Capital for Colleagues plc - Unaudited Interim Results
Announcement provided by
Capital for Colleagues plc · CFCP22/05/2023 14:23
Capital for Colleagues plc / EPIC: CFCP / Market: AQSE / Sector: Financials
22 May 2023
CAPITAL FOR COLLEAGUES PLC
(‘Capital for Colleagues’, ‘C4C’ or the ‘Company’)
Unaudited Interim Results for the six months ended 28 February 2023
Capital for Colleagues, the investment vehicle focused on opportunities in the Employee Owned Business (‘EOB’) sector, is pleased to announce its unaudited interim results for the six months ended 28 February 2023.
Financial Highlights
- Revenues of £0.259m (2022: £0.216m), comprising interest receivable, dividends received and fees
- Profit of £0.933m for the six-month period (2022: £0.227m)
- Net assets of £14.384m as at 28 February 2023 (28 February 2022: £12.645m)
- NAV per share of
77.78 pence as at 28 February 2023 (28 February 2022:68.38 pence per share)
Portfolio Highlights
- Invested a further £0.240m in an existing investee company as part of a wider funding restructuring.
- Restructured an existing investee company, enabling an employee trust to own 51% of the business.
- £0.330m of additional debt funding provided to 4 investee companies.
- Investments revalued upwards by a net total of £1.058m, to reflect underlying performance and prospects.
- Investment portfolio at the period end comprised 13 unquoted EOBs (28 February 2022: 14)
Chief Executive’s Statement
There was continued progress across the Company’s portfolio during the six months ended 28 February 2023 and this has enabled the Directors to increase the value attributable to a number of the Company’s investments. The increase in the Net Asset Value, along with the dividend of 1.75p per share paid during the period under review, represents a solid return for shareholders during a challenging period for quoted Private Equity vehicles.
The addition of MI Accountancy Solutions Limited to our resources has broadened the support that we are able to provide to existing and potential investees.
It was disappointing to note the sharp fall in the Company’s share price at the end of the reporting period. This fall resulted from actions which were wholly unrelated to C4C or its business and means that the shares are now trading at a significant discount to the Net Asset Value.
The Board is exploring a number of initiatives with the objective of significantly narrowing the discount over the coming months.
Material developments in the six months
- 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 £0.970m (original cost in 2016 of £0.300m). Alongside its disposal of the ‘A’ ordinary shares, C4C subscribed £1.210m 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.
- As part of a reorganisation, Employee Owners Group Limited (‘EOG’) formed a new holding company, Carpenter Oak Group Limited, which is now 51% owned by an Employee Ownership Trust (‘EOT’), with the balance owned by Capital for Colleagues (30%) and management (19%). The EOT, which previously held a 7.5% interest in EOG, acquired its controlling interest from EOG’s founding shareholders.
- C4C acquired the entire issued share capital of MI Accountancy Solutions Limited (‘MIA’). MIA is a Staffordshire based accountancy firm that offers a range of accounting services, principally the preparation of management accounts. MIA has been providing accounting services to a number of C4C’s investee companies, and the Directors believe that, by bringing these services in house, Capital for Colleagues will be able to cost-effectively broaden the support and advice it offers all EOBs, whilst at the same time strengthening relationships with existing investee companies.
Financial Results
In the six months ended 28 February 2023, the Company generated income of £0.259m (2022: £0.216m), principally from interest and dividends receivable and fees associated with our investments. The Net Asset Value rose by 4.4% during the period, and the Company had net assets of £14.384m (2022: £12.645m) as at 28 February 2023.
Outlook
The EOBs in which the Company is invested are generally performing well and we anticipate further good progress in the Net Asset Value over the remainder of the financial year.
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. The recent appointment of Deb Oxley to our board further underlines our leadership and commitment in the EOB space.
Alistair Currie
Chief Executive
For further information, please visit www.capitalforcolleagues.com or contact:
CAPITAL FOR COLLEAGUES PLC Richard Bailey, Chairman Alistair Currie, Chief Executive John Lewis, Finance Director |
01985 201 980 |
PETERHOUSE CAPITAL LIMITED Mark Anwyl |
020 7469 0930 |
PROFIT & LOSS ACCOUNT | |||
Unaudited 6 months to 28 February 2023 £’000 |
Unaudited 6 months to 28 February 2022 £’000 |
Audited 12 months to 31 August 2022 £’000 |
|
Revenue | 259 | 216 | 492 |
Fair value gain on investments | 1,058 | 297 | 1,537 |
1,317 | 513 | 2,059 | |
Administrative expenses | (389) | (286) | (675) |
PROFIT FROM ONGOING OPERATIONS | 928 | 227 | 1,354 |
Finance Income | 5 | - | 1 |
PROFIT BEFORE TAXATION | 933 | 227 | 1,355 |
Tax | - | - | - |
PROFIT FOR THE PERIOD | 933 | 227 | 1,355 |
BALANCE SHEET | |||
As at | As at | As at | |
28 February 2023 | 28 February 2022 | 31 August 2022 | |
£’000 | £’000 | £’000 | |
ASSETS | |||
Non-Current Assets | |||
Goodwill on consolidation | 98 | - | - |
Property, plant & equipment | 2 | 4 | 3 |
Investments held at fair value through profit or loss | 9,868 | 7,278 | 8,548 |
Loans and receivables | 1,412 | 1,063 | 608 |
11,380 | 8,345 | 9,159 | |
Current Assets | |||
Trade and other receivables | 284 | 172 | 839 |
Cash and cash equivalents | 2,831 | 4,180 | 3,939 |
3,115 | 4,352 | 4,778 | |
TOTAL ASSETS | 14,495 | 12,697 | 13,937 |
EQUITY AND LIABILTIES |
|||
Equity | |||
Called up share capital | 7,397 | 7,397 | 7,397 |
Share premium | 1,810 | 1,810 | 1,810 |
Retained profits | 5,177 | 3,438 | 4,567 |
Total Equity | 14,384 | 12,645 | 13,774 |
Current Liabilities | |||
Trade and other payables | 111 | 52 | 163 |
TOTAL EQUITY AND LIABILITIES | 14,495 | 12,697 | 13,937 |
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.
Capital for Colleagues
Capital for Colleagues is an investment company focused on the
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).
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