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Fletcher King PLC  -  FLK   

Final Results

Released 12:31 13-Jul-2018

RNS Number : 6254U
Fletcher King PLC
13 July 2018
 

FLETCHER KING PLC

Preliminary Results for the Year Ending 30th April 2018

 

Highlights

 

·   Revenue for the year of  £3,080,000 (2017: £4,094,000)

·   Profit before tax of £274,000 (2017: £738,000)

·   Profit after tax of £209,000 (2017: £579,000)

·   Basic earnings per share of 2.27p (2017: 6.29p)

·   Final dividend of 0.75p per share. An interim dividend of 1.00p per share was paid and therefore the total ordinary dividend for the year will be 1.75p per share (2017: 4.00p)

 

 

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

 

"The results for the year were undoubtedly disappointing and did not live up to management's expectations, but we start the new year with some good sales instructions and good recurring revenue. Our balance sheet remains strong."

 

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 £3,080,000 (2017: £4,094,000). Profit before tax was £274,000 (2017: £738,000).

 

The board is proposing a final dividend of 0.75p per share. The final dividend is subject to shareholder approval at the AGM and will be paid on 5 October 2018 to those shareholders on the register at the close of business on 7 September 2018. With the interim dividend of 1.00p per share (2017:1.00p) the dividend for the year will amount to 1.75p per share (2017: 4.00p per share).

 

The Commercial Property Market

 

As stated in the Trading Update issued on 23 May, Brexit uncertainty continues to impact the Central London office letting market but the capital markets remain strong.

 

Both overseas and domestic buyers remain active, particularly for industrials and city centre offices, and prices are generally stable.

 

Online retail sales are growing and they are adversely affecting the high street. This is likely to remain the case for some time to come.

 

Business Overview

 

Performance was disappointing and did not meet management expectations.

 

The uncertainties, mentioned above, impacted our ability to let the two SHIPS buildings in the City and Clerkenwell although both buildings do have some of the space occupied. As a result, earnings from the sale of these buildings did not materialise as anticipated. However our volume of investment property sales held up well.

 

It was a disappointing year for agreeing rating appeals, with the Valuation Office delaying settlements and our valuation work was also down on the previous years.

 

Property management continues to provide a steady income flow.

 

Outlook

 

Brexit uncertainties will continue to impact the markets but we start the year with a good volume of investment sales. We would hope to let and sell the two SHIPS properties during the coming year but not perhaps in the first half. Our capital markets team have some significant sales instructions of both industrials and London office buildings which we anticipate will be completed this coming year. 

 

There is significant pressure on the Valuation Office to engage on Rating Appeals and we would hope to benefit from that. We have some substantial appeals in the pipeline which should come to fruition this coming year. During the year we have added new clients including advising on the Rating of The Scalpel, a recently completed 35 storey 380,000sq.ft. office tower in Lime Street EC3.

 

The banks continue to be active lenders to the commercial property market and that will benefit our valuation work. The new year has started well which is an encouraging sign.

 

Forecasting what might happen in the coming year remains as difficult as it was this time last year. However we manage the business conservatively and continue to have a strong balance sheet.

 

Our loyal client base and excellent and hardworking team give us confidence for the future.

 

DAVID FLETCHER

CHAIRMAN

13 July 2018

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the year ended 30 April 2018

 

 

Note

2018

2017

 

 

£000

£000

 

 

 

 

 

 

 

 

Revenue

 

3,080

4,094

Employee benefits expense

 

(1,609)

(2,129)

Depreciation expense

 

(18)

(34)

Other operating expenses

 

(1,181)

(1,214)

 

 

 

 

Operating profit

 

272

717

 

 

 

 

Income from investments

 

-

12

Finance income

 

2

9

 

 

 

 

Profit before taxation

 

274

738

 

 

 

 

 

 

 

 

Taxation

 

(65)

(159)

 

 

 

 

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

 

 

 

 

209

 

579

Basic earnings per share

Diluted earnings per share

 

3

3

 

2.27p

2.25p

 

