Marechale drops after chairman brands interims "poor"

Shares of Marechale Capital dived on Friday as the company's chairman said its board is evaluating its strategy after reporting "poor" interim operating results.

For the six-month period ended 31 October, the investment services provider achieved revenue of £0.14m, up 9% from the same period the year before, and saw its loss before tax narrow from £0.46m to £0.18m.

The AIM-traded company said the narrowed loss takes into account a gain of £0.06m on the realisation of one investment and a 2017 provision against fair value of options held in investee companies of £0.12m, as well as a provision of £0.06m made in 2017 for a loss in an associate's project.

Marechale's cash and cash equivalents stood at £0.06m at the end of the period, down from £0.1m at the same point last year.

Mark Warde-Norbury, chairman of Marechale, said: "On a more positive note this long-term strategy has resulted in 2018 being the company's best year for exits with 5 multiple investor return exits and one write-off. Successful exits include the Sheen Falls Lodge, West Country Renewables and Inn Collection."

The chairman added that the board of Marechale Capital is continuing to consider its options and its future strategy, and stated that while current deal flow remained strong, a number of the transactions the company is involved in are taking longer to complete.

Marechale Capital's shares were down 9.43% at 1255 GMT.