Capital for Colleagues plc Quarterly Investment Update
03 October 2016 - 7:00AM
UK Regulatory
TIDMCFCP
Capital for Colleagues plc / EPIC: CFCP / Market: ISDX / Sector: Investment
3 October 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 August 2016.
Key Statistics for the quarter:
* GBP 5,042,735 (: GBP ) lent or invested in a portfolio of unquoted EOBs, 12
publicly traded companies displaying demonstrable employee engagement and 1
short term readily realisable instrument
* Net Asset Value ('NAV') of GBP 5,249,017 (: GBP )
* NAV per share of 54.54 pence (: pence per share)
Material developments in the quarter:
* GBP 0.5 million invested in Anthesis Consulting Group Limited, a specialist
consultancy offering commercially-driven sustainability services and
solutions;
* GBP 150,000 short term loan to Place 2 Place Logistics Limited converted
into equity;
* GBP 50,000 invested in 2C Services Limited, an employee owned information
technology service provider with its own state of the art private cloud
hosting infrastructure; and
* GBP 250,000 fixed term loan to The Homebuilding Centre (Holdings) Ltd
converted into equity and GBP 97,000 short term loans consolidated into a
single 3-year loan.
John Eckersley, Chief Executive of Capital for Colleagues, said: 'We are
delighted to have secured our investments in Anthesis and 2C Services and
made further progress in aligning our interests more directly with employee
stakeholders by converting debt to equity investments in portfolio
companies. We continue to see many opportunities in the EOB sector, despite
mixed economic signals following the Brexit vote, and we remain confident
that we can generate attractive financial returns through our commitment to
investment in this sector'.
Further information on the Company's investment portfolio is set out below.
UNQUOTED INVESTMENTS
As at 31 August 2016, the Company's portfolio of unquoted investments
comprised 16 companies operating across a range of sectors.
Value of % of Portfolio
Investment
(GBP)
INDUSTRIALS
Construction and Materials
Civils Store Limited 400,000 8.48
Ecomerchant Natural 250,000 5.30
Building Materials Ltd 245,874 5.21
TPS Investment Holdings
Limited
Industrial Engineering
FJ Holdings Limited 911,667 19.32
Ham Baker Adams Limited 405,000 8.58
Industrial Transportation
Place 2 Place Logistics 150,000 3.18
Limited
Support Services
Anthesis Consulting Group 500,000 10.60
Limited 220,000 4.66
Cotswold Valves Limited 190,000 4.03
CSM Site Supplies Limited 389,055 8.24
Hire and Supplies 256,153 5.43
Limited 50,000 1.06
Merrko Group Limited
MI Accountancy Solutions
Limited
TOTAL INDUSTRIALS 3,967,749 84.08
RETAIL
General Retailers
The Homebuilding Centre 341,836 7.24
(Holdings) Limited
TOTAL RETAIL 341,611 7.24
TECHNOLOGY
Software & Computer Services
2C Services Limited 50,020 1.06
Computer Application 259,500 5.50
Services Limited 100,000 2.12
Figure Consulting Limited
TOTAL TECHNOLOGY 359,500 8.68
TOTAL UNQUOTED PORTFOLIO 4,719,105 100%
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 67.0 million per annum and
support approximately 550 jobs.
Total Unquoted Investments as at 31 August 2016
Cost (including short term loans): GBP 4,509,193
Valuation (including capitalised costs): GBP 4,719,105
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. For the same
reasons, as at 31 August 2016, the Company also held a short-term investment in
a multi asset managed fund.
Total Publicly Traded Investments as at 31 August 2016
Valuation - publicly traded companies: GBP 64,029
Valuation - managed fund: GBP 259,846
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 31 August 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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October 03, 2016 02:00 ET (06:00 GMT)