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Capital for Colleagues plc - Interim Results

·5-min read

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

28 May 2021

CAPITAL FOR COLLEAGUES PLC
(‘Capital for Colleagues’ or the ‘Company’)

Unaudited Interim Results for the six months ended 28 February 2021

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 2021.

Financial Highlights

  • Revenues of £198,000 (2020: £271,000), comprising interest receivable, dividends received and fees

  • Profit of £1.29 million (after tax adjustments) for the six-month period (2020: profit of £1.04 million)

  • Net assets of £9.43 million as at 28 February 2021 (29 February 2020: £7.75 million)

  • NAV per share of 61.05 pence as at 28 February 2021 (29 February 2020: 50.17 pence per share)

Portfolio Highlights

  • Disposal of entire investment in Civils Store Limited (‘Civils Store’) for £1.0 million, yielding a realised profit of £604,000

  • Revalued investment in Anthesis Consulting Group Limited (‘Anthesis’) to £1.15 million, fully reflecting the disposal proceeds received in March 2021

  • £134,000 of follow-on funding provided during the period across 3 investee companies

  • Certain investments revalued upwards by a total of £437,000 during the period, to reflect underlying performance and prospects

  • Investment portfolio at the period end comprised 15 unquoted EOBs (29 February 2020: 18)

Chief Executive’s Statement

There was continued progress across the Company’s portfolio during the six months ended 28 February 2021 and this has enabled the Directors to increase the value attributable to a number of the Company’s investments.

Material developments in the six months

  • Disposal of entire investment in Civils Store 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.

  • Follow-on loans totaling £134,000 were made to three existing investees: Place 2 Place Logistics Limited, The Security Awareness Group Limited and South Cerney Outdoor Limited, providing those companies with additional working capital.

Key Developments since the end of the quarter:

  • Disposal of entire investment in Anthesis for consideration of £1.15 million in cash, a profit on the original investment of around 155%.

  • Following the receipt of this consideration, the Company had cash balances of £2.64 million as at 24 March 2021. The Company has no debt.

Financial Results

In the six months ended 28 February 2021, the Company generated income of £198,000 (2019: £271,000), principally from interest and dividends receivable and fees associated with our investments. As at 28 February 2021, the Company had net assets of £9.43 million (2019: £7.75 million), with the increase in value reflecting the disposal of two investments for proceeds of £2.15 million in cash, the further revaluations of companies within our investment portfolio and the tax adjustment referred to below.

Following discussions with its tax advisers, the Company has been advised that certain deferred taxation provisions made by the Company in relation to recent disposals are no longer required, as a result of the investment gain exemptions afforded by the Reform of the Substantial Shareholdings Exemption in the Finance Act 2017. The effect of this is to write back the whole of the deferred tax provision (£477,000) at the half year. This equates to approximately 3p per share and is reflected in the figures included within this announcement.

Outlook

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 Directors remain optimistic of the Company’s prospects in light of the balance and proven resilience of the companies in its portfolio. The Directors also believe that Employee Ownership has played a key role in the Covid-19 economic recovery so far and that the Company is therefore particularly well-placed to participate in and benefit from that ongoing recovery.

Alistair Currie
Chief Executive

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

PROFIT & LOSS ACCOUNT

Unaudited
6 months to
28 February
2021

Unaudited
6 months to
29 February
2020

Audited
12 months to
31 August
2020

£’000

£’000

£’000

Revenue

198

271

569

Realised gains

605

-

307

Unrealised gains

437

1,333

1,346

1,240

1,604

2,222

Administrative expenses

(236)

(322)

(553)

PROFIT FROM ONGOING OPERATIONS

1,004

1,282

1,669

Impairment of investments and loans (including associates)

-

-

(102)

PROFIT BEFORE TAXATION

1,004

1,282

1,567

Tax

286

(243)

(138)

PROFIT FOR THE PERIOD

1,290

1,039

1,429

BALANCE SHEET

As at
28 February
2021

As at
29 February
2020

As at
31 August

2020

£’000

£’000

£’000

ASSETS

Non-Current Assets

Property, plant & equipment

7

2

2

Investments held at fair value through profit or loss

6,987

7,031

6,950

Investments in Associates

-

16

-

Loans and receivables

943

1,068

452

7,937

8,117

7,404

Current Assets

Trade and other receivables

545

133

701

Cash and cash equivalents

1,027

91

388

1,572

224

1,089

TOTAL ASSETS

9,509

8,341

8,493

EQUITY AND LIABILTIES

Equity

Called up share capital

6,176

6,176

6,176

Share premium

1,099

1,099

1,099

Retained profits

2,152

472

862

Total Equity

9,427

7,747

8,137

Current Liabilities

Trade and other payables

82

205

70

Provision for liabilities

-

389

286

TOTAL EQUITY AND LIABILITIES

9,509

8,341

8,493

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.

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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