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DJ Capital for Colleagues plc Quarterly Update

 
TIDMCFCP 
 
Capital for Colleagues plc / EPIC: CFCP / Market: NEX / Sector: Investment 
 
27 September 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 31 August 2018. 
 
Key Statistics for the quarter: 
 
  * Portfolio comprised of 17 unquoted EOBs at the end of the quarter (31 May 
    2018: 18) 
  * Net Asset Value ('NAV') of GBP 6,816,878 (: GBP 6,438,680) 
 
  * NAV per share increased by more than 5% to 44.15 pence (31 May 2018: 41.73 
    pence per share) 
 
    Material developments in the quarter: 
 
  * Short-term loans of GBP 100,000 were provided to each of Computer 
    Application Services Limited and Flow Control Company Limited; a short-term 
    loan of GBP 110,000 was repaid by Hire and Supplies Limited. 
 
  * The Company wrote off its GBP 133,654 investment in CSM Site Supplies 
    Limited, a wholly owned subsidiary of Ecomerchant Natural Building 
    Materials Limited, after CSM Site Supplies Limited was placed into 
    voluntary liquidation. 
 
  * The Company's holding of 'A' Ordinary Shares in Computer Application 
    Services Limited has been revalued upwards to GBP 750,000 as at 31 August 
    2018, in light of strong operating performance and markedly improved 
    prospects at the company. 
 
    Further information on the Company's investment portfolio is set out below. 
 
    UNQUOTED INVESTMENTS 
 
    As at 31 August 2018, the Company's portfolio of unquoted investments was 
    valued at GBP 6,319,582 and comprised 17 companies operating across a range 
    of sectors, as set out below: 
 
Industrials (value: GBP 4,605,720; 72.88% of Portfolio) 
 
Construction and Materials                                    Support Services 
Civils Store Limited                         Anthesis Consulting Group Limited 
Ecomerchant Natural Building                           Cotswold Valves Limited 
Materials Limited                                    Hire and Supplies Limited 
Employee Owners Group Limited             Office for Public Management Limited 
Merkko Group Limited                              Flow Control Company Limited 
TPS Investment Holdings Limited                 Castlefield Corporate Advisory 
                                                              Partners Limited 
 
                                                                   Engineering 
Industrial Transportation                               TG Engineering Limited 
Place 2 Place Logistics Limited 
 
 
Retail (value: GBP 455,792; 7.21% of Portfolio) 
 
General Retailers 
The Homebuilding Centre 
(Holdings) Limited 
 
Technology (value: GBP 1,258,070; 19.91% 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 75 million per annum and 
support approximately 615 jobs. 
 
Total Unquoted Investments (including short term loans) as at 31 August 2018 
 
Cost: GBP 5,425,955 
 
Valuation (including capitalised costs): GBP 6,319,582 
 
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 3260 
Richard Bailey, Chairman 
John Eckersley, Chief Executive 
 
PETERHOUSE CAPITAL 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

September 27, 2018 02:00 ET (06:00 GMT)