Quarterly Investment Update

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

 15 April 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 29 February 2024. 

Key Statistics for the quarter:

• Portfolio comprised of 15 unquoted EOBs at the end of the quarter (30 November 2023: 14)
• Net Asset Value (‘NAV’) of £16,147,944 (30 November 2023: £15,103,155)  
• NAV per share has increased to 87.32 pence in the quarter (30 November 2023: 81.67 pence per share)

Key Developments in the quarter:

• The Company led a £1.5 million investment round into a new investee company, Rapid Retail Limited (`Rapid Retail'), which designs, sells, refurbishes and rents portable shops, retail kiosks and retail merchandising units (RMUs). Capital for Colleagues invested a total of £0.5 million into Rapid Retail, alongside a private investment company controlled by Bill Ainscough, a non-executive Director of C4C.

• During the period, C4C also made follow on loans of £392,600 to five investee companies to support their working capital requirements.

As at 29 February 2024, the Company had cash balances of £686,179. The Company has no debt.

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

UNQUOTED INVESTMENTS

As at 29 February 2024, the Company’s portfolio of unquoted investments was valued at £15,632,631 and comprised 15 companies operating across a range of sectors, as set out below:

Industrials (value: £6,787,887; 43.42% of Portfolio)
Construction & Materials Ecomerchant Natural Building Materials Limited Carpenter Oak Group Limited TPS Investment Holdings Limited Industrial Transportation Place 2 Place Logistics Limited					Support Services Hire and Supplies Limited Flow Control Company Limited The Security Awareness Group Limited Rapid Retail Limited Engineering Morris Commercial Limited
Leisure & Travel (value: £560,422; 3.59% of Portfolio) Recreational Services The Real Outdoor Xperience Limited Media (value: £479,056; 3.06% of Portfolio)
Exhibition Centres The Homebuilding Centre (Holdings) Limited
Technology (value: £7,805,266; 49.93% of Portfolio)
Software & Computer Services EO MSP Holdings Limited Bright Ascension Limited Computer Application Services Limited Craft Prospect 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 £49.7 million (£47.1 million) per annum and support approximately 335 (345) jobs. 

Total Unquoted Investments (including short-term loans) as at 29 February 2024

Cost:  £10,316,366

Valuation (including capitalised costs):  £15,632,631

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 PLC Richard Bailey, Chairman Alistair Currie, Chief Executive John Lewis, Finance Director	01985 201 980
PETERHOUSE CAPITAL LIMITED Mark 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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