Fletcher King PLC Final Results (8704D)

TIDMFLK

RNS Number : 8704D

Fletcher King PLC

12 July 2016

FLETCHER KING PLC

Preliminary Results for the Year Ending 30(th) April 2016

Highlights

   --      Revenue for the year of  GBP4,633,000 (2015: GBP3,380,000) 
   --      Profit before tax of GBP1,355,000 (2015: GBP461,000) 
   --      Profit after tax of GBP1,060,000 (2015: GBP359,000) 
   --      Basic and diluted earnings per share of 11.51p (2015: 3.90p) 

-- Final dividend of 1.00p per share. An interim dividend of 1.00p per share was paid together with a special dividend of 8.00p per share and therefore the total ordinary dividend for the year will be 10.00p per share (2015: 2.25p)

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

"Our excellent performance this year was significantly influenced by the fees and profits earned on the sale of 145 Leadenhall Street, a property owned by the SHIPS 14 Syndicate in which the company co-invested and acted as adviser. The underlying business performed much in line with last year.

The unexpected vote to leave the EU has had a destabilising effect on the market and the uncertainties are likely to influence it for some time to come. However, with no debt and cash reserves, we are well placed to weather challenging times as we have done on numerous occasions in the past."

For further information, please call:

 
 David Fletcher/ Peter 
  Bailey, Fletcher King     020 7493 8400 
 James Caithie, Cairn 
  Financial Advisers LLP    020 7148 7900 
 

CHAIRMAN'S STATEMENT

Results

Revenue for the year was GBP4,633,000 (2015: GBP3,380,000). In addition, profit on disposal of property investments amounted to GBP593,000 (2015: GBPnil). Profit before tax was GBP1,355,000 (2015: GBP461,000).

The Board is proposing a final dividend of 1.00p per share. The final dividend is subject to shareholder approval at the AGM and will be paid on the 7 October 2016 to those shareholders on the register at close of business on 9 September 2016. With the interim dividend of 1.00p per share (2015: 1.50p per share) plus the special dividend of 8.00p per share already paid, the dividend for the year will amount to 10.00p per share (2015: 2.25p per share).

The Commercial Property Market

The market generally has seen reasonably strong demand from both tenants and investors. However this demand diminished somewhat in the lead up to the EU referendum. This was particularly noticeable in the investment market. The stamp duty increase of 1% didn't help and data from the Investment Property Databank (IPD) showed capital values in Q1 2016 falling for the first time for some years albeit by only 0.2%. UK investors have been net sellers in Q4 2015 and Q1 2016 and the outlook post Brexit is currently uncertain.

Business Overview

As reported in the Interim Results, our excellent performance this year was significantly influenced by the fees and profits earned on the sale of 145 Leadenhall Street, a property owned by the SHIPS 14 Syndicate in which the Group co-invested and acted as adviser. The sale of the property and the payment of a special dividend of 8p per share was announced on 1 September 2015.

During the year, we established two new SHIPS funds to acquire freehold office buildings in Botolph Lane adjacent to Monument Tube Station in the City and a building in Sekforde Street, Clerkenwell. They will become vacant by the end of 2016 when refurbishment works will commence. We anticipate having them available to let in 2017.

The underlying business continued to perform well with all departments performing much in line with last year. Valuation instructions increased significantly, reflecting increased bank lending to the commercial property sector. The Valuation Office has again slowed down settlement of Rating Appeals which affected turnover, but we still settled some significant assessments.

Outlook

We have started the year well and have completed the sale of over GBP50m of office and industrial investments.

The unexpected vote to leave the EU has had a destabilising effect on the market and the uncertainties are likely to influence it for some time to come.

Clients are delaying decisions to sell and purchase investment property and this is not helpful for our transaction business.

The effect of this is impossible to predict but we are debt free and have cash reserves. We are well placed to weather challenging times as we have done on numerous times in the past.

I hope that later in the year the market will establish a pattern and give confidence to our clients to move forward.

DAVID FLETCHER

CHAIRMAN

12 July 2016

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the year ended 30 April 2016

 
                                      Note      2016      2015 
                                              GBP000    GBP000 
 
 
 Revenue                                       4,633     3,380 
 Employee benefits expense                   (2,640)   (1,843) 
 Depreciation expense                           (34)      (36) 
 Other operating expenses                    (1,230)   (1,057) 
                                            --------  -------- 
 
 Operating profit                                729       444 
 
 Profit on disposal of available                 593         - 
  for sale investments 
 Income from investments                          22         4 
 Finance income                                   11        13 
                                            --------  -------- 
 
 Profit before taxation                        1,355       461 
 
 
 Taxation                                      (295)     (102) 
                                            --------  -------- 
 
 Profit and total comprehensive 
  income for the year attributable 
  to equity shareholders                       1,060       359 
 Basic and diluted earnings 
  per share                              3    11.51p     3.90p 
 
 
 
 
 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 April 2016

 
                                     2016     2015 
                                   GBP000   GBP000 
 
 Assets 
 Non-current assets 
 Property, plant and equipment         50       84 
 Available-for-sale investments     1,274      875 
 Deferred tax assets                   18       18 
                                  -------  ------- 
                                    1,342      977 
                                  -------  ------- 
 
 Current assets 
 Trade and other receivables          871    1,149 
 Cash and cash equivalents          2,846    2,852 
                                  -------  ------- 
                                    3,717    4,001 
                                  -------  ------- 
 
