Interim Statement - 15 December 2010

Marechale Capital has had an encouraging start to the current year and I am pleased to report its return to profitability in the six months to September 2010.

Marechale operates as a corporate finance advisory and capital fund raising business focused on 3 key sectors; renewables, consumer (retail and leisure), and infrastructure. Marechale runs a low cost business model working with its associates on a profit share basis. Marechale has been successful as it is selective in the projects it takes on and has a high success rate of executing and completing projects due to its proprietary investor relationships.

In the six month period Marechale has completed 9 transactions which have generated sufficient cash fees to achieve a small profit. Corporate finance projects include advising a major private equity house on the refinancing of a retail business and advising an international shipping business on a co-operation agreement with a Scandinavian investment group. In the leisure sectors Marechale's completed development capital projects range from raising just over £1m equity issue from a family fund for Hawksmoor, the fast growing premium steak restaurant group, raising £1.9m for EIS qualifying Heartstone Inns 2 plc, a Southern based managed pub business from UK wealth managers, and £5.9m of private equity growth capital investment for an established restaurant group.

Marechale has likewise had great success in the renewables sector forming 2 clean energy development companies benefiting from the UK’s new Feed in Tariffs. Firstly, raising development capital for Future Biogas Ltd, an anaerobic digestion biogas business which has funded its first site and is awaiting planning permission for future sites, and secondly, forming and funding West Country Renewables Ltd, a new solar development company based in the South West of the UK.

The above projects resulted in Marechale generating commission and advisory fees, warrants and founder equity which strengthen Marechale’s balance sheet and could result in significant future gains for shareholders.

Marechale has a healthy pipeline of engaged corporate finance projects. Marechale is also entering the intermediary market this year with the planned launch of a new renewable fund for consented FIT plants, a new Venture Capital trust, as well as a further fund raising for Heartstone Inns 2 plc.

Whilst market conditions are still challenging, the growing pipeline of businesses seeking funding and an increasing appetite amongst our client base to invest in high quality investment opportunities provide us with confidence for trading next year.

The Board continues to consider a number of acquisitions and investments in potentially complimentary fund management or financial services businesses.

We hope to give you further positive updates on Marechale Capital after the March 2011 year end.

Marechale Capital PLC
Income Statement (unaudited)
Six months ended 30th September 2010

   

30 Sept
2010

30 Sept
2009

Continuing operations

 


 

Revenue

 

299,658

-

Cost of sales

 

(25,343)

-

Gross profit

 

274,315

-

Administrative expenses

 

(264,935)

(315,160)

Operating profit/ (loss)

 

9,380

(315,160)

Investment revenues

 

646

1,748

Other gains and losses

 

-

(1,408)

Profit/ (loss) before tax

 

10,026

(314,820)

Corporation tax charge

 

-

-

Profit/ (loss) for the period on
continuing operations

 

10,026

(314,820)

Loss for the period on
discontinued operations*

 

-

(58,353)

Profit/ (Loss) for the period

 

10,026

(373,173)

Earnings per share

 

   

Basic and diluted

47,437,410 shares
(2009:42,741,106)

0.02p

(0.87p)

* On 14th September 2009 the AIM Broking and PLUS Adviser businesses and associated assets weresold to Whim Gully Capital LLP for a consideration of £200,000.

Marechale Capital PLC
Balance Sheet (unaudited)
As at 30th September 2010

 

30 Sept
2010

30 Sept
2009

Non current assets


 

Property, plant and equipment

-

15,929


   

Current assets

   

Available for sale investments

67,707

110,614

Trading investments

-

6,089

Trade and other receivables

144,848

241,037

Cash and cash equivalents

294,156

541,153

 

506,711

898,893

Total assets

506,711

914,822

     

Current liabilities

   

Trade and other payables

(94,682)

(132,179)

Corporation tax

-

19,281

     

Total current liabilities

(94,682)

(112,898)

     

Net assets

412,029

801,923

Equity
Capital and reserves attributable
to equity shareholders

   
     

Share capital

2,371,872

2,137,055

Share premium account

1,177,452

1,177,452

Revaluation reserves

28,324

36,773

Other reserves

(50,254)

683,591

Retained earnings

(3,115,365)

(3,232,948)

     
 

412,029

801,923

Cash Flow Statement (unaudited)
Six months ended 30th September 2010

 

30 Sept
2010


30 Sept
2009


Net cash from operating activities

   

Operating profit/ (loss) from
continuing operations

9,380

(315,160)

Depreciation

-

21,000

Operating loss from discontinued
operations

-

(58,353)

Share based payments re discontinued operations

-

80,000

     

Operating cash flows before movements
in working capital

9,380

(272,513)

     

Movement in working capital

   

(Increase)/ decrease in receivables

(81,874)

91,960

(Decrease)/ increase in payables

(23,428)

(30,963)

     
 

(105,302)

60,998

Operating cash flow

(95,922)

(211,515)

     

Investment activities

   

Interest receivable

646

1,749

Proceeds on disposal of trading investments

-

(1)

Proceeds on disposal of available for sale investments

-

-

Expenditure on tangible fixed assets

-

-

Expenditure on trading investments

(10,000)

-

     

Cash flow from investing activities

(9,354)

1,748

     

Financing

   

Issue of share capital

-

-

Interest payable

-

-

     

Cash flow from financing activities

-

-

     

Net increase/(decrease) in cash and cash
equivalents

(105,276)

(209,767)

     

Cash and cash equivalents at start of period

399,432

750,921

Cash and cash equivalents at end of period

294,156

541,153


   

Increase/(decrease) in cash and cash equivalents

(105,276)

(209,767)

 

This financial information has been 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.

Marechale Capital is an investment banking and corporate finance business

We use our established relationships and sector specialisation to raise capital and refinance high growth companies and funds primarily in the consumer brands, leisure and retail sectors.