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DJ Capital for Colleagues plc Quarterly Investment Update

 
TIDMCFCP 
 
Capital for Colleagues plc / EPIC: CFCP / Market: ISDX / Sector: Investment 
 
4 January 2017 
 
                          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 30 November 2016. 
 
Key Statistics for the quarter: 
 
  * GBP 5,429,235 (: GBP 5,042,735) lent or invested in a portfolio of 
    18unquoted EOBs and 12 publicly traded companies displaying demonstrable 
    employee engagement 
 
  * Net Asset Value ('NAV') of GBP 5,205,581 (31 August 2016: GBP 5,249,017) 
 
  * NAV per share of 54.09 pence (31 August 2016: 54.54 pence per share) 
 
    Material developments in the quarter: 
 
  * GBP 200,000 fixed term loan to Hire & Supplies Limited ('H&S') and 100,000 
    convertible preference shares in H&S held by the Company, were redeemed 
    through the allotment to the Company of Preference Shares in H&S worth GBP 
    300,000. 
 
  * Additional GBP 0.1 million invested in Anthesis Consulting Group Limited. 
 
  * GBP 250,000 subscribed for 5,295 A Ordinary Shares of GBP 1 each in Office 
    for Public Management Limited ('OPML'); the Company also made a loan of GBP 
    50,000 to OPML. 
 
  * GBP 150,000 subscribed for 150,000 A Ordinary Shares of GBP 1 each in 
 
  *  Assisted Ecomerchant Natural Building Materials Limited with a short term 
    working capital loan of GBP 47,000 
 
    John Eckersley, Chief Executive of Capital for Colleagues, said: 'We are 
    delighted to have added OPML and Bright Ascension to our portfolio and with 
    the further progress we have made in aligning our interests with those of 
    employee stakeholders in our investee companies.' 
 
    Further information on the Company's investment portfolio is set out below. 
 
    UNQUOTED INVESTMENTS 
 
    As at 30 November 2016, the Company's portfolio of unquoted investments 
    comprised 18 companies operating across a range of sectors. 
 
                                          Value of          % of Portfolio 
                                          Investment 
                                          (GBP) 
 
INDUSTRIALS 
 
Construction and Materials 
                Civils Store Limited      400,000           7.41 
                Ecomerchant Natural       340,000           6.30 
Building Materials Ltd                    293,224           5.43 
                TPS Investment Holdings 
Limited 
 
Industrial Engineering 
                FJ Holdings Limited       889,333           16.48 
                Ham Baker Adams Limited   405,000           7.51 
 
Industrial Transportation 
                Place 2 Place Logistics   150,000           2.78 
Limited 
 
Support Services 
                Anthesis Consulting Group 635,000           11.77 
Limited                                   220,000           4.08 
                Cotswold Valves Limited   190,000           3.52 
                CSM Site Supplies Limited 455,455           8.44 
                Hire and Supplies         206,153           3.82 
Limited                                   308,941           5.73 
                Merrko Group Limited      45,000            0.83 
              Office for Public 
Management Limited 
                MI Accountancy Solutions 
Limited 
 
TOTAL INDUSTRIALS                         4,538,106         84.10 
 
RETAIL 
 
General Retailers 
                The Homebuilding Centre   340,328           6.31 
(Holdings) Limited 
 
TOTAL RETAIL                              340.328           6.31 
 
TECHNOLOGY 
 
Software & Computer Services 
                2C Services Limited       50,020            0.93 
                Bright Ascension Limited  158,050           2.92 
                Computer Application      259,500           4.81 
Services Limited                          50,000            0.93 
                Figure Consulting Limited 
 
TOTAL TECHNOLOGY                          517,570           9.59 
 
TOTAL UNQUOTED PORTFOLIO                  5,396,004         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 71 million per annum and 
support approximately 600 jobs. 
 
Total Unquoted Investments as at 30 November 2016 
 
Cost (including short term loans): GBP 4,806,992 
 
Valuation (including capitalised costs): GBP 5,396,004 
 
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. 
 
Total Publicly Traded Investments as at 30 November 2016 
 
Valuation (including cash): GBP 33,556 
 
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 30 November 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

January 04, 2017 02:00 ET (07:00 GMT)