84,285,434     4,755,783   104,257,996 
        Total comprehensive loss 
         for the period                                -             -   (2,439,705)   (1,733,182)   (4,172,887) 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Contributions by and distributions 
         to owners 
  6     Share based payment charge                     -             -             -       217,715       217,715 
        Share ownership scheme 
         participation                                 -             -             -      (20,497)      (20,497) 
        Provision for future settlement                -             -             -       216,324       216,324 
        Share acquisition for JSOP 
  6      scheme                                        -             -             -     (786,140)     (786,140) 
        Issue of new shares                        3,875       129,801             -             -       133,676 
        Total transactions with 
         owners                                    3,875       129,801             -     (372,598)     (238,922) 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Balance at 31 July 2020                1,730,828    13,619,627    81,845,729     2,650,003    99,846,187 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
                                                             Year ended 31 January 2020 (audited) 
                                                   Share         Share       Capital       Revenue         Total 
                                                 capital       premium       reserve       reserve 
                                                     GBP           GBP           GBP           GBP           GBP 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Balance at 1 February 2019             1,503,286     3,867,209    44,716,943     9,725,035    59,812,473 
        Total comprehensive income/(loss) 
         for the year                                  -             -    39,568,491   (3,343,748)    36,224,743 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Contributions by and distributions 
         to owners 
  6     Share based payment charge                     -             -             -        71,158        71,158 
        Share ownership scheme 
         participation                                 -             -             -        64,980        64,980 
        Provision for future settlement                -             -             -     (350,000)     (350,000) 
        Purchase of shares                             -             -             -   (1,411,642)   (1,411,642) 
        Issue of new shares                      223,667     9,622,617             -             -     9,846,284 
        Total transactions with 
         owners                                  223,667     9,622,617             -   (1,625,504)     8,220,780 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Balance at 31 January 2020             1,726,953    13,489,826    84,285,434     4,755,783   104,257,996 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
                                                           Six months ended 31 July 2019 (unaudited) 
                                                   Share         Share       Capital       Revenue         Total 
                                                 capital       premium       reserve       reserve 
                                                     GBP           GBP           GBP           GBP           GBP 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Balance at 1 February 2019             1,503,286     3,867,209    44,716,943     9,725,035    59,812,473 
        Total comprehensive income/(loss) 
         for the period                                -             -    14,453,782   (1,837,887)    12,615,895 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Contributions by and distributions 
         to owners 
  6     Share based payment charge                     -             -             -        42,695        42,695 
        Cash received from JSOP 
         participants                                  -             -             -        77,866        77,866 
        Purchase of treasury shares             (19,364)             -             -     (769,192)     (788,556) 
        Issue of new shares                      223,667     9,622,617             -        -          9,846,284 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Total transactions with 
         owners                                  204,303     9,622,617             -     (648,631)     9,178,289 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Balance at 31 July 2019                1,707,589    13,489,826    59,170,725     7,238,517    81,606,657 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
 

Statement of Cash Flows

For the six months ended 31 July 2020

 
                                                  1 Feb 2020        1 Feb 2019          1 Feb 2019 
                                                   to 31 Jul         to 31 Jan           to 31 Jul 
                                            2020 (unaudited)    2020 (audited)    2019 (unaudited) 
                                                         GBP               GBP                 GBP 
---------------------------------------   ------------------  ----------------  ------------------ 
 Operating activities 
 Interest income received                              1,398            17,574              10,639 
 Expenses paid                                   (1,335,075)       (2,718,136)         (1,227,634) 
 Net cash used in operating activities           (1,333,677)       (2,700,562)         (1,216,995) 
----------------------------------------  ------------------  ----------------  ------------------ 
 
 Investing activities 
 Purchase of investments                         (1,000,000)         (700,000)           (700,000) 
 Sales of investments                                      -           942,505                   - 
 Capital distribution from associates                      -           768,650                   - 
 Loan to associates                                (164,550)         (185,683)           (171,374) 
 Net cash (used in)/generated from 
  investing activities                           (1,164,550)           825,472           (871,374) 
----------------------------------------  ------------------  ----------------  ------------------ 
 Financing activities 
 Unsecured loan note interest paid                 (149,540)         (299,080)           (149,540) 
 Purchase of shares                                        -       (1,411,642)           (788,556) 
 Share acquisition for JSOP scheme                 (786,140)                 -                   - 
 Share ownership scheme participation               (20,497)            64,980              77,866 
 Net cash used in financing activities             (956,177)       (1,645,742)           (860,230) 
----------------------------------------  ------------------  ----------------  ------------------ 
 Decrease in cash and cash equivalents           (3,454,404)       (3,520,832)         (2,948,599) 
----------------------------------------  ------------------  ----------------  ------------------ 
 Cash and cash equivalents at start 
  of period/year                                  25,604,783        29,125,615          29,125,615 
----------------------------------------  ------------------  ----------------  ------------------ 
 Cash and cash equivalents at end 
  of period/year                                  22,150,379        25,604,783          26,177,016 
----------------------------------------  ------------------  ----------------  ------------------ 
 

Notes to the Condensed Interim Financial Statements

For the six months ended 31 July 2020

   1    The Company 

The Company was incorporated with limited liability in the Isle of Man on 25 July 2003. The Company then re-registered under the Isle of Man Companies Act 2006, with registration number 008597V. On 11 September 2018, the Company re-registered under the Bermuda Companies Act 1981, with registration number 53954. The Company moved its operations to Jersey with immediate effect on 17 May 2017 and has subsequently operated from Jersey only.

The Companys ordinary shares are quoted on AIM, a market operated by the , and the Growth Market of the Aquis Stock Exchange (formerly the NEX Exchange).

The interim financial statements are as at and for the six months ended 31 July 2020 comprise the Company and its associates. The interim financial statements are unaudited.

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September 08, 2020 02:16 ET (06:16 GMT)

DJ EPE Special Opportunities Limited Interim Review -5-

For the six months ended 31 July 2020

 
                                                           Six months ended 31 July 2020 (unaudited) 
                                                   Share         Share       Capital       Revenue         Total 
                                                 capital       premium       reserve       reserve 
 Note                                                GBP           GBP           GBP           GBP           GBP 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Balance at 1 February 2020             1,726,953    13,489,826    84,285,434     4,755,783   104,257,996 
        Total comprehensive loss 
         for the period                                -             -   (2,439,705)   (1,733,182)   (4,172,887) 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Contributions by and distributions 
         to owners 
  6     Share based payment charge                     -             -             -       217,715       217,715 
        Share ownership scheme 
         participation                                 -             -             -      (20,497)      (20,497) 
        Provision for future settlement                -             -             -       216,324       216,324 
        Share acquisition for JSOP 
  6      scheme                                        -             -             -     (786,140)     (786,140) 
        Issue of new shares                        3,875       129,801             -             -       133,676 
        Total transactions with 
         owners                                    3,875       129,801             -     (372,598)     (238,922) 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Balance at 31 July 2020                1,730,828    13,619,627    81,845,729     2,650,003    99,846,187 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
                                                             Year ended 31 January 2020 (audited) 
                                                   Share         Share       Capital       Revenue         Total 
                                                 capital       premium       reserve       reserve 
                                                     GBP           GBP           GBP           GBP           GBP 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Balance at 1 February 2019             1,503,286     3,867,209    44,716,943     9,725,035    59,812,473 
        Total comprehensive income/(loss) 
         for the year                                  -             -    39,568,491   (3,343,748)    36,224,743 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Contributions by and distributions 
         to owners 
  6     Share based payment charge                     -             -             -        71,158        71,158 
        Share ownership scheme 
         participation                                 -             -             -        64,980        64,980 
        Provision for future settlement                -             -             -     (350,000)     (350,000) 
        Purchase of shares                             -             -             -   (1,411,642)   (1,411,642) 
        Issue of new shares                      223,667     9,622,617             -             -     9,846,284 
        Total transactions with 
         owners                                  223,667     9,622,617             -   (1,625,504)     8,220,780 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Balance at 31 January 2020             1,726,953    13,489,826    84,285,434     4,755,783   104,257,996 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
                                                           Six months ended 31 July 2019 (unaudited) 
                                                   Share         Share       Capital       Revenue         Total 
                                                 capital       premium       reserve       reserve 
                                                     GBP           GBP           GBP           GBP           GBP 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Balance at 1 February 2019             1,503,286     3,867,209    44,716,943     9,725,035    59,812,473 
        Total comprehensive income/(loss) 
         for the period                                -             -    14,453,782   (1,837,887)    12,615,895 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Contributions by and distributions 
         to owners 
  6     Share based payment charge                     -             -             -        42,695        42,695 
        Cash received from JSOP 
         participants                                  -             -             -        77,866        77,866 
        Purchase of treasury shares             (19,364)             -             -     (769,192)     (788,556) 
        Issue of new shares                      223,667     9,622,617             -        -          9,846,284 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Total transactions with 
         owners                                  204,303     9,622,617             -     (648,631)     9,178,289 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Balance at 31 July 2019                1,707,589    13,489,826    59,170,725     7,238,517    81,606,657 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
 

Statement of Cash Flows

For the six months ended 31 July 2020

 
                                                  1 Feb 2020        1 Feb 2019          1 Feb 2019 
                                                   to 31 Jul         to 31 Jan           to 31 Jul 
                                            2020 (unaudited)    2020 (audited)    2019 (unaudited) 
                                                         GBP               GBP                 GBP 
---------------------------------------   ------------------  ----------------  ------------------ 
 Operating activities 
 Interest income received                              1,398            17,574              10,639 
 Expenses paid                                   (1,335,075)       (2,718,136)         (1,227,634) 
 Net cash used in operating activities           (1,333,677)       (2,700,562)         (1,216,995) 
----------------------------------------  ------------------  ----------------  ------------------ 
 
 Investing activities 
 Purchase of investments                         (1,000,000)         (700,000)           (700,000) 
 Sales of investments                                      -           942,505                   - 
 Capital distribution from associates                      -           768,650                   - 
 Loan to associates                                (164,550)         (185,683)           (171,374) 
 Net cash (used in)/generated from 
  investing activities                           (1,164,550)           825,472           (871,374) 
----------------------------------------  ------------------  ----------------  ------------------ 
 Financing activities 
 Unsecured loan note interest paid                 (149,540)         (299,080)           (149,540) 
 Purchase of shares                                        -       (1,411,642)           (788,556) 
 Share acquisition for JSOP scheme                 (786,140)                 -                   - 
 Share ownership scheme participation               (20,497)            64,980              77,866 
 Net cash used in financing activities             (956,177)       (1,645,742)           (860,230) 
----------------------------------------  ------------------  ----------------  ------------------ 
 Decrease in cash and cash equivalents           (3,454,404)       (3,520,832)         (2,948,599) 
----------------------------------------  ------------------  ----------------  ------------------ 
 Cash and cash equivalents at start 
  of period/year                                  25,604,783        29,125,615          29,125,615 
----------------------------------------  ------------------  ----------------  ------------------ 
 Cash and cash equivalents at end 
  of period/year                                  22,150,379        25,604,783          26,177,016 
----------------------------------------  ------------------  ----------------  ------------------ 
 

Notes to the Condensed Interim Financial Statements

For the six months ended 31 July 2020

   1    The Company 

The Company was incorporated with limited liability in the Isle of Man on 25 July 2003. The Company then re-registered under the Isle of Man Companies Act 2006, with registration number 008597V. On 11 September 2018, the Company re-registered under the Bermuda Companies Act 1981, with registration number 53954. The Company moved its operations to Jersey with immediate effect on 17 May 2017 and has subsequently operated from Jersey only.

The Companys ordinary shares are quoted on AIM, a market operated by the , and the Growth Market of the Aquis Stock Exchange (formerly the NEX Exchange).

The interim financial statements are as at and for the six months ended 31 July 2020 comprise the Company and its associates. The interim financial statements are unaudited.

