(‘Capital for Colleagues’ or the ‘Company’)
Unaudited Interim Results for the six months ended
-- Revenues of £271,000 (2019: £198,000), comprising interest receivable and fees -- Profit of £1.04M for the six-month period (2019: profit of £585,000) -- Net assets of £7.75M as at
29 February 2020( 28 February 2019: £7.41M) -- NAV per share of 50.17 penceas at 29 February 2020( 28 February 2019: 48.05 penceper share) -- The post period end impact of Covid-19 is an estimated reduction in NAV to between 42.6p and 45.1p per share
-- £405,068 invested in
The Security Awareness Group Ltd(‘TSAG’) - £300,068 in preference shares and ordinary shares and a loan of £105,000 -- £149,000 of follow-on funding provided during the period -- Certain investments revalued upwards by a total of £1,333,000 during the period, to reflect underlying performance and prospects -- Investment portfolio at the period end comprised 18 unquoted EOBs (28 February 2019: 17)
Chief Executive’s Statement
There was continued progress across the Company’s portfolio during the six months ended
Material developments in the six months
-- The Company invested a total of £405,068 in
The Security Awareness Group Ltd(‘TSAG’) - £300,068 in preference shares and ordinary shares and a loan of £105,000. -- TSAG is a recently formed company, established to acquire the business and assets of The Security Company (International) Limited(‘TSC’), which has been delivering behavioural change and security awareness programmes since 1997. Huntingdon-based TSC has clients in numerous sectors, including pharmaceuticals, atomic energy, precious metals, banking, government, IT, insurance and law; its clients include household names, such as Specsavers, KraftHeinz, the British Red Crossand the Prince’s Trust. -- Follow-on loans totaling £149,000 were made to existing investees, Place 2 Place Logistics Limitedand South Cerney Outdoor Limited, providing those companies with additional working capital.
After the end of the period, one of the Company’s investees,
The Directors remain cautiously optimistic of the Company’s prospects in light of the balance and perceived resilience of the companies in its portfolio. The Directors also believe that Employee Ownership can play a key role in the anticipated post Covid-19 economic recovery and that the Company is therefore particularly well-placed to participate in and benefit from that recovery.
In the six months ended
The above financial figures were prepared as at
-- The Board applauds the
UKgovernment initiatives which mitigate against the worst effects for UKbusinesses. Our Employee Ownership principles will stand our investee businesses in good stead during the weeks and months ahead and leave them in good shape for the anticipated return to normal business in due course.
Capital for Colleagueshas sufficient cash resources to maintain its own operations and to allow flexible treatment of investee companies and their obligations.
-- Covid-19 has affected the value of all businesses and the Company will not be an exception to this. The Board has specifically reviewed the carrying values of all investments in the context of changes since 29
February 2020and has concluded that the value of the Company’s portfolio as a whole has likely reduced by an amount in the range of 10% to 15%. Therefore, the Directors believe that the declared NAV per share of 50.17p needs to be discounted (tax adjusted) to be within a range of 42.6p to 45.1p per share.
-- However, this is a rapidly evolving situation, with no guarantee as to when business life may revert to normality. We will continue to monitor our investee companies in light of the changing situation, including considering any further impact upon the value of our portfolio of investments.
The Board would like to send all shareholders, investees, suppliers and staff its best wishes and offer its support over the coming months.
Whilst ongoing uncertainty around the economy continues to have some impact on the wider economy, the Directors are confident that the breadth and quality of the Company’s portfolio will ensure that our investments will continue to prosper.
We continue to promote the commercial and financial benefits of EOBs at every opportunity and are pleased to see increasing recognition of EOBs as important generators of equitable and dynamic growth.
For further information, please visit www.capitalforcolleagues.com or contact:
CAPITAL FOR 01985 201 980
COLLEAGUES PLCRichard Bailey, Chairman Alistair Currie, Chief Executive PETERHOUSE CAPITAL 020 7469 0930 LIMITED Mark Anwyl Allie Feuerlein PROFIT AND LOSS ACCOUNT Unaudited 6 months Unaudited 6 months Audited 12 months to to 29 February 2020 to 28 February 2019 31 August 2019 £’000 £’000 £’000 Revenue 271 198 570 Realised - - (6) (losses)/gains Unrealised gains/ 1,333 630 892 (losses) 1,604 828 1456 Administrative (322) (243) (560) expenses PROFIT FROM 1,282 585 896 ONGOING OPERATIONS Impairment of - - (882) investments and loans (including associates) PROFIT BEFORE 1,282 585 14 TAXATION Tax (243) - - PROFIT FOR THE 1,039 585 14 PERIOD BALANCE SHEET As at As at As at 29 February 2020 28 February 2019 31 August 2019 £’000 £’000 £’000 ASSETS Non-Current Assets Property, plant & 2 2 equipment Investments held 7,031 5,233 5,450 at fair value through profit or loss Investments in 16 - 16 Associates Loans and 1,068 1,836 928 receivables 8,117 7,069 6,396 Current Assets Trade and other 133 152 284 receivables Cash and cash 91 278 261 equivalents 224 430 545 TOTAL ASSETS 8,341 7,499 6,941 EQUITY AND LIABILTIES Equity Called up share 6,176 6,176 6,176 capital Share premium 1,099 1,099 1,099 Retained (loss) 472 144 (567) Total Equity 7,747 7,419 6,708 Current Liabilities Trade and other 205 72 87 payables Provision for 389 8 146 liabilities TOTAL EQUITY AND 8,341 7,499 6,941 LIABILITIES
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.
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