Portfolio Update - Computer Application Services

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

30 June 2023

CAPITAL FOR COLLEAGUES PLC

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

PORTFOLIO UPDATE – COMPUTER APPLICATION SERVICES 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 Computer Application Services Limited (‘CAS’).

Based in Edinburgh, CAS is a developer of case management software, branded as Workpro. Capital for Colleagues initially invested in CAS in January 2016, since when CAS has grown its client base significantly, in both its traditional public sector markets and in newer markets that it has targeted in the private sector. Reflecting this sustained growth, CAS is currently the largest holding in the Company’s portfolio, with C4C’s interest valued at £2.5 million as at 31 May 2023.

To reflect the growth at CAS and to prudently rebalance this element of the Company’s investment portfolio, Capital for Colleagues has agreed to dispose of part of its holding of CAS ordinary shares to Bill Ainscough, a non-executive Director of the Company, and TJ Morris Limited, a significant shareholder in C4C, in equal proportions, for total cash consideration of £754,000.

Following this transaction, Capital for Colleagues will be interested in 33.33% of the issued equity of CAS and the CAS Employee Benefit Trust will be interested in 32.32% of the issued equity.

Bill Ainscough is a non-executive Director of Capital for Colleagues, and his acquisition of the CAS ordinary shares from the Company is therefore a Related Party Transaction for the purposes of the AQSE Growth Market Apex Rulebook. The Directors of the Company, other than Mr Ainscough, having exercised reasonable care, skill and diligence, consider that the acquisition of the CAS ordinary shares by Mr Ainscough is fair and reasonable as far as the shareholders of the Company are concerned.

Commenting on this portfolio rebalancing, Alistair Currie, Chief Executive of Capital for Colleagues, said:

‘We have been a strong supporter of CAS for over 7 years  and believe that the growth that CAS  has delivered in that period makes it prudent for C4C to rebalance our portfolio holding, whilst opening up the investment opportunity to like-minded and supportive investors in Bill Ainscough and TJ Morris Limited.

We are delighted to have shared in the excellent progress at CAS to date and look forward to participating in an exciting future for the business.’

Ken Naismith, Chief Executive of CAS, commented:

‘We are delighted to welcome Bill Ainscough and TJ Morris Limited as shareholders in CAS as we expand Workpro’s place in Employee Relations and Regulated Complaints case management markets.  Workpro is a Software as a Service product that helps our customers to optimise case outcomes and mitigate the risks they face in today’s challenging operating environment. With loyal customer numbers growing each month, and sound financial backing, employee-shareholders, investors and customers can look forward to the ongoing development of Workpro and continued growth of the company.’

**ENDS**

For further information, please visit www.capitalforcolleagues.com or contact:

CAPITAL FOR COLLEAGUES PLC Richard Bailey, Chairman Alistair Currie, Chief Executive John Lewis, Finance Director	01985 201 980
PETERHOUSE CAPITAL LIMITED Mark Anwyl	020 7469 0930

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

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).