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

28 May 2015

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

Unaudited Interim Results for the six months ended 28 February 2015

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 2015.

Highlights

  • Additional GBP 700,000 invested in the period – GBP 450,000 in new investments and GBP 250,000 in follow-on funding
  • Revenues of GBP 304,000 (2014: GBP 19,000), comprising interest receivable and monitoring fees
  • Net assets of GBP 3.5 million as at 28 February 2015 (2014: GBP  0.9 million)
  • Investment portfolio now comprises 22 entities, 10 private EOBs and 12 publically traded companies displaying demonstrable employee engagement
  • Innovative crowdfunding completed after period end – additional GBP 300,000 raised for investment
  • Directors confident that political and economic stability will drive further growth in the EOB sector

Chief Executive’s Statement

I am delighted to report that Capital for Colleagues continues to make excellent progress in implementing our active investment strategy, focusing on companies with attractive fundamentals and a real commitment to employee ownership. Employee ownership is a proven, successful business model, which is recognised to improve productivity and create wealth whilst providing a stable employment environment and the possibility of attractive commercial returns for investors.

In the six months ended 28 February 2015, the Company invested a further GBP 700,000 in new and existing investee companies.  I am particularly pleased to report that a number of loans were repaid or restructured during the period, which not only highlights the progress made by the underlying companies but also the strength of our investment strategy and portfolio.

We now have investments across a range of business areas, from civil engineering to accountancy, reflecting the diversity of the EOB space and the breadth of investment opportunities available to the Company.

After the end of the interim period, Capital for Colleagues successfully raised GBP 300,000 through an innovative crowdfunding. These proceeds will be used by the Company for investment in EOBs in accordance with the Company’s active growth strategy.

Financial Results

In the period ended 28 February 2015, the Company generated income of GBP 304,053 (2014: GBP 18,970), principally from interest receivable and other fees associated with our investments.  As at 28 February 2015, the Company had net assets of GBP 3.5 million (2014: GBP 0.9 million).

Outlook

Capital for Colleagues’ ability to advise existing and potential EOBs as well as to provide them with funding, means that the Company is exceptionally well placed to create growth in the EOB sector and to benefit from that growth.

We continue to work closely with the Employee Ownership Association and other supporters of employee ownership to promote the commercial and financial benefits of EOBs and we believe that the UK’s relative political and economic stability will continue to foster an environment where EOBs are perceived as important generators of equitable and dynamic growth.

John Eckersley

Chief Executive

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

CAPITAL FOR COLLEAGUES PLC
Richard Bailey, Chairman
John Eckersley, Chief Executive
0161 233 4891
PETERHOUSE CORPORATE FINANCE LIMITED
Mark Anwyl
Duncan Vasey
020 7469 0930
ST BRIDES PARTNERS LTD
Hugo de Salis
Charlotte Heap
020 7236 1177

PROFIT AND LOSS ACCOUNT

Unaudited 6 months to 28 February 2015
GBP 000’s
Unaudited 5 months to 28 February 2014
GBP 000’s
Audited 11 months to 31 August 2014
GBP 000’s
Revenue 304 19 212
Administrative expenses (216) (16) (95)
PROFIT FROM ONGOING OPERATIONS 88 3 117
Costs of Initial Public Offering - - (186)
PROFIT/(LOSS) BEFORE TAXATION 88 3 (69)
Tax - - (23)
PROFIT/( LOSS) FOR THE PERIOD 88 3 (92)

BALANCE SHEET

As at
28 February 2015
GBP 000’s
As at
28 February 2014
GBP 000’s
As at
31 August 2014
GBP 000’s
ASSETS
Non Current Assets
Investments held at fair value through profit or loss 1,329 499 1,033
Loans and receivables 1,565 350 1,295
2,894 849 2,328
Current Assets
Trade and other receivables 122 18 255
Cash and cash equivalents 505 63 868
627 81 1,123
TOTAL ASSETS 3,521 930 3,451

EQUITY AND LIABILTIES
Equity
Called up share capital 2,866 846 2,866
Share premium 614 99 614
Retained (loss) (4) (16) (92)
Total Equity 3,476 929 3,388

Current Liabilities
Trade and other payables 46 1 63

TOTAL EQUITY AND LIABILITIES

3,521

930

3,451

   

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.

Notes

Capital for Colleagues is an investment company focused on the Employee Owned Business (‘EOB’) sector.  The Company has a clear strategy aimed at investing in, advising and growing established, mainly UK-based, EOBs as well as assisting companies which are looking to launch employee ownership schemes, providing the capital and advice to help them achieve their objectives.

Capital for Colleagues 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 identify and capitalise on EOB-focused investment opportunities.

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