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Company Marechale Capital PLC
TIDM MAC
Headline Final Results
Released 11:35 21-Aug-2018
Number 4454Y11

RNS Number : 4454Y
Marechale Capital PLC
21 August 2018
 

21 August 2018

 

Marechale Capital plc

("Marechale" or the "Company")

 

Consolidated Financial Statements for the year ended 30 April 2018

 

Marechale is pleased to announce its final results for the year ended 30 April 2018.

 

Chairman's Statement

 

Marechale Capital's revenues for the year of £675,000 (2017, 13 months, £1,047,000) are significantly down on last year resulting in a lower gross profit of £595,000 (2017 £779,000). The drop in revenues can be partially explained by a delay in closing a number of projects but is more a reflection of the wider market where investor appetite is subdued and transactions are generally taking longer to complete.

 

However, administrative expenses have also reduced to £611,000 (2017, 13 months, £845,000), which reflects necessary cost reductions. The net effect is an operating loss of £17,000 (2017: £66,000 loss).

 

Investments in two client companies have had to be written down resulting in losses of £118,500 (compared to gains of £65,000 in 2017). 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 IAS39.

 

The 12 month figures include a £59,600 write down (2017: £77,200 write down) 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 for the year before tax of £198,000 (2017 Loss of £78,000).

 

The balance sheet value has reduced during the year to £465,000 (2017 £761,000) which is 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, with the cumulative write down reflecting potential project losses and which now represents the proportion of readily realisable assets, i.e. cash, that the Company's shareholding represents. As previously announced it has been a challenging time for Northfield owing to the changes in the renewable energy fiscal regime and the impracticalities at the present time of integrating new renewable schemes into the UK's traditional energy infrastructure. There is now just the one solar site for which planning permission has been granted, and it is unlikely that it will be possible to realise value for shareholders from this site.

 

The Company successfully completed a number of leisure deals for clients during the year, including the acquisition of the Burgh Island Hotel for a syndicate of investors. Funding has also been raised for existing clients including the Odexia Consumer Brand EIS Fund, the East Anglia based luxury inn group Chestnut Inns, and leading biogas operator Future Biogas. Growth capital funding was completed for national brewpub business Brewhouse & Kitchen, drinks brand Coldpress and the Norwegian distillery OHD. Additionally, the Company has conducted advisory work for a wide range of consumer brand, hospitality and renewable energy businesses. Further information is available on the Marechale website.

 

Since the year end the Company has been pleased to announce the sale of two of its investee renewable projects, both generating strong returns for its investor group. The first, Egmere and Grange Park anaerobic digestion plants operated by Future Biogas, sold to John Lang Environmental Assets Group generating a returns (including tax relief)  of 2.0x and 2.2x respectively, and the second, the successful sale of West Country Renewables to Community Power Cornwall, generated a return of 2.0x (including tax relief) for its investors. Marechale was also pleased to have advised on the sale of The Inn Collection Group to Alchemy Partners which generated a multiple return for investors.

 

Despite these completed projects, it has been a disappointing financial year for the Company and the Board of Marechale Capital continue to consider its future strategy.

 

 

PP Mark Warde-Norbury

Chairman

 

Jeremy Stephenson

Director

 

21 August 2018

 

 

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




Year ended 30 April 2018









Year ended

13 Months to






30-Apr

30-Apr





Notes

2018

2017






(£)

(£)

Continuing operations












Revenue




3

674,756

1,046,895

Cost of sales




(79,721)

(267,511)








Gross profit




595,035

779,384








Administrative expenses


4

(611,813)

(845,473)








Operating (loss)




(16,778)

(66,089)








Finance (Expense)/Income




(21)

389

Other (losses)/gains




(118,500)

65,088

Net(loss)/Profit in respect of associate



(3,549)

112

(Provision for) project loss in associate


(59,600)

(77,200)








(Loss) before tax




(198,448)

(77,700)








Taxation





-

 -








(Loss) for the year on continuing operations


(198,448)

(77,700)















(Loss) per share



5

(Pence)

(Pence)








Basic

- Continuing operations



            (0.34)

               (0.13)


- Diluted




            (0.34)

               (0.11)

 

Consolidated Statement of Comprehensive Income










(Loss) for the year



(198,448)

(77,700)








Other comprehensive income












Revaluation of investments



(12,500)

-













(12,500)

-

Total recognised comprehensive income/ (loss)




(all attributable to owners of the parent)


(210,948)

(77,700)



 

Consolidated Balance Sheet



Year ended 30 April 2018















Year ended

13 Months to






30-Apr

30-Apr






2018

2017





Notes

(£)

(£)

Non current assets






Investment in associate




14,038

77,187















Current assets






Available for sale investments



174,619

165,839

Trading investments




78,388

196,888

Trade and other receivables



201,174

221,676

Cash and cash equivalents



118,340

302,375













572,521

886,778

Total assets




586,558

963,966








Current liabilities






Trade and other payables



(121,344)

(203,350)








Total current liabilities



(121,344)

(203,350)








Net assets





465,215

760,615








Equity







Capital and reserves attributable to equity shareholders











Share capital



6

461,449

2,474,308

Share premium account




-

1,247,379

Revaluation reserve




81,826

94,326

Reserve for own shares




(50,254)

