Portfolio Update - Computer Application Services and TPS Investment Holdings

Capital for Colleagues plc / EPIC: CFCP / Market: Aquis/ Sector: Financials

19 November 2024

CAPITAL FOR COLLEAGUES PLC

(‘Capital for Colleagues’, ‘C4C’ or the ‘Company’)

PORTFOLIO UPDATE - COMPUTER APPLICATION SERVICES LIMITED AND

TPS INVESTMENT HOLDINGS LIMITED

Capital for Colleagues, the investment vehicle focused on opportunities in the Employee Owned Business (‘EOB’) sector, is pleased to announce an update in respect of two of its investee companies, Computer Application Services Limited (‘Computer Application Services’ or ‘CAS’) and TPS Investment Holdings Limited (‘TPS Investment Holdings’ or ‘TPS’).

Reflecting the continued growth being delivered by both Computer Application Services and TPS Investment Holdings, and the Directors’ desire to maintain an appropriate balance within the Company’s investment portfolio, Capital for Colleagues has agreed partial disposals of its equity interest in both CAS and TPS.

Computer Application Services

Based in Edinburgh, CAS is a developer of case management software, branded as Workpro. Capital for Colleagues initially invested in CAS in January 2016, since when CAS has continued  to grow its client base significantly, in both its traditional public sector markets and in newer markets that it has targeted in the private sector.

C4C has already reduced its interest in CAS through partial disposals of CAS ordinary shares in June 2023 and April 2024, as CAS was previously one of the larger equity investments in the Company’s portfolio.

C4C has now disposed of additional CAS ordinary shares to Harrock Capital Partners (owned by Bill Ainscough, a non-executive Director of the Company), and TJ Morris (Investments) Limited (a significant shareholder in C4C), in equal proportions, for total cash consideration of £299,200.

Following this transaction, Capital for Colleagues remains interested in 24.4% of the issued equity of Computer Application Services.

TPS Investment Holdings

TPS sources, markets and distributes a specialist range of pipes, valves, fittings and other associated products for the public utility markets throughout the Republic of Ireland and Northern Ireland, with particular focus on the water market.

Reflecting the continued growth at TPS and the Directors’ desire to rebalance the Company’s exposure to the Industrials sector (which currently accounts for approximately 45% of the Company’s investment portfolio), Capital for Colleagues has disposed of TPS ordinary shares to Harrock Capital Partners and TJ Morris (Investments) Limited,  in equal proportions, for total cash consideration of £901,251.

Following this transaction, Capital for Colleagues is interested in 16.0% of the issued equity of TPS.

Bill Ainscough is a non-executive Director of Capital for Colleagues, and his acquisitions of the CAS and TPS ordinary shares from the Company are therefore Related Party Transactions for the purposes of the AQSE Growth Market Apex Rulebook. The Directors of the Company, other than Mr Ainscough, having exercised reasonable care, skill and diligence, consider that the acquisitions of the CAS and TPS ordinary shares by Mr Ainscough are fair and reasonable as far as the shareholders of the Company are concerned.

The proceeds of the disposals, amounting to approximately £1.2 million, will be used by the Company to make further investments in accordance with its investment strategy.

**ENDS**

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

Capital for Colleagues plc

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).