EPE Special Opportunities Limited Update on COVID-19 and Financial Reporting (7541H)
March 26 2020 - 10:27AM
UK Regulatory
TIDMESO TIDMEO.P TIDMEC.P TIDMEL.P
RNS Number : 7541H
EPE Special Opportunities Limited
26 March 2020
EPE Special Opportunities Limited
Update on COVID-19 and Financial Reporting
The Board of EPE Special Opportunities Limited ("ESO" or the
"Company") would like to update the Company's shareholders on how
the spread of COVID-19 is impacting the Company and its
investments.
Financial Reporting
The Board of ESO note the guidance recently issued by the
Financial Conduct Authority and the Financial Reporting Council
recommending a two-week moratorium on reporting for listed
companies.
The Board has adopted this guidance and therefore will not
release audited financial statements for the year ended 31 January
2020 before the end of this moratorium (6 April 2020).
The Company confirms that it expects to announce results in line
with those set out in the Company's Trading Statement dated 12
February 2020.
Impact of COVID-19
The long-term impact of COVID-19 on the Company and its
portfolio remains uncertain.
The Investment Advisor ("IA") is working closely with the
management teams of portfolio companies to respond to this dynamic
situation and is apprising the Board regularly as the
epidemiological situation develops.
The Board would like to provide the following commentary to
update shareholders.
-- The portfolio has taken all appropriate steps to protect and
promote the wellbeing of colleagues (including adherence with local
government advice).
-- The Company maintains strong liquidity of GBP26.4 million (as
at 31 January 2020) and operates with modest committed
outgoings.
-- The Company has GBP3.9 million of outstanding ULNs and could
in extremis defer the proposed repayment of GBP2.0 million in July
2020 to July 2022. The Company has no other third-party debt
outstanding.
-- The Board and IA have reviewed the business continuity plans
of the Company's key operational service providers and are
satisfied of their resilience.
-- The portfolio has taken early and prudent steps to manage its
liquidity, financial position and trading outlook; these steps are
under active review by the IA and the management of the portfolio
companies.
-- The portfolio has a low level of third party leverage (0.7x
last twelve month EBITDA to net third party debt as at 31 January
2020) and has strong relationships with all external lenders.
-- Luceco plc, the Company's largest asset, updated the market
on its financial position and outlook in a RNS announcement on 24
March 2020. Luceco has traded on budget for first quarter of 2020,
has modest financial debt of 1.1x net debt to EBITDA and
significant available liquidity with GBP24 million undrawn against
committed banking facilities (as at 31 December 2019).
-- In the interest of employee safety and in line with
government advice, Whittard has temporarily closed its 46 retail
stores. The business traded well for the first quarter of the 2020
and is currently trading ahead of prior years and budget in its
ecommerce channel. The business continues to review its fixed and
variable costs and will benefit from the announced government
schemes regarding furloughing, business rates and other taxation.
The business has no third party debt.
-- David Philips has reduced trading activity in line with
demand from the UK property market. The business traded well in the
first quarter of the 2020 and has a strong order book for the
remainder of the year. The business continues to review its fixed
and variable costs and will benefit from the announced government
schemes regarding furloughing, business rates and other
taxation.
-- ESO and the IA is prepared to support portfolio companies
financially and operationally over the coming months.
Clive Spears, Chairman, commented: "The COVID-19 pandemic is
presenting the global economy with unparalleled challenges. The
Company is well positioned for the uncertainty with strong cash
liquidity. The Portfolio benefits from low leverage but faces an
evolving trading and operational environment. I would like to thank
the Investment Advisor, EPIC Private Equity, the Company's other
advisors and the management of the portfolio companies for their
hard work and dedication in this challenging period - which is
unprecedented in recent memory. I wish all shareholders the best of
health at this difficult time."
The person responsible for releasing this information on behalf
of the Company is Amanda Robinson of Langham Hall Fund Management
(Jersey) Limited.
Enquiries:
EPIC Private Equity LLP +44 (0) 207 269 8865
Alex Leslie
Langham Hall Fund Management (Jersey) +44 (0) 153 488 5200
Limited Amanda Robinson
Cardew Group Limited +44 (0) 207 930 0777
Richard Spiegelberg
Numis Securities Limited +44 (0) 207 260 1000
Nominated Advisor: Stuart Skinner / Huw Jeremy
Corporate Broker: Charles Farquhar
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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