Informe financiero anual
EPE Oportunidades Especiales Limitada
("ESO" o la "Compañía")
Reports and Accounts for the year ended 31 January 2024
The Board of EPE Special Opportunities is pleased to announce the Company's Report and Accounts for the year ended 31 January 2024.
Resumen
· The macro-economic environment has continued to be complex throughout the year ended 31 January 2024, creating headwinds for the Company and its portfolio. Economic uncertainty has underpinned an adverse environment for new investments or disposals within the portfolio at acceptable pricing. As a result, the Board and Investment Advisor have prioritised positioning the portfolio to navigate turbulent market conditions, focussing on operating improvements and liquidity, alongside progressing longer term growth strategies which will allow the Company to capitalise as the trading environment begins to stabilise. The Board and Investment Advisor are encouraged by early signs of stabilisation in key indicators and are cautiously optimistic of further improvement over the coming period.
· El valor liquidativo ("NAV") por acción de la empresa a 31 de enero de 2024 era de 324 peniques, lo que representa una disminución del 1 %. sobre el NAV por acción de 328 peniques al 31 de enero de 2023.
· El precio de las acciones de la Compañía al 31 de enero de 2024 era de 165 peniques, lo que representa una disminución del 3 por ciento. sobre el precio de la acción de 170 peniques al 31 de enero de 2023.
· In March 2024, Luceco released its results for the year ended 31 December 2023, announcing trading ahead of market expectations. The group announced sales of £209 million, with Q4 trading 9.5 per cent. ahead of the prior year. The business generated operating profit of £24 million, ahead of expectations. The business achieved strong cash generation driven by higher operating profit and improved working capital efficiency which supported further deleveraging, with net debt of 0.6x LTM EBITDA as at 31 December 2023. An excellent achievement and well below Luceco's target range of 1.0-2.0x net debt to EBITDA.
· Whittard of Chelsea ("Whittard") delivered a strong performance in the period led by growth in its UK retail channel, due to strengthening domestic and tourist footfall, further enhanced by a new pop-up store in London Paddington station over the Christmas period. Whittard has continued to progress its international strategy, with the business entering a strategic partnership with Rayware to develop its overseas presence and with its South Korean franchise partner opening a new store in Samsung Town in April 2023. The business made two senior appointments in January 2024, including a new Chief Financial Officer and Chief Marketing Officer.
· The Rayware Group ("Rayware") has experienced challenging trading conditions throughout the period. Financial performance was impacted by customer destocking, acute supply chain costs, depressed consumer confidence and well publicised inflationary cost pressures. Rayware's capital structure has therefore remained under pressure due to depressed EBITDA, interest exposure and mezzanine finance raised at acquisition. ESO invested £3.35 million in the period to reduce external debt and has a contingent guarantee of £1.75 million outstanding. More positively, in support of the international growth strategy, a new Head of US Sales and Marketing was appointed in June 2023 and a new Head of Export was appointed in February 2024.
· David Phillips has continued to develop its built-to-rent and project-based divisions, delivering year-on-year sales growth. Profitability has improved from better product sourcing, pricing and a focus on recurring sales channels. Efficiency has been further enhanced through prudent actions taken to reduce the cost base.
· Pharmacy2U ("P2U") demonstrated an increased rate of organic growth in its core NHS online prescription division in the period. In October 2023, P2U announced the acquisition of LloydsDirect, the UK's second largest online pharmacy, from McKesson UK. In March 2024, the UK Competition and Markets Authority provided clearance for the transaction.
· Denzel's has focussed on developing its team and infrastructure in the period to support its ambitious growth plans, whilst at the same time achieving strong year-on-year sales growth. The business relaunched its website and has seen a significant increase in online marketing and transactional activity to support its early successes in offline retail channels.
· In January 2024, EPIC Acquisition Corp ("EAC") announced that it will return all residual capital to third parties and wind up. A perfect storm of Ukraine, global divestment from China, economic flux from energy prices, subsequent inflation and inevitable stock market volatility made 2022 and 2023 difficult years with regards to a high conviction, high risk, capital markets product. Over the 24 month investment period, the EAC team reviewed over 250 opportunities, engaged actively with 12 targets and held over 100 investor meetings. Interesting transaction opportunities arose but could not be completed given the lack of appetite for public market transactions during the period. A disappointing end to an interesting investment product and opportunity for ESO. ESO's holding in EAC was realised at par after the year end, while the value realised from EAC Sponsor will be determined following the completion of the liquidation.
· In July 2023, the Company completed the realisation of its holdings in Atlantic Credit Opportunities Fund and in August 2023 completed the realisation of its holdings in Prelude Structured Alternatives Master Fund LP, both realised at carrying value.
· The Company had cash balances of £15.3 million1 as at 31 January 2024. The Board continues to focus on maintaining satisfactory liquidity during the ongoing period of market uncertainty. In July 2023, the Company exercised its right to extend the maturity of its £4.0 million unsecured loan notes to 23 July 2024. In July 2023, the Company also repurchased 7.5 million zero dividend preference ("ZDP") shares for a total consideration of £7.9 million. Following this buyback, the Company has 12.5 million ZDP shares remaining in issue, maturing in December 2026. The Company has no other third-party debt outstanding.
· As at 31 January 2024, the Company's unquoted portfolio was valued at a weighted average EBITDA to enterprise value multiple of 7.2x (excluding assets investing for growth) and the portfolio continues with a low level of third party leverage, which is commensurate with current market conditions, with net third party debt at 1.4x EBITDA in aggregate.
Mr Clive Spears, Chairman, commented: "The Company has faced a complicated operating environment in the period, but the Board and Investment Advisor have prudently managed its positioning of the portfolio and the Company with particular focus on maintaining liquidity and structural or operational support as required at company and portfolio level. The Board would like to thank Mr Wilson, who retired in September 2023, for his long period of service and express their gratitude for his dedication and support throughout his appointment to the Company over the last 20 years. The Board would like to express its gratitude to the Investment Advisor and the portfolio management teams for their diligence during another turbulent year which has been particularly demanding to ensure investee companies remain on track. The Board will continue to monitor developments and looks forward to updating shareholders at the half year."
La persona responsable de divulgar esta información en nombre de la Compañía es Amanda Robinson de Langham Hall Fund Management (Jersey) Limited.
Nota 1: La liquidez de la Compañía se expresa incluyendo el efectivo en poder de las subsidiarias en las que la Compañía es el único inversor
Consultas:
Socios de inversión EPIC LLP | +44 0 207 269 8865 alex leslie |
Gestión de fondos de Langham Hall (Jersey) limitada | +44 0 15 3488 5200 Amanda Robinson |
Grupo Cardew Limited | +44 0 207 930 0777 ricardo spiegelberg |
Numis Valores Limitada | +44 0 207 260 1000 |
Asesor nominado: | Estuardo Desollador |
Sector empresarial Broker: | Carlos Farquhar |
Declaración del presidente
The macro-economic environment has continued to be complex throughout the year ended 31 January 2024, creating headwinds for the Company and its portfolio. Economic uncertainty has underpinned an adverse environment for new investments or disposals within the portfolio at acceptable pricing. As a result, the Board and Investment Advisor have prioritised positioning the portfolio to navigate turbulent market conditions, focussing on operating improvements and liquidity alongside progressing longer term growth strategies which will allow the Company to capitalise as the trading environment begins to stabilise. The Board and Investment Advisor are encouraged by early signs of stabilisation in key indicators and are cautiously optimistic of further improvement over the coming period.
The Net Asset Value ("NAV") per share* of the Company as at 31 January 2024 was 324 pence, representing a decrease of 1 per cent. on the NAV per share* of 328 pence as at 31 January 2023. The share price of the Company as at 31 January 2024 was 165 pence, representing a decrease of 3 per cent. on the share price of 170 pence as at 31 January 2023. The share price of the Company represents a discount* of 49% to the NAV per share of the Company as at 31 January 2024. The Company seeks to manage the discount to NAV via capital management, including ordinary share buyback programs, as well as achieving further diversification of the investment portfolio and scale in the Company.
The Company has prudently managed its positioning of the portfolio, whilst maintaining momentum within overarching strategic initiatives to drive growth;
· Luceco plc ("Luceco") released its results for the year ended 31 December 2023 announcing sales of £209 million and an operating profit of £24 million, ahead of expectations.
· The Rayware Group ("Rayware") trading was impacted by customer destocking, supply chain, consumer confidence and inflationary pressures. A new Head of US Sales and Marketing was appointed in June 2023 and Head of Export in February 2024.
· Whittard of Chelsea ("Whittard") delivered its highest revenue under EPIC ownership, with notable gains in its UK retail channel. A new CMO and CFO were appointed in January 2024.
· David Phillips has grown sales year-on-year, driven by notable gains across the build-to-rent and project-based divisions.
· Pharmacy2U ("P2U") delivered sustained growth in its core NHS online prescription division. The acquisition of LloydsDirect promises to materially increase the scale of the platform.
· Denzel's has grown sales year-on-year and built a strong foundation to support its future growth plans. In January 2024, the business appointed an experienced Chairman to the board.
· EPIC Acquisition Corp ("EAC") announced that it will return all residual capital to third parties and wind up. ESO's holding in EAC was realised at par after the year end, while the value realised from EAC Sponsor will be determined following the completion of the liquidation.
La Compañía completó con éxito las siguientes inversiones y realizaciones en el período;
· In the year ended 31 January 2024, the Company, through its subsidiary ESO Investments 1 Limited, invested £3.35 million in Rayware, reducing the business' senior debt, and provided a contingent guarantee to Rayware's third party lenders with a balance of £1.75m outstanding as at 31 January 2024, following a £0.75 million drawdown in the period.
· In July 2023, the Company completed the realisation of its holdings in Atlantic Credit Opportunities Fund and in August 2023 completed the realisation of its holdings in Prelude Structured Alternatives Master Fund LP, both realised at carrying value.
The performance of the investment portfolio is a key driver of the Net Asset Value performance of the Company.
The Company had cash balances of £15.3 million*1 as at 31 January 2024. Maintaining liquidity has existed as a core focus for the Board, whilst the macroeconomic environment remains turbulent. In July 2023, the Company exercised its right to extend the maturity of its £4.0 million unsecured loan notes to 23 July 2024. In July 2023, the Company also repurchased 7.5 million zero dividend preference ("ZDP") shares for a total consideration of £7.9 million. Following this buyback, the Company has 12.5 million ZDP shares remaining in issue, maturing in December 2026. The Company has no other third-party debt outstanding.
The Board would like to thank Mr Wilson, who retired in September 2023, for his long period of service and express their gratitude for his dedication and support throughout his appointment to the Company over the last 20 years. The Board would like to note its appreciation of the Investment Advisor and the portfolio management teams for their efforts through a complicated period. The Board will monitor the progress of the portfolio over the coming months and looks forward to updating shareholders at the half year.
Clive lanzas
Presidente
27 de marzo de 2024
*See Alternative Performance Measures of this Report and Accounts.
[ 1 ] Company liquidity is stated inclusive of cash held in subsidiaries in which the Company is the sole investor.
Informe del asesor de inversiones
The macroeconomic backdrop remained volatile, presenting challenges for both the Company and its portfolio. A complex global economic landscape has generated a market environment inconducive to new investments or divestments. As a result, the Board and Investment Advisor have remained focused on providing support to the portfolio and their management teams, ensuring they are well-positioned from a strategic, operational and liquidity standpoint. The Company has taken action to de-risk its capital structure and improved liquidity by electing to extend the maturity of its £4.0 million unsecured loan notes to July 2024. This supported the repurchase of 7.5 million of its ZDP shares, decreasing the redemption amount payable at maturity in December 2026.
The NAV per share* of the Company as at 31 January 2024 was 324 pence, representing a decrease of 1 per cent. on the NAV per share* of 328 pence as at 31 January 2023. The share price of the Company as at 31 January 2024 was 165 pence, representing a decrease of 3 per cent. on the share price of 170 pence as at 31 January 2023.
The Company maintains satisfactory liquidity during the ongoing period of market uncertainty. The Company had cash balances of £15.3 million*1 as at 31 January 2024, 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 1.4x EBITDA* además.
The Company's unquoted private investments portfolio is valued at a weighted average enterprise value to EBITDA multiple* of 7.2x for mature assets (excluding assets investing for growth). The valuation has been derived by reference to quoted comparables, after the application of a liquidity discount to adjust for the portfolio's scale and unquoted nature. The Investment Advisor notes that the fair market value of the portfolio remains exposed to a volatile macro environment and equity market valuations.
In July 2023, the Company completed the repurchase of 7.5 million of its ZDP shares in the market (or 38 per cent. of the Company's issued ZDP share capital) at a weighted average share price of 105 pence for a total consideration of £7.9 million.
Luceco released its results for the year ended 31 December 2023 in March 2024. The business announced trading ahead of market expectations, with sales of £209 million and Q4 trading 9.5 per cent. ahead of the prior year. The business generated operating profit of £24 million, ahead of expectations. The business achieved strong cash generation driven by higher operating profit and improved working capital efficiency which supported further deleveraging, with net debt* of 0.6x LTM EBITDA* as at 31 December 2023. An excellent achievement and well below Luceco's target range of 1.0-2.0x net debt* a EBITDA*.
Rayware experienced challenging trading conditions throughout the period. Financial performance was impacted by customer destocking, acute supply chain costs, depressed consumer confidence and well publicised inflationary cost pressures. Rayware's capital structure has therefore remained bajo presión due to depressed EBITDA*, interest exposure and mezzanine finance raised at acquisition. ESO invested £3.35 million in the period to reduce external debt and has a contingent guarantee of £1.75 million outstanding. More positively, in support of the international growth strategy, a new Head of US Sales and Marketing was appointed in June 2023 and a new Head of Export was appointed in February 2024.
Whittard of Chelsea delivered a strong performance in the period led by growth in its UK retail channel, due to strengthening domestic and tourist footfall, further enhanced by a new pop-up store in London Paddington station over the Christmas period. Whittard has continued to progress its international strategy, with the business entering a strategic partnership with Rayware to develop its overseas presence and with its South Korean franchise partner opening a new store in Samsung Town in April 2023. The business made two senior appointments in January 2024, including a new Chief Financial Officer and Chief Marketing Officer.
David Phillips has continued to develop its built-to-rent and project-based divisions, delivering year-on-year sales growth. Profitability has improved from better product sourcing, pricing and a focus on recurring sales channels. Efficiency has been further enhanced through prudent actions taken to reduce the cost base.
Pharmacy2U demonstrated an increased rate of organic growth in its core NHS online prescription division in the period. In October 2023, P2U announced the acquisition of LloydsDirect, the UK's second largest online pharmacy, from McKesson UK. In March 2024, the UK Competition and Markets Authority provided clearance for the transaction.
Denzel's has focussed on developing its team and infrastructure in the period to support its ambitious growth plans, whilst at the same time achieving strong year-on-year sales growth. The business relaunched its website and has seen a significant increase in online marketing and transactional activity to support its early successes in offline retail channels. In January 2024, the business appointed an experienced Chairman to the board.
