Half Yearly Report

RNS Number : 3395J

Marechale Capital PLC

17 December 2015

 

17 December 2015

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 2015.

Chairman's Statement

Marechale's gross profit of £192,000 (2014 £228,000) is lower than the comparable period last year and, as a result, I report that the Company has made a loss before tax of £48,000 (2014 £46,000 loss) during the first half of the year. On the other hand, I am pleased to report that overheads have been reduced by almost 10% from £277,000 (2014) to £251,000.

Marechale's usual business cycle has traditionally resulted in the bulk of its revenues being generated in the second half of the financial year, and it appears at this stage that this will be the case in the current year.

During the first half Marechale has been appointed to raise growth and development capital for a series of client transactions, and whilst the Company has had a good deal flow, a number of its deals have taken, or are taking, longer to complete; all completed transactions are detailed on the Company's website at www.marechalecapital.com.

Marechale operates as a corporate finance advisory and capital fund raising business focusing on 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. Northfield continues to have a challenging time as its first large scale solar project, whilst achieving the necessary Grid connection offer, was turned down in Planning, and the subsequent appeal has also failed, as announced on 6^th November.

Northfield's second scheme has achieved Planning permission and has an agreed Grid connection offer.  The project was supposed to be bid into the 2015 CfD auction, although it has recently been announced that there will be no solar subsidies in this year's auction. Solar has not been ruled out of other future auctions, and, because the scheme is not able to connect to the Grid until Q3/Q4 2017, there is a possibility that the site will receive the CfD. Also, whilst subsidy payments make a huge difference to the likely returns that this and Northfield's other projects, that are currently on hold, could achieve, there is potential value without them. Northfield is actively considering a number of other commercial opportunities, such as combining schemes with other renewable technologies that complement the solar projects and share in the costs, or selling to an EPC owner/operator who is looking to operate solar pv schemes without government support. Any such value would enhance Northfield's value, which would benefit Marechale and its shareholders as a result. We have again adjusted the value of Marechale's shareholding in Northfield on the Company's balance sheet to £146,000, to reflect the opportunity value and likely risks to this being achieved.

In addition, Marechale continues to work closely with its other renewable energy clients, and particularly with its anaerobic digestion EIS fund, which has recently installed and commissioned a 2MW AD plant in Norfolk. Marechale's client, Future Biogas Ltd, has now built or has in development a total of ten such plants in the UK, and is the UK's leading AD business.

In the Leisure and Retail sector, the Company has successfully completed a number of deals including raising additional EIS funding for Brewhouse & Kitchen, and acquiring a hotel in Majorca on behalf of one of its investor syndicates.

Marechale is a specialist adviser and funder to growth companies in the Leisure and Retail sector, and has successfully launched the Odexia Consumer Brand Fund, which invests in EIS qualifying food, drink and cosmetic growth brands. The first funding round has been completed and it hopes shortly to be able to announce its first investment in an exciting new ice cream brand.

We are taking steps to increase the Company's resources, and expect to announce a senior staff appointment in January 2016.

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; over the last five years investors in all Marechale's transactions would have achieved an IRR of over 20% per annum.

We will announce our full year's results in the summer of 2016.

Mark Warde-Norbury

Chairman

17 December 2015

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]

Consolidated Income Statement (unaudited)             

Six months ended 30 September 2015

					30 Sept	30 Sept
					2015	2014
					£	£
Revenue					297,275	244,500
Cost of sales					(105,493)	(16,464)
Gross profit					191,782	228,036
Administrative expenses					(251,041)	(276,978)
Operating profit/ (loss)					(59,259)	(48,942)
Investment revenues					-	-
Other gains					5,005	2,999
Exceptional gain on dilution of interest in associate					5,726	135,759
Net (loss) in respect of associate					630	(21,607)
Provision for project loss in associate					-	(114,000)
(Loss) before tax					(47,898)	(45,791)
Taxation					-	(152)
(Loss) for the period					(47,898)	(45,943)
(Loss) per share					(Pence)	(Pence)
	- Basic				(0.08)	(0.08)
	- Diluted				(0.08)	(0.08)

Consolidated Balance Sheet (unaudited)       

As at 30 September 2015

					30 Sept	30 Sept
					2015	2014
					£	£
Non current assets
Investment in associate					146,150	119,845
Current assets
Available for sale investments					150,917	113,921
Trading investments					128,254	77,125
Trade and other receivables					210,226	89,226
Cash and cash equivalents					359,346	264,355
					848,743	544,627
Total assets					994,893	664,472
Current liabilities
Trade and other payables					(193,696)	(57,568)
Total current liabilities					(193,696)	(57,568)
Net assets					801,196	606,904
Equity
Capital and reserves attributable to equity shareholders
Share capital					2,474,308	2,474,308
Share premium account					1,247,379	1,247,379
Revaluation reserve					88,885	51,889
Reserve for own shares					(50,254)	(50,254)
Retained losses					(2,968,196)	(3,116,418)
Reserve for share based payments					9,075	-
					801,196	606,904

Consolidated Cash Flow Statement

Six months ended 30 September 2015

					30 Sept	30 Sept
					2015	2014
					£	£
Net cash from operating activities
Operating (loss)					(59,259)	(48,942)
Provision for share based payments					-	-
Operating cash flows before movements in working capital					(59,259)	(48,942)
Movement in working capital
Decrease in receivables					280,882	131,777
(Decrease) in payables					(162,347)	(91,750)
					118,536	40,027
Operating cash flow					59,277	(8,915)
Investment activities
Interest receivable					-	-
Proceeds on disposal of trading investments					5,005	-
Proceeds on disposal of available for sale investments					-	2,999
Expenditure on available for sale investments					-	(4,997)
Cash flow from investing activities					64,282	(10,913)
Financing
Issue of share capital					-	-
Interest payable					-	-
Cash flow from financing activities					-	-
Net increase/(decrease) in cash and cash equivalents					64,282	(10,913)
Cash and cash equivalents at start of the period					295,064	275,268
Cash and cash equivalents at end of the period					359,346	264,355
Increase/(Decrease) in cash and cash equivalents					64,282	(10,913)

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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