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Share Name Share Symbol Market Type Share ISIN Share Description
Fletcher King Plc LSE:FLK London Ordinary Share GB0003425310 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 42.00p 38.00p 46.00p 42.00p 42.00p 42.00p 0 07:49:01
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Real Estate Investment & Services 3.1 0.3 2.3 18.5 3.87

Fletcher King PLC Half-year Report

14/12/2018 7:01am

UK Regulatory (RNS & others)


Fletcher King (LSE:FLK)
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1 Year : From Jun 2018 to Jun 2019

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TIDMFLK

RNS Number : 4600K

Fletcher King PLC

14 December 2018

FLETCHER KING PLC

Interim Results for the 6 months ended 31 October 2018

Financial Highlights

                     Turnover   :           GBP1,465,000               (2017: GBP1,489,000) 
                     PBT           :           GBP132,000                  (2017: GBP148,000) 
                     Basic EPS :           1.13p per share       (2017: 1.26p per share) 
                     Dividend   :           1.00p per share       (2017: 1.00p per share) 

Operational Highlights

-- Performance was marginally lower than the comparative period last year and continues to reflect the subdued property market associated with Brexit and resulting political uncertainties.

-- Steady and predictable revenue from asset management and fund management clients provides ongoing support for the business along with a regular supply of valuation instructions from lending banks.

-- A reasonable volume of sales instructions were completed in the period but revenues from ratings appeals remained lower than normal due to the slow processing of appeals by the Valuation Office Agency.

Commenting on the results David Fletcher, Chairman of Fletcher King said:

"We had a reasonable first half which closely mirrored the same period last year. Brexit uncertainty will continue to impact the market and we expect sentiment to remain cautious. This will be likely to impact our transactional fee income and our ability to maintain profits."

ENQUIRIES:

Fletcher King Plc

David Fletcher

Tel: 020 7493 8400

Cairn Financial Advisers LLP (Nomad)

James Caithie / Tony Rawlinson

Tel: 020 7213 0880

The interim results are available on the Company's website: www.fletcherking.co.uk

CHAIRMAN'S STATEMENT

Results

Turnover for the period was GBP1,465,000 (2017: GBP1,489,000) with a profit before tax of GBP132,000 (2017: GBP148,000). Your Directors have declared an interim dividend of 1.0p per share (2017: 1.0p per share) to be paid on 15 February 2019 to shareholders on the register at the close of business on 18 January 2019.

The Commercial Property Market

Brexit and resulting political uncertainties continue to overshadow the property market and little has changed from the comments I made at the same time last year. The retail property sector, with very few exceptions, continues to be under pressure with rents falling in most areas along with capital values. So long as online sales continue to grow, and there is little sign of them stopping, it is difficult to predict when the decline in the retail property sector might end.

Conversely, the online sales growth referred to above continues to fuel demand for industrial space and rents in this sector have been growing. There is also strong demand for good well located industrial investments. Yields are at a historically low level but are now unlikely to harden further.

The office market for larger space (20,000 sq. ft. upwards) in Central London and the major UK cities remains reasonably strong and in the City of London demand continues to outstrip supply, leading to significant pre-lets on new developments and growing rents. However the sub 5,000 sq. ft. market is suffering and serviced office providers such as WeWorks are severely disrupting the traditional letting market.

The investment market for well let offices is strong in all the major centres and foreign buyers have continued to be very active in Central London.

Business Overview

Our first half results closely mirror the comparative period last year.

Asset Management continued steadily and we completed a reasonable volume of investment sales.

Bank valuations were steady but the Valuation Office Agency continues to be slow to process outstanding rating appeals and income from this source suffered accordingly.

Outlook

Brexit and resulting political uncertainties will, we believe, continue to impact the property market and our ability to maintain turnover and profits.

Asset Management is likely to be the least affected by these uncertainties and should continue to produce a steady income flow.

We also have some good sales instructions in the Investment department. However until there is greater clarity over Brexit, many clients are delaying new investment decisions.

The properties in our SHIPS 15 and SHIPS 16 syndicates (in which the Company co-invests and acts as adviser) have both achieved further lettings during the period but are not yet fully occupied and it is very difficult to predict when they might be. They will be sold in due course but it is unlikely to be in this financial year.

We have a steady flow of valuation instructions but rating appeal income is likely to be affected by the delays of the Valuation Office Agency.

