Capital for Colleagues plc Quarterly Investment Update

 
TIDMCFCP 
 
Capital for Colleagues plc / EPIC: CFCP / Market: ISDX / Sector: Investment 
 
30 June 2016 
 
                          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 31 May 2016. 
 
Key Statistics for the quarter: 
 
  * GBP (: GBP 3,868,455) lent or invested in a portfolio of unquoted EOBs and 
    publicly traded companies displaying demonstrable employee engagement 
 
  * Net Asset Value ('NAV') of GBP (: GBP 4,118,399) 
 
  * NAV per share of pence (: 53.66 pence per share) 
 
    Material developments in the quarter: 
 
  * The Company raised GBP 1.15 million in a subscription of new ordinary 
    shares; the proceeds are being used to make further portfolio investments 
    and to provide working capital; 
 
  * Funds managed by Alliance Trust became significant shareholders in the 
    Company as part of the subscription; 
 
  * The Company subscribed for GBP 150,000 of loan notes issued by existing 
    investee company, Ecomerchant Natural Building Materials Limited, allowing 
    Ecomerchant to acquire a complimentary business engaged in the distribution 
    of environmentally sustainable building materials. 
 
    John Eckersley, Chief Executive of Capital for Colleagues, said: 'We are 
    delighted to have raised additional finance in the quarter and to welcome 
    funds managed by Alliance Trust as shareholders in Capital for Colleagues. 
    The EOB sector continues to offer a broad range of investment opportunities 
    for us and we intend to capitalise on these opportunities to support the 
    sector and generate returns for our investors.' 
 
    Further information on the Company's investment portfolio is set out below. 
 
    UNQUOTED INVESTMENTS 
 
    As at 31 May 2016, the Company's portfolio of unquoted investments 
    comprised 14 companies operating across a range of sectors. 
 
                                          Value of          % of Portfolio 
                                          Investment 
                                          (GBP) 
 
INDUSTRIALS 
 
Construction and Materials 
                Civils Store Limited      400,000           9.93 
                Ecomerchant Natural       250,000           6.21 
Building Materials Ltd                    245,874           6.11 
                TPS Investment Holdings 
Limited 
 
Industrial Engineering 
                FJ Holdings Limited       933,000           23.17 
                Ham Baker Adams Limited   375,000           9.31 
 
Industrial Transportation 
                Place 2 Place Logistics   150,000           3.73 
Limited 
 
Support Services 
                Cotswold Valves Limited   220,000           5.46 
                CSM Site Supplies Limited 190,000           4.72 
                Hire and Supplies         350,000           8.69 
Limited                                   256,153           6.36 
                Merrko Group Limited      50,000            1.24 
                MI Accountancy Solutions 
Limited 
 
TOTAL INDUSTRIALS                         3,420,027         84.94 
 
RETAIL 
 
General Retailers 
                The Homebuilding Centre   347,000           8.62 
(Holdings) Limited 
 
TOTAL RETAIL                              347,000           8.62 
 
TECHNOLOGY 
 
Software & Computer Services 
                Computer Application      159,500           3.96 
Services Limited                          100,000           2.48 
                Figure Consulting Limited 
 
TOTAL TECHNOLOGY                          259,500           6.44 
 
TOTAL UNQUOTED PORTFOLIO                  GBP 4,026,527     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 12% 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 59.0 million per annum and 
support approximately 409 jobs. 
 
Total Unquoted Investments as at 31 May 2016 
 
Cost (including short term loans): GBP 3,816,860 
 
Valuation (including capitalised costs): GBP 4,026,527 
 
PUBLICLY TRADED INVESTMENTS 
 
Whilst the Company's core investment focus is on private EOBs, Capital for 
Colleagues currently has interests in 15 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 31 May 2016 
 
Valuation: GBP 1,066,945 
 
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 their closing mid-market 
valuation on 31 May 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. 
 
 
 
END 
 

(END) Dow Jones Newswires

June 30, 2016 02:00 ET (06:00 GMT)