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September 08, 2020 02:16 ET (06:16 GMT)

DJ EPE Special Opportunities Limited Interim Review -5-

For the six months ended 31 July 2020

 
                                                           Six months ended 31 July 2020 (unaudited) 
                                                   Share         Share       Capital       Revenue         Total 
                                                 capital       premium       reserve       reserve 
 Note                                                GBP           GBP           GBP           GBP           GBP 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Balance at 1 February 2020             1,726,953    13,489,826    84,285,434     4,755,783   104,257,996 
        Total comprehensive loss 
         for the period                                -             -   (2,439,705)   (1,733,182)   (4,172,887) 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Contributions by and distributions 
         to owners 
  6     Share based payment charge                     -             -             -       217,715       217,715 
        Share ownership scheme 
         participation                                 -             -             -      (20,497)      (20,497) 
        Provision for future settlement                -             -             -       216,324       216,324 
        Share acquisition for JSOP 
  6      scheme                                        -             -             -     (786,140)     (786,140) 
        Issue of new shares                        3,875       129,801             -             -       133,676 
        Total transactions with 
         owners                                    3,875       129,801             -     (372,598)     (238,922) 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Balance at 31 July 2020                1,730,828    13,619,627    81,845,729     2,650,003    99,846,187 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
                                                             Year ended 31 January 2020 (audited) 
                                                   Share         Share       Capital       Revenue         Total 
                                                 capital       premium       reserve       reserve 
                                                     GBP           GBP           GBP           GBP           GBP 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Balance at 1 February 2019             1,503,286     3,867,209    44,716,943     9,725,035    59,812,473 
        Total comprehensive income/(loss) 
         for the year                                  -             -    39,568,491   (3,343,748)    36,224,743 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Contributions by and distributions 
         to owners 
  6     Share based payment charge                     -             -             -        71,158        71,158 
        Share ownership scheme 
         participation                                 -             -             -        64,980        64,980 
        Provision for future settlement                -             -             -     (350,000)     (350,000) 
        Purchase of shares                             -             -             -   (1,411,642)   (1,411,642) 
        Issue of new shares                      223,667     9,622,617             -             -     9,846,284 
        Total transactions with 
         owners                                  223,667     9,622,617             -   (1,625,504)     8,220,780 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Balance at 31 January 2020             1,726,953    13,489,826    84,285,434     4,755,783   104,257,996 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
                                                           Six months ended 31 July 2019 (unaudited) 
                                                   Share         Share       Capital       Revenue         Total 
                                                 capital       premium       reserve       reserve 
                                                     GBP           GBP           GBP           GBP           GBP 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Balance at 1 February 2019             1,503,286     3,867,209    44,716,943     9,725,035    59,812,473 
        Total comprehensive income/(loss) 
         for the period                                -             -    14,453,782   (1,837,887)    12,615,895 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Contributions by and distributions 
         to owners 
  6     Share based payment charge                     -             -             -        42,695        42,695 
        Cash received from JSOP 
         participants                                  -             -             -        77,866        77,866 
        Purchase of treasury shares             (19,364)             -             -     (769,192)     (788,556) 
        Issue of new shares                      223,667     9,622,617             -        -          9,846,284 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Total transactions with 
         owners                                  204,303     9,622,617             -     (648,631)     9,178,289 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
        Balance at 31 July 2019                1,707,589    13,489,826    59,170,725     7,238,517    81,606,657 
       -----------------------------------    ----------  ------------  ------------  ------------  ------------ 
 

Statement of Cash Flows

For the six months ended 31 July 2020

 
                                                  1 Feb 2020        1 Feb 2019          1 Feb 2019 
                                                   to 31 Jul         to 31 Jan           to 31 Jul 
                                            2020 (unaudited)    2020 (audited)    2019 (unaudited) 
                                                         GBP               GBP                 GBP 
---------------------------------------   ------------------  ----------------  ------------------ 
 Operating activities 
 Interest income received                              1,398            17,574              10,639 
 Expenses paid                                   (1,335,075)       (2,718,136)         (1,227,634) 
 Net cash used in operating activities           (1,333,677)       (2,700,562)         (1,216,995) 
----------------------------------------  ------------------  ----------------  ------------------ 
 
 Investing activities 
 Purchase of investments                         (1,000,000)         (700,000)           (700,000) 
 Sales of investments                                      -           942,505                   - 
 Capital distribution from associates                      -           768,650                   - 
 Loan to associates                                (164,550)         (185,683)           (171,374) 
 Net cash (used in)/generated from 
  investing activities                           (1,164,550)           825,472           (871,374) 
----------------------------------------  ------------------  ----------------  ------------------ 
 Financing activities 
 Unsecured loan note interest paid                 (149,540)         (299,080)           (149,540) 
 Purchase of shares                                        -       (1,411,642)           (788,556) 
 Share acquisition for JSOP scheme                 (786,140)                 -                   - 
 Share ownership scheme participation               (20,497)            64,980              77,866 
 Net cash used in financing activities             (956,177)       (1,645,742)           (860,230) 
----------------------------------------  ------------------  ----------------  ------------------ 
 Decrease in cash and cash equivalents           (3,454,404)       (3,520,832)         (2,948,599) 
----------------------------------------  ------------------  ----------------  ------------------ 
 Cash and cash equivalents at start 
  of period/year                                  25,604,783        29,125,615          29,125,615 
----------------------------------------  ------------------  ----------------  ------------------ 
 Cash and cash equivalents at end 
  of period/year                                  22,150,379        25,604,783          26,177,016 
----------------------------------------  ------------------  ----------------  ------------------ 
 

Notes to the Condensed Interim Financial Statements

For the six months ended 31 July 2020

   1    The Company 

The Company was incorporated with limited liability in the Isle of Man on 25 July 2003. The Company then re-registered under the Isle of Man Companies Act 2006, with registration number 008597V. On 11 September 2018, the Company re-registered under the Bermuda Companies Act 1981, with registration number 53954. The Company moved its operations to Jersey with immediate effect on 17 May 2017 and has subsequently operated from Jersey only.

The Companys ordinary shares are quoted on AIM, a market operated by the , and the Growth Market of the Aquis Stock Exchange (formerly the NEX Exchange).

The interim financial statements are as at and for the six months ended 31 July 2020 comprise the Company and its associates. The interim financial statements are unaudited.

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September 08, 2020 02:16 ET (06:16 GMT)

DJ EPE Special Opportunities Limited Interim Review -6-

The financial statements of the Company as at and for the year ended 31 January 2020 are available upon request from the Companys business office at Liberation House, Castle Street, St Helier, Jersey, JE1 2LH and the registered office at Clarendon House, 2 Church Street, Hamilton HM11, Bermuda, or at www.epespecialopportunities.com .

At 31 July 2020, the Company has two wholly owned subsidiary companies. EPIC Reconstruction Property Company (IOM) Limited, a company incorporated on 29 October 2005 in the Isle of Man and Corvina Limited, a company incorporated on 16 November 2012 in the Isle of Man.

At 31 July 2020, the Company also had interests in five partnerships and three limited companies that are treated as associates. The partnerships comprise one limited liability partnership and four limited partnerships.

The principal activity of the Company and its associates is to arrange income yielding financing for growth, buyout and special situations and holding the investments and its associates with a view to exiting in due course at a profit.

The Company has no employees.

   2    Statement of compliance 

These interim financial statements for the six months ended 31 July 2020 have been prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with Companys last annual financial statements as at and for the year ended 31 January 2020. They do not include all of the information required for a complete set of financial statements prepared in accordance with IFRS Standards. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Companys financial position and performance since the last annual financial statements.

In the Statement of Cash Flows, loans to associates have been presented in investing activities. In the prior period/year financial statements they were presented in operating activities. The comparatives have been revised to correspond with the presentation adopted in the current period. This change in presentation for the comparatives has had no effect on net profit/loss or net assets.

These interim financial statements were authorised for issue by the Companys Board of Directors on 8 September 2020.

   3    Significant accounting policies 

COVID 19 Impact:

The COVID-19 pandemic has had a significant impact on the valuation multiples, derived from quoted comparables, used in the preparation of the fair market valuation of the Companys unquoted investments. These quoted comparables are subject to both market volatility and uncertainty due to the impact of the pandemic and their trading outlook. The performance and financial position forecasted for the Companys portfolio is subject to the wider market uncertainty caused by the COVID-19 pandemic. These inputs have been used in the preparation of the fair market valuation of the Companys unquoted investments.

   4    Financial risk management 

The financial risk management objectives and policies are consistent with those disclosed in the financial statements as at and for the year ended 31 January 2020.

   5    Investment advisory, administration fees and profit share 

Investment advisory fees

Company

The investment advisory fee payable to EPIC Private Equity LLP ("EPE") is assessed and payable at the end of each fiscal quarter and is calculated as 2 per cent. of the Companys NAV where the Companys NAV is less than GBP100 million; otherwise the investment advisory fee shall be calculated as the greater of GBP2.0 million or the sum of 2 per cent. of the Companys NAV comprising Level 3 portfolio assets (i.e. unquoted assets), 1 per cent. of the Companys NAV comprising Level 1 assets (i.e. quoted assets), no fees on assets which are managed or advised by a third party manager, 0.5 per cent. of the Companys net cash (if greater than nil), and 2 per cent. of the Companys net cash (if less than nil) (i.e. reducing fees for net debt positions).

The charge for the current period was GBP937,976 (for the period ended 31 July 2019: GBP747,247; year ended 31 January 2020: GBP1,642,504). The amount outstanding as at 31 July 2020 was GBP500,000 (for the period ended 31 July 2019: GBP417,863; year ended 31 January 2020: GBP500,000).

Administration fees

EPE Administration Limited provides accounting and financial administration services to the company. The fee payable to EPE Administration Limited is assessed and payable at the end of each fiscal quarter and is calculated as 0.15 per cent. of the Companys NAV where the Companys NAV is less than GBP100 million (subject to a minimum fee of GBP35,000); otherwise the advisory fee shall be calculated as 0.15 per cent. of GBP100 million plus a fee of 0.1 per cent. of the excess of the Companys NAV above GBP100 million.

The charge for the current period was GBP70,242 (for the period ended 31 July 2019: GBP57,012; for the year ended 31 January 2020: GBP125,732).

Other administration fees during the period were GBP27,441 (for the period ended 31 July 2019: GBP28,416; for the year ended 31 January 2020: GBP72,499).

Profit share in ESO Investments 1 Limited

The distribution policy of ESO Investments 1 Limited includes an allocation of profits to the Investment Advisor such that, for each investment where a returns hurdle of 8 per cent. per annum has been achieved, the Investment Advisor is entitled to receive 20 per cent. of the increase in the base value of investment. For the period ended 31 July 2020, GBP1,633,929 has been credited to the profit share account of the Investment Advisor in the records of ESO Investments 1 Limited.

Profit share in ESO Investments 2 Limited

The distribution policy of ESO Investments 2 Limited includes an allocation of profit to the Investment Advisor such that, for each investment where a returns hurdle of 8 per cent. per annum has been achieved, the Investment Advisor is entitled to receive 20 per cent. of the increase in the base value of investment. For the period ended 31 July 2020, GBP4,736,542 has been credited to the profit share account of the Investment Advisor in the records of ESO Investments 2 Limited.

   6    Share-based payment expense 

Certain employees (including Directors) of the Company and the Investment Advisors receive remuneration in the form of equity settled share-based payment transactions, through a Joint Share Ownership Plan ("JSOP").

The cost of equity settled transactions with certain Directors of the Company and other participants (including employees, members and consultants of the Investment Advisor) ("Participants") is measured by reference to the fair value at the date on which they are granted. The fair value is determined based on the share price of the equity instrument at the grant date.

The Trust was created to award shares to Participants as part of the JSOP. Participants are awarded a certain number of shares ("Matching Shares") which are subject to a three-year service vesting condition from the grant date. In order to receive their Matching Share allocation Participants are required to purchase shares in the Company on the open market ("Bought Shares").The Participant will then be entitled to acquire a joint ownership interest in the Matching Shares for the payment of a nominal amount, on the basis of one joint ownership interest in one Matching Share for every Bought Share they acquire in the relevant award period.

The Trust holds the Matching Shares jointly with the Participant until the award vests. These shares carry the same rights as rest of the ordinary shares.

The Trust held 1,419,004 (for the period ended 31 July 2019: 1,035,624; for the year ended 31 Jan 2020: 956,569) matching shares at the period end which have traditionally not voted.

During the period, 462,435 shares were acquired by the Trust for the JSOP scheme (2020: nil). No shares were vested during the period to the JSOP participants (2020: 79,055). No shares were awarded to the JSOP participants in the period (2020: 856,058).

The amount expensed in the income statement has been calculated by reference to the grant date at a fair value of the equity instrument and the estimated number of equity instruments to be issued after the vesting period, less the amount paid for the joint ownership interest in the Matching Shares. The total expense recognised on the share-based payments during the period amounts to GBP217,715 (for the period ended 31 July 2019: GBP42,695; for the year ended 31 Jan 2020: GBP71,158).

