Regulatory Story
Go to market news section View chart   Print
RNS
Fletcher King PLC  -  FLK   

Final Results

Released 07:00 13-Jul-2017

RNS Number : 9211K
Fletcher King PLC
13 July 2017
 

FLETCHER KING PLC

Preliminary Results for the Year Ending 30th April 2017

 

Highlights

 

·   Revenue for the year of  £4,094,000 (2016: £4,633,000)

·   Profit before tax of £738,000 (2016: £1,355,000)

·   Profit after tax of £579,000 (2016: £1,060,000)

·   Basic and diluted earnings per share of 6.29p (2016: 11.51p)

·   Final dividend of 3.00p per share. An interim dividend of 1.00p per share was paid and therefore the total ordinary dividend for the year will be 4.00p per share (2016: 10.00p)

 

 

Commenting on the results, David Fletcher, chairman of Fletcher King Plc said:

 

"We are pleased with the results for the year. In particular, our second half turned out better than we expected largely due to a higher volume of sales post Brexit than anticipated. All departments performed well during the year and some significant rating appeals were settled despite the Valuation Office continuing to procrastinate on listing appeals. Valuations were steady and asset management enjoyed a better than average year.

 

We have again started the year with a significant volume of potential sales and are hopeful that at least one of our current SHIPS schemes will be let and sold, most likely in the second half.

 

Brexit uncertainty and the outcome of the General Election will undoubtedly continue to influence the market and it is impossible at this stage to estimate that impact. Uncertainty is never positive and we expect transactions will prove more difficult to complete. However, this may produce interesting buying opportunities for SHIPS and other clients."

 

END

 

For further information, please call:

David Fletcher/ Peter Bailey, Fletcher King           020 7493 8400

James Caithie, Cairn Financial Advisers LLP           020 7213 0880

 

CHAIRMAN'S STATEMENT

 

Results

 

Revenue for the year was £4,094,000 (2016: £4,633,000). Profit on disposal of property investment was £nil (2016: £593,000). Profit before tax was £738,000 (2016: £1,355,000).

 

The board is proposing a final dividend of 3.00p per share. The final dividend is subject to shareholder approval at the AGM and will be paid on 6 October 2017 to those shareholders on the register at the close of business on 8 September 2017. With the interim dividend of 1.00p per share (2016:1.00p) the dividend for the year will amount to 4.00p per share (2016: 10.00p per share).

 

 

The Commercial Property Market

 

The unexpected EU Referendum result in June 2016 has brought significant uncertainty to the market. However, after initial market turmoil, demand for commercial investment property remained reasonably strong and we transacted a higher level of sales than anticipated at very competitive prices, particularly for industrial investments. Only in the case of Central London sales were prices at marginally below Brexit levels. It was noticeable that although there were fewer buyers in the market there was still competitive bidding for the majority of our sales.

 

The letting market was by contrast more influenced by the uncertainties and Central London office rents have generally fallen by circa 5% to 10% and demand is definitely somewhat muted.

 

 

Business Overview

 

We are pleased with the results for the year. In particular, our second half turned out better than we expected largely due to a higher volume of sales post Brexit than anticipated. All departments performed well during the year and some significant rating appeals were settled despite the Valuation Office continuing to procrastinate on listing appeals. Valuations were steady and asset management enjoyed a better than average year.

 

 

Outlook

 

We have again started the year with a significant volume of potential sales and are hopeful that at least one of our current SHIPS properties will be let and sold, most likely in the second half.

 

Brexit uncertainty and the outcome of the General Election will undoubtedly continue to influence the market and it is impossible at this stage to estimate that impact. Uncertainty is never positive and we expect transactions will prove more difficult to complete. However, this may produce interesting buying opportunities for SHIPS and other clients.

 

It is very difficult to forecast what might happen in the coming year but we have a strong balance sheet, very loyal clients and hard working staff so we are well placed for the challenges ahead.

