MXC Capital Limited – Final Results

MXC Capital Limited – Final Results

MXC, the technology focused merchant bank, announces its audited final results for the year ended 31 August 2018.

Summary

  • Strong balance sheet, net assets of £63.9 million as at 31 August 2018 (31 August 2017: £68.8 million)
  • Net asset value per share as at 31 August 2018 of 1.90 pence with the underlying portfolio and liquid assets* valued at 1.61 pence per share
  • Trading EBITDA loss** of £1.2 million (2017: loss of £1.6 million)
  • Notable milestones during the year include:
    – Launch of the joint venture with Liberty Global plc;
    – Appointment as consultant to Ravenscroft Limited in relation to its role as investment manager to the GIF Technology and Innovation Cell;
    – Sale of a 25% stake in MXCUK, the holding company of  MXC’s transactional businesses, which completed post year end; and
    – Final exit from Castleton Technology plc, generating a 3.3x return over the period of our investment
    – Significant further capital invested into existing and new companies within the Group’s portfolio
    – Post period end establishment of an Employee Benefit Trust to purchase MXC shares in the market in order to satisfy existing and future share incentive awards thereby reducing future shareholder dilution

Peter Rigg, Chairman of MXC, said: “The period under review has seen significant developments for MXC including our new partnerships with Ravenscroft Limited in relation to GIF Technology and Innovation Cell and the joint venture with Liberty Global plc. Both of these are testament to our expertise in the sector. They not only provide investment opportunities but regular fee income and the opportunity to share in more of the profit than is the case with our public investments. We believe this is an important change in the focus of our business.

I am grateful for the hard work, initiative and creativity of the MXC team during the year and, as ever, for the continuing support of our shareholders. The Board looks to the future with confidence.”

* underlying portfolio and liquid asset value represents cash balances plus audited valuation of the Company’s portfolio based on closing mid-market prices at 31 August 2018 with privately held assets valued at input cost, the latest fundraising valuation or average market multiples

** earnings from trading activities before interest, tax, depreciation, amortisation, non-recurring and exceptional items, share-based payments and movements in fair value of investments

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