Capital for Colleagues plc - Quarterly Investment Update

Capital for Colleagues plc - Quarterly Investment Update

PR Newswire

London, June 24

Capital for Colleagues plc / EPIC: CFCP / Market: AQSE / Sector: Investment

24 June 2021

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, announces an investment update in respect of the quarter ended 31 May 2021.

Key Statistics for the quarter:

• Portfolio comprised of 14 unquoted EOBs at the end of the quarter (28 February 2021: 15)
• Net Asset Value ('NAV') of £9,891.499 (28 February 2021: £9,427,661 )
• NAV per share increased to 64.06 pence in the quarter (28 February 2021: 61.05 pence per share)

Key Developments in the quarter:

• Disposal of entire investment in Anthesis Consulting Group Limited for consideration of approximately £1.15 million in cash, a profit on the original investment of around 155%. The investment had been valued at the disposal value as at the quarter ended 28 February 2021.
• The Company currently has cash balances of £2.652 million. The Company has no debt.

Further information on the Company's investment portfolio is set out below.

UNQUOTED INVESTMENTS

As at 31 May 2021, the Company's portfolio of unquoted investments was valued at £7,261,248 (including loans) and comprised 14 companies operating across a range of sectors, as set out below:

Industrials (value: £3,348,517; 46.11% of Portfolio)
Construction and Materials Ecomerchant Natural Building Materials Limited Employee Owners Group Limited Merkko Group Limited TPS Investment Holdings Limited Industrial Transportation Place 2 Place Logistics Limited			Support Services Flow Control Company Limited Hire and Supplies Limited Office for Public Management Limited The Security Awareness Group Limited
Leisure & Travel (value: £335,358; 4.62% of Portfolio) Recreational Services South Cerney Outdoor Limited Media (value: £516,156; 7.11% of Portfolio)
Exhibition Centres The Homebuilding Centre (Holdings) Limited
Technology (value: £3,061,217; 42.16% 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 £ 49.8 million (*£48.2 million) per annum and support approximately 365 (*350) jobs.

*On a like for like comparism with previous quarter, excluding disposals.

Total Unquoted Investments (including short-term loans) as at 31 May 2021

Cost: £3,721,120

Valuation (including capitalised costs): £7,261,248

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.

Account is taken of any potential taxation liability in respect of the increase in value of investments on a quarterly basis.

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 Richard Bailey, Chairman Alistair Currie, Chief Executive	01985 201 980
PETERHOUSE CAPITAL LIMITED Mark Anwyl Allie Feuerlein	020 7469 0930

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. In addition, the Company educates and assists companies that 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

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation EU 596/2014 as it forms part of retained EU law (as defined in the European Union (Withdrawal) Act 2018).