TIDMFLK
RNS Number : 8704D
Fletcher King PLC
12 July 2016
FLETCHER KING PLC
Preliminary Results for the Year Ending 30(th) April 2016
Highlights
-- Revenue for the year of GBP4,633,000 (2015: GBP3,380,000)
-- Profit before tax of GBP1,355,000 (2015: GBP461,000)
-- Profit after tax of GBP1,060,000 (2015: GBP359,000)
-- Basic and diluted earnings per share of 11.51p (2015: 3.90p)
-- Final dividend of 1.00p per share. An interim dividend of
1.00p per share was paid together with a special dividend of 8.00p
per share and therefore the total ordinary dividend for the year
will be 10.00p per share (2015: 2.25p)
Commenting on the results, David Fletcher, chairman of Fletcher
King Plc said:
"Our excellent performance this year was significantly
influenced by the fees and profits earned on the sale of 145
Leadenhall Street, a property owned by the SHIPS 14 Syndicate in
which the company co-invested and acted as adviser. The underlying
business performed much in line with last year.
The unexpected vote to leave the EU has had a destabilising
effect on the market and the uncertainties are likely to influence
it for some time to come. However, with no debt and cash reserves,
we are well placed to weather challenging times as we have done on
numerous occasions in the past."
For further information, please call:
David Fletcher/ Peter
Bailey, Fletcher King 020 7493 8400
James Caithie, Cairn
Financial Advisers LLP 020 7148 7900
CHAIRMAN'S STATEMENT
Results
Revenue for the year was GBP4,633,000 (2015: GBP3,380,000). In
addition, profit on disposal of property investments amounted to
GBP593,000 (2015: GBPnil). Profit before tax was GBP1,355,000
(2015: GBP461,000).
The Board is proposing a final dividend of 1.00p per share. The
final dividend is subject to shareholder approval at the AGM and
will be paid on the 7 October 2016 to those shareholders on the
register at close of business on 9 September 2016. With the interim
dividend of 1.00p per share (2015: 1.50p per share) plus the
special dividend of 8.00p per share already paid, the dividend for
the year will amount to 10.00p per share (2015: 2.25p per
share).
The Commercial Property Market
The market generally has seen reasonably strong demand from both
tenants and investors. However this demand diminished somewhat in
the lead up to the EU referendum. This was particularly noticeable
in the investment market. The stamp duty increase of 1% didn't help
and data from the Investment Property Databank (IPD) showed capital
values in Q1 2016 falling for the first time for some years albeit
by only 0.2%. UK investors have been net sellers in Q4 2015 and Q1
2016 and the outlook post Brexit is currently uncertain.
Business Overview
As reported in the Interim Results, our excellent performance
this year was significantly influenced by the fees and profits
earned on the sale of 145 Leadenhall Street, a property owned by
the SHIPS 14 Syndicate in which the Group co-invested and acted as
adviser. The sale of the property and the payment of a special
dividend of 8p per share was announced on 1 September 2015.
During the year, we established two new SHIPS funds to acquire
freehold office buildings in Botolph Lane adjacent to Monument Tube
Station in the City and a building in Sekforde Street, Clerkenwell.
They will become vacant by the end of 2016 when refurbishment works
will commence. We anticipate having them available to let in
2017.
The underlying business continued to perform well with all
departments performing much in line with last year. Valuation
instructions increased significantly, reflecting increased bank
lending to the commercial property sector. The Valuation Office has
again slowed down settlement of Rating Appeals which affected
turnover, but we still settled some significant assessments.
Outlook
We have started the year well and have completed the sale of
over GBP50m of office and industrial investments.
The unexpected vote to leave the EU has had a destabilising
effect on the market and the uncertainties are likely to influence
it for some time to come.
Clients are delaying decisions to sell and purchase investment
property and this is not helpful for our transaction business.
The effect of this is impossible to predict but we are debt free
and have cash reserves. We are well placed to weather challenging
times as we have done on numerous times in the past.
I hope that later in the year the market will establish a
pattern and give confidence to our clients to move forward.
