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 6th 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: +44 (0)20 7628 5582
Smith & Williamson Corporate Finance Azhic Basirov / David Jones
Tel: +44 (0)20 7131 4000
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.
This information is provided by RNS
The company news service from the London Stock Exchange
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