Marechale Capital Plc - Final Results
("Marechale" or the "Company")
Financial Statements for the Year Ended
Chairman’s Statement
As reported in the interim results statement in
The Company entered the Period with good levels of business activity and funded clients in both the hospitality sector, as well as clients in other high growth sectors. Completed projects include further equity funding for the European telecommunications technology company, Fast2Fibre,
Marechale continues to generate professional services income by providing advice to its clients. In the last year this included strategic and funding advice for the
In the clean energy space, general market uncertainty has impacted some of our corporate clients whose progress has been delayed and resulted in some investor exits being postponed.
However, significant progress continues to be made with the lithium extraction business,
Please note that, within the rules of the Accounting Standards, the Board has taken the decision to declare separately as ‘Exceptional Costs’ various impairment provisions for bad debts and loan notes owed by two Investee Companies. Please be advised that at the time of writing, these companies remain trading but under severe financial distress. We expect both companies to be refinanced in the near future, in which case the impairment provisions will be credited back to the P&L in 2024-25.
It is also worth noting that the Company has £770,000 of unused capital tax losses to offset against any possible future tax liability on realisation of gains.
Marechale’s revenue for the year saw a substantial increase to £668,816, compared to £376,000 in the previous financial year. This growth of nearly 78% is a testament to the robust strategies the Company has implemented and the hard work of our dedicated team. However, commissions paid to 3rd parties involved in transactions increased by 81%.
While we continue to navigate through various market challenges, I am pleased to report a significant reduction in Marechale’s operating loss for the year, from £372,000 in 2023 to £296,000 this year. Marechale’s net loss before tax for the year stands at £183,000, a notable improvement from the net loss of £426,000 reported in 2023. And, although gross profit margin decreased from 32% to 30%, administrative expenses remained steady at £494,000 (2023: £488,000). This reduction in net loss demonstrates ongoing efforts to enhance operational efficiencies and control costs.
The Company’s focus is to use its reputation and deal flow as a corporate finance adviser to build shareholder value in Marechale’s balance sheet. This has been achieved by negotiating equity and warrant positions, and joint venture arrangements as part of its terms of engagement with growth company clients. Marechale’s historical investment performance has been excellent in this regard, having achieved double digit internal rates of return across all the companies that it has funded since 2010. The Board are confident that the investments in Weardale Lithium,
I would like to take this opportunity to express our profound gratitude to
At the same time, we are delighted to welcome
Whilst the current economic climate remains challenging, the Board remains positive about the investments that it holds in its client companies, and optimistic that the Company, with its sufficient cash reserves, will continue to generate further uplifts on its current and future equity and warrant investments, both in the short and longer term. The Company continues to develop further its proven track record as a corporate finance adviser by seeking further deal flow in the high growth £10-50 million Enterprise Value PE sector.
As we look to the future, the Board remains committed to building on this year's positive momentum. The Company will continue to focus on enhancing revenue stream and delivering value to shareholders.
In closing, I would like to extend my heartfelt thanks to shareholders, employees, and clients for their continued support and confidence in the Company. The Board looks forward to another year of progress and achievement.
Chairman
This announcement contains inside information for the purposes of the
For further information please contact:
Marechale Capital plc Tel: +44 (0)20 7628 5582
Mark Warde-Norbury / Patrick Booth-Clibborn Cairn Financial Advisers LLP (Nomad and Broker) Tel: +44 (0)20 7213 0880
Jo Turner / Sandy Jamieson
Statement of Comprehensive Income
For year ended
Year ended Year ended
30-Apr 30-Apr
2024 2023
(£) (£)
Continuing operations
Revenue 668,816 375,726
Cost of sales (471,433) (260,581)
Gross profit 197,384 115,145
Administrative expenses (493,643) (487,626)
Operating loss (296,260) (372,481)
Bank interest paid (net) (428) (912)
Other gains/(losses) 223,004 (52,124)
Exceptional costs (109,303) -
(Loss)/profit before tax (182,987) (425,516)
Taxation - -
(Loss)/ profit for the year on continuing operations (182,987) (425,516)
Earnings per share (Pence) (Pence)
Basic - Continuing operations 10 (0.18) (0.45)
- Diluted 10 (0.18) (0.45)
Statement of Comprehensive Income
(Loss)/ profit for the year on continuing operations (182,987) (425,516)
Total recognised comprehensive profit
(all attributable to owners of the company) (182,987) (425,516)
Statement of Financial Position
As at
Year ended Year ended
30-Apr 30-Apr
2024 2023
(£) (£)
Current assets
Investment in subsidiary 2 2
Equity investments at fair value through 3,039,659 2,862,653
profit and loss
Warrants at fair value through profit and 108,482 130,076
loss
Trade and other receivables 34,590 75,933
Cash and cash equivalents 248,196 282,795
Total current assets 3,430,929 3,351,459
Total assets 3,430,929 3,351,459
Current liabilities
Trade and other payables (62,035) (91,558)
Borrowings (10,000) (10,000)
Total current liabilities (72,035) (101,558)
Net current assets 3,358,895 3,249,902
Long-term liabilities
Borrowings (12,500) (22,500)
Net assets 3,346,395 3,227,402
Equity
Capital and reserves attributable to
equity shareholders
Share capital 847,530 763,690
Share premium 481,290 329,330
Reserve for own shares (50,254) (50,254)
Reserve for share based payments 150,168 83,988
Retained profits/(losses) 1,917,661 2,100,648
3,346,395 3,227,402
The financial statements were approved by the Board of Directors
and authorised for issue on 19 August 2024 .
