Trading Update

RNS Number : 6498V

EPE Special Opportunities PLC

17 January 2012

 



EPE Special Opportunities plc

Trading Update

Tuesday 17 January 2012

Ahead of its financial year end on 31 January 2012, EPE Special Opportunities plc ("ESO plc") today releases a trading update.

Overall, the companies in the investment portfolio are continuing to trade in line with or ahead of budget. Indicia, a marketing services company, finished 2011 ahead of budget and achieved an exceptional performance at the Direct Marketing Association Awards, winning three Gold Awards and becoming the first agency outside of London ever to win the major Grand Prix Award. The newly appointed CEO of Palatinate Schools has made substantial progress since joining in June 2011, and the business is seeking to build on a good performance in 2011 by expanding its operations in the short to medium term. Process Components finished the year to 30 June 2011 significantly ahead of budget, performing particularly well in the US market. The business remains ahead of budget in the first five months of its current financial year, and represents a strong platform for growth via consolidation in a highly fragmented niche sector. Nexus Industries continues to perform in line with expectations and following the completion of its Chinese production facility has a strong outlook for 2012.

Retail performance indicators have been challenging in the run up to and during the key December trading period, with retailers being forced to discount heavily to attract consumer sales. Despite this, Whittard of Chelsea is trading well and has made significant progress since 2010, demonstrating like-for-like sales growth of 3% in UK retail, 52% internationally and 37% online.

ESO plc also announces that ESO Investments 1 LP ("ESO 1 LP"), a limited partnership in which it is the majority limited partner, has exited its investment in Past Times Holdings Limited ("Past Times") via an administration. The exit is expected to return circa £2.4 million in total to ESO 1 LP and also removes a £3.0 million guarantee given by ESO plc to Lloyds for the working capital facilities provided to Past Times. Total return, including £3.1 million previously returned by Past Times, equates to 0.6x the cost of the investment. The exit reduces ESO plc's portfolio allocation to the Consumer and Retail sector from 27% as at 31 July 2011 to 16% as at 31 December 2011, which the directors of ESO plc view as a positive outcome for the Company given the poor outlook for UK economy and the retail sector in particular in 2012.

The Net Asset Value per Ordinary Share (the "NAV") is estimated at 81.62p as at 31 December 2011, a reduction of 3.01p versus the NAV as at 30 November 2011.

The exit of Past Times, in combination with the exits of Pinnacle Regeneration Group Limited (1.8x MM and 112% IRR) and Ryness Electrical Limited (1.7x MM and 89% IRR) in June 2011, enables ESO plc to continue refocusing on creating value in its core portfolio and making new investments in growth, buyout, distressed and PIPE (Private Investment in Public Equity) strategies.

Enquiries:

EPIC Private Equity LLP                      James Henderson [phone]

IoMA                                                    Philip Scales [phone]

Cardew Group                                     Richard Spiegelberg / Alexandra Stoneham [phone]

Numis Securities Ltd                            Tel: [phone]   

Nominated Advisor:                                Stuart Skinner / Hugh Jonathan

Corporate Broker:                                   Alex Ham    

 

END

 

 

TSTLLFERLRIRLIF