Unaudited Interim Results for the six months ended 28 February 2018

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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 2018.

Highlights

    • Additional GBP 323,800 invested in the period – GBP 23,800 in new investments and GBP 300,000 in follow-on funding
    • Revenues of GBP [138,000] (2017: GBP 198,000), comprising interest receivable and other fees
    • Net assets of GBP 6.4 million as at 28 February 2018 (28 February 2017: GBP 4.2 million)
    • A loss of GBP 170,000 for the six-month period (2017: loss of GBP 1.06 million)
    • Investment portfolio at the period end comprised 17 (28 February 2017: 15) unquoted EOBs
    • NAV per share of 41.52 pence (28 February 2017: 43.54 pence per share)
    • Directors confident of continuing growth from existing and new investments

Chief Executive’s Statement

In the six months ended 28 February 2018, the Company invested a further GBP 323,800 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 precision engineering to our stable of EOBs through our investment in TG Engineering Limited.

In accordance with our business plan, we are continuing to align our interests with those of employee stakeholders at our investee companies as they become more established co-owned businesses. In this context, many of our portfolio companies have accepted our offer to convert our existing debt instruments into equity, a progression we are delighted with. One of the by-products of this change is the short-term effect on the Company’s income, whereby interest previously receivable is exchanged for long-term capital value and dividend income. There is inevitably a short-term gap between these two investment models and the Board is continually reviewing the carrying value of all investments to ensure that they are fairly reflected.