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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Fiske Plc | LSE:FKE | London | Ordinary Share | GB0003353157 | ORD 25P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 75.00 | 70.00 | 80.00 | 75.00 | 75.00 | 75.00 | 0.00 | 08:00:15 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Security Brokers & Dealers | 6.07M | 253k | 0.0214 | 35.05 | 8.87M |
Hot Features
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TIDMFKE
RNS Number : 4551R
Fiske PLC
23 August 2010
Fiske Plc
('Fiske' or 'the Company')
Final Results
Fiske Plc (the 'Company') announces its final results for the twelve months
ended 31 May 2010.
In accordance with rule 26 of the AIM Rules for Companies this information is
also available, under the Investors section, at the Company's website,
http://www.fiskeplc.com .
For further information please contact:
- Gerard Luchini, Fiske Plc - Compliance Officer
(tel: 020 7448 4700)
- Gerry Beaney/David Hignell, Grant Thornton Corporate Finance (Nominated
Adviser)
(tel: 020 7383 5100)
Chairman's Statement
The results for the year ended 31st May 2010 were much improved on the previous
year and at the pre- tax level we earned GBP435,000 as opposed to the loss of
GBP139,000 in 2009. The year has not been without its trials and tribulations
not least significantly greater payments to the Financial Services Compensation
Scheme Levy for us and our industry and the likelihood of further heavy costs in
the current year. However we have continued to contain our overall costs to
moderate levels.
Our revenues were impacted adversely by the current levels of interest rates, as
indeed were the incomes of our clients. It is a case of the prudent savers
paying for the follies of the bankers and the calculated extravagance of the
former government.
The integration of our acquisition, in April of last year, of Vor Financial
Strategy Limited has proceeded smoothly and its financial results have
gratifyingly exceeded management's expectations.
A satisfying aspect of our business over the past year has been the steady
increase in the level of funds under management. In essence we regard ourselves
primarily as managers and advisors of clients' funds and our future lies in that
direction rather than the corporate finance route chosen by many of our
competitors where we feel the conflicts of interest inhibiting.
We have chosen to remain in our present premises and have agreed a new ten year
lease with our landlords. Our personnel numbers remain fairly constant as we add
experienced brokers to our numbers to replace our retirees. We see that process
as a constructive evolution of the business. We are conscious of the ages of
some of our members but we do not feel it has been a drawback to our business
and we subscribe to the advantages that can be obtained by raising the
retirement age.
In view of our results for the year and our strong balance sheet the Board has
decided to pay a second interim dividend of 2p per share (last year 2p), which
with the first interim dividend of 2p (last year 2½p) already paid makes a total
of 4p per share (last year 4½p).
The current year has got off to a good start and we are encouraged at the
prospects for this year.
Our Annual General Meeting will be held at our offices at Salisbury House at
12.30 p.m. on Thursday, 30 September 2010 and we welcome shareholders to attend
our meeting and to meet our directors and staff.
Clive Fiske Harrison
Chairman
23 August 2010
Consolidated Statement of Comprehensive Income
For the year ended 31 May 2010
+------------------------------------+-------+---------+---------+
| | Notes | 2010 | 2009 |
+------------------------------------+-------+---------+---------+
| | | | |
| | | GBP000 | GBP000 |
+------------------------------------+-------+---------+---------+
| Continuing Operations | | | |
+------------------------------------+-------+---------+---------+
| Fee and commission income | 3 | 4,044 | 3,480 |
+------------------------------------+-------+---------+---------+
| Fee and commission expenses | 3 | (927) | (863) |
+------------------------------------+-------+---------+---------+
| Net fee and commission income | | 3,117 | 2,617 |
+------------------------------------+-------+---------+---------+
| Other income | 3 | 159 | 154 |
+------------------------------------+-------+---------+---------+
| Total Revenue | | 3,276 | 2,771 |
+------------------------------------+-------+---------+---------+
| | | | |
+------------------------------------+-------+---------+---------+
| Profit on disposal of | | 3 | - |
| available-for-sale investments | | | |
+------------------------------------+-------+---------+---------+
| Impairment on available-for-sale | | (15) | (27) |
| investments | | | |
+------------------------------------+-------+---------+---------+
| Profit/(loss) on investments held | | 115 | (107) |
| for trading | | | |
+------------------------------------+-------+---------+---------+
| Operating expenses | | (3,009) | (2,741) |
+------------------------------------+-------+---------+---------+
| Write-down of goodwill | 12 | - | (145) |
+------------------------------------+-------+---------+---------+
| Amortisation of intangibles | 13 | - | (45) |
+------------------------------------+-------+---------+---------+
| Operating profit/(loss) | 6 | 370 | (294) |
+------------------------------------+-------+---------+---------+
| | | | |
+------------------------------------+-------+---------+---------+
| Investment revenue | | 44 | 52 |
+------------------------------------+-------+---------+---------+
| Finance income | 7 | 27 | 109 |
+------------------------------------+-------+---------+---------+
| Finance costs | 8 | (6) | (6) |
+------------------------------------+-------+---------+---------+
| Profit/(loss) on ordinary | | 435 | (139) |
| activities before taxation | | | |
+------------------------------------+-------+---------+---------+
| Taxation | 9 | (128) | (11) |
+------------------------------------+-------+---------+---------+
| Profit/(loss) on ordinary | | 307 | (150) |
| activities after taxation | | | |
+------------------------------------+-------+---------+---------+
| Other comprehensive | | | |
| income/(expense) | | | |
+------------------------------------+-------+---------+---------+
| Movement in unrealised | | 10 | (178) |
| appreciation of investments | | | |
+------------------------------------+-------+---------+---------+
| Deferred tax on movement in | | (2) | 50 |
| unrealised appreciation of | | | |
| investments | | | |
+------------------------------------+-------+---------+---------+
| Net other comprehensive | | 8 | (128) |
| income/(expense) | | | |
+------------------------------------+-------+---------+---------+
| Total comprehensive | | 315 | (278) |
| income/(expense) attributable to | | | |
| equity shareholders | | | |
+------------------------------------+-------+---------+---------+
| Earnings per ordinary share | | | |
+------------------------------------+-------+---------+---------+
| Basic | 11 | 3.6p | (1.8)p |
+------------------------------------+-------+---------+---------+
| Diluted | 11 | 3.6p | (1.8)p |
+------------------------------------+-------+---------+---------+
| | | | |
+------------------------------------+-------+---------+---------+
Consolidated Statement of Financial Position
31 May 2010
+-----------------------------------------------+-------+---------+---------+
| | Notes | 2010 | 2009 |
+-----------------------------------------------+-------+---------+---------+
| | | | |
| | | GBP'000 | GBP'000 |
+-----------------------------------------------+-------+---------+---------+
| | | | |
+-----------------------------------------------+-------+---------+---------+
| Non-current Assets | | | |
+-----------------------------------------------+-------+---------+---------+
| Goodwill | 12 | 395 | 380 |
+-----------------------------------------------+-------+---------+---------+
| Other intangible assets | 13 | - | - |
+-----------------------------------------------+-------+---------+---------+
| Property, plant and equipment | 14 | 32 | 75 |
+-----------------------------------------------+-------+---------+---------+
| Available-for-sale investments | 16 | 1,228 | 1,233 |
+-----------------------------------------------+-------+---------+---------+
| Total non-current assets | | 1,655 | 1,688 |
+-----------------------------------------------+-------+---------+---------+
| | | | |
+-----------------------------------------------+-------+---------+---------+
| Current Assets | | | |
+-----------------------------------------------+-------+---------+---------+
| Trade and other receivables | 17 | 9,042 | 10,664 |
+-----------------------------------------------+-------+---------+---------+
| Investments held for trading | 18 | 324 | 187 |
+-----------------------------------------------+-------+---------+---------+
| Cash and cash equivalents | 19 | 4,796 | 3,143 |
+-----------------------------------------------+-------+---------+---------+
| Total current assets | | 14,162 | 13,994 |
+-----------------------------------------------+-------+---------+---------+
| Current liabilities | | | |
+-----------------------------------------------+-------+---------+---------+
| Trade and other payables | 20 | 10,888 | 10,836 |
+-----------------------------------------------+-------+---------+---------+
| Current tax liabilities | | 121 | 22 |
+-----------------------------------------------+-------+---------+---------+
| Total current liabilities | | 11,009 | 10,858 |
+-----------------------------------------------+-------+---------+---------+
| Net current assets | | 3,153 | 3,136 |
+-----------------------------------------------+-------+---------+---------+
| | | | |
+-----------------------------------------------+-------+---------+---------+
| Non-current liabilities | | | |
+-----------------------------------------------+-------+---------+---------+
| Deferred tax liabilities | 21 | 263 | 257 |
+-----------------------------------------------+-------+---------+---------+
| Total non-current liabilities | | 263 | 257 |
+-----------------------------------------------+-------+---------+---------+
| | | | |
+-----------------------------------------------+-------+---------+---------+
| Net Assets | | 4,545 | 4,567 |
+-----------------------------------------------+-------+---------+---------+
| | | | |
| | | | |
| | | | |
+-----------------------------------------------+-------+---------+---------+
| EQUITY | | | |
+-----------------------------------------------+-------+---------+---------+
| Share capital | 22 | 2,109 | 2,109 |
+-----------------------------------------------+-------+---------+---------+
| Share premium | | 1,216 | 1,216 |
+-----------------------------------------------+-------+---------+---------+
| Revaluation reserve | | 730 | 722 |
+-----------------------------------------------+-------+---------+---------+
| Retained earnings | | 490 | 520 |
+-----------------------------------------------+-------+---------+---------+
| Shareholders' equity | | 4,545 | 4,567 |
+-----------------------------------------------+-------+---------+---------+
| | | | |
+-----------------------------------------------+-------+---------+---------+
These financial statements were approved by the Board of Directors and
authorised for issue on 23 August 2010.
