Capital for Colleagues plc - Half-year Report PR Newswire

Capital for Colleagues plc / EPIC: CFCP / Market: NEX Exchange Growth Market / Sector: Investment

CAPITAL FOR COLLEAGUES PLC

(‘Capital for Colleagues’ or the ‘Company’)

Unaudited Interim Results for the six months ended 28 February 2018

Capital for Colleagues, the investment vehicle focused on opportunities in the Employee Owned Business (‘EOB’) sector, is pleased to announce its unaudited interim results for the six months ended 28 February 2018.

Highlights

    --  Additional GBP 323,800 invested in the period – GBP 23,800 in new
        investments and GBP 300,000 in follow-on funding
    --  Revenues of GBP [138,000] (2017: GBP 198,000), comprising interest
        receivable and other fees
    --  Net assets of GBP 6.4 million as at 28 February 2018 (28 February 2017:
        GBP 4.2 million)
    --  A loss of GBP 170,000 for the six-month period (2017: loss of GBP 1.06
        million)
    --  Investment portfolio at the period end comprised 17 (28 February 2017:
        15) unquoted EOBs
    --  NAV per share of 41.52 pence (28 February 2017: 43.54 pence per share)
    --  Directors confident of continuing growth from existing and new
        investments

Chief Executive’s Statement

In the six months ended 28 February 2018, the Company invested a further GBP 323,800 in new and existing investee companies.  As we never tire of saying, employee ownership is a proven, successful business model, which is recognised to improve productivity and create wealth, whilst providing a stable employment environment and the possibility of attractive commercial returns for investors. This message seems to be getting through, as the breadth of opportunities available to us continues to expand. We now have investments across a range of business areas, most recently adding precision engineering to our stable of EOBs through our investment in TG Engineering Limited.

In accordance with our business plan, we are continuing to align our interests with those of employee stakeholders at our investee companies as they become more established co-owned businesses. In this context, many of our portfolio companies have accepted our offer to convert our existing debt instruments into equity, a progression we are delighted with. One of the by-products of this change is the short-term effect on the Company’s income, whereby interest previously receivable is exchanged for long-term capital value and dividend income. There is inevitably a short-term gap between these two investment models and the Board is continually reviewing the carrying value of all investments to ensure that they are fairly reflected.

Financial Results

In the six months ended 28 February 2018, the Company generated income of GBP 138,000 (2017: GBP 198,000), principally from interest receivable and other fees associated with our investments.  As at 28 February 2018, the Company had net assets of GBP 6.4 million (2017: GBP 4.2 million).

Outlook

Capital for Colleagues’ ability to advise existing and potential EOBs as well as to provide them with funding, means that the Company is exceptionally well placed to create growth in the EOB sector and to benefit from that growth.

We continue to work closely with the Employee Ownership Association and other supporters of employee ownership to promote the commercial and financial benefits of EOBs. We remain hopeful that the UK’s political and economic environment will increasingly help to foster a recognition of EOBs as important generators of equitable and dynamic growth.

John Eckersley

Chief Executive

For further information, please visit www.capitalforcolleagues.com or contact:


CAPITAL FOR COLLEAGUES PLC      0161 464 3260
Richard Bailey, Chairman
John Eckersley, Chief Executive

PETERHOUSE CAPITAL LIMITED      020 7469 0930
Mark Anwyl
Duncan Vasey



PROFIT AND LOSS ACCOUNT


                      Unaudited 6 months  Unaudited 6 months Audited 12 months
                     to 28 February 2018 to 28 February 2017 to 31 August 2017
                               GBP 000’s           GBP 000’s         GBP 000’s

Revenue                              138                 198               372

Unrealised                         (104)                 208               312
(Losses)/gains

                                      34                 406               684

Administrative                     (204)               (247)             (530)
expenses

PROFIT FROM ONGOING                (170)                 159               154
OPERATIONS

Exceptional Item                       -             (1,321)          (1,321)-

PROFIT/(LOSS)                      (170)             (1,162)           (1,167)
BEFORE TAXATION

Tax                                    -                 102              120)

PROFIT/(LOSS) FOR                  (170)             (1,060)           (1,047)
THE PERIOD



BALANCE SHEET


                                         As at            As at          As at
                               28 February 2018 28 February 2017 31 August 2017
                                      GBP 000’s        GBP 000’s      GBP 000’s

ASSETS

Non Current Assets

Investments held at fair value            4,594            3,296          4,592
through profit or loss

Loans and receivables                     1,034              689            535

                                          5,628            3,985          5,127

Current Assets

Trade and other receivables                  88              208            276

Cash and cash equivalents                   789              161          1,283

                                            877              369          1,559

TOTAL ASSETS                              6,505            4,354          6,686


EQUITY AND LIABILTIES

Equity

Called up share capital                   6,167            3,850          6,154

Share premium                              1099            1,036          1,097

Retained (loss)                           (853)            (695)          (683)

Total Equity                              6,413            4,191          6,568


Current Liabilities

Trade and other payables                     84              163            110
Provision for liabilities                     8                -              8


TOTAL EQUITY AND LIABILITIES              6,505            4,354          6,686



The interim results have not been reviewed by the Company's auditors.

The Directors of the Company are responsible for the contents of this announcement.

Capital for Colleagues

Capital for Colleagues is an investment company focused on the UK EOB sector. The Company has a proven management team, with a wide network of contacts and affiliates, as well as established access to investment opportunities, enabling the Company to execute its strategy and capitalise on EOB-focused investment opportunities.

The Company’s joint venture, Castlefield Corporate Advisory Partners, educates and assists companies which are looking to launch employee ownership schemes, advising them, amongst other things, on how to secure investment and achieve their objectives.

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.