Capital for Colleagues plc - Quarterly Investment Update

Capital for Colleagues plc / EPIC: CFCP / Market: AQSE / Sector: Financials

13 January 2023

CAPITAL FOR COLLEAGUES PLC

(‘Capital for Colleagues’, ‘C4C’ or the ‘Company’)

QUARTERLY INVESTMENT UPDATE

Capital for Colleagues, the investment vehicle focused on opportunities in the Employee Owned Business (‘EOB’) sector, announces an investment update in respect of the quarter ended 30 November 2022. 

Key Statistics for the quarter:

• Portfolio comprised of 13 unquoted EOBs at the end of the quarter (31 August 2022: 13)
• Net Asset Value (‘NAV’) of £14,270,783 (31 August 2022: £13,774,147)
• NAV per share increased to 77.17 pence in the quarter (31 August 2022: 74.49 pence per share)

Key Developments in the quarter:

• As part of a funding round and capital reorganisation at Hire and Supplies Limited (‘H&S’), C4C sold its holding of ‘A’ ordinary shares in H&S for cash consideration of £0.97 million (original cost in 2016 of £0.30 million).
• Alongside its disposal of the ‘A’ ordinary shares, C4C subscribed £1.21 million for new ordinary shares in H&S as part of the funding round.
• Following these transactions, Capital for Colleagues is interested in 20.76% of H&S’s enlarged share capital

The Company currently has cash balances of £3.337 million. The Company has no debt.

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

UNQUOTED INVESTMENTS

As at 30 November 2022, the Company’s portfolio of unquoted investments was valued at £10,747,253 and comprised 13 companies operating across a range of sectors, as set out below:

The loans and investments made by the Company to or in 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 £45.6 million (£45.3 million) per annum and support approximately 325 (322)  jobs. 

Total Unquoted Investments (including short-term loans) as at 30 November 2022

Cost: £7,171,074

Valuation (including capitalised costs): £10,747,253

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.

Account is taken of any potential taxation liability in respect of the increase in value of investments on a quarterly basis.

**ENDS**

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

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. In addition, the Company educates and assists companies that 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

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation EU 596/2014 as it forms part of retained EU law (as defined in the European Union (Withdrawal) Act 2018).