MXC Capital (LON:MXCP), the technology focused advisor and investor, has announced its audited final results for the year ended 31 August 2019.
Summary
- Strong balance sheet, net assets of £71.3 million as at 31 August 2019 (31 August 2018: £63.9 million) including £21.5 million of cash with no borrowings (31 August 2018 comparative: £12.4 million);
- Net asset value1 per share as at 31 August 2019 of 117 pence (31 August 2018: 95 pence per share) with the underlying portfolio and liquid assets2 valued at 102 pence per share (31 August 2018: 81 pence per share);
- Trading EBITDA profit3 of £1.8 million (2018: loss of £1.2 million);
- Profit after tax of £9.4 million (2018: loss of £7.6 million) reflecting recovery in value of the Group’s public company investments at 31 August 2019;
- Notable milestones during the year include:
- Exit from Tax Systems plc, generating total proceeds of £24.2 million, representing an overall return of 1.62x and a cash profit of £9.3 million plus fees
- £15.7 million of further equity and loan capital investments made during the year, including:
- £4.6 million invested into the partnerships with Liberty Global plc and GIF Technology and Innovation Cell;
- £8.0 million loan capital advanced to IDE Group Holdings plc to replace the company’s debt provider; and
- Completion of the sale of a 25% stake in MXC Capital (UK) Limited, the holding company of MXC’s transactional businesses, for £2.25 million to Ravenscroft Limited.
Post year end highlights
- Completion of tender offer for total amount of £1.7 million, at a price of 116 per share;
- £3.5 million debt refinance and £0.1 million further equity investment in Adept4 plc4; and
- £4.9 million invested into Channel Islands Media Group Limited, a new joint venture with Bailiwick Investments Limited.
Peter Rigg, Chairman of MXC, said:
“In the year to 31 August 2019, MXC made significant progress both in terms of trading profitability and with respect to its investments. After a couple of difficult years, I am delighted that the hard work of the MXC team is paying off and that we were able to reward shareholders for their loyalty by way of a return of capital. I continue to be grateful for the diligence, initiative and creativity of the MXC team during the year and, as ever, for the ongoing support of our shareholders. The Board looks to the future with confidence.”
1 total balance sheet net assets plus market value of shares held in the Employee Benefit Trust as at 31 August 2019
2 comprises cash balances, investments, outstanding loan capital and accrued interest and the market value of shares held in the Employee Benefit Trust as at 31 August 2019
3 earnings from trading activities before interest payable, tax, depreciation, amortisation, exceptional items, share-based payments and movements in fair value of investments and after interest income under the effective interest method as this is considered to be part of the trading activities of the Group
4 on 29 November 2019, Adept4 plc changed its name to CloudCoCo Group plc