   7    Other expenses 

The breakdown of other expenses presented in the statement of comprehensive income is as follows:

 
                                               1 Feb 2020          1 Feb 2019        1 Feb 2019 
                                                to 31 Jul           to 31 Jul         to 31 Jan 
                                         2020 (unaudited)    2019 (unaudited)    2020 (audited) 
                                                    Total               Total             Total 
                                                      GBP                 GBP               GBP 
------------------------------------   ------------------  ------------------  ---------------- 
 Administration fees                             (97,683)            (85,428)         (198,231) 
 Directors and officers insurance              (11,103)            (11,496)          (22,665) 
 Professional fees                              (136,941)           (675,530)         (780,440) 
 Board meeting and travel expenses                (1,981)             (3,102)          (16,425) 
 Auditors remuneration                          (36,535)            (33,376)          (50,000) 
 Bank charges                                       (303)               (566)           (1,095) 
 Irrecoverable VAT                                  (450)               (450)             (600) 
 Sundry expenses                                  (6,209)             (6,402)          (48,556) 

(MORE TO FOLLOW) Dow Jones Newswires

September 08, 2020 02:16 ET (06:16 GMT)

DJ EPE Special Opportunities Limited Interim Review -6-

The financial statements of the Company as at and for the year ended 31 January 2020 are available upon request from the Companys business office at Liberation House, Castle Street, St Helier, Jersey, JE1 2LH and the registered office at Clarendon House, 2 Church Street, Hamilton HM11, Bermuda, or at www.epespecialopportunities.com .

At 31 July 2020, the Company has two wholly owned subsidiary companies. EPIC Reconstruction Property Company (IOM) Limited, a company incorporated on 29 October 2005 in the Isle of Man and Corvina Limited, a company incorporated on 16 November 2012 in the Isle of Man.

At 31 July 2020, the Company also had interests in five partnerships and three limited companies that are treated as associates. The partnerships comprise one limited liability partnership and four limited partnerships.

The principal activity of the Company and its associates is to arrange income yielding financing for growth, buyout and special situations and holding the investments and its associates with a view to exiting in due course at a profit.

The Company has no employees.

   2    Statement of compliance 

These interim financial statements for the six months ended 31 July 2020 have been prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with Companys last annual financial statements as at and for the year ended 31 January 2020. They do not include all of the information required for a complete set of financial statements prepared in accordance with IFRS Standards. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Companys financial position and performance since the last annual financial statements.

In the Statement of Cash Flows, loans to associates have been presented in investing activities. In the prior period/year financial statements they were presented in operating activities. The comparatives have been revised to correspond with the presentation adopted in the current period. This change in presentation for the comparatives has had no effect on net profit/loss or net assets.

These interim financial statements were authorised for issue by the Companys Board of Directors on 8 September 2020.

   3    Significant accounting policies 

COVID 19 Impact:

The COVID-19 pandemic has had a significant impact on the valuation multiples, derived from quoted comparables, used in the preparation of the fair market valuation of the Companys unquoted investments. These quoted comparables are subject to both market volatility and uncertainty due to the impact of the pandemic and their trading outlook. The performance and financial position forecasted for the Companys portfolio is subject to the wider market uncertainty caused by the COVID-19 pandemic. These inputs have been used in the preparation of the fair market valuation of the Companys unquoted investments.

   4    Financial risk management 

The financial risk management objectives and policies are consistent with those disclosed in the financial statements as at and for the year ended 31 January 2020.

   5    Investment advisory, administration fees and profit share 

Investment advisory fees

Company

The investment advisory fee payable to EPIC Private Equity LLP ("EPE") is assessed and payable at the end of each fiscal quarter and is calculated as 2 per cent. of the Companys NAV where the Companys NAV is less than GBP100 million; otherwise the investment advisory fee shall be calculated as the greater of GBP2.0 million or the sum of 2 per cent. of the Companys NAV comprising Level 3 portfolio assets (i.e. unquoted assets), 1 per cent. of the Companys NAV comprising Level 1 assets (i.e. quoted assets), no fees on assets which are managed or advised by a third party manager, 0.5 per cent. of the Companys net cash (if greater than nil), and 2 per cent. of the Companys net cash (if less than nil) (i.e. reducing fees for net debt positions).

The charge for the current period was GBP937,976 (for the period ended 31 July 2019: GBP747,247; year ended 31 January 2020: GBP1,642,504). The amount outstanding as at 31 July 2020 was GBP500,000 (for the period ended 31 July 2019: GBP417,863; year ended 31 January 2020: GBP500,000).

Administration fees

EPE Administration Limited provides accounting and financial administration services to the company. The fee payable to EPE Administration Limited is assessed and payable at the end of each fiscal quarter and is calculated as 0.15 per cent. of the Companys NAV where the Companys NAV is less than GBP100 million (subject to a minimum fee of GBP35,000); otherwise the advisory fee shall be calculated as 0.15 per cent. of GBP100 million plus a fee of 0.1 per cent. of the excess of the Companys NAV above GBP100 million.

The charge for the current period was GBP70,242 (for the period ended 31 July 2019: GBP57,012; for the year ended 31 January 2020: GBP125,732).

Other administration fees during the period were GBP27,441 (for the period ended 31 July 2019: GBP28,416; for the year ended 31 January 2020: GBP72,499).

Profit share in ESO Investments 1 Limited

The distribution policy of ESO Investments 1 Limited includes an allocation of profits to the Investment Advisor such that, for each investment where a returns hurdle of 8 per cent. per annum has been achieved, the Investment Advisor is entitled to receive 20 per cent. of the increase in the base value of investment. For the period ended 31 July 2020, GBP1,633,929 has been credited to the profit share account of the Investment Advisor in the records of ESO Investments 1 Limited.

Profit share in ESO Investments 2 Limited

The distribution policy of ESO Investments 2 Limited includes an allocation of profit to the Investment Advisor such that, for each investment where a returns hurdle of 8 per cent. per annum has been achieved, the Investment Advisor is entitled to receive 20 per cent. of the increase in the base value of investment. For the period ended 31 July 2020, GBP4,736,542 has been credited to the profit share account of the Investment Advisor in the records of ESO Investments 2 Limited.

   6    Share-based payment expense 

Certain employees (including Directors) of the Company and the Investment Advisors receive remuneration in the form of equity settled share-based payment transactions, through a Joint Share Ownership Plan ("JSOP").

The cost of equity settled transactions with certain Directors of the Company and other participants (including employees, members and consultants of the Investment Advisor) ("Participants") is measured by reference to the fair value at the date on which they are granted. The fair value is determined based on the share price of the equity instrument at the grant date.

The Trust was created to award shares to Participants as part of the JSOP. Participants are awarded a certain number of shares ("Matching Shares") which are subject to a three-year service vesting condition from the grant date. In order to receive their Matching Share allocation Participants are required to purchase shares in the Company on the open market ("Bought Shares").The Participant will then be entitled to acquire a joint ownership interest in the Matching Shares for the payment of a nominal amount, on the basis of one joint ownership interest in one Matching Share for every Bought Share they acquire in the relevant award period.

The Trust holds the Matching Shares jointly with the Participant until the award vests. These shares carry the same rights as rest of the ordinary shares.

The Trust held 1,419,004 (for the period ended 31 July 2019: 1,035,624; for the year ended 31 Jan 2020: 956,569) matching shares at the period end which have traditionally not voted.

During the period, 462,435 shares were acquired by the Trust for the JSOP scheme (2020: nil). No shares were vested during the period to the JSOP participants (2020: 79,055). No shares were awarded to the JSOP participants in the period (2020: 856,058).

The amount expensed in the income statement has been calculated by reference to the grant date at a fair value of the equity instrument and the estimated number of equity instruments to be issued after the vesting period, less the amount paid for the joint ownership interest in the Matching Shares. The total expense recognised on the share-based payments during the period amounts to GBP217,715 (for the period ended 31 July 2019: GBP42,695; for the year ended 31 Jan 2020: GBP71,158).

   7    Other expenses 

The breakdown of other expenses presented in the statement of comprehensive income is as follows:

 
                                               1 Feb 2020          1 Feb 2019        1 Feb 2019 
                                                to 31 Jul           to 31 Jul         to 31 Jan 
                                         2020 (unaudited)    2019 (unaudited)    2020 (audited) 
                                                    Total               Total             Total 
                                                      GBP                 GBP               GBP 
------------------------------------   ------------------  ------------------  ---------------- 
 Administration fees                             (97,683)            (85,428)         (198,231) 
 Directors and officers insurance              (11,103)            (11,496)          (22,665) 
 Professional fees                              (136,941)           (675,530)         (780,440) 
 Board meeting and travel expenses                (1,981)             (3,102)          (16,425) 
 Auditors remuneration                          (36,535)            (33,376)          (50,000) 
 Bank charges                                       (303)               (566)           (1,095) 
 Irrecoverable VAT                                  (450)               (450)             (600) 
 Sundry expenses                                  (6,209)             (6,402)          (48,556) 

(MORE TO FOLLOW) Dow Jones Newswires

September 08, 2020 02:16 ET (06:16 GMT)

DJ EPE Special Opportunities Limited Interim Review -6-

The financial statements of the Company as at and for the year ended 31 January 2020 are available upon request from the Companys business office at Liberation House, Castle Street, St Helier, Jersey, JE1 2LH and the registered office at Clarendon House, 2 Church Street, Hamilton HM11, Bermuda, or at www.epespecialopportunities.com .

At 31 July 2020, the Company has two wholly owned subsidiary companies. EPIC Reconstruction Property Company (IOM) Limited, a company incorporated on 29 October 2005 in the Isle of Man and Corvina Limited, a company incorporated on 16 November 2012 in the Isle of Man.

At 31 July 2020, the Company also had interests in five partnerships and three limited companies that are treated as associates. The partnerships comprise one limited liability partnership and four limited partnerships.

The principal activity of the Company and its associates is to arrange income yielding financing for growth, buyout and special situations and holding the investments and its associates with a view to exiting in due course at a profit.

The Company has no employees.

   2    Statement of compliance 

These interim financial statements for the six months ended 31 July 2020 have been prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with Companys last annual financial statements as at and for the year ended 31 January 2020. They do not include all of the information required for a complete set of financial statements prepared in accordance with IFRS Standards. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Companys financial position and performance since the last annual financial statements.

In the Statement of Cash Flows, loans to associates have been presented in investing activities. In the prior period/year financial statements they were presented in operating activities. The comparatives have been revised to correspond with the presentation adopted in the current period. This change in presentation for the comparatives has had no effect on net profit/loss or net assets.

These interim financial statements were authorised for issue by the Companys Board of Directors on 8 September 2020.

   3    Significant accounting policies 

COVID 19 Impact:

The COVID-19 pandemic has had a significant impact on the valuation multiples, derived from quoted comparables, used in the preparation of the fair market valuation of the Companys unquoted investments. These quoted comparables are subject to both market volatility and uncertainty due to the impact of the pandemic and their trading outlook. The performance and financial position forecasted for the Companys portfolio is subject to the wider market uncertainty caused by the COVID-19 pandemic. These inputs have been used in the preparation of the fair market valuation of the Companys unquoted investments.

   4    Financial risk management 

The financial risk management objectives and policies are consistent with those disclosed in the financial statements as at and for the year ended 31 January 2020.

   5    Investment advisory, administration fees and profit share 

Investment advisory fees

Company

The investment advisory fee payable to EPIC Private Equity LLP ("EPE") is assessed and payable at the end of each fiscal quarter and is calculated as 2 per cent. of the Companys NAV where the Companys NAV is less than GBP100 million; otherwise the investment advisory fee shall be calculated as the greater of GBP2.0 million or the sum of 2 per cent. of the Companys NAV comprising Level 3 portfolio assets (i.e. unquoted assets), 1 per cent. of the Companys NAV comprising Level 1 assets (i.e. quoted assets), no fees on assets which are managed or advised by a third party manager, 0.5 per cent. of the Companys net cash (if greater than nil), and 2 per cent. of the Companys net cash (if less than nil) (i.e. reducing fees for net debt positions).

The charge for the current period was GBP937,976 (for the period ended 31 July 2019: GBP747,247; year ended 31 January 2020: GBP1,642,504). The amount outstanding as at 31 July 2020 was GBP500,000 (for the period ended 31 July 2019: GBP417,863; year ended 31 January 2020: GBP500,000).

