MXC Capital swings to profit after strong year

updated: 3 December 2019 at 1:52pm Author: Josh White

(Sharecast News) - Technology-focussed advisor and investor MXC Capital reported a "strong" balance sheet in its final results on Tuesday, with net assets standing at £71.3m at year-end, up from £63.9m, which included £21.5m of cash with no borrowings, compared to £12.4m.
The AIM-traded firm said its net asset value per share as at year-end on 31 August was 117p, rising from 95p year-on-year, with its underlying portfolio and liquid assets valued at 102p per share, up from 81p.

It swung to a trading EBITDA profit of £1.8m from a loss of £1.2m in the prior year, and reported a profit after tax of £9.4m, compared to a loss of £7.6m, which the board said reflected a recovery in value of its public company investments at year-end.

Operationally, the directors highlighted the exit from Tax Systems during the period, which generated total proceeds of £24.2m and represented an overall return of 1.62x, with a cash profit of £9.3m plus fees.

A total of £15.7m of further equity and loan capital investments were made during the year, including £4.6m invested into the partnerships with Liberty Global and GIF Technology and Innovation Cell, and an £8m loan capital advanced to IDE Group Holdings to replace the company's debt provider.

Those also included the completion of the sale of a 25% stake in MXC Capital UK - the holding company of MXC's transactional businesses - for £2.25m to Ravenscroft.

Since the year ended, the company said it had completed a tender offer for a total amount of £1.7m, at a price of 116p per share.

It proceeded with a £3.5m debt refinance and a £0.1m further equity investment in Adept4, and invested £4.9m into Channel Islands Media Group - a new joint venture with Bailiwick Investments.

"In the year to 31 August, MXC made significant progress both in terms of trading profitability and with respect to its investments," said chairman Peter Rigg.

"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."

At 1314 GMT, shares in MXC Capital were up 6.67% at 88p.