(‘Capital for Colleagues’ or the ‘Company’)
HALF YEARLY INVESTMENT UPDATE
Key Statistics for the six months:
-- Portfolio comprised of 18 unquoted EOBs at the end of the six months (28
February 2019: 17) -- Net Asset Value (‘NAV’) of £7,753,961 ( 28 February 2019: £7,419,833) -- NAV per share increased by 4.5% to 50.21 pencein the six-month period ( 28 February 2019: 48.05 penceper share) Material developments in the six months:
-- A loan investment of £150,000 was made to enable
South Cerney Outdoor Limited(“SCO”) to acquire the business and assets of South Cerney Outdoor, with an Employee Owned Trustbeing the major shareholder on completion. Based near Cirencester in Gloucestershire, SCO is focused on creating outdoor experiences that inspire personal challenge, fun, growth and adventure for the whole community, regardless of age or ability. Activities are available on an individual or group basis and include water sports and land-based activities at SCO’s leasehold site which cover 53 acres, 47 acres of which are a lake. -- The Company has agreed to sell its equity interest in Cotswold Valves Limited(“CVL”) for its acquisition cost of £220,000 in cash and to re-schedule all existing loans from CVL and its subsidiary totaling £450,000. The Directors of the Company expect that the full consideration for the disposal and the amounts outstanding on the loans will be received by the Company in the course of the next three years.
Further information on the Company’s investment portfolio is set out below.
Industrials (value: £4,615,290; 65.49% of Portfolio) Construction and Materials Support Services
Civils Store Limited Anthesis Consulting Group Limited Ecomerchant Natural Building Materials Cotswold Valves LimitedLimited Hire and Supplies Limited Employee Owners Group Limited Office for Public Management Limited Merkko Group Limited Flow Control Company Limited TPS Investment Holdings LimitedCastlefield Corporate Advisory Partners LimitedEngineering Industrial Transportation TG Engineering LimitedPlace 2 Place Logistics LimitedLeisure & Travel (value: £150,000; 2.13% of Portfolio) Recreational Services South Cerney Outdoor LimitedMedia (value: £489,636; 6.95% of Portfolio) Exhibition Centres The Homebuilding Centre ( Holdings) Limited Technology(value: £1,792,134; 25.43% of Portfolio) Software & Computer Services 2C Services Limited Bright Ascension Limited Computer Application Services Limited
The loans and investments made by the Company to unquoted EOBs are aimed at delivering equity-like returns. Each loan or investment is tailored to the individual investee company’s operating performance and specific working capital needs.
The Directors believe that the unquoted EOBs in the Company’s portfolio currently generate total turnover of around £99 million per annum and support approximately 854 jobs.
Total Unquoted Investments (including short term loans) as at
Valuation (including capitalised costs): £7,047,060
Commenting on the investment update,
“I am pleased with the further progress of the portfolio and I am confident that
BASIS OF VALUATION
Each of the unquoted investments is included at the Directors’ assessment of fair value, in accordance with International Private Equity and Venture Capital Guidelines. The previous policy of providing a general provision equivalent to 2% of the value of the unquoted investments has now been discontinued in favour of a more specific & prudent review of individual investments.
Account is taken of any potential taxation liability in respect of the increase in value of investments on an annual basis, as at the Company’s year-end.
The Directors of the Company are responsible for the contents of this announcement.
For further information, please visit www.capitalforcolleagues.com or contact:
CAPITAL FOR COLLEAGUES PLC01985 201 980 Richard Bailey, Chairman Alistair Currie, Chief Executive PETERHOUSE CAPITAL LIMITED 020 7469 0930 Mark Anwyl Duncan Vasey
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