Signed on behalf of the Board of Directors
C F Harrison
Chairman and Chief Executive Officer
Parent Company Statement of Financial Position
31 May 2010
+-----------------------------------------------+-------+---------+---------+
| | Notes | 2010 | 2009 |
+-----------------------------------------------+-------+---------+---------+
| | | | |
| | | GBP'000 | GBP'000 |
+-----------------------------------------------+-------+---------+---------+
| | | | |
+-----------------------------------------------+-------+---------+---------+
| Non-current Assets | | | |
+-----------------------------------------------+-------+---------+---------+
| Goodwill | 12 | 230 | 230 |
+-----------------------------------------------+-------+---------+---------+
| Other intangible assets | 13 | - | - |
+-----------------------------------------------+-------+---------+---------+
| Property, plant and equipment | 14 | 32 | 75 |
+-----------------------------------------------+-------+---------+---------+
| Investments in subsidiary undertakings | 15 | 720 | 705 |
+-----------------------------------------------+-------+---------+---------+
| Available-for-sale investments | 16 | 1,228 | 1,233 |
+-----------------------------------------------+-------+---------+---------+
| Total non-current assets | | 2,210 | 2,243 |
+-----------------------------------------------+-------+---------+---------+
| | | | |
+-----------------------------------------------+-------+---------+---------+
| Current Assets | | | |
+-----------------------------------------------+-------+---------+---------+
| Trade and other receivables | 17 | 9,042 | 10,661 |
+-----------------------------------------------+-------+---------+---------+
| Investments held for trading | 18 | 324 | 187 |
+-----------------------------------------------+-------+---------+---------+
| Cash and cash equivalents | 19 | 4,796 | 3,087 |
+-----------------------------------------------+-------+---------+---------+
| Total current assets | | 14,162 | 13,935 |
+-----------------------------------------------+-------+---------+---------+
| Current liabilities | | | |
+-----------------------------------------------+-------+---------+---------+
| Trade and other payables | 20 | 11,497 | 11,395 |
+-----------------------------------------------+-------+---------+---------+
| Current tax liabilities | | 121 | 12 |
+-----------------------------------------------+-------+---------+---------+
| Total current liabilities | | 11,618 | 11,407 |
+-----------------------------------------------+-------+---------+---------+
| Net current assets | | 2,544 | 2,528 |
+-----------------------------------------------+-------+---------+---------+
| | | | |
+-----------------------------------------------+-------+---------+---------+
| Non-current liabilities | | | |
+-----------------------------------------------+-------+---------+---------+
| Deferred tax liabilities | 21 | 263 | 257 |
+-----------------------------------------------+-------+---------+---------+
| Total non-current liabilities | | 263 | 257 |
+-----------------------------------------------+-------+---------+---------+
| | | | |
+-----------------------------------------------+-------+---------+---------+
| Net Assets | | 4,491 | 4,514 |
+-----------------------------------------------+-------+---------+---------+
| | | | |
| | | | |
| | | | |
+-----------------------------------------------+-------+---------+---------+
| EQUITY | | | |
+-----------------------------------------------+-------+---------+---------+
| Share capital | 22 | 2,109 | 2,109 |
+-----------------------------------------------+-------+---------+---------+
| Share premium | | 1,216 | 1,216 |
+-----------------------------------------------+-------+---------+---------+
| Revaluation reserve | | 730 | 722 |
+-----------------------------------------------+-------+---------+---------+
| Retained earnings | | 436 | 467 |
+-----------------------------------------------+-------+---------+---------+
| Shareholders' equity | | 4,491 | 4,514 |
+-----------------------------------------------+-------+---------+---------+
| | | | |
+-----------------------------------------------+-------+---------+---------+
These financial statements were approved by the Board of Directors and
authorised for issue on 23 August 2010.
Signed on behalf of the Board of Directors
C F Harrison
Chairman and Chief Executive Officer
Statement of Changes in Equity
For the year ended 31 May 2010
+--------------------------+---------+---------+-------------+----------+---------+
| Group | Share | Share | Revaluation | Retained | Total |
| | capital | premium | reserve | earnings | |
+--------------------------+---------+---------+-------------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------------------+---------+---------+-------------+----------+---------+
| Balance at 1 June 2008 | 2,087 | 1,187 | 850 | 1,128 | 5,252 |
+--------------------------+---------+---------+-------------+----------+---------+
| Issue of ordinary share | 22 | 29 | - | - | 51 |
| capital | | | | | |
+--------------------------+---------+---------+-------------+----------+---------+
| Revaluation of | - | - | (128) | - | (128) |
| available-for-sale | | | | | |
| investments | | | | | |
+--------------------------+---------+---------+-------------+----------+---------+
| Loss for the financial | - | - | - | (150) | (150) |
| year | | | | | |
+--------------------------+---------+---------+-------------+----------+---------+
| Dividends paid | - | - | - | (458) | (458) |
+--------------------------+---------+---------+-------------+----------+---------+
| Balance at 1 June 2009 | 2,109 | 1,216 | 722 | 520 | 4,567 |
+--------------------------+---------+---------+-------------+----------+---------+
| Revaluation of | - | - | 10 | - | 10 |
| available-for-sale | | | | | |
| investments | | | | | |
+--------------------------+---------+---------+-------------+----------+---------+
| Deferred tax on | - | - | (2) | - | (2) |
| revaluation of | | | | | |
| available-for-sale | | | | | |
| investments | | | | | |
+--------------------------+---------+---------+-------------+----------+---------+
| Profit for the financial | - | - | - | 307 | 307 |
| year | | | | | |
+--------------------------+---------+---------+-------------+----------+---------+
| Dividends paid | - | - | - | (337) | (337) |
+--------------------------+---------+---------+-------------+----------+---------+
| Balance at 31 May 2010 | 2,109 | 1,216 | 730 | 490 | 4,545 |
+--------------------------+---------+---------+-------------+----------+---------+
+--------------------------+---------+---------+-------------+----------+---------+
| Parent Company | Share | Share | Revaluation | Retained | Total |
| | capital | premium | reserve | earnings | |
+--------------------------+---------+---------+-------------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------------------+---------+---------+-------------+----------+---------+
| Balance at 1 June 2008 | 2,087 | 1,187 | 850 | 1,075 | 5,199 |
+--------------------------+---------+---------+-------------+----------+---------+
| Issue of ordinary share | 22 | 29 | - | - | 51 |
| capital | | | | | |
+--------------------------+---------+---------+-------------+----------+---------+
| Revaluation of | - | - | (128) | - | (128) |
| available-for-sale | | | | | |
| investments | | | | | |
+--------------------------+---------+---------+-------------+----------+---------+
| Loss for the financial | - | - | - | (150) | (150) |
| year | | | | | |
+--------------------------+---------+---------+-------------+----------+---------+
| Dividends paid | - | - | - | (458) | (458) |
+--------------------------+---------+---------+-------------+----------+---------+
| Balance at 1 June 2009 | 2,109 | 1,216 | 722 | 467 | 4,514 |
+--------------------------+---------+---------+-------------+----------+---------+
| Revaluation of | - | - | 10 | - | 10 |
| available-for-sale | | | | | |
| investments | | | | | |
+--------------------------+---------+---------+-------------+----------+---------+
| Deferred tax on | - | - | (2) | - | (2) |
| revaluation of | | | | | |
| available-for-sale | | | | | |
| investments | | | | | |
+--------------------------+---------+---------+-------------+----------+---------+
| Profit for the financial | - | - | - | 306 | 306 |
| year | | | | | |
+--------------------------+---------+---------+-------------+----------+---------+
| Dividends paid | - | - | - | (337) | (337) |
+--------------------------+---------+---------+-------------+----------+---------+
| Balance at 31 May 2010 | 2,109 | 1,216 | 730 | 436 | 4,491 |
+--------------------------+---------+---------+-------------+----------+---------+
Group and Parent Company Cash Flow Statement
For the year ended 31 May 2010
+---------------------------------+------+---------+---------+---------+---------+
| | | 2010 | 2009 |
+---------------------------------+------+-------------------+-------------------+
| | | Group | Company | Group | Company |
+---------------------------------+------+---------+---------+---------+---------+
| | Note | | | | |
| | | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------------------------+------+---------+---------+---------+---------+
| | | | | | |
+---------------------------------+------+---------+---------+---------+---------+
| Net cash generated from/(used | 23 | 1,941 | 1,997 | (320) | (216) |
| in) operating activities | | | | | |
+---------------------------------+------+---------+---------+---------+---------+
| Investing activities | | | | | |
+---------------------------------+------+---------+---------+---------+---------+
| Interest received | | 27 | 27 | 109 | 109 |
+---------------------------------+------+---------+---------+---------+---------+
| Investment income received | | 44 | 44 | 52 | 52 |
+---------------------------------+------+---------+---------+---------+---------+
| Interest paid | | (6) | (6) | - | - |
+---------------------------------+------+---------+---------+---------+---------+
| Proceeds on disposal of | | 23 | 23 | - | - |
| available-for-sale investments | | | | | |
+---------------------------------+------+---------+---------+---------+---------+
| Purchases of available-for-sale | | (20) | (20) | - | - |
| investments | | | | | |
+---------------------------------+------+---------+---------+---------+---------+
| Purchases of property, plant | | (4) | (4) | (25) | (25) |
| and equipment | | | | | |
+---------------------------------+------+---------+---------+---------+---------+
| Payments to acquire subsidiary | 15 | (15) | (15) | (160) | (160) |
| undertaking | | | | | |
+---------------------------------+------+---------+---------+---------+---------+
| Cash acquired with subsidiary | 15 | - | - | 160 | - |
| undertaking | | | | | |
+---------------------------------+------+---------+---------+---------+---------+
| Net cash generated from/(used | | 49 | 49 | 136 | (24) |
| in) investing activities | | | | | |
+---------------------------------+------+---------+---------+---------+---------+
| | | | | | |
+---------------------------------+------+---------+---------+---------+---------+
| Financing activities | | | | | |
+---------------------------------+------+---------+---------+---------+---------+
| Dividends paid | | (337) | (337) | (459) | (459) |
+---------------------------------+------+---------+---------+---------+---------+
| Net cash used in financing | | (337) | (337) | (459) | (459) |
| activities | | | | | |
+---------------------------------+------+---------+---------+---------+---------+
| | | | | | |
+---------------------------------+------+---------+---------+---------+---------+
| Net increase in cash and cash | | 1,653 | 1,709 | (643) | (699) |
| equivalents | | | | | |
+---------------------------------+------+---------+---------+---------+---------+
| Cash and cash equivalents at | | 3,143 | 3,087 | 3,786 | 3,786 |
| beginning of year | | | | | |
+---------------------------------+------+---------+---------+---------+---------+
| Cash and cash equivalents at | | 4,796 | 4,796 | 3,143 | 3,087 |
| end of year | | | | | |
+---------------------------------+------+---------+---------+---------+---------+
| | | | | | |
+---------------------------------+------+---------+---------+---------+---------+
Notes to the Accounts
For the year ended 31 May 2010
1 Accounting policies
General information
Fiske plc is a limited company incorporated in Great Britain and registered in
England and Wales, company number 02248663. The address of its registered office
and principal place of business are disclosed in the Company Information page of
the Financial Statements.
The principal activities of the Company are described in the Directors' Report.
Adoption of new and revised standards
Recent accounting developments
The following standards and interpretations issued by the International
Accounting Standards Board (IASB) and IFRIC have been adopted in these financial
statements.
· IFRS 7 Financial instruments: Disclosures
· IAS 1 Presentation of Financial Statements - Comprehensive revision
including requiring a statement of comprehensive income and amendments relating
to disclosure of puttable instruments and obligations arising on liquidation
· IFRIC 12 Service Concession Arrangements
· IFRIC 14 IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding
requirements and their Interaction
IFRIC 12 has no impact on the financial statements of the Company or the Group.
The adoption of IFRIC 14 has not had a material impact on the financial
statements of the Company or the Group.
The following standards, amendments and interpretations have been issued by the
IASB and IFRIC with an effective date, subject to EU endorsement in some cases,
which does not impact on these financial statements.