(50,254)

Retained losses




(27,806)

(3,005,144)













465,215

760,615

 



 

Statement of Changes in Equity





Year ended 30 April 2018








Share capital

Share premium

Revaluation reserve

Reserve for own shares

Retained earnings



(£)

 

(£)

 

(£)

 

(£)

 

(£)

 

Balance at 31 March 2016

2,474,308

1,247,379

94,326

(50,254)

(2,968,154)









Reserve for share based payments

-

-

-

-

40,710

Transactions with owners

-

-

-

-

34,670









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)









Capital reorganisation


(2,012,859)

(1,247,379)

-

-

3,260,238

Reserve for share based payments

-

-

-

-

(84,453)

Transactions with owners

(2,012,859)

(1,247,379)

-

-

3,175,786









Total comprehensive income






Loss for the financial year

-

-

-

-

(198,448)

Revaluation during the financial year

-

-

(12,500)

-

-

Total comprehensive income

-

-

(12,500)

-

(198,448)









Balance at 30 April 2018

461,449

-

81,826

(50,254)

(27,806)









 



 

Consolidated Cash Flow Statement


Year ended

13 Months to

Year ended 30 April 2018


30-Apr

31-Mar






2018

2017






(£)

(£)

Net cash from operating activities





Loss before tax



(198,448)

(77,700)

(Reversal of)/provision for share based payments



(84,453)

40,710

Reverse unrealised losses/(gains) on trading investments



118,500

(65,088)

Reverse loss/(gain) in Associate Company



3,549

(112)

Reverse provision for losses in Associate Company



59,600

77,200

Reverse net interest expense/(income)



21

(389)








Operating cash flows before movements in working capital


(101,231)

(25,379)








Movement in working capital





Decrease in receivables



20,502

296,901

Decrease in payables



(81,914)

(180,026)

Tax paid





(93)

-













(61,504)

116,875

Operating cash flow




(162,735)

91,496








Investment activities






Interest receivable




113

389

Expenditure on available for sale investments


(21,280)

-








Cash flow from investing activities



(21,167)

389








Financing







Interest payable





134

-








Cash flow from financing activities


134

 -








Net (decrease)/ increase in cash and cash equivalents

(184,036)

91,885








Cash and cash equivalents at start of the financial year


302,375

210,490

Cash and cash equivalents at end of the financial year


118,340

302,375








(Decrease)/ increase in cash and cash equivalents


(184,036)

91,885

 



 

Notes to the financial statements

Year ended 30 April 2018

 

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

 

a. Going concern

In establishing the applicability of the going concern basis, the Directors have made enquiries as to the financial resources of the Group. The Directors consider that the Group has adequate resources to continue operations for the foreseeable future and will therefore continue to adopt the going concern basis in the preparation of the financial statements. The Company does not benefit from reliable repetitive income, and instead relies on deal-driven transactions whose timing is very difficult to predict accurately. Whilst the Directors are confident that they will generate enough income on an annual basis in order to continue as a going concern, they have 'alternative strategies' in place with creditors, should the need arise to overcome any potential short-term cash flow shortage.  The Directors are also confident that they could raise sufficient funds through the issue of further equity in the market should the need arise. Accordingly, the Directors have determined to prepare the Accounts on a Going Concern basis.

 

b. Basis of accounting

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.

 






2018

2017






(£)

(£)








Broking commissions and fees earned from corporate finance

674,756

1,046,895

 

4. Administrative expenses

 






2018

2017






(£)

(£)











Administrative expenses

671,266

724,764

Profit share

25,000

80,000

Share based payments

(84,453)

40,709






611,813

845,473

 

5. Earnings per share

 






Earnings

Earnings






(£)

(£)








Based on a (loss) of



(198,448)

(77,700)













No. shares

No. shares

Weighted average number of Ordinary Shares in issue for the purpose of basic earnings per share


57,681,151

57,681,151








Weighted average number of Ordinary Shares in issue for the purpose of diluted earnings per share


57,681,151

69,073,178




 

6. Share capital

 

Shares




Ordinary

Deferred

Issued





shares

shares

share



(number)

(number)

capital

Issued at 30 April 2017:





(£)

  Ordinary shares of 1p

57,681,151

-

576,812

  Deferred shares of 1p

-

189,749,640

1,897,496


57,681,151

189,749.640

2,474,308

Effect of Capital Reorganisation 28 June 2017:




  Reduction in nominal value/share of 0.2p

-

-

(115,363)

  Cancellation of Deferred shares

-

(189,749,640)

(1,897,496)





Issued at 30 April 2018, Ordinary shares of 0.8p

57,681,151

-

461,449

 

Options (number/weighted average exercise price ('WAEP'))


Options

(number)

WAEP

 

Outstanding at 1 April 2016

10,382,607

2.55p

Granted during the period

1,730,435

2.75p

Outstanding and exercisable at 30 April 2017

12,113,042

2.58p

Forfeited within the period

(12,113,042)

(2.58)p

Outstanding and exercisable at 30 April 2018

-

-

 

The options forfeited in 2018 generated a credit of £84,453 (2017: £40,709 cost).

 

7. Other matters and Market Abuse Regulation (MAR) Disclosure

 

The financial information for the year ended 30 April 2018 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 2018 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 news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
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