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Fletcher King PLC  -  FLK   

Half-year Report

Released 07:41 18-Dec-2017

RNS Number : 6089Z
Fletcher King PLC
18 December 2017
 

FLETCHER KING PLC

 

Interim Results for the 6 months ended 31 October 2017

 

 

Financial Highlights

 

                  Turnover   :           £1,489,000               (2016: £1,680,000)

                 

                  PBT           :           £148,000                  (2016: £163,000)

 

                  Basic EPS :           1.26p per share       (2016: 1.37p per share)

 

                  Dividend   :           1.00p per share       (2016: 1.00p per share)

 

 

Operational Highlights

·    Performance continues to be supported by steady and predictable revenue from asset management and fund management clients.

·    Revenues from ratings appeals and valuations were lower than normal during the period but this was compensated by a good volume of property sales.

·    The two SHIPS properties, in which the company co-invests and acts as adviser, are now on the market for letting following completion of refurbishment programs.

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

"We had a reasonable first half which was much in line with expectations. Brexit uncertainty will continue to impact the market and sentiment will remain cautious. However, we expect steady progress for the remainder of the year during which we hope to have fully let and sold at least one of our SHIPS investment properties".

 

 

ENQUIRIES:

 

Fletcher King Plc

David Fletcher

Tel: 020 7493 8400

 

Cairn Financial Advisers LLP (Nomad)

James Caithie / Tony Rawlinson

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 £1,489,000 (2016: £1,680,000) with a profit before tax of £148,000 (2016: £163,000). Your Directors have declared an interim dividend of 1.0p per share (2016: 1.0p per share) to be paid on 16 February 2018 to shareholders on the register at the close of business on 19 January 2018.

 

The Commercial Property Market

 

Overall, with the exception of the retail sector, both the capital and leasing markets have generally held up well despite continued uncertainty surrounding the terms of our exit from the EU.

 

The letting market for industrials is very strong, almost throughout the country, and is fuelled by the increase of online shopping. Conversely internet shopping is adversely impacting the retail letting market where demand is generally poor and rents are falling in many traditional high streets.

 

Office rents in the major regional cities have been rising and demand is generally good. However, Central London office rents, particularly in the City, have fallen back from their previous highs but take-up is still reasonable for the very best stock.

 

The investment market is very strong for industrials and well located offices and yields on industrials, in particular, are at their lowest ever. Retail however remains resolutely in the doldrums. 

 

Business Overview

 

We had a reasonable first half which was much in line with expectations. The investment department was busy with a good volume of sales.

 

The Valuation Office Agency continues to be very slow to progress outstanding 2010 Rating List appeals. Our volume of business was lower than anticipated as was the volume of bank valuation instructions.

 

The asset management department continues to produce a steady and secure income flow.

 

Outlook

 

Brexit uncertainty will continue to impact the market and sentiment will remain cautious.

 

We expect steady progress for the remainder of the year and there are signs of a pick-up in the volume of valuation instructions and rating appeals being listed for a hearing.

 

The investment department has some good sales instructions which should be completed in the second half.

 

The refurbishment of our two SHIPS properties is completed. The letting of the City building is slow but we have good interest in Clerkenwell. We would hope to have let and sold one of them by the year end. 

 

 

 

David Fletcher

Chairman

15 December 2017

 



Fletcher King Plc

 

Consolidated Interim Statement of Comprehensive Income

 for the 6 months ended 31 October 2017

 


6 months ended


6 months ended


Year ended


31 October


31 October


30 April


2017

(Unaudited)


2016

(Unaudited)


2017 (Audited)


£000


£000


£000







Revenue

1,489


1,680


4,094

Employee benefits expense

(750)


(927)


(2,129)

Depreciation expense

(17)


(17)


(34)

Other operating expenses

(575)


(590)


(1,214)







Operating profit

147


146


717







Income from investments

-


11


12

Finance income

1


6


9

 

Profit before taxation

148


163


738







Taxation

 

(32)

 


(37)

 


(159)

 







Profit for the period

 

116

 


126

 


579

 







 

Total comprehensive income for the period

116


126


579







 

Earnings per share (note 4)






- Basic

1.26p


1.37p


6.29p

- Diluted

1.25p


1.37p


6.29p

 

Dividends per share






Interim dividend proposed

1.00p


1.00p


-

Dividends paid

1.00p


1.00p


4.00p



Fletcher King Plc

 