Administration fees

EPE Administration Limited provides accounting and financial administration services to the company. The fee payable to EPE Administration Limited is assessed and payable at the end of each fiscal quarter and is calculated as 0.15 per cent. of the Companys NAV where the Companys NAV is less than GBP100 million (subject to a minimum fee of GBP35,000); otherwise the advisory fee shall be calculated as 0.15 per cent. of GBP100 million plus a fee of 0.1 per cent. of the excess of the Companys NAV above GBP100 million.

The charge for the current period was GBP70,242 (for the period ended 31 July 2019: GBP57,012; for the year ended 31 January 2020: GBP125,732).

Other administration fees during the period were GBP27,441 (for the period ended 31 July 2019: GBP28,416; for the year ended 31 January 2020: GBP72,499).

Profit share in ESO Investments 1 Limited

The distribution policy of ESO Investments 1 Limited includes an allocation of profits to the Investment Advisor such that, for each investment where a returns hurdle of 8 per cent. per annum has been achieved, the Investment Advisor is entitled to receive 20 per cent. of the increase in the base value of investment. For the period ended 31 July 2020, GBP1,633,929 has been credited to the profit share account of the Investment Advisor in the records of ESO Investments 1 Limited.

Profit share in ESO Investments 2 Limited

The distribution policy of ESO Investments 2 Limited includes an allocation of profit to the Investment Advisor such that, for each investment where a returns hurdle of 8 per cent. per annum has been achieved, the Investment Advisor is entitled to receive 20 per cent. of the increase in the base value of investment. For the period ended 31 July 2020, GBP4,736,542 has been credited to the profit share account of the Investment Advisor in the records of ESO Investments 2 Limited.

   6    Share-based payment expense 

Certain employees (including Directors) of the Company and the Investment Advisors receive remuneration in the form of equity settled share-based payment transactions, through a Joint Share Ownership Plan ("JSOP").

The cost of equity settled transactions with certain Directors of the Company and other participants (including employees, members and consultants of the Investment Advisor) ("Participants") is measured by reference to the fair value at the date on which they are granted. The fair value is determined based on the share price of the equity instrument at the grant date.

The Trust was created to award shares to Participants as part of the JSOP. Participants are awarded a certain number of shares ("Matching Shares") which are subject to a three-year service vesting condition from the grant date. In order to receive their Matching Share allocation Participants are required to purchase shares in the Company on the open market ("Bought Shares").The Participant will then be entitled to acquire a joint ownership interest in the Matching Shares for the payment of a nominal amount, on the basis of one joint ownership interest in one Matching Share for every Bought Share they acquire in the relevant award period.

The Trust holds the Matching Shares jointly with the Participant until the award vests. These shares carry the same rights as rest of the ordinary shares.

The Trust held 1,419,004 (for the period ended 31 July 2019: 1,035,624; for the year ended 31 Jan 2020: 956,569) matching shares at the period end which have traditionally not voted.

During the period, 462,435 shares were acquired by the Trust for the JSOP scheme (2020: nil). No shares were vested during the period to the JSOP participants (2020: 79,055). No shares were awarded to the JSOP participants in the period (2020: 856,058).

The amount expensed in the income statement has been calculated by reference to the grant date at a fair value of the equity instrument and the estimated number of equity instruments to be issued after the vesting period, less the amount paid for the joint ownership interest in the Matching Shares. The total expense recognised on the share-based payments during the period amounts to GBP217,715 (for the period ended 31 July 2019: GBP42,695; for the year ended 31 Jan 2020: GBP71,158).

   7    Other expenses 

The breakdown of other expenses presented in the statement of comprehensive income is as follows:

 
                                               1 Feb 2020          1 Feb 2019        1 Feb 2019 
                                                to 31 Jul           to 31 Jul         to 31 Jan 
                                         2020 (unaudited)    2019 (unaudited)    2020 (audited) 
                                                    Total               Total             Total 
                                                      GBP                 GBP               GBP 
------------------------------------   ------------------  ------------------  ---------------- 
 Administration fees                             (97,683)            (85,428)         (198,231) 
 Directors and officers insurance              (11,103)            (11,496)          (22,665) 
 Professional fees                              (136,941)           (675,530)         (780,440) 
 Board meeting and travel expenses                (1,981)             (3,102)          (16,425) 
 Auditors remuneration                          (36,535)            (33,376)          (50,000) 
 Bank charges                                       (303)               (566)           (1,095) 
 Irrecoverable VAT                                  (450)               (450)             (600) 
 Sundry expenses                                  (6,209)             (6,402)          (48,556) 

(MORE TO FOLLOW) Dow Jones Newswires

September 08, 2020 02:16 ET (06:16 GMT)

DJ EPE Special Opportunities Limited Interim Review -7-

 Nominated advisor and broker fees               (29,072)            (26,994)          (55,740) 
 Listing fees                                    (21,755)            (60,636)          (81,591) 
 Net foreign exchange loss                           (15)             (1,753)           (2,360) 
-------------------------------------  ------------------  ------------------  ---------------- 
 Other expenses                                 (342,047)           (905,733)       (1,257,703) 
-------------------------------------  ------------------  ------------------  ---------------- 
 
   8    Investments at fair value through profit or loss 
 
                                             31 July 2020         31 January    31 July 2019 
                                                                        2020 
                                              (unaudited)          (audited)     (unaudited) 
                                                      GBP                GBP             GBP 
 Investments at fair value through 
  profit and loss                              82,107,768         83,382,923      59,965,060 
                                               82,107,768        83,382,923       59,965,060 
                                          ---------------  -----------------  -------------- 
 
 
 Investment roll forward schedule 
                                       31 July 2020        31 January    31 July 2019 
                                        (unaudited)    2020 (audited) 
                                                                          (unaudited) 
 
 Investments at fair value as at 
  1 February                             83,382,923        34,793,620      34,793,620 
------------------------------------  -------------  ----------------  -------------- 
 Purchase of investments                  1,000,000           700,000         700,000 
 Sale of investments                              -         (942,505)               - 
 Distributions                                    -         (768,650)               - 
 Buyout of accrued carried interest               -         9,846,284       9,846,284 
 Fair value movements                   (2,439,705)        39,568,491      14,453,782 
 Loan to associates                         164,550           185,683         171,374 
 Investments at fair value as at 
  31 July/January                        82,107,768        83,382,923      59,965,060 
------------------------------------  -------------  ----------------  -------------- 
 

Investment in associates

Investments in associates comprise equity and debt investments in ESO Investments 1 LP, ESO Alternative Investments LP, ESO Investments 1 Limited, ESO Investments 2 Limited, ESO Investments (DP) Limited and ESO Investments (PC) LLP which are stated at fair value through profit and loss. The associates have also accounted for their equity and debt investments at fair value.

   9    Fair value of financial instruments 

The Company determines the fair value of financial instruments with reference to IPEV guidelines and the valuation principles of IFRS 13 (Fair Value Measurement). The Company measures fair value using the IFRS 13 fair value hierarchy, which reflects the significance and certainty of the inputs used in deriving the fair value of an asset:

-- Level 1: Inputs that are quoted market prices (unadjusted) in active markets for identical instruments;

-- Level 2: Inputs other than quoted prices included within Level 1 that are observable either directly (i.e. as prices) or indirectly (i.e. derived from prices). This category includes instruments valued using quoted market prices in active markets for similar instruments, quoted prices for identical or similar instruments in markets that are considered less than active or other valuation techniques in which all significant inputs are directly or indirectly observable from market data;

-- Level 3: Inputs that are unobservable. This category includes all instruments for which the valuation technique includes inputs not based on observable data and the unobservable inputs have a significant effect on the instruments valuation. This category includes instruments that are valued based on quoted prices for similar instruments but for which significant unobservable adjustments or assumptions are required to reflect differences between the instruments.

Valuation framework

The Company employs the valuation framework detailed below with respect to the measurement of fair values. A valuation of the Companys investments is prepared by the Investment Advisor with reference to IPEV guidelines and the valuation principles of IFRS 13 (Fair Value Measurement). The Investment Advisor recommends these valuations to the Board of Directors. The Board of Directors considers the valuations recommended by the Investment Advisor, determines any amendments required and thereafter adopts the fair values presented in the Companys financial statements.

Quoted equity investments

Quoted investments traded in an active market are classified as Level 1 in the IFRS 13 fair value hierarchy. The Companys investment in Luceco is a Level 1 asset. For Level 1 assets, the Company calculates the holding value from the latest market price (without adjustment).

Unquoted private equity investments and third party fund investments

Private equity investments and third party fund investments are classified as Level 3 in the IFRS 13 fair value hierarchy. The Companys investments in Whittard, David Phillips, Pharmacy2U and European Capital Private Debt Fund are considered to be Level 3 assets. Various valuation techniques may be applied in determining the fair value of investments held as Level 3 in the fair value hierarchy;

-- For recently acquired assets, the Company considers the investment cost an applicable fair value for the asset;

-- For underperforming assets, the Company considers the net asset or recovery valuation more applicable, in particular where the business performance be contingent on shareholder financial support;

-- For performing assets, the Company considers the market approach to be the most appropriate with a specific focus on trading comparables, applied on a forward basis. The Company will also consider transaction comparables, applied on a historic basis;

-- For assets managed and valued by third party managers, the Company reviews the valuation methodology of the third party manager. If deemed appropriate and consistent with the Companys reporting standards, the Company will use the valuation prepared by the third party manager.

The Investment Advisor believe that it is appropriate to apply an illiquidity discount to the multiples of comparable companies when using them to calculate valuations for small, private companies. This discount adjusts for the difference in size between generally larger comparable companies and the smaller assets being valued. The illiquidity discount also incorporates the premium the market gives to comparable companies for being freely traded or listed securities. The Investment Advisor has determined between 15 per cent. and 25 per cent. to be an appropriate illiquidity discount with reference to market data and transaction multiples seen in the market in which the Investment Advisor operates.

Where portfolio investments are held through subsidiary/associate holding companies, the net assets of the holding company are added to the value of the portfolio investment being assessed to derive the fair value of the holding company held by the Company.

Fair value hierarchy - Financial instruments measured at fair value

The table below analyses the underlying investments held by the associates measured at fair value at the reporting date by the level in the fair value hierarchy into which the fair value measurement is categorised. Debt securities are also included, as these are also stated at fair value with the Board assessing the fair value of the total investment, which includes debt and equity. The amounts are based on the values recognised in the statement of financial position of the associates. All fair value measurements below are recurring.

 
                                                       Level 1      Level 3        Total 
 31 July 2020                                              GBP          GBP          GBP 
------------------------------------------------   -----------  -----------  ----------- 
 Financial assets at fair value through 
  profit or loss 
 Unquoted private equity investments (including 
  debt)                                                      -   22,179,014   22,179,014 
 Third party private debt fund investment                    -    1,393,452    1,393,452 
 Quoted private equity investments                  57,306,094            -   57,306,094 
 Investments at fair value through profit 
  or loss                                           57,306,094   23,572,466   80,878,560 
-------------------------------------------------  -----------  -----------  ----------- 
 
 Other asset and liabilities                                 -    1,229,208    1,229,208 
 Total investments at fair value through 
  profit or loss                                    57,306,094   24,801,674   82,107,768 
-------------------------------------------------  -----------  -----------  ----------- 
 
                                                       Level 1      Level 3        Total 
 31 January 2020                                           GBP          GBP          GBP 
------------------------------------------------   -----------  -----------  ----------- 
 Financial assets at fair value through 
  profit or loss 
 Unquoted private equity investments (including 
  debt)                                                      -   23,892,971   23,892,971 
 Third party private debt fund investment                    -    1,512,259    1,512,259 
 Quoted private equity investments                  57,227,830            -   57,227,830 
 Investments at fair value through profit 

(MORE TO FOLLOW) Dow Jones Newswires

September 08, 2020 02:16 ET (06:16 GMT)

DJ EPE Special Opportunities Limited Interim Review -7-

 Nominated advisor and broker fees               (29,072)            (26,994)          (55,740) 
 Listing fees                                    (21,755)            (60,636)          (81,591) 
 Net foreign exchange loss                           (15)             (1,753)           (2,360) 
-------------------------------------  ------------------  ------------------  ---------------- 
 Other expenses                                 (342,047)           (905,733)       (1,257,703) 
-------------------------------------  ------------------  ------------------  ---------------- 
 
   8    Investments at fair value through profit or loss 
 
                                             31 July 2020         31 January    31 July 2019 
                                                                        2020 
                                              (unaudited)          (audited)     (unaudited) 
                                                      GBP                GBP             GBP 
 Investments at fair value through 
  profit and loss                              82,107,768         83,382,923      59,965,060 
                                               82,107,768        83,382,923       59,965,060 
                                          ---------------  -----------------  -------------- 
 
 
 Investment roll forward schedule 
                                       31 July 2020        31 January    31 July 2019 
                                        (unaudited)    2020 (audited) 
                                                                          (unaudited) 
 
 Investments at fair value as at 
  1 February                             83,382,923        34,793,620      34,793,620 
------------------------------------  -------------  ----------------  -------------- 
 Purchase of investments                  1,000,000           700,000         700,000 
 Sale of investments                              -         (942,505)               - 
 Distributions                                    -         (768,650)               - 
 Buyout of accrued carried interest               -         9,846,284       9,846,284 
 Fair value movements                   (2,439,705)        39,568,491      14,453,782 
 Loan to associates                         164,550           185,683         171,374 
 Investments at fair value as at 
  31 July/January                        82,107,768        83,382,923      59,965,060 
------------------------------------  -------------  ----------------  -------------- 
 

Investment in associates

Investments in associates comprise equity and debt investments in ESO Investments 1 LP, ESO Alternative Investments LP, ESO Investments 1 Limited, ESO Investments 2 Limited, ESO Investments (DP) Limited and ESO Investments (PC) LLP which are stated at fair value through profit and loss. The associates have also accounted for their equity and debt investments at fair value.

