Half Yearly Investment Update and Covid-19 Statement - 27 March 2020

Capital for Colleagues plc / EPIC: CFCP / Market: AQSE / Sector: Investment
27 March 2020
CAPITAL FOR COLLEAGUES PLC (‘Capital for Colleagues’ or the ‘Company’) 

Capital for Colleagues, the investment vehicle focused on opportunities in the Employee Owned Business (‘EOB’) sector, announces an investment update in respect of the six months ended 29 February 2020. 

Key Statistics for the six months:

  • Portfolio comprised of 18 unquoted EOBs at the end of the six months (31 August 2019: 18)
  • Net Asset Value (‘NAV’) of £7,747,343 (31 August 2019 re-stated: £6,710,207 )
  • NAV per share increased by 15.5% to 50.17 pence in the six-month period (31 August 2019 re-stated: 43.45 pence per share)

Material developments in the six months:

  • The Company invested a total of £405,000 in The Security Awareness Group Ltd (‘TSAG’) – £300,000 in preference shares and ordinary shares and a loan of £105,000.
  • TSAG is a recently formed company, established to acquire the business and assets of The Security Company (International) Limited (‘TSC’), which has been delivering behavioural change and security awareness programmes since 1997. Huntingdon-based TSC has clients in numerous sectors, including pharmaceuticals, atomic energy, precious metals, banking, government, IT, insurance and law; its clients include household names, such as Specsavers, KraftHeinz, the British Red Cross and the Prince’s Trust.

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


As at 29 February 2020, the Company’s portfolio of unquoted investments was valued at £8,116,008 and comprised 18 companies operating across a range of sectors, as set out below:

Industrials (value: £4,150,388; 51.14% of Portfolio)

Construction and Materials

Civils Store Limited

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

Anthesis Consulting Group Limited

Hire and Supplies Limited

Office for Public Management Limited

Flow Control Company Limited

Castlefield Corporate Advisory Partners Limited


TG Engineering Limited


Leisure & Travel (value: £232,000; 2.86% of Portfolio)

Recreational Services

South Cerney Outdoor Limited

Media (value: £596,519; 7.35% of Portfolio)

Exhibition Centres

The Homebuilding Centre (Holdings) Limited






Technology (value: £3,137,101; 38.65% of Portfolio)

Software & Computer Services

2C Services Limited

Bright Ascension Limited

Computer Application Services Limited

The Security Awareness Group Ltd






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 £101 million per annum and support approximately 880 jobs. 

Total Unquoted Investments (including short term loans) as at 29 February 2020

Cost: £5,840,149

Valuation (including capitalised costs): £8,116,008


Each of the unquoted investments is included at the Directors’ assessment of fair value, in accordance with International Private Equity and Venture Capital Guidelines. The previous policy of providing a general provision equivalent to 2% of the value of the unquoted investments has now been discontinued in favour of a more specific and prudent review of individual 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 above financial figures were prepared as at 29 February 2020 in advance of the severe restrictions relating to Covid-19 and the consequential effect on the UK and the world economy. The Board of Directors of the Company has, since 29 February 2020, reviewed the position in the context of the Company’s own (and its investees’) ability to manage the businesses through the situation and assessed any direct effect on their enterprise value.

  • The Board applauds the UK government initiatives which mitigate against the worst effects for UK businesses. Our Employee Ownership principles will stand our investee businesses in good stead during the weeks and months ahead and leave them in good shape for the anticipated return to normal business in due course.
  • Capital for Colleagues has sufficient cash resources to maintain its operations and to allow flexible treatment of investee companies and their obligations.
  • Covid-19 has affected the value of all businesses and the Company will not be an exception to this. The Board has specifically reviewed the carrying values of all investments in the context of changes since 29 February 2020 and has concluded that the value of the Company’s portfolio as a whole has likely reduced by an amount in the range of 10% to 15%. Therefore, the Directors believe that the declared NAV per share of 50.17p needs to be discounted (tax adjusted) to be within a range of 45.1p and 42.6p per share.
  • However, this is a rapidly evolving situation, with no guarantee as to when business life may revert to some semblance of normality. We will continue to monitor our investee companies in light of the changing situation, including considering any further impact upon the value of our portfolio of investments.

The Board would like to send all shareholders, investees, suppliers and staff its best wishes and offer its support over the coming months.

The Directors of the Company are responsible for the contents of this announcement.


For further information, please visit or contact:


Richard Bailey, Chairman

Alistair Currie, Chief Executive


01985 201 980


Mark Anwyl

Duncan Vasey

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

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.