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MXC CAPITAL LIMITED ORD NPV

MXC Capital Limited Good progress with investments and partnerships

MXC Capital Limited (LON: MXCP), the AIM quoted technology focused adviser and investor, announced results for the six months ended 28 February 2019.

Peter Rigg, Chairman, commented: “The results for the six months show good progress both with our investments and our partnerships. The period also saw us return to a profit at trading level. We remain confident of driving shareholder value both from our existing portfolio and partnerships and from new opportunities.”

Highlights

· Strong balance sheet, net assets of £62.3 million as at 28 February 2019 (H1 2018: £63.2 million);

· Net asset value1 per share of 97 pence (H1 2018: 94 pence);

· Return to profit at a Trading EBITDA2 level of £0.2 million (H1 2018: loss £0.8 million);

· Net cash of £3.3 million (H1 2018: £5.1 million), no borrowings;

Ø Net cash of £23.5 million at 7 May 2019, following realisations post-period end

· Acquisition by Ravenscroft Limited of 25% of MXC Capital (UK) Limited, the Group’s trading business, for £2.25 million;

· Investments made during and post period end in relation to the joint venture with Liberty Global plc and the partnership with Ravenscroft Limited to advise the GIF Technology & Innovation Cell;

Ø Both of these relationships are now generating significant revenues for MXC

· Post period end disposal of investment in Tax Systems plc, generating a cash profit of £9.3 million and proceeds of £24.2 million;

· Loans advanced during the period of £7.3 million, including £4.3 million to IDE Group Holdings plc (“IDE”) with a further £3.7 million advanced post the period end in order to enable IDE to repay its bank debt; and

· Proposed reintroduction of capital return programme.

1 Represents net assets plus market value of shares held by the Employee Benefit Trust as at 28 February 2019

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

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Disclaimer: Statements in this article should not be considered investment advice, which is best sought directly from a qualified professional.