In January 2024, EPIC Acquisition Corp announced that it will return all residual capital to third parties and wind up. A perfect storm of Ukraine, global divestment from China, economic flux from energy prices, subsequent inflation and inevitable stock market volatility made 2022 and 2023 difficult years with regards to a high conviction, high risk, capital markets product. Over the 24 month investment period, the EAC team reviewed over 250 opportunities, engaged actively with 12 targets and held over 100 investor meetings. Interesting transaction opportunities arose but could not be completed given the lack of appetite for public market transactions during the period. A disappointing end to an interesting investment product and opportunity for ESO. ESO's holding in EAC was realised at par after the year end, while the value realised from EAC Sponsor will be determined following the completion of the liquidation.
The Investment Advisor continues to monitor the Company's credit fund investments. European Capital Private Debt Fund has completed its investment period and is distributing capital to the Company. In July 2023, the Company completed the realisation of its holdings in Atlantic Credit Opportunities Fund and in August 2023 completed the realisation of its holdings in Prelude Structured Alternatives Master Fund LP, both realised at carrying value.
The Investment Advisor would like to convey its thanks to all of the management teams across the portfolio for their continued commitment during a difficult period, and to the Board and the Company's shareholders for their counsel and support.
Socios de inversión EPIC LLP
Asesor de Inversiones de la Compañía
27 de marzo de 2024
*See Alternative Performance Measures of this Report and Accounts.
[ 1 ] Company liquidity is stated inclusive of cash held in subsidiaries in which the Company is the sole investor.
Informe del Comité de Auditoría y Riesgos
The Audit and Risk Committee is chaired by David Pirouet and comprises all other Directors. Mr Pirouet was appointed as Chairman of the Committee on 28 June 2019.
The Audit and Risk Committee's main duties are:
· To review and monitor the integrity of the interim and annual financial statements, interim statements, announcements and matters relating to accounting policy, laws and regulations of the Company;
· To evaluate the risks to the quality and effectiveness of the financial reporting process;
· To review the effectiveness and robustness of the internal control systems and the risk management policies and procedures of the Company;
· To review the valuation of portfolio investments;
· To review corporate governance compliance, including the Company's compliance with the QCA Corporate Governance Code and Disclosure Guidance and Transparency Rules ("DTR") reporting requirements;
· To review the nature and scope of the work to be performed by the Auditors, and their independence and objectivity; and
· To make recommendations to the Board as to the appointment and remuneration of the external auditors.
The Audit and Risk Committee has a calendar which sets out its work programme for the year to ensure it covers all areas within its remit appropriately. It met four times during the period under review to carry out its responsibilities and senior representatives of the Investment Advisor attended the meetings as required by the Audit and Risk Committee. In between meetings, the Audit and Risk Committee chairman maintains ongoing dialogue with the Investment Advisor and the lead audit partner via regular calls and physical meetings.
During the past year the Audit and Risk Committee carried out an ongoing review of its own effectiveness. These concluded that the Audit and Risk Committee is satisfactorily fulfilling its terms of reference and is operating effectively. In addition, the Audit and Risk Committee undertook a review of the Company's corporate governance and compliance with the QCA Corporate Governance Code and DTR reporting requirements.
Cuestiones contables significativas
The primary risk considered by the Audit and Risk Committee during the period under review in relation to the financial statements of the Company is the valuation of unquoted investments.
The Company's accounting policy for valuing investments is set out in notes 3i and 12. The Audit and Risk Committee examined and challenged the valuations prepared by the Investment Advisor, taking into account the latest available information on the Company's investments and the Investment Advisor's knowledge of the underlying portfolio companies through their ongoing monitoring. The Audit and Risk Committee satisfied itself that the valuation of investments had been carried out consistently with prior accounting periods, or that any change in valuation basis was appropriate, and was conducted in accordance with published industry guidelines.
The Auditors explained the results of their review of the procedures undertaken by the Investment Advisor in preparation of valuation recommendations for the Audit and Risk Committee. On the basis of their audit work, no material adjustments were identified by the Auditor.
Auditoría externa
The Audit and Risk Committee reviewed the audit plan and fees presented by the auditors, PricewaterhouseCoopers CI LLP ("PwC"), and considered their report on the financial statements. The fee for the audit of the annual report and financial statements of the Company (and subsidiaries) for the year ended 31 January 2024 is £81,200 (2023: £61,350).
The Audit and Risk Committee reviews the scope and nature of all proposed non-audit services before engagement, with a view to ensuring that none of these services have the potential to impair or appear to impair the independence of their audit role. The Audit and Risk Committee receives an annual assurance from the auditors that their independence is not compromised by the provision of such services, if applicable. During the period under review, the auditors provided non-audit services to the Company in relation to the Interim Review representing total fees of £26,350 (2023: £17,000).
On 22 April 2022, PwC were appointed as auditors to the Company from the 31 July 2023 Interim review and the 31 January 2023 audit. The Audit and Risk Committee regularly considers the need to put the audit out to tender, the auditors' fees and independence, alongside matters raised during each audit.
PwC, being eligible, have expressed their willingness to continue in office for the current financial year.
Otros proveedores de servicios
The Board will review the performance and services offered by Langham Hall, as fund administrator and EPIC Administration as fund sub-administrator on an ongoing basis. EPIC Administration completed its last triennial agreed upon procedures review during the year ended 31 January 2021. The agreed upon procedures review for 2024 is currently ongoing.
Gestión de riesgos y control interno
The Company does not have an internal audit function. The Audit and Risk Committee believes this is appropriate as all of the Company's operational functions are delegated to third party service providers who have their own internal control and risk monitoring arrangements. A report on these arrangements is prepared by each third party service provider and submitted to the Audit and Risk Committee which it reviews on behalf of the Board to support the Directors' responsibility for overall internal control. The Company does not have a whistleblowing policy and procedure in place. The Company delegates this function to the Investment Advisor who is regulated by the FCA and has such policies in place. The Audit and Risk Committee has been informed by the Investment Advisor that these policies meet the industry standard and no whistleblowing took place during the year.
Declaración de gobierno corporativo
La Junta de Oportunidades Especiales de EPE se complace en actualizar a los accionistas sobre el cumplimiento de la Compañía con el Código de Gobierno Corporativo de la Alianza de Empresas Cotizadas de 2018 (el "Código QCA").
The Company is committed to the highest standards of corporate governance, ethical practices and regulatory compliance. The Board believe that these standards are vital to generate long-term, sustainable value for the Company's shareholders. In particular the Board is concerned that the Company is governed in a manner to allow efficient and effective decision making, with robust risk management procedures.
As an investment vehicle, the Company is reliant upon its service providers for many of its operations. The Board maintains ongoing and rigorous review of these providers. Specifically the Board reviews the governance and compliance of these entities to ensure they meet the high standards of the Company.
La Junta está dedicada a mantener estos altos estándares y buscará fortalecer el gobierno de la Compañía de manera continua.
The Company's compliance with the QCA Code is included in this report and on the Company's website (www.epespecialopportunities.com). The Board deems the QCA Code sufficient and any additional listing rules and DTR disclosures are covered in this Corporate Governance report. The Company will provide annual updates on changes to compliance with the QCA Code.
The Quoted Companies Alliance has announced that a revised version of the QCA Code will apply to accounting periods commencing on or after 1 April 2024. The Company will update its corporate governance disclosures to reflect the revised code in the Report and Accounts released in the relevant future accounting period.
The FCA also progresses on changing the UK Listing Rules. The key changes include creating a single segment for listed equity securities, replacing the current premium and standard distinctions and placing additional obligations on standard listed issuers, including related party transactions as well as bringing them within scope of the UK Governance Code. The Board will monitor and make an assessment of how these changes impact the Company.
The Board has reviewed the analysis below and confirms in its view that the Company has complied with the applicable requirements of the 2018 QCA Code.
Clive lanzas
Presidente
27 de marzo de 2024
Informe de los directores
Actividad principal y constitución
EPE Special Opportunities Limited (the "Company") was incorporated in the Isle of Man as a company limited by shares under the Laws with registered number 108834C on 25 July 2003. On 23 July 2012, the Company re-registered under the Isle of Man Companies Act 2006, with registration number 008597V. On 11 September 2018, the Company re-registered under the Bermuda Companies Act 1981, with registration number 53954. The Company's ordinary shares are quoted on AIM, a market operated by the London Stock Exchange, and the Growth Market of the Aquis Stock Exchange (formerly the NEX Exchange). The Company's Unsecured Loan Notes ("ULN") are quoted on the Aquis Stock Exchange.
The Company's Zero Dividend Preference Shares ("ZDP") are admitted to trade on the main market of the London Stock Exchange (standard listed). It was identified that the 31 January 2023 accounts did not fully include certain disclosures and requirements necessitated by the main market listing of the ZDP shares. Detailed review has been performed by management to consider obligations and reporting requirements in accordance with the Listing Rules and DTR for the standard listed segment (shares) on the London Stock Exchange. The format of the annual report has been updated to include the required disclosures.
The principal activity of the Company and its subsidiaries holding vehicles (together the "Subsidiaries") is to provide long- term return on equity for its shareholders by investing between £2m and £30m in small and medium sized companies. The Company targets growth capital and buy-out opportunities, special situations and distressed transactions, deploying capital where it believes the potential for shareholder value creation to be compelling. The Company has the flexibility to invest in public as well as private companies and is also able to invest in Special Purpose Acquisition Companies ("SPACs") and third party funds. The Company will consider most industry sectors including business services, consumer and retail, financial services and the industrials sector. The portfolio is likely to be concentrated, numbering between two and ten assets at any one time, which allows the Company to allocate the necessary resource to form genuinely engaged and supportive partnerships with management teams. This active approach facilitates the delivery of truly transformational initiatives in underlying investments during the Company's period of ownership.
The Subsidiary investment holding vehicles are not consolidated in the group's financial statements in accordance with IFRS 10. The Company also controls an employee benefit trust ("EBT") established to operate the jointly owned share plan and share based payment scheme for the Company's Directors and certain employees of the Investment Advisor. The financial statements presented in this Report and Accounts are the consolidated financial statements of the Company and the EBT subsidiary. The Company and the EBT subsidiary are collectively referred to as the "Group" hereinafter.
Oficina registrada
The Company's registered office is:
Clarendon House, 2 Church Street, Hamilton HM11, Bermudas.
Lugar de negocios
Antes del 15 de mayo de 2023, la Compañía operaba y estaba controlada desde:
Liberation House, Castle Street, St Helier, Jersey JE1 2LH.
El 15 de mayo de 2023 se modificó el domicilio social de la Sociedad quedando:
Gaspe House, 66-72 Esplanade, St Helier, Jersey, Channel Islands, JE1 2LH.
Resultados del ejercicio
Results for the year are set out in the Consolidated Statement of Comprehensive Income and in the Consolidated Statement of Changes in Equity.
Dividendos
La Junta no recomienda un dividendo en relación con el año en curso (2023: cero) (ver nota 10 para más detalles).
Principios de gobierno corporativo
Please refer to the Corporate Governance Statement of this Report & Accounts. The Directors, place a high degree of importance on ensuring that the Company maintains high standards of Corporate Governance and have therefore adopted the Quoted Companies Alliance 2018 Corporate Governance Code (the "QCA Code").
The Board holds at least four meetings annually and has established an Audit and Risk Committee. The Investment Committee was agreed to be disbanded by the Board, given that the Subsidiary investment holding vehicles have their own Boards and governance structure in place. The Subsidiary investment holding vehicles' Boards review and approve the direct investments, and as such a separate Investment Committee at the Company level is not required. The Board does not intend to establish remuneration and nomination committees given the current composition of the Board and the nature of the Company's operations. The Board reviews annually the remuneration of the Directors and agrees on the level of Directors' fees.
Composición de la Junta
The Board currently comprises four non-executive directors, all of whom are independent. Clive Spears is Chairman of the Board, David Pirouet is Chairman of the Audit and Risk Committee.
Nicholas Wilson stepped down from the Board on 30 September 2023.
Comité de Auditoría y Riesgos
El Comité de Auditoría y Riesgos está compuesto por David Pirouet (Presidente del Comité) y el resto de Consejeros. El Comité de Auditoría y Riesgo proporciona un foro a través del cual los auditores externos de la Compañía informan al Directorio.
El Comité de Auditoría y Riesgos se reúne, como mínimo, dos veces al año y es responsable de considerar la designación y honorarios de los auditores externos y de acordar el alcance de la auditoría y revisar sus hallazgos. Es responsable de monitorear el cumplimiento de los requisitos contables y legales, asegurando que se mantenga un sistema efectivo de controles internos y de revisar los estados financieros anuales e intermedios de la Compañía antes de su presentación para la aprobación del Directorio. El Comité de Auditoría y Riesgo ha adoptado y cumplido con los términos de referencia extendidos implementados en la readmisión de la Compañía a AIM en agosto de 2010, según lo revisa la Junta de vez en cuando.
La Junta está satisfecha de que el Comité de Auditoría y Riesgos cuente con miembros con suficiente experiencia financiera reciente y relevante.
Principales riesgos e incertidumbres
The Group has a robust approach to risk management that involves ongoing risk assessments, communication with our Board of Directors and Investment Advisor, and the development and implementation of a risk management framework along with reports, policies and procedures. We continue to monitor relevant emerging risks and consider the market and macro impacts on our key risks.
Riesgo | Descripción | Mitigación |
Riesgo de desempeño | En caso de que la cartera de inversiones de la Compañía tenga un desempeño inferior al del mercado, la Compañía podría tener un desempeño inferior al del mercado y a los puntos de referencia de sus pares. | The Board independently reviews any investment recommendation made by the Investment Advisor in light of the investment objectives of the Company and the expectations of shareholders. El Asesor de Inversiones mantiene representación en la junta directiva en todas las inversiones de cartera de propiedad mayoritaria y mantiene conversaciones continuas con la administración y otras partes interesadas clave en las inversiones para garantizar que existan controles establecidos para garantizar el éxito de la inversión. |
Riesgo de concentración de cartera | La política de inversión de la Compañía es mantener una cartera concentrada de 2 a 10 activos. En una cartera concentrada, si la valoración de cualquier activo disminuye, puede tener un impacto material en el NAV de la Compañía. | Los Directores y el Asesor de Inversiones mantienen la cartera bajo revisión y se centran de cerca en aquellas participaciones que representan la mayor proporción del valor total. |
Gestión de la liquidez | El riesgo de liquidez es el riesgo de que la Compañía encuentre dificultades para cumplir con las obligaciones asociadas con sus pasivos financieros que se liquidan mediante la entrega de efectivo u otro activo financiero. | La Junta y el Asesor de Inversiones supervisan de cerca las previsiones de flujo de efectivo junto con el vencimiento de los pasivos. Los pronósticos de liquidez se consideran cuidadosamente antes de tomar decisiones sobre el despliegue de capital. |
Riesgo crediticio | Credit risk is the risk that an issuer or counterparty will be unable or unwilling to meet a commitment that it has entered into with the Company. The Company, through its interests in subsidiaries, has advanced loans to a number of private companies which exposes the Company to credit risk. The loans are advanced to unquoted private companies, which have no credit risk rating. | Loan investments are entered into as part of the investment strategy of the Company and its subsidiaries, and credit risk is managed by taking security where available (typically a floating charge) and the Investment Advisor taking an active role in the management of the borrowing companies. In addition to the repayment of loans advanced, the Company and subsidiaries will often arrange additional preference share structures and take significant equity stakes so as to create shareholder value. It is the performance of the combination of all securities including third party debt that determines the Company's view of each investment. |
Riesgo operacional | The Company outsources investment advisory and administrative functions to service providers. Inadequate or failed internal processes could lead to operational performance risk and regulatory risk. | The primary responsibility for the development and implementation of controls over operational risk rests with the Board of Directors. This responsibility is supported by the development of overall standards for the management of operational risk, which encompasses the controls and processes at the service providers and the establishment of service levels with the service providers. The Directors' assessment of the adequacy of the controls and processes in place at the service providers with respect to operational risk is carried out via regular discussions with the service providers as well as site visits to their offices. The Company also undertakes periodic third-party reviews of service providers' activities. |
Participaciones significativas
Significant shareholdings are analysed in the unaudited schedule of shareholders holding over 3% of issued shares. The Directors are not aware of any other holdings greater than 3 per cent. of issued shares.
directiva
Los Consejeros de la Sociedad en ejercicio durante el ejercicio y hasta la fecha son:
Sr. CL Spears (Presidente)
Mr. N.V. Wilson (resigned on 30 September 2023)
Sra. H. Bestwick
Sr. DR Pirouet
Sr. MM gris
Transacciones con partes relacionadas
Details in respect of the Group's related party transactions during the period are included in note 22 to the financial statements.
personal y secretaria
At 31 January 2024 the Group employed no staff (2023: none).
