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DJ Capital for Colleagues plc Half-year Report

 
TIDMCFCP 
 
Capital for Colleagues plc / EPIC: CFCP / Market: NEX Exchange Growth Market / 
                              Sector: Investment 
 
                          CAPITAL FOR COLLEAGUES PLC 
 
                  ('Capital for Colleagues' or the 'Company') 
 
      Unaudited Interim Results for the six months ended 28 February 2018 
 
Capital for Colleagues, the investment vehicle focused on opportunities in the 
Employee Owned Business ('EOB') sector, is pleased to announce its unaudited 
interim results for the six months ended 28 February 2018. 
 
Highlights 
 
  * Additional GBP 323,800 invested in the period - GBP 23,800 in new 
    investments and GBP 300,000 in follow-on funding 
  * Revenues of GBP [138,000] (2017: GBP 198,000), comprising interest 
    receivable and other fees 
  * Net assets of GBP 6.4 million as at 28 February 2018 (28 February 2017: GBP 
    4.2 million) 
  * A loss of GBP 170,000 for the six-month period (2017: loss of GBP 1.06 
    million) 
  * Investment portfolio at the period end comprised 17 (28 February 2017: 15) 
    unquoted EOBs 
  * NAV per share of 41.52 pence (28 February 2017: 43.54 pence per share) 
  * Directors confident of continuing growth from existing and new investments 
 
Chief Executive's Statement 
 
In the six months ended 28 February 2018, the Company invested a further GBP 
323,800 in new and existing investee companies.  As we never tire of saying, 
employee ownership is a proven, successful business model, which is recognised 
to improve productivity and create wealth, whilst providing a stable employment 
environment and the possibility of attractive commercial returns for investors. 
This message seems to be getting through, as the breadth of opportunities 
available to us continues to expand. We now have investments across a range of 
business areas, most recently adding precision engineering to our stable of 
EOBs through our investment in TG Engineering Limited. 
 
In accordance with our business plan, we are continuing to align our interests 
with those of employee stakeholders at our investee companies as they become 
more established co-owned businesses. In this context, many of our portfolio 
companies have accepted our offer to convert our existing debt instruments into 
equity, a progression we are delighted with. One of the by-products of this 
change is the short-term effect on the Company's income, whereby interest 
previously receivable is exchanged for long-term capital value and dividend 
income. There is inevitably a short-term gap between these two investment 
models and the Board is continually reviewing the carrying value of all 
investments to ensure that they are fairly reflected. 
 
Financial Results 
 
In the six months ended 28 February 2018, the Company generated income of GBP 
138,000 (2017: GBP 198,000), principally from interest receivable and other 
fees associated with our investments.  As at 28 February 2018, the Company had 
net assets of GBP 6.4 million (2017: GBP 4.2 million). 
 
Outlook 
 
Capital for Colleagues' ability to advise existing and potential EOBs as well 
as to provide them with funding, means that the Company is exceptionally well 
placed to create growth in the EOB sector and to benefit from that growth. 
 
We continue to work closely with the Employee Ownership Association and other 
supporters of employee ownership to promote the commercial and financial 
benefits of EOBs. We remain hopeful that the UK's political and economic 
environment will increasingly help to foster a recognition of EOBs as important 
generators of equitable and dynamic growth. 
 
John Eckersley 
 
Chief Executive 
 
For further information, please visit www.capitalforcolleagues.com or contact: 
 
CAPITAL FOR COLLEAGUES PLC                                      0161 464 3260 
Richard Bailey, Chairman 
John Eckersley, Chief Executive 
 
PETERHOUSE CAPITAL LIMITED                                      020 7469 0930 
Mark Anwyl 
Duncan Vasey 
 
 
PROFIT AND LOSS ACCOUNT 
 
                                               Unaudited 6 Unaudited 6 Audited 12 
                                                 months to   months to  months to 
                                               28 February 28 February  31 August 
                                                      2018        2017       2017 
                                                 GBP 000's   GBP 000's  GBP 000's 
 
Revenue                                                138         198        372 
 
 Unrealised (Losses)/gains                           (104)         208        312 
 
                                                        34         406        684 
 
Administrative expenses                              (204)       (247)      (530) 
 
PROFIT FROM ONGOING OPERATIONS                       (170)         159        154 
 
Exceptional Item                                         -     (1,321)   (1,321)- 
 
PROFIT/(LOSS) BEFORE TAXATION                        (170)     (1,162)    (1,167) 
 
Tax                                                      -         102       120) 
 
PROFIT/(LOSS) FOR THE PERIOD                         (170)     (1,060)    (1,047) 
 
BALANCE SHEET 
 
                                                    As at       As at      As at 
                                              28 February 28 February  31 August 
                                                     2018        2017       2017 
                                                GBP 000's   GBP 000's  GBP 000's 
 
ASSETS 
 
Non Current Assets 
 
Investments held at fair value through profit       4,594       3,296      4,592 
or loss 
 
Loans and receivables                               1,034         689        535 
 
                                                    5,628       3,985      5,127 
 
Current Assets 
 
Trade and other receivables                            88         208        276 
 
Cash and cash equivalents                             789         161      1,283 
 
                                                      877         369      1,559 
 
TOTAL ASSETS                                        6,505       4,354      6,686 
 
 
EQUITY AND LIABILTIES 
 
Equity 
 
Called up share capital                             6,167       3,850      6,154 
 
Share premium                                        1099       1,036      1,097 
 
Retained (loss)                                     (853)       (695)      (683) 
 
Total Equity                                        6,413       4,191      6,568 
 
 
Current Liabilities 
 
Trade and other payables                               84         163        110 
Provision for liabilities                               8           -          8 
 
 
TOTAL EQUITY AND LIABILITIES                        6,505       4,354      6,686 
 
The interim results have not been reviewed by the Company's auditors. 
 
The Directors of the Company are responsible for the contents of this 
announcement. 
 
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

May 21, 2018 07:08 ET (11:08 GMT)