At the Annual General Meeting of Capital for Colleagues to be held at 11.00 today, Richard Bailey, Chairman of the Company, will make the following statement:
‘We have made strong progress since Capital for Colleagues was established in 2013, investing in a diverse portfolio of companies focused on employee ownership and actively promoting the benefits of employee ownership to a wider audience.
In the context of this progress, the recent news that two of our investee companies, FJ Holdings Limited (‘FJH’) and FJH’s wholly owned subsidiary, Ham Baker Adams Limited (‘HBA’), had been placed into administration was particularly disappointing. As expected, the Administrators have now confirmed that the unsecured creditors of FJH and HBA, including Capital for Colleagues, are unlikely to receive any distribution in respect of amounts due to them. As at 30 November 2016, the Company’s loans to FJH and HBA totalled approximately GBP0.5 million; as at the same date, the carrying value of the Company’s equity stake in FJH was approximately GBP0.8 million.
The impact of the administration at FJH and HBA on the net asset value of the Company will be reflected in the Company’s portfolio update as at 28 February 2017, which will be announced by 31 March 2017.
Despite this set-back, we remain committed to the continued expansion of our investment portfolio, which generated revenues of GBP560,000 in the year ended 31 August 2016. We have increasing access to numerous potential investee companies, in varying sectors and of various sizes, which we believe can deliver attractive returns to shareholders and allow us to build on our leading position in the EOB sector.
We look forward to updating shareholders in due course.’
The Directors of the Company are responsible for the contents of this announcement.