Frustrating year for EPE Special Opportunities – The poor performance of the company’s largest asset has brought down the NAV and share price of EPE Special Opportunities (ESO), it reports in its annual statement for the year to 31st January 2018. However, moves are in place to improve performance.
The NAV at 31 January 2018 was 234.43 pence per share, a decrease of 35.6% on the NAV per share of 364.13 pence as at 31 January 2017. The share price at 31 January 2018 was 160.00 pence, representing a decrease of 40.4% on the share price of 268.50 pence as at 31 January 2017.
Despite positive performance from the rest of the portfolio, the company attributes most of the underperformance to a 58.8% fall in value of the Company’s largest asset, Luceco plc, a manufacturer and distributor of electrical accessories and LED lighting in the UK and internationally, supplying both the retail and wholesale markets. Luceco represents about 30.0%. of the Company’s NAV (at a share price of 60.0 pence for Luceco),with the balance held in other investments and cash. The company has come into some trading difficulties and issued negative guidance to the market during the year. EPE noted that in its last annual report, Luceco announced that they have taken measures to improve the situation and, in February 2018, it appointed a new chief financial officer from multinational building materials distribution company Ferguson plc.
In October 2016, EPE Special Opportunities reported the IPO of Luceco, Click here to read the full report of the IPO.
Prior to the Offer, EPE Special Opportunities held 48.6% of the shares of Luceco plc and loans of GBP10 million through ESO Investments 1 LP, in which it is the sole investor. Subsequent to the secondary sale of shares to new investors, they held 24.3% of the quoted entity.
Other holdings, including Whittard of Chelsea, Process Components and Pharmacy2U have performed well. Other transactions during the year included the commitment of €2.5 million to European Capital Private Debt Fund LP in a secondary transaction and a new investment in David Phillips. David Phillips is a market-leading business-to-business provider of furniture and furnishing services to the UK property sector, supplying owners, managers, agents and developers in the residential, student accommodation and social housing sectors.
ESO : Frustrating year for EPE Special Opportunities