Unaudited Interim Results for the six months ended 28 February 2019

28 February 2020

Capital for Colleagues plc / EPIC: CFCP / Market: NEX / Sector: Investment 31 May 2019

CAPITAL FOR COLLEAGUES PLC

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

 

Unaudited Interim Results for the six months ended 28 February 2019

 

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 2019

 

Highlights

  • Additional GBP 150,000 of follow-on funding invested in the period
  • Revenues of GBP 198,000 (2018: GBP 138,000), comprising interest receivable and other fees
  • The valuations of certain existing investments were increased by a total of around GBP 630,000 during the period, to reflect underlying performance and prospects
  • Net assets of GBP 7.4 million as at 28 February 2019 (28 February 2018: GBP 6.4million)
  • Profit of GBP 585,000 for the six-month period (2018: loss of GBP 170,000)
  • Investment portfolio at the period end comprised 17 unquoted EOBs (28 February 2018: 17)
  • NAV per share of 48.05 pence (28 February 2018: 41.52 pence per share)
  • Directors confident of continuing growth from existing and new investments

 

Chief Executive’s Statement

There has been continued progress across the Company’s portfolio during the six months ended 28 February 2019, and this has enabled the Directors to increase the value attributable to a number of the Company’s investments. We are particularly pleased with the performance of our investments in the Technology sector, which we have revalued upwards by GBP 599,000 to reflect their progression from early stage companies to established businesses. This revaluation also serves to re-balance the portfolio and reduce the previous weighting towards Industrials.

 

In November 2018, a follow-on loan of GBP 150,000 was made to existing investee company, TG Engineering Limited, to provide that company with additional working capital.

 

After the end of the period, the Company discontinued its joint venture agreement with Castlefield Corporate Advisory Partners (‘CCAP’), as the Directors believe that the activities previously undertaken by CCAP on behalf of the Company, namely educating and assisting companies which are looking to launch employee ownership schemes and advising them on how to secure investment, can be more efficiently undertaken by and within Capital for Colleagues itself.

 

Financial Results

 

In the six months ended 28 February 2019, the Company generated income of GBP 198,000 (2018: GBP 138,000), principally from interest receivable and other fees associated with our investments.  As at 28 February 2019, the Company had net assets of GBP 7.4 million (2018: GBP 6.4 million), with the increase in value reflecting the revaluation of our investments in the Technology sector. The reported profit for the period of GBP 585,000 is driven by the unrealised gains arising from these revaluations.

 

Outlook

 

Whilst ongoing uncertainty around Brexit continues to have some impact on the wider economy, the Directors are confident that the breadth and quality of the Company’s portfolio will ensure that our investments will continue to prosper.

 

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.

 

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

 

0161 464 3260

PETERHOUSE CAPITAL LIMITED

Mark Anwyl

Duncan Vasey

020 7469 0930
   

PROFIT AND LOSS ACCOUNT  

   

Unaudited 6 months to 28 February 2019

GBP 000’s

Unaudited 6 months to 28 February 2018

GBP 000’s

Audited 12 months to 31 August 2018
GBP 000’s

Revenue

  198 138 384

Realised (losses)/gains

  (4)
Unrealised gains/(losses)   630 (104) 437

 

  828 34 817

Administrative expenses

  (243) (204) (443)

PROFIT FROM ONGOING OPERATIONS

  585 (170) 374

Impairment of investments and loans

  (134)

PROFIT/(LOSS) BEFORE TAXATION

  585  (170) (240

Tax

(138)

PROFIT/(LOSS) FOR THE PERIOD

585 (170) 102

 

BALANCE SHEET

 

As at

28 February 2019

GBP 000’s

As at

28 February 2018

GBP 000’s

As at

31 August 2018
GBP 000’s

ASSETS

     

Non-Current Assets

     

Investments held at fair value through profit or loss

5,233 4,570 5,034

Investments in Associates

24 24

Loans and receivables

1,836 1,034 1,321

 

7,069 5,628   6,379

Current Assets

     

Trade and other receivables

152 88 416

Cash and cash equivalents

278 789 175

 

430 877 591

 

     

TOTAL ASSETS

7,499 6,505 6,970

 

EQUITY AND LIABILTIES

     

Equity

     

Called up share capital

6,176 6,167 6,176

Share premium

1,099 1,099 1,099

Retained (loss)

144 (853)  (581)

Total Equity

7,419 6,413  6,694

 

Current Liabilities

     

Trade and other payables

Provision for liabilities

72

8

84

8

130

1,146

 

 

TOTAL EQUITY AND LIABILITIES

 

7,499

 

6,505

 

6,970

 

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 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.

 

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.