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Fletcher King PLC  -  FLK   

Half-year Report

Released 07:00 15-Dec-2016

RNS Number : 8900R
Fletcher King PLC
15 December 2016
 

FLETCHER KING PLC

 

Interim Results for the 6 months ended 31 October 2016

 

 

Financial Highlights

 

                  Turnover   :           £1,680,000               (2015: £2,963,000)

                 

                  PBT           :           £163,000                  (2015: £1,187,000)

 

                  Basic EPS :           1.37p per share       (2015: 10.26p per share)

 

                  Dividend   :           1.00p per share       (2015: 1.00p per share)

 

 

Operational Highlights

 

·    The Market - Some normality has returned to the market following initial turmoil in the immediate aftermath of the EU Referendum result. Pre-Brexit rent levels continue to be achieved and the investment market remains reasonably active although volumes are lower and prices have drifted down 5% - 10%.

·    Fund Management and Investment - A number of transactions agreed before the Referendum proceeded to completion and a number of other investment transactions are progressing well.

Commenting on the results David Fletcher, Chairman of Fletcher King said:

"In spite of the Brexit market turmoil we have been able to produce a reasonable performance in the first half year. Uncertainty is likely to be around for some considerable time, but investors and tenants are active and we expect to see steady progress for the remainder of the year".

 

 

ENQUIRIES:

 

Fletcher King Plc

David Fletcher

Tel: 020 7493 8400

 

Cairn Financial Advisers LLP (Nomad)

James Caithie

Tel: 020 7213 0880

 

The interim results are available on the Company's website: www.fletcherking.co.uk



CHAIRMAN'S STATEMENT

 

Results

 

Turnover for the period was £1,680,000 (2015: £2,963,000) with a profit before tax of £163,000 (2015: £1,187,000). Performance last year was influenced by the sale of a SHIPS property. Your Directors have declared an interim dividend of 1.0p per share (2015: 1.0p per share) to be paid on 17 February 2017 to shareholders on the register at the close of business on 20 January 2017.

 

The Commercial Property Market

 

The market has been dominated by the run up to the EU Referendum and the aftermath of the unexpected result to leave.

 

In the weeks immediately following the result the market was in turmoil with Open Ended Unitised Funds seeing a rush of redemptions and they all closed their doors. However, some normality quickly returned. Whilst a few significant lettings fell through, the market has generally held up well with pre-Brexit rent levels continuing to be achieved. Whilst the letting market is seeing some caution there remains a reasonable level of demand. Apple have announced their move to 500,000 sq ft in the Battersea Power Station development and Google have confirmed that their new 650,000 sq ft London HQ at Kings Cross will go ahead.

 

The investment market remains reasonably active although volumes are lower and prices have drifted down 5% -10%. The devalued pound has attracted foreign buyers who accounted for 80% of central London deals in the last quarter.

 

Business Overview

 

In spite of the market turmoil we have been able to produce a reasonable performance in the first half year. The investment department did particularly well and a number of transactions agreed before the Referendum proceeded to exchange and completion.

 

Uncertainty remains and is likely to be there for some considerable time until Brexit terms are agreed. However, investors and tenants are active and our business is doing reasonably well.

 

Outlook

 

We expect to see steady progress for the remainder of the year and have a number of investment transactions progressing well.

 

Properties owned by the two SHIPS Syndicates are currently being refurbished although they will not be contributors to this year's profit. Once the markets have settled down we shall be seeking further investments for the SHIPS Syndicates.

 

 

David Fletcher

Chairman

15 December 2016

 



Fletcher King Plc

 

Consolidated Interim Statement of Comprehensive Income

 for the 6 months ended 31 October 2016

 


6 months ended


6 months ended


Year ended


31 October


31 October


30 April


2016

(Unaudited)


2015

(Unaudited)


2016 (Audited)


£000


£000


£000







Revenue

1,680


2,963


4,633

Employee benefits expense

(927)


(1,754)


(2,640)

Depreciation expense

(17)


(17)


(34)

Other operating expenses

(590)


(610)


(1,230)







Operating profit

146


582


729







Profit on sale of available for sale investments

-


590


593

Income from investments

11


10


22

Finance income

6


5


11

 

Profit before taxation

163


1,187


1,355







Taxation

 

(37)

 


(242)

 


(295)

 







Profit for the period

 

126

 


945

 


1,060

 







 

Total comprehensive income for the period

126


945


1,060







 

Earnings per share (note 4)






- Basic

1.37p


10.26p


11.51p

- Diluted

1.28p


10.26p


11.51p

 

Dividends per share






Interim dividend proposed

1.00p


1.00p


-

Dividends paid

1.00p


8.75p


9.75p



Fletcher King Plc

 

Consolidated Interim Statement of Financial Position

as at 31 October 2016

 



31 October


31 October


30 April



2016

(Unaudited)


2015

(Unaudited)


2016

(Audited)



£000


£000


£000








Assets







Non-current assets







Property, plant and equipment


32


67


50

Available for sale investments


1,368


752


1,274

Deferred tax assets


18


18


18

















1,418


837


1,342















Current Assets







Trade and other receivables


766


838


871

Cash and cash equivalents


2,641


4,070


2,846

















3,407


4,908


3,717















Total assets


4,825


5,745


5,059






















Liabilities







Current liabilities







Trade and other payables


200


1,096


346

Current taxation liabilities


320


337


282

Other creditors


366


430


526















Total liabilities


886


1,863


1,154






















Shareholders' equity







Share capital


921


921


921

Share premium


140


140


140

Reserves


2,878


2,821


2,844















Total shareholders' equity


3,939


3,882


3,905















Total equity and liabilities


4,825


5,745


5,059










Fletcher King Plc

 