   9    Fair value of financial instruments 

The Company determines the fair value of financial instruments with reference to IPEV guidelines and the valuation principles of IFRS 13 (Fair Value Measurement). The Company measures fair value using the IFRS 13 fair value hierarchy, which reflects the significance and certainty of the inputs used in deriving the fair value of an asset:

-- Level 1: Inputs that are quoted market prices (unadjusted) in active markets for identical instruments;

-- Level 2: Inputs other than quoted prices included within Level 1 that are observable either directly (i.e. as prices) or indirectly (i.e. derived from prices). This category includes instruments valued using quoted market prices in active markets for similar instruments, quoted prices for identical or similar instruments in markets that are considered less than active or other valuation techniques in which all significant inputs are directly or indirectly observable from market data;

-- Level 3: Inputs that are unobservable. This category includes all instruments for which the valuation technique includes inputs not based on observable data and the unobservable inputs have a significant effect on the instruments valuation. This category includes instruments that are valued based on quoted prices for similar instruments but for which significant unobservable adjustments or assumptions are required to reflect differences between the instruments.

Valuation framework

The Company employs the valuation framework detailed below with respect to the measurement of fair values. A valuation of the Companys investments is prepared by the Investment Advisor with reference to IPEV guidelines and the valuation principles of IFRS 13 (Fair Value Measurement). The Investment Advisor recommends these valuations to the Board of Directors. The Board of Directors considers the valuations recommended by the Investment Advisor, determines any amendments required and thereafter adopts the fair values presented in the Companys financial statements.

Quoted equity investments

Quoted investments traded in an active market are classified as Level 1 in the IFRS 13 fair value hierarchy. The Companys investment in Luceco is a Level 1 asset. For Level 1 assets, the Company calculates the holding value from the latest market price (without adjustment).

Unquoted private equity investments and third party fund investments

Private equity investments and third party fund investments are classified as Level 3 in the IFRS 13 fair value hierarchy. The Companys investments in Whittard, David Phillips, Pharmacy2U and European Capital Private Debt Fund are considered to be Level 3 assets. Various valuation techniques may be applied in determining the fair value of investments held as Level 3 in the fair value hierarchy;

-- For recently acquired assets, the Company considers the investment cost an applicable fair value for the asset;

-- For underperforming assets, the Company considers the net asset or recovery valuation more applicable, in particular where the business performance be contingent on shareholder financial support;

-- For performing assets, the Company considers the market approach to be the most appropriate with a specific focus on trading comparables, applied on a forward basis. The Company will also consider transaction comparables, applied on a historic basis;

-- For assets managed and valued by third party managers, the Company reviews the valuation methodology of the third party manager. If deemed appropriate and consistent with the Companys reporting standards, the Company will use the valuation prepared by the third party manager.

The Investment Advisor believe that it is appropriate to apply an illiquidity discount to the multiples of comparable companies when using them to calculate valuations for small, private companies. This discount adjusts for the difference in size between generally larger comparable companies and the smaller assets being valued. The illiquidity discount also incorporates the premium the market gives to comparable companies for being freely traded or listed securities. The Investment Advisor has determined between 15 per cent. and 25 per cent. to be an appropriate illiquidity discount with reference to market data and transaction multiples seen in the market in which the Investment Advisor operates.

Where portfolio investments are held through subsidiary/associate holding companies, the net assets of the holding company are added to the value of the portfolio investment being assessed to derive the fair value of the holding company held by the Company.

Fair value hierarchy - Financial instruments measured at fair value

The table below analyses the underlying investments held by the associates measured at fair value at the reporting date by the level in the fair value hierarchy into which the fair value measurement is categorised. Debt securities are also included, as these are also stated at fair value with the Board assessing the fair value of the total investment, which includes debt and equity. The amounts are based on the values recognised in the statement of financial position of the associates. All fair value measurements below are recurring.

 
                                                       Level 1      Level 3        Total 
 31 July 2020                                              GBP          GBP          GBP 
------------------------------------------------   -----------  -----------  ----------- 
 Financial assets at fair value through 
  profit or loss 
 Unquoted private equity investments (including 
  debt)                                                      -   22,179,014   22,179,014 
 Third party private debt fund investment                    -    1,393,452    1,393,452 
 Quoted private equity investments                  57,306,094            -   57,306,094 
 Investments at fair value through profit 
  or loss                                           57,306,094   23,572,466   80,878,560 
-------------------------------------------------  -----------  -----------  ----------- 
 
 Other asset and liabilities                                 -    1,229,208    1,229,208 
 Total investments at fair value through 
  profit or loss                                    57,306,094   24,801,674   82,107,768 
-------------------------------------------------  -----------  -----------  ----------- 
 
                                                       Level 1      Level 3        Total 
 31 January 2020                                           GBP          GBP          GBP 
------------------------------------------------   -----------  -----------  ----------- 
 Financial assets at fair value through 
  profit or loss 
 Unquoted private equity investments (including 
  debt)                                                      -   23,892,971   23,892,971 
 Third party private debt fund investment                    -    1,512,259    1,512,259 
 Quoted private equity investments                  57,227,830            -   57,227,830 
 Investments at fair value through profit 

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 Nominated advisor and broker fees               (29,072)            (26,994)          (55,740) 
 Listing fees                                    (21,755)            (60,636)          (81,591) 
 Net foreign exchange loss                           (15)             (1,753)           (2,360) 
-------------------------------------  ------------------  ------------------  ---------------- 
 Other expenses                                 (342,047)           (905,733)       (1,257,703) 
-------------------------------------  ------------------  ------------------  ---------------- 
 
   8    Investments at fair value through profit or loss 
 
                                             31 July 2020         31 January    31 July 2019 
                                                                        2020 
                                              (unaudited)          (audited)     (unaudited) 
                                                      GBP                GBP             GBP 
 Investments at fair value through 
  profit and loss                              82,107,768         83,382,923      59,965,060 
                                               82,107,768        83,382,923       59,965,060 
                                          ---------------  -----------------  -------------- 
 
 
 Investment roll forward schedule 
                                       31 July 2020        31 January    31 July 2019 
                                        (unaudited)    2020 (audited) 
                                                                          (unaudited) 
 
 Investments at fair value as at 
  1 February                             83,382,923        34,793,620      34,793,620 
------------------------------------  -------------  ----------------  -------------- 
 Purchase of investments                  1,000,000           700,000         700,000 
 Sale of investments                              -         (942,505)               - 
 Distributions                                    -         (768,650)               - 
 Buyout of accrued carried interest               -         9,846,284       9,846,284 
 Fair value movements                   (2,439,705)        39,568,491      14,453,782 
 Loan to associates                         164,550           185,683         171,374 
 Investments at fair value as at 
  31 July/January                        82,107,768        83,382,923      59,965,060 
------------------------------------  -------------  ----------------  -------------- 
 

Investment in associates

Investments in associates comprise equity and debt investments in ESO Investments 1 LP, ESO Alternative Investments LP, ESO Investments 1 Limited, ESO Investments 2 Limited, ESO Investments (DP) Limited and ESO Investments (PC) LLP which are stated at fair value through profit and loss. The associates have also accounted for their equity and debt investments at fair value.

   9    Fair value of financial instruments 

The Company determines the fair value of financial instruments with reference to IPEV guidelines and the valuation principles of IFRS 13 (Fair Value Measurement). The Company measures fair value using the IFRS 13 fair value hierarchy, which reflects the significance and certainty of the inputs used in deriving the fair value of an asset:

-- Level 1: Inputs that are quoted market prices (unadjusted) in active markets for identical instruments;

-- Level 2: Inputs other than quoted prices included within Level 1 that are observable either directly (i.e. as prices) or indirectly (i.e. derived from prices). This category includes instruments valued using quoted market prices in active markets for similar instruments, quoted prices for identical or similar instruments in markets that are considered less than active or other valuation techniques in which all significant inputs are directly or indirectly observable from market data;

-- Level 3: Inputs that are unobservable. This category includes all instruments for which the valuation technique includes inputs not based on observable data and the unobservable inputs have a significant effect on the instruments valuation. This category includes instruments that are valued based on quoted prices for similar instruments but for which significant unobservable adjustments or assumptions are required to reflect differences between the instruments.

Valuation framework

The Company employs the valuation framework detailed below with respect to the measurement of fair values. A valuation of the Companys investments is prepared by the Investment Advisor with reference to IPEV guidelines and the valuation principles of IFRS 13 (Fair Value Measurement). The Investment Advisor recommends these valuations to the Board of Directors. The Board of Directors considers the valuations recommended by the Investment Advisor, determines any amendments required and thereafter adopts the fair values presented in the Companys financial statements.

Quoted equity investments

Quoted investments traded in an active market are classified as Level 1 in the IFRS 13 fair value hierarchy. The Companys investment in Luceco is a Level 1 asset. For Level 1 assets, the Company calculates the holding value from the latest market price (without adjustment).

Unquoted private equity investments and third party fund investments

Private equity investments and third party fund investments are classified as Level 3 in the IFRS 13 fair value hierarchy. The Companys investments in Whittard, David Phillips, Pharmacy2U and European Capital Private Debt Fund are considered to be Level 3 assets. Various valuation techniques may be applied in determining the fair value of investments held as Level 3 in the fair value hierarchy;

-- For recently acquired assets, the Company considers the investment cost an applicable fair value for the asset;

-- For underperforming assets, the Company considers the net asset or recovery valuation more applicable, in particular where the business performance be contingent on shareholder financial support;

-- For performing assets, the Company considers the market approach to be the most appropriate with a specific focus on trading comparables, applied on a forward basis. The Company will also consider transaction comparables, applied on a historic basis;

-- For assets managed and valued by third party managers, the Company reviews the valuation methodology of the third party manager. If deemed appropriate and consistent with the Companys reporting standards, the Company will use the valuation prepared by the third party manager.

The Investment Advisor believe that it is appropriate to apply an illiquidity discount to the multiples of comparable companies when using them to calculate valuations for small, private companies. This discount adjusts for the difference in size between generally larger comparable companies and the smaller assets being valued. The illiquidity discount also incorporates the premium the market gives to comparable companies for being freely traded or listed securities. The Investment Advisor has determined between 15 per cent. and 25 per cent. to be an appropriate illiquidity discount with reference to market data and transaction multiples seen in the market in which the Investment Advisor operates.

Where portfolio investments are held through subsidiary/associate holding companies, the net assets of the holding company are added to the value of the portfolio investment being assessed to derive the fair value of the holding company held by the Company.

Fair value hierarchy - Financial instruments measured at fair value

The table below analyses the underlying investments held by the associates measured at fair value at the reporting date by the level in the fair value hierarchy into which the fair value measurement is categorised. Debt securities are also included, as these are also stated at fair value with the Board assessing the fair value of the total investment, which includes debt and equity. The amounts are based on the values recognised in the statement of financial position of the associates. All fair value measurements below are recurring.