 

 

DAVID FLETCHER

CHAIRMAN

13 July 2017

 

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the year ended 30 April 2017

 


Note

2017

2016



£000

£000









Revenue


4,094

4,633

Employee benefits expense


(2,129)

(2,640)

Depreciation expense


(34)

(34)

Other operating expenses


(1,214)

(1,230)





Operating profit


717

729





Profit on disposal of available for sale investments


-

593

Income from investments


12

22

Finance income


9

11





Profit before taxation


738

1,355









Taxation


(159)

(295)





Profit and total comprehensive income for the year attributable to equity shareholders

 

 


 

579

 

1,060

Basic and diluted earnings per share

 

3

 

6.29p

 

11.51p

 



















CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 April 2017

 

 

 


2017

2016


£000

£000




Assets



Non-current assets



Property, plant and equipment

16

50

Available-for-sale investments

1,588

1,274

Deferred tax assets

16

18


1,620

1,342




Current assets



Trade and other receivables

1,495

871

Cash and cash equivalents

2,733

2,846


4,228

3,717










Total assets

5,848

5,059




Liabilities



Current liabilities



Trade and other payables

568

346

Current taxation liabilities

97

282

Other payables

883

526


1,548

1,154







Total liabilities

1,548

1,154




Shareholders' equity



Share capital

921

921

Share premium

140

140

Retained Earnings

3,239

2,844

Total shareholders' equity

4,300

3,905




Total equity and liabilities

5,848

5,059




 

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

for the year ended 30 April 2017

 

 

 


2017

2016


£000

£000




Cash flows from operating activities



Profit before taxation from continuing operations

738

1,355

Adjustments for:



Depreciation expense

34

34

Profit on disposal of available for sale investments

-

593

Income from investments

(12)

(22)

Finance income

(9)

(11)




Cash flows from operating activities before

movement in working capital



751

763

Decrease in trade and other receivables

(624)

284

Decrease in trade and other payables

579

(291)




Cash generated from operations

706

756




Taxation paid

(342)

(91)




Net cash flows from operating activities

364

665




Cash flows from investing activities



Purchase of investments

(314)

(1,274)

Sale of investments

-

1,468

Finance income

9

11

Income from investments

12

22

Net cash flows from investing activities

(293)

227




Cash flows from financing activities



Dividends paid to shareholders

(184)

(898)

Net cash flows from financing activities

(184)

(898)




Net decrease in cash and cash equivalents

(113)

(6)

Cash and cash equivalents at start of year

2,846

2,852

Cash and cash equivalents at end of year

2,733

2,846

 

 

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 30 April 2017

 

 


 

Note

 

Share

capital

 

Share

premium

 

Retained

Earnings

 

TOTAL

EQUITY



£000

£000

£000

£000







Balance at 1 May 2015


921

140

2,682

3,743







Total comprehensive income for the year


-

-

1,060

1,060

Equity dividends paid

2

-

-

(898)

(898)







Balance at 30 April 2016


921

140

2,844

3,905







Total comprehensive income for the year


-

-

579

579

Equity dividends paid

2

-

-

(184)

(184)













Balance at 30 April 2017


921

140

3,239

4,300







 

 

 

 

NOTES

 

 

1. Basis of preparation

 

The financial information set out above, which has been prepared on the basis of the accounting policies as set out in the prior year's accounts, does not comprise the company's statutory financial statements for the year ended 30 April 2017.  While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRSs) as adopted by the European Union, this announcement does not itself contain sufficient information to comply with IFRSs. Statutory financial statements for the previous financial year ended 30 April 2016 have been delivered to the Registrar of Companies. The auditors' report on those financial statements was unqualified and did not contain any statement under section 498(2) or (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 statutory accounts for the year ended 30 April 2017 have not yet been delivered to the Registrar of Companies, nor have the auditors yet reported on them.

 

2.  Dividends

 

 

Year ended 30 April

2017

2016


£000

£000




Equity dividends on ordinary shares:



Declared and paid during year



Ordinary final dividend for the year ended 30 April 2016: 1.00p per share (2015:  0.75p)

 

92

 

69

Special dividend for the year ended 30 April 2017: £nil (2016: 8.00p per share

Interim dividend for the year ended 30 April 2017: 1.00p per share (2016: 1.00p)

-

 

92

737

 

92





184

898




Proposed ordinary final dividend for the year ended

30 April 2017: 3.00p per share

 

276

 

 




 

3. Earnings per share

 


2017

No

2016

No




Weighted average number of shares for basic and diluted earnings per share

9,209,779

 

9,209,779




 

 

£000

£000

Earnings for basic and diluted earnings per share

579

1,060










Basic and diluted earnings per share

 

6.29p

 

11.51p

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
FR RTMPTMBBBBIR
Close


London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.

 


Final Results - RNS