Capital for Colleagues plc Quarterly Investment Update
30 June 2016 - 7:00AM
UK Regulatory
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
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June 30, 2016 02:00 ET (06:00 GMT)