 
                                                       Level 1      Level 3        Total 
 31 July 2020                                              GBP          GBP          GBP 
------------------------------------------------   -----------  -----------  ----------- 
 Financial assets at fair value through 
  profit or loss 
 Unquoted private equity investments (including 
  debt)                                                      -   22,179,014   22,179,014 
 Third party private debt fund investment                    -    1,393,452    1,393,452 
 Quoted private equity investments                  57,306,094            -   57,306,094 
 Investments at fair value through profit 
  or loss                                           57,306,094   23,572,466   80,878,560 
-------------------------------------------------  -----------  -----------  ----------- 
 
 Other asset and liabilities                                 -    1,229,208    1,229,208 
 Total investments at fair value through 
  profit or loss                                    57,306,094   24,801,674   82,107,768 
-------------------------------------------------  -----------  -----------  ----------- 
 
                                                       Level 1      Level 3        Total 
 31 January 2020                                           GBP          GBP          GBP 
------------------------------------------------   -----------  -----------  ----------- 
 Financial assets at fair value through 
  profit or loss 
 Unquoted private equity investments (including 
  debt)                                                      -   23,892,971   23,892,971 
 Third party private debt fund investment                    -    1,512,259    1,512,259 
 Quoted private equity investments                  57,227,830            -   57,227,830 
 Investments at fair value through profit 

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  or loss                                           57,227,830   25,405,230   82,633,060 
-------------------------------------------------  -----------  -----------  ----------- 
 
 Other asset and liabilities                                 -      749,863      749,863 
 Total investments at fair value through 
  profit or loss                                    57,227,830   26,155,093   83,382,923 
-------------------------------------------------  -----------  -----------  ----------- 
 

The following table, detailing the value of portfolio investments only, shows a reconciliation of the opening balances to the closing balances for fair value measurements in level 3 of the fair value hierarchy for the underlying investments held by the associates.

 
                                                     31 July 2020          31 January 
                                                      (unaudited)                2020 
                                                                            (audited) 
 Unlisted private equity investments                          GBP                 GBP 
  (including debt) 
----------------------------------------  ---  ------------------  ------------------ 
 Balance as at 1 February                              25,405,230          14,209,340 
 Additions to investments                               1,000,000             700,000 
 Capital distributions from investments                 (207,348)           (247,693) 
 Change in fair value through profit 
  and loss                                            (2,625,416)          10,743,583 
 Balance as at 31 July / 31 January                    23,572,466          25,405,230 
---------------------------------------------  ------------------  ------------------ 
 

Significant unobservable inputs used in measuring fair value

The table below sets out information about significant unobservable inputs used at 31 July 2020 in measuring financial instruments categorised as Level 3 in the fair value hierarchy.

 
             Description               Fair value at 31    Valuation technique 
                                           July 2020 
------------------------------------                     ---------------------- 
                                                    GBP 
------------------------------------  -----------------  ---------------------- 
 Unquoted private equity investments                      Sales/EBITDA multiple 
  (including debt)                           22,179,014 
 Third party private debt fund                            Reported net asset 
  investment                                  1,393,452    value 
------------------------------------  -----------------  ---------------------- 
 

Significant unobservable inputs are developed as follows:

-- Trading comparable multiple: valuation multiples used by other market participants when pricing comparable assets. Relevant comparable assets are selected from public companies determined to be proximate to the Companys investment based on similarity of sector, size, geography or other relevant factors. The valuation multiple for a comparable company is determined by calculating the enterprise value of the company implied by its market price as at the reporting date and dividing by the relevant financial metric (sales or EBITDA).

-- Recovery valuation: the value estimated to able to be recovered by stakeholders in the event of the trade out of the business. The total amount available to be distributed is determined by calculating the value able to be realised from the liquidation of the business assets and the sale of any ring fenced divisions.

-- Reported net asset value: for assets managed and valued by a third party, the manager provides the Company with periodic valuations of the Companys investment. The Company reviews the valuation methodology of the third party manager. If deemed appropriate and consistent with the Companys reporting standards, the Board will adopt the valuation prepared by the third party manger.

Although management believes that its estimates of fair value are appropriate, the use of different methodologies or assumptions could lead to different measurements of fair value. For fair value measurements of Level 3 assets, changing one or more of the assumptions used to reasonably possible alternative assumptions would have the following effects on the Level 3 investment valuations:

-- For the Companys investment in mature Level 3 assets, the valuations used in the preparation of the financial statements imply an average EV to EBITDA multiple of 7.8x (weighted by each assets total valuation) (2020: 5.6x). The key unobservable inputs into the preparation of the valuation of mature Level 3 assets was the EV to EBITDA multiple applied to the assets financial forecasts. If these inputs had been taken to be 25 per cent. higher, the value of the Level 3 assets and profit for the period would have been GBP4,374,948 higher. If these inputs had been taken to be 25 per cent. lower, the value of the Level 3 assets and profit for the period would have been GBP4,374,948 lower. A corresponding increase or decrease in the assets financial forecasts would have a similar impact on the Companys assets and profit.

-- For the Companys investment in growth Level 3 assets, the valuations used in the preparation of the financial statements imply an average EV to sales multiple of 0.5x (weighted by each assets total valuation) (2020: 0.5x). The key unobservable inputs into the preparation of the valuation of growth Level 3 assets were the EV to sales multiple applied to the assets financial forecasts. If these inputs had been taken to be 25 per cent. higher, the value of the Level 3 assets and profit for the period would have been GBP218,529 higher. If these inputs had been taken to be 25 per cent. lower, the value of the Level 3 assets and profit for the period would have been GBP218,529 lower. A corresponding increase or decrease in the assets financial forecasts would have a similar impact on the Companys assets and profit.

Financial instruments not measured at fair value

The carrying value of short-term financial assets and financial liabilities (cash, debtors and creditors) approximate their fair value. The carrying value of the convertible and the new loan note instruments are also considered to approximate fair value.

10 Share capital

 
                              31 July 2020             31 January 2020            31 July 2019 
                               (unaudited)                (audited)                (unaudited) 
                        ------------------------  ------------------------  ------------------------ 
                              Number         GBP        Number         GBP        Number         GBP 
---------------------   ------------  ----------  ------------  ----------  ------------  ---------- 
 Authorised share 
  capital 
 Ordinary shares 
  of 5p each              45,000,000   2,250,000    45,000,000   2,250,000    45,000,000   2,250,000 
----------------------  ------------  ----------  ------------  ----------  ------------  ---------- 
 Called up, allotted 
  and fully paid 
 Ordinary shares 
  of 5p each              34,616,554   1,730,828    34,539,061   1,726,953   34,539,061    1,726,953 
 Ordinary shares 
  of 5p each held 
  in treasury            (1,668,251)           -   (1,668,251)           -   (1,303,528)    (19,364) 
                          32,948,303   1,730,828    32,870,810   1,726,953    33,235,533   1,707,589 
                        ------------  ----------  ------------  ----------  ------------  ---------- 
 

11 Basic and diluted loss per share (pence)

Basic loss per share is calculated by dividing the loss of the Company for the period attributable to the ordinary shareholders of (GBP4,172,887) (for the period ended 31 July 2019: profit of GBP12,615,895; for the year ended 31 January 2020: profit of GBP36,224,743) divided by the weighted average number of shares outstanding during the period of 32,885,795 after excluding treasury shares (for the period ended 31 July 2019: 31,149,678; for the year ended 31 January 2020: 32,095,510).

Diluted loss per share is calculated by dividing the loss of the Company for the period attributable to ordinary shareholders of (GBP4,172,887) (for the period ended 31 July 2019: profit of GBP12,615,895; for the year ended 31 January 2020: profit of GBP36,224,743) divided by the weighted average number of ordinary shares outstanding during the period, as adjusted for the effects of all dilutive potential ordinary shares, of 32,885,795 after excluding treasury shares (for the period ended 31 July 2019: 31,149,678; for the year ended 31 January 2020: 32,095,510).

12 NAV per share (pence)

The Companys NAV per share of 303.04 pence (for the period ended 31 July 2019: 245.54 pence; for the year ended 31 January 2020: 317.18 pence) is based on the net assets of the Company at the period end of GBP99,846,187 (for the period ended 31 July 2019: GBP81,606,657; for the year ended 31 January 2020: GBP104,257,996) divided by the shares in issue at the end of the period of 32,948,303 after excluding treasury shares (for the period ended 31 July 2019: 33,235,533; for the year ended 31 January 2020: 32,870,810).

The Companys diluted NAV per share of 303.04 pence (for the period ended 31 July 2019: 245.54 pence; for the year ended 31 January 2020: 317.18 pence) is based on the net assets of the Company at the period end of GBP99,846,187 (for the period ended 31 July 2019: GBP81,606,657; for the year ended 31 January 2020: GBP104,257,996) divided by the shares in issue at the end of the period, as adjusted for the effects of dilutive potential ordinary shares of 32,948,303 after excluding treasury shares (for the period ended 31 July 2019: 33,235,533; for the year ended 31 January 2020: 32,870,810).

13 Non-current liabilities

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  or loss                                           57,227,830   25,405,230   82,633,060 
-------------------------------------------------  -----------  -----------  ----------- 
 
 Other asset and liabilities                                 -      749,863      749,863 
 Total investments at fair value through 
  profit or loss                                    57,227,830   26,155,093   83,382,923 
-------------------------------------------------  -----------  -----------  ----------- 
 

The following table, detailing the value of portfolio investments only, shows a reconciliation of the opening balances to the closing balances for fair value measurements in level 3 of the fair value hierarchy for the underlying investments held by the associates.

 
                                                     31 July 2020          31 January 
                                                      (unaudited)                2020 
                                                                            (audited) 
 Unlisted private equity investments                          GBP                 GBP 
  (including debt) 
----------------------------------------  ---  ------------------  ------------------ 
 Balance as at 1 February                              25,405,230          14,209,340 
 Additions to investments                               1,000,000             700,000 
 Capital distributions from investments                 (207,348)           (247,693) 
 Change in fair value through profit 
  and loss                                            (2,625,416)          10,743,583 
 Balance as at 31 July / 31 January                    23,572,466          25,405,230 
---------------------------------------------  ------------------  ------------------ 
 

Significant unobservable inputs used in measuring fair value

The table below sets out information about significant unobservable inputs used at 31 July 2020 in measuring financial instruments categorised as Level 3 in the fair value hierarchy.

 
             Description               Fair value at 31    Valuation technique 
                                           July 2020 
------------------------------------                     ---------------------- 
                                                    GBP 
------------------------------------  -----------------  ---------------------- 
 Unquoted private equity investments                      Sales/EBITDA multiple 
  (including debt)                           22,179,014 
 Third party private debt fund                            Reported net asset 
  investment                                  1,393,452    value 
------------------------------------  -----------------  ---------------------- 
 

Significant unobservable inputs are developed as follows:

-- Trading comparable multiple: valuation multiples used by other market participants when pricing comparable assets. Relevant comparable assets are selected from public companies determined to be proximate to the Companys investment based on similarity of sector, size, geography or other relevant factors. The valuation multiple for a comparable company is determined by calculating the enterprise value of the company implied by its market price as at the reporting date and dividing by the relevant financial metric (sales or EBITDA).

-- Recovery valuation: the value estimated to able to be recovered by stakeholders in the event of the trade out of the business. The total amount available to be distributed is determined by calculating the value able to be realised from the liquidation of the business assets and the sale of any ring fenced divisions.

-- Reported net asset value: for assets managed and valued by a third party, the manager provides the Company with periodic valuations of the Companys investment. The Company reviews the valuation methodology of the third party manager. If deemed appropriate and consistent with the Companys reporting standards, the Board will adopt the valuation prepared by the third party manger.

Although management believes that its estimates of fair value are appropriate, the use of different methodologies or assumptions could lead to different measurements of fair value. For fair value measurements of Level 3 assets, changing one or more of the assumptions used to reasonably possible alternative assumptions would have the following effects on the Level 3 investment valuations:

-- For the Companys investment in mature Level 3 assets, the valuations used in the preparation of the financial statements imply an average EV to EBITDA multiple of 7.8x (weighted by each assets total valuation) (2020: 5.6x). The key unobservable inputs into the preparation of the valuation of mature Level 3 assets was the EV to EBITDA multiple applied to the assets financial forecasts. If these inputs had been taken to be 25 per cent. higher, the value of the Level 3 assets and profit for the period would have been GBP4,374,948 higher. If these inputs had been taken to be 25 per cent. lower, the value of the Level 3 assets and profit for the period would have been GBP4,374,948 lower. A corresponding increase or decrease in the assets financial forecasts would have a similar impact on the Companys assets and profit.