6.29p

6.29p

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 April 2018

 

 

 

 

2018

2017

 

£000

£000

 

 

 

Assets

 

 

Non-current assets

 

 

Property, plant and equipment

12

16

Available-for-sale investments

1,588

1,588

Deferred tax assets

16

16

 

1,616

1,620

 

 

 

Current assets

 

 

Trade and other receivables

917

1,495

Cash and cash equivalents

2,628

2,733

 

3,545

4,228

 

 

 

 

 

 

 

 

 

Total assets

5,161

5,848

 

 

 

Liabilities

 

 

Current liabilities

 

 

Trade and other payables

485

568

Current taxation liabilities

43

97

Other payables

492

883

 

1,020

1,548

 

 

 

 

 

 

Total liabilities

1,020

1,548

 

 

 

Shareholders' equity

 

 

Share capital

921

921

Share premium

140

140

Retained Earnings

3,080

3,239

Total shareholders' equity

4,141

4,300

 

 

 

Total equity and liabilities

5,161

5,848

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

for the year ended 30 April 2018

 

 

 

 

2018

2017

 

£000

£000

 

 

 

Cash flows from operating activities

 

 

Profit before taxation from continuing operations

274

738

Adjustments for:

 

 

Depreciation expense

18

34

Income from investments

-

(12)

Finance income

(2)

(9)

 

 

 

Cash flows from operating activities before

movement in working capital

 

 

290

751

Decrease/(increase) in trade and other receivables

578

(624)

(Decrease)/increase in trade and other payables

(474)

579

 

 

 

Cash generated from operations

394

706

 

 

 

Taxation paid

(119)

(342)

 

 

 

Net cash flows from operating activities

275

364

 

 

 

Cash flows from investing activities

 

 

Purchase of investments

-

(314)

Purchase of fixed assets

(14)

-

Finance income

2

9

Income from investments

-

12

Net cash flows from investing activities

(12)

(293)

 

 

 

Cash flows from financing activities

 

 

Dividends paid to shareholders

(368)

(184)

Net cash flows from financing activities

(368)

(184)

 

 

 

Net decrease in cash and cash equivalents

(105)

(113)

Cash and cash equivalents at start of year

2,733

2,846

Cash and cash equivalents at end of year

2,628

2,733

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 30 April 2018

 

 

 

 

Note

 

Share

capital

 

Share

premium

 

Retained

Earnings

 

TOTAL

EQUITY

 

 

£000

£000

£000

£000

 

 

 

 

 

 

Balance at 1 May 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

 

 

 

 

 

 

Total comprehensive income for the year

 

-

-

209

209

Equity dividends paid

2

-

-

(368)

(368)

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 30 April 2018

 

921

140

3,080

4,141

 

 

 

 

 

 

 

 

 

 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 2018.  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 2017 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 2018 have not yet been delivered to the Registrar of Companies, nor have the auditors yet reported on them.

 

2.  Dividends

 

 

Year ended 30 April

2018

2017

 

£000

£000

 

 

 

Equity dividends on ordinary shares:

 

 

Declared and paid during year

 

 

Ordinary final dividend for the year ended 30 April 2017: 3.00p per share (2016:  1.00p)

276

 

92

 

Interim dividend for the year ended 30 April 2018: 1.00p per share (2017: 1.00p)

92

92

 

 

 

 

368

184

 

 

 

Proposed ordinary final dividend for the year ended

30 April 2018: 0.75p per share

 

69

 

 

 

 

 

 

3. Earnings per share

 

 

2018

No

2017

No

 

 

 

Weighted average number of shares for basic earnings per share

Share options

9,209,779

58,907

9,209,779

-

 

Weighted average number of shares for diluted earnings per share

 

9,268,686

 

 

9,209,779

 

 

 

£000

 

£000

 

Earnings for basic and diluted earnings per share

 

209

 

579

 

Basic earnings per share

 

2.27p

 

 

6.29p

 

Diluted earnings per share

 

2.25p

6.29p

 

 

 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
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Final Results - RNS