REG - Marechale Capital - Final Results <Origin Href="QuoteRef">MACT.L</Origin>

Marechale CapitalAnnouncement

27/07/2017 07:06

RNS Number : 2023M
Marechale Capital PLC
27 July 2017
27 July 2017
Marechale Capital plc
("Marechale" or the "Company")
Consolidated Financial Statements for the 13 month period ended 30 April 2017
Marechale is pleased to announce its final results for the 13 month period ended 30 April 2017.
Chairman's Statement
Marechale Capital's revenues for the 13 months of 1,047,000 (2016, 12 months, 742,000) are up 39% on last year resulting in a gross profit of 779,000 (2016 446,000). However, administrative expenses have also risen to 845,000 (2016, 12 months, 571,000), which reflects higher staff costs. 
As previously announced, the Company has strengthened the management team and in particular the ability to undertake and complete transactions, by appointing an additional executive Director.
Investments in client companies resulted in gains of 65,000 (2016 19,000). Equity investments and Warrants are valued at 'fair value', typically at a price that reflects their last funding round, and underlying movement in fair value is reflected through the Profit and Loss Account in accordance with IFRS9.
The 13 month figures also reflect a 77,000 downgrade in the valuation that we are attributing to the Company's 25% shareholding in Northfield UK Solar Limited ("Northfield"), which is explained in more detail below.
The net effect is a loss before tax of 78,000 (2016 Loss of 91,000) for the 13 month period.
The balance sheet value has reduced this period to 761,000 (2016 798,000) more fully explained in the Statement of Changes in Equity.
The Company's investment in Northfield is accounted for using the 'Equity Method' as an Associated Company, and shows a 50% reduction in valuation of 77,000 to 77,000 to reflect potential project loss. As previously announced it has been a challenging time for Northfield as the Government has changed the renewable energy support regime. There is now just the one solar site for which planning permission has been granted, and there is an active sales process that aims to realise value for shareholders. 
The Company successfully completed a number of leisure deals during the year. Further EIS funding has been raised for Odexia Consumer Brand EIS Fund, the East Anglia based luxury inn group Chestnut Inns, and cold pressed juice brand Coldpress. Growth capital funding was also completed for national brewpub business Brewhouse & Kitchen and Marechale Capital completed a significant refinancing for the Thai tapas restaurants group Koh. The Company has also conducted advisory work for a wide range of consumer brand, hospitality and renewable energy businesses. 
Marechale Capital continues to grow its Odexia Consumer Brand Fund, which invests in EIS qualifying food, drink and cosmetic growth brands; the Fund has now completed four investments, most recently in the chilled juice brand, Coldpress and the fragrance brand, Connock.
Finally, I am pleased to report that the Company's Capital Reorganisation, which was approved by shareholders in September 2016, has received Court Approval on 28 June 2017, the effect of which is shown in Note 5.
Mark Warde-Norbury
Chairman
26 July 2017
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



13 month period ended 30 April 2017








13 Months to
Year ended





30-Apr
31-Mar




Notes
2017
2016





()
()







Continuing operations











Revenue



3
1,046,895
741,680
Cost of sales



(267,511)
(295,512)







Gross profit



779,384
446,168







Administrative expenses


(845,473)
(570,972)







Operating (loss)



(66,089)
(124,804)







Finance Income



389
-
Other gains 



65,088
19,231
Exceptional gain on dilution of interest in associate

-
5,726
Net loss in respect of associate


112
(106,245)
(Provision for)/ release of project loss in associate

(77,200)
115,000







(Loss) before tax



(77,700)
(91,092)







Taxation




-
- 







(Loss) for the year on continuing operations

(77,700)
(91,092)














(Loss) per share



(Pence)
(Pence)







Basic
- Continuing operations

4
 (0.13)
 (0.16)

- Diluted


4
 (0.11)
 (0.14)
Consolidated Statement of Comprehensive Income









(Loss) for the year


(77,700)
(91,092)