DAVID FLETCHER
CHAIRMAN
12 July 2016
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 April 2016
Note 2016 2015
GBP000 GBP000
Revenue 4,633 3,380
Employee benefits expense (2,640) (1,843)
Depreciation expense (34) (36)
Other operating expenses (1,230) (1,057)
-------- --------
Operating profit 729 444
Profit on disposal of available 593 -
for sale investments
Income from investments 22 4
Finance income 11 13
-------- --------
Profit before taxation 1,355 461
Taxation (295) (102)
-------- --------
Profit and total comprehensive
income for the year attributable
to equity shareholders 1,060 359
Basic and diluted earnings
per share 3 11.51p 3.90p
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 April 2016
2016 2015
GBP000 GBP000
Assets
Non-current assets
Property, plant and equipment 50 84
Available-for-sale investments 1,274 875
Deferred tax assets 18 18
------- -------
1,342 977
------- -------
Current assets
Trade and other receivables 871 1,149
Cash and cash equivalents 2,846 2,852
------- -------
3,717 4,001
------- -------
Total assets 5,059 4,978
------- -------
Liabilities
Current liabilities
Trade and other payables 346 516
Current taxation liabilities 282 78
Other payables 526 641
------- -------
1,154 1,235
------- -------
Total liabilities 1,154 1,235
------- -------
Shareholders' equity
Share capital 921 921
Share premium 140 140
Retained Earnings 2,844 2,682
------- -------
Total shareholders' equity 3,905 3,743
------- -------
Total equity and liabilities 5,059 4,978
------- -------
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 30 April 2016
2016 2015
GBP000 GBP000
Cash flows from operating
activities
Profit before taxation
from continuing operations 1,355 461
Adjustments for:
Depreciation expense 34 36
Profit on disposal of available 593 -
for sale investments
Income from investments (22) (4)
Finance income (11) (13)
-------- -------
Cash flows from operating
activities before
movement in working capital 763 480
Decrease in trade and other
receivables 284 98
Decrease in trade and other
payables (291) (432)
-------- -------
Cash generated from operations 756 146
Taxation paid (91) (147)
-------- -------
Net cash flows from operating
activities 665 (1)
-------- -------
Cash flows from investing
activities
Purchase of fixed assets - (8)
Purchase of investments (1,274) (125)
Sale of investments 1,468 -
Finance income 11 13
Income from investments 22 4
-------- -------
Net cash flows from investing
activities 227 (116)
-------- -------
Cash flows from financing
activities
Dividends paid to shareholders (898) (345)
-------- -------
Net cash flows from financing
activities (898) (345)
-------- -------
Net decrease in cash and
cash equivalents (6) (462)
Cash and cash equivalents
at start of year 2,852 3,314
-------- -------
Cash and cash equivalents
at end of year 2,846 2,852
-------- -------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 April 2016
Note Share Share Retained TOTAL
capital premium Earnings EQUITY
GBP000 GBP000 GBP000 GBP000
Balance at 1 May 2014 921 140 2,668 3,729
Total comprehensive
income for the year - - 359 359
Equity dividends paid 2 - - (345) (345)
Balance at 30 April
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
---------- ---------- ----------- ---------
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 2016. 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
2015 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 2016 have not yet been
delivered to the Registrar of Companies, nor have the auditors yet
reported on them.
2. Dividends
Year ended 30 April 2016 2015
GBP000 GBP000
Equity dividends on ordinary
shares:
Declared and paid during year
Ordinary final dividend for the
year ended 30 April 2015: 0.75p
per share (2014: 2.25p) 69 207
Special dividend for the year
ended 30 April 2016: 8.00p per
share
Interim dividend for the year 737 -
ended 30 April 2016: 1.00p per
share (2015: 1.50p) 92 138
------- -------
898 345
------- -------
Proposed ordinary final dividend
for the year ended
30 April 2016: 1.00p per share 92
-------
3. Earnings per share
2016 2015
No No
Weighted average number of shares
for basic and diluted earnings
per share 9,209,779 9,209,779
----------
GBP000 GBP000
Earnings for basic and diluted
earnings per share 1,060 359
Basic and diluted earnings per
share 11.51p 3.90p
This information is provided by RNS
The company news service from the London Stock Exchange
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