 
 
 Total assets                       5,059    4,978 
                                  -------  ------- 
 
 Liabilities 
 Current liabilities 
 Trade and other payables             346      516 
 Current taxation liabilities         282       78 
 Other payables                       526      641 
                                  -------  ------- 
                                    1,154    1,235 
                                  -------  ------- 
 
 
 Total liabilities                  1,154    1,235 
                                  -------  ------- 
 
 Shareholders' equity 
 Share capital                        921      921 
 Share premium                        140      140 
 Retained Earnings                  2,844    2,682 
                                  -------  ------- 
 Total shareholders' equity         3,905    3,743 
                                  -------  ------- 
 
 Total equity and liabilities       5,059    4,978 
                                  -------  ------- 
 
 

CONSOLIDATED STATEMENT OF CASH FLOWS

for the year ended 30 April 2016

 
                                       2016     2015 
                                     GBP000   GBP000 
 
 Cash flows from operating 
  activities 
 Profit before taxation 
  from continuing operations          1,355      461 
 Adjustments for: 
 Depreciation expense                    34       36 
 Profit on disposal of available        593        - 
  for sale investments 
 Income from investments               (22)      (4) 
 Finance income                        (11)     (13) 
                                   --------  ------- 
 
 
 Cash flows from operating 
  activities before 
  movement in working capital           763      480 
 Decrease in trade and other 
  receivables                           284       98 
 Decrease in trade and other 
  payables                            (291)    (432) 
                                   --------  ------- 
 
 Cash generated from operations         756      146 
 
 Taxation paid                         (91)    (147) 
                                   --------  ------- 
 
 Net cash flows from operating 
  activities                            665      (1) 
                                   --------  ------- 
 
 Cash flows from investing 
  activities 
 Purchase of fixed assets                 -      (8) 
 Purchase of investments            (1,274)    (125) 
 Sale of investments                  1,468        - 
 Finance income                          11       13 
 Income from investments                 22        4 
                                   --------  ------- 
 Net cash flows from investing 
  activities                            227    (116) 
                                   --------  ------- 
 
 Cash flows from financing 
  activities 
 Dividends paid to shareholders       (898)    (345) 
                                   --------  ------- 
 Net cash flows from financing 
  activities                          (898)    (345) 
                                   --------  ------- 
 
 Net decrease in cash and 
  cash equivalents                      (6)    (462) 
 Cash and cash equivalents 
  at start of year                    2,852    3,314 
                                   --------  ------- 
 Cash and cash equivalents 
  at end of year                      2,846    2,852 

                                   --------  ------- 
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 30 April 2016

 
 
                            Note       Share       Share     Retained      TOTAL 
                                     capital     premium     Earnings     EQUITY 
                                      GBP000      GBP000       GBP000     GBP000 
 
 Balance at 1 May 2014                   921         140        2,668      3,729 
 
 Total comprehensive 
  income for the year                      -           -          359        359 
 Equity dividends paid         2           -           -        (345)      (345) 
 
 Balance at 30 April 
  2015                                   921         140        2,682      3,743 
 
 Total comprehensive 
  income for the year                      -           -        1,060      1,060 
 Equity dividends paid         2           -           -        (898)      (898) 
 
 
 Balance at 30 April 
  2016                                   921         140        2,844      3,905 
                                  ----------  ----------  -----------  --------- 
 
 

NOTES

1. Basis of preparation

The financial information set out above, which has been prepared on the basis of the accounting policies as set out in the prior year's accounts, does not comprise the company's statutory financial statements for the year ended 30 April 2016. While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRSs) as adopted by the European Union, this announcement does not itself contain sufficient information to comply with IFRSs. Statutory financial statements for the previous financial year ended 30 April 2015 have been delivered to the Registrar of Companies. The auditors' report on those financial statements was unqualified and did not contain any statement under section 498(2) or (3) of the Companies Act 2006 and did not include references to any matters to which the auditor drew attention by way of emphasis. The statutory accounts for the year ended 30 April 2016 have not yet been delivered to the Registrar of Companies, nor have the auditors yet reported on them.

2. Dividends

 
 Year ended 30 April                   2016     2015 
                                     GBP000   GBP000 
 
 Equity dividends on ordinary 
  shares: 
 Declared and paid during year 
 Ordinary final dividend for the 
  year ended 30 April 2015: 0.75p 
  per share (2014: 2.25p)                69      207 
 Special dividend for the year 
  ended 30 April 2016: 8.00p per 
  share 
  Interim dividend for the year         737        - 
  ended 30 April 2016: 1.00p per 
  share (2015: 1.50p)                    92      138 
                                    -------  ------- 
 
                                        898      345 
                                    -------  ------- 
 
 Proposed ordinary final dividend 
  for the year ended 
  30 April 2016: 1.00p per share         92 
                                    ------- 
 
 

3. Earnings per share

 
                                           2016        2015 
                                             No          No 
 
 Weighted average number of shares 
  for basic and diluted earnings 
  per share                           9,209,779   9,209,779 
                                     ---------- 
 
                                         GBP000      GBP000 
 Earnings for basic and diluted 
  earnings per share                      1,060         359 
 
 
 
 Basic and diluted earnings per 
  share                                  11.51p       3.90p 
 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

FR RBMFTMBABBIF

(END) Dow Jones Newswires

July 12, 2016 02:00 ET (06:00 GMT)