Capital for Colleagues Plc - Quarterly Investment Update
Announcement provided byCapital for Colleagues plc · CFCP
Capital for Colleagues plc / EPIC: CFCP / Market: AQSE / Sector: Financials
2 October 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 31 August 2023.
Key Statistics for the quarter:
- Portfolio comprised of 14 unquoted EOBs at the end of the quarter (31 May 2023: 14)
- Net Asset Value (‘NAV’) of £15,162,569 (31 May 2023: £15,184,896)
- NAV per share decreased to
81.99 pencein the quarter (31 August 2023: 82.11 penceper share)
Key Developments in the quarter:
- The Company received the second of 5 annual tranches of consideration for the sale of its ‘A’ ordinary shares in The Homebuilding Centre (Holdings) Limited (‘HBC’). The consideration for the second tranche amounted to £107,999 in cash, a premium to the agreed minimum payment of £50,000, reflecting successful ongoing trading at HBC.
- Bright Ascension Limited has been selected to lead onboard and ground software development for the 3-year OS2-VOLT mission. The OS2-VOLT mission has a total value of around €12.0 million and is designed to evaluate and test radical new real-time techniques and technologies in low Earth orbit, aiming to demonstrate products and services within a Versatile Optical Laboratory for Telecommunications. The OS2-VOLT mission is being led by fellow investee company, Craft Prospect Limited.
- The Company has converted £250,000 of its £412,000 of outstanding loans to The Real Outdoor Xperience (‘ROX’) - formerly South Cerney Outdoor Limited - into 250,000 A ordinary shares in ROX. The A ordinary shares, which give C4C preferential rights in respect of dividends and the return of capital, will be bought back (subject to certain conditions being met) by ROX in 5 annual tranches of £50,000 each. The Company has also transferred ordinary shares representing 4% of ROX’s issued share capital to their Employee Share Ownership Trust and granted the Trust a call option over additional ordinary shares representing a further 4% of ROX’s issued share capital, which can be exercised subject to the satisfaction of certain conditions.
- To reflect the growth at Computer Application Services Limited (‘CAS’) and to prudently rebalance this element of the Company’s investment portfolio, C4C has disposed of part of its holding of CAS ordinary shares to Bill Ainscough, a non-executive Director of the Company, and TJ Morris Limited, a significant shareholder in C4C, in equal proportions, for total cash consideration of £754,000.
- The National Self Build & Renovation Centre (NSBRC), run by the Homebuilding Centre (Holdings) Limited the
UK'Sonly permanent venue for independent homebuilding advice and support, has been shortlisted for two categories in the 2023 National Sustainability Awards.
The Company currently has cash balances of £1,985,636. The Company has no debt.
Further information on the Company’s investment portfolio is set out below.
As at 31 August 2023, the Company’s portfolio of unquoted investments was valued at £13,500,987 and comprised 14 companies operating across a range of sectors, as set out below:
Industrials (value: £6,055,988; 44.86% of Portfolio)
Construction & Materials
Ecomerchant Natural Building Materials Limited
Carpenter Oak Group Limited
TPS Investment Holdings Limited
Place 2 Place Logistics Limited
Hire and Supplies Limited
Flow Control Company Limited
The Security Awareness Group Limited
Morris Commercial Limited
Leisure & Travel (value: £516,337; 3.82% of Portfolio)
The Real Outdoor Xperience (formerly South Cerney Outdoor Limited)
Media (value: £525,773; 3.89% of Portfolio)
The Homebuilding Centre (Holdings) Limited
Technology (value: £6,402,893; 47.43% of Portfolio)
Software & Computer Services
EO MSP (Holdings) Limited
Bright Ascension Limited
Computer Application Services Limited
Craft Prospect Limited
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 £46.2 million (£46.5 million) per annum and support approximately 335 (335) jobs.
Total Unquoted Investments (including short-term loans) as at 31 August 2023
Valuation (including capitalised costs): £13,500,987
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.
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
020 7469 0930
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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