17th Dec 2015 12:43
LONDON (Alliance News) - Marechale Capital PLC on Thursday said it looks like the bulk of its revenue will be generated in the second half of its current financial year, as has traditionally been the case.
"During the first half Marechale has been appointed to raise growth and development capital for a series of client transactions, and whilst the company has had a good deal flow, a number of its deals have taken, or are taking, longer to complete," Chairman Mark Warde-Norbury said.
Marechale, which operates as a corporate finance advisory and capital fund raising business, said it made a GBP47,898 pretax loss in the six months ended September 30, compared with the GBP45,791 pretax loss recorded in the corresponding half the prior year.
First-half revenue fell to GBP297,275 from GBP244,500 year on year, while administrative expenses fell to GBP251,041 from GBP276,978.
Marechale's joint venture renewable energy company, Northfield UK Solar Ltd, established in July 2013, is developing a portfolio of solar sites, and is having a "challenging time" as its first large scale solar project, whilst achieving the necessary grid connection offer, was turned down in planning. The subsequent appeal failed, as reported on November 6.
Northfield's second scheme has achieved planning permission and has an agreed grid connection offer.
"The project was supposed to be bid into the 2015 Contract for Difference auction, although it has recently been announced that there will be no solar subsidies in this year's auction. Solar has not been ruled out of other future auctions, and, because the scheme is not able to connect to the grid until Q3/Q4 2017, there is a possibility that the site will receive the CfD," Warde-Norbury said.
"Also, whilst subsidy payments make a huge difference to the likely returns that this and Northfield's other projects, that are currently on hold, could achieve, there is potential value without them," the chairman added.
Warde-Norbury said Northfield is "actively considering" other commercial opportunities, such as combining schemes with other renewable technologies.
"Any such value would enhance Northfield's value, which would benefit Marechale and its shareholders as a result. We have again adjusted the value of Marechale's shareholding in Northfield on the company's balance sheet to GBP146,000, to reflect the opportunity value and likely risks to this being achieved," Warde-Norbury said.
Shares in Marechale were down 17% at 1.25 pence on Thursday.
By Samuel Agini; [email protected]; @samuelagini
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