Consolidated Interim Statement of Financial Position

as at 31 October 2017

 



31 October


31 October


30 April



2017

(Unaudited)


2016

(Unaudited)


2017

(Audited)



£000


£000


£000








Assets







Non-current assets







Property, plant and equipment


13


32


16

Available for sale investments


1,588


1,368


1,588

Deferred tax assets


16


18


16

















1,617


1,418


1,620















Current Assets







Trade and other receivables


937


766


1,495

Cash and cash equivalents


2,187


2,641


2,733

















3,124


3,407


4,228















Total assets


4,741


4,825


5,848






















Liabilities







Current liabilities







Trade and other payables


280


200


568

Current taxation liabilities


35


320


97

Other creditors


286


366


883















Total liabilities


601


886


1,548






















Shareholders' equity







Share capital


921


921


921

Share premium


140


140


140

Reserves


3,079


2,878


3,239















Total shareholders' equity


4,140


3,939


4,300















Total equity and liabilities


4,741


4,825


5,848










Fletcher King Plc

 

Consolidated Interim Statement of Changes in Equity

for the 6 months ended 31 October 2017

 







Profit






Share


Share


and



TOTAL



capital


premium


loss



EQUITY



£000


£000


£000



£000











Balance at 1 May 2017


921


140


3,239



4,300





















Total comprehensive income for the period


            -


            -


116



116

Equity dividends paid


            -


            -


(276)



(276)











Balance at 31 October 2017 (Unaudited)


921


140


3,079



4,140





















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 2016


921


140


2,844



3,905











Total comprehensive income for the period


            -


            -


579



579

Equity dividends paid

 


            -

 


            -

 


(184)

 



(184)

 











Balance at 30 April 2017 (Audited)


921


140


3,239



4,300



Fletcher King Plc

 

Consolidated Interim Statement of Cash Flows

for the 6 months ended 31 October 2017

 



6 months ended


6 months ended


Year ended



31 October


31 October


30 April



2017 (Unaudited)


2016 (Unaudited)


2017

(Audited)



£000


£000


£000








Cash flows from operating activities







Profit before taxation from continuing operations

148


163


738

Adjustments for:







Depreciation expense


17


17


34

Income from investments


-


(11)


(12)

Finance income


(1)


(6)


(9)








Cash flows from operating activities







before movement in working capital


164


163


751







Decrease/(increase) in trade and other receivables

558


105


(624)

(Decrease)/increase in trade and other payables

(885)


(306)


579








Cash (absorbed)/generated from operations


(163)


(38)


706

Taxation (paid)/ received


(94)


2


(342)








Net cash flows from operating activities


(257)


(36)


364








Cash flows from investing activities







Purchase of investments


-


(94)


   (314)

Purchase of fixed assets


(14)


-


-

Finance income


1


6


9

Income from investments

 


-

 


11

 


12

 








Net cash flows from investing activities

 


(13)

 


(77)

 


(293)

 








Cash flows from financing activities







Dividends paid to shareholders

 


(276)

 


(92)

 


(184)

 








Net cash flows from financing activities

 


(276)

 


(92)

 


(184)

 

Net (decrease)/ increase in cash and cash equivalents


(546)


(205)


(113)

 

Cash and cash equivalents at start of period

2,733


2,846


2,846

 

Cash and cash equivalents







at end of period

 


2,187

 


2,641

 


2,733

 



 

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 15 December 2017.

 

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 2018.

 

The accounting policies applied are consistent with those of the annual financial statements for the year ended 30 April 2017 and corresponding interim period to 31 October 2016. There are no new standards interpretations and amendments, effective for the first time from 1 May 2017, 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 2017 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 2017 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 2017 and 31 October 2016 is unaudited.

 

4.     Earnings per share


6 months to 31 October 2017

Number

6 months to 31 October 2016

Number

Year ended 30 April 2017

Number

 

Weighted average number of shares for basic earnings per share

 

9,209,779

 

9,209,779

 

9,209,779

Share options

58,907

-

-

Weighted average number of shares for diluted earnings per share

9,268,686

9,209,779

9,209,779


 

 

£000

 

 

 

£000

 

 

£000

 

Earnings for basic and diluted earnings per share:

 

 

116

 

126

 

579

 

 

Basic earnings per share

 

 

 

1.26p

 

 

1.37p

 

 

6.29p

Diluted earnings per share

 

1.25p

1.37p

6.29p

 


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