EPE Special Opportunities (ESO) has announced its annual results for the year ended 31 January 2025. The company’s NAV rose by 1%, although shares fell 10%, driven by increasing market volatility. The company has continued to prioritise liquidity during the ongoing challenging economic environment. It had cash balances of £11.9m as at 31 January 2025, which are available to support the portfolio, meet committed obligations and deploy into attractive investment opportunities. Net third-party debt in the underlying portfolio stands at 1.2x EBITDA in aggregate.
Discussing the results, the investment advisor noted:
“The company and its portfolio have faced a challenging environment during the year ended 31 January 2025 against the backdrop of an uncertain and complex economic landscape. The board and investment advisor continue to manage the company prudently, prioritising liquidity and securing the financial position of the portfolio. Given the economic context, overall M&A activity has remained subdued and market valuations have been depressed, limiting the opportunities for new acquisitions and disposals in the period. The operational improvements and progress made against long-term value creation plans within the portfolio position our businesses for sustained growth as macroeconomic conditions stabilise. The company has taken action to de-risk its capital structure and improved liquidity by electing to extend the maturity of its £4.0m unsecured loan notes to July 2025. This supported the repurchase of 3.0m of its ZDP shares, decreasing the redemption amount payable at maturity in December 2026.”
Mr Clive Spears, chairman, commented: “Due to the complex business conditions faced in the period, the priority of the board, investment advisor, and portfolio management teams has been to ensure the resilience of the company and its portfolio against these headwinds. Value creation plans are in place within the portfolio to generate future growth, with close monitoring of progress maintained. Prudent action has been taken to preserve liquidity and to manage the capital structure of the company. The board would like to extend their thanks to the investment advisor and portfolio management teams for their efforts through a demanding period and look forward to updating shareholders on further progress at the half year.”
ESO: Market volatility creates challenges for EPE Special Opportunities
