Portfolio Update : Employee Owners Group Ltd - 11 January 2023

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

10 January 2023

CAPITAL FOR COLLEAGUES PLC

(‘Capital for Colleagues’, ‘C4C’ or the ‘Company’)

PORTFOLIO UPDATE – EMPLOYEE OWNERS GROUP LIMITED

Capital for Colleagues, the investment vehicle focused on opportunities in the Employee Owned Business (‘EOB’) sector, is pleased to announce an update in respect of its investee company, Employee Owners Group Limited (‘EOG’).

EOG was the holding company for a number of businesses operating predominantly under the ‘Carpenter Oak’ brand. Carpenter Oak has been a leading provider of hand-finished oak framed buildings and structures since the late 1980’s, operating from yards in SW England and Central Scotland, and employing around 35 skilled designers and craft carpenters. A recently appointed new management team has successfully transitioned Carpenter Oaks’ business into higher margin niches and has delivered some notable projects, including a complex octagonal roof for Radley College Chapel, for which it has been shortlisted for two industry awards.

Agreement has now been reached, with support and advice from C4C, for the formation of a new holding company, Carpenter Oak Group Limited (‘COG’), which will be 51% owned by an Employee Ownership Trust (‘EOT’), with the balance owned by Capital for Colleagues (30%) and management (19%). The EOT, which previously held a 7.5% interest in EOG, has acquired its controlling interest from EOG’s founding shareholders.

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

“We are pleased to have assisted Carpenter Oak in its transition to a company with majority employee ownership. The company has also successfully transformed its business focus and, as a significant shareholder in our own right, we look forward to sharing in its future success’.

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

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).