Consolidated Interim Statement of Changes in Equity

for the 6 months ended 31 October 2016

 







Profit






Share


Share


and



TOTAL



capital


premium


loss



EQUITY



£000


£000


£000



£000











Balance at 1 May 2016


921


140


2,844



3,905





















Total comprehensive income for the period


            -


            -


126



126

Equity dividends paid


            -


            -


(92)



(92)











Balance at 31 October 2016 (Unaudited)


921


140


2,878



3,939





















Balance at 1 May 2015


921


140


2,682



3,743





















Total comprehensive income for the period


            -


            -


945



945

Equity dividends paid

 


            -

 


            -

 


(806)

 



(806)

 











Balance at 31 October 2015  (Unaudited)


921

 


140

 


2,821

 



3,882

 





















Balance at 1 May 2015


921


140


2,682



3,743











Total comprehensive income for the period


            -


            -


1,060



1,060

Equity dividends paid

 


            -

 


            -

 


(898)

 



(898)

 











Balance at 30 April 2016 (Audited)


921


140


2,844



3,905



Fletcher King Plc

 

Consolidated Interim Statement of Cash Flows

for the 6 months ended 31 October 2016

 



6 months ended


6 months ended


Year ended



31 October


31 October


30 April



2016 (Unaudited)


2015 (Unaudited)


2016

(Audited)



£000


£000


£000








Cash flows from operating activities







Profit before taxation from continuing operations

163


1,187


1,355

Adjustments for:







Depreciation expense


17


17


34

Profit on sale of investments


-


(590)


(593)

Income from investments


(11)


(10)


(22)

Finance income


(6)


(5)


(11)








Cash flows from operating activities







before movement in working capital


163


599


763







Decrease/(increase) in trade and other receivables

105


311


284

(Decrease)/increase in trade and other payables

(306)


369


(291)








Cash (absorbed)/generated from operations


(38)


1,279


756

Taxation received/(paid)


2


17


(91)








Net cash flows from operating activities


(36)


1,296


665








Cash flows from investing activities







Purchase of investments


(94)


(752)


   (1,274)

Sale of investments


-


1,465


1,468

Finance income


6


5


11

Income from investments

 


11

 


10

 


22

 








Net cash flows from investing activities

 


(77)

 


728

 


227

 








Cash flows from financing activities







Dividends paid to shareholders

 


(92)

 


(806)

 


(898)

 








Net cash flows from financing activities

 


(92)

 


(806)

 


(898)

 

Net increase/(decrease) in cash and cash equivalents


(205)


1,218


(6)

 

Cash and cash equivalents at start of period

2,846


2,852


2,852

 

Cash and cash equivalents







at end of period

 


2,641

 


4,070

 


2,846

 



 

Fletcher King Plc

 

Explanatory Notes

 

1.     General information

 

The Company is a public limited company incorporated and domiciled in England and Wales. The address of its registered office is 61 Conduit Street, London W1S 2GB.

 

These interim financial statements were approved by the Board of Directors on 14 December 2016.

 

2.     Basis of preparation

 

The interim financial information in this report has been prepared using accounting policies consistent with IFRS as adopted by the European Union.  IFRS is subject to amendment and interpretation by the International Accounting Standards Board (IASB) and the International Financial Reporting Standards Interpretations Committee and there is an ongoing process of review and endorsement by the European Commission. The financial information has been prepared on the basis of IFRS that the Directors expect to be adopted by the European Union and applicable as at 30 April 2017.

 

The accounting policies applied are consistent with those of the annual financial statements for the year ended 30 April 2016. There are no new standards interpretations and amendments, effective for the first time from 1 May 2016, that have had a material effect on the financial statements of the Group.

 

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.

 

3.     Non Statutory Accounts

 

The financial information for the period ended 30 April 2016 set out in this interim report does not constitute the Group's statutory accounts for that period. Whilst the financial figures included in this interim report have been computed in accordance with IFRS, this interim report does not contain sufficient information to constitute an interim financial report as that term is defined in IAS34. The statutory accounts for the year ended 30 April 2016 have been delivered to the Registrar of Companies. The auditors reported on those accounts; their report was unqualified, did not contain a statement under either Section 498(2) or Section 498(3) of the Companies Act 2006 and did not include references to any matters to which the auditor drew attention by way of emphasis.

 

The financial information for the 6 months ended 31 October 2016 and 31 October 2015 is unaudited.

 

4.     Earnings per share


6 months to 31 October 2016

Number

6 months to 31 October 2015

Number

Year ended 30 April 2016

Number

 

Weighted average number of shares for basic earnings per share

 

9,209,779

 

9,209,779

 

9,209,779

Share options

600,000

-

-

 

Total for diluted

 

9,809,779

 

9,209,779

 

9,209,779






 

£000

 

 

£000

 

£000

 

Earnings for basic and diluted earnings per share:

 

 

126

 

945

 

1,060

 

Basic earnings per share

 

 

1.37p

 

10.26p

 

11.51p

Diluted earnings per share

1.28p

10.26p

11.51p

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Half-year Report - RNS