Marechale Capital Plc - Half-yearly Results
02 December 2022
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 2022 (“the Period”).
Chairman’s Statement
Following the significant value uplift in the Company’s investments reported in Marechale’s full year results released in August 2022, the Board continues to remain positive about the outlook for its investments.
While 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, the market remains a challenging environment to raise capital. This has resulted in advisory projects 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 2022 the company generated gross profits of £72,020 (2021: £227,435) and delivered an operating loss of £18,995 (2021: Loss £15,000), resulting in an overall loss before tax of £179,502 (compared to a Profit for the same period in 2021 of £1,501,000 which benefitted from significant investment revenues).
As reported in August 2022, the Company’s balance sheet shows a net asset value of £3,483,929 (2021: £2,395,105), representing 3.66p of value per share in issue. The Company remains positive about the investments that it holds in its client companies. As at 31 October 2022 the Company had £246,808 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. 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 is working hard 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 Capital Mark Warde-Norbury / Patrick Booth-Clibborn |
Tel: +44 (0)20 7628 5582 |
| Cairn Financial Advisers LLP Jo Turner / Sandy Jamieson |
Tel: +44 (0)20 7213 0880 |
| Income Statement (unaudited) | |||||||||||
| 6 months ended 31 October | 2022 | 2021 | |||||||||
| £ | |||||||||||
| Revenue | 168,001 | 497,194 | |||||||||
| Cost of sales | (95,981) | (269,759) | |||||||||
| Gross profit | 72,020 | 227,435 | |||||||||
| Administrative expenses | (251,015) | (242,926) | |||||||||
| Operating loss | (178,995) | (15,491) | |||||||||
| Investment revenues | - | 1,517,036 | |||||||||
| Interest paid | (507) | (310) | |||||||||
| (Loss/profit before tax | (179,502) | 1,501,235 | |||||||||
| Taxation | - | - | |||||||||
| (Loss)/profit after tax | (179,502) | 1,501,235 | |||||||||
| (Loss)/profit per share | |||||||||||
| (Pence) | (Pence) | ||||||||||
| - Basic | (1.70) | 1.70 | |||||||||
| - Diluted | (1.63) | 1.65 | |||||||||
| Balance Sheet (unaudited) | |||||||
| As at | 31 October | 31 October | |||||
| 2022 | 2021 | ||||||
| Current assets | |||||||
| Available for sale investments | 3,116,441 | 1,982,566 | |||||
| Trading investments | 146,589 | 90,013 | |||||
| Trade and other receivables | 54,356 | 41,884 | |||||
| Cash and cash equivalents | 246,808 | 357,875 | |||||
| 3,564,194 | 2,472,338 | ||||||
| Current liabilities | |||||||
| Trade and other payables PAYE Bounce-back Loan |
(59,627) (10,638) (10,000) |
(56,950) (10,283) (10,000) |
|||||
| Total current liabilities | (80,265) | (77,233) | |||||
| Net current assets | 3,483,929 | 2,395,105 | |||||
| Bounce-back Loan – long-term | (27,500) | (37,500) | |||||
| Net assets | 3,456,429 | 2,357,605 | |||||
Equity |
|||||||
| Capital and reserves attributable to equity shareholders | |||||||
| Share capital Share premium |
763,023 328,413 |
707,690 181,247 |
|||||
| Reserve for own shares | (50,254) | (50,254) | |||||
| Retained profits/ (losses) | 2,346,660 | 1,465,594 | |||||
| Reserve for share based payments | 68,587 | 53,328 | |||||
| 3,456,429 | 2,357,605 | ||||||
| Cash Flow Statement (unaudited) | ||||||
| 6 months ended | 31 October | 31 October | ||||
| 20212 | 2021 | |||||
| £ | £ | |||||
| Net cash from operating activities | ||||||
| Loss/profit after tax | (179,502) | 1,501,235 | ||||
| Provision for share based payments Reverse unrealised gains on investments Reverse interest paid |
6,275 - 507 |
10,619 (1,517,036) 310 |
||||
| Operating cash flows before movements in working capital | (172,720) | (4,872) | ||||
| Movement in working capital | ||||||
| (Increase)/decrease in receivables | (10,580) | 8,713 | ||||
| Increase in payables | 12,895 | 6,018 | ||||
| Net movement in working capital | 2,315 | 14,731 | ||||
| Operating cash flow | (170,405) | 9,859 | ||||
| Investment activities | ||||||
| Expenditure on available for sale investments | - | (42,462) | ||||
| Proceeds from sale of investments | 8,750 | |||||
| Cash flow from investing activities | 8,750 | (42,462) | ||||
| Financing Share Capital Bounce-back Loan repayments Interest paid Net financing |
- (5,000) (507) (5,507) |
160,000 (2,500) (310) 157,190 |
||||
| Net (decrease)/ increase in cash and cash equivalents | (167,162) | 124,587 | ||||
| Cash and cash equivalents at start of the period | 413,970 | 233,287 | ||||
| Cash and cash equivalents at end of the period | 246,808 | 357,874 | ||||
| Increase in cash and cash equivalents | (167,162) | 124,587 | ||||
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.