Auditores independientes
The current year is the second year in which PricewaterhouseCoopers CI LLP are undertaking the audit for the Group. PricewaterhouseCoopers CI LLP have indicated willingness to continue in office.
En nombre de la Junta
brezo bestwick
Director
27 de marzo de 2024
Declaración de responsabilidades de los directores
con respecto al Informe Anual y los Estados Financieros
Los Consejeros son responsables de preparar el Informe Anual y los estados financieros de acuerdo con las leyes y regulaciones aplicables.
The Directors are required to prepare financial statements for each financial year. The Group is required to prepare the financial statement in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (hereinafter "IFRS Accounting Standards") and applicable legal and regulatory requirements of Bermuda Companies Act 1981.
The Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and of its profit or loss for that period. In preparing the Group's financial statements, the Directors are required to:
· seleccionar políticas contables adecuadas y luego aplicarlas de manera coherente;
· hacer juicios y estimaciones que sean razonables, relevantes y confiables;
· state whether they have been prepared in accordance with IFRS Accounting Standards; and
· assess the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and use the going concern basis of accounting unless they either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.
Los Directores confirman que han cumplido con los requisitos anteriores en la preparación de los estados financieros.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group's transactions and disclose with reasonable accuracy at any time the financial position of the Group and enable them to ensure that its financial statements comply with the Bermuda Companies Act 1981. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.
The maintenance and integrity of the Company's website is the responsibility of the Directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that might have occurred to the annual financial statements since they were initially presented on the website. Legislation in Bermuda governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Cada uno de los Consejeros confirma que, a su leal saber y entender:
· The financial statements, prepared in accordance with IFRS Accounting Standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole; and
· the Investment Advisor's report includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.
En el caso de cada Consejero en ejercicio a la fecha de aprobación del informe de Gestión:
· so far as the Director is aware, there is no relevant audit information of which the Group's auditors are unaware; and
· they have taken all the steps that they ought to have taken as a Director in order to make themselves aware of any relevant audit information and to establish that the Group's auditors are aware of that information.
This annual report was approved by the Board and the above Director's Responsibility Statement was signed on behalf of the Board by:
brezo bestwick
Director
27 de marzo de 2024
Declaración consolidada de ingreso comprensivo
Por el año terminado el 31 de enero de 2024
31 de enero de 2024 |
| 31 de enero de 2023 | |||
| Total |
| Total | ||
Note | £ |
| £ | ||
| por |
| |||
4 | Ingresos por intereses | 366,660 | 79,899 | ||
11 | Movimiento del valor razonable neto de las inversiones* | 3,384,604 | (39,438,551) | ||
Total income / (loss) |
| 3,751,264 |
| (39,358,652) | |
| Gastos |
| |||
5 | Honorarios del asesor de inversiones | (1,832,745) | (1,755,442) | ||
6 | Honorarios de los directores | (162,474) | (172,000) | ||
7 | Gastos de pago basados en acciones | (339,593) | (555,225) | ||
8 | Otros gastos | (635,675) | (557,416) | ||
Gasto total |
| (2,970,487) |
| (3,040,083) | |
| Profit / (loss) before finance costs and tax |
| 780,777 |
| (42,398,735) |
Cargos financieros |
| ||||
15 | Intereses sobre instrumentos de pagarés de préstamos no garantizados | (309,049) | (309,382) | ||
15 | Cargo financiero de acciones preferenciales con dividendo cero | (868,190) | (1,128,093) | ||
Pérdida del año antes de impuestos |
| (396,462) |
| (43,836,210) | |
9 | Taxation |
| - | - | |
Pérdida del año |
| (396,462) |
| (43,836,210) | |
| Otro resultado integral | - | - | ||
Pérdida integral total |
| (396,462) |
| (43,836,210) | |
17 | Pérdida básica por acción ordinaria (peniques) |
| (1.39) |
| (147.95) |
17 | Pérdida diluida por acción ordinaria (peniques) |
| (1.33) |
| (141.77) |
* The net fair value movements on investments is allocated to the capital reserve and all other income and expenses are allocated to the revenue reserve in the Consolidated Statement of Changes in Equity. All items derive from continuing activities.
Estado Consolidado de Activos y Pasivos
Al 31 de enero de 2024
31 de enero de 2024 |
| 31 de enero de 2023 | |||
Note | £ |
| £ | ||
| Activos no corrientes |
| |||
11 | Inversiones a valor razonable con cambios en resultados | 95,459,612 | 100,412,977 | ||
95,459,612 |
| 100,412,977 | |||
| Activos circulantes |
| |||
11 | Inversiones a valor razonable con cambios en resultados |
| 5,262,427 | - | |
13 | Efectivo y equivalentes de efectivo | 14,462,495 | 22,226,008 | ||
Clientes y otras cuentas por cobrar y pagos anticipados | 73,646 | 87,899 | |||
19,798,568 |
| 22,313,907 | |||
| Pasivo circulante |
| |||
14 | Comerciales y otras cuentas a pagar | (676,284) | (596,790) | ||
15 | Instrumentos de pagarés de préstamos no garantizados | (3,987,729) | (3,987,729) | ||
|
| (4,664,013) |
| (4,584,519) | |
| Activos corrientes netos |
| 15,134,555 |
| 17,729,388 |
| |||||
Pasivos no corrientes |
| ||||
15 | Acciones preferentes con dividendo cero | (13,714,191) | (20,721,001) | ||
(13,714,191) |
| (20,721,001) | |||
| Activos netos |
| 96,879,976 |
| 97,421,364 |
| Equidad |
| |||
16 | Capital social | 1,730,828 | 1,730,828 | ||
16 | Compartir premium | 13,619,627 | 13,619,627 | ||
24 | Reserva capital | 100,523,993 | 97,139,389 | ||
24 | Reserva de ingresos y otras acciones | (18,994,472) | (15,068,480) | ||
Equidad total |
| 96,879,976 |
| 97,421,364 | |
18 | Valor liquidativo por acción (peniques) |
| 324.26 |
| 328.41 |
Las cuentas anuales fueron aprobadas por el Consejo de Administración el 27 de marzo de 2024 y firmado en su nombre por:
Clive SpearsDavid Pirouet
directora directora
Estado de cambios en el patrimonio neto consolidado
Por el año terminado el 31 de enero de 2024
Ejercicio finalizado el 31 de enero de 2024 | |||||||
| Capital social | Compartir premium | Reserva capital | Ingresos reserve and other equity
| Total | ||
Note | £ | £ | £ | £ | £ | ||
| Saldo al 1 de febrero de 2023 |
| 1,730,828 | 13,619,627 | 97,139,389 | (15,068,480) | 97,421,364 |
Pérdida integral total del año | - | - | 3,384,604 | (3,781,066) | (396,462) | ||
Contribuciones y distribuciones a propietarios |
| ||||||
7 | Cargo por pago basado en acciones | - | - | - | 339,593 | 339,593 | |
Participación en el esquema de propiedad de acciones | - | - | - | 41,401 | 41,401 | ||
16 | Adquisición de acciones para el esquema JOSP | - | - | - | (525,920) | (525,920) | |
Total de transacciones con propietarios |
| - | - | - | (144,926) | (144,926) | |
| Saldo al 31 de enero de 2024 |
| 1,730,828 | 13,619,627 | 100,523,993 | (18,994,472) | 96,879,976 |
Ejercicio finalizado el 31 de enero de 2023 | ||||||
| Capital social | Compartir premium | Reserva capital | Ingresos reserva y otras acciones | Total | |
Note | £ | £ | £ | £ | £ | |
| Saldo al 1 de febrero de 2022 | 1,730,828 | 13,619,627 | 136,577,940 | (8,303,418) | 143,624,977 |
Pérdida integral total del año | - | - | (39,438,551) | (4,397,659) | (43,836,210) | |
Contribuciones y distribuciones a propietarios | ||||||
7 | Cargo por pago basado en acciones | - | - | - | 555,225 | 555,225 |
| Participación en el esquema de propiedad de acciones | - | - | - | 149,568 | 149,568 |
16 | Compra de acciones | - | - | - | (2,587,375) | (2,587,375) |
16 | Adquisición de acciones para el esquema JOSP | - | - | - | (484,821) | (484,821) |
| Total de transacciones con propietarios | - | - | - | (2,367,403) | (2,367,403) |
| Saldo al 31 de enero de 2023 | 1,730,828 | 13,619,627 | 97,139,389 | (15,068,480) | 97,421,364 |
Estado consolidado de flujos de efectivo
Por el año terminado el 31 de enero de 2024
31 de enero de 2024 |
| 31 de enero de 2023 | |||
Note | £ |
| £ | ||
| Actividades de explotación |
| |||
Ingresos por intereses recibidos | 366,660 | 79,899 | |||
Gastos pagados | (2,535,853) | (2,853,467) | |||
11 | Compra de inversiones | (3,350,000) | (3,174,948) | ||
11 | Producto de inversiones | 6,425,542 | 3,848,880 | ||
19 | Efectivo neto generado por / (utilizado en) actividades operativas |
| 906,349 |
| (2,099,636) |
|
|
|
|
|
|
| Actividades de financiación |
| |||
15 | Intereses pagados del pagaré de préstamo no garantizado | (309,049) | (299,080) | ||
Compra de acciones | (525,920) | (3,072,196) | |||
15 | Recompra de acciones preferentes con dividendo cero | (7,875,000) | - | ||
Participación en el esquema de propiedad de acciones | 41,401 | 149,568 | |||
Efectivo neto utilizado en actividades de financiación. |
| (8,668,568) |
| (3,221,708) | |
| Disminución de efectivo y equivalentes de efectivo |
| (7,762,219) | (5,321,344) | |
| Efecto de las fluctuaciones del tipo de cambio sobre el efectivo y equivalentes de efectivo |
| (1,294) | 2,310 | |
Efectivo y equivalentes de efectivo al inicio del año |
| 22,226,008 | 27,545,042 | ||
13 | Efectivo y equivalentes de efectivo al final del año |
| 14,462,495 |
| 22,226,008 |
Conciliación de deuda neta
Efectivo y equivalentes de efectivo | El 31 de enero de 2023 | Flujo de caja | Otro cargo no monetario | El 31 de enero de 2024 |
£ | £ | £ | £ | |
Efectivo en el banco | 22,226,008 | (7,762,219) | (1,294) | 14,462,495 |
Nota de préstamo sin garantía instrumentos |
(3,987,729) | 309,049 | (309,049) | (3,987,729) |
Acciones preferentes con dividendo cero | (20,721,001) | 7,875,000 | (868,190) | (13,714,191) |
Deuda neta | (2,482,722) | 421,830 | (1,178,533) | (3,239,425) |
Notas a los estados financieros consolidados
Por el año terminado el 31 de enero de 2024
1. Información General
On 25 July 2003, the Company was incorporated with limited liability in the Isle of Man. On 23 July 2012, the Company then re-registered in the Isle of Man in order to bring the Company within the Isle of Man Companies Act 2006, with registration number 008597V. On 11 September 2018, the Company re-registered under the Bermuda Companies Act 1981, with registration number 53954. The Company moved its operations to Jersey with immediate effect on 17 May 2017 and has subsequently operated from Jersey only.
Las acciones ordinarias de la Compañía cotizan en AIM, un mercado operado por la Bolsa de Valores de Londres y el Mercado de Crecimiento de la Bolsa de Valores Aquis (anteriormente Bolsa NEX). Las acciones preferenciales con dividendo cero de la Compañía están admitidas a cotizar en el mercado principal de la Bolsa de Valores de Londres (cotización estándar). Los pagarés de préstamos no garantizados de la Compañía cotizan en la Bolsa de Valores de Aquis.
The Company's portfolio investments are held in two majority owned subsidiary entities, ESO Investments 1 Limited and ESO Investments 2 Limited and one wholly owned subsidiary entity, ESO Alternative Investments LP (together the "Subsidiaries"). ESO Investments 1 Limited and ESO Investments 2 Limited operate out of Jersey and ESO Alternative Investments LP operates out of the United Kingdom.
Los intereses directos en las inversiones de cartera individuales son propiedad de las siguientes Subsidiarias;
· ESO Investment 1 Limited: Rayware, Whittard, David Phillips y Denzel's
· ESO Investments 2 Limited: Luceco y Pharmacy2U
· ESO Alternative Investments LP: European Capital Private Debt Fund LP, Atlantic Credit Opportunities DAC, EPIC Acquisition Corp and EAC Sponsor Limited
The above Subsidiaries are subsidiary holding vehicles and are not consolidated in accordance with IFRS 10 as detailed in Notes 3a and 3b.
The Company also controls the EPIC Private Equity Employee Benefit Trust (referred herein as the "EBT subsidiary"), an employee benefit trust, which financial position and results are consolidated in these financial statements (refer to Notes 3a and 7 for details). These financial statements are consolidated financial statements of the Company and the EBT subsidiary. The Company and the EBT subsidiary are collectively referred to as the "Group" hereinafter.
The Group's primary objective is to provide long-term return on equity for its shareholders by investing between £2m and £30m in small and medium sized companies.
The Group targets growth capital and buy-out opportunities, special situations and distressed transactions, deploying capital where it believes the potential for shareholder value creation to be compelling. ESO has the flexibility to invest in public as well as private companies and is also able to invest in Special Purpose Acquisition Companies ("SPACs") and third party funds.
ESO will consider most industry sectors including business services, consumer and retail, financial services and the industrials sector.
The portfolio is likely to be concentrated, numbering between two and ten assets at any one time, which allows the Group to allocate the necessary resource to form genuinely engaged and supportive partnerships with management teams. This active approach facilitates the delivery of truly transformational initiatives in underlying investments during the Group's period of ownership.
The Group has no employees.
The following significant changes occurred during the year ended 31 January 2024:
· In July 2023, the Company completed the realisation of its holdings in Atlantic Credit Opportunities Fund and in August 2023 completed the realisation of its holdings in Prelude Structured Alternatives Master Fund LP, with both realised at carrying value.
