Marechale Capital shares surged 8% to 3p in early afternoon trading on Monday, after the firm reported increased profits to £2.5 million in FY 2022 compared to £246,000 the last year.
The company announced a balance sheet rise to £3.6 million from £686,000, alongside a revenue of £622,000 against £400,000.
“During the last year Marechale has generated revenue of £622,000 (2021: £400,000), and, although our gross profit margin decreased from 64% to 53%, owing to higher third-party commissions, administrative expenses remained steady at £483,000 (2021: £463,000),” said Marechale Capital chairman Mark Warde-Norbury.
Marechale Capital confirmed its investments and warrants in client companies generated gains of £2.7 million compared to £412,000 the year before.
The group also noted a successful £207,000 fundraise in March 2022, alongside a strategic investment of £160,000 from Luke Johnson in October 2021, who acquired a 9% stake in the firm.
Marechale Capital mentioned further equity funding for Fast2Fibre and additional funding secured for The Forest Road Brewing Company among its FY 2022 highlights.
The company reported its hospitality clients were positioned to expand and capitalise on market opportunities, and its renewable energy and corporate clients continued to bring “strong return opportunities” for shareholders.
“It has been an active year in the hospitality sector as a number of businesses negotiated through the pandemic and Government restrictions; two years of market uncertainty have now been prolonged with the advent of war in Europe, which is compounding increasing inflationary pressures, and discretionary spending is being squeezed,” said Norbury.
“However, against this challenging backdrop, we believe that there are significant market opportunities for Marechale’s clients.”
“The Company has continued with its strategy of utilising its balance sheet to take enhanced positions in its client companies, and embarked on two small capital raises, welcoming Luke Johnson’s strategic investment of £160,000 in October 2021, and, secondly, raising a further £207,000 from shareholders and new investors in March 2022.”