Marechale Capital reports full year loss on drop in revenue

Marechale Capital on Monday reported an annual loss on lower revenues, reflecting difficulty in completing deals.

The investment banking and corporate finance business said its loss before tax came to £91,092 in the year to 31 March 2016, down from a pre-tax profit of £150,176 the prior year. Revenue dropped to £741,680 from £965,322.

The company said this year around £90,000 worth of commission revenue on contracts was received post-period in April, even though the related work took place before 31 March. A £91,000 loss for the year was incurred as a result.

“In past years the slippage had been modest and the directors took the 'swings and roundabouts' view: however, following this year's slippage, the directors have determined to seek Shareholder approval to move the company's year-end to 30 April from 2017 onwards,” said Marechale chairman Mark Warde-Norbury.

He added that directors have received shareholder approval for a capital reorganisation that will be necessary before dividends can be paid. The group will be able to pay dividends in due course once it changes its Articles of Association and receives shareholder and court approval “when circumstances permit”, Warde-Norbury said.