Capital for Colleagues plc - Half Yearly Investment Update PR Newswire

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

28 March 2019

CAPITAL FOR COLLEAGUES PLC

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

HALF YEARLY INVESTMENT UPDATE

Capital for Colleagues, the investment vehicle focused on opportunities in the Employee Owned Business (‘EOB’) sector, is pleased to announce an investment update in respect of the six months ended 28 February 2019

Key Statistics for the six months:

    --  Portfolio comprised of 17 unquoted EOBs at the end of the six months (31
        August 2018: 17)

    --  Net Asset Value (‘NAV’) of GBP 7,419,833 (31 August 2018: GBP 6,816,878)

    --  NAV per share increased by more than 8.8% to 48.05 pence (31 August
        2018: 44.15 pence per share)

        Material developments in the six months:


    --  A further loan of GBP 150,000 was made to TG Engineering Limited
        (‘TGE’), to provide it with additional working capital. TGE operates
        from a 20,000 sq. ft factory in Ferndown, near Poole in Dorset, where it
        manufactures precision machined, extremely high tolerance, steel and
        aluminium components for use in the aerospace and scientific industries.
        Capital for Colleagues currently has a 35% equity interest in TGE and
        outstanding loans of GBP 775,000 to that company.

Commenting on the investment update, John Eckersley, Chief Executive of the Company, said:

“I am delighted to be able to report a robust investment performance as I pass my executive responsibilities to Alistair Currie. We have established a diverse and balanced portfolio for the Company, and I am confident that Capital for Colleagues and its shareholders will benefit as the portfolio matures and as we continue to expand our exposure to the exciting EOB sector”.

Further information on the Company’s investment portfolio is set out below.

UNQUOTED INVESTMENTS

As at 28 February 2019, the Company’s portfolio of unquoted investments was valued at GBP 7,213,715 and comprised 17 companies operating across a range of sectors, as set out below:


Industrials (value: GBP, 4,782,576; 66.30% of Portfolio)

Construction and Materials                                     Support Services
Civils Store Limited                          Anthesis Consulting Group Limited
Ecomerchant Natural Building Materials                  Cotswold Valves Limited
Limited                                               Hire and Supplies Limited
Employee Owners Group Limited              Office for Public Management Limited
Merkko Group Limited                               Flow Control Company Limited
TPS Investment Holdings Limited                  Castlefield Corporate Advisory
                                                               Partners Limited

                                                                    Engineering
Industrial Transportation                                TG Engineering Limited
Place 2 Place Logistics Limited


Media (value: GBP 443,619; 6.15% of Portfolio)

Exhibition Centres
The Homebuilding Centre (Holdings)
Limited

Technology (value: GBP 1,987,520; 27.55% 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 GBP 77 million per annum and support approximately 625 jobs.

Total Unquoted Investments (including short term loans) as at 28 February 2019

Cost: GBP 5,519,626

Valuation (including capitalised costs): GBP 7,213,715

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. Nevertheless, as a matter of prudence, the Directors have provided for a general provision equivalent to 2 per cent. of the value of the unquoted investments for possible impairment. The Directors do not, however, believe that any general provision impairment is necessary in respect of any of the Company’s current unquoted 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.

**ENDS**

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



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.