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DJ Capital for Colleagues plc Quarterly Investment Update

 
TIDMCFCP 
 
Capital for Colleagues plc / EPIC: CFCP / Market: NEX / Sector: Investment 
 
21 December 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 2017. 
 
Key Statistics for the quarter: 
 
  * Portfolio comprised of 15 unquoted EOBs at the end of the quarter 
  * Net Asset Value ('NAV') of GBP 6,488,769 (31 August 2017: GBP 6,551,117) 
  * NAV per share of 42.12 pence (31 August 2017: 42.58 pence per share) 
 
Material developments in the quarter: 
 
  * Established a joint venture company, Castlefield Corporate Advisory 
    Partners Limited, to assume responsibility for the non-investment EOB 
    activities previously undertaken by Capital for Colleagues, leaving the 
    Company free to focus on its core business - the provision of flexible 
    capital to EOBs. 
 
  * Restructured the Company's investment in CSM Site Supplies Limited into new 
    A ordinary shares, continuing the policy of switching investments from debt 
    to equity. 
  * Successfully concluded the Company's investment in MI Accountancy Solutions 
    Limited ('MIA'), following the repayment of sums due to Capital for 
    Colleagues. MIA remains a provider of management information to a number of 
    the Company's investees. 
 
Further information on the Company's investment portfolio is set out below. 
 
UNQUOTED INVESTMENTS 
 
As at 30 November 2017, the Company's portfolio of unquoted investments was 
valued at GBP 4,882,122 and comprised 15 companies operating across a range of 
sectors, as set out below: 
 
Industrials (value: GBP 3,781,298; 77.45 % of Portfolio) 
 
Construction and Materials                                          Support Services 
Civils Store Limited                               Anthesis Consulting Group Limited 
Ecomerchant Natural Building                                 Cotswold Valves Limited 
Materials Limited                                          CSM Site Supplies Limited 
Employee Owners Group Limited                              Hire and Supplies Limited 
Merkko Group Limited                                    Office for Public Management 
TPS Investment Holdings Limited                                              Limited 
 
 
Industrial Transportation 
Place 2 Place Logistics Limited 
 
Retail (value: GBP 333,254; 6.83% of Portfolio) 
 
General Retailers 
The Homebuilding Centre (Holdings) 
Limited 
 
Technology (value: GBP 767,570; 15.72% of Portfolio) 
 
Software & Computer Services 
2C Services Limited 
Bright Ascension Limited 
Computer Application Services 
Limited 
 
 
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 GBP 70 million per annum and 
support approximately 550 jobs. 
 
Total Unquoted Investments (including short term loans) as at 30 November 2017 
Cost: GBP 4,380,700 
Valuation (including capitalised costs): GBP 4,882,122 
 
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 a general provision equivalent to 2 per cent. of the value of the unquoted 
investments for possible impairment. The Directors do not, however, believe 
that any general provision impairment is necessary in respect of any of the 
Company's current unquoted investments. 
 
Account is taken of any potential taxation liability in respect of the increase 
in value of investments on an annual basis, as at the Company's year-end. 
 
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 464 7538 
Richard Bailey, Chairman 
John Eckersley, Chief Executive 
 
PETERHOUSE CORPORATE FINANCE LIMITED                            020 7469 0930 
Mark Anwyl 
Duncan Vasey 
 
 
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. 
 
The Company's joint venture, Castlefield Corporate Advisory Partners, educates 
and assists companies which 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 as stipulated under the Market Abuse Regulation 
(EU) No. 596/2014. Upon the publication of this announcement via a Regulatory 
Information Service, this inside information is now considered to be in the 
public domain. 
 
 
 
END 
 

(END) Dow Jones Newswires

December 21, 2017 08:14 ET (13:14 GMT)