-- For the Companys investment in growth Level 3 assets, the valuations used in the preparation of the financial statements imply an average EV to sales multiple of 0.5x (weighted by each assets total valuation) (2020: 0.5x). The key unobservable inputs into the preparation of the valuation of growth Level 3 assets were the EV to sales multiple applied to the assets financial forecasts. If these inputs had been taken to be 25 per cent. higher, the value of the Level 3 assets and profit for the period would have been GBP218,529 higher. If these inputs had been taken to be 25 per cent. lower, the value of the Level 3 assets and profit for the period would have been GBP218,529 lower. A corresponding increase or decrease in the assets financial forecasts would have a similar impact on the Companys assets and profit.

Financial instruments not measured at fair value

The carrying value of short-term financial assets and financial liabilities (cash, debtors and creditors) approximate their fair value. The carrying value of the convertible and the new loan note instruments are also considered to approximate fair value.

10 Share capital

 
                              31 July 2020             31 January 2020            31 July 2019 
                               (unaudited)                (audited)                (unaudited) 
                        ------------------------  ------------------------  ------------------------ 
                              Number         GBP        Number         GBP        Number         GBP 
---------------------   ------------  ----------  ------------  ----------  ------------  ---------- 
 Authorised share 
  capital 
 Ordinary shares 
  of 5p each              45,000,000   2,250,000    45,000,000   2,250,000    45,000,000   2,250,000 
----------------------  ------------  ----------  ------------  ----------  ------------  ---------- 
 Called up, allotted 
  and fully paid 
 Ordinary shares 
  of 5p each              34,616,554   1,730,828    34,539,061   1,726,953   34,539,061    1,726,953 
 Ordinary shares 
  of 5p each held 
  in treasury            (1,668,251)           -   (1,668,251)           -   (1,303,528)    (19,364) 
                          32,948,303   1,730,828    32,870,810   1,726,953    33,235,533   1,707,589 
                        ------------  ----------  ------------  ----------  ------------  ---------- 
 

11 Basic and diluted loss per share (pence)

Basic loss per share is calculated by dividing the loss of the Company for the period attributable to the ordinary shareholders of (GBP4,172,887) (for the period ended 31 July 2019: profit of GBP12,615,895; for the year ended 31 January 2020: profit of GBP36,224,743) divided by the weighted average number of shares outstanding during the period of 32,885,795 after excluding treasury shares (for the period ended 31 July 2019: 31,149,678; for the year ended 31 January 2020: 32,095,510).

Diluted loss per share is calculated by dividing the loss of the Company for the period attributable to ordinary shareholders of (GBP4,172,887) (for the period ended 31 July 2019: profit of GBP12,615,895; for the year ended 31 January 2020: profit of GBP36,224,743) divided by the weighted average number of ordinary shares outstanding during the period, as adjusted for the effects of all dilutive potential ordinary shares, of 32,885,795 after excluding treasury shares (for the period ended 31 July 2019: 31,149,678; for the year ended 31 January 2020: 32,095,510).

12 NAV per share (pence)

The Companys NAV per share of 303.04 pence (for the period ended 31 July 2019: 245.54 pence; for the year ended 31 January 2020: 317.18 pence) is based on the net assets of the Company at the period end of GBP99,846,187 (for the period ended 31 July 2019: GBP81,606,657; for the year ended 31 January 2020: GBP104,257,996) divided by the shares in issue at the end of the period of 32,948,303 after excluding treasury shares (for the period ended 31 July 2019: 33,235,533; for the year ended 31 January 2020: 32,870,810).

The Companys diluted NAV per share of 303.04 pence (for the period ended 31 July 2019: 245.54 pence; for the year ended 31 January 2020: 317.18 pence) is based on the net assets of the Company at the period end of GBP99,846,187 (for the period ended 31 July 2019: GBP81,606,657; for the year ended 31 January 2020: GBP104,257,996) divided by the shares in issue at the end of the period, as adjusted for the effects of dilutive potential ordinary shares of 32,948,303 after excluding treasury shares (for the period ended 31 July 2019: 33,235,533; for the year ended 31 January 2020: 32,870,810).

13 Non-current liabilities

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  or loss                                           57,227,830   25,405,230   82,633,060 
-------------------------------------------------  -----------  -----------  ----------- 
 
 Other asset and liabilities                                 -      749,863      749,863 
 Total investments at fair value through 
  profit or loss                                    57,227,830   26,155,093   83,382,923 
-------------------------------------------------  -----------  -----------  ----------- 
 

The following table, detailing the value of portfolio investments only, shows a reconciliation of the opening balances to the closing balances for fair value measurements in level 3 of the fair value hierarchy for the underlying investments held by the associates.

 
                                                     31 July 2020          31 January 
                                                      (unaudited)                2020 
                                                                            (audited) 
 Unlisted private equity investments                          GBP                 GBP 
  (including debt) 
----------------------------------------  ---  ------------------  ------------------ 
 Balance as at 1 February                              25,405,230          14,209,340 
 Additions to investments                               1,000,000             700,000 
 Capital distributions from investments                 (207,348)           (247,693) 
 Change in fair value through profit 
  and loss                                            (2,625,416)          10,743,583 
 Balance as at 31 July / 31 January                    23,572,466          25,405,230 
---------------------------------------------  ------------------  ------------------ 
 

Significant unobservable inputs used in measuring fair value

The table below sets out information about significant unobservable inputs used at 31 July 2020 in measuring financial instruments categorised as Level 3 in the fair value hierarchy.

 
             Description               Fair value at 31    Valuation technique 
                                           July 2020 
------------------------------------                     ---------------------- 
                                                    GBP 
------------------------------------  -----------------  ---------------------- 
 Unquoted private equity investments                      Sales/EBITDA multiple 
  (including debt)                           22,179,014 
 Third party private debt fund                            Reported net asset 
  investment                                  1,393,452    value 
------------------------------------  -----------------  ---------------------- 
 

Significant unobservable inputs are developed as follows:

-- Trading comparable multiple: valuation multiples used by other market participants when pricing comparable assets. Relevant comparable assets are selected from public companies determined to be proximate to the Companys investment based on similarity of sector, size, geography or other relevant factors. The valuation multiple for a comparable company is determined by calculating the enterprise value of the company implied by its market price as at the reporting date and dividing by the relevant financial metric (sales or EBITDA).

-- Recovery valuation: the value estimated to able to be recovered by stakeholders in the event of the trade out of the business. The total amount available to be distributed is determined by calculating the value able to be realised from the liquidation of the business assets and the sale of any ring fenced divisions.

-- Reported net asset value: for assets managed and valued by a third party, the manager provides the Company with periodic valuations of the Companys investment. The Company reviews the valuation methodology of the third party manager. If deemed appropriate and consistent with the Companys reporting standards, the Board will adopt the valuation prepared by the third party manger.

Although management believes that its estimates of fair value are appropriate, the use of different methodologies or assumptions could lead to different measurements of fair value. For fair value measurements of Level 3 assets, changing one or more of the assumptions used to reasonably possible alternative assumptions would have the following effects on the Level 3 investment valuations:

-- For the Companys investment in mature Level 3 assets, the valuations used in the preparation of the financial statements imply an average EV to EBITDA multiple of 7.8x (weighted by each assets total valuation) (2020: 5.6x). The key unobservable inputs into the preparation of the valuation of mature Level 3 assets was the EV to EBITDA multiple applied to the assets financial forecasts. If these inputs had been taken to be 25 per cent. higher, the value of the Level 3 assets and profit for the period would have been GBP4,374,948 higher. If these inputs had been taken to be 25 per cent. lower, the value of the Level 3 assets and profit for the period would have been GBP4,374,948 lower. A corresponding increase or decrease in the assets financial forecasts would have a similar impact on the Companys assets and profit.

-- For the Companys investment in growth Level 3 assets, the valuations used in the preparation of the financial statements imply an average EV to sales multiple of 0.5x (weighted by each assets total valuation) (2020: 0.5x). The key unobservable inputs into the preparation of the valuation of growth Level 3 assets were the EV to sales multiple applied to the assets financial forecasts. If these inputs had been taken to be 25 per cent. higher, the value of the Level 3 assets and profit for the period would have been GBP218,529 higher. If these inputs had been taken to be 25 per cent. lower, the value of the Level 3 assets and profit for the period would have been GBP218,529 lower. A corresponding increase or decrease in the assets financial forecasts would have a similar impact on the Companys assets and profit.

Financial instruments not measured at fair value

The carrying value of short-term financial assets and financial liabilities (cash, debtors and creditors) approximate their fair value. The carrying value of the convertible and the new loan note instruments are also considered to approximate fair value.

10 Share capital

 
                              31 July 2020             31 January 2020            31 July 2019 
                               (unaudited)                (audited)                (unaudited) 
                        ------------------------  ------------------------  ------------------------ 
                              Number         GBP        Number         GBP        Number         GBP 
---------------------   ------------  ----------  ------------  ----------  ------------  ---------- 
 Authorised share 
  capital 
 Ordinary shares 
  of 5p each              45,000,000   2,250,000    45,000,000   2,250,000    45,000,000   2,250,000 
----------------------  ------------  ----------  ------------  ----------  ------------  ---------- 
 Called up, allotted 
  and fully paid 
 Ordinary shares 
  of 5p each              34,616,554   1,730,828    34,539,061   1,726,953   34,539,061    1,726,953 
 Ordinary shares 
  of 5p each held 
  in treasury            (1,668,251)           -   (1,668,251)           -   (1,303,528)    (19,364) 
                          32,948,303   1,730,828    32,870,810   1,726,953    33,235,533   1,707,589 
                        ------------  ----------  ------------  ----------  ------------  ---------- 
 

11 Basic and diluted loss per share (pence)

Basic loss per share is calculated by dividing the loss of the Company for the period attributable to the ordinary shareholders of (GBP4,172,887) (for the period ended 31 July 2019: profit of GBP12,615,895; for the year ended 31 January 2020: profit of GBP36,224,743) divided by the weighted average number of shares outstanding during the period of 32,885,795 after excluding treasury shares (for the period ended 31 July 2019: 31,149,678; for the year ended 31 January 2020: 32,095,510).

Diluted loss per share is calculated by dividing the loss of the Company for the period attributable to ordinary shareholders of (GBP4,172,887) (for the period ended 31 July 2019: profit of GBP12,615,895; for the year ended 31 January 2020: profit of GBP36,224,743) divided by the weighted average number of ordinary shares outstanding during the period, as adjusted for the effects of all dilutive potential ordinary shares, of 32,885,795 after excluding treasury shares (for the period ended 31 July 2019: 31,149,678; for the year ended 31 January 2020: 32,095,510).

12 NAV per share (pence)

The Companys NAV per share of 303.04 pence (for the period ended 31 July 2019: 245.54 pence; for the year ended 31 January 2020: 317.18 pence) is based on the net assets of the Company at the period end of GBP99,846,187 (for the period ended 31 July 2019: GBP81,606,657; for the year ended 31 January 2020: GBP104,257,996) divided by the shares in issue at the end of the period of 32,948,303 after excluding treasury shares (for the period ended 31 July 2019: 33,235,533; for the year ended 31 January 2020: 32,870,810).

The Companys diluted NAV per share of 303.04 pence (for the period ended 31 July 2019: 245.54 pence; for the year ended 31 January 2020: 317.18 pence) is based on the net assets of the Company at the period end of GBP99,846,187 (for the period ended 31 July 2019: GBP81,606,657; for the year ended 31 January 2020: GBP104,257,996) divided by the shares in issue at the end of the period, as adjusted for the effects of dilutive potential ordinary shares of 32,948,303 after excluding treasury shares (for the period ended 31 July 2019: 33,235,533; for the year ended 31 January 2020: 32,870,810).

13 Non-current liabilities

(MORE TO FOLLOW) Dow Jones Newswires

September 08, 2020 02:16 ET (06:16 GMT)

DJ EPE Special Opportunities Limited Interim Review -9-

The Company has issued Unsecured Loan Notes ("ULN") which pay interest at 7.5 per cent. per annum and are redeemable on July 23 July 2022 (subject to voluntary early redemption by the Company). At 31 July 2020, GBP3,987,729 of ULNs in principal amount were outstanding. Issue costs totalling GBP144,236 have been offset against the value of the loan note instrument and are being amortised over the life of the instrument. The total issue costs expensed in the period ended 31 July 2020 was GBP10,303 (for the period ended 31 July 2019: GBP10,303; for the year ended 31 Jan 2020: GBP20,605). The carrying value of the ULNs in issue at the period end was GBP3,946,520 (for the period ended 31 July 2019: GBP3,925,914; for the year ended 31 Jan 2020: GBP3,936,217). The total interest expense on the ULNs for the period is GBP159,842 (for the period ended 31 July 2019: GBP159,842; for the year ended 31 Jan 2020: GBP319,685). This includes the amortisation of the issue costs.

