Marechale Capital reports narrower full-year operating loss

(Sharecast News) - Marechale Capital reported a narrower operating loss for the year ended 30 April on Firday, despite lower revenues, as the City of London-based corporate finance adviser cited improved margins and progress across its investment portfolio.

Revenue fell to �0.41m from �0.67m a year earlier, reflecting weaker fundraising income, but gross profit rose to �0.27m from �0.2m due to lower commissions paid to third parties.

Operating losses narrowed to �0.23m from �0.3m, though the company posted a wider pre-tax loss of �0.34m compared with �0.18m in 2024, largely due to the sale of some investments at a discount to raise cash.

Chairman Mark Warde-Norbury said the year had been "challenging" for Marechale and its clients, particularly in hospitality, where rising costs and weaker discretionary spending weighed on businesses.

"Against this challenging backdrop, there are significant market opportunities for Marechale's clients," he added.

Marechale highlighted progress at Weardale Lithium, its largest investment, which secured planning permission in February for the UK's first 100% direct lithium extraction pilot plant.

The stake, worth �2.85m, included 467,000 founder shares and 20,800 options.

The company said it expects an uplift in the value of its investments from a fundraising already under way.

Net assets stood at �3.04m at the year-end, down from �3.35m, while cash was �0.21m.

The company noted �0.77m of unused capital tax losses available to offset future gains.

Warde-Norbury said Marechale remained "optimistic that the company, with its sufficient cash reserves, will continue to generate further uplifts on its current and future equity and warrant investments, both in the short and longer term," adding that the current SME advisory market disruption offered opportunities to strengthen its team and deal pipeline.

At 1136 BST, shares in Marechale Capital were down 0.53% at 1.89p.

Reporting by Josh White for Sharecast.com.