Other comprehensive income











Revaluation of investments


-
4,191












-
4,191
Total recognised comprehensive income/ (loss)



(all attributable to owners of the parent)

(77,700)
(86,901)
Consolidated Balance Sheet


13 month period ended 30 April 2017














13 Months to
Year ended





30-Apr
31-Mar





2017
2016




Notes
()
()
Non current assets





Investment in associate



77,187
154,275














Current assets





Available for sale investments


165,839
165,839
Trading investments



196,888
131,800
Trade and other receivables


221,676
518,577
Cash and cash equivalents


302,375
210,490












886,778
1,026,706
Total assets



963,966
1,180,981







Current liabilities





Trade and other payables


(203,350)
(383,376)







Total current liabilities


(203,350)
(383,376)







Net assets




760,615
797,605














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



94,326
94,326
Reserve for own shares



(50,254)
(50,254)
Retained losses



(3,005,144)
(2,968,154)












760,615
797,605
These financial statements were approved by the Board of Directors and authorized for issue on 26 July 2017. They were signed on its behalf by:
Mark Warde-Norbury
Chairman
Statement of Changes in Equity




13 month period ended 30 April 2017







Share capital
Share premium
Revaluation reserve
Reserve for own shares
Retained earnings
Consolidated

()
()
()
()
()
Balance at 31 March 2015
2,474,308
1,247,379
90,135
(50,254)
(2,911,732)








Issue of ordinary share capital
-
-
-
-
-
Reserve for share based payments
-
-
-
-
34,670
Transactions with owners
-
-
-
-
34,670








Total comprehensive income





Loss for the financial year
-
-
-
-
(91,092)
Revaluation during the financial year
-
-
4,191
-
-
Total comprehensive income
-
-
4,191
-
(91,092)








Balance at 31 March 2016
2,474,308
1,247,379
94,326
(50,254)
(2,968,154)








Capital reorganisation

-
-
-
-

Reserve for share based payments
-
-
-
-
40,710
Transactions with owners
-
-
-
-
40,710








Total comprehensive income





Loss for the financial period
-
-
-
-
(77,700)
Revaluation during the financial period
-
-
-
-
-
Total comprehensive income
-
-
-
-
(77,700)








Balance at 30 April 2017
2,474,308
1,247,379
94,326
(50,254)
(3,005,144)








Company







Balance at 31 March 2015
2,474,308
1,247,379
90,135
(50,254)
(3,051,018)








Issue of ordinary share capital
-
-
-
-
-
Reserve for share based payments
-
-
-
-
34,670
Transactions with owners
-
-
-
-
34,670








Total comprehensive income





Loss for the financial year
-
-
-
-
(105,573)
Revaluation during the financial year
-
-
4,191
-
-
Total comprehensive income
-
-
4,191
-
(105,573)








Balance at 31st March 2016
2,474,308
1,247,379
94,326
(50,254)
(3,121,921)








Capital reorganisation

-
-
-
-

Reserve for share based payments
-
-
-
-
40,710
Transactions with owners
-
-
-
-
40,710








Total comprehensive income





Loss for the financial period
-
-
-
-
(611)
Revaluation during the financial period
-
-
-
-
-
Total comprehensive income
-
-
-
-
(611)








Balance at 30 April 2017
2,474,308
1,247,379
94,326
(50,254)
(3,081,823)












Group
Group
Company
Company
Retained losses consist of:

2017
2016
2017
2016




()
()
()
()








Retained profits/ (losses)

(3,089,598)
(3,011,899)
(3,166,278)
(3,165,667)
Reserve for share based payments

84,454
43,745
84,455
43,746












(3,005,144)
(2,968,154)
(3,081,823)
(3,121,921)








Consolidated Cash Flow Statement

13 Months to
Year ended
13 month period ended 30 April 2017

30-Apr
31-Mar





2017
2016





()
()
Net cash from operating activities




Continuing operations:
Operating (loss)