· In January 2024, EPIC Acquisition Corp. announced that it will return all residual capital to third parties and wind up. The valuation methodology for EPIC Acquisition Corp. and EAC Sponsor Limited was amended to a liquidation valuation, implying a reduction in the aggregate value of the holdings. As a result, the designation of the level of fair value hierarchy of EPIC Acquisition Corp was amended to Level 3 from Level 2 as at 31 January 2023 (see note 12).
· In July 2023, the Company completed the buyback of 7.5 million zero dividend preference shares ("ZDP"). Following this buyback, the Company has 12.5 million ZDP shares remaining in issue, maturing in December 2026 for a value of £7,875,000 (see note 15).
· El movimiento en el valor de las inversiones y el movimiento del valor razonable se consideran cambios significativos durante el período (ver nota 12).
The financial information is derived from the Group's consolidated financial statements for the year ended 31 January 2024. The financial information set out above does not constitute the Group's statutory accounts for the years ended 31 January 2023 and 31 January 2024 but is derived from those accounts. The Auditors have reported on the statutory accounts and their report was unqualified and did not draw attention to any matters by way of emphasis. The full text of the auditors' report can be found in the Company's full 2024 Report and Accounts on pages 48 to 53.
The 2024 Report and Accounts will be published on the Company's página web https://www.epespecialopportunities.com/ as soon as practicable. They will also be submitted to the National Storage Mechanism where they will be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
2 Base de preparacionar
a. Declaración de cumplimiento
The financial statements have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") and applicable legal and regulatory requirements of Bermuda Companies Act 1981. The following accounting policies have been adopted and applied consistently. The financial statements comply with IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB).
b. Base de medida
The financial statements have been prepared on the historical cost convention except for financial instruments at fair value through profit or loss which are measured at fair value (note 12). The following are amendments that the Group has decided not to adopt early:
· Normas y modificaciones a las normas existentes vigentes a partir del 1 de enero de 2023
There are no standards, amendments to standards or interpretations that are effective for annual periods beginning on 1 January 2023 that have a material effect on the financial statements of the Group.
· Nuevas normas, modificaciones e interpretaciones vigentes después del 1 de enero de 2023 y que no hayan sido adoptadas anticipadamente
A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 January 2023, and have not been early adopted in preparing these financial statements. None of these are expected to have a material effect on the financial statements of the Group.
C. Moneda funcional y de presentación
These financial statements are presented in Sterling, which is the Group's functional and presentation currency. All financial information presented in Sterling has been rounded to the nearest pound.
'Functional currency' is the currency of the primary economic environment in which the Group operates. The expenses (including investment advisory and administration fees) and investments are denominated and paid in Sterling. Accordingly, management has determined that the functional currency of the Group is Sterling.
A foreign currency transaction is recorded initially at the rate of exchange at the date of the transaction. Assets and liabilities are translated from foreign currency to the functional currency at the closing rate at the end of the reporting period. The resulting gains or losses are included in the Consolidated Statement of Comprehensive Income.
d. Uso de estimaciones y juicios
The preparation of financial statements in conformity with IFRS Accounting Standard requires the Directors and the Investment Advisor to make judgements, estimates and assumptions that affect the application of policies and the reported amounts of assets and liabilities, income and expense. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. The Directors have, to the best of their ability, provided as true and fair a view as is possible. Actual results may differ from these estimates.
Las estimaciones y los supuestos subyacentes se revisan de forma continua. Las revisiones a las estimaciones contables se reconocen en el período en el que se revisa la estimación si la revisión afecta sólo a ese período o en el período de la revisión y períodos futuros si la revisión afecta tanto el período actual como el futuro.
Critical accounting estimates and assumptions made by Directors and the Investment Advisor in the application of IFRS Accounting Standards that have a significant effect on the financial statements and estimates with a significant risk of material adjustments in the year relate to the determination of fair value of financial instruments with significant unobservable inputs (see note 12).
Los juicios críticos hechos por los Consejeros y el Asesor de Inversiones en la preparación de estos estados financieros son:
· Classification of the zero dividend preference share as a non-current liability in the Consolidated Statement of Assets and Liabilities. The zero dividend preference shares meet the definition of a non-current liability as detailed in note 3(l). Please refer to note 15 for further details.
· Categorisation of ESO Alternative Investments LP, ESO Investments 1 Limited and ESO Investments 2 Limited as Subsidiaries. The Company is deemed to have control over these Subsidiaries. Please refer to note 3(a) for details.
e. Unconsolidated structured entities
The Company invests in portfolio investments through its Subsidiaries. See note 3(a) for an explanation of why these entities are considered controlled subsidiary investments. The purpose of the Subsidiaries is to hold investments. The Subsidiaries meet the definition of unconsolidated structured entities under IFRS 12. There are letters of support in place between the Company and ESO Investments 1 Limited and ESO Investments 2 Limited for the payment of expenses. ESO Alternative Investments LP pays its own expenses.
The total fair value of the Subsidiaries, and the amount recognised in the Company's financial statements (as investments at fair value) is £100,722,039 (2023: £100,412,977).
In respect of ESO Alternative Investments LP, the Company has 100% beneficial ownership of the entity. In respect of ESO Investments 1 Limited, the Company has 80% beneficial ownership of the entity.
Con respecto a ESO Investments 2 Limited, la Compañía tiene el 80% de los beneficiarios reales de la entidad.
No existen restricciones sobre la capacidad de las Subsidiarias antes mencionadas de transferir fondos a la Compañía en forma de dividendos en efectivo o reembolsos de préstamos.
La exposición máxima de la Compañía a la pérdida de su participación en sus Subsidiarias es igual al valor razonable total de su inversión en sus Subsidiarias.
The Company's Subsidiaries invest in quoted and unquoted securities, in line with the Company's investment policy. The value of these investments may be impacted by market price risk arising from uncertainty about the future market value of these holdings as well as the risk of underperformance of the underlying portfolio companies.
La exposición a inversiones en Subsidiarias medidas a valor razonable se revela en la siguiente tabla:
|
| 31 de enero de 2024 £ | 31 de enero de 2023 £ |
ESO Inversiones 1 Limited | 52,200,243 | 43,217,307 | |
ESO Inversiones 2 Limited | 42,722,072 | 44,330,483 | |
ESO Inversiones Alternativas LP | 5,799,724 | 12,865,187 | |
100,722,039 | 100,412,977 |
During the year ended 31 January 2024 total net profit incurred on the fair value movement on investments in Subsidiaries was £3,384,604 (2023: loss of £39,438,551) (as set out in note 11).
f. Going concern
The Group's management has assessed the Group's ability to continue as a going concern and is satisfied that the Group has adequate resources to continue in business for at least twelve months from the date of approval of financial statements. Furthermore, the management is not aware of any material uncertainties that may cast significant doubt upon the Group's ability to continue as a going concern. Therefore, the financial statements continue to be prepared on the going concern basis.
3 Material accounting policy information
a. Filiales y consolidación
La Compañía tiene subsidiarias que han sido determinadas como inversiones subsidiarias controladas. Las inversiones en subsidiarias controladas se miden al valor razonable con cambios en resultados y no se consolidan de acuerdo con la NIIF 10. El valor razonable de las inversiones en subsidiarias controladas se determina sobre una base consistente con todas las demás inversiones medidas al valor razonable con cambios en resultados, y como descrito en la nota 3.i.
A controlled subsidiary investment involves holding companies over which the Company has the power to govern the financial and operating policies. These holding companies are subsidiaries that have been incorporated for the purpose of holding underlying investments on behalf of the Company. Such holding companies have no operations other than providing a vehicle for the acquisition, holding and onward sale of certain portfolio investment companies. The holding companies are also reflected at its fair value, with the key fair value driver thereof being the investment in the underlying portfolio company investments that the holding company holds on behalf of the Company. The holding companies require no consolidation, because the holding companies are not deemed to be providing investment related services, as defined by IFRS 10.
Cuando se considere que la Sociedad tiene control sobre una sociedad de cartera subyacente, ya sea directa o indirectamente, y si el control se realiza mediante derechos de voto o mediante la capacidad de dirigir las actividades pertinentes a cambio del acceso a una parte significativa de las pérdidas y ganancias variables derivado de dichas actividades relevantes, la Sociedad no consolida la sociedad de cartera subyacente; en cambio, la Compañía refleja su inversión a valor razonable a través de utilidad o pérdida.
The EPIC Private Equity Employee Benefit Trust ("EBT Subsidiary or Trust") is treated as a subsidiary and consolidated in the financial statements. The impact on the financial statements is immaterial. All transactions and balances between the Company and EBT Subsidiary are eliminated on consolidation. Amounts reported in the financial statements have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Company. Please refer to note 7 for more details.
b. Investment entity
IFRS 10: "Consolidated Financial Statements", provides an exception to the consolidation requirement for entities that meet the definition of an investment entity.
The Directors believe the Company meets the definition of an investment entity as the following conditions exist:
· The Company obtains funds from its members for the purpose of providing those members with investment management services;
· The Company commits to its members that its business purpose is to invest funds solely for returns from capital appreciation, investment income, or both; and
· The Company measures and evaluates the performance of substantially all of its investments on a fair value basis.
The exception to consolidation requires investment entities to account for subsidiaries at fair value through profit or loss.
C. Informes segmentarios
The Directors are of the opinion that the Company is engaged in a single segment of business and geographic area, being arranging financing for growth, buyout and special situations investments in the United Kingdom. Information presented to the Board of Directors for the purpose of decision making is based on this single segment. All significant operating decisions are based upon the analysis of the Company's investments as a single operating segment. The financial information from this segment are equivalent to the financial information of the Company as a whole, which are evaluated on a regular basis by the Board of Directors.
d. Income
Los ingresos por intereses se reconocen a medida que se devengan en resultados, utilizando el método de interés efectivo. Los ingresos por dividendos se contabilizan cuando se establece el derecho a recibirlos.
e. Expenses
Todos los gastos se contabilizan sobre la base del devengo.
f. Cash and cash equivalents
El efectivo y los equivalentes de efectivo se componen únicamente de depósitos en efectivo corrientes en bancos. Los equivalentes de efectivo son inversiones a corto plazo altamente líquidas que son fácilmente convertibles en montos conocidos de efectivo y que están sujetas a un riesgo insignificante de cambios en el valor.
g. Finance charges
Otros cargos financieros se reconocen como un gasto.
h. Trade and other payables
Las cuentas por pagar comerciales y otras cuentas por pagar se valúan al costo amortizado de acuerdo con la NIIF 9.
i. Unsecured loan note instruments
Los instrumentos de notas de préstamos no garantizados se expresan al costo amortizado de acuerdo con la NIIF 9.
j. Financial assets and financial liabilities
A. Clasificación
Activos financieros
When the Group first recognises a financial asset, it classifies it based on the business model for managing the
asset and the asset's contractual cash flow characteristics, as follows:
· Costo amortizado: un activo financiero se mide a costo amortizado si se cumplen las dos condiciones siguientes:
- the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and
- the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
· Valor razonable con cambios en otro resultado integral: los activos financieros se clasifican y miden a valor razonable con cambios en otro resultado integral si se mantienen en un modelo de negocio cuyo objetivo se logra mediante la obtención de flujos de efectivo contractuales y la venta de activos financieros.
· Valor razonable con cambios en resultados: los activos financieros que no se mantienen en uno de los dos modelos de negocio mencionados se valoran a valor razonable con cambios en resultados.
When, and only when, the Group changes its business model for managing financial assets it must reclassify all affected assets
Pasivos financieros
Todos los pasivos financieros se miden a costo amortizado, excepto los pasivos financieros a valor razonable con cambios en resultados. Dichos pasivos incluyen derivados (distintos de los derivados que son contratos de garantía financiera o que son instrumentos de cobertura efectivos y designados), otros pasivos mantenidos para negociar y pasivos que una entidad designa para ser medidos a valor razonable con cambios en resultados.
B. Reconocimiento
The Group recognises financial assets and financial liabilities on the date it becomes a party to the contractual provisions of the instrument.
C Medida
Las inversiones de capital y de deuda, incluidas las mantenidas por las Subsidiarias, se expresan a su valor razonable. Los Préstamos y partidas a cobrar se valoran por su coste amortizado menos las pérdidas por deterioro del valor.
El Asesor de Inversiones determina los valores de los activos utilizando los principios de valoración de la NIIF 13.
'Fair value' is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or, in its absence, the most advantages market to which the Group has access at that date. The fair value of a liability reflects its non-performance risk.
When available, the Company measures the fair value of an instrument using the quoted price in an active market for that instrument. A market is regarded as 'active' if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The Company measures instruments quoted in an active market at closing price on the relevant exchange at the measurement date.
Si no hay un precio cotizado en un mercado activo, la Compañía utiliza técnicas de valoración que maximizan el uso de datos de entrada observables relevantes y minimizan el uso de datos de entrada no observables. La técnica de valoración elegida incorpora todos los factores que los participantes del mercado tendrían en cuenta al fijar el precio de una transacción.
La Compañía reconoce las transferencias entre los niveles de la jerarquía del valor razonable al final del período sobre el que se informa durante el cual ocurrió el cambio.
El costo amortizado de un activo financiero o pasivo financiero es el monto por el cual se mide el activo financiero o pasivo financiero en el reconocimiento inicial, menos los reembolsos de principal, más o menos la amortización acumulada usando el método de interés efectivo de cualquier diferencia entre el monto inicial reconocido y el monto del vencimiento, menos cualquier reducción por deterioro. Los activos financieros que no se llevan a valor razonable con cargo a resultados están sujetos a una prueba de deterioro. Para préstamos a empresas de cartera, la prueba de deterioro se realiza como parte de la evaluación del valor razonable del valor de empresa del negocio relacionado, como se describe anteriormente. Si la vida esperada no puede determinarse de forma fiable, se utiliza la vida contractual.
D. Deterioro
Pérdidas crediticias esperadas a 12 meses
Las pérdidas crediticias esperadas de 12 meses se calculan multiplicando la probabilidad de que ocurra un incumplimiento en los próximos 12 meses con las pérdidas crediticias esperadas totales (durante la vida) que resultarían de ese incumplimiento, independientemente de cuándo ocurran esas pérdidas. Por lo tanto, las pérdidas crediticias esperadas de 12 meses representan las pérdidas crediticias esperadas durante la vida de un activo financiero que se espera que surjan de eventos de incumplimiento que son posibles dentro del período de 12 meses posterior al origen de un activo, o desde cada fecha de presentación de informes para esos activos en la etapa de reconocimiento inicial. .
Pérdidas crediticias esperadas de por vida
Las pérdidas crediticias esperadas de por vida son el valor presente de las pérdidas crediticias esperadas que surgen si un prestatario incumple su obligación en cualquier momento a lo largo del plazo del activo financiero del prestamista (es decir, todos los posibles eventos de incumplimiento durante el plazo del activo financiero se incluyen en el analisis). Las pérdidas crediticias esperadas de por vida se calculan sobre la base de un promedio ponderado de las pérdidas crediticias esperadas, y las ponderaciones se basan en las respectivas probabilidades de incumplimiento.
E. Baja en cuentas
La Compañía da de baja un activo financiero cuando expiran los derechos contractuales sobre los flujos de efectivo del activo financiero o transfiere el activo financiero y la transferencia califica para la baja de acuerdo con la NIIF 9.