They were signed on its behalf by:
Mark Warde-Norbury
Director
Company No: 03515836
Statement of Changes in Equity
For year ended
Share Reserve for Reserve for Retained
capital Share premium own shares share based earnings
payments
Balance at 30 April 763,023 328,413 (50,254) 62,313 2,526,165
2022
Total comprehensive
income
(Loss) for the - - - - (425,517)
financial year
Share based payments - - - 21,675 -
in the year
Issued in 667 917 - - -
year
Total comprehensive 667 917 - 21,675 (425,517)
income
Balance at 30 April 763,690 329,330 (50,254) 83,988 2,100,648
2023
Total comprehensive
income
(Loss) for the - - - - (182,987)
financial year
Share based payments - - - 66,180 -
in the year
Issued in 83,840 151,960 - - -
year
Total comprehensive 83,840 151,960 - 66,180 (182,987)
income
Balance at 30 April 847,530 481,290 (50,254) 150,168 1,917,661
2024
Statement of Changes of Cash Flows
For year ended
Year ended Year ended
30-Apr 30-Apr
2024 2023
(£) (£)
Net cash from operating
activities
(Loss)/profit before tax (182,987) (425,516)
Reverse provision for share based 66,180 21,676
payments
Reverse losses/ (gains) on fair value investment through (228,406) 16,513
profit and loss
Reverse provision for 109,303 -
exceptional costs
Reverse losses on disposal of investments 5,402 18,075
Reverse net interest 428 912
expense
Operating cash outflows before movements in working (230,080) (368,341)
capital
Movement in working
capital
(Increase)/decrease in 3,539 (32,157)
receivables
Increase/(decrease) in (29,523) 34,190
payables
Tax paid - -
(25,983) 2,033
Cash outflow from (256,063) (366,308)
operating activities
Investment activities
Interest 272 -
received
Expenditure on equity (6,572) -
investments
Proceeds from sale of equity investments through profit 2,664 226,925
and loss
Cash inflow/(outflow) from investing (3,636) 226,925
activities
Financing
Issue of ordinary share 235,800 1,584
capital
Repayment of borrowings (10,000) (10,000)
Interest (699) (912)
payable
Cash inflow from 225,101 (9,328)
financing activities
Net increase in cash and cash equivalents (34,599) (148,711)
Cash and cash equivalents at start of the 282,795 413,970
financial year
Cash and cash equivalents at end of the 248,196 282,795
financial year
Notes to the Financial Statements
Year ended
1. General information
The Company's registered office and principal place of business is
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 Company. The Company has unpredictable revenue due to the nature of corporate finance advisory and the reliance upon deal-driven transactions, however as at the year end the company had £248k of cash reserves (2023: £283k) which as at that date equated to approximately 7 months of cash overheads. Whilst the company generated operating losses of £296k in the financial year (2023: £372k) the directors remain confident that the project pipeline will generate sufficient income on top of the cash reserves in order to meet the company’s liabilities as they fall due over the next twelve months.
Furthermore, there is the ability to fund working capital by equity issues, sales of equity investments and/or warrants and deferral of directors' salaries.
b. Basis of accounting
These financial statements have been prepared in accordance with
The financial statements have been prepared on the historical cost basis as modified by the valuation of certain financial instruments, as described below.
The Directors have chosen not to prepare consolidated accounts because the two subsidiaries,
Subsidiaries are entities over which the Group has control, being the power to govern the financial and operating policies of the acquired entity so as to obtain benefits from its activities.
3. Business and geographical segments
The Directors consider that there is only one activity undertaken by the Company, that of corporate finance professional services advisory. All of this activity was undertaken in the
2024 2023
(£) (£)
Broking commissions and fees earned from corporate finance 668,816 375,726
4. Other gains/ (losses)
2024 2023
(£) (£)
Realised (losses) on equity investments (5,402) (18,075)
Unrealised gains/(losses) on equity investments 250,000 (17,536)
Unrealised (losses) on equity warrants (21,594) (16,513)
223,004 (52,124)
5. Earnings per share
Earnings Earnings
(£) (£)
Based on Profit for (182,987) (425,516)
the year.
No. shares No. shares
Weighted average number of Ordinary 104,194,580 95,419,581
Shares in issue
for the purpose of basic earnings per
share
Weighted average number of Ordinary 119,210,656 103,610,657
Shares in issue
for the purpose of diluted earnings per share (see
the notes of the accounts and immediately below)
The loss attributable to equity shareholders and weighted average number of ordinary shares for the purposes of calculating diluted earnings per ordinary share are identical to those used for basic earnings per ordinary share. This is because the exercise of share options would have the effect of reducing the loss per ordinary share and is therefore anti-dilutive.
6. Other matters and Market Abuse Regulation (MAR) Disclosure
The financial information for the year ended
7. Post balance sheet events
There are no past balance sheet events to report
8.
Most recent Board Appointment – announced
On
Cautionary statement
Certain statements made in this announcement are forward-looking statements. Such statements are based on current expectations and assumptions and are subject to a number of risks and uncertainties that could cause actual events or results to differ materially from any expected future events or results expressed or implied in these forward-looking statements. Persons receiving this announcement should not place undue reliance on forward-looking statements. Unless otherwise required by applicable law, regulation or accounting standard, the Company does not undertake to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