+--------------------------------------------------------------------+
| IFRS various Annual improvements 2009 |
+--------------------------------------------------------------------+
| IFRS 1, IAS 27 Cost of an investment in subsidiary. Jointly |
| controlled entity or associate |
+--------------------------------------------------------------------+
| IFRS 2 Share-based Payment - Amendment relating to vesting |
| conditions and cancellations |
+--------------------------------------------------------------------+
| IFRS 3 Business Combinations - Comprehensive revision on applying |
| the acquisition method |
+--------------------------------------------------------------------+
| IFRS 8 Operating Segments |
+--------------------------------------------------------------------+
| IAS 23 Borrowing Costs - Comprehensive revision to prescribed |
| treatment |
+--------------------------------------------------------------------+
| IAS 27 Consolidated and Separate Financial Statements - |
| Consequential amendments arising from amendments to IFRS 3 |
+--------------------------------------------------------------------+
| IAS 28 Investments in Associates - Consequential amendments |
| arising from amendments to IFRS 3 |
+--------------------------------------------------------------------+
| IAS 31 Interests in Joint Ventures - Consequential amendments |
| arising from amendments to IFRS 3 |
+--------------------------------------------------------------------+
| IAS 32 Financial Instruments: Presentation - Amendments relating |
| to puttable instruments and obligations arising on liquidation |
+--------------------------------------------------------------------+
| IAS 38 Intangible Assets - Accounting for advertising and |
| promotional costs |
+--------------------------------------------------------------------+
| IAS 39 IFRS 7 Financial Instruments: Recognition and measurement - |
| amendments for eligible hedged items |
+--------------------------------------------------------------------+
| IFRIC 11, IFRS 2 Group and treasury share transactions |
+--------------------------------------------------------------------+
| IFRIC 13 Customer Loyalty Programmes |
+--------------------------------------------------------------------+
| IFRIC 15 Agreements for the construction of real estate |
+--------------------------------------------------------------------+
| IFRIC 16 Hedges of a net investment in a foreign operation |
+--------------------------------------------------------------------+
| IFRIC 17 Distribution of non-cash assets to owners |
+--------------------------------------------------------------------+
| IFRIC 18 Transfer of assets from customers |
+--------------------------------------------------------------------+
The impact on the Group's financial statements of the future standards,
amendments and interpretations is still under review, but the Group does not
currently expect any of these changes to have a material impact on the results
or the net assets of the Company or the Group.
(a) Basis of preparation
These financial statements have been prepared in accordance with the
requirements of IFRS implemented by the Group for the year ended 31 May 2010 as
adopted by the European Union and International Financial Reporting
Interpretations Committee and with the Companies Act 2006. The Group financial
statements have been prepared under the historical cost convention, with the
exception of financial instruments, which are stated in accordance with IAS 39
Financial Instruments: recognition and measurement. The principal accounting
policies are set out below.
(b) Going concern basis
The Group's activities, together with the
factors likely to affect its future development, performance and position are
set out in the Directors' Report on pages 6 to 8. It also includes the Group's
objectives, policies and processes for managing its business risk objectives,
which includes its exposure to credit, market and operational risks. The Group
continues to hold a substantial cash resource. After making enquiries, the
Directors have formed a judgement, at the time of approving the financial
statements, that there is a reasonable expectation that the Group has adequate
resources to continue in operational existence for the foreseeable future. For
this reason the Directors continue to adopt the going concern basis in preparing
the financial statements.
(c) Basis of consolidation
The Group financial statements incorporate the financial statements of the
Company and entities controlled by the Company (its subsidiaries) made up to 31
May each year. Control is achieved where the Company has the power to govern the
financial and operating policies of an investee entity so as to obtain benefit
from its activities. The results of subsidiaries acquired during the year are
included in the Consolidated Statement of Comprehensive Income from the
effective date of acquisition as appropriate. Where necessary, adjustments are
made to the financial statements of subsidiaries to bring the accounting
policies used in line with those used by the Group. All intra-group
transactions, balances, income and expenses are eliminated on consolidation.
(d) Revenue recognition
The Group follows the principles of IAS 18, 'Revenue Recognition', in
determining appropriate revenue recognition policies. In principle, therefore,
revenue is recognised to the extent that the economic benefits associated with
the transaction will flow into the Group.
· Commission: Commission income and expenses are recognised on a trade date
basis.
· Fees: Investment management, administration and corporate finance fees
are recognised when earned with retainer fees being recognised over the length
of time of the agreement.
· Dividend income: Dividend income is recognised when the right to receive
payment is established.
(e) Segment reporting
IFRS 8 requires that an entity disclose financial and descriptive information
about its reportable segments, which are operating segments or aggregations of
operating segments. Operating segments are identified on the basis of internal
reports that are regularly reviewed by the Chief Executive Officer to allocate
resources and to assess performance. Using the Group's internal management
reporting as a starting point the single reporting segment set out in note 3 has
been identified.
(f) Business combinations
The acquisition of subsidiaries is accounted for using the purchase method. The
cost of acquisition is measured as the aggregate of the fair values, at the date
of exchange, of the assets given, liabilities incurred or assumed, and equity
instruments issued by the Group in exchange for control of the acquiree, plus
any costs directly attributable to the business combination. The acquiree's
identifiable assets, liabilities and contingent liabilities that meet the
conditions for recognition under IFRS 3 are recognised at their fair value at
the acquisition date. As permitted by IFRS 1, the Group has chosen not to
restate, under IFRS, business combinations that took place prior to 1 June 2006
the date of transition to IFRS.
(g) Goodwill
Goodwill arising on consolidation represents the excess of the cost of
acquisition over the Group's interest in the fair value of the identifiable
assets and liabilities of a subsidiary, associate or jointly controlled entity
at the date of acquisition. Goodwill is initially recognised as an asset at cost
and is subsequently measured at cost less any impairment. Goodwill which is
recognised as an asset is reviewed for impairment at least annually. Any
impairment is recognised immediately and is not subsequently reversed.
For the purpose of impairment testing, goodwill is allocated to each of the
Group's cash-generating units expected to benefit from the synergies of the
combination. Cash-generating units to which goodwill has been allocated are
tested for impairment annually, or more frequently where there is an indication
that the unit may be impaired. If the recoverable amount of the cash-generating
unit is less than the carrying value of the unit, the impairment loss is
allocated first to reduce the carrying amount of any goodwill allocated to the
unit and then to the other assets of the unit pro rata on the basis of the
carrying value of each asset in the unit. An impairment loss recognised for
goodwill is not reversed in a subsequent period.
On disposal of a subsidiary, associate or jointly controlled entity, the
attributable amount of goodwill is included in the determination of the profit
or loss on disposal. Goodwill arising on acquisitions before the date of
transition to IFRSs has been retained at the previous UK GAAP amounts subject to
being tested for impairment at that date.
(h) Property, plant and equipment
All property, plant and equipment are shown at cost less subsequent depreciation
and impairment. Cost includes expenditure that is directly attributable to the
acquisition of items. Depreciation is charged so as to write off the cost or
valuation of assets over their useful economic lives, using the straight-line
method, which is considered to be as follows:
Office refurbishment - 5 years
Office furniture and fittings - 4 years
Computer equipment - 3 years
The assets' residual values and useful lives are reviewed, and if appropriate
asset values are written down to their estimated recoverable amounts, at each
balance sheet date. Gains and losses on disposals are determined by comparing
proceeds with the carrying amounts, and are included in the income statement.
(i) Impairment of intangible assets
The Group's policy is to amortise the intangible assets over the life of the
contract.
At each balance sheet date, the Group reviews the carrying amounts of its
intangible assets to determine whether there is any indication that those assets
have suffered an impairment loss. If any such indication exists, the recoverable
amount of the asset is estimated in order to determine the extent of the
impairment loss (if any). Where the asset does not generate cash flows that are
independent from other assets, the Group estimates the recoverable amount of the
cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in
use. In assessing value in use, the estimated future cash flows are discounted
to their present value, using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the
asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to
be less than its carrying amount, the carrying amount of the asset
(cash-generating unit) is reduced to its recoverable amount. An impairment loss
is recognised as an expense immediately.
(j) Available-for-sale investments
Available-for-sale investments are recognised and derecognised on a trade date
where a purchase or sale of an investment is effected under a contract whose
terms require delivery of the investment within the timeframe established by the
market concerned, and are initially measured at cost.
At subsequent reporting dates, available-for-sale investments are measured at
fair value. Gains or losses arising from changes in fair value are recognised
directly in equity, until the security is disposed of or is determined to be
impaired, at which time the cumulative gain or loss previously recognised in
equity is included in the net profit or loss for the period. Impairment losses
recognised in profit or loss are not subsequently reversed through profit or
loss.
The fair values of available-for-sale investments quoted in active markets are
determined by reference to the current quoted bid price. Where independent
market prices are not available, fair values may be determined using valuation
techniques with reference to observable market data.
(k) Trade and other receivables
Trade and other receivables are measured at initial recognition at fair value,
and are subsequently measured at amortised cost using the effective interest
rate method. Appropriate allowances for estimated irrecoverable amounts are
recognised in profit or loss when there is objective evidence that the asset is
impaired. The allowance recognised is measured as the difference between the
asset's carrying amount and the present value of estimated future cash flows
discounted at the effective interest rate computed at initial recognition.
(l) Investments held for trading
Investments held for trading, which from time to time may include derivatives,
including traded options and warrants traded on an exchange, are measured at
market value.
(m) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, and other
short-term highly liquid investments that are readily convertible to known
amounts of cash and are subject to insignificant risk of changes in value. Such
investments are normally those with original maturities of three months or less.
(n) Client money
The Company holds money on behalf of clients in accordance with the Client Money
Rules of the Financial Services Authority. With the exception of money arising
in the course of clients' transactions, as disclosed in note 19, such monies and
the corresponding liability to clients are not shown on the face of the balance
sheet. The amount so held on behalf of clients at the year end is stated in note
26.
(o) Trade and other payables
Trade and other payables are recognised initially at fair value, which is the
agreed market price at the time goods or services are provided. The Group
accrues for all goods and services consumed but as yet unbilled at amounts
representing management's best estimate of fair value.
(p) Equity instruments
Equity instruments issued by the Company are recorded at the proceeds received,
net of direct issue costs.
(q) Dividends
Equity dividends are recognised when paid.
(r) Share-based payments
Where share options are awarded to employees, the fair value of the options at
the date of grant is charged to the income statement over the vesting period.
Non-market vesting conditions are taken into account by adjusting the number of
equity instruments expected to vest at each balance sheet date so that,
ultimately, the cumulative amount recognised over the vesting period is based on
the number of options that eventually vest. Market vesting conditions are
factored into the fair value of the options granted. As long as all other
vesting conditions are satisfied, a charge is made irrespective of whether the
market vesting conditions are satisfied. The cumulative expense is not adjusted
for failure to achieve a market vesting condition.
When the terms and conditions of options are modified before they vest, the
increase in the fair value of the options, measured immediately before and after
the modification, is also charged to the income statement over the remaining
vesting period.
Where equity instruments are granted to persons other than employees, the income
statement is charged with the fair value of the goods and services received.
There has been no material share options charge to the income statement to date
and therefore no disclosure appears in these financial statements.
(s) Taxation
The tax expense represents the sum of the tax currently payable and the deferred
tax.
The tax currently payable is based on taxable profit for the year. Taxable
profit differs from net profit as reported in the income statement because it
excludes items of income or expense that are taxable or deductible in other
years and it further excludes items that are never taxable or deductible. The
Group's liability for current tax is calculated using tax rates that have been
enacted or substantively enacted by the balance sheet date.
Deferred tax is the tax expected to be payable or recoverable on differences
between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable
profit, and is accounted for using the balance sheet liability method. Deferred
tax liabilities are generally recognised for all taxable temporary differences
and deferred tax assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible temporary differences
can be utilised. Such assets and liabilities are not recognised if the temporary
difference arises from the initial recognition of goodwill or from the initial
recognition (other than in a business combination) of other assets and
liabilities in a transaction that affects neither the tax profit nor the
accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences
arising on investments in subsidiaries and associates, except where the Group is
able to control the reversal of the temporary difference and it is probable that
the temporary difference will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet
date and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the asset to be
recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled or the asset is realised. Deferred tax is
charged or credited in the income statement, except when it relates to items
charged or credited directly to equity, in which case the deferred tax is also
dealt with in equity.
