AIM-quoted corporate finance adviser Marechale Capital (LON: MAC) has made a gain on its stake in biogas plants developer and operator Future Biogas Group after it was acquired by 3i Infrastructure (LON: 3IN).
The shares were acquired in 2010-11 for £11,600 after Marechale Capital provided advice. The total amount received was £218,000. However, this is below book value. Pro forma net cash is £417,000.
Listed investment company 3i Infrastructurehas raised £100m via a placing and set aside £28m to acquire Future Biogas. It will combine it with Infinis, an electricity generator from landfill gas, which acquired former AIM company Alkane Energy in 2018. Infinis is also developing battery storage projects.
Future Biogas previously attempted to join AIM, but there was not an appetite for the business when it tried to raise cash. Future Biogas planned to move from developing projects and selling them on to retaining ownership of some of the plants it develops.
In the year to May 2022, revenues fell from £15.8m to £13.8m. Future Biogas had 11 contracts at that time and the average contract length was 11.6 years. The pre-tax profit reduced from £249,000 to £17,000, even after a £205,000 disposal gain. There were additional costs related to the attempted flotation. Capitalised development costs were £1.17m during the period. There was £4.1m in cash at the end of May 2022.