REG-Marechale Capital Plc: Half-year Report

Marechale CapitalAnnouncement

05/12/2023 07:15

5 December 2023

Marechale Capital plc

("Marechale Capital", “Marechale” or the "Company")

Half-yearly Results

Marechale Capital plc, an established City of London based corporate finance
house with a long-term track record and a strong reputation for advising and
financing high growth consumer brands, leisure, clean energy, mineral
extraction and technology companies, announces its unaudited half-yearly
results for the six months ended 31 October 2023 (the “Period”).

Chairman’s Statement

Following the announcement with Marechale’s full year results released in
August 2023, the market continues to remain challenging, particularly in the
hospitality sector. However, the Board remains positive about the outlook for
its investments.

Marechale Capital continues to see interesting corporate finance and advisory
projects where it can take founders shares and warrants as part of its
advisory fees. On a positive note, Marechale has completed transactions during
the period for the European telecommunications technology company, Fast2fibre,
Chestnut Group, the leading East Anglian Inn Group, and for Brewhouse &
Kitchen, the expanding gastro pub business. However, the market remains a
difficult environment in which to raise capital. This has resulted in some
advisory projects that launched in the summer not being completed by the end
of the Period. Marechale continues to look for new funding partners alongside
its traditional investor relationships.

During the six months ended 31 October 2023, the Company generated gross
profits of £93,813 (2022: £72,020) and delivered an operating loss of
£155,421 (2022: loss of £178,995), resulting in an overall loss before tax
of £155,803 (2022: loss of £179,502).

The Company’s balance sheet shows a net asset value of £3,340,486 (2022:
£3,456,430), representing 3.15p (2022: 3.62p) of value per share in issue.
The Company remains positive about the investments that it holds in its client
companies. As at 31 October 2023 the Company had £400,000 of cash reserves.

The Board is working on a number of initiatives to create further value for
shareholders over and above its core investment portfolio and corporate
finance projects, including working with Chris Kenning, following his
strategic investment of 9.9% of the Company announced in June 2023. The plan
is to digitise Marechale’s activities and continue to develop strategic
partnerships with the objective of enhancing shareholder value.

Marechale also uses its balance sheet to co-invest in its client companies,
along with warrants and founder equity. Furthermore, the Board is hopeful to
be able to announce realisations on some of the Company’s investments in the
next six months

Whist the current economic climate is difficult, Marechale Capital remains
diligent and is convinced that there will be good advisory and investment
opportunities in its core hospitality, renewable, clean energy and technology
sectors over the short to medium term.

Mark Warde-Norbury

Chairman

The information communicated in this announcement contains inside information
for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014

For further information please contact:

 Marechale CapitalMark Warde-Norbury / Patrick Booth-Clibborn  Tel: +44 (0)20 7628 5582  
 Cairn Financial Advisers LLPJo Turner / Sandy Jamieson        Tel: +44 (0)20 7213 0880  

 Income Statement (unaudited)                                                                          
                                                                                                       
 6 months ended 31 October                                        2023             2022                
                                                                  £                                    
 Revenue                                                          320,603          168,001             
 Cost of sales                                                    (226,790)        (95,981)            
                                                                                                       
 Gross profit                                                     93,813           72,020              
                                                                                                       
 Administrative expenses                                          (249,235)        (251,015)           
                                                                                                       
 Operating loss                                                   (155,421)        (178,995)           
                                                                                                       
 Interest paid                                                    (382)            (507)               
                                                                                                       
 (Loss/profit before tax                                          (155,803)        (179,502)           
 Taxation                                                         -                -                   
                                                                                                       
 (Loss)/profit after tax                                          (155,803)        (179,502)           
                                                                                                       
 (Loss)/profit per share                                                                               
                                                                  (Pence)          (Pence)             
                            - Basic                               (0.15)           (0.19)              
                            - Diluted                             (0.14)           (0.19)              
                                                                                                       
                                                                                                       

 Balance Sheet (unaudited)                                                                                                                                           
                                                                                                                                                                     
 As at                                                                                                      31 October                 31 October                    
                                                                                                            2023                       2022                          
 Current assets                                                                                                                                                      
 Available for sale investments                                                                             2,863,227                  3,116,441                     
 Trading investments                                                                                        130,076                    146,589                       
 Trade and other receivables                                                                                37,219                     54,356                        
 Cash and cash equivalents                                                                                  398,229                    246,808                       
                                                                                                            3,428,751                  3,564,194                     
                                                                                                                                                                     
 Current liabilities                                                                                                                                                 
 Trade and other payables PAYE Bounce-back Loan                                                             (51,278) (9,487) (10,000)  (59,627) (10,638) (10,000)    
                                                                                                                                                                     
 Total current liabilities                                                                                  (70,765)                   (80,265)                      
                                                                                                                                                                     
 Net current assets                                                                                         3,357,986                  3,483,929                     
                                                                                                                                                                     
 Bounce-back Loan – long-term                                                                               (17,500)                   (27,500)                      
                                                                                                                                                                     
 Net assets                                                                                                 3,340,486                  3,456,429                     
 Equity                                                                                                                                                              
 Capital and reserves attributable to equity shareholders                                                                                                            
 Share capital Share premium                                                                                847,530 481,290            763,023 328,413               
 Reserve for own shares                                                                                     (50,254)                   (50,254)                      
 Retained profits/ (losses)                                                                                 1,944,842                  2,346,660                     
 Reserve for share based payments                                                                           117,078                    68,587                        
                                                                                                            3,340,486                  3,456,429                     
                                                                                                                                                                     
                                                                                                                                                                     
                                                                                                                                                                     

 Cash Flow Statement (unaudited)                                                                                                                                                                  
 6 months ended                                                                                                                         31 October                     31 October                 
                                                                                                                                        2023                           2022                       
                                                                                                                                        £                              £                          
 Net cash from operating activities                                                                                                                                                               
 Loss after tax                                                                                                                         (155,803)                      (179,502)                  
 Provision for share based payments Reverse interest paid                                                                               33,091 381                     6,275 507                  
                                                                                                                                                                                                  
 Operating cash flows before movements in working capital                                                                               (122,331)                      (172,720)                  
                                                                                                                                                                                                  
 Movement in working capital                                                                                                                                                                      
 Decrease/ (increase) in receivables                                                                                                    38,714                         (10,580)                   
 (Decrease)/ Increase in payables                                                                                                       (30,795)                       12,895                     
                                                                                                                                                                                                  
 Net movement in working capital                                                                                                        7,919                          2,315                      
                                                                                                                                                                                                  
 Operating cash out-flow                                                                                                                (114,412)                      (170,405)                  
                                                                                                                                                                                                  
 Investment activities                                                                                                                                                                            
 Expenditure on available for sale investments                                                                                          (572)                          -                          
 Proceeds from sale of investments                                                                                                      -                              8,750                      
                                                                                                                                                                                                  
 Cash flow from investing activities                                                                                                    (572)                          8,750                      
                                                                                                                                                                                                  
 Financing Share Capital Bounce-back Loan repayments Interest paid Net financing                                                        235,800 (5,000) (381) 230,419  - (5,000) (507) (5,507)    
 Net increase/ (decrease) in cash and cash equivalents                                                                                  115,435                        (167,162)                  
                                                                                                                                                                                                  
 Cash and cash equivalents at start of the period                                                                                       282,794                        413,970                    
 Cash and cash equivalents at end of the period                                                                                         398,229                        246,808                    
                                                                                                                                                                                                  
 Increase/ (decrease) in cash and cash equivalents                                                                                      115,435                        (167,162)                  

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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