Unaudited Interim Results for the six months ended 28 February 2017

31st March 2017 download PDF

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 2017.

Highlights

  • Additional GBP 661,491 invested in the period – GBP 464,491 in new investments and GBP 197,000 in follow-on funding 

  • Additional GBP 661,491 invested in the period – GBP 464,491 in new investments and GBP 197,000 in follow-on funding 

  • Revenues of GBP 198,352 (2016: GBP 370,000), comprising interest receivable and other fees 

  • Net assets of GBP 4.2 million as at 28 February 2017 (2016: GBP 4.2 million) 

  • A loss of GBP 1.06 million for the six-month period (reflecting the exceptional write off of 
GBP 1.3 million in connection with the FJ Holdings Group investments) 

  • Investment portfolio at the period end comprised 15 unquoted EOBs 

  • Pipeline of opportunities remains strong; Directors confident of continuing growth from existing and new investments 

  • GBP 2.42 million raised after the period end for further investment in EOBs 


Chief Executive’s Statement

In the six months ended 29 February 2017, the Company invested a further GBP 661,491 in new and existing investee companies. As we never tire of saying, employee ownership is a proven, successful business model, which is recognised to improve productivity and create wealth, whilst providing a stable employment environment and the possibility of attractive commercial returns for investors. This message seems to be getting through, as the breadth of opportunities available to us continues to expand. We now have investments across a range of business areas, most recently adding IT services to our stable of EOBs.

The main development in the period ended 28 February 2017 was the placing into administration of the FJ Holdings Group (‘FJH’), where the Company’s loans to and investment in FJH were valued at approximately GBP 1.3 million. Following confirmation from the Administrators, these legacy investments have been written down to zero and the impact of this caused the Company’s net asset value to fall to 43.54p per share as at 28 February 2017.

Investment in smaller, unquoted companies always carries with it a risk that some investments will fail. The Board is committed to minimising this risk and the Company will continue to invest in a diversified range of EOBs with the intention that the majority will become successful and sustainable, delivering meaningful returns to the Company and its shareholders.