EPE Special Opportunities says its NAV at 31 January 2017 was 364.13 pence per share, an increase of 127.6% on the NAV per share of 160.00 pence as at 31 January 2016. The share price at 31 January 2017 was 268.50 pence, representing an increase of 115.7% on the share price of 124.50 pence as at 31 January 2016.
the statement points out that the NAV per share has benefited from the successful initial public offering of their largest asset, Luceco plc. The IPO was announced on 17 October 2016 at an implied market capitalisation of GBP209.0 million. Prior to the IPO, ESO plc held 48.6% of the shares of Luceco plc and loans of GBP10.0 million. Subsequent to the secondary sale of shares to new investors, ESO plc now holds 24.3% of the newly quoted entity. The IPO implied a return to ESO plc of 24.4x Money Multiple and 75.6% IRR, of which 12.3x Money Multiple and 57.9% IRR has been realised. They think that the retention of 24.3% of Luceco plc is expected to be accretive to ESO plc shareholders over the medium to long-term. Shares in Luceco plc have performed strongly since IPO and on 31 January 2017 closed at 178.75p, up 37.5% on the IPO valuation of 130.00p.
Whittard of Chelsea had a good finish to 2016 with strengthening sales across its UK retail estate and e-commerce channels. The improving performance was in part due to macro factors, such as the increased tourism custom seen across UK retail, and business specific initiatives, such as the launch of its Chinese e-commerce presence and a strong festive product range. Process Components had a strong second half of 2016 and order intake remains encouraging. The business has successfully brought the manufacture of its equipment range in-house, providing both margin and supply chain control benefits.
On 4 July 2016, the Company announced the completion of a merger of Pharmacy2U and ChemD Holdings Limited, which trades as ChemistDirect.co.uk (“Chemist Direct”). In conjunction with the merger, the Business Growth Fund has invested GBP10.0 million to support the new business’ ambitious growth plans. The enterprise value of the new business equates to GBP43.3 million and the merger creates a clear leader in the UK online pharmacy sector, with 1.5 million customers and unrivalled experience in digital pharmacy services. The Chief Executive of the new business is ChemistDirect.co.uk Chief Executive Mark Livingstone, who brings a strong track record in innovative internet-based businesses including LOVEFiLM and Graze.com. Subsequent to the merger, synergies have been realised in line with management projections.
On 8 March 2017, the Company completed a secondary acquisition of a EUR2.5 million commitment in European Capital’s Private Debt Fund (“ECPD”) via ESO Alternative Investments LP, a new partnership established to hold the Company’s primary and secondary fund investments. ECPD provides private debt for European small and medium sized enterprises, predominantly in France and the UK. The Fund has commitments of EUR473.0 million. The acquisition of the Company’s first Limited Partner interest in ECPD will provide a reasonable yield and will further diversify the Company’s exposure to different asset classes.
Mr. Geoffrey Vero, Chairman, commented: “The Board are pleased with the performance of the portfolio over the period. The IPO of Luceco plc was a particular highlight and represents a significant milestone in the Company’s development, providing an uplift in the NAV, reducing asset concentration risk and providing greater liquidity. The Investment Advisor and Board continue to actively pursue new investment opportunities“.
ESO : Luceco boosts EPE Special Opportunities results