La Compañía utiliza el método de promedio ponderado para determinar las ganancias y pérdidas realizadas al darse de baja. Un pasivo financiero se da de baja cuando la obligación especificada en el contrato se cumple, cancela o expira.
k. Share capital
Capital social ordinario
Las acciones ordinarias se clasifican como patrimonio. Los costos incrementales directamente atribuibles a la emisión de acciones ordinarias y opciones sobre acciones se reconocen como una deducción del patrimonio neto, neto de cualquier efecto fiscal.
Recompra de capital social (acciones propias)
When share capital recognised as equity is repurchased, the amount of the consideration paid, which includes directly attributable costs, net of any tax effects, is recognised as a deduction from equity. Repurchased shares are classified as treasury shares and are presented as a deduction from total equity. When treasury shares are sold or reissued subsequently, the amount received is recognised as an increase in equity, and the resulting surplus or deficit on the transaction is transferred to / from revenue reserves.
Capital Reserve and Revenue Reserve and other equity
The capital reserve comprises net gains and losses on investments. The revenue reserve and other equity comprise other income and expenses plus other items recorded directly in equity (excluding items recorded as share capital / share premium).
l. Jointly owned share plan ("JOSP") and share-based payments
Los directores de la Compañía y ciertos empleados del Asesor de Inversiones (en conjunto, los "Participantes") reciben una remuneración en forma de transacciones de pagos basados en acciones que se liquidan mediante acciones, a través de un Programa JOSP.
Equity-settled share-based payments are measured at fair value at the date of grant. The fair value is determined based on the share price of the equity instrument at the grant date. The fair value determined at the grant date of the equity-settled share-based payment is expensed on a straight-line basis over the vesting period, based on the Company's estimate of the number of shares that will eventually vest. The instruments are subject to a three-year service vesting condition from the grant date, and their fair value is recognised as a share-based expense with a corresponding increase in revenue reserves within equity over the vesting period. Contributions received from employees as part of the JOSP arrangement are recognised directly in equity in the line share ownership scheme participation.
The assets (other than investments in the Company's shares), liabilities, income and expenses of the Trust established to operate the JOSP scheme are consolidated in these financial statements. Any expense incurred by the Trust are borne by the Company. The Trust's investment in the Company's shares is deducted from shareholders' funds in the Consolidated Statement of Asset and Liabilities as if they were treasury shares (see note 7).
m. Zero dividend preference shares ("ZDP")
Under IAS 32 - Financial Instruments: Presentation, the ZDP Shares are classified as financial liabilities and are held at amortised cost. An accrual for the final capital entitlement of the ZDP Shares is included in the Consolidated Statement of Comprehensive Income as a finance cost and is calculated using the effective interest rate method ("EIR"). The costs of issue of the ZDP Shares are amortised over the period to the ZDP Share redemption date.
n. Future changes in accounting policies
Several new standards and interpretations have been published that are not mandatory for 31 January 2024 reporting periods and earlier application is permitted; however, the Group has not adopted early the new or amended standards in preparing these financial statements.
The Directors do not expect the adoption of the standards and interpretations to have a material impact on the Group's financial statements in the period of initial application.
o. Change in categorisation of holding companies
During the year ended 31 January 2023, the Directors reassessed its categorisation of ESO Alternative Investments LP, ESO Investments 1 Limited and ESO Investments 2 Limited from Associates to Subsidiaries. These entities were set up by the Company as holding vehicles for investments acquired for the benefit of the Company. The holding companies are structured entities and as such voting rights or similar rights are not the dominant factor in decision-making power over them. As a result, the Directors deem the classification of these entities as Subsidiaries to be more appropriate.
4 Ingresos por intereses
2024 | 2023 | ||
| Grupo procesos | Grupo procesos | |
£ | £ | ||
Interest earned on cash balances | 366,660 | 79,899 | |
Total |
| 366,660 | 79,899 |
5 Comisiones por asesoramiento, administración y rendimiento de inversiones
Honorarios de asesoría de inversiones
The investment advisory fee payable to EPIC Investment Partners LLP ("EPIC") is assessed and payable at the end of each fiscal quarter and is calculated as 2 per cent. of the Group's NAV where the Group's NAV is less than £100 million; otherwise the investment advisory fee is calculated as the greater of £2.0 million or the sum of 2 per cent. of the Group's NAV comprising Level 2 and Level 3 portfolio assets, 1 per cent. of the Group's NAV comprising Level 1 assets, no fees on assets which are managed or advised by a third-party manager, 0.5 per cent. of the Group's net cash (if greater than nil), and 2 per cent. of the Group's net cash (if less than nil) (i.e. reducing fees for net debt positions).
The charge for the current year was £1,832,745 (2023: £1,755,442). The amount outstanding as at 31 January 2024 was £484,400 (2023: £487,107 ) (see note 14).
Gastos de administración
EPIC Administration Limited provides accounting and financial administration services to the Group. The fee payable to EPIC Administration Limited is assessed and payable at the end of each fiscal quarter and is calculated as 0.15 per cent. of the Group's NAV where the Group's NAV is less than £100 million (subject to a minimum fee of £35,000); otherwise the advisory fee shall be calculated as 0.15 per cent. of £100 million plus a fee of 0.1 per cent.
of the excess of the Group's NAV above £100 million.
The charge for the current year was £141,330 (2023: £147,043).
Otras tarifas de administración durante el año fueron de £82,406 2023 (76,302: £XNUMX XNUMX).
Comisiones de rendimiento pagadas por Filiales
Las Subsidiarias se valúan a valor razonable. Las comisiones de rendimiento se pagan al Asesor de Inversiones en función del rendimiento de las Filiales y se deducen al calcular el valor razonable de las Filiales.
Comisión de rendimiento en ESO Investments 1 Limited
The distribution policy of ESO Investments 1 Limited includes an allocation of profits to the Investment Advisor such that, for each investment where a returns hurdle of 8 per cent. per annum has been achieved, the Investment Advisor is entitled to receive 20 per cent. of the increase above the base value of investment. As at 31 January 2024, £4,983,792 has been accrued in the profit share account of the Investment Advisor in the records of ESO Investments 1 Limited (2023: £nil accrued).
Comisión de rendimiento en ESO Investments 2 Limited
La política de distribución de ESO Investments 2 Limited incluye una asignación de ganancias al Asesor de Inversiones de tal manera que, para cada inversión, haya un obstáculo de rendimiento del 8 por ciento. por año, el Asesor de Inversiones tiene derecho a recibir el 20 por ciento. del incremento sobre el valor base de la inversión. Al 31 de enero de 2024, se acumularon £9,104,320 en la cuenta de participación en las ganancias del Asesor de Inversiones en los registros de ESO Investments 2 Limited (2023: £9,112,002 acumulados).
Plan de acciones de propiedad conjunta ("JOSP") y pagos basados en acciones
Los directores de la Compañía y ciertos empleados del Asesor de Inversiones (en conjunto, los "Participantes") reciben una remuneración en forma de transacciones de pagos basados en acciones que se liquidan con acciones, a través de un Esquema JOSP (ver nota 7).
6 Honorarios de directores
2024 | 2024 | 2023 | 2023 | ||
| Empresa | Pagos basados en acciones | Empresa | Pagos basados en acciones | |
£ | £ | £ | £ | ||
CL Spears (presidente) | 42,000 | 6,393 | 42,000 | 9,388 | |
N.V. Wilson (resigned on 30 September 2023) | 22,474 | 5,972 | 32,000 | 9,216 | |
H. Bestwick | 32,000 | 6,393 | 32,000 | 9,388 | |
DR Pirouet | 34,000 | 8,298 | 34,000 | 6,132 | |
mm gris | 32,000 | 4,296 | 32,000 | 2,093 | |
Total | 162,474 | 31,352 | 172,000 | 36,217 |
Además de los honorarios mencionados anteriormente, CL Spears, H. Bestwick y MM Gray recibieron durante el año;
· 3,750 libras esterlinas cada uno como honorarios de directores por su cargo de director de ESO Investments 1 Limited; y
· £3,750 cada uno como honorarios de directores por su cargo de director de ESO Investments 2 Limited.
Aggregate Directors' fees for ESO Investments 1 Limited and ESO Investments 2 Limited for the year ended 31 January 2024 amounted to £22,500 (2023 : £22,500).
Nicholas Wilson resigned on 30 September 2023. The share-based payment expense is calculated as set out in note 7.
7 Gasto por pago basado en acciones
El costo de las transacciones liquidadas con instrumentos de patrimonio para los Participantes en el Esquema JOSP se mide a su valor razonable en la fecha de concesión. El valor razonable se determina con base en el precio de la acción del instrumento de patrimonio en la fecha de concesión.
The Trust was created to award shares to Participants as part of the JOSP. The Trust is consolidated in these financial statements in accordance with Note 3a. Participants are awarded a certain number of shares ("Matching Shares") which are subject to a three-year service vesting condition from the grant date. In order to receive their Matching Share allocation Participants are required to purchase shares in the Company on the open market ("Bought Shares"). The Participant will then be entitled to acquire a joint ownership interest in the Matching Shares for the payment of a nominal amount, on the basis of one joint ownership interest in one Matching Share for every Bought Share they acquire in the relevant award period.
The Trust holds the Matching Shares jointly with the Participant until the award vests. These shares carry the same rights as the rest of the ordinary shares.
El Fideicomiso tenía 1,546,693 (2023: 1,290,202) acciones equivalentes al final del año que históricamente no han votado (ver nota 16).
257,061 shares vested to Participants in the year ended 31 January 2024 (2023: 862,290). 305,082 shares were awarded to Participants in the year ended 31 January 2024 (2023: 156,173). The weighted average fair value of the shares awarded during the period is 146.33 pence per share.
The fair value of awards granted under the JOSP is recognised as an employee benefits expense, with a corresponding increase in equity. This has been calculated on the basis of the fair value of the equity instruments, which is the share price of the equity instrument on the AIM market of the London Stock Exchange at the grant date and the estimated number of equity instruments to be issued after the vesting period, less the amount paid for the joint ownership interest in the Matching Shares from the Participants. As the Company does not pay dividends, no expected dividends were incorporated into the measurement value. No other features other than the share price of the equity instrument is incorporated into the measurement of the fair value of the awards.
The impact of revision to original estimates, if any, is recognised in profit or loss, with a corresponding adjustment to equity.
El gasto total de pago basado en acciones en el año finalizado el 31 de enero de 2024 fue de £339,593 2023 (555,225: £31 2024). Del total de gastos de pagos basados en acciones en el año finalizado el 31,352 de enero de 2023, £36,217 XNUMX relacionados con los Directores (XNUMX: £XNUMX XNUMX) y el saldo relacionado con los miembros, empleados y consultores del Asesor de Inversiones.
8 Otros gastos
The breakdown of other expenses presented in the Consolidated Statement of Comprehensive Income is as follows:
31 enero 2024 | 31 enero 2023 | ||
| Total | Total | |
£ | £ | ||
Gastos de administración | (223,806) | (223,345) | |
Seguro de directores y funcionarios | (27,993) | (27,464) | |
Honorarios profesionales | (145,363) | (94,442) | |
Gastos de viaje y reunión de la junta | (1,639) | (1,085) | |
La remuneración del Auditor | (81,200) | (61,350) | |
Remuneración de revisión intermedia* | (26,350) | (17,000) | |
cargos bancarios | (1,404) | (1,705) | |
Movimiento de divisas | (1,137) | 2,687 | |
Asesor designado y broker multas de cambio de vuelo | (55,001) | (62,322) | |
Lista de comisiones | (53,472) | (52,769) | |
Gastos diversos | (18,310) | (18,621) | |
Otros gastos |
| (635,675) | (557,416) |
*This relates to the interim review of the half yearly financial report which was performed by the auditors.
9 Fiscalidad
La Compañía es residente fiscal de Jersey y está sujeta al 0 por ciento. impuesto de sociedades (2023: 0 por ciento).
ESO Alternative Investments LP es transparente a efectos fiscales.
ESO Investments 1 Limited y ESO Investments 2 Limited son residentes fiscales en Jersey y están sujetos al 0 por ciento. (2023: 0 por ciento) impuesto de sociedades.
10 Dividendos pagados y propuestos
No se pagaron ni se propusieron dividendos para el año finalizado el 31 de enero de 2024 (2023: £ cero).
11 Inversiones a valor razonable con cambios en resultados
31 enero 2024 | 31 enero 2023 | ||
| £ | £ | |
Inversiones a valor razonable con cambios en resultados* | 100,722,039 | 100,412,977 | |
100,722,039 | 100,412,997 |
Investments roll forward schedule |
| ||
31 enero 2024 | 31 enero 2023 | ||
| £ | £ | |
Inversiones a valor razonable a 1 de febrero | 100,412,977 | 140,525,060 | |
Compra de inversiones | 3,350,000 | 3,174,948 | |
Producto de inversiones | (6,425,542) | (3,848,880) | |
Movimientos del valor razonable neto | 3,384,604 | (39,438,551) | |
Reclasificación del saldo deudor a participada | - | 400 | |
Inversiones a valor razonable | 100,722,039 | 100,412,977 |
* Comprises Subsidiaries stated at fair value in accordance with accounting policy set out in note 3(a) (ESO Investments 1 Limited, ESO Investments 2 Limited and ESO Alternative Investments LP).
La discusión sobre el desempeño de las inversiones individuales se presenta en la Declaración del Presidente y el Informe del Asesor de Inversiones.
12 Fair value of financial instruments
La Compañía determina el valor razonable de los instrumentos financieros con referencia a las directrices de IPEV y los principios de valoración de la NIIF 13 (Medición del valor razonable). La Compañía mide el valor razonable usando la jerarquía de valor razonable IFRS 13, que refleja la importancia y certeza de los datos utilizados para derivar el valor razonable de un activo:
· Nivel 1: Insumos que son precios de mercado cotizados (no ajustados) en mercados activos para instrumentos idénticos;
· Nivel 2: Insumos distintos de los precios cotizados incluidos en el Nivel 1 que son observables directamente (es decir, como precios) o indirectamente (es decir, derivados de los precios). Esta categoría incluye instrumentos valuados usando precios de mercado cotizados en mercados activos para instrumentos similares, precios cotizados para instrumentos idénticos o similares en mercados que se consideran menos activos u otras técnicas de valuación en las que todos los insumos significativos son observables directa o indirectamente a partir de datos de mercado;
· Nivel 3: Entradas que no se pueden observar. Esta categoría incluye todos los instrumentos para los cuales la técnica de valuación incluye entradas que no se basan en datos observables y las entradas no observables tienen un efecto significativo en la valuación del instrumento. Esta categoría incluye instrumentos que se valúan con base en precios cotizados para instrumentos similares pero para los cuales se requieren ajustes o supuestos importantes no observables para reflejar las diferencias entre los instrumentos.
The Investment Advisor undertakes the valuation of financial instruments required for financial reporting purposes. Recommended valuations are reviewed and approved by the Investment's Advisor's Valuation Committee for circulation to the Company's Board. The Audit and Risk Committee of the Company's Board meets at least once every six months, in line with the Company's semi-annual reporting periods, to review the recommended valuations and approve final valuations for adoption in the Company's financial statements.
La Compañía reconoce transferencias entre niveles de la jerarquía de valor razonable al final del período de reporte durante el cual ocurrió el cambio.