14 Related parties

Directors fees expense during the period amounted to GBP77,000 (for the period ended 31 July 2019: GBP77,000; for the year ended 31 January 2020: GBP154,264) of which GBP12,833 is accrued as at 31 July 2020 (for the period ended 31 July 2019: GBP12,834; for the year ended 31 January 2020: GBP12,833).

Certain Directors of the Company and other participants are incentivised in the form of equity settled share-based payment transactions, through a Joint Share Ownership Plan (see note 6).

Five of the Directors have interests in the shares of the Company as at 31 July 2020 (31 July 2019: four). Nicholas Wilson holds 131,265 ordinary shares (31 July 2019: 125,987), Robert Quayle holds 112,577 ordinary shares (31 July 2019: 107,201), Clive Spears holds 133,270 ordinary shares (31 July 2019: 126,493), Heather Bestwick holds 19,263 ordinary shares (31 July 2019: 13,888) and David Pirouet holds 11,162 shares (31 July 2019: nil).

15 Subsequent events

On 19 August 2020, Luceco, the Companys largest asset, updated the market on its nancial position and outlook in a RNS announcement. Luceco announced performance ahead of market expectations, with guidance for full year 2020 Adjusted Operating Pro t increased from at least GBP18 million to at least GBP23 million.

On 1 September 2020, the Company completed a GBP1.9 million investment in Atlantic Credit Opportunities Fund ("ACOF"), a commingled distressed credit fund which, subject to regulatory approval will be managed by a subsidiary of the Investment Advisor. The Company will hold its investment in ACOF through ESO Alternative Investments LP ("ESO AI LP"). ESO AI LPs acquisition will diversify the Companys asset class exposure, in line with the Companys stated investment strategy.

Company Information

 
 Directors                            Administrator and Company Address 
 C.L. Spears (Chairman)               Langham Hall Fund Management 
                                       (Jersey) Limited 
 H. Bestwick                          Liberation House 
 D.R. Pirouet                         Castle Street, St Helier 
 R.B.M. Quayle                        Jersey JE1 2LH 
 N.V. Wilson 
 
 
 Investment Advisor                   Nominated Advisor and Broker 
 EPIC Private Equity LLP              Numis Securities Limited 
 Audrey House                         10 Paternoster Square 
 16-20 Ely Place                      London EC4M 7LT 
 London EC1N 6SN 
 
 
 Auditors and Reporting Accountants   Registered Agent (Bermuda) 
 KPMG Audit LLC                       Conyers Dill & Pearman 
 Heritage Court                       Clarendon House, 2 Church Street 
 41 Athol Street                      Hamilton HM 11 
 Douglas                              Bermuda 
 Isle of Man IM1 1LA 
 
 
 Bankers                              Registrar and CREST Providers 
 Barclays Bank plc                    Computershare Investor Services 
                                       (Jersey) Limited 
 1 Churchill Place                    Queensway House 
 Canary Wharf                         Hilgrove Street 
 London E14 5HP                       St. Helier JE1 1ES 
 
 HSBC Bank plc                        Investor Relations 
 1st Floor                            Richard Spiegelberg 
 60 Queen Victoria Street             Cardew Company 
 London EC4N 4TR                      5 Chancery Lane 
                                      London EC4A 1BL 
 
 Santander International 
 PO Box 545 
 19-21 Commercial Street 
 St Helier, Jersey, JE4 8XG 
 

This information is provided by RNS, the news service of the . RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the use the personal data you provide us, please see our Privacy Policy.

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(END) Dow Jones Newswires

September 08, 2020 02:16 ET (06:16 GMT)

DJ EPE Special Opportunities Limited Interim Review -9-

The Company has issued Unsecured Loan Notes ("ULN") which pay interest at 7.5 per cent. per annum and are redeemable on July 23 July 2022 (subject to voluntary early redemption by the Company). At 31 July 2020, GBP3,987,729 of ULNs in principal amount were outstanding. Issue costs totalling GBP144,236 have been offset against the value of the loan note instrument and are being amortised over the life of the instrument. The total issue costs expensed in the period ended 31 July 2020 was GBP10,303 (for the period ended 31 July 2019: GBP10,303; for the year ended 31 Jan 2020: GBP20,605). The carrying value of the ULNs in issue at the period end was GBP3,946,520 (for the period ended 31 July 2019: GBP3,925,914; for the year ended 31 Jan 2020: GBP3,936,217). The total interest expense on the ULNs for the period is GBP159,842 (for the period ended 31 July 2019: GBP159,842; for the year ended 31 Jan 2020: GBP319,685). This includes the amortisation of the issue costs.

14 Related parties

Directors fees expense during the period amounted to GBP77,000 (for the period ended 31 July 2019: GBP77,000; for the year ended 31 January 2020: GBP154,264) of which GBP12,833 is accrued as at 31 July 2020 (for the period ended 31 July 2019: GBP12,834; for the year ended 31 January 2020: GBP12,833).

Certain Directors of the Company and other participants are incentivised in the form of equity settled share-based payment transactions, through a Joint Share Ownership Plan (see note 6).

Five of the Directors have interests in the shares of the Company as at 31 July 2020 (31 July 2019: four). Nicholas Wilson holds 131,265 ordinary shares (31 July 2019: 125,987), Robert Quayle holds 112,577 ordinary shares (31 July 2019: 107,201), Clive Spears holds 133,270 ordinary shares (31 July 2019: 126,493), Heather Bestwick holds 19,263 ordinary shares (31 July 2019: 13,888) and David Pirouet holds 11,162 shares (31 July 2019: nil).

15 Subsequent events

On 19 August 2020, Luceco, the Companys largest asset, updated the market on its nancial position and outlook in a RNS announcement. Luceco announced performance ahead of market expectations, with guidance for full year 2020 Adjusted Operating Pro t increased from at least GBP18 million to at least GBP23 million.

On 1 September 2020, the Company completed a GBP1.9 million investment in Atlantic Credit Opportunities Fund ("ACOF"), a commingled distressed credit fund which, subject to regulatory approval will be managed by a subsidiary of the Investment Advisor. The Company will hold its investment in ACOF through ESO Alternative Investments LP ("ESO AI LP"). ESO AI LPs acquisition will diversify the Companys asset class exposure, in line with the Companys stated investment strategy.

Company Information

 
 Directors                            Administrator and Company Address 
 C.L. Spears (Chairman)               Langham Hall Fund Management 
                                       (Jersey) Limited 
 H. Bestwick                          Liberation House 
 D.R. Pirouet                         Castle Street, St Helier 
 R.B.M. Quayle                        Jersey JE1 2LH 
 N.V. Wilson 
 
 
 Investment Advisor                   Nominated Advisor and Broker 
 EPIC Private Equity LLP              Numis Securities Limited 
 Audrey House                         10 Paternoster Square 
 16-20 Ely Place                      London EC4M 7LT 
 London EC1N 6SN 
 
 
 Auditors and Reporting Accountants   Registered Agent (Bermuda) 
 KPMG Audit LLC                       Conyers Dill & Pearman 
 Heritage Court                       Clarendon House, 2 Church Street 
 41 Athol Street                      Hamilton HM 11 
 Douglas                              Bermuda 
 Isle of Man IM1 1LA 
 
 
 Bankers                              Registrar and CREST Providers 
 Barclays Bank plc                    Computershare Investor Services 
                                       (Jersey) Limited 
 1 Churchill Place                    Queensway House 
 Canary Wharf                         Hilgrove Street 
 London E14 5HP                       St. Helier JE1 1ES 
 
 HSBC Bank plc                        Investor Relations 
 1st Floor                            Richard Spiegelberg 
 60 Queen Victoria Street             Cardew Company 
 London EC4N 4TR                      5 Chancery Lane 
                                      London EC4A 1BL 
 
 Santander International 
 PO Box 545 
 19-21 Commercial Street 
 St Helier, Jersey, JE4 8XG 
 

This information is provided by RNS, the news service of the . RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the use the personal data you provide us, please see our Privacy Policy.

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(END) Dow Jones Newswires

September 08, 2020 02:16 ET (06:16 GMT)

DJ EPE Special Opportunities Limited Interim Review -9-

The Company has issued Unsecured Loan Notes ("ULN") which pay interest at 7.5 per cent. per annum and are redeemable on July 23 July 2022 (subject to voluntary early redemption by the Company). At 31 July 2020, GBP3,987,729 of ULNs in principal amount were outstanding. Issue costs totalling GBP144,236 have been offset against the value of the loan note instrument and are being amortised over the life of the instrument. The total issue costs expensed in the period ended 31 July 2020 was GBP10,303 (for the period ended 31 July 2019: GBP10,303; for the year ended 31 Jan 2020: GBP20,605). The carrying value of the ULNs in issue at the period end was GBP3,946,520 (for the period ended 31 July 2019: GBP3,925,914; for the year ended 31 Jan 2020: GBP3,936,217). The total interest expense on the ULNs for the period is GBP159,842 (for the period ended 31 July 2019: GBP159,842; for the year ended 31 Jan 2020: GBP319,685). This includes the amortisation of the issue costs.

14 Related parties

Directors fees expense during the period amounted to GBP77,000 (for the period ended 31 July 2019: GBP77,000; for the year ended 31 January 2020: GBP154,264) of which GBP12,833 is accrued as at 31 July 2020 (for the period ended 31 July 2019: GBP12,834; for the year ended 31 January 2020: GBP12,833).

Certain Directors of the Company and other participants are incentivised in the form of equity settled share-based payment transactions, through a Joint Share Ownership Plan (see note 6).

Five of the Directors have interests in the shares of the Company as at 31 July 2020 (31 July 2019: four). Nicholas Wilson holds 131,265 ordinary shares (31 July 2019: 125,987), Robert Quayle holds 112,577 ordinary shares (31 July 2019: 107,201), Clive Spears holds 133,270 ordinary shares (31 July 2019: 126,493), Heather Bestwick holds 19,263 ordinary shares (31 July 2019: 13,888) and David Pirouet holds 11,162 shares (31 July 2019: nil).

15 Subsequent events

On 19 August 2020, Luceco, the Companys largest asset, updated the market on its nancial position and outlook in a RNS announcement. Luceco announced performance ahead of market expectations, with guidance for full year 2020 Adjusted Operating Pro t increased from at least GBP18 million to at least GBP23 million.

On 1 September 2020, the Company completed a GBP1.9 million investment in Atlantic Credit Opportunities Fund ("ACOF"), a commingled distressed credit fund which, subject to regulatory approval will be managed by a subsidiary of the Investment Advisor. The Company will hold its investment in ACOF through ESO Alternative Investments LP ("ESO AI LP"). ESO AI LPs acquisition will diversify the Companys asset class exposure, in line with the Companys stated investment strategy.

Company Information

 
 Directors                            Administrator and Company Address 
 C.L. Spears (Chairman)               Langham Hall Fund Management 
                                       (Jersey) Limited 
 H. Bestwick                          Liberation House 
 D.R. Pirouet                         Castle Street, St Helier 
 R.B.M. Quayle                        Jersey JE1 2LH 
 N.V. Wilson 
 
 
 Investment Advisor                   Nominated Advisor and Broker 
 EPIC Private Equity LLP              Numis Securities Limited 
 Audrey House                         10 Paternoster Square 
 16-20 Ely Place                      London EC4M 7LT 
 London EC1N 6SN 
 
 
 Auditors and Reporting Accountants   Registered Agent (Bermuda) 
 KPMG Audit LLC                       Conyers Dill & Pearman 
 Heritage Court                       Clarendon House, 2 Church Street 
 41 Athol Street                      Hamilton HM 11 
 Douglas                              Bermuda 
 Isle of Man IM1 1LA 
 
 
 Bankers                              Registrar and CREST Providers 
 Barclays Bank plc                    Computershare Investor Services 
                                       (Jersey) Limited 
 1 Churchill Place                    Queensway House 
 Canary Wharf                         Hilgrove Street 
 London E14 5HP                       St. Helier JE1 1ES 
 
 HSBC Bank plc                        Investor Relations 
 1st Floor                            Richard Spiegelberg 
 60 Queen Victoria Street             Cardew Company 
 London EC4N 4TR                      5 Chancery Lane 
                                      London EC4A 1BL 
 
 Santander International 
 PO Box 545 
 19-21 Commercial Street 
 St Helier, Jersey, JE4 8XG 
 

This information is provided by RNS, the news service of the . RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the use the personal data you provide us, please see our Privacy Policy.

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