Deferred tax assets and liabilities are offset where there is a legally
enforceable right to set off current tax assets against current tax liabilities
and when they relate to income taxes levied by the same taxation authority and
the Group intends to settle its current tax assets and liabilities on a net
basis.
(t) Foreign currencies
The individual financial statements of each Group company are presented in the
currency of the primary economic environment in which it operates (its
functional currency). For the purpose of the Group Financial Statements, the
results and financial position of each Group company are expressed in pounds
sterling, which is the functional currency of the Company, and the presentation
currency for the Group Financial Statements.
In preparing the financial statements of the individual companies, transactions
in currencies other than the entity's functional currency (foreign currencies)
are recorded at the rates of exchange prevailing on the dates of the
transactions. At each balance sheet date, monetary assets and liabilities that
are denominated in foreign currencies are retranslated at the rates prevailing
on the balance sheet date. Non-monetary items carried at fair value that are
denominated in foreign currencies are translated at the rates prevailing at the
date when the fair value was determined. Non-monetary items that are measured in
terms of historical costs in a foreign currency are not retranslated.
Exchange differences arising on the settlement of monetary items, and on the
retranslation of monetary items, are included in profit or loss for the period.
Exchange differences arising on the retranslation of non-monetary items carried
at fair value are included in profit or loss for the period except for
differences arising on the retranslation of non-monetary items in respect of
which gains and losses are recognised directly in equity. For such non-monetary
items, any exchange component of that gain or loss is also recognised directly
in equity.
(u) Leases
Rentals payable under operating leases are charged to income on a straight-line
basis over the term of the relevant lease. Benefits received and receivable as
an incentive to enter into an operating lease are also spread on a straight-line
basis over the lease term.
2 Critical accounting judgements and key uncertainties of
estimation uncertainty
In the application of the Group's accounting policies, which are described in
note 1, the Directors are required to make judgements, estimates and assumptions
about the carrying amounts of assets and liabilities that are not readily
apparent from other sources. The estimates and associated assumptions are based
on historical experience and other factors that are considered to be relevant.
Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period.
Allowance for bad debts
The Group makes provision for the element of fees which it believes will not be
recovered from clients. This is based on past experience and detailed analysis
of the outstanding fees position particularly with regard to the value of
customers' portfolios relative to the fees owed.
Fair value of investments
The Group currently holds an investment in Euroclear Plc, which is held as an
available-for-sale financial asset and measured at fair value at the balance
sheet date. The Euroclear Plc shares do not trade in an active market, and
therefore fair value is calculated with reference to the most recently published
Euroclear Plc financial statements, using the Directors' valuation.
Impairment
The assets on the balance sheet are reviewed for any indications of impairment.
This is done with reference to the recoverability and market value of the assets
concerned but may involve an element of judgement or estimation in determining
whether there are any indications of impairment and if so, the extent of any
impairment loss.
3 Total revenue and segmental analysis
Adoption of IFRS 8, Operating Segments
The Group has adopted IFRS 8 Operating Segments with effect from 1 January 2009.
IFRS 8 requires operating segments to be identified on the basis of internal
reports about components of the Group that are regularly reviewed by the Chief
Executive to allocate resources to the segments and to assess their performance.
In contrast, the predecessor Standard (IAS 14 Segment Reporting) required the
Group to identify two sets of segments (business and geographical), using a
risks and returns approach, with the Group's system of internal financial
reporting to key management personnel serving only as the starting point for the
identification of such segments. Nevertheless, as a result, following the
adoption of IFRS 8, the identification of the Group's single reportable segment
has not changed.
Within this single reportable segment, total revenue comprises:
+---------------------------------------------------+---------+---------+
| | 2010 | 2009 |
+---------------------------------------------------+---------+---------+
| | GBP'000 | GBP'000 |
+---------------------------------------------------+---------+---------+
| Commission receivable | 3,470 | 3,121 |
+---------------------------------------------------+---------+---------+
| Corporate finance and advisory fees | 40 | 15 |
+---------------------------------------------------+---------+---------+
| Investment management fees | 534 | 344 |
+---------------------------------------------------+---------+---------+
| | 4,044 | 3,480 |
+---------------------------------------------------+---------+---------+
| Commission payable to associates | (912) | (818) |
+---------------------------------------------------+---------+---------+
| Commission payable to third parties | (15) | (45) |
+---------------------------------------------------+---------+---------+
| | (927) | (863) |
+---------------------------------------------------+---------+---------+
| | 3,117 | 2,617 |
+---------------------------------------------------+---------+---------+
| Other income | 159 | 154 |
+---------------------------------------------------+---------+---------+
| | 3,276 | 2,771 |
+---------------------------------------------------+---------+---------+
Substantially all revenue in the current and prior year is generated in the UK
and derives solely from the provision of financial services.
4 Staff costs
The average number of employees, including Directors, employed by the company
within each category of persons was:
+---------------------------------------------------+--------+--------+
| | 2010 | 2009 |
+---------------------------------------------------+--------+--------+
| | No. | No. |
+---------------------------------------------------+--------+--------+
| Dealing and sales | 7 | 7 |
+---------------------------------------------------+--------+--------+
| Settlement | 8 | 9 |
+---------------------------------------------------+--------+--------+
| Administration | 8 | 8 |
+---------------------------------------------------+--------+--------+
| | 23 | 24 |
+---------------------------------------------------+--------+--------+
Employees', including Directors', costs comprise:
+---------------------------------------------------+---------+---------+
| | 2010 | 2009 |
+---------------------------------------------------+---------+---------+
| | GBP'000 | GBP'000 |
+---------------------------------------------------+---------+---------+
| Wages, salaries and other staff costs | 1,231 | 1,198 |
+---------------------------------------------------+---------+---------+
| Social security costs | 143 | 135 |
+---------------------------------------------------+---------+---------+
| | 1,374 | 1,333 |
+---------------------------------------------------+---------+---------+
5 Directors
(a) Directors' emoluments comprise:
+---------------------------------------------------+---------+---------+
| | 2010 | 2009 |
+---------------------------------------------------+---------+---------+
| | GBP'000 | GBP'000 |
+---------------------------------------------------+---------+---------+
| Emoluments | 526 | 547 |
+---------------------------------------------------+---------+---------+
| | | |
+---------------------------------------------------+---------+---------+
| Highest paid Director's remuneration: | | |
+---------------------------------------------------+---------+---------+
| Emoluments | 136 | 136 |
+---------------------------------------------------+---------+---------+
Information regarding Directors' share options is shown under Directors'
Interests in the Directors' Report.
The emoluments of the Directors for the current and previous year are as
follows:
+------------+---------+---------+---------+-------------+-----------+---------+
| | Gross | Bonus | Fees | Commission | Benefits | Total |
| | salary | paid | | | | |
| | | from | | | | |
| | | 2008/09 | | | | |
+------------+---------+---------+---------+-------------+-----------+---------+
| 31 May | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| 2010 | | | | | | |
+------------+---------+---------+---------+-------------+-----------+---------+
| A J | 85 | - | - | - | 1 | 86 |
| Andrews | | | | | | |
+------------+---------+---------+---------+-------------+-----------+---------+
| C F | 122 | - | - | - | 14 | 136 |
| Harrison | | | | | | |
+------------+---------+---------+---------+-------------+-----------+---------+
| J P Q | 75 | - | - | - | 1 | 76 |
| Harrison | | | | | | |
+------------+---------+---------+---------+-------------+-----------+---------+
| F G | 99 | - | - | - | 2 | 101 |
| Luchini | | | | | | |
+------------+---------+---------+---------+-------------+-----------+---------+
| A D Meech | 69 | - | - | 26 | 2 | 97 |
+------------+---------+---------+---------+-------------+-----------+---------+
| S J | - | - | 15 | - | - | 15 |
| Cockburn | | | | | | |
+------------+---------+---------+---------+-------------+-----------+---------+
| M H W | - | - | 15 | - | - | 15 |
| Perrin | | | | | | |
+------------+---------+---------+---------+-------------+-----------+---------+
| | 450 | - | 30 | 26 | 20 | 526 |
+------------+---------+---------+---------+-------------+-----------+---------+
No directors' bonuses were awarded in respect of the year to 31 May 2009.
+------------+---------+---------+---------+-------------+-----------+---------+
| | Gross | Bonus | Fees | Commission | Benefits | Total |
| | salary | paid | | | | |
| | | from | | | | |
| | | 2007/08 | | | | |
+------------+---------+---------+---------+-------------+-----------+---------+
| 31 May | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| 2009 | | | | | | |
+------------+---------+---------+---------+-------------+-----------+---------+
| M J | - | - | 13 | - | - | 13 |
| Allen(i) | | | | | | |
+------------+---------+---------+---------+-------------+-----------+---------+
| A J | 81 | 10 | - | - | 1 | 92 |
| Andrews | | | | | | |
+------------+---------+---------+---------+-------------+-----------+---------+
| C F | 106 | - | - | - | 30 | 136 |
| Harrison | | | | | | |
+------------+---------+---------+---------+-------------+-----------+---------+
| J P Q | 71 | 4 | - | - | 1 | 76 |
| Harrison | | | | | | |
+------------+---------+---------+---------+-------------+-----------+---------+
| F G | 99 | 4 | - | - | 2 | 105 |
| Luchini | | | | | | |
+------------+---------+---------+---------+-------------+-----------+---------+
| A D Meech | 68 | 3 | - | 22 | 2 | 95 |
+------------+---------+---------+---------+-------------+-----------+---------+
| S J | - | - | 15 | - | - | 15 |
| Cockburn | | | | | | |
+------------+---------+---------+---------+-------------+-----------+---------+
| M H W | - | - | 15 | - | - | 15 |
| Perrin | | | | | | |
+------------+---------+---------+---------+-------------+-----------+---------+
| | 425 | 21 | 43 | 22 | 36 | 547 |
+------------+---------+---------+---------+-------------+-----------+---------+
(i) Resigned 1 November 2008
Bonuses included in the table above were awarded in the prior year, to 31 May
2008 and were accrued for in that year, but paid in the year to 31 May 09.
(b) Directors' balances
The Directors' trading balances have been included within trade receivables and
payables and Directors' current account balances are included in other payables.
6 Operating profit/(loss)
+---------------------------------------------------+---------+---------+
| | 2010 | 2009 |
+---------------------------------------------------+---------+---------+
| | GBP'000 | GBP'000 |
+---------------------------------------------------+---------+---------+
| The operating profit/(loss) is arrived at after | | |
| charging: | | |
+---------------------------------------------------+---------+---------+
| Auditors' remuneration: | | |
| Fees payable to the Company's auditors: | | |
| - for the audit of the Company's annual | 55 | 55 |
| accounts | 5 | 5 |
| - for the audit of the Company's | | |
| subsidiaries pursuant to legislation | | |
+---------------------------------------------------+---------+---------+
| Non-audit fees: | | |
| - Other services pursuant to legislation: | 5 | 5 |
| Interim review | | |
+---------------------------------------------------+---------+---------+
| - Tax services | 3 | 3 |
+---------------------------------------------------+---------+---------+
| Net foreign exchange losses | 7 | 13 |
+---------------------------------------------------+---------+---------+
| Depreciation of property, plant and equipment | 48 | 56 |
+---------------------------------------------------+---------+---------+
| Impairment of goodwill | - | 145 |
+---------------------------------------------------+---------+---------+
| Amortisation of intangible assets | - | 45 |
+---------------------------------------------------+---------+---------+
| Operating lease rentals - Land and buildings | 189 | 189 |
+---------------------------------------------------+---------+---------+
| - Other | 5 | 5 |
+---------------------------------------------------+---------+---------+
The profit for the financial year dealt with in the financial statements of the
parent Company was GBP306,000 (2009 - loss of GBP150,000) before dividend.