(66,089)
(124,804)
Provision for share based payments


40,710
34,670







Operating cash flows before movements in working capital

(25,379)
(90,134)







Movement in working capital




Decrease/ (increase) in receivables


296,901
(27,469)
(Decrease)/ increase in payables


(180,026)
27,333
Tax refund




-
-












116,875
(136)
Operating cash flow



91,496
(90,270)







Investment activities





Interest receivable



389
-
Proceeds on disposal of trading investments

-
15,685
Proceeds on disposal of available for sale investments

-
-
Expenditure on available for sale investments

-
(9,989)







Cash flow from investing activities


389
5,696







Financing






Issue of share capital



- 
- 







Cash flow from financing activities

- 
- 







Net increase/ (decrease) in cash and cash equivalents
91,885
(84,574)







Cash and cash equivalents at start of the financial year

210,490
295,064
Cash and cash equivalents at end of the financial year

302,375
210,490







Increase/ (decrease) in cash and cash equivalents

91,885
(84,574)
Notes to the financial statements
13 month period ended 30 April 2017
1. General information 
 
Marechale Capital PLC is a company registered in England and Wales under the Companies Act 2006. The Group's principal activities are the provision of advice and broking services to companies. The financial statements are presented in pounds sterling, the currency of the primary economic environment in which the Group operates. 
 
The Group's registered office and principal place of business is 46 New Broad Street, London, EC2M 1JH. The Company's registered number is 03515836. 
2. Basis of preparation 
 
These financial statements have been prepared in accordance with International Financial Reporting Standards ('IFRS') as adopted by the European Union, IFRS Interpretations Committee ('IFRS IC') interpretations and the Companies Act 2006 applicable to companies reporting under IFRS. 
The financial statements have been prepared on the historical cost basis as modified by the valuation of certain financial instruments.  
3. Business and geographical segments
The directors consider that there is only one activity undertaken by the Group, that of corporate finance advisory. All of this activity was undertaken in the United Kingdom. 





2017
2016





()
()







Broking commissions and fees earned from corporate finance 
1,046,895
741,680







 
 
4. Earnings per share





Earnings
Earnings





()
()







Based on a (loss) of


(77,700)
(91,092)












No. shares
No. shares
Weighted average number of Ordinary Shares in issue

57,681,151
57,681,151
for the purpose of basic earnings per share










Weighted average number of Ordinary Shares in issue

69,073,178
63,737,672
for the purpose of diluted earnings per share 


5. Capital Reorganisation
On 28 June 2017, the High Court of Justice, Chancery Division, Companies Court, approved a capital reorganisation: 
 
1. Cancellation of 0.2p per share of the ordinary shares, previously of 1p nominal value 
2. Cancellation of the Deferred Shares 
3. Cancellation of the Share Premium Account
The effect of the above on the 30 April 2017 Company Balance Sheet is shown below 




At 30
Capital Re-
Post Capital




April 2017
organisation
Reorganisation







Equity






Capital and reserves attributable to equity shareholders










Share capital

Order #1 and #2
2,474,308
(2,012,859)
461,449
Share premium account

Order #3
1,247,379
(1,247,379)
-
Revaluation reserve


94,326
-
94,326
Reserve for own shares


(50,254)
-
(50,254)
Reserve for own share based payments
84,455
-
84,455
Retained losses


(3,166,278)
3,260,238
93,960











683,936
-
683,936
 
6. Other matters and Market Abuse Regulation (MAR) Disclosure
The financial information for the year ended 30 April 2017 set out in this announcement does not constitute statutory financial statement, as defined in section 434 of the Companies Act 2006, but is based on the statutory financial statements for the year then ended. Those financial statements, upon which the auditors have issued an unqualified opinion, will be delivered to the Registrar of Companies.
Copies of the Company's full audited Annual Report and Financial Statements for the year ended 30 April 2017 will be sent to shareholders in due course and will be available on the Company's website: www.marechalecapital.com.
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

This information is provided by RNS
The company news service from the London Stock Exchange
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