Half Yearly Report

RNS Number : 4158T

Marechale Capital PLC

13 December 2012

 



13 December 2012

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 2012.

Chairman's Statement

Similar to last year, we report an Interim loss, albeit higher than budget. The first six months of the current year have been challenging because, whilst Marechale has a steadily increasing number of growing businesses and funds as clients that it advises and acts for, the economic sentiment generally, and uncertainty in the equity markets in particular, has made fundraising difficult with projects taking longer to complete.

Marechale's revenues are often unevenly spread on a month to month basis, and, as in previous years, revenue is expected to be heavily weighted to the second half of the financial year from September to the end of March. Therefore, reporting a half year loss is not to be unexpected at this point in the year.

However, I am able to report that the Company has successfully completed a number of transactions and we also have a healthy pipeline of projects; more details about these projects are available on our website: www.marechalecapital.com.

Marechale operates as a corporate finance advisory and capital fund raising business focusing on fundraising for growth companies and funds in three sectors in which the team have a long term track record: Leisure and Retail, Renewable Energy and Online Exchanges.

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.  As part of Marechale's success fee, the Company secures warrants or equity on most of its projects, so shareholders have the opportunity to share in the potential significant upside of the equity value in these businesses. We continue to build these investments in many of our advisory clients which the Board expect to grow in value over the next 2-3 years.

Whilst market conditions are still challenging, and we remain cautious about the immediate outlook, there is a good pipeline of businesses seeking funding.  Deal flow is picking up in December and, at fourteen clients, we have our highest number of engaged corporate finance projects to date.  This includes launching a new £30m Renewable Energy EIS Fund, the first fund to which Marechale is acting as on-going investment adviser, and two other new EIS and VCT fund launches in the Leisure and Social Impact sectors. There is an appetite amongst our investor relationships to invest in high quality investment opportunities and this gives us confidence in the second half of the year.

Marechale has a number of Associates who are specialists in particular sectors, with whom we work on specific transactions under a fee sharing arrangement; some of these Associates have indicated that they wish to purchase shares in the Company, and we plan to issue new shares to some of these people following the announcement of these Interims.

We hope to give you a more positive update on Marechale after the March 2013 year end.

Mark Warde-Norbury

Chairman

13 December 2012

For further information please contact:

Marechale Capital Mark Warde-Norbury / Patrick Booth-Clibborn	Tel: [phone]
Smith & Williamson Corporate Finance Azhic Basirov / David Jones	Tel: [phone]

Marechale Capital plc
Income Statement (unaudited)
Six months ended 30 September 2012
			30 Sept	30 Sept
			2012	2011
			£	£
Revenue			140,682	237,319
Cost of sales			(32,211)	(25,940)
Gross profit			108,471	211,379
Administrative expenses			(278,015)	(297,235)
Operating (loss)/profit			(169,544)	(85,856)
Investment revenues			0	39
Other gains and losses			13,500	0
Loss/ profit before tax			(156,044)	(85,817)
Corporation tax charge			0	0
(Loss)/ profit for the period			(156,044)	(85,817)
Earnings per share (Basic and diluted) 52,437,410 shares (2011: 52,437,410)			(0.30p)	(0.16p)

Balance Sheet (unaudited)
As at 30 September 2012
		30 Sept	30 Sept
		2012	2011
		£	£
Current assets
Available for sale investments		101,238	76,351
Trading investments		1,600	28,125
Trade and other receivables		129,176	41,608
Cash and cash equivalents		147,715	284,870
Total current assets		379,729	430,954
Current liabilities
Trade and other payables		(53,721)	(47,771)
Corporation tax		0	0
Total current liabilities		(53,721)	(47,771)
Net assets		326,007	383,183
Equity
Share capital		2,421,871	2,421,871
Share premium account		1,227,452	1,227,452
Revaluation reserves		16,989	21,602
Other reserves		(50,254)	(50,254)
Retained earnings		(3,290,051)	(3,237,488)
Total equity		326,007	383,183

Cash Flow Statement (unaudited)
Six months ended 30 September 2012
				30 Sept	30 Sept
				2012	2011
				£	£
Net cash from operating activities
Operating (loss)/ profit				(169,544)	(85,855)
Operating cash flows before movements in working capital				(169,544)	(85,855)
Movement in working capital
Decrease in receivables				22,918	40,874
(Decrease)in payables				(908)	(751)
				23,826	40,123
Operating cash flow				(147,534)	(45,732)
Investment activities
Interest receivable				0	38
Proceeds on disposal of trading investments				20,000	-
Proceeds on disposal of available for sale investments				(500)	-
Expenditure on tangible fixed assets				0	-
Expenditure on trading investments				(35,000)	(11,500)
Cash flow from investing activities				(15,500)	(11,462)
Financing
Issue of share capital				0	100,000
Interest payable				0	0
Cash flow from financing activities				0	100,000
Net increase/(decrease) in cash and cash equivalents				(163,034)	42,806
Cash and cash equivalents at start of period				310,749	242,064
Cash and cash equivalents at end of period				147,715	284,870
(Decrease)/ increase in cash and cash equivalents				(163,034)	42,806

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 periods being reported on the same basis.

 

END

 

 

IR VLLFFLLFBFBX