As permitted by Section 408 of the Companies Act 2006, no separate income
statement is presented in respect of the parent Company.
7 Finance income
+---------------------------------------------------+---------+---------+
| | 2010 | 2009 |
+---------------------------------------------------+---------+---------+
| | GBP'000 | GBP'000 |
+---------------------------------------------------+---------+---------+
| Interest receivable: | | |
+---------------------------------------------------+---------+---------+
| Banks | 27 | 109 |
+---------------------------------------------------+---------+---------+
| | 27 | 109 |
+---------------------------------------------------+---------+---------+
8 Finance costs
+---------------------------------------------------+---------+---------+
| | 2010 | 2009 |
+---------------------------------------------------+---------+---------+
| | GBP'000 | GBP'000 |
+---------------------------------------------------+---------+---------+
| Interest payable: | | |
+---------------------------------------------------+---------+---------+
| Bank loans, overdrafts and other interest payable | 6 | 6 |
+---------------------------------------------------+---------+---------+
9 Tax
Analysis of tax charge on ordinary activities:
+---------------------------------------------------+---------+----------+
| | 2010 | 2009 |
+---------------------------------------------------+---------+----------+
| | GBP'000 | GBP'000 |
+---------------------------------------------------+---------+----------+
| Current tax | | |
+---------------------------------------------------+---------+----------+
| Current year | 121 | 12 |
+---------------------------------------------------+---------+----------+
| Prior year adjustment | 3 | 4 |
+---------------------------------------------------+---------+----------+
| | 124 | 16 |
+---------------------------------------------------+---------+----------+
| Deferred tax | | |
+---------------------------------------------------+---------+----------+
| Current year | (4) | (5) |
+---------------------------------------------------+---------+----------+
| Prior year adjustment | 8 | - |
+---------------------------------------------------+---------+----------+
| Total tax charge (to Statement of Comprehensive | 128 | 11 |
| Income) | | |
+---------------------------------------------------+---------+----------+
Factors affecting the tax charge for the year
The standard rate of tax for the year, based on the United Kingdom standard rate
of corporation tax, is 28% (2009: 28%).
The charge for the year can be reconciled to the profit per the Statement of
Comprehensive Income as follows:
+---------------------------------------------------+---------+---------+
| | 2010 | 2009 |
+---------------------------------------------------+---------+---------+
| | GBP'000 | GBP'000 |
+---------------------------------------------------+---------+---------+
| Profit/(loss) before tax | 435 | (139) |
+---------------------------------------------------+---------+---------+
| Charge/(credit) on profit/(loss) on ordinary | 122 | (39) |
| activities at standard rate | | |
+---------------------------------------------------+---------+---------+
| Effect of: | | |
+---------------------------------------------------+---------+---------+
| Expenses not deductible in determining taxable | 18 | 18 |
| profit | | |
+---------------------------------------------------+---------+---------+
| Non taxable income | (8) | (9) |
+---------------------------------------------------+---------+---------+
| Double tax relief | 3 | (1) |
+---------------------------------------------------+---------+---------+
| Amortisation of goodwill | - | 41 |
+---------------------------------------------------+---------+---------+
| Small company relief | (18) | (3) |
+---------------------------------------------------+---------+---------+
| Adjustment to tax charge in respect of prior | 11 | 4 |
| years | | |
+---------------------------------------------------+---------+---------+
| | 128 | 11 |
+---------------------------------------------------+---------+---------+
10 Dividends paid
+---------------------------------------------------+---------+---------+
| | 2010 | 2009 |
+---------------------------------------------------+---------+---------+
| | GBP'000 | GBP'000 |
+---------------------------------------------------+---------+---------+
| Second interim dividend of 2p (October 2008: 3p) | 168 | 249 |
| paid in respect of prior year | | |
+---------------------------------------------------+---------+---------+
| First interim dividend of 2p (March 2009: 2.5p) | 169 | 210 |
+---------------------------------------------------+---------+---------+
| | 337 | 459 |
+---------------------------------------------------+---------+---------+
| | | |
+---------------------------------------------------+---------+---------+
| Second interim dividend of 2p (October 2009: 2p) | 169 | 169 |
| to be paid | | |
+---------------------------------------------------+---------+---------+
The second interim dividend will be paid to holders of 8,425,715 ordinary 25p
shares.
The Employee Share Option Scheme, which is controlled by Fiske plc held shares
to the benefit of nominated employees, waived the entitlement to any dividend on
its holding of 9,490 ordinary shares of 25p each (2009 - 9,490 ordinary shares
of 25p each).
11 Earnings per share
Basic earnings per share has been calculated by dividing the profit on ordinary
activities after taxation by the weighted average number of shares in issue
during the year. Diluted earnings per share is basic earnings per share adjusted
for the effect of conversion into fully paid shares of the weighted average
number of share options during the year.
+-------------------------------------------------+---------+---------+
| | | Diluted |
| 31 May 2010 | Basic | Basic |
+-------------------------------------------------+---------+---------+
| | GBP'000 | GBP'000 |
+-------------------------------------------------+---------+---------+
| Profit on ordinary activities after taxation | 307 | 307 |
+-------------------------------------------------+---------+---------+
| Adjustment to reflect impact of dilutive share | - | 1 |
| options | | |
+-------------------------------------------------+---------+---------+
| Earnings | 307 | 308 |
+-------------------------------------------------+---------+---------+
| Number of shares (000's) | 8,426 | 8,478 |
+-------------------------------------------------+---------+---------+
| Earnings per share (pence) | 3.6 | 3.6 |
+-------------------------------------------------+---------+---------+
+-------------------------------------------------+---------+---------+
| | | Diluted |
| 31 May 2009 | Basic | Basic |
+-------------------------------------------------+---------+---------+
| | GBP'000 | GBP'000 |
+-------------------------------------------------+---------+---------+
| Loss on ordinary activities after taxation | (150) | (150) |
+-------------------------------------------------+---------+---------+
| Adjustment to reflect impact of dilutive share | - | 1 |
| options | | |
+-------------------------------------------------+---------+---------+
| Losses | (150) | (149) |
+-------------------------------------------------+---------+---------+
| Number of shares (000's) | 8,353 | 8,399 |
+-------------------------------------------------+---------+---------+
| Losses per share (pence) | (1.8) | (1.8) |
+-------------------------------------------------+---------+---------+
+--------------------------------------------------+----------+---------+
| | 31 May | 31 May |
| | 2010 | 2009 |
+--------------------------------------------------+----------+---------+
| Number of shares (000's): | | |
+--------------------------------------------------+----------+---------+
| Weighted average number of shares | 8,426 | 8,353 |
+--------------------------------------------------+----------+---------+
| Dilutive effect of share option scheme | 52 | 46 |
+--------------------------------------------------+----------+---------+
| | 8,478 | 8,399 |
+--------------------------------------------------+----------+---------+
12 Goodwill
+-------------------------------------+----------+---------+---------+
| | | Group | Company |
+-------------------------------------+----------+---------+---------+
| Fund management acquisitions | | GBP'000 | GBP'000 |
+-------------------------------------+----------+---------+---------+
| Cost | | | |
+-------------------------------------+----------+---------+---------+
| At 1 June 2008 | | 1,146 | 1,146 |
+-------------------------------------+----------+---------+---------+
| Additions | | 150 | - |
+-------------------------------------+----------+---------+---------+
| At 1 June 2009 | | 1,296 | 1,146 |
+-------------------------------------+----------+---------+---------+
| Additions | | 15 | - |
+-------------------------------------+----------+---------+---------+
| At 31 May 2010 | | 1,311 | 1,146 |
+-------------------------------------+----------+---------+---------+
| Accumulated impairment losses | | | |
+-------------------------------------+----------+---------+---------+
| At 1 June 2008 | | 771 | 771 |
+-------------------------------------+----------+---------+---------+
| Impairment losses for the year | | 145 | 145 |
+-------------------------------------+----------+---------+---------+
| At 1 June 2009 | | 916 | 916 |
+-------------------------------------+----------+---------+---------+
| Impairment losses for the year | | - | - |
+-------------------------------------+----------+---------+---------+
| At 31 May 2010 | | 916 | 916 |
+-------------------------------------+----------+---------+---------+
| Net book value | | | |
+-------------------------------------+----------+---------+---------+
| At 31 May 2010 | | 395 | 230 |
+-------------------------------------+----------+---------+---------+
| At 31 May 2009 | | 380 | 230 |
+-------------------------------------+----------+---------+---------+
| At 31 May 2008 | | 375 | 375 |
+-------------------------------------+----------+---------+---------+
13 Other intangible assets
+---------------------------+---------+----------+---------+---------+
| | | | Systems | |
| | | | licence | Total |
+---------------------------+---------+----------+---------+---------+
| Group and Company | | | GBP'000 | GBP'000 |
+---------------------------+---------+----------+---------+---------+
| Cost | | | | |
+---------------------------+---------+----------+---------+---------+
| At 1 June 2008 | | | 282 | 282 |
+---------------------------+---------+----------+---------+---------+
| At 1 June 2009 | | | 282 | 282 |
+---------------------------+---------+----------+---------+---------+
| At 31 May 2010 | | | 282 | 282 |
+---------------------------+---------+----------+---------+---------+
| Accumulated amortisation | | | | |
+---------------------------+---------+----------+---------+---------+
| At 1 June 2008 | | | 237 | 237 |
+---------------------------+---------+----------+---------+---------+
| Charge for the year | | | 45 | 45 |
+---------------------------+---------+----------+---------+---------+
| At 1 June 2009 | | | 282 | 282 |
+---------------------------+---------+----------+---------+---------+
| Charge for the year | | | - | - |
+---------------------------+---------+----------+---------+---------+
| At 31 May 2010 | | | 282 | 282 |
+---------------------------+---------+----------+---------+---------+
| Net book value | | | | |
+---------------------------+---------+----------+---------+---------+
| At 31 May 2010 | | | - | - |
+---------------------------+---------+----------+---------+---------+
| At 31 May 2009 | | | - | - |
+---------------------------+---------+----------+---------+---------+
| At 31 May 2008 | | | 45 | 45 |
+---------------------------+---------+----------+---------+---------+
14 Property, plant and equipment
+----------------------------+-----------+-----------+---------------+---------+
| | Office | | | |