Marco de valoración
The Company employs the valuation framework detailed below with respect to the measurement of fair values. A valuation of the Company's investments held via its Subsidiaries are prepared by the Investment Advisor with reference to IPEV guidelines and the valuation principles of IFRS 13 (Fair Value Measurement). The Investment Advisor recommends these valuations to the Board of Directors. The Audit and Risk Committee of the Company's Board considers the valuations recommended by the Investment Advisor, determines any amendments required and thereafter adopts the fair values presented in the Company's financial statements. Changes in the fair value of financial instruments are recorded in the Consolidated Statement of Comprehensive Income in the line item "Net fair value movement on investments".
Inversiones cotizadas
Quoted investments traded in an active market are classified as Level 1 in the IFRS 13 fair value hierarchy. The investment in Luceco is a Level 1 asset. For Level 1 assets, the holding value is calculated from the closing price on the relevant exchange at the measurement date.
Quoted investments traded in markets that are considered less than active are classified as Level 2 in the IFRS 13 fair value hierarchy. The investment in EPIC Acquisition Corp was considered to be a Level 2 asset in the year ended 31 January 2023. For the year ended 31 January 2024, the investment in EPIC Acquisition Corp is considered to be a Level 3 asset, and therefore no assets are considered to be Level 2.
Inversiones de capital privado no cotizadas e inversiones de fondos no cotizadas
Private equity investments and fund investments are classified as Level 3 in the IFRS 13 fair value hierarchy. The investments in Whittard, David Phillips, Rayware, Denzel's, Pharmacy2U, European Capital Private Debt Fund LP, EPIC Acquisition Corp and EAC Sponsor Limited are considered to be Level 3 assets. Various valuation techniques may be applied in determining the fair value of investments held as Level 3 in the fair value hierarchy;
· For underperforming assets, net asset or liquidation valuation is considered more applicable, in particular where the business' performance be contingent on shareholder financial support;
· For performing assets, market approach is considered to be the most appropriate with a specific focus on trading comparables, applied on a forward basis. Transaction comparables, applied on a historic basis may also be considered. The financial metric to which the multiple is applied will depend on the stage of the company and the sector in which it operates. Typically, mature companies will be valued on the basis of the basis of an EBITDA multiple, while growth companies will be valued on the basis of a sales multiple;
· Para los activos gestionados y valorados por terceros gestores, se revisa la metodología de valoración del tercero gestor. Si se considera apropiado y consistente con los estándares de información, se utilizará la valoración preparada por el administrador externo.
For the year ended 31 January 2024, a public comparable sales multiple valuation is employed for the investment in Denzel's. The valuation methodology has been amended from investment cost given the elapsed time since investment, with changes in market conditions and trading outlook in the intervening period.
The Investment Advisor believe that it is appropriate to apply an illiquidity discount to the multiples of comparable companies when using them to calculate valuations for small, private companies. This discount adjusts for the difference in size between generally larger comparable companies and the smaller assets being valued. The illiquidity discount also considers the premium the market gives to comparable companies for being freely traded or listed securities. The Investment Advisor has determined between 15 per cent. and 25 per cent. to be an appropriate illiquidity discount with reference to market data and transaction multiples seen in the market in which the Investment Advisor operates.
Cuando las inversiones de cartera se mantienen a través de sociedades de cartera subsidiarias, los activos netos de la sociedad de cartera se suman al valor de la inversión de cartera que se evalúa para obtener el valor razonable de la sociedad de cartera que posee la Compañía.
EPIC Acquisition Corp y EAC Sponsor Limited
EPIC Acquisition Corp ("EAC") is a special purpose acquisition company ("SPAC"). For the year ended 31 January 2024, a liquidation valuation is employed for the holdings in EPIC Acquisition Corp and EAC Sponsor Limited, calculated on the basis of the value of ESO Alternative Investments LP's holding in a liquidation scenario. The investments are considered as Level 3 assets. For the year ended 31 January 2023, EPIC Acquisition Corp was valued on a marked to market basis and considered a Level 2 asset and EAC Sponsor Limited was valued on the basis of a probability weighted range of implied values under potential realisation scenarios and considered a Level 3 asset. The valuation methodology has been amended to a liquidation value to reflect the announcement in January 2024 that EPIC Acquisition Corp. will return all residual capital to third parties and wind up. The liquidation valuation approach implies both assets are considered Level 3 assets.
Although management believes that its estimates of fair value are appropriate, the use of different methodologies or assumptions could lead to different measurements of fair value. For fair value measurements of EPIC Acquisition Corp and EAC Sponsor Limited's assets, changing one or more of the assumptions used to reasonably possible alternative assumptions would have the following effects on the investment valuations. The key inputs into the preparation of the valuations of EPIC Acquisition Corp and EAC Sponsor Limited were the distributions available in a liquidation scenario to EAC Sponsor Limited. If these inputs had been taken at the higher end of the range of expected realisations, the value of these assets and profit for the year would have been £33,299 higher. If these inputs had been taken at the lower end of the range, their would be nil change to the value of these assets and profit for the year, given the valuation is prepared on a nil realisation basis. This sensitivity excludes amounts held by EPIC Acquisition Corp. in escrow, which will deliver a fixed distribution in the event of a liquidation scenario.
Jerarquía de valor razonable: instrumentos financieros medidos a valor razonable
The Company's investments in the Subsidiaries at 31 January 2024 are classified as Level 3 (in line with 31 January 2023), given the variation in classification of the underlying assets. The Company values these investments on the basis of the net asset value of these holdings.
La siguiente tabla analiza las inversiones subyacentes mantenidas por las Subsidiarias medidas a valor razonable a la fecha de presentación de informes por el nivel en la jerarquía de valor razonable en el que se clasifica la medición del valor razonable. La Junta evalúa el valor razonable de la inversión total, que incluye deuda y capital.
The tables below show the gross amount and the net amount of all investments held via the Subsidiaries per the fair value hierarchy. The net amount is a result of the application of profit share adjustments relating to the performance fees discussed in Note 5.
Nivel A1 | Nivel A3 | Total | ||
31 de enero de 2024 |
| £ | £ | £ |
Activos financieros a valor razonable con cambios en resultados |
| |||
Inversiones de capital privado no cotizadas (incluida la deuda) | - | 59,103,536 | 59,103,536 | |
Inversiones de fondos | - | 451,348 | 451,348 | |
Quoted investments* | 48,865,293 | 5,262,427 | 54,127,720 | |
Inversiones a valor razonable con cambios en resultados |
| 48,865,293 | 64,817,311 | 113,682,604 |
Otros activos y pasivos (mantenidos al costo) | - | - | 1,127,547 | |
Ajuste de la tarifa de rendimiento | (8,732,750) | (5,355,362) | (14,088,112) | |
Total |
| 40,132,543 | 59,461,949 | 100,722,039 |
| |||||
Nivel A1 | Nivel A2 | Nivel A3 | Total | ||
31 de enero de 2023 |
| £ | £ | £ | £ |
Activos financieros a valor razonable con cambios en resultados |
| ||||
Inversiones de capital privado no cotizadas (incluida la deuda) | - | - | 47,752,184 | 47,752,184 | |
Inversiones en fondos no cotizados | - | - | 3,184,749 | 3,184,749 | |
Inversiones cotizadas | 50,501,249 | 5,495,557 | - | 55,996,806 | |
Inversiones a valor razonable con cambios en resultados |
| 50,501,249 | 5,495,557 | 50,936,933 | 106,933,739 |
Otros activos y pasivos (mantenidos al costo) | - | - | - | 2,591,240 | |
Ajuste de la tarifa de rendimiento | (8,743,708) | - | (368,294) | (9,112,002) | |
Total |
| 41,757,541 | 5,495,557 | 50,568,639 | 100,412,977 |
* There has been a change in the designation of the level of fair value hierarchy of EPIC Acquisition Corp from Level 2 to Level 3 during the current year, with the valuation methodology amended to a liquidation value approach.
The following table, detailing the value of portfolio investments only, shows a reconciliation of the opening balances to the closing balances for fair value measurements in Level 3 of the fair value hierarchy for the underlying investments held by the Subsidiaries.
| 31 enero 2024 | 31 enero 2023 | |||
Inversiones no cotizadas (incluida la deuda) |
| £ | £ | ||
Saldo al 1 de febrero | 50,568,639 | 47,886,854 | |||
Inversiones adicionales | 3,350,912 | 2,086,948 | |||
Distribuciones de capital de inversiones | (2,694,993) | (2,235,136) | |||
Transferencia a inversiones de Nivel 3 | 5,495,557 | - | |||
Cambio en el valor razonable a través de resultados | 2,741,834 | 2,829,973 | |||
Saldo al 31 de enero |
|
|
| 59,461,949 | 50,568,639 |
Datos importantes no observables utilizados en la medición del valor razonable
La siguiente tabla presenta información sobre los datos de entrada no observables significativos utilizados al 31 de enero de 2024 en la medición de instrumentos financieros categorizados como Nivel 3 en la jerarquía del valor razonable.
Descripción | Valor razonable en 31 de enero de 2024 | Significativo entradas no observables |
£ | ||
Inversiones de capital privado no cotizadas (incluida la deuda) | 53,748,174 | Sales / EBITDA multiple |
Inversiones de fondos | 5,713,775 | Valor liquidativo o valor liquidativo declarado |
Las entradas importantes no observables se desarrollan de la siguiente manera:
· Negociación de múltiplos comparables: múltiplos de valoración utilizados por otros participantes del mercado al fijar el precio de activos comparables. Los activos comparables relevantes se seleccionan de empresas públicas que se determina que están próximas a la inversión en función de la similitud del sector, el tamaño, la geografía u otros factores relevantes. El múltiplo de valoración de una empresa comparable se determina calculando el valor empresarial de la empresa implícito en su precio de mercado a la fecha del informe y dividiéndolo por la métrica financiera pertinente (ventas o EBITDA).
· Valor liquidativo informado: para los activos gestionados y valorados por un tercero, la gestora proporciona valoraciones periódicas de la inversión. Se revisa la metodología de valoración del tercero gestor. Si lo considera apropiado y consistente con las normas de información, el Directorio adoptará la valuación preparada por el administrador externo. Se realizan ajustes a las valoraciones de terceros cuando se considera necesario para llegar a la estimación del valor razonable del Director.
· Investment cost: for recently acquired assets (typically completed in the last twelve months), the Investment Advisor considers the investment cost an appropriate fair value for the asset. No asset was valued using investment cost as at 31 January 2024.
· Liquidation value: for underperforming assets, the Investment Advisor considers the value recovered in the event of a liquidation of the asset an appropriate fair value for the asset.
Aunque la administración cree que sus estimaciones del valor razonable son apropiadas, el uso de diferentes metodologías o supuestos podría llevar a diferentes mediciones del valor razonable. Para las mediciones del valor razonable de los activos de Nivel 3, cambiar uno o más de los supuestos utilizados por supuestos alternativos razonablemente posibles tendría los siguientes efectos en las valoraciones de inversión de Nivel 3:
· Para la inversión de la Compañía en activos maduros de Nivel 3, las valuaciones utilizadas en la preparación de los estados financieros implican un múltiplo EV a EBITDA promedio de 7.2x (ponderado por la valuación total de cada activo) (2023: 6.7x). Las entradas clave no observables en la preparación de la valoración de los activos maduros de Nivel 3 fue el múltiplo de EBITDA aplicado a las previsiones financieras del activo. Una sensibilidad del 25 por ciento. se ha aplicado a estos múltiplos, en línea con el descuento máximo de liquidez empleado en las valoraciones. Si estos insumos se hubieran tomado en un 25 por ciento. mayor, el valor de los activos de Nivel 3 y la ganancia del año habrían sido £15,161,561 más altos. Si estos insumos se hubieran tomado en un 25 por ciento. menor, el valor de los activos de Nivel 3 y la ganancia del año habrían sido £17,786,484 más bajos. Un aumento o disminución correspondiente en las previsiones financieras del activo tendría un impacto similar en los activos y las ganancias de la Compañía.
· Para la inversión de la Compañía en activos de Nivel 3 de crecimiento, las valuaciones utilizadas en la preparación de los estados financieros implican un múltiplo EV a ventas promedio de 1.5x (ponderado por la valuación total de cada activo) (2023: 1.4x). Las entradas clave no observables en la preparación de la valoración de los activos de Nivel 3 de crecimiento fueron el múltiplo de ventas aplicado a las previsiones financieras del activo. Una sensibilidad del 25 por ciento. se ha aplicado a estos múltiplos, en línea con el descuento máximo de liquidez empleado en las valoraciones. Si estos insumos se hubieran tomado en un 25 por ciento. mayor, el valor de los activos de Nivel 3 y la ganancia del año habrían sido £860,072 más altos. Si estos insumos se hubieran tomado en un 25 por ciento. menor, el valor de los activos de Nivel 3 y la ganancia del año habrían sido 707,743 XNUMX libras esterlinas menos. Un aumento o disminución correspondiente en las previsiones financieras del activo tendría un impacto similar en los activos y las ganancias de la Compañía.
Clasificación de activos y pasivos financieros
La siguiente tabla establece las clasificaciones de los valores en libros de los activos y pasivos financieros de la Compañía en categorías de instrumentos financieros.
31 de enero de 2024 |
| |||
Activos financieros |
| En la feria propuesta de £ | en amortizado el costo £ | Total £ |
Inversiones a valor razonable con cambios en resultados | 100,722,039 | - | 100,722,039 | |
Efectivo y equivalentes de efectivo | - | 14,462,495 | 14,462,495 | |
| 100,722,039 | 14,462,495 | 115,184,534 | |
Pasivos financieros |
|
|
|
|
Comerciales y otras cuentas a pagar | - | 676,284 | 676,284 | |
Instrumentos de notas de préstamo sin garantía* | - | 3,987,729 | 3,987,729 | |
Acciones preferenciales con dividendo cero** | - | 13,714,191 | 13,714,191 | |
- | 18,378,204 | 18,378,204 | ||
| ||||
|
| |||
31 de enero de 2023 |
| |||
Activos financieros |
| En la feria propuesta de £ | en amortizado el costo £ | Total £ |
Inversiones a valor razonable con cambios en resultados | 100,412,977 | - | 100,412,977 | |
Efectivo y equivalentes de efectivo | - | 22,226,008 | 22,226,008 | |
100,412,977 | 22,226,008 | 122,638,985 | ||
Pasivos financieros |
|
|
|
|
Comerciales y otras cuentas a pagar | - | 596,790 | 596,790 | |
Instrumentos de notas de préstamo sin garantía* | - | 3,987,729 | 3,987,729 | |
Acciones preferenciales con dividendo cero** | - | 20,721,001 | 20,721,001 | |
- | 25,305,520 | 25,305,520 |
* The Directors consider that the fair value of the unsecured loan note instruments is the same as its carrying value.
** The Directors consider that the fair value of the zero dividend preference shares is £12,812,500 (2023: £19,100,000) calculated on the basis of the quoted price of the instrument on the London Stock Exchange of 102.50 pence as at 31 January 2024 (2023: 95.50 pence).
13 Efectivo y equivalentes de efectivo
2024 | 2023 | |
£ | £ | |
Cuentas corrientes y a la vista | 14,462,495 | 22,226,008 |
| 14,462,495 | 22,226,008 |
The current and call accounts have been classified as cash and cash equivalents in the Consolidated Statement of Cash Flows.
