Interim Results

RNS Number : 5307Z

Marechale Capital PLC

11 December 2014

 



11 December 2014

Marechale Capital plc

("Marechale" or the "Company")

Interim Results

Marechale Capital plc today announces its unaudited interim results for the six months ended 30 September 2014.

Chairman's Statement

Marechale has made progress in a number of areas of its business in the first six months of the current year. However, the gross profit of £228,036 (2013 £266,183) is lower than the comparable period last year and, as a result, I report that the Company has made a loss of £45,791 (2013 profit £18,915) during the first half of the year.

Progress achieved includes Marechale recording the highest number of simultaneously engaged mandates, where it has been appointed to raise growth and development capital for a series of client companies.

Transactions are all detailed on the Company's website at: www.marechalecapital.com.

Marechale operates as a corporate finance advisory and capital fund raising business focusing on fundraising for growth companies in two primary sectors in which the team have a long term track record; Leisure and Retail, and Renewable Energy.

Marechale helps management teams to finance or refinance in two key areas of activity; Growth Capital private equity transactions for more established businesses, and Development Capital, fundraising for smaller growth companies, the latter typically being Enterprise Investment Scheme (EIS) qualifying.

Marechale's joint venture renewable energy company, Northfield UK Solar Limited (Northfield), established in July 2013, is developing a portfolio of solar sites; it has had a disappointing few months as its first large scale solar project, whilst achieving the necessary Grid connection offer, was turned down in Planning, although an appeal is planned. In addition to the large scale solar sites in the UK, on which it has option agreements, Northfield is also diversifying its activities, with some smaller renewable projects, in order to reduce risk. Notwithstanding the closing of a second round of funding in the period under review at a higher implied valuation, we have continued to carry our investment at Northfield at £120,000. Northfield's future value is dependent on its sites securing planning permission and then being either developed or sold. It is true to say that it is becoming increasingly difficult to do this owing to the decreasing political support for such solar PV schemes and uncertainty over current CFD pricing.

In addition, Marechale continues to work closely with its anaerobic digestion EIS fund, which has now installed a 2MW AD plant in Norfolk. Marechale's client, Future Biogas Ltd, has now built five such plants in the UK, with a further three in development.

In the Leisure sector,  the Company has successfully completed a number of leisure deals, including raising a final tranche of funding prior to the planned IPO of Heartstone Inns, achieving a strategic institutional investment for Salt Yard Group and additional EIS funding for Brewhouse & Kitchen , further endorsing Marechale's leading position in funding businesses in the leisure sector.

Marechale is widely acknowledged to be one of the leading advisers and funders to growth companies in the Leisure and Retail sector and I am pleased to report that the Company has recently launched its second fund, the Odexia Consumer Brand Fund, which will invest in EIS qualifying food, drink and cosmetics growth brands.

Whilst there is also a healthy pipeline of new business that is being generated, completing deals is challenging and taking more time than we would expect, and we are taking steps to increase the Company's resource to process this pipeline, including recruiting additional staff.

The Directors believe that backing the right growth companies, whilst not without its risks, represents an interesting private equity investment class for investors looking to diversify their portfolios.

We will announce our full year's results in the summer of 2015.

Mark Warde-Norbury

Chairman

11 December 2014

For further information please contact:

Marechale Capital Mark Warde-Norbury / Patrick Booth-Clibborn	Tel: [phone]
Smith & Williamson Corporate Finance Azhic Basirov / David Jones	Tel: [phone]

Marechale Capital plc
Consolidated Income Statement (unaudited)
Six months ended 30 September 2014
			30 Sept	30 Sept
			2014	2013
			£	£
Revenue			244,500	433,924
Cost of sales			(16,464)	(167,741)
Gross profit			228,036	266,183
Administrative expenses			(276,978)	(260,711)
Operating (loss)/ profit			(48,942)	5,472
Investment revenues			-	1,735
Other gains and losses Exceptional gain on dilution of interest in associate Net loss in respect of associate Provision for project loss in associate			2,999       135,759 (21,607) (114,000)	11,708 - - -
(Loss)/ profit before tax			(45,791)	18,915
Corporation tax charge			-	-
(Loss)/ profit for the period			(45,791)	18,915
(Loss)/earnings per share (Basic and diluted) 57,681,151 shares (2013:57,681,151)			(0.08)p	0.04p

Consolidated Balance Sheet (unaudited)
As at 30 September 2014
		30 Sept	30 Sept
		2014	2013
		£	£
Non current assets
Investment in associate		119,845	-
Current assets
Available for sale investments		113,921	124,384
Trading investments		77,125	67,555
Trade and other receivables		89,226	214,306
Cash and cash equivalents		264,355	238,784
Total current assets		544,627	645,029
Total assets		664,472	645,029
Current liabilities
Trade and other payables		(57,568)	(65,435)
Corporation tax		-	-
Total current liabilities		(57,568)	(65,435)
Net assets		606,904	579,594
Equity
Share capital		2,474,308	2,474,308
Share premium account		1,247,379	1,247,379
Revaluation reserves		51,889	39,635
Other reserves		(50,254)	(50,254)
Retained earnings		(3,116,418)	(3,131,474)
Total equity		606,904	579,594

Consolidated Cash Flow Statement (unaudited)
Six months ended 30 September 2014
				30 Sept	30 Sept
				2014	2013
				£	£
Net cash from operating activities
Operating (loss)/ profit				(48,942)	5,473
Operating cash flows before movements in working capital				(48,942)	5,473
Movement in working capital
Decrease/ (increase) in receivables				131,777	(21,742)
(Decrease) in payables				(91,750)	(20,607)
				(40,028)	(42,349)
Operating cash flow				(8,914)	(36,876)
Investment activities
Interest receivable				-	1,734
Proceeds on disposal of trading investments				-	-
Proceeds on disposal of available for sale investments				2,999	11,708
Expenditure on trading investments				(4,997)	-
Cash flow from investing activities				(1,998)	13,442
Net decrease) in cash and cash equivalents				(10,913)	(23,434)
Cash and cash equivalents at start of period				275,268	262,218
Cash and cash equivalents at end of period				264,355	238,784
(Decrease)/ increase in cash and cash equivalents				(10,913)	(23,434)

This financial information has been prepared in accordance with IFRS and International Financial Reporting Interpretations Committee ('IFRIC') interpretations adopted by the European Union, and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, with the prior period being reported on the same basis.

 

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