| | furniture | Computer | Office | |
| | and | equipment | refurbishment | Total |
| | equipment | | | |
+----------------------------+-----------+-----------+---------------+---------+
| Group | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----------------------------+-----------+-----------+---------------+---------+
| Cost | | | | |
+----------------------------+-----------+-----------+---------------+---------+
| At 1 June 2008 | 130 | 106 | 175 | 411 |
+----------------------------+-----------+-----------+---------------+---------+
| Additions | 1 | 24 | - | 25 |
+----------------------------+-----------+-----------+---------------+---------+
| Disposals | - | (1) | - | (1) |
+----------------------------+-----------+-----------+---------------+---------+
| At 1 June 2009 | 131 | 129 | 175 | 435 |
+----------------------------+-----------+-----------+---------------+---------+
| Additions | 1 | 3 | - | 4 |
+----------------------------+-----------+-----------+---------------+---------+
| Disposals | (57) | (60) | - | (117) |
+----------------------------+-----------+-----------+---------------+---------+
| At 31 May 2010 | 75 | 72 | 175 | 322 |
+----------------------------+-----------+-----------+---------------+---------+
| Accumulated depreciation | | | | |
+----------------------------+-----------+-----------+---------------+---------+
| At 1 June 2008 | 128 | 92 | 85 | 305 |
+----------------------------+-----------+-----------+---------------+---------+
| Charge for the year | 2 | 20 | 34 | 56 |
+----------------------------+-----------+-----------+---------------+---------+
| Disposals | - | (1) | - | (1) |
+----------------------------+-----------+-----------+---------------+---------+
| At 1 June 2009 | 130 | 111 | 119 | 360 |
+----------------------------+-----------+-----------+---------------+---------+
| Charge for the year | 1 | 12 | 35 | 48 |
+----------------------------+-----------+-----------+---------------+---------+
| Disposals | (57) | (61) | - | (118) |
+----------------------------+-----------+-----------+---------------+---------+
| At 31 May 2010 | 74 | 62 | 154 | 290 |
+----------------------------+-----------+-----------+---------------+---------+
| Net book value | | | | |
| At 31 May 2010 | 1 | 10 | 21 | 32 |
+----------------------------+-----------+-----------+---------------+---------+
| At 31 May 2009 | 1 | 18 | 56 | 75 |
+----------------------------+-----------+-----------+---------------+---------+
| At 31 May 2008 | 2 | 14 | 90 | 106 |
+----------------------------+-----------+-----------+---------------+---------+
+----------------------------+-----------+-----------+---------------+---------+
| | Office | | | |
| | furniture | Computer | Office | |
| | and | equipment | refurbishment | Total |
| | equipment | | | |
+----------------------------+-----------+-----------+---------------+---------+
| Company | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----------------------------+-----------+-----------+---------------+---------+
| Cost | | | | |
+----------------------------+-----------+-----------+---------------+---------+
| At 1 June 2008 | 130 | 98 | 175 | 403 |
+----------------------------+-----------+-----------+---------------+---------+
| Additions | 1 | 24 | - | 25 |
+----------------------------+-----------+-----------+---------------+---------+
| Disposals | - | - | - | - |
+----------------------------+-----------+-----------+---------------+---------+
| At 1 June 2009 | 131 | 122 | 175 | 428 |
+----------------------------+-----------+-----------+---------------+---------+
| Additions | 1 | 3 | - | 4 |
+----------------------------+-----------+-----------+---------------+---------+
| Disposals | (57) | (53) | - | (110) |
+----------------------------+-----------+-----------+---------------+---------+
| At 31 May 2010 | 75 | 72 | 175 | 322 |
+----------------------------+-----------+-----------+---------------+---------+
| Accumulated depreciation | | | | |
+----------------------------+-----------+-----------+---------------+---------+
| At 1 June 2009 | 128 | 84 | 85 | 297 |
+----------------------------+-----------+-----------+---------------+---------+
| Charge for the year | 2 | 20 | 34 | 56 |
+----------------------------+-----------+-----------+---------------+---------+
| Disposals | - | - | - | - |
+----------------------------+-----------+-----------+---------------+---------+
| At 1 June 2009 | 130 | 104 | 119 | 353 |
+----------------------------+-----------+-----------+---------------+---------+
| Charge for the year | 1 | 12 | 35 | 48 |
+----------------------------+-----------+-----------+---------------+---------+
| Disposals | (57) | (54) | - | (111) |
+----------------------------+-----------+-----------+---------------+---------+
| At 31 May 2010 | 74 | 62 | 154 | 290 |
+----------------------------+-----------+-----------+---------------+---------+
| Net book value | | | | |
| At 31 May 2010 | 1 | 10 | 21 | 32 |
+----------------------------+-----------+-----------+---------------+---------+
| At 31 May 2009 | 1 | 18 | 56 | 75 |
+----------------------------+-----------+-----------+---------------+---------+
| At 31 May 2008 | 2 | 14 | 90 | 106 |
+----------------------------+-----------+-----------+---------------+---------+
15 Investment in subsidiary undertakings
+---------------------------------------------------+---------+---------+
| | 2010 | 2009 |
+---------------------------------------------------+---------+---------+
| Company | GBP'000 | GBP'000 |
+---------------------------------------------------+---------+---------+
| Cost at 1 June 2009 | 705 | 432 |
+---------------------------------------------------+---------+---------+
| Additions | 15 | 273 |
+---------------------------------------------------+---------+---------+
| Cost at 31 May 2010 | 720 | 705 |
+---------------------------------------------------+---------+---------+
The following are the principal subsidiaries of the Company at 31 May 2010 and
at the date of these financial statements.
+----------------------+----------+---------------+--------------------+
| Incorporated in the | Class | Proportion of | Nature of business |
| UK: | of | Nominal value | |
| | shares | and voting | |
| | | rights held | |
| | | by parent | |
| | | company | |
+----------------------+----------+---------------+--------------------+
| Vor Financial | Ordinary | 100% | Investment |
| Strategy Limited | | | consultants |
+----------------------+----------+---------------+--------------------+
| Ionian Group Limited | Ordinary | 100% | Intermediate |
| | | | holding company |
+----------------------+----------+---------------+--------------------+
Vor Financial Strategy Limited was acquired on 8 April 2009 for a consideration
of GBP273,000. Following higher than expected revenues in the year to 31 May
2010, a further GBP15,000 of consideration has become payable.
16 Available-for-sale investments
+--------------------------------------------------+----------+---------+
| | 2010 | 2009 |
+--------------------------------------------------+----------+---------+
| Group and Company | GBP'000 | GBP'000 |
+--------------------------------------------------+----------+---------+
| Listed | 160 | 165 |
+--------------------------------------------------+----------+---------+
| Unlisted | 1,068 | 1,068 |
+--------------------------------------------------+----------+---------+
| Available-for-sale investments carried at fair | 1,228 | 1,233 |
| value | | |
+--------------------------------------------------+----------+---------+
The shares included above represent investments in equity securities that
present the Group with the opportunity for return through dividend income and
capital gains. These shares are not held for trading and are accordingly
classified as available-for-sale.
17 Trade and other receivables
+--------------------------------+---------+---------+---------+---------+
| | 2010 | 2009 |
+--------------------------------+-------------------+-------------------+
| | Group | Company | Group | Company |
+--------------------------------+---------+---------+---------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------+---------+---------+---------+---------+
| Counterparty debtors | 3,433 | 3,433 | 2,989 | 2,989 |
+--------------------------------+---------+---------+---------+---------+
| Trade receivables | 5,206 | 5,206 | 7,060 | 7,060 |
+--------------------------------+---------+---------+---------+---------+
| | 8,639 | 8,639 | 10,049 | 10,049 |
+--------------------------------+---------+---------+---------+---------+
| Other debtors | 14 | 14 | 67 | 67 |
+--------------------------------+---------+---------+---------+---------+
| Prepayments and accrued income | 389 | 389 | 548 | 545 |
+--------------------------------+---------+---------+---------+---------+
| | 9,042 | 9,042 | 10,664 | 10,661 |
+--------------------------------+---------+---------+---------+---------+
Trade receivables
Included in the Group's trade receivables balance are debtors with a carrying
amount of GBP43,000 (2009 - GBP143,000) which are past due at the reporting date
for which the Group has not provided as there has not been a significant change
in credit quality and the amounts are still considered recoverable.
Ageing of past due but not impaired trade receivables:
+--------------------------------------------------+----------+---------+
| | 2010 | 2009 |
+--------------------------------------------------+----------+---------+
| | GBP'000 | GBP'000 |
+--------------------------------------------------+----------+---------+
| | | |
+--------------------------------------------------+----------+---------+
| 0 - 15 days | 42 | 132 |
+--------------------------------------------------+----------+---------+
| 16 - 30 days | 1 | 1 |
+--------------------------------------------------+----------+---------+
| 31 - 60 days | - | 10 |
+--------------------------------------------------+----------+---------+
| | 43 | 143 |
+--------------------------------------------------+----------+---------+
Counterparty receivables
Included in the Group's counterparty receivables are debtors with a carrying
amount of GBP71,000 (2009 - GBP306,000) which are past due at the reporting date
for which the Group has not provided as there has not been a significant change
in credit quality and the amounts are still considered recoverable.
Ageing of past due but not impaired counterparty receivables:
+--------------------------------------------------+----------+---------+
| | 2010 | 2009 |
+--------------------------------------------------+----------+---------+
| | GBP'000 | GBP'000 |
+--------------------------------------------------+----------+---------+
| | | |
+--------------------------------------------------+----------+---------+
| 0 - 30 days | 71 | 64 |
+--------------------------------------------------+----------+---------+
| 31 - 60 days | - | 242 |
+--------------------------------------------------+----------+---------+
| | 71 | 306 |
+--------------------------------------------------+----------+---------+
18 Investments held for trading
+--------------------------------+---------+---------+---------+---------+
| | 2010 | 2009 |
+--------------------------------+-------------------+-------------------+
| | Group | Company | Group | Company |
+--------------------------------+---------+---------+---------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------+---------+---------+---------+---------+
| Listed | 324 | 324 | 187 | 187 |
+--------------------------------+---------+---------+---------+---------+
The shares included above represent investments in listed equity securities that
present the group with opportunity for return through dividend income and
trading gains.
19 Cash and cash equivalents
Cash and cash equivalents includes GBP2,047,000 (2009 - GBP294,000) received in
the course of settlement of client trades. This amount is held by the Company in
trust on behalf of clients but may be utilised to complete settlement of
outstanding trades.