14 Acreedores comerciales y otras cuentas a pagar
2024 | 2023 | ||
|
| £ | £ |
Comercio a pagar | 91,297 | 1,008 | |
Tasa de administración acumulada | 36,330 | 36,533 | |
Tarifa de auditoría acumulada | 20,918 | 9,920 | |
Honorario profesional devengado | 29,272 | 45,489 | |
Honorarios acumulados de asesores de inversiones | 484,400 | 487,107 | |
Honorarios de los directores devengados | 11,667 | 14,333 | |
Otras cuentas por pagar | 2,400 | 2,400 | |
Total |
| 676,284 | 596,790 |
15 Pasivos
Notas de préstamo sin garantía ("ULN")
The Company has issued ULN's that are redeemable on 24 July 2024, following the extension of their maturity in July 2023. The Company's ULN's are quoted on the Aquis Stock Exchange. The interest rate for the period up to 23 July 2023 was 7.5 per cent per annum. The interest rate was increased to 8.0 per cent per annum for the period subsequent to 23 July 2023. At 31 January 2024, £3,987,729 (2023: £3,987,729) of ULNs in principal amount were outstanding. Issue costs totalling £144,236 have been offset against the value of the loan note instrument and have been amortised over the period to 24 July 2022. The total issue costs expensed in the year ended 31 January 2024 was £nil (2023: £10,303). The carrying value of the ULNs in issue at the year end was £3,987,729 (2023: £3,987,729). The total interest expense for the ULNs for the year is £309,049 (2023: £309,382). The comparatives for interest expense includes the amortisation of the issue costs. The carrying value of the ULN is presented under current liabilities in the current period as they are redeemable within 12-month period from the Consolidated Statement of Assets and Liabilities date. The ULN has in place Financial Covenants including an Interest Coverage Test (that the ratio of cash and cash equivalents to interest payable is greater than or equal to 6:1) and a Gross Asset Test (that the ratio of gross asset value to financial indebtedness of the Company is greater than or equal to 2:1). The Covenants have been met for the years ended 31 January 2024 and 31 January 2023.
Acciones Preferentes de Dividendo Cero ("Acciones ZDP")
On 17 December 2021 the Company issued 20,000,000 ZDP Shares at a price of £1 per share, raising £20,000,000. The Company's ZDP shares are admitted to trade on the main market of the London Stock Exchange (standard listed). The ZDP Shares will not pay dividends but have a final capital entitlement at maturity on 16 December 2026 of 129.14 pence per ZDP Share. It should be noted that the predetermined capital entitlement of a ZDP Share is not guaranteed and is dependent upon the Company's gross assets being sufficient on 16 December 2026 to meet the final capital entitlement. Under IAS 32 - Financial Instruments: Presentation, the ZDP Shares are classified as financial liabilities and are held at amortised cost. Issue costs totalling £573,796 have been offset against the value of the ZDP Shares and are being amortised over the life of the instrument. In July 2023, the Company completed the repurchase of 7,500,000 ZDP shares, which are held in treasury. Following this buyback, the Company has 12,500,000 ZDP shares remaining in issue. The total issue costs expensed in the year ended 31 January 2024 was £115,359 (2023: £115,359). The carrying value of the ZDP Shares in issue at the year-end was £13,714,191 (2023: £20,721,001). The total finance charge for the ZDP Shares for the year is £868,190 (2023: £1,128,093). This includes the ZDP Share finance charge and the amortisation of the Issue costs.
31 de enero de 2024 | 31 de enero de 2023 | ||
|
| £ | £ |
Saldo al 1 de febrero | 20,721,001 | 19,580,190 | |
ZDP non cash charge | 945,348 | 1,140,811 | |
Recompra de acciones de ZDP | (7,952,158) | - | |
Total |
| 13,714,191 | 20,721,001 |
16 Capital social
2024 | 2024 | 2023 | 2023 | ||
Número | £ | Número | £ | ||
Capital social autorizado | |||||
Acciones ordinarias de 5 peniques cada una | 45,000,000 | 2,250,000 | 45,000,000 | 2,250,000 | |
Llamado, asignado y pagado en su totalidad | |||||
Acciones ordinarias de 5 peniques cada una | 34,616,554 | 1,730,828 | 34,616,554 | 1,730,828 | |
Acciones ordinarias de 5 peniques cada una en tesorería | (4,739,707) | - | (4,951,575) | - | |
|
| 29,876,847 | 1,730,828 | 29,664,979 | 1,730,828 |
Compartir premium |
| - | 13,619,627 | - | 13,619,627 |
No se emitieron acciones durante el año terminado el 31 de enero de 2024 y el año terminado el 31 de enero de 2023.
During the year ended 31 January 2024, the Company transferred 211,868 out of treasury to the Trust (2023: repurchase of 1,855,000 shares into treasury) with a total value of £350,006 (2023: £2,587,375). These shares are held as treasury shares.
Durante el año finalizado el 31 de enero de 2024, el Trust compró 301,684 2023 acciones (280,739: 525,920 2023 acciones) por un valor total de £484,821 257,061 (31: £2024 2023 862,290). 31 acciones otorgadas a los Participantes en el año que finalizó el 2024 de enero de 1,546,693 (2023: 1,290,202). Al 7 de enero de XNUMX, el Fideicomiso poseía XNUMX acciones (XNUMX: XNUMX) (ver nota XNUMX).
17 Pérdida básica y diluida por acción (peniques)
Basic loss per share for the year ended 31 January 2024 is 1.39 pence (2023: basic loss per share of 147.95 pence). This is calculated by dividing the loss of the Group for the year attributable to the ordinary shareholders of £396,462 (2023: loss of £43,836,210) divided by the weighted average number of shares outstanding, excluding the shares of the EBT subsidiary, during the year of 28,469,486 (2023: 29,628,992 shares). The basic loss per share for the year ended 31 January 2023 has been restated to exclude the shares of the EBT subsidiary from the weighted average number of outstanding shares so that it is consistent with the calculation for the year ended 31 January 2024.
Diluted loss per share for the year ended 31 January 2024 is 1.33 pence (2023: diluted profit per share of 141.77 pence). This is calculated by dividing the loss of the Group for the year attributable to ordinary shareholders of £396,462 (2023: loss of £43,836,210) divided by the weighted average number of shares outstanding, including the shares of the EBT filial, during the year of 29,832,732 (2023: 30,921,130 shares).
18 NAV por acción (peniques)
The Group's NAV per share of 324.26 pence (2023: 328.41 pence) is based on the net assets of the Group at the year-end of £96,879,976 (2023: £97,421,364) divided by the outstanding shares of 29,876,847 (2023: 29,664,979).
The shares of the EBT subsidiary are included in the outstanding shares when calculating the Company's NAV per share to ensure that the NAV per share is stable in the event of share purchases made by the EBT subsidiary or the vesting of shares of the EBT subsidiary.
19 Efectivo neto utilizado en actividades de operación
Conciliación de la utilidad antes de costos financieros e impuestos con el efectivo neto utilizado en actividades operativas:
2024 | 2023 | |
| Grupo procesos | Grupo procesos |
£ | £ | |
Pérdida del año antes de impuestos | (396,462) | (43,836,210) |
Ajustes por ingresos/gastos no monetarios |
|
|
Movimiento del valor razonable neto de las inversiones | (3,384,604) | 39,438,551 |
Intereses sobre instrumentos de pagarés de préstamos no garantizados | 309,049 | 309,382 |
Cargo financiero de acciones preferenciales con dividendo cero | 868,190 | 1,128,093 |
Pérdida antes del costo financiero | (2,603,827) | (2,960,184) |
Ajustes: | ||
Gastos de pago basados en acciones | 339,593 | 555,225 |
Compra de inversiones | (3,350,000) | (3,174,948) |
Producto de inversiones | 6,425,542 | 3,848,880 |
811,308 | (1,731,027) | |
Cambios en el capital de trabajo |
| |
Movimiento de cuentas por cobrar comerciales y otras y pagos anticipados | 14,253 | 6,848 |
Movimiento de cuentas comerciales y otras cuentas por pagar | 79,494 | (373,147) |
Partidas no monetarias | ||
Efecto de las fluctuaciones del tipo de cambio sobre el efectivo y equivalentes de efectivo | 1,294 | (2,310) |
Net cash generataed from / (used in) operating activities | 906,349 | (2,099,636) |
20 Instrumentos financieros
Los instrumentos financieros de la Compañía comprenden:
· Inversiones en empresas cotizadas y no cotizadas en poder de Filiales, que incluyen acciones y préstamos
· Efectivo y equivalentes de efectivo, acciones de ZDP e instrumentos de notas de préstamo sin garantía; y
· Accrued interest and trade and other receivables, accrued expenses and trade and other payables.
Objetivos y políticas de gestión de riesgos financieros
Los principales riesgos derivados de los instrumentos financieros de la Sociedad son el riesgo de liquidez, el riesgo de crédito, el riesgo de precio de mercado y el riesgo de tipo de interés. Ninguno de esos riesgos está cubierto. Estos riesgos surgen a través de los instrumentos financieros de propiedad directa ya través de las exposiciones indirectas creadas por los instrumentos financieros subyacentes en las Filiales. Estos riesgos son gestionados por los Consejeros junto con el Asesor de Inversiones. El Asesor de Inversiones es responsable de la gestión diaria de los instrumentos financieros en las Filiales.
La gestión del capital
El capital de la Compañía comprende el capital social, la prima de emisión y las reservas y no está sujeto a requisitos de capital impuestos externamente.
Riesgo de liquidez
El riesgo de liquidez es el riesgo de que la Sociedad tenga dificultades para cumplir con las obligaciones asociadas a sus pasivos financieros que se liquidan mediante la entrega de efectivo u otro activo financiero. Los activos líquidos de la Compañía comprenden efectivo y equivalentes de efectivo y cuentas por cobrar comerciales y otras, que son fácilmente realizables.
Vencimientos contractuales residuales de activos financieros
31 de enero de 2024 |
| Menos de 1 mes | Meses 1 - 3 | 3 meses a 1 año | 1 - 5 años | Mas de 5 años | Sin vencimiento declarado | |
Activos financieros |
| |||||||
Efectivo y equivalentes de efectivo | 14,462,495 | - | - | - | - | - | ||
Total |
| 14,462,495 | - | - | - | - | - | |
| ||||||||
31 de enero de 2023 |
| Menos de 1 mes | Meses 1 - 3 | 3 meses a 1 año | 1 - 5 años | Durante años 5 | Sin vencimiento declarado | |
Activos financieros |
| |||||||
Efectivo y equivalentes de efectivo | 22,226,008 | - | - | - | - | - | ||
Total |
| 22,226,008 | - | - | - | - | - |
Vencimientos contractuales residuales de pasivos financieros
31 de enero de 2024 |
| Menos de 1 mes | Meses 1 - 3 | 3 meses a 1 año | 1 - 5 años | Mas de 5 años | Sin vencimiento declarado | |
Pasivos financieros |
| |||||||
Comerciales y otras cuentas a pagar | 676,284 | - | - | - | - | - | ||
Instrumentos de notas de préstamo | - | - | 3,987,729 | - | - | - | ||
Acciones preferentes con dividendo cero | - | - | - | 16,142,500 | - | - | ||
Total |
| 676,284 | - | 3,987,729 | 16,142,500 | - | - | |
| ||||||||
31 de enero de 2023 |
| Menos de 1 mes | Meses 1 - 3 | 3 meses a 1 año | 1 - 5 años | Durante años 5 | Sin vencimiento declarado | |
Pasivos financieros |
| |||||||
Comerciales y otras cuentas a pagar | 596,790 | - | - | - | - | - | ||
Instrumentos de notas de préstamo | - | - | 3,987,729 | - | - | - | ||
Acciones preferentes con dividendo cero | - | - | - | 25,827,284 | - | - | ||
Total |
| 596,790 | - | 3,987,729 | 25,827,284 | - | - |
Riesgo crediticio
El riesgo de crédito es el riesgo de que un emisor o contraparte no pueda o no quiera cumplir con un compromiso que ha contraído con la Compañía.
La Compañía, a través de sus participaciones en Subsidiarias, ha adelantado préstamos a varias compañías privadas, lo que expone a la Compañía a un riesgo crediticio significativo. Los préstamos se adelantan a empresas privadas no cotizadas, que no tienen calificación de riesgo crediticio. Se suscriben como parte de la estrategia de inversión de la Compañía y sus Filiales, y el riesgo de crédito se gestiona mediante la adopción de garantías cuando estén disponibles (por lo general, un cargo flotante) y el Asesor de Inversiones desempeñando un papel activo en la gestión de las empresas prestatarias.
Aunque el asesor de inversiones busca establecer cronogramas de pago realistas, no necesariamente considera que una empresa de cartera que no paga a tiempo y en su totalidad tiene un "rendimiento inferior al esperado" y busca monitorear cada empresa de cartera caso por caso. Sin embargo, en todos los casos, el Asesor de Inversiones se reserva el derecho de ejercer los derechos de paso. Además del pago de los préstamos adelantados, la Compañía y las Subsidiarias a menudo organizarán estructuras de acciones preferentes adicionales y adquirirán participaciones significativas de capital para crear valor para los accionistas. Es el desempeño de la combinación de todos los valores, incluida la deuda de terceros, lo que determina la opinión de la Compañía sobre cada inversión.
A la fecha de reporte, los activos financieros de la Compañía expuestos al riesgo de crédito ascendían a lo siguiente (excluyendo la exposición en las Subsidiarias subyacentes):
2024 | 2023 | ||
£ | £ | ||
Efectivo y equivalentes de efectivo | 14,462,495 | 22,226,008 | |
Total | 14,462,495 | 22,226,008 |
Cash balances are placed with HSBC Bank plc, Barclays Bank plc and Santander Financial Services plc, all of which have the credit rating of A1 Stable (Moody's).
Riesgo de precio de mercado
El riesgo de precio de mercado es el riesgo de que el valor de un instrumento financiero fluctúe como resultado de cambios en los precios de mercado (distintos de los derivados del riesgo de tipo de interés o el riesgo de tipo de cambio). La Compañía está expuesta a un riesgo de precio de mercado a través de sus inversiones de capital mantenidas a través de sus participaciones en Subsidiarias, las cuales se expresan a valor razonable.
Sensibilidad al riesgo de precio de mercado
La Compañía está expuesta al riesgo de precio de mercado con respecto a sus participaciones accionarias subyacentes en varias compañías cotizadas y no cotizadas que se expresan a valor razonable. Luceco plc se cotizó en el Mercado Principal de la Bolsa de Valores de Londres el 31 de enero de 2024. Las acciones y warrants de EPIC Acquisition Corp se cotizaron en la Bolsa de Valores de Euronext Amsterdam el 31 de enero de 2024.
If Luceco plc's share price had been 5.0 per cent. higher than actual close of market on 31 January 2024, EPE Special Opportunities Limited's NAV per share would have been 2.0 per cent. (2023: 2.03 per cent.) higher than reported. If Luceco's share price had been 5.0 per cent. lower than actual close of market on 31 January 2024, EPE Special Opportunities Limited's NAV per share would have been 2.0 per cent. (2023: 2.03 per cent.) lower than reported. These movements would have had a corresponding effect on the profit for the year.
