Lillybrook Showjumping Enterprise Investment

The content of this promotion has not been approved by an authorised person within the meaning of the financial services and markets act 2000
(“FSMA”). Reliance on this promotion for the purpose of engaging in any investment activity may expose an individual to significant risk of losing
all of the property or other assets invested. Any person who is in doubt about the investment to which this document relates should consult an
authorised person under FSMA specialising in advising on investments of the kind to which this document relates.
Lillybrook Showjumping
Enterprise Investment Scheme
Most people have heard of investing in
race horses, but the opportunity offered
by LSL enables certified high net worth
individuals and self-certified sophisticated
investors to invest in a portfolio of high
quality showjumping horses possessing
world championship or Olympic competition
potential. The USA is the biggest marketplace
for equine sale.
Opportunity
The directors believe that an investment in the Lillybook Showjumping
Limited (LSL) provides a number of potential benefits for Investors,
including tax reliefs under the Enterprise Investment Scheme (EIS) for
eligible investors.
The world of show jumping is a glamorous global sport, spectators
of which include the rich and famous. Horses can change hands for
substantial sums. An investment in LSL represents an opportunity to be
involved in this glamorous arena together with the potential for
financial returns.
LSL will buy horses that its directors believe demonstrate potential and
will then develop and train those horses with the aim of selling them
at a net profit. A well trained and developed horse, including through
competition, has the potential to substantially increase in value. The
LSL directors believe that, with the assistance of its two consultants
experienced in the world of show jumping, and Jessica Mendoza and
her association with Team Mendoza, LSL is in a strong position to
increase the value of show jumpers in this way.
A Growing Market
The LSL directors are of the view that the world of show jumping is
currently enjoying a high profile and that the potential for growth in the
market for show jumping horses is strong. This potential stems from
what the LSL directors believe to be rising demand from across the
globe for show jumping horses of the highest quality. Show jumping
is now a truly global sport and emerging nations such as Russia, India,
and China as well as nations in the Middle East are searching for world
class show jumpers and the directors are of the view that, presently,
only nations in Western Europe are able to supply show jumpers of the
requisite quality.
Key Features and Benefits
Risks
• Mitigation of risk through diversification of investing into
a number of horses
• Targeted tax free returns
• Benefits of EIS relief (for eligible investors):
- 30% income tax relief on EIS investments up to £1,000,000 against
a 2015/16 income tax liability and up to £1,000,000 against a
2014/15 income tax liability, reducing net cost of investment to 70p
per £1 invested
- Capital gains tax deferral available for gains realised within three
years before, or up to 12 months after, investments are made by
the Manager
- Loss relief in the event of loss, a 45% taxpayer with sufficient
income is only at risk for 38.5p per £1 invested
- 100% relief from inheritance tax liability where EIS qualifying
investments are held for more than two years - No tax payable
on disposal
Any investment involves a high degree of risk. Full details of the
risk factors can be found within LSL’s Information Memorandum
(details of which are below), some examples include:
Who is the Investment Suitable for?
UK tax paying individuals to whom any of the following apply:
• Returns generated by the Investee Company from the trade in show
jumping horses
• Tax rules, levels and regulations are subject to change Past
performance is not a guide to future performance and may not
be repeated.
• The value of an investment in the offer can go down as well as up
and you may not get back the full amount invested.
You should consider an investment in LSL’s offer as a medium term
investment. Investments made are likely to be illiquid. Investors are
advised to seek relevant legal, financial and tax advice before making any
decision to invest.
Below are some examples of horses purchased, either outright or in
partnership with individual private investors on a profit share basis and
previously sold by Team Mendoza who are affiliated to Jessica Mendoza,
one of LSL’s directors.
Investors should note that reference to the past performance of Team
Mendoza in the table below are made only to illustrate the potential
success in buying and selling showjumping horses. In no way should the
past performance of Team Mendoza be interpreted as an indication of
the future performance of LSL or an investment.
• Income tax liability in 2015/16 and/or 2014/15
• Large capital gains to defer
• Would benefit from inheritance tax relief
Age at
purchase
Date
purchased
Date
of sale
Purchase
price
Sale
value
Livery/show
and other
costs
Net
return
No of weeks Net
held
return (%)
7 year old
2012
2014
80000
120000
16200
23800
22
7 year old
2012
2014
27480
103070
37100
38490
52
9 year old
2013
2014
72600
180000
10500
96900
16
6 year old
2013
2015
58200
218280
42950
117730
75
250,000
1,500,000
N/A
125,000
150,000
N/A
350,000
1,000000
N/A
Total
Instock
Euro
The Information Memorandum
This document does not constitute an offer to engage in any investment activity with LSL. It is an executive summary only of LSL’s investment offer as set out in LSL’s
Information Memorandum. Any investment must be made on the basis of the Information Memorandum and the terms and conditions contained therein. To request
a copy of the Information Memorandum and for any other information please contact: Lillybrook Showjumping Limited c/o Norman Stanley Chartered Accountants
Elstree House Elstree Way Borehamwood Hertfordshire,WD6 1SD
Disclaimer
This document being distributed only to, and is directed only at the following categories of person in the UK:
(a) those described in Article 48 of the Order, being certified high net worth individuals where at least one of the following applies:
(i) they have had, during the immediately preceding financial year an annual income to the value of £100,000 or more; or
(ii) they have held, throughout the immediately preceding financial year net assets to the value of £250,000 or more. Net assets for these purposes do not include:
(A) the property which is their primary residence or any loan secured on that residence;
(B) any rights under a qualifying contract of insurance within the meaning of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;
(C) any benefits (in the form of pensions or otherwise) which are payable on termination of service or on death or retirement and to which they are (or their
dependants are), or may be, entitled;
(b) those described in Article 50A of the Order, being self-certified sophisticated investors where at least one of the following applies:
(i) they are a member of a network or syndicate of business angels and have been so for at least the previous six months; or
(ii) they have made more than one investment in an unlisted company in the previous two years; or
(iii) they are working, or have worked in the previous two years, in a professional capacity in the private equity sector, or in the provision of finance for small and
medium enterprises; or
(iv) they are currently, or have been in the previous two years a director of a company with an annual turnover of at least £1 million.