Quarterly Investment Update - 24 March 2021
Capital for Colleagues plc / EPIC: CFCP / Market: AQSE / Sector: Investment
24 March 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 28 February 2021.
Key Statistics for the quarter:
- Portfolio comprised of 15 unquoted EOBs at the end of the quarter (30 November 2020: 16)
- Net Asset Value (‘NAV’) of £8,950,959 (30 November 2020: £8,145,106 )
- NAV per share increased to 57.97 pence in the quarter (30 November 2020: 52.75 pence per share)
Key Developments in the quarter:
- Disposal of entire investment in Civils Store Limited 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.
- Significant uplift in valuation of holding in Anthesis Consulting Group Limited (‘Anthesis’) to £1.15 million, reflecting the Company’s exit from this investment immediately after the quarter end.
Key Developments since the end of the quarter:
- Disposal of entire investment in Anthesis for consideration of a £1.15 million in cash, a profit on the original investment of around 155%.
- Following the receipt of this consideration, the Company currently has cash balances of £2.643 million. The Company has no debt.
Further information on the Company’s investment portfolio is set out below.
UNQUOTED INVESTMENTS
As at 28 February 2021, the Company’s portfolio of unquoted investments was valued at £7,930,835 and comprised 15 companies operating across a range of sectors, as set out below:
|
Industrials (value: £3,823,698; 48.21% 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 Anthesis Consulting Group Limited Hire and Supplies Limited Office for Public Management Limited Flow Control Company Limited
|
|
|
Leisure & Travel (value: £273,000; 3.44% of Portfolio)
Recreational Services South Cerney Outdoor Limited |
|||
| Media (value: £521,513; 6.58% of Portfolio) | |||
|
Exhibition Centres The Homebuilding Centre (Holdings) Limited |
|
|
|
|
Technology (value: £3,312,624; 41.77% 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 £ 86.2 million (*£87.2 million) per annum and support approximately 845 (*825) jobs.
*On a like for like comparism with previous quarter, excluding disposals.
Total Unquoted Investments (including short-term loans) as at 28 February 2021
Cost: £4,176,645
Valuation (including capitalised costs): £7,930,835
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.
COVID-19
Appropriate valuation adjustments have also been made to reflect the impact of Covid-19 and the consequential effect on the UK and the world economy.
The Board continues to believe that the Company’s adherence to Employee Ownership principles has stood our investee businesses in good stead during the pandemic, and that this will remain the case in the weeks and months ahead, leaving them in good shape for the anticipated return to normal business in due course. The Company continues to have sufficient cash resources to maintain its operations and to allow flexible treatment of investee companies and their obligations.
However, the Company will continue to monitor its investee companies in light of the changing situation, including considering any further impact upon the value of the Company’s portfolio of investments.
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).