Capital for Colleagues plc / EPIC: CFCP / Market: ISDX / Sector: Investment
4 January 2017
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, is pleased to announce an investment
update in respect of the quarter ended 30 November 2016.
Key Statistics for the quarter:
* GBP 5,429,235 (: GBP 5,042,735) lent or invested in a portfolio of
18unquoted EOBs and 12 publicly traded companies displaying demonstrable
employee engagement
* Net Asset Value ('NAV') of GBP 5,205,581 (31 August 2016: GBP 5,249,017)
* NAV per share of 54.09 pence (31 August 2016: 54.54 pence per share)
Material developments in the quarter:
* GBP 200,000 fixed term loan to Hire & Supplies Limited ('H&S') and 100,000
convertible preference shares in H&S held by the Company, were redeemed
through the allotment to the Company of Preference Shares in H&S worth GBP
300,000.
* Additional GBP 0.1 million invested in Anthesis Consulting Group Limited.
* GBP 250,000 subscribed for 5,295 A Ordinary Shares of GBP 1 each in Office
for Public Management Limited ('OPML'); the Company also made a loan of GBP
50,000 to OPML.
* GBP 150,000 subscribed for 150,000 A Ordinary Shares of GBP 1 each in
* Assisted Ecomerchant Natural Building Materials Limited with a short term
working capital loan of GBP 47,000
John Eckersley, Chief Executive of Capital for Colleagues, said: 'We are
delighted to have added OPML and Bright Ascension to our portfolio and with
the further progress we have made in aligning our interests with those of
employee stakeholders in our investee companies.'
Further information on the Company's investment portfolio is set out below.
UNQUOTED INVESTMENTS
As at 30 November 2016, the Company's portfolio of unquoted investments
comprised 18 companies operating across a range of sectors.
Value of % of Portfolio
Investment
(GBP)
INDUSTRIALS
Construction and Materials
Civils Store Limited 400,000 7.41
Ecomerchant Natural 340,000 6.30
Building Materials Ltd 293,224 5.43
TPS Investment Holdings
Limited
Industrial Engineering
FJ Holdings Limited 889,333 16.48
Ham Baker Adams Limited 405,000 7.51
Industrial Transportation
Place 2 Place Logistics 150,000 2.78
Limited
Support Services
Anthesis Consulting Group 635,000 11.77
Limited 220,000 4.08
Cotswold Valves Limited 190,000 3.52
CSM Site Supplies Limited 455,455 8.44
Hire and Supplies 206,153 3.82
Limited 308,941 5.73
Merrko Group Limited 45,000 0.83
Office for Public
Management Limited
MI Accountancy Solutions
Limited
TOTAL INDUSTRIALS 4,538,106 84.10
RETAIL
General Retailers
The Homebuilding Centre 340,328 6.31
(Holdings) Limited
TOTAL RETAIL 340.328 6.31
TECHNOLOGY
Software & Computer Services
2C Services Limited 50,020 0.93
Bright Ascension Limited 158,050 2.92
Computer Application 259,500 4.81
Services Limited 50,000 0.93
Figure Consulting Limited
TOTAL TECHNOLOGY 517,570 9.59
TOTAL UNQUOTED PORTFOLIO 5,396,004 100%
The loans and investments made by the Company to unquoted EOBs are aimed at
delivering equity-like returns and bear interest at rates of between 9% and
24%. 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 GBP 71 million per annum and
support approximately 600 jobs.
Total Unquoted Investments as at 30 November 2016
Cost (including short term loans): GBP 4,806,992
Valuation (including capitalised costs): GBP 5,396,004
PUBLICLY TRADED INVESTMENTS
Whilst the Company's core investment focus is on private EOBs, Capital for
Colleagues currently has interests in 12 investments listed on the London Stock
Exchange's main market or on AIM. The Directors believe that investing in such
publicly traded entities, each of which displays demonstrable employee
engagement, offers the potential to deliver a better return for shareholders
than leaving the cash on deposit, whilst allowing the Company to realise cash
relatively quickly if it is required for investment elsewhere.
Total Publicly Traded Investments as at 30 November 2016
Valuation (including cash): GBP 33,556
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. Nevertheless, as a matter of prudence, the Directors have provided
for an amount equivalent to 2 per cent. of the value of the unquoted
investments for possible impairment. The Directors do not, however, believe
that any impairment is necessary in respect of any of the Company's current
unquoted investments.
Each of the publicly traded investments is included at its closing mid-market
valuation on 30 November 2016.
No account has been taken of any potential taxation liability in respect of the
increase in value 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 0161 233 4891
Richard Bailey, Chairman
John Eckersley, Chief Executive
PETERHOUSE CORPORATE FINANCE LIMITED 020 7469 0930
Mark Anwyl
Duncan Vasey
Notes
Capital for Colleagues is an investment company focused on the Employee Owned
Business ('EOB') sector. The Company has a clear strategy aimed at investing
in, advising and growing established, mainly UK-based, EOBs as well as
assisting companies which are looking to launch employee ownership schemes,
providing the capital and advice to help them achieve their objectives.
Capital for Colleagues 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 identify and
capitalise on EOB-focused investment opportunities.
Capital for Colleagues plc - Quarterly Investment Update
January 04, 2017 at 02:01 am
Share
Share
© PRNewswire - 2017
