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2017 Results
2016 Results
Lance O'Neill and CCCAL Who are City and Claremont?
Shareholder Return
What's the End Game?
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Directors

Lance O'Neill
Benjamin Edwards (appt 2016)
Nigel Duxbury (resigned 2016)

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Financial Performance
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Investments

Syntaxis
Calix Limited
MediaZest
Alba Minerals
Andes Energia

2015 Financial Results

The 2015 accounts were posted through my letter box on 15th July 2016 and I was not the only shareholder who received the accounts at this time. That's 6 and a half months after the year end of 31st December 2015. The delay cannot have been due to the complexity because the accounts are incredibly simple as you would expect for a vehicle such as EP&F which has no operating business. So the time taken to send the accounts to shareholders is not easily explained.

Typically the accounts themselves can best be described as dire. The company posted a significant loss of £179,802 (3.8p per share) and the net asset value decreased to £1.1M

The salaries of the 2 directors, Lance O'Neill and Nigel Duxbury, alone amounted to 5.5% of the company's year-end net asset value.

Total administrative expenses, including directors' salaries, over the year consisted of £107,126 equating to 9.6% of the year end net asset value.

There is no indication that the company actually did anything during the year bar selling some investments. Loss on investments totalled £74,462.

There is the usual "related party transactions" section. £66,992(2014:£66,992) was due from Andes Energia of which Nigel Duxbury is a director. This amount due is 6% of the net asset value of EP&F. Also £35,685(2014:£35,685 was due from Mediazest a company of which Lance O'Neill is a director.

Quite comically Lance O'Neill states; "The board has taken steps at the end of the year to achieve a demonstrable and consistent revenue stream; these changes are highlighted in the Directors' Report". What O'Neill is referring to is investing £540,000, 60% of the companys' remaining cash, in a "€2,500,000 Senior Secured 12.5% Loan Facility with attached equity participation warrants issued by Syntaxis".

It's taken EP&F a dozen years to make a significant investment and incredibly, given it is EP&Fs' largest investment by a country mile, no further information is given on this "loan facility". It looks like it's effectively a bond, issued by Benjamin Edward's Syntaxis, that should pay a coupon of £67,500 per year. In other words the coupon will be enough to pay the directors' salaries for a year and leave a tiny £7,500 left over. However if it is paying a 12.5% coupon there is obviously a high degree of risk. There is also an issue here as regards portfolio diversification. As any school-boy knows its appallingly bad practice to have 50% of your portfolio invested in a single asset. What is this loan secured on?

These results confirm what everyone already knows. That the business is not viable. I think after 12 years of continual value destruction we're on pretty safe ground making this assertion. The only winners here are the directors, it's a disaster for everyone else. EP&F is a text book example of a business that should cease trading immediately and wind itself up.