QUARTERLY INVESTMENT UPDATE

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

 16 August 2024

CAPITAL FOR COLLEAGUES PLC

(‘Capital for Colleagues’, ‘C4C’ 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 31 May 2024. 

Key Statistics for the quarter:

• Portfolio comprised of 15 unquoted EOBs at the end of the quarter (29 February 2024: 15)
• Net Asset Value (‘NAV’) of £16,249,689 (29 February 2024: £16,147,944)  
• NAV per share has increased to 87.87 pence in the quarter (29 February 2024 : 87.32 pence per share)
• A Dividend of 2.00 pence per share was paid in the quarter.

Key Developments in the quarter:

• Capital for Colleagues completed a partial disposal of its holding in Computer Application Services Limited 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 £256,960.

• During the period, C4C also made follow on loans of £97,120 to three investee companies to support their working capital requirements.

As at 31 May 2024, the Company had cash balances of £842,815. The Company has no debt.

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

UNQUOTED INVESTMENTS

As at 31 May 2024, the Company’s portfolio of unquoted investments was valued at £15,619,808 and comprised 15 companies operating across a range of sectors, as set out below:

Industrials (value: £7,308,496; 46.79% of Portfolio)
Construction & MaterialsEcomerchant Natural Building Materials LimitedCarpenter Oak Group LimitedTPS Investment Holdings LimitedIndustrial TransportationPlace 2 Place Logistics Limited					Support ServicesHire and Supplies LimitedFlow Control Company LimitedThe Security Awareness Group LimitedRapid Retail LimitedEngineeringMorris Commercial Limited
Leisure & Travel (value: £548,464 3.51% of Portfolio)Recreational ServicesThe Real Outdoor Xperience Limited Media (value: £454,807; 2.92% of Portfolio)
Exhibition CentresThe Homebuilding Centre (Holdings) Limited
Technology (value: £7,308,041; 46.78% of Portfolio)
Software & Computer ServicesBright Ascension LimitedComputer Application Services LimitedCraft Prospect LimitedEO MSP Holdings Limited

The loans and investments made by the Company to or in 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 £53.0million (£49.7 million) per annum and support approximately 360 (335) jobs. 

Total Unquoted Investments (including short-term loans) as at 31 May 2024

Cost:  £9,828,770

Valuation (including capitalised costs):  £15,619,808

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.

**ENDS**

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

CAPITAL FOR COLLEAGUES PLCRichard Bailey, ChairmanAlistair Currie, Chief ExecutiveJohn Lewis, Finance Director	01985 201 980
PETERHOUSE CAPITAL LIMITEDMark Anwyl	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).

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