Capital for Colleagues plc Unaudited Interim Results
22 Mayo 2023 - 8:23AM
UK Regulatory
TIDMCFCP
Capital for Colleagues plc / EPIC: CFCP / Market: AQSE / Sector: Financials
22 May 2023
CAPITAL FOR COLLEAGUES PLC
('Capital for Colleagues', 'C4C' or the 'Company')
Unaudited Interim Results for the six months ended 28 February 2023
Capital for Colleagues, the investment vehicle focused on opportunities in the
Employee Owned Business ('EOB') sector, is pleased to announce its unaudited
interim results for the six months ended 28 February 2023.
Financial Highlights
* Revenues of £0.259m (2022: £0.216m), comprising interest receivable,
dividends received and fees
* Profit of £0.933m for the six-month period (2022: £0.227m)
* Net assets of £14.384m as at 28 February 2023 (28 February 2022: £12.645m)
* NAV per share of 77.78 pence as at 28 February 2023 (28 February 2022:
68.38 pence per share)
Portfolio Highlights
* Invested a further £0.240m in an existing investee company as part of a
wider funding restructuring.
* Restructured an existing investee company, enabling an employee trust to
own 51% of the business.
* £0.330m of additional debt funding provided to 4 investee companies.
* Investments revalued upwards by a net total of £1.058m, to reflect
underlying performance and prospects.
* Investment portfolio at the period end comprised 13 unquoted EOBs (28
February 2022: 14)
Chief Executive's Statement
There was continued progress across the Company's portfolio during the six
months ended 28 February 2023 and this has enabled the Directors to increase
the value attributable to a number of the Company's investments. The increase
in the Net Asset Value, along with the dividend of 1.75p per share paid during
the period under review, represents a solid return for shareholders during a
challenging period for quoted Private Equity vehicles.
The addition of MI Accountancy Solutions Limited to our resources has broadened
the support that we are able to provide to existing and potential investees.
It was disappointing to note the sharp fall in the Company's share price at the
end of the reporting period. This fall resulted from actions which were wholly
unrelated to C4C or its business and means that the shares are now trading at a
significant discount to the Net Asset Value.
The Board is exploring a number of initiatives with the objective of
significantly narrowing the discount over the coming months.
Material developments in the six months
* As part of a funding round and capital reorganisation at Hire and Supplies
Limited ('H&S'), C4C sold its holding of 'A' ordinary shares in H&S for
cash consideration of £0.970m (original cost in 2016 of £0.300m). Alongside
its disposal of the 'A' ordinary shares, C4C subscribed £1.210m for new
ordinary shares in H&S as part of the funding round. Following these
transactions, Capital for Colleagues is interested in 20.76% of H&S's
enlarged share capital.
* As part of a reorganisation, Employee Owners Group Limited ('EOG') formed a
new holding company, Carpenter Oak Group Limited, which is now 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, acquired its controlling interest from EOG's founding
shareholders.
* C4C acquired the entire issued share capital of MI Accountancy Solutions
Limited ('MIA'). MIA is a Staffordshire based accountancy firm that offers
a range of accounting services, principally the preparation of management
accounts. MIA has been providing accounting services to a number of C4C's
investee companies, and the Directors believe that, by bringing these
services in house, Capital for Colleagues will be able to cost-effectively
broaden the support and advice it offers all EOBs, whilst at the same time
strengthening relationships with existing investee companies.
Financial Results
In the six months ended 28 February 2023, the Company generated income of £
0.259m (2022: £0.216m), principally from interest and dividends receivable and
fees associated with our investments. The Net Asset Value rose by 4.4% during
the period, and the Company had net assets of £14.384m (2022: £12.645m) as at
28 February 2023.
Outlook
The EOBs in which the Company is invested are generally performing well and we
anticipate further good progress in the Net Asset Value over the remainder of
the financial year.
We continue to promote the commercial and financial benefits of EOBs at every
opportunity and are pleased to see increasing recognition of EOBs as important
generators of equitable and dynamic growth. The recent appointment of Deb Oxley
to our board further underlines our leadership and commitment in the EOB space.
Alistair Currie
Chief Executive
For further information, please visit www.capitalforcolleagues.com or contact:
CAPITAL FOR COLLEAGUES PLC 01985 201 980
Richard Bailey, Chairman
Alistair Currie, Chief Executive
John Lewis, Finance Director
PETERHOUSE CAPITAL LIMITED 020 7469 0930
Mark Anwyl
PROFIT & LOSS ACCOUNT
Unaudited 6 months Unaudited 6 Audited 12
to 28 months to 28 months to 31
February 2023 February 2022 August 2022
£'000 £'000 £'000
Revenue 259 216 492
Fair value gain on investments 1,058 297 1,537
1,317 513 2,059
Administrative expenses (389) (286) (675)
PROFIT FROM ONGOING OPERATIONS 928 227 1,354
Finance Income 5 - 1
PROFIT BEFORE TAXATION 933 227 1,355
Tax - - -
PROFIT FOR THE PERIOD 227 1,355
933
BALANCE SHEET
As at As at As at
28 February 2023 28 February 31 August
2022 2022
£'000 £'000 £'000
ASSETS
Non-Current Assets
Goodwill on consolidation 98 - -
Property, plant & equipment 2 4 3
Investments held at fair value 9,868 7,278 8,548
through profit or loss
Loans and receivables 1,412 1,063 608
11,380 8,345 9,159
Current Assets
Trade and other receivables 172 839
284
Cash and cash equivalents 2,831 4,180 3,939
3,115 4,352 4,778
TOTAL ASSETS 14,495 12,697 13,937
EQUITY AND LIABILTIES
Equity
Called up share capital 7,397 7,397 7,397
Share premium 1,810 1,810 1,810
Retained profits 5,177 3,438 4,567
Total Equity 14,384 12,645 13,774
Current Liabilities
Trade and other payables 111 52 163
TOTAL EQUITY AND LIABILITIES 14,495 12,697 13,937
The interim results have not been reviewed by the Company's auditors.
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).
END
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May 22, 2023 09:23 ET (13:23 GMT)
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