Quarterly Investment Update

30 June 2020

Capital for Colleagues plc / EPIC: CFCP / Market: AQSE / Sector: Investment

30 June 2020

CAPITAL FOR COLLEAGUES PLC (‘Capital for Colleagues’ 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 May 2020.

 

Key Statistics for the quarter:

 

  • Portfolio comprised of 16 unquoted EOBs at the end of the quarter (29 February 2020: 18)
  • Net Asset Value (‘NAV’) of £7,553,434 (29 February 2020: £7,747,343 )
  • NAV per share decreased to 48.92 pence in the quarter (29 February 2020: 50.17 pence per share)

 

Further information on the Company’s investment portfolio is set out below.

UNQUOTED INVESTMENTS

 

As at 31 May 2020, the Company’s portfolio of unquoted investments was valued at £7,781,096 and comprised 16 companies operating across a range of sectors, as set out below:

 

Industrials (value: £3,848,687; 49.47% of Portfolio)

Construction and Materials

Civils Store Limited

Ecomerchant Natural Building Materials Limited

Employee Owners Group Limited

Merkko Group Limited

TPS Investment Holdings Limited

 

Industrial Transportation

Place 2 Place Logistics Limited

 

 

Support Services

Anthesis Consulting Group Limited

Hire and Supplies Limited

Office for Public Management Limited

Flow Control Company Limited

 

 

Leisure & Travel (value: £250,000; 3.21% of Portfolio)

 

Recreational Services

South Cerney Outdoor Limited

 

 

Media (value: £558,160; 7.17% of Portfolio)

 

Exhibition Centres

The Homebuilding Centre (Holdings) Limited

 

 

 

 

 

Technology (value: £3,124,249; 40.15% of Portfolio)

Software & Computer Services

2C Services Limited

Bright Ascension Limited

Computer Application Services Limited

The Security Awareness Group Ltd

 

   
       

 

The loans and investments made by the Company to 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 £103 million per annum and support approximately 865 jobs.

Total Unquoted Investments (including short term loans) as at 31 May 2020

Cost: £4,717,723

Valuation (including capitalised costs): £7,781,096

 

APPOINTMENT OF AUDITORS

 

Capital for Colleagues is pleased to announce that Beever and Struthers have been appointed as auditors to the Company.

 

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.

 

COVID-19

 

Appropriate valuation adjustments have also been made to reflect the impact of Covid-19 and the consequential effect on the UK and the world economy.

 

The Board continues to believe that the Company’s adherence to Employee Ownership principles will stand our investee businesses in good stead during the weeks and months ahead and leave them in good shape for the anticipated return to normal business in due course.

 

Capital for Colleagues continues to have sufficient cash resources to maintain its operations and to allow flexible treatment of investee companies and their obligations.

 

However, the Company will continue to monitor our investee companies in light of the changing situation, including considering any further impact upon the value of our portfolio of investments.

 

The Directors of the Company are responsible for the contents of this announcement.

 

**ENDS**

 

For further information, please visit www.capitalforcolleagues.com or contact:

 

CAPITAL FOR COLLEAGUES PLC

Richard Bailey, Chairman

Alistair Currie, Chief Executive

 

 

01985 201 980

PETERHOUSE CAPITAL LIMITED

Mark Anwyl

Allie Feuerlein

020 7469 0930

 

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. In addition, the Company educates and assists companies that are looking to launch employee ownership schemes, advising them, amongst other things, on how to secure investment and achieve their objectives.

 

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.