DAVID FLETCHER

CHAIRMAN

13 December 2018

Fletcher King Plc

Consolidated Interim Statement of Comprehensive Income

for the 6 months ended 31 October 2018

 
                                         6 months           6 months 
                                            ended              ended           Year ended 
                                       31 October         31 October             30 April 
                                             2018               2017 
                                      (Unaudited)        (Unaudited)       2018 (Audited) 
                                           GBP000             GBP000               GBP000 
----------------------------------  -------------      -------------      --------------- 
 
 Revenue                                    1,465              1,489                3,080 
 Employee benefits expense                  (786)              (750)              (1,609) 
 Depreciation expense                         (2)               (17)                 (18) 
 Other operating expenses                   (546)              (575)              (1,181) 
                                    -------------      -------------      --------------- 
 
 Operating profit                             131                147                  272 
 
 Finance income                                 1                  1                    2 
                                    -------------      -------------      --------------- 
 
   Profit before taxation                     132                148                  274 
 
 Taxation                                    (28)               (32)                 (65) 
                                    -------------      -------------      --------------- 
 
 Profit for the period                        104                116                  209 
                                    -------------      -------------      --------------- 
 
 
   Total comprehensive income for 
   the period                                 104                116                  209 
                                    -------------      -------------      --------------- 
 
 
   Earnings per share (note 4) 
 - Basic                                    1.13p              1.26p                2.27p 
 - Diluted                                  1.13p              1.25p                2.25p 
 
   Dividends per share 
 Interim dividend proposed                  1.00p              1.00p                    - 
 Dividends paid                             0.75p              1.00p                1.75p 
 

Fletcher King Plc

Consolidated Interim Statement of Financial Position

as at 31 October 2018

 
                                         31 October         31 October         30 April 
                                               2018               2017             2018 
                                        (Unaudited)        (Unaudited)        (Audited) 
                                             GBP000             GBP000           GBP000 
-------------------------------       -------------      -------------      ----------- 
 
 Assets 
 Non-current assets 
 Property, plant and equipment                   10                 13               12 
 Financial assets                             1,603              1,588            1,588 
 Deferred tax assets                             16                 16               16 
 
 
                                              1,629              1,617            1,616 
 
 
 Current Assets 
 Trade and other receivables                    823                937              917 
 Cash and cash equivalents                    2,277              2,187            2,628 
 
 
                                              3,100              3,124            3,545 
 
 
 Total assets                                 4,729              4,741            5,161 
 
 
 
 Liabilities 
 Current liabilities 
 Trade and other payables                       246                280              485 
 Current taxation liabilities                    71                 35               43 
 Other creditors                                236                286              492 
 
 
 Total liabilities                              553                601            1,020 
 
 
 
 Shareholders' equity 
 Share capital                                  921                921              921 
 Share premium                                  140                140              140 
 Reserves                                     3,115              3,079            3,080 
 
 
 Total shareholders' equity                   4,176              4,140            4,141 
 
 
 Total equity and liabilities                 4,729              4,741            5,161 
 
 

Fletcher King Plc

Consolidated Interim Statement of Changes in Equity

for the 6 months ended 31 October 2018

 
                                                              Profit 
                                       Share          Share      and    TOTAL 
                                     capital        premium     loss   EQUITY 
                                      GBP000         GBP000   GBP000   GBP000 
----------------------------   -------------  -------------  -------  ------- 
 
 Balance at 1 May 2018                   921            140    3,080    4,141 
 
 
 Total comprehensive income 
  for the period                           -              -      104      104 
 Equity dividends paid                     -              -     (69)     (69) 
-----------------------------  -------------  -------------  -------  ------- 
 
 Balance at 31 October 2018 
  (Unaudited)                            921            140    3,115    4,176 
=============================  =============  =============  =======  ======= 
 
 
 Balance at 1 May 2017                   921            140    3,239    4,300 
 
 
 Total comprehensive income 
  for the period                           -              -      116      116 
 Equity dividends paid                     -              -    (276)    (276) 
-----------------------------  -------------  -------------  -------  ------- 
 
 Balance at 31 October 2017 
  (Unaudited)                            921            140    3,079    4,140 
=============================  =============  =============  =======  ======= 
 
 
 Balance at 1 May 2017                   921            140    3,239    4,300 
                               -------------  -------------  -------  ------- 
 
 Total comprehensive income 
  for the period                           -              -      209      209 
 Equity dividends paid                     -              -    (368)    (368) 
-----------------------------  -------------  -------------  -------  ------- 
 
 Balance at 30 April 2018 
  (Audited)                              921            140    3,080    4,141 
=============================  =============  =============  =======  ======= 
 

Fletcher King Plc

Consolidated Interim Statement of Cash Flows

for the 6 months ended 31 October 2018

 
                                                    6 months               6 months 
                                                       ended                  ended       Year ended 
                                                  31 October             31 October         30 April 
                                                                                                2018 
                                            2018 (Unaudited)       2017 (Unaudited)        (Audited) 
                                                      GBP000                 GBP000           GBP000 
------------------------------------       -----------------      -----------------      ----------- 
 
