Capital for Colleagues Plc Quarterly Investment Update

 
TIDMCFCP 
 
Capital for Colleagues plc / EPIC: CFCP / Market: AQSE / Sector: Financials 
 
2 October 2023 
 
CAPITAL FOR COLLEAGUES PLC 
 
(`Capital for Colleagues', `C4C' 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 August 2023. 
 
Key Statistics for the quarter: 
 
  · Portfolio comprised of 14 unquoted EOBs at the end of the quarter (31 May 
2023: 14) 
  · Net Asset Value (`NAV') of £15,162,569 (31 May 2023: £15,184,896) 
  · NAV per share decreased to 81.99 pence in the quarter (31 August 2023: 82.11 
pence per share) 
 
Key Developments in the quarter: 
 
  · The Company received the second of 5 annual tranches of consideration for 
the sale of its `A' ordinary shares in The Homebuilding Centre (Holdings) 
Limited (`HBC'). The consideration for the second tranche amounted to £107,999 
in cash, a premium to the agreed minimum payment of £50,000, reflecting 
successful ongoing trading at HBC. 
  · Bright Ascension Limited has been selected to lead onboard and ground 
software development for the 3-year OS2-VOLT mission. The OS2-VOLT mission has a 
total value of around ?12.0 million and is designed to evaluate and test radical 
new real-time techniques and technologies in low Earth orbit, aiming to 
demonstrate products and services within a Versatile Optical Laboratory for 
Telecommunications. The OS2-VOLT mission is being led by fellow investee 
company, Craft Prospect Limited. 
  · The Company has converted £250,000 of its £412,000 of outstanding loans to 
The Real Outdoor Xperience (`ROX') - formerly South Cerney Outdoor Limited - 
into 250,000 A ordinary shares in ROX. The A ordinary shares, which give C4C 
preferential rights in respect of dividends and the return of capital, will be 
bought back (subject to certain conditions being met) by ROX in 5 annual 
tranches of £50,000 each. The Company has also transferred ordinary shares 
representing 4% of ROX's issued share capital to their Employee Share Ownership 
Trust and granted the Trust a call option over additional ordinary shares 
representing a further 4% of ROX's issued share capital, which can be exercised 
subject to the satisfaction of certain conditions. 
  · To reflect the growth at Computer Application Services Limited (`CAS') and 
to prudently rebalance this element of the Company's investment portfolio, C4C 
has disposed of part of its holding of CAS ordinary shares to Bill Ainscough, a 
non-executive Director of the Company, and TJ Morris Limited, a significant 
shareholder in C4C, in equal proportions, for total cash consideration of 
£754,000. 
  · The National Self Build & Renovation Centre (NSBRC), run by the Homebuilding 
Centre (Holdings) Limited  the UK'S only permanent venue for independent 
homebuilding advice and support, has been shortlisted for two categories in the 
2023 National Sustainability Awards. 
 
The Company currently has cash balances of £1,985,636. The Company has no debt. 
 
Further information on the Company's investment portfolio is set out below. 
 
UNQUOTED INVESTMENTS 
 
As at 31 August 2023, the Company's portfolio of unquoted investments was valued 
at £13,500,987 and comprised 14 companies operating across a range of sectors, 
as set out below: 
 
Industrials 
(value: 
£6,055,988; 44.86% 
of Portfolio) 
Construction &             Support Services 
Materials 
                           Hire and Supplies Limited 
Ecomerchant 
Natural Building           Flow Control Company Limited 
Materials Limited 
                           The Security Awareness Group Limited 
Carpenter Oak 
Group Limited              Engineering 
 
TPS Investment             Morris Commercial Limited 
Holdings Limited 
 
Industrial 
Transportation 
 
Place 2 Place 
Logistics Limited 
Leisure & Travel 
(value: £516,337; 
3.82% of 
Portfolio) 
 
Recreational 
Services 
 
The Real Outdoor 
Xperience 
(formerly South 
Cerney Outdoor 
Limited) 
 
Media (value: 
£525,773; 3.89% of 
Portfolio) 
Exhibition Centres 
 
The Homebuilding 
Centre (Holdings) 
Limited 
Technology (value: 
£6,402,893; 47.43% 
of Portfolio) 
Software & 
Computer Services 
 
EO MSP (Holdings) 
Limited 
 
Bright Ascension 
Limited 
 
Computer 
Application 
Services Limited 
 
Craft Prospect 
Limited 
 
The loans and investments made by the Company to or in 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 £46.2 million (£46.5 million) per 
annum and support approximately 335 (335) jobs. 
 
Total Unquoted Investments (including short-term loans) as at 31 August 2023 
 
Cost: £9,607,619 
 
Valuation (including capitalised costs): £13,500,987 
 
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. 
 
**ENDS** 
 
For further information, please visit www.capitalforcolleagues.com or contact: 
 
CAPITAL FOR COLLEAGUES PLC        01985 201 980 
 
Richard Bailey, Chairman 
 
Alistair Currie, Chief Executive 
 
John Lewis, Finance Director 
PETERHOUSE CAPITAL LIMITED        020 7469 0930 
 
Mark Anwyl 
 
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 
 
This announcement contains inside information for the purposes of Article 7 of 
the Market Abuse Regulation EU 596/2014 as it forms part of retained EU law (as 
defined in the European Union (Withdrawal) Act 2018). 
 
 
This information was brought to you by Cision http://news.cision.com 
https://news.cision.com/capital-for-colleagues-plc/r/quarterly-investment-update,c3845666 
 
 
END 
 
 

(END) Dow Jones Newswires

October 02, 2023 02:01 ET (06:01 GMT)