Capital for Colleagues seeks admission to the ISDX Growth Market
03 March 2014
Intention to raise £2.19 million
London, 3 March 2014 – ICAP Securities & Derivatives Exchange (ISDX) announces that Capital for Colleagues plc (‘Capital for Colleagues’ or the ‘Company’) has applied to join the ISDX Growth Market. Capital for Colleagues was established to provide funding and support to Employee Owned Businesses (‘EOBs’). The Company believes that co-ownership is a proven and successful business model which improves productivity, creates wealth and provides a stable employment environment.
Capital for Colleagues has conditionally raised £2.19 million in a placing and is expected to join ISDX on 17 March 2014. Peterhouse Corporate Finance Limited is acting as ISDX corporate adviser and corporate broker to Capital for Colleagues.
The EOB sector currently accounts for a combined annual turnover in excess of £30 billion in the UK, representing over 3% of the nation’s GDP, and is targeted to grow to 10% of GDP by 2020. Capital for Colleagues aims to generate attractive returns for investors by investing in this growing area of the UK's economy.
Seth Johnson, CEO of ISDX, said "I am delighted that Capital for Colleagues has applied to join the ISDX Growth Market. Employee ownership is an increasingly common feature within businesses in the UK and Capital for Colleagues' business model should provide support to this important sector. We wish the Company success with its fund raising and look forward to seeing it generate growth and value for shareholders on our market."
John Eckersley, CEO of Capital for Colleagues said, "By listing on ISDX, Capital for Colleagues will offer investors a unique opportunity to gain exposure to a distinct and strongly performing asset class. We chose to list on the ISDX Growth Market because we believe it will allow us to access the capital we need for the next stage in our growth strategy."
|Serra Balls ||Acting Head of Communications ||+44 (0) 20 7050 7103|
|Alex Dee ||Head of Investor Relations ||+44 (0) 20 7050 7123|
|Rebecca Mitchell ||Maitland ||+44 (0) 20 7379 5151|
Capital for Colleagues Contacts
|John Eckersley ||Capital for Colleagues Plc ||+44 (0)161 233 4890|
|Duncan Vasey / Mark Anwyl ||Peterhouse Corporate Finance Limited ||+44 (0)20 7469 0930|
|Charlotte Heap ||St Brides Media & Finance Ltd ||+44 (0)20 7236 1177|
Notes to Editors
Employee Owned Business
An EOB is generally defined as a commercial enterprise owned to a meaningful extent by the people who work for it. The EOB sector in the UK accounts for a combined annual turnover of in excess of £30 billion.
Government Support for Employee Owned Businesses
In a 2012 speech which extolled the virtues of "responsible capitalism", Deputy PM Nick Clegg stated that employee-owned businesses are more dynamic and have higher morale than their conventionally-owned peers thanks to the combined efforts of a "well-rewarded workforce". Mr Clegg wants 'his to become the decade of employee share ownership".
Capital for Colleagues’ Investment Portfolio
On listing, Capital for Colleagues expects to have equity and/or debt related interests in three EOBs: FJ Holdings, an independent UK specialist manufacturer and distributor of flow control products and sewage treatment equipment; Merkko, a builder’s merchant located in Oxfordshire which supplies a broad range of materials and equipment primarily to members of the construction industry; and TPS, which sources, markets and distributes specialist products for the public utility market in the UK and Ireland. A total of £600,000 will have been committed to these companies.
About ICAP Securities & Derivatives Exchange
ICAP Securities & Derivatives Exchange ("ISDX") is a London-based market providing UK and international companies with access to capital through its fully listed and growth markets. The ISDX Growth Market is a venue for small and medium sized companies seeking to raise growth capital, typically between £150,000 and £5 million, achieve an independent market valuation and enhance their corporate profile.
ISDX is a Recognised Investment Exchange (RIE) under the Financial Services & Markets Act 2000, a Recognised Stock Exchange under the Income Tax Act 2007 and a member of the ICAP Group.
For more information, please go to www.isdx.com
ICAP is a leading markets operator and provider of post trade risk mitigation and information services. Group companies provide services that match buyers and sellers in the wholesale markets in interest rates, credit, commodities, FX, emerging markets and equity derivatives through voice and electronic networks. Through our post trade risk and information services we help our customers manage and mitigate risks in their portfolios. For more information, please go to www.icap.com.
About Capital for Colleagues
Capital for Colleagues is an investment vehicle focused on opportunities in the Employee Owned Business (EOB) sector. The Company views this as an attractive area for investment, primarily as a result of its knowledge of ownership structures, which have historically performed well.
Capital for Colleagues has a clearly defined strategy, focused on providing advice and finance to mainly UK and Irish companies that either have an established structure of employee ownership or are looking to establish one. Importantly, some investments have already been made and a series of further opportunities has been identified.
The Company is one of the very few specialists investing in the EOB sector and quite naturally has developed a strong relationship with the leading industry body, the Employee Ownership Association (‘EOA’). This well-established link provides Capital for Colleagues with a large pool of potential investee companies, whilst also offering an additional service and resource to members of the EOA.