20 Trade and other payables
+--------------------------------+---------+---------+---------+---------+
| | 2010 | 2009 |
+--------------------------------+-------------------+-------------------+
| | Group | Company | Group | Company |
+--------------------------------+---------+---------+---------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------+---------+---------+---------+---------+
| Counterparty creditors | 6,732 | 6,732 | 6,319 | 6,319 |
+--------------------------------+---------+---------+---------+---------+
| Trade payables | 3,760 | 3,761 | 4,071 | 4,071 |
+--------------------------------+---------+---------+---------+---------+
| | 10,492 | 10,493 | 10,390 | 10,390 |
+--------------------------------+---------+---------+---------+---------+
| Amount owed to group | - | 609 | - | 563 |
| undertakings | | | | |
+--------------------------------+---------+---------+---------+---------+
| Sundry creditors and accruals | 396 | 395 | 446 | 442 |
+--------------------------------+---------+---------+---------+---------+
| | 10,888 | 11,497 | 10,836 | 11,395 |
+--------------------------------+---------+---------+---------+---------+
21 Deferred taxation
+--------------------------------+--------+------------+-------------+-----------+
| | | | Available- | |
| | | Capital | for -sale | Deferred |
| | | allowances | investments | tax |
| | | | | liability |
+--------------------------------+--------+------------+-------------+-----------+
| Group and Company | | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------+--------+------------+-------------+-----------+
| At 1 June 2009 | | (14) | 271 | 257 |
+--------------------------------+--------+------------+-------------+-----------+
| Credit for the year | | (4) | - | (4) |
+--------------------------------+--------+------------+-------------+-----------+
| Charge in respect of prior | | 8 | - | 8 |
| years | | | | |
+--------------------------------+--------+------------+-------------+-----------+
| Charge to Statement of | | - | 2 | 2 |
| Comprehensive Income | | | | |
+--------------------------------+--------+------------+-------------+-----------+
| At 31 May 2010 | | (10) | 273 | 263 |
+--------------------------------+--------+------------+-------------+-----------+
22 Called up share capital
+--------------------------------+--------+---------+--------+---------+
| | 2010 | 2009 |
+--------------------------------+------------------+------------------+
| | No. of | | No. of | |
| | shares | | shares | |
+--------------------------------+--------+---------+--------+---------+
| | '000 | GBP'000 | '000 | GBP'000 |
+--------------------------------+--------+---------+--------+---------+
| Authorised: | | | | |
+--------------------------------+--------+---------+--------+---------+
| Ordinary shares of 25p | 12,000 | 3,000 | 12,000 | 3,000 |
+--------------------------------+--------+---------+--------+---------+
| Allotted and fully paid: | | | | |
+--------------------------------+--------+---------+--------+---------+
| Ordinary shares of 25p | 8,435 | 2,109 | 8,435 | 2,109 |
+--------------------------------+--------+---------+--------+---------+
Included within the allotted and fully paid share capital were 9,490 ordinary
shares of 25p each (2009 - 9,490 ordinary shares of 25p each) held for the
benefit of employees.
At 31 May 2010 the following options to subscribe for ordinary shares of 25p
each granted to staff and associates (being in addition to those granted to
Directors as set out in the Directors' Report) were outstanding:
+--------------------------+---------+----------+--------------------+
| Grant date | No. of | Exercise | Date from |
| | options | price | which exercisable |
+--------------------------+---------+----------+--------------------+
| 11 September 2003 | 25,000 | 50.00p | 11 September 2006 |
+--------------------------+---------+----------+--------------------+
| 11 November 2003 | 37,500 | 80.00p | 12 November 2006 |
+--------------------------+---------+----------+--------------------+
| | | | |
+--------------------------+---------+----------+--------------------+
23 Notes to cash flow statement
+---------------------------------+---------+---------+---------+---------+
| | 2010 | 2009 |
+---------------------------------+-------------------+-------------------+
| | Group |Company | Group |Company |
+---------------------------------+---------+---------+---------+---------+
| | | | | |
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------------------------+---------+---------+---------+---------+
| Operating profit/(loss) | 370 | 369 | (294) | (294) |
+---------------------------------+---------+---------+---------+---------+
| Profit on disposal of | 3 | 3 | - | - |
| available-for-sale investments | | | | |
+---------------------------------+---------+---------+---------+---------+
| Depreciation of property, plant | 48 | 48 | 56 | 56 |
| and equipment | | | | |
+---------------------------------+---------+---------+---------+---------+
| Write-down of goodwill | - | - | 145 | 145 |
+---------------------------------+---------+---------+---------+---------+
| Amortisation of intangibles | - | - | 45 | 45 |
+---------------------------------+---------+---------+---------+---------+
| (Increase)/decrease in | (137) | (137) | 166 | 166 |
| investments held for trading | | | | |
+---------------------------------+---------+---------+---------+---------+
| Impairment of | 15 | 15 | 27 | 27 |
| available-for-sale investments | | | | |
+---------------------------------+---------+---------+---------+---------+
| Decrease/(increase) in | 1,622 | 1,619 | (2,001) | (2,077) |
| receivables | | | | |
+---------------------------------+---------+---------+---------+---------+
| Increase in payables | 52 | 101 | 1,659 | 1,839 |
+---------------------------------+---------+---------+---------+---------+
| Cash from/(used in) operations | 1,973 | 2,018 | (197) | (93) |
+---------------------------------+---------+---------+---------+---------+
| Interest paid | (6) | (6) | (6) | (6) |
+---------------------------------+---------+---------+---------+---------+
| Tax paid | (26) | (15) | (117) | (117) |
+---------------------------------+---------+---------+---------+---------+
| Net cash from/(used in) | 1,941 | 1,997 | (320) | (216) |
| operating activities | | | | |
+---------------------------------+---------+---------+---------+---------+
24 Contingent liabilities
In the ordinary course of business, the Company has given letters of indemnity
in respect of lost certified stock transfers and share certificates. While the
contingent liability arising thereon is not quantifiable, it is not believed
that any material liability will arise under these indemnities.
25 Financial commitments
Operating leases
At 31 May 2010 the Group had outstanding commitments for future minimum lease
payments under non-cancellable operating leases which fall due as follows:
+--------------------------------+-----------+---------+-----------+---------+
| | 2010 | 2009 |
+--------------------------------+---------------------+---------------------+
| | Land | Other | Land | Other |
| | and | | and | |
| | buildings | | buildings | |
+--------------------------------+-----------+---------+-----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------+-----------+---------+-----------+---------+
| In the next year | 103 | 5 | 178 | 5 |
+--------------------------------+-----------+---------+-----------+---------+
| In the second to fifth years | - | 3 | 103 | 7 |
| inclusive | | | | |
+--------------------------------+-----------+---------+-----------+---------+
| Total commitment | 103 | 8 | 281 | 12 |
+--------------------------------+-----------+---------+-----------+---------+
In June 2010, the Company entered into a new lease over its premises at London
Wall for a period of 10 years, with a 5 year break clause, at an annual rent and
service charge of GBP162,000.
26 Clients' money
At 31 May 2010 amounts held by the Company on behalf of clients in accordance
with the Client Money Rules of the Financial Services Authority amounted to
GBP28,371,000 (2009 - GBP39,584,000). The Company has no beneficial interest in
these amounts and accordingly they are not included in the balance sheet.
27 Financial instruments
Capital risk management
The Group manages its capital to ensure that it will be able to continue as a
going concern while maximising the return to stakeholders. The Group's capital
structure primarily consists of equity attributable to equity holders of the
parent, comprising issued capital, reserves and retained earnings. The Group has
no debt.
Externally imposed capital requirement
The Group is subject to the minimum capital requirements required by the
Financial Services Authority (FSA), and has complied with those requirements
throughout both financial periods. Capital adequacy and capital resources are
monitored by the Group on the basis of the Capital Requirements Directive. The
Group has a strong balance sheet, and has maintained regulatory capital at a
level in excess of its regulatory requirement. The Group's capital requirement
is under continuous review as part of the Internal Capital Adequacy Assessment
Process.
Significant accounting policies
Details of the significant accounting policies and methods adopted, including
the criteria for recognition, the basis for measurement and the basis on which
income and expenses are recognised, in respect of each class of financial asset,
financial liability and equity instrument, are disclosed in the accounting
policies in note 1.
Categories of financial instruments
+--------------------------------+---------+---------+---------+---------+
| | 2010 | 2009 |
+--------------------------------+-------------------+-------------------+
| | Group | Company | Group | Company |
+--------------------------------+---------+---------+---------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------+---------+---------+---------+---------+
| Available-for-sale investments | 1,228 | 1,228 | 1,233 | 1,233 |
+--------------------------------+---------+---------+---------+---------+
| Financial assets at amortised | | | | |
| cost - Trade and other | 9,042 | 9,042 | 10,664 | 10,661 |
| receivables | | | | |
+--------------------------------+---------+---------+---------+---------+
| Investments held for trading | 324 | 324 | 187 | 187 |
+--------------------------------+---------+---------+---------+---------+
| Cash and cash equivalents | 4,796 | 4,796 | 3,143 | 3,087 |
+--------------------------------+---------+---------+---------+---------+
| Financial liabilities at | | | | |
| amortised cost - Trade and | 10,888 | 11,497 | 10,836 | 11,395 |
| other payables | | | | |
+--------------------------------+---------+---------+---------+---------+
The carrying value of each class of financial asset denoted above approximates
to its fair value.
Fair value measurements recognised in the statement of financial position
The following table provides an analysis of financial instruments that are
measured subsequent to initial recognition at fair value, grouped into Levels 1
to 3 based on the degree to which the fair value is observable.
· Level 1 fair value measurements are those derived from quoted prices
(unadjusted) in active markets for identical assets or liabilities;
· Level 2 fair value measurements are those derived from inputs other than
quoted prices included within Level 1that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from
prices); and
· Level 3 fair value measurements are those derived from valuation techniques
that include inputs for the asset or liability that are not based on observable
market data (unobservable inputs).
+--------------------------------+---------+---------+---------+---------+
| | 2010 |
+--------------------------------+---------------------------------------+
| | Level | Level | Level | Total |
| | 1 | 2 | 3 | |
+--------------------------------+---------+---------+---------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------+---------+---------+---------+---------+
| Financial assets at FVTPL | | | | |
+--------------------------------+---------+---------+---------+---------+
| Derivative financial assets | 13 | - | - | 13 |
| for trading | | | | |
+--------------------------------+---------+---------+---------+---------+
| Non-derivative financial | 311 | - | - | 311 |
| assets for trading | | | | |
+--------------------------------+---------+---------+---------+---------+
| Available-for-sale financial | | | | |
| assets | | | | |
+--------------------------------+---------+---------+---------+---------+
| Quoted equities | 160 | - | - | 160 |
+--------------------------------+---------+---------+---------+---------+
| Unquoted equities | - | - | 1,068 | 1,068 |
+--------------------------------+---------+---------+---------+---------+
| Total | 484 | - | 1,068 | 1,552 |
+--------------------------------+---------+---------+---------+---------+
There were no transfers between levels during the year.
Reconciliation of Level 3 fair value measurements of financial assets
+--------------------------------+--------+--------+----------+---------+
| Available-for-sale financial | | | Unquoted | Total |
| assets | | | equities | |
+--------------------------------+--------+--------+----------+---------+
| | | | GBP'000 | GBP'000 |
+--------------------------------+--------+--------+----------+---------+
| Balance at 1 June 2009 | | | 1,068 | 1,068 |
+--------------------------------+--------+--------+----------+---------+
| Total gains or losses: | | | - | - |
+--------------------------------+--------+--------+----------+---------+
| Balance at 31 May 2010 | | | 1,068 | 1,068 |
+--------------------------------+--------+--------+----------+---------+
There were no reclassifications during the year. There were no financial
liabilities subsequently measured at fair value.
The Group's finance function monitors and manages the financial risks relating
to the operations of the Group. The Group is exposed to market and other price
risk, credit risk and to a very limited amount interest rate risk and liquidity
risk.
The Board of Directors monitors risks and implements policies to mitigate risk
exposures.
Credit risk
Credit risk refers to the risk that a third party will default on its
contractual obligations resulting in financial loss to the Group.
Third party receivables consist of customers balances, spread across
institutional and private clients. Ongoing credit evaluation is performed on the
financial condition of accounts receivable.
The Group does not have any significant credit risk exposure to any single third
party or any group of third parties having similar characteristics. The credit
risk on liquid funds is limited because the third parties are one of the UK big
four clearing banks or a Dutch state owned bank.
