EPE Special Opps Ltd - Trading Update
Announcement provided by
EPE Special Opportunities Ltd · EO.P08/02/2024 16:45
EPE Special Opportunities Limited
("ESO" or the "Company")
Trading Statement
The Board of EPE Special Opportunities is pleased to provide an update on the Company's performance for the full year ended 31 January 2024.
· The macro-economic environment has continued to be complex throughout the year ended 31 January 2024, creating headwinds for the Company and its portfolio. Economic uncertainty has underpinned an adverse environment for new investments or disposals within the portfolio at acceptable pricing. As a result, the Board and Investment Advisor have prioritised positioning the portfolio to navigate turbulent market conditions and focussed on operating improvements and liquidity, while progressing longer term growth strategies which will allow the Company to capitalise as the trading environment begins to stabilise. The Board and Investment Advisor are encouraged by early signs of stabilisation in key indicators and look forward to further improvement over the coming period.
· The unaudited estimate of the Net Asset Value ("NAV") per share of the Company as at 31 January 2024 was
· The share price of the Company as at 31 January 2024 was
· In January 2024, Luceco released a trading update for the year ended 31 December 2023, announcing trading ahead of market expectations. The group announced sales of
· Whittard of
· The Rayware Group ("Rayware") has experienced challenging trading conditions throughout the period. Financial performance was impacted by customer destocking, acute supply chain costs, depressed consumer confidence and well publicised inflationary cost pressures. Rayware's capital structure has therefore remained stretched due to depressed EBITDA, interest exposure and mezzanine finance, stapled to the structure at acquisition. In the period ESO invested
· David Phillips has continued to develop its built-to-rent and project-based divisions, delivering year-on-year sales growth. Profitability has improved from better product sourcing, pricing and a focus on recurring sales channels. Efficiency has been further enhanced through prudent actions taken to reduce the cost base.
· Pharmacy2U ("P2U") demonstrated an increased rate of organic growth in its core NHS online prescription division in the period. In October 2023, P2U announced the acquisition of LloydsDirect, the
· Denzel's has focussed on developing its team and infrastructure in the period to support its ambitious growth plans, whilst at the same time achieving strong year-on-year sales growth. The business relaunched its website and has seen a significant increase in online marketing and transactional activity to support its early successes in offline retail channels.
· In January 2024, EPIC Acquisition Corp ("EAC") announced that it will return all residual capital to third parties and wind up. A perfect storm of
· In July 2023, the Company completed the realisation of its holdings in Atlantic Credit Opportunities Fund and in August 2023 completed the realisation of its holdings in Prelude Structured Alternatives Master Fund LP, both realised at carrying value.
· The Company had cash balances of
· As at 31 January 2024, the Company's unquoted portfolio was valued at a weighted average EBITDA to enterprise value multiple of 7.2x (excluding assets investing for growth) and the portfolio continues with a low level of third party leverage, which is commensurate with current market conditions, with net debt at 1.4x EBITDA in aggregate.
Mr Clive Spears, Chairman, commented: "The Company has faced a complicated operating environment in the period, but the Board and Investment Advisor have prudently managed its positioning of the portfolio and the Company with particular focus on maintaining liquidity and structural or operational support as required at company and portfolio level. The Board would like to express its gratitude to the Investment Advisor and the portfolio management teams for their diligence during another turbulent year which has been particularly demanding to ensure investee companies remain on track. The Board will continue to monitor developments and looks forward to updating shareholders at the half year."
The person responsible for releasing this information on behalf of the Company is Amanda Robinson of Langham Hall Fund Management (Jersey) Limited.
Note 1: Company liquidity is stated inclusive of cash held by subsidiaries in which the Company is the sole investor.
Enquiries:
EPIC Investment Partners 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 |
Corporate Broker: |
Charles Farquhar |
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