A sensitivity is not prepared for EPIC Acquisition Corp. given that the vehicle is in liquidation.
Riesgo de tipo de interés
La Compañía está expuesta al riesgo de tasa de interés a través de sus instrumentos de notas de préstamo sin garantía y en sus saldos de efectivo. La mayoría de los préstamos son a tasas fijas. Los saldos de caja generan intereses a tasas variables. Los instrumentos de notas de préstamos no garantizados tienen tasas de interés fijas.
La siguiente tabla resume la exposición de la Compañía a los riesgos de tasa de interés. Incluye los activos y pasivos financieros de la Compañía a la fecha de vencimiento o revisión contractual, la que sea anterior, medidos por los valores en libros de los activos y pasivos:
31 de enero de 2024 |
| Menos de 1 mes | 1 meses a 1 años | 1 - 5 años | Mas de 5 años | Que no devenga intereses | Total |
Activos |
| £ | £ | £ | £ | £ | £ |
Cuentas por cobrar y efectivo |
| ||||||
Cuentas comerciales y otras cuentas por cobrar | - | - | - | - | - | - | |
Efectivo y equivalentes de efectivo | 14,462,495 | - | - | - | - | 14,462,495 | |
Activos financieros totales | 14,462,495 | - | - | - | - | 14,462,495 | |
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Pasivos |
| ||||||
Pasivos financieros medidos a costo amortizado |
| ||||||
Comerciales y otras cuentas a pagar | - | - | - | - | (676,284) | (676,284) | |
Instrumentos de pagarés de préstamos no garantizados | - | (3,987,729) | - | - | - | (3,987,729) | |
Pasivos financieros totales |
| - | (3,987,729) | - | - | (676,284) | (4,664,013) |
31 de enero de 2023 | Menos de 1 mes | 1 meses a 1 años | 1 - 5 años | Mas de 5 años | Que no devenga intereses | Total |
Activos | £ | £ | £ | £ | £ | £ |
Cuentas por cobrar y efectivo | ||||||
Cuentas comerciales y otras cuentas por cobrar | - | - | - | - | - | - |
Efectivo y equivalentes de efectivo | 22,226,008 | - | - | - | - | 22,226,008 |
Activos financieros totales | 22,226,008 | - | - | - | - | 22,226,008 |
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Pasivos | ||||||
Pasivos financieros medidos a costo amortizado | ||||||
Comerciales y otras cuentas a pagar | - | - | - | - | (596,790) | (596,790) |
Instrumentos de pagarés de préstamos no garantizados | - | (3,987,729) | - | - | - | (3,987,729) |
Pasivos financieros totales | - | (3,987,729) | - | - | (596,790). | (4,584,519) |
Sensibilidad a las tasas de interés
La Compañía está expuesta al riesgo de tasa de interés de mercado a través de sus saldos de efectivo e instrumentos de notas de préstamos no garantizados. No se ha proporcionado un análisis de sensibilidad ya que no se considera significativo para el desempeño de la Compañía.
Riesgo de cambio
The Group has no significant exposure to foreign currency risk.
Exposición a otro riesgo de precio de mercado
The Investment Advisor monitors the concentration of risk for equity and debt securities based on counterparties and industries (and geographical location). The Company's underlying investments including bank deposits held through its Subsidiaries are concentrated in the following industries.
2024 | 2023 | |
% | % | |
Consumidor y Minorista | 49 | 41 |
Ingeniería, Fabricación y Distribución | 35 | 34 |
Healthcare | 2 | 2 |
Fondos de crédito | <1 | 3 |
Depósitos bancarios | 13 | 20 |
100 | 100 |
The Group notes that there was a concentration on the Consumer and Retail sector, representing 49 per cent. of investments for the year ended 31 January 2024 (2023: Consumer and Retail sector representing 41 per cent.). The Company monitors carefully the sector concentration risk across the portfolio.
Riesgo operacional
El 'riesgo operativo' es el riesgo de pérdida directa o indirecta que surge de una amplia variedad de causas asociadas con los procesos, la tecnología y la infraestructura que respaldan las actividades de la Compañía (tanto en la Compañía como en sus proveedores de servicios) y de factores externos (distintos de los , riesgos de mercado y de liquidez) como los que surgen de los requisitos legales y reglamentarios y las normas generalmente aceptadas de comportamiento en la gestión de inversiones.
El objetivo de la Compañía es gestionar el riesgo operativo para equilibrar la limitación de las pérdidas financieras y el daño a su reputación con el logro de su objetivo de inversión de generar rendimientos para los inversores.
La responsabilidad principal del desarrollo e implementación de controles sobre el riesgo operativo recae en la Junta Directiva. Esta responsabilidad se apoya en el desarrollo de estándares generales para la gestión del riesgo operacional, que abarca los controles y procesos en los proveedores de servicios y el establecimiento de niveles de servicio con los proveedores de servicios, en las siguientes áreas:
· documentación de controles y procedimientos;
· requisitos para:
- appropriate segregation of duties between various functions, roles and responsibilities;
- reconciliation and monitoring of transactions; and
- periodic assessment of operational risk faced;
· la adecuación de los controles y procedimientos para abordar los riesgos identificados;
· cumplimiento de los requisitos reglamentarios y legales;
· desarrollo de planes de contingencia;
· formación y desarrollo profesional;
· estándares éticos y comerciales; y
· mitigación de riesgos, incluido el seguro si este es efectivo.
Los principales proveedores de servicios de la Compañía incluyen los siguientes:
· Administrador: Langham Hall Fund Management (Jersey) Limited
· Asesor de inversiones: EPIC Investment Partners LLP
· Administrador financiero: EPIC Administration Limited
· Asesor nominado y Broker: Numis Securities Limited
· Registrar and CREST Providers: Computershare Investor Services (Jersey) Limited
La evaluación de los Directores sobre la adecuación de los controles y procesos establecidos en los proveedores de servicios con respecto al riesgo operativo se lleva a cabo a través de discusiones periódicas con los proveedores de servicios, así como visitas a sus oficinas. La Compañía también lleva a cabo revisiones periódicas de terceros de las actividades de los proveedores de servicios.
21 intereses de los directores
Four of the Directors have interests in the shares of the Company as at 31 January 2024 (2023: five). Clive Spears holds 63,010 ordinary shares (2023: 51,841). Heather Bestwick holds 50,600 ordinary shares (2023: 39,431). David
Pirouet holds 33,635 ordinary shares (2023: 17,309). Michael Gray holds 11,627 ordinary shares (2023: 5,614).
22 Partes relacionadas
La Compañía no tiene una parte controladora final.
Directors' fees expenses during the year amounted to £162,474 (2023: £172,000) of which £11,667 is accrued as at 31 January 2024 (2023: £14,333).
There were no shares re-acquired from related parties during the year ended 31 January 2024 (2023: nil). Certain Directors of the Company and other participants are incentivised in the form of equity settled share-based payment transactions, through a Jointly Owned Share Plan (see note 7).
Los detalles de la remuneración pagadera a los principales proveedores de servicios se incluyen en la nota 5 de los estados financieros.
Las comisiones de rendimiento se pagan al Asesor de Inversiones en función del rendimiento de las Filiales y se deducen al calcular el valor razonable de las Filiales (véase la nota 5).
In December 2021, ESO Alternative Investments LP invested ?10 million into EPIC Acquisition Corp ("EAC"), a special purpose acquisition company ("SPAC") and EAC's sponsor, EAC Sponsor Limited (the "Sponsor"). The Sponsor was jointly led by the Investment Advisor and TT Bond Partners (an independent party). In January 2024, EPIC Acquisition Corp announced that it will return all residual capital to the Company and to third parties and wind up. In February 2024, the realisation of the investment in EPIC Acquistion Corp was completed, returning ?6.2 million. The realisation from EAC Sponsor Limited remains subject to the completion of the liquidation.
In July 2023, the Company agreed the extension of the maturity of £4.0 million unsecured loan notes to 24 July 2024. Delphine Brand, a Managing Partner of EPIC and a connected party of Giles Brand (a person discharging managerial responsibilities ("PDMR") for the Company), is a minority holder of the unsecured loan notes.
Giles Brand, Managing Partner of the Investment Advisor, is a director of certain portfolio holding vehicles, including Luceco plc and Hamsard 3145 Limited (trading as Whittard of Chelsea).
23 Commitments and Contingencies
As at 31 January 2024, ESO Investments 1 Limited has a contingent guarantee of £1.75 million outstanding (2023: £nil) in favour of Rayware Limited and its third party debt providers (a £2.50 million guarantee was provided in July 2023 of which £0.75 million was drawn down in the subsequent period).
24 Otra información
The revenue and capital reserves are presented in accordance with the Board of Directors' agreed principles, which are that the net gain / loss on investments is allocated to the capital reserve and all other income and expenses are allocated to the revenue reserve and other equity. The total reserve of the Company for the year ended 31 January 2024 is £81,529,521 (2023: £82,070,909).
25 Eventos posteriores
In February 2024, the Company received ?6.2 million as proceeds from the realisation of its holding in EPIC Acquisition Corp.
Medidas de desempeño alternativas
An Alternative Performance Measure is a numerical measure of the Group's historical or current performance.
Medidas | Definición | ||||||||||||||||
Premium / Discount to NAV | The amount by which the share price of the Company is either higher (premium) or lower (discount) than the NAV per share, expressed as a percentage of the NAV per share.Please find a reconciliation to the NAV per share of the Company below
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Comparable | Ganancias antes de intereses, impuestos, depreciación y amortización.
Esta medida se calcula al nivel de la cartera subyacente y, por lo tanto, no es directamente conciliable con las métricas GAAP en los estados financieros. | ||||||||||||||||
EV / EBITDA multiple | The EV / EBITDA multiple is calculated by dividing a company's Enterprise Value ('EV') by its annual EBITDA. The mature unquoted asset valuation EV / EBITDA multiple quoted in the report is weighted by the Fair Value of the underlying investments, and excludes assets at a pre-profitability growth stage.
Esta medida se calcula al nivel de la cartera subyacente y, por lo tanto, no es directamente conciliable con las métricas GAAP en los estados financieros.
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EV / Sales multiple | The EV / Sales multiple is calculated by dividing a company's EV by its annual Sales.
Esta medida se calcula al nivel de la cartera subyacente y, por lo tanto, no es directamente conciliable con las métricas GAAP en los estados financieros. | ||||||||||||||||
IRR | The gross Internal Rate of Return ("IRR") of an investment or set of investments, calculated as the annual compound rate of return on the investment cashflows. Gross IRR does not reflect expenses to be borne by the relevant fund or its investors, including performance fees, management fees, taxes and organisational or transaction expenses.
This measure is calculated at the level of the underlying portfolio and therefore is not directly reconcilable to GAAP metrics in the financial statements.
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Liquidez | Company liquidity is calculated as cash balances held by the Company, inclusive ofcash held by Subsidiaries in which the Company is the sole investor.
Encuentre una conciliación de los saldos de efectivo mantenidos por la Compañía a continuación.
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CAGR de ventas de cartera | La tasa de crecimiento anual compuesta de las ventas de la cartera ("CAGR") se calcula sobre la base de la CAGR implícita en la suma de las ventas anuales del último año financiero completado de las empresas de la cartera frente al período de tres años anterior.
Esta medida se calcula al nivel de la cartera subyacente y, por lo tanto, no es directamente conciliable con las métricas GAAP en los estados financieros.
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MM | El Múltiplo de Dinero ("MM") se calcula como las realizaciones brutas totales de una inversión o conjunto de inversiones, divididas por el costo total de la inversión. El múltiplo de dinero bruto no refleja los gastos que deben soportar el fondo correspondiente o sus inversores, incluidas las comisiones de rendimiento, las comisiones de gestión, los impuestos y los gastos organizativos o de transacción.
Esta medida se calcula al nivel de la cartera subyacente y, por lo tanto, no es directamente conciliable con las métricas GAAP en los estados financieros.
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NAV por acción | The Group's NAV per share is calculated as the net assets of the Group at the year-end divided by the outstanding shares.The shares of the EBT subsidiary are included in the outstanding shares when calculating the Company's NAV per share to ensure that the NAV per share is stable in the event of share purchases made by the EBT subsidiary or the vesting of shares of the EBT subsidiary.
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Deuda neta | Net Debt is calculated as the total third party debt of a portfolio company, less cash balances.
Esta medida se calcula al nivel de la cartera subyacente y, por lo tanto, no es directamente conciliable con las métricas GAAP en los estados financieros. | ||||||||||||||||
Apalancamiento de la cartera | El apalancamiento de la cartera se calcula como la Deuda Neta agregada de la cartera, dividida por el EBITDA anual agregado de la cartera.Esta medida se calcula al nivel de la cartera subyacente y, por lo tanto, no es directamente conciliable con las métricas GAAP en los estados financieros.
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Rentabilidad anualizada del precio de las acciones
| El rendimiento anualizado del precio de las acciones se calcula como la CAGR implícita en el precio de las acciones de la Compañía frente al precio de las acciones 10 años antes.
Encuentre una conciliación con el precio de las acciones de la Compañía a continuación:
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Lista no auditada de accionistas que poseen más del 3% de las acciones emitidas
Al 31 de enero de 2024
Tenencia porcentual | |||
Marca Giles | 35.5% | ||
Corporación de Lloyds | 9.9% | ||
Inversores de valor de activos | 5.1% | ||
Primera Equidad | 4.8% |
| |
Boston Trust Company Limited (fideicomisario del esquema JOSP de ESO) | 4.5% | ||
Lombardo Odier Darier Hentsch | 3.5% | ||
Total más del 3% de participación | 63.3% | ||
Información de la compañía
directiva | Administrador y dirección de la empresa |
CL Spears (presidente) | Gestión de fondos Langham Hall (Jersey) Limitado |
H. Bestwick | Casa Gaspé |
D. Pirouet | 66-72 Explanada, St Helier |
mm gris | Maillot JE1 2LH |
Asesor de Inversiones | Administradora financiera |
Socios de inversión EPIC LLP | Administración EPIC limitada |
casa audrey | casa audrey |
16-20 Plaza de Ely | 16-20 Plaza de Ely |
Londres EC1N 6SN | Londres EC1N 6SN |
Auditores y contadores informantes | Asesor nominado y Broker |
PricewaterhouseCoopers CI LLP | Numis Valores Limitada |
Explanada 37 | Calle Gresham, 45 |
St. Helier, Jersey | Londres EC2V 7BF |
Islas del Canal JE1 4XA | |
Banqueros | Agente registrado (Bermudas) |
Banco Barclays plc | Conyers Dill & Pearman |
1 lugar de Churchill | Casa Clarendon, 2 Church Street |
Canary Wharf | Hamilton HM 11 |
Londres E14 5HP | Bermudas |
Banco HSBC plc | Proveedores de registro y CREST |
1r Piso | Servicios para inversores de Computershare (Jersey) Limited |
60 Queen Victoria Street | Casa de Queensway |
Londres EC4N 4TR | Calle Hilgrove |
St Helier JE1 1ES | |
Santander Internacional | Relaciones con los inversores |
PO Box 545 | ricardo spiegelberg |
19-21 calle comercial | Compañía Cardew |
St. Helier, Jersey, JE4 8XG | 29 Campos de la posada de Lincoln |
| Londres WC2A 3EG |
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