Capital for Colleagues plc - Quarterly Investment Update PR Newswire

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

28 June 2018

CAPITAL FOR COLLEAGUES PLC

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

QUARTERLY 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 quarter ended 31 May 2018

Key Statistics for the quarter:

    --  Portfolio comprised of 18 EOBs at the end of the quarter (28 February
        2018: 17)

    --  Net Asset Value (‘NAV’) of GBP 6,438,680 (: GBP 6,396,063)

    --  NAV per share of 41.73 pence (: 41.52 pence per share)

        Material developments in the quarter:

        The Company invested GBP 600,000 in a new portfolio company, TG
        Engineering Limited (‘TGE’) by way of loan. TGE, which operates from a
        20,000 sq. ft factory in Ferndown, near Poole in Dorset, manufactures
        precision machined, extremely high tolerance, steel and aluminium
        components for use in the aerospace and scientific industries.

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

        UNQUOTED INVESTMENTS

        As at 31 May 2018, the Company’s portfolio of unquoted investments was
        valued at GBP 5,815,746 and comprised 18 companies operating across a
        range of sectors, as set out below:



Industrials (value: GBP 4,702,127; 80.85% of Portfolio)

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

Industrial Transportation                                           Engineering
Place 2 Place Logistics Limited                          TG Engineering Limited


Retail (value: GBP 396,049; 6.81% of Portfolio)

General Retailers
The Homebuilding Centre (Holdings)
Limited

Technology (value: GBP 717,570; 12.34% 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 71 million per annum and support approximately 630 jobs.

Total Unquoted Investments (including short term loans) as at 31 May 2018

Cost: GBP 5,319,115

Valuation (including capitalised costs): GBP 5,815,746

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 CORPORATE FINANCE 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.