Calculus Capital generates a 5.3x return from Waterfall Services

Private equity fund manager Calculus Capital successfully exits its holding in Waterfall Services Limited, a leading independent contract caterer, through a sale to private equity firm LDC.

Realisation of investment in Waterfall Services Limited

The Board of Neptune-Calculus Income and Growth VCT plc (the “Company”) is pleased to announce the sale on 22 December 2014 of the Company’s investment in Waterfall Services Limited (“Waterfall”) to a company owned by the existing management team and backed by LDC.

The Company is receiving cash proceeds for its equity holding of approximately £1.9m resulting in a gain of approximately £1.3 million, equivalent to approximately 12p per share, compared with the carrying value of £568,387 disclosed in the Company’s half yearly report for the six months to 30 June 2014.

The Company originally paid £50,129 for the equity in Waterfall and £450,000 for preference shares and loan stock which were redeemed in 2011 and 2013 respectively.

This realisation results in total cash being received for equity, preference shares and loan stock (including dividends and interest) of approximately £2.6m by the Company over the life of the investment, representing 5.3 times the Company’s original investment of £0.5m. Neptune-Calculus Income and Growth VCT plc made the investment in Waterfall in 2007.

The directors are considering options for the use of the proceeds and more details will be given in the New Year.

Waterfall, headquartered in Warrington, is one of the UK’s leading independent mid-sized contract caterers operating through two very strong brands in Caterplus and Taylor Shaw. Caterplus services residential and care homes across the country, as well as welfare charities and shelters and it is regarded as the largest operator in the sector. Taylor Shaw operates in the education sector with contracts for state primary and secondary schools and colleges and a presence in B&I.