Our Track Record

Endeavour was established in 2005, and its previously experienced team began making EIS investments that year. By February 2024, it had introduced investors to 57 companies for which either advanced assurance for qualification under EIS had been obtained from HMRC, or HMRC had issued forms EIS 2 and EIS 3 to the companies (“EIS qualifying companies”).

Gross proceeds (in normal circumstances no tax would apply)	£1,899,164
Multiple on gross investment	3.3
Multiple on net investment	4.5
Gross proceeds if ALL non-exits fail	£1,713,164
Total investments	57
Failed (25%)	14
Exited (21%)	12
Remaining (54%)	31

Portfolio returns

1. If a client put the round sum of £10,000 into each of the 57 companies when first circulated, (a total gross investment of £570,000), the gross value of the investment proceeds received, assuming a liquidation at 29 February 2024 of investments still held at that date at their carrying value, would be £1,899,164. The quarterly compounded IRR to end 29 February 2024, before any tax reliefs or charges is 16.91%
2. Including the effects of tax, including EIS relief, the quarterly compounded IRR for the same period is 20.2%

Note on portfolio returns

The returns cited in (2) above are on the basis that all EIS qualifying companies have maintained their qualifying status throughout the necessary 3-year period. One member of the portfolio was refused qualifying status by HMRC after advanced assurance had previously been obtained, due to a technical temporary breach concerning its ownership. If that entity is excluded from the portfolio altogether, the annual returns net of EIS relief cited in (2) above are amended to 14.4%. If the entity is included, but the gains are shown net of capital gains tax that would be payable if the investment were were taxed at its realised value, the quarterly compounded IRR to 29 February 2024, after allowing for tax reliefs for other investments, is amended to 19.0%.

Commentary on returns

Most EIS track records, when they are disclosed, revalue stocks on an ongoing basis including when a round has been issued at a higher price. We hold stocks at cost, unless a cash event or failure has occurred. If we audited on the basis that others do, marking up the valuation to that of a subsequent investment round, the return would be 26% IRR.

The sum invested of £570,000 pre-tax relief has delivered cash out of £1,899,164 to end of February 2024. This equates to a multiple of 3.3 excluding EIS relief and tax generally and 4.5x with (3.9x if tax on the gain of the member of the portfolio that no longer has qualifying status is taken into account)

These returns are positively influenced by two out-performing investments. AIM-listed Blue Prism Group PLC, where the price per share on 31 January 2020 was £17.44. Santander bank announced its partial purchase of Ebury Partners on 4 October 2019 for £272.22 per share, and another purchase on 30 April 2022 at £323.22 per share. These represent RoI of 160x and 38x respectively.

We believe there to be considerable further value to be realised in the portfolio which has not been taken into account. We consider it highly unlikely that ALL remaining portfolio investments will fail, but were that to have happened at 29 February 2024, the returns would be adjusted to 4.0x.

This track record has been established over a diversified portfolio of mainly technology related growth EIS companies over 18 years.

Independent Assessment Report

A letter from accountants Beavis Morgan outlining the basis for their independent limited assurance conclusions on the track record is on page 31.

Track Record Methodology 

In computing its track record for EIS investments, Endeavour has employed the following methodology:

1. Returns are calculated by reference to quarterly compounding;
2. Returns are calculated for the period 1 October
3. 2005 to 29 February 2024;
4. It is assumed that an investment of £10,000 is made into each EIS qualifying company in the first investment round arranged by Endeavour, gross of tax relief provided to individual investors under the EIS scheme by HMRC; it is assumed that no further funds are invested in subsequent funding rounds;
5. It is assumed that tax relief of 30% (20% for investments made up to 5 April 2011) on the amount subscribed is received. It is assumed that tax relief is received in the quarter following subscription;
6. Where the investee company has failed, it is assumed that loss relief of 40% of the amount subscribed net of tax relief is given by HMRC in the quarter of the end of the tax year in which the loss occurs;
7. Where shares in EIS qualifying companies are sold before the expiry of the EIS three-year qualifying period, it is assumed that capital gains tax is paid at the prevailing rate on the gain and income tax relief is clawed back. It is assumed that tax is paid and income tax relief is clawed back in the quarter of the end of the tax year in which the disposal occurs;
8. Where investments in EIS qualifying companies have been held for less than three years at 29 February 2024 it is assumed that those shares will be held and the company will continue to qualify for the requisite period such that there will be no clawback of income tax relief claimed and capital gains tax relief will remain available on the subsequent disposal.
9. Where the shares of EIS qualifying companies are quoted or listed on an investment exchange, the value of the holding at 29 February 2024 is calculated by reference to the closing bid price at 29 February 2024;
10. Otherwise, investments are valued at 29 February 2024 based on the share price ruling at the date of the latest funding round, or at cost in the absence of further share issues.
11. Where investors have a choice on when to exit, it is assumed that investors will remain invested until such time as exit is effectively mandatory (because of company law provisions or requirements of the investee articles).