(Alliance News) - Marechale Capital PLC on Monday warned of "significant material uncertainty" for the year ahead despite swinging to a pretax profit in its 2021 financial results.
The corporate finance firm focusing on the hospitality and renewable sectors cautioned that current economic uncertainty and a GBP208,000 operating loss for the year cast doubt over the company's future.
For the year ended April 30, Marechale posted a pretax profit of GBP246,000, swinging from a GBP38,000 loss a year before.
The profit was driven by investments and warrants in three client companies generating unrealised gains of GBP412,000 compared to a net overall loss in 2020 of GBP12,000.
However, the firm's operating loss for 2021 widened substantially to GBP208,000 from GBP35,000.
Revenue declined 16% to GBP400,000 from GBP477,000 the year before.
Chair Mark Warde-Norbury commented: "2020 was a year of significant challenges for a number of businesses across the hospitality sector, among many others, due to the uncertainty caused by Covid-19.
"Given the impact of the pandemic and government restrictions on our hospitality clients, it is testament to the skill and hard work of the management teams Marechale advise that, not only have they survived, but they are also strongly positioned to expand and capitalise on market opportunities presented by inherent weaknesses in the sector."
Looking at the 2022 financial year, Marechale highlighted that four long standing clients were looking for a trade exit or initial public offering in the next three to 18 months, while its renewable energy and other corporate clients continue to perform well.
The company said it "remains optimistic" that it will continue to generate further uplifts on its current and future equity and warrant investments, both in the short and longer term.
Marechale Capital shares were up 5.5% at 2.16 pence each on Monday in London.
By Will Paige; willpaige@alliancenews.com
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Marechale Cap. (MAC)