TIDMFLK
RNS Number : 9211K
Fletcher King PLC
13 July 2017
FLETCHER KING PLC
Preliminary Results for the Year Ending 30(th) April 2017
Highlights
-- Revenue for the year of GBP4,094,000 (2016: GBP4,633,000)
-- Profit before tax of GBP738,000 (2016: GBP1,355,000)
-- Profit after tax of GBP579,000 (2016: GBP1,060,000)
-- Basic and diluted earnings per share of 6.29p (2016: 11.51p)
-- Final dividend of 3.00p per share. An interim dividend of
1.00p per share was paid and therefore the total ordinary dividend
for the year will be 4.00p per share (2016: 10.00p)
Commenting on the results, David Fletcher, chairman of Fletcher
King Plc said:
"We are pleased with the results for the year. In particular,
our second half turned out better than we expected largely due to a
higher volume of sales post Brexit than anticipated. All
departments