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Fletcher King PLC   -  FLK   

Final Results

Released 07:00 31-Jul-2019

RNS Number : 2749H
Fletcher King PLC
31 July 2019
 

 

FLETCHER KING PLC

Audited results for the Year Ending 30th April 2019

 

Highlights

 

·   Revenue for the year of £3,053,000 (2018: £3,080,000)

·   Profit before tax of £282,000 (2018: £274,000)

·   Profit after tax of £230,000 (2018: £209,000)

·   Basic earnings per share of 2.50p (2018: 2.27p)

·   Final dividend of 0.75p per share proposed. 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 (2018: 1.75p)

 

 

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

 

"Performance for the year turned out very much in line with last year despite challenging market conditions.

 

Ongoing political and Brexit uncertainties are likely to continue to negatively impact the UK property markets in which we operate and it will be increasingly difficult to maintain profitability. However, our strong balance sheet is significant in such times and secures our ability to maintain dividend payments to shareholders".

 

This announcement contains inside information for the purposes of Article 7 of EU regulations 596/2014.

 

END

 

For further information, please call:

David Fletcher/Peter Bailey, Fletcher King            020 7493 8400

James Caithie/Tony Rawlinson, Cairn Financial Advisers LLP 020 7213 0880

 

 

 

 

 

CHAIRMAN'S STATEMENT

 

 

Results

 

Revenue for this year was £3,053,000 (2018: £3,080,000). Profit before tax was £282,000 (2018: £274,000).

 

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 4 October 2019 to shareholders on the register at close of business on 6 September 2019. With the interim dividend of 1.00p per share (2018: 1.00p) the dividend for this year will amount to 1.75p per share (2018: 1.75p per share).

 

The Commercial Property Market

 

The unprecedented political and Brexit uncertainties continue to severely impact lettings and sales in the UK commercial property market.

 

As the next Brexit deadline approaches, both investors and occupiers are likely to become increasingly cautious until this momentous issue is finally resolved.

 

However, there continues to be some reasonable traction in London and the major cities and it is clear that there are substantial funds available for investment once the future becomes more certain.

 

Generally, activity in the capital markets has slowed and prices have softened over the last 6 months.

 

The industrial market continues to be the best performing sector, followed by city centre offices. Retail continues to suffer with no end in sight to the rise in online sales, causing rental values to slide further and a corresponding fall in capital values.

 

Business Overview

 

Performance turned out very much in line with management expectations, and indeed in line with the previous year, and was achieved during challenging market conditions.

 

We transacted a good volume of investment property sales although market prices were lower towards the end of the period.

 

Property Management, Rating and Valuations all performed well although the Valuation Office continued to delay settlement of rating appeals which makes income forecasting difficult for that part of our business.

 

The Stratton House Investment Property Syndicates ("SHIPS"), in which we have an investment and are managers, have enjoyed some success in leasing up vacant space.

 

Two further floors in the Clerkenwell building were let earlier this calendar year and the last two vacant floors were let in July 2019.

 

The City building likewise achieved lettings of three floors during the financial year and a further floor was let in July 2019. Two floors remain to be let.

 

Outlook

 

Forecasting the future is more difficult than ever for the reasons outlined above. We have some good investment sales instructions but fewer than the same time last year.

 

Property management is hoping to secure further mandates and it will continue to provide a steady and secure income flow.

 

Rating income is entirely driven by the Valuation Office's willingness to engage in negotiations on the many challenges we have in the pipeline.

 

Currently the banks continue to lend and we anticipate a steady flow of valuation instructions.

 

As a result of the uncertainties I have outlined above it is impossible to accurately predict the outcome for the coming year as it becomes increasingly difficult to maintain profitability.

 

We manage the business conservatively and in such times a strong balance sheet, with liquidity and no debt, is of immense importance to our relationship with our clients and also in the recruitment and retention of our valuable staff. It also secures our ability to continue our unbroken record of dividend payment.

 

As always thanks must go to our loyal clients and hardworking colleagues.

