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Capital for Colleagues plc - Quarterly Investment Update

PR Newswire

London, January 15

Capital for Colleagues plc / EPIC: CFCP / Market: AQSE / Sector: Investment

18 January 2021

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, announces an investment update in respect of the quarter ended 30 November 2020.

Key Statistics for the quarter:

Portfolio comprised of 16 unquoted EOBs at the end of the quarter (31 August 2020: 16)
Net Asset Value (‘NAV’) of £8,145,106 (31 August 2020: £8,138,445)
NAV per share increased to 52.75 pence in the quarter (31 August 2020: 52.70 pence per share)

Further information on the Company’s investment portfolio is set out below.

UNQUOTED INVESTMENTS

As at 30 November 2020, the Company’s portfolio of unquoted investments was valued at £8,034,034 and comprised 16 companies operating across a range of sectors, as set out below:

Industrials (value: £4,219,296; 52.51% of Portfolio)Construction and Materials

Civils Store Limited

Ecomerchant Natural Building Materials Limited

Employee Owners Group Limited

Merkko Group Limited

TPS Investment Holdings Limited

Industrial Transportation

Place 2 Place Logistics LimitedSupport Services

Anthesis Consulting Group Limited

Hire and Supplies Limited

Office for Public Management Limited

Flow Control Company Limited

Leisure & Travel (value: £258,000; 3.21% of Portfolio)

Recreational Services

South Cerney Outdoor Limited

Media (value: £490,540; 6.11% of Portfolio)

Exhibition Centres

The Homebuilding Centre (Holdings) Limited

Technology (value: £3,066,198; 38.17% of Portfolio)Software & Computer Services

2C Services Limited

Bright Ascension Limited

Computer Application Services Limited

The Security Awareness Group Ltd

The loans and investments made by the Company to 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 £100.6 million per annum and support approximately 865 jobs.

Total Unquoted Investments (including short term loans) as at 30 November 2020

Cost: £4,702,031

Valuation (including capitalised costs): £8,034,034

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.

COVID-19

Appropriate valuation adjustments have also been made to reflect the impact of Covid-19 and the consequential effect on the UK and the world economy.

The Board continues to believe that the Company’s adherence to Employee Ownership principles has stood our investee businesses in good stead during the pandemic, and that this will remain the case in the weeks and months ahead, leaving them in good shape for the anticipated return to normal business in due course. The Company continues to have sufficient cash resources to maintain its operations and to allow flexible treatment of investee companies and their obligations.

However, the Company will continue to monitor its investee companies in light of the changing situation, including considering any further impact upon the value of the Company’s portfolio 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 Richard Bailey, Chairman Alistair Currie, Chief Executive	01985 201 980
PETERHOUSE CAPITAL LIMITED Mark Anwyl Allie Feuerlein	020 7469 0930

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

The information contained within this announcement is deemed by the Company to constitute inside information. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.