Portfolio Update : Civils Store Limited - 2 February 2021

Capital for Colleagues plc / EPIC: CFCP / Market: AQSE / Sector: Investment
2 February 2021

CAPITAL FOR COLLEAGUES PLC

(‘Capital for Colleagues’ or the ‘Company’)

PORTFOLIO UPDATE – CIVILS STORE LIMITED

Capital for Colleagues, the investment vehicle focused on opportunities in the Employee Owned Business (‘EOB’) sector, is pleased to announce that it has sold its investment in portfolio company Civils Store Limited (‘CSL’) for consideration of approximately £1.0 million, a profit on the original investment of around 150%. The investment had been valued at £720,000 in the Company’s investment update for the quarter ended 30 November 2020. The valuation on disposal represents an increase in net asset value of approximately 1.8p per share.

CSL is a UK specialist distributor of civil engineering and construction materials. CSL began trading in 2013 with Capital for Colleagues providing £400,000 of debt funding in 2014 and 2015 to help to facilitate the growth of the business. At that stage, the company comprised three depots and its initial focus was on creating long term relationships with a wide range of local customers by offering exceptional customer service. Having successfully established the business, the CSL team began a controlled expansion and CSL currently operates from five branches.

In December 2015, the debt funding was repaid in full and Capital for Colleagues subscribed £400,000 for 400,000 redeemable, non-voting ‘A’ Ordinary shares in CSL. These shares have now been redeemed by CSL at a valuation of approximately £1.0 million. Capital for Colleagues will receive £500,000 of the proceeds from the sale on 15 February 2021, with the balance being due by no later than 31 July 2021.

The proceeds from the sale will be applied in the ongoing fulfilment of the Company’s investment strategy and for general working capital purposes.

Alistair Currie, Chief Executive of Capital for Colleagues, said:

‘We are delighted with the profitable realisation of our investment in CSL. We have supported and guided CSL since 2014 and wish the management and employees of CSL well on the next stage of the company’s development.’

Kevin Hancock, Chief Executive of Civils Store, said:

‘The Board of Civils Store is pleased to have concluded this agreement to buy back Capital for Colleagues’ ‘A’ Ordinary shares. We would like to thank Capital for Colleagues for their valuable assistance in our early years of trading.’

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

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. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.