 

DAVID FLETCHER

CHAIRMAN

30 July 2019

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the year ended 30 April 2019

 

 

Note

2019

2018

 

 

£000

£000

 

 

 

 

 

 

 

 

Revenue

 

3,053

3,080

Employee benefits expense

 

(1,648)

(1,609)

Depreciation expense

 

(3)

(18)

Other operating expenses

Other operating income

 

(1,218)

91

(1,242)

61

 

 

 

 

Operating profit

 

275

272

 

 

 

 

Finance income

 

7

2

 

 

 

 

Profit before taxation

 

282

274

 

 

 

 

 

 

 

 

Taxation

 

(52)

(65)

 

 

 

 

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

 

 

 

 

230

 

209

Basic earnings per share

Diluted earnings per share

 

3

3

 

2.50p

2.50p

 

2.27p

2.25p

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 April 2019

 

 

 

 

2019

2018

 

£000

£000

 

 

 

Assets

 

 

Non-current assets

 

 

Property, plant and equipment

9

12

Financial assets

1,603

1,588

Deferred tax assets

16

16

 

1,628

1,616

 

 

 

Current assets

 

 

Trade and other receivables

1,809

917

Cash and cash equivalents

2,001

2,628

 

3,810

3,545

 

 

 

 

 

 

 

 

 

Total assets

5,438

5,161

 

 

 

Liabilities

 

 

Current liabilities

 

 

Trade and other payables

1,204

977

Current taxation liabilities

24

43

 

1,228

1,020

 

 

 

 

 

 

Total liabilities

1,228

1,020

 

 

 

Shareholders' equity

 

 

Share capital

921

921

Share premium

140

140

Retained Earnings

3,149

3,080

Total shareholders' equity

4,210

4,141

 

 

 

Total equity and liabilities

5,438

5,161

 

 

 

 

 

  

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

for the year ended 30 April 2019

 

 

 

 

2019

2018

 

£000

£000

 

 

 

Cash flows from operating activities

 

 

Profit before taxation from continuing operations

282

274

Adjustments for:

 

 

Depreciation expense

3

18

Finance income

(7)

(2)

 

 

 

Cash flows from operating activities before

movement in working capital

 

 

278

290

(Increase)/decrease in trade and other receivables

(892)

578

Increase/(decrease) in trade and other payables

226

(474)

 

 

 

Cash (absorbed)/generated from operations

(388)

394

 

 

 

Taxation paid

(70)

(119)

 

 

 

Net cash flows from operating activities

(458)

275

 

 

 

Cash flows from investing activities

 

 

Purchase of investments

(15)

-

Purchase of fixed assets

-

(14)

Finance income

7

2

Net cash flows from investing activities

(8)

(12)

 

 

 

Cash flows from financing activities

 

 

Dividends paid to shareholders

(161)

(368)

Net cash flows from financing activities

(161)

(368)

 

 

 

Net decrease in cash and cash equivalents

(627)

(105)

Cash and cash equivalents at start of year

2,628

2,733

Cash and cash equivalents at end of year

2,001

2,628

 

 

 

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 30 April 2019

 

 

 

 

Note

 

Share

capital

 

Share

premium

 

Retained

Earnings

 

TOTAL

EQUITY

 

 

£000

£000

£000

£000

 

 

 

 

 

 

Balance at 1 May 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

 

 

 

 

 

 

Total comprehensive income for the year

 

-

-

230

230

Equity dividends paid

2

-

-

(161)

(161)

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 30 April 2019

 

921

140

3,149

4,210

 

 

 

 

 

 

 

 

 

 NOTES

 

 

1. Basis of preparation

 

The financial information set out in this announcement does not comprise the Group's statutory accounts for the year ended 30 April 2019. The financial information has been extracted from the statutory accounts of the Group for the year ended 30 April 2019. The auditors reported on these accounts. Their reports were unqualified and 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 statutory accounts for the year ended 30 April 2018 have been delivered to the Registrar of Companies, whereas those for the year ended 30 April 2019 will be delivered to the Registrar of Companies following the Company's annual general meeting. Except where noted in the statutory accounts the accounting policies are consistent with those applied in the preparation of the interim results for the period ended 31 October 2018 and the statutory accounts for the year ended 30 April 2018, which have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union.

 

2.  Dividends

 

 

Year ended 30 April

2019

2018

 

£000

£000

 

 

 

Equity dividends on ordinary shares:

 

 

Declared and paid during year

 

 

Ordinary final dividend for the year ended 30 April 2018: 0.75p per share (2017:  3.00p)

69

 

276

 

Interim dividend for the year ended 30 April 2019: 1.00p per share (2018: 1.00p)

92

92

 

 

 

 

161

368

 

 

 

Proposed ordinary final dividend for the year ended

30 April 2019: 0.75p per share

 

69

 

 

 

 

 

 

3. Earnings per share

 

 

2019

No

2018

No

 

 

 

Weighted average number of shares for basic earnings per share

Share options

9,209,779

-

9,209,779

58,907

 

Weighted average number of shares for diluted earnings per share

 

9,209,779

 

 

9,268,686

 

 

 

 

£000

 

£000

 

Earnings for basic and diluted earnings per share

 

230

 

209

 

Basic earnings per share

 

2.50p

 

 

2.27p

 

Diluted earnings per share

 

2.50p

2.25p

 

 

 

 


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