MXC Capital Ltd (LON:MXCP), the AIM quoted technology focused adviser and investor, announced today its results for the six months ended 28 February 2018.
· Strong balance sheet, net assets £63.2 million as at 28 February 2018 (H1 2017: £63.5 million)
* Total realisations of £2.3 million during the period.
* Net cash of £5.1 million (H1 2017: £1.7 million), no borrowings
· Net asset value per share 1.88 pence (H1 2017: 1.87 pence) with the underlying portfolio and liquid assets1 valued at 1.53 pence per share (H1 2017: 1.63 pence)
· Two new business ventures:
* Joint venture with Liberty Global plc signed in November 2017: fee generating in H2, first investment announced post period end
* Partnership with Ravenscroft to advise the GIF Technology & Innovation Cell (“GIF”) signed in February 2018: first investments made, fee generating in period
· Portfolio valued at £46.4 million1 at 28 February 2018 (H1 2017: £53.4 million), diminution principally due to decline in valuation of IDE Group Holdings plc (“IDE”)
· Trading EBITDA2 loss of £0.8 million (H1 2017: loss £0.9 million), reflecting investment in developing Liberty Global and GIF relationships
· During and post the period the majority of investee businesses continued to deliver on growth goals:
* Castleton Technology plc (“Castleton”) confirmed in line trading for the year ended 31 March 2018 with adjusted EBITDA of not less than £5.0 million, representing continued double digit organic growth.
* Tax Systems plc (“Tax Systems”) reported results for the year ended 31 December 2017 in line with market expectations with adjusted EBITDA of £7.0 million representing growth of 11%
* IDE reported disappointing results for the year to 31 December 2017, management are undertaking an ongoing review of the business
* Sagacity Solutions Limited continued to build its product portfolio and broaden its customer base, with a high level of repeat revenues
* Adept 4 plc reported continued progress in the year to 30 September 2017, with trading EBITDA of £1.2 million
· Board remains confident of driving shareholder value from existing portfolio and new business relationships
1 represents unaudited valuation based on closing mid-market prices of quoted investments and IFRS valuation of warrants at 28 February 2018 with privately held assets valued at input cost or the latest fundraising valuation, plus outstanding loan capital
2 Trading EBITDA represents earnings before net finance costs, tax, depreciation and amortisation, non-recurring items, share-based payments and realised and unrealised movements in the fair value of investments
Peter Rigg, MXC Capital Limited Chairman, commented: “The results for the six months show progress with the majority of our existing investments and with both our joint venture with Liberty Global and our role with the technology fund in Guernsey. The Board remains confident that MXC will deliver good returns for shareholders, both from the existing portfolio and from these two exciting new business relationships.”