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DJ Capital for Colleagues plc Quarterly Investment Update

 
TIDMCFCP 
 
Capital for Colleagues plc / EPIC: CFCP / Market: NEX / Sector: Investment 
 
26 March 2018 
 
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 28 February 2018. 
 
Key Statistics for the quarter: 
 
  * Portfolio comprised of 17 unquoted EOBs at the end of the quarter (30 
    November 2017: 15) 
  * Net Asset Value ('NAV') of GBP 6,396,063 (30 November 2017: GBP 6,488,769) 
  * NAV per share of 41.52 pence (30 November 2017: 42.12 pence per share) 
 
Material developments in the quarter: 
 
  * Existing investee company, Cotswold Valves Limited ('CVL'), acquired the 
    entire issued share capital of Flow Control Company Limited ('FCCL'), 
    giving CVL the critical mass required to further expand and diversify its 
    business; as part of the transaction, Capital for Colleagues made a working 
    capital loan of GBP 300,000 to FCCL. All employees of the enlarged business 
    are now beneficiaries of the existing CVL Employee Ownership Trust (EOT), 
    which holds 51% of the issued ordinary share capital of CVL. 
  * As announced in the previous quarter, the Company has invested GBP 23,800 
    in a joint venture company, Castlefield Corporate Advisory Partners Limited 
    ('CCAP'), which was responsible for identifying the acquisition of FCCL, 
    advising Capital for Colleagues on the terms of the additional finance it 
    provided and managing the transaction to completion. 
 
Further information on the Company's investment portfolio is set out below. 
 
UNQUOTED INVESTMENTS 
 
As at 28 February 2018, the Company's portfolio of unquoted investments was 
valued at GBP 5,241,773 and comprised 17 companies operating across a range of 
sectors, as set out below: 
 
Industrials (value: GBP 4,141,663; 79.01% 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 Limited 
TPS Investment Holdings Limited                   Flow Control Company Limited 
                                                Castlefield Corporate Advisory 
                                                              Partners Limited 
Industrial Transportation 
Place 2 Place Logistics Limited 
 
Retail (value: GBP 332,540; 6.34% of Portfolio) 
 
General Retailers 
The Homebuilding Centre 
(Holdings) Limited 
 
Technology (value: GBP 767,570; 14.64% 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 71 million per annum and 
support approximately 550 jobs. 
 
Total Unquoted Investments (including short term loans) as at 28 February 2018 
 
Cost: GBP 4,777,283 
 
Valuation (including capitalised costs): GBP 5,241,773 
 
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 http://www.capitalforcolleagues.com/ or 
contact: 
 
 
CAPITAL FOR COLLEAGUES PLC                                      0161 464 3260 
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

March 26, 2018 02:00 ET (06:00 GMT)