Market risk
The Group is mainly exposed to market risk in respect of its trading as agent in
equities and debt instruments with the volume of trading and thus transaction
revenue retreating in market downturns, and to variations in asset values and
thus management fees. There has been no material change to the Group's exposure
to market risks or the manner in which it manages and measures the risks.
Market risk also gives rise to variations in the value of investments held by
Fiske, acting as principal. These are designated as available-for-sale and are
mostly held for strategic rather than trading purposes and not actively traded.
Interest rate risk management
The Group has no borrowings and is therefore not exposed to interest rate risk
in that respect. The Group's exposure to interest rates on financial assets is
detailed in the liquidity risk management section of this note.
Liquidity risk management
The Group manages liquidity risk by maintaining adequate reserves and by
continuously monitoring forecast and actual cash flows and matching the maturity
profiles of financial assets and liabilities. In respect of counterparty
creditors and trade payables the amounts due are all payable between 0 and 15
days.
Sensitivity analysis
Equity
The fair values of all available-for-sale investments and their exposure to
equity price risks at the reporting date are based on the accounting policy in
note 1(j). If equity prices had been 5% higher/lower the revaluation reserve
would increase/decrease by GBP61,000 (2009 - increase/decrease by GBP62,000).
In respect of investments held for trading purposes and their exposure to equity
price risks at the reporting date, if equity prices had been 5% higher, net
profit for the year ended 31 May 2010 would have been GBP16,000 higher (2009 -
GBP9,000 higher) and vice versa if prices were lower.
Cash
The Group's financial cash asset of GBP4,796,000 (2009 - GBP3,143,000) is held
at a fixed interest rate and is available on demand. If prevailing interest
rates during the year (approximately 0.9%) had been comparable with those
prevailing in the prior year (approximately 4%), bank interest receivable of
GBP27,000 (2009: GBP109,000) would have been equivalently higher. A further
reduction in rates in the period would have had no material impact.
28 Related party transactions
Transactions between the Company and its subsidiaries which are related parties,
have been eliminated on consolidation and are not disclosed in this note as they
are not material.
Directors' transactions
The Company paid fees amounting in total of GBP7,803 (2009 - GBP4,453) for
services supplied by Fairfax Perrin Limited and Chatsford Corporate Finance
Limited, companies of which M.H.W.Perrin is a Director and holds an interest.
The Group and Company received by way of a service fee GBP111,000 (2009 -
GBP114,000) from The Investment Company Plc, a company of which S. J. Cockburn
is a Director and holds an interest, in respect of administrative, accounting
and clerical support and the supply of facilities on an arm's length basis.
Directors transact share-dealing business with the Company under normal customer
business terms and in accordance with applicable laws and regulations. In the
year to 31 May 2010, commission earned from this by the Company amounted to
GBP8,155 (2009: GBP14,425).
During the year, the Directors each received dividends attributable to their
respective shareholdings, as disclosed in the Directors' Report, amounting to 4p
(2009: 5.5p) per ordinary share.
Details of Directors' interests in ordinary shares and in share options are as
disclosed in the Directors' Report, together with details of other significant
holdings in the equity of the Company. The Company has no ultimate controlling
party.
Notice of Annual General Meeting
Notice is hereby given that an Annual General Meeting of Fiske plc will be held
at Salisbury House, London Wall, London EC2M 5QS (entrance via Circus Place) on
30 September 2010 at 12.30 p.m. for the following purposes:
Ordinary Business:
1. To receive the Report of the Directors and Auditors and the Accounts
for the year ended 31 May 2010.
2. To re-elect Amanda Jane Andrews as a Director of the company.
3. To re-elect James Philip Quibell Harrison as a Director of the
company.
4. To re-elect Alan Dennis Meech as a Director of the company.
5. To re-elect Stephen John Cockburn as a Director of the company.
6. To re-elect Martin Henry Withers Perrin as a Director of the company.
7. To reappoint Deloitte LLP as auditors and to authorise the Board to
fix their remuneration.
Special Business
To consider and, if thought fit, to pass the following Resolutions which will be
proposed as to Resolution 8 as an ordinary Resolution and as to Resolutions 9
and 10 as special Resolutions:
8. THAT for the purposes of section 551 Companies Act 2006 ("2006 Act")
(and so that expressions used in this resolution shall bear the same meanings as
in the said section 551):
(a) the Directors be generally and unconditionally authorised to exercise
all powers of the Company to allot shares and to grant such subscription and
conversion rights as are contemplated by sections 551(1)(a) and (b) of the 2006
Act respectively up to a maximum nominal amount of GBP632,640 to such persons
and at such times and on such terms as they think proper during the period
expiring at the conclusion of the next Annual General Meeting of the Company
(unless previously varied, revoked or renewed by the Company in general
meeting); and
(b) the Company shall be entitled to make, prior to the expiry of such
authority, any offer or agreement which would or might require relevant
securities to be allotted after the expiry of such authority and the Directors
may allot any relevant securities pursuant to such offer or agreement as if such
authority had not expired; and
(c) all prior authorities to allot securities be revoked but without
prejudice to the allotment of any securities already made or to be made pursuant
to such authorities.
9. THAT:
(a) the Company be and is hereby generally and unconditionally authorised
for the purpose of section 701 of the Companies Act 2006 (the "2006 Act") to
make market purchases (within the meaning of section 693 of the 2006 Act) of
ordinary shares of 25p each in the capital of the Company ("ordinary shares") on
such terms and in such manner as the Directors may from time to time determine
provided that:
(b) the maximum number of ordinary shares hereby authorised to be acquired
is 843,520;
(c) the minimum price which may be paid for an ordinary share is 25p;
(d) the maximum price which may be paid for an ordinary share is an amount
equal to 105% of the average of the middle market quotations for an ordinary
share as derived from The London Stock Exchange Daily Official List for the five
business days immediately preceding the day on which an ordinary share is
contracted to be purchased;
(e) unless previously revoked or varied, the authority hereby conferred
shall expire at the close of the next Annual General Meeting of the Company or
18 months from the date on which this resolution is passed, whichever shall be
the earlier; and
(f) the Company may make a contract to purchase ordinary shares under the
authority hereby conferred prior to the expiry of such authority, which contract
will or may be executed wholly or partly after the expiry of such authority, and
may purchase ordinary shares in pursuance of any such contract.
10. THAT the Directors be granted power pursuant to Section 571 of the
Companies Act 2006 to allot equity securities (within the meaning of section 560
of the 2006 Act) for cash, pursuant to the authority conferred on them to allot
such shares or grant such rights by Resolution 8 contained in the Notice of the
Annual General Meeting of the Company of which this Resolution forms part as if
section 561(1) and sub sections (1)-(6) of section 562 of the 2006 Act did not
apply to any such allotment, provided that the power conferred by this
Resolution shall be limited to:
(a) the allotment of equity securities in connection with an issue or
offering in favour of holders of equity securities and any other persons
entitled to participate in such issue or offering where the equity securities
respectively attributable to the interests of such holders and persons are
proportionate (as nearly as maybe) to the respective number of equity securities
held or deemed to be held by them on the record date of such allotment, subject
only to such exclusions or other arrangements as the Directors may consider
necessary or expedient to deal with fractional entitlements or legal or
practical problems under the laws or requirements of any recognised regulatory
body or stock exchange in any territory; and
(b) the allotment of equity securities up to an aggregate nominal value of
GBP105,440; and
(c) shall expire at the conclusion of the next Annual General Meeting of
the Company or, if earlier, the date 15 months from the date of passing of this
Resolution unless previously varied, revoked or renewed by the Company in
general meeting provided that the Company may, before such expiry, make any
offer or agreement which would or might require equity securities to be allotted
after such expiry and the Directors may allot equity securities pursuant to any
such offer or agreement as if the power hereby conferred had not expired; and
(d) all prior powers granted under section 571 of the Companies Act 2006 be
revoked provided that such revocation shall not have retrospective effect.
+--------------------------------------------------+-----------------+
| By Order of the Board | Registered |
| F G Luchini | office: |
| Secretary | Salisbury House |
| 23 August 2010 | London Wall |
| | London EC2M 5QS |
+--------------------------------------------------+-----------------+
Notes to Notice of Annual General Meeting
1. A member entitled to attend and vote at the Meeting convened by the
above notice may appoint a proxy to exercise all or any of his rights to attend,
speak and vote at a meeting of the Company. A proxy need not be a member of the
Company. A member may appoint more than one proxy in relation to the Meeting,
provided that each proxy is appointed to exercise the rights attached to a
different share or shares held by that member. A form of proxy is enclosed. To
be valid the enclosed form of proxy together with the power of attorney or other
authority, if any, under which it is signed or a notarially certified or office
copy thereof, must be delivered in accordance with instructions on it so as to
be received by the Company's registrars, Capita Registrars, Proxies, The
Registry, 34 Beckenham Road, Beckenham BR3 4TU, not less than 48 hours before
the time appointed for holding the Meeting or any adjournment thereof. Lodgement
of a form of proxy will not prevent a member from attending and voting in person
if so desired.
2. Copies of contracts of service between the non-executive directors and
the Company will be available at the registered office of the company on any
weekday prior to the meeting (weekends and public holidays excepted) during
normal business hours. Copies of the above mentioned documents will also be
available on the date of the Annual General Meeting at the place of the meeting
for 15 minutes prior to the meeting until its conclusion.
3. Pursuant to section 360B of the 2006 Act and regulation 41 of the
Uncertificated Securities Regulations 2001, only shareholders registered in the
register of members of the Company as at 12.30 p.m. on 28 September 2010 shall
be entitled to attend and vote at the Meeting in respect of the number of shares
registered in their name at such time. If the Meeting is adjourned, the time by
which a person must be entered on the register of members of the Company in
order to have the right to attend and vote at the adjourned meeting is at 12.30
p.m. on the day preceding the date fixed for the adjourned meeting. Changes to
the register of members after the relevant times shall be disregarded in
determining the rights of any person to attend or vote at the Meeting.
4. In the case of joint holders, the vote of the senior who tenders a
vote whether in person or by proxy will be accepted to the exclusion of the
votes of the other joint holders and for this purpose seniority will be
determined by the order in which names stand in the register of members of the
Company in respect of the relevant joint holding.
5. By attending the Meeting members agree to receive any communications
made at the meeting.
6. In order to facilitate voting by corporate representatives at the
Meeting, arrangements will be put in place at the Meeting so that (i) if a
corporate shareholder has appointed the Chairman of the Meeting as its corporate
representative to vote on a poll in accordance with the directions of all of the
other corporate representatives for that shareholder at the Meeting, then on a
poll those corporate representatives will give voting directions to the
Chairman and the Chairman will vote (or withhold a vote) as corporate
representative in accordance with those directions; and (ii) if more than one
corporate representative for the same corporate shareholder attends the Meeting
but the corporate shareholder has not appointed the Chairman of the Meeting as
its corporate representative, a designated corporate representative will be
nominated, from those corporate representatives who attend, who will vote on a
poll and the other corporate representatives will give voting directions to that
designated corporate representative. Corporate shareholders are referred to the
guidance issued by the Institute of Chartered Secretaries and Administrators on
proxies and corporate representatives (www.icsa.org.uk) for further details of
the procedure. The guidance includes a sample form of appointment letter if the
Chairman is being appointed as described in (i) above.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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