 Cash flows from operating 
  activities 
 Profit before taxation from 
  continuing operations                                  132                    148              274 
 Adjustments for: 
 Depreciation expense                                      2                     17               18 
 Finance income                                          (1)                    (1)              (2) 
                                           -----------------      -----------------      ----------- 
 
 Cash flows from operating 
  activities 
 before movement in working 
  capital                                                133                    164              290 
 
 Decrease in trade and other 
  receivables                                             94                    558              578 
 Decrease in payables                                  (495)                  (885)            (474) 
                                           -----------------      -----------------      ----------- 
 
 Cash (absorbed)/generated 
  from operations                                      (268)                  (163)              394 
 Taxation paid                                             -                   (94)            (119) 
                                           -----------------      -----------------      ----------- 
 
 Net cash flows (used in)/generated 
  from operating activities                            (268)                  (257)              275 
-----------------------------------------  -----------------      -----------------      ----------- 
 
 Cash flows from investing 
  activities 
 Purchase of financial assets                           (15)                      -                - 
 Purchase of fixed assets                                  -                   (14)             (14) 
 Finance income                                            1                      1                2 
 
 Net cash flows used in investing 
  activities                                            (14)                   (13)             (12) 
-----------------------------------------  -----------------      -----------------      ----------- 
 
 Cash flows from financing 
  activities 
 Dividends paid to shareholders                         (69)                  (276)            (368) 
-----------------------------------------  -----------------      -----------------      ----------- 
 
 Net cash flows from financing 
  activities                                            (69)                  (276)            (368) 
                                           -----------------      -----------------      ----------- 
 Net decrease in cash and cash 
  equivalents                                          (351)                  (546)            (105) 
 
   Cash and cash equivalents at 
   start of period                                     2,628                  2,733            2,733 
                                           -----------------      -----------------      ----------- 
 
   Cash and cash equivalents 
 at end of period                                      2,277                  2,187            2,628 
-----------------------------------------  -----------------      -----------------      ----------- 
 

Fletcher King Plc

Explanatory Notes

   1.     General information 

The Company is a public limited company incorporated and domiciled in England and Wales. The address of its registered office is 61 Conduit Street, London W1S 2GB.

These interim financial statements were approved by the Board of Directors on 13 December 2018.

   2.     Basis of preparation 

The interim financial information in this report has been prepared using accounting policies consistent with IFRS as adopted by the European Union. IFRS is subject to amendment and interpretation by the International Accounting Standards Board (IASB) and the International Financial Reporting Standards Interpretations Committee and there is an ongoing process of review and endorsement by the European Commission. The financial information has been prepared on the basis of IFRS that the Directors expect to apply for the year ended 30 April 2019.

These interim consolidated financial statements have been prepared in accordance with the Group's accounting policies as set out in the Group's latest annual financial statements for the year ended 30 April 2018 and IFRS 9 "Financial Instruments" and IFRS 15 "Revenue from Contracts with Customers". These standards have been applied for the first time in preparing the interim financial information. The Directors consider that the application of these standards has not had a material impact on the recognition and measurement of items in the interim financial information.

   3.     Non Statutory Accounts 

The financial information for the period ended 31 October 2018 set out in this interim report does not constitute the Group's statutory accounts for that period. Whilst the financial figures included in this interim report have been computed in accordance with IFRS, this interim report does not contain sufficient information to constitute an interim financial report as that term is defined in IAS34. The statutory accounts for the year ended 30 April 2018 have been delivered to the Registrar of Companies. The auditors reported on those accounts; their report was unqualified, did not contain a statement under either Section 498(2) or Section 498(3) of the Companies Act 2006 and did not include references to any matters to which the auditor drew attention by way of emphasis.

The financial information for the 6 months ended 31 October 2018 and 31 October 2017 is unaudited.

   4.     Earnings per share 
 
                                                    6 months         6 months    Year ended 
                                               to 31 October    to 31 October      30 April 
                                                        2018             2017          2018 
                                                      Number           Number        Number 
 
   Weighted average number of shares 
   for basic earnings per share                    9,209,779        9,209,779     9,209,779 
 Share options                                             -           58,907        58,907 
                                             ---------------  ---------------  ------------ 
 Weighted average number of shares 
  for diluted earnings per share                   9,209,779        9,268,686     9,268,686 
                                             ===============  ===============  ============ 
 
 
                                                   GBP000              GBP000        GBP000 
                                             ---------------  ---------------  ------------ 
 
   Earnings for basic and diluted earnings 
   per share:                                            104              116           209 
                                             ===============  ===============  ============ 
 
 
   Basic earnings per share                            1.13p            1.26p         2.27p 
 Diluted earnings per share                            1.13p            1.25p         2.25p 
                                             ===============  ===============  ============ 
 

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

END

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December 14, 2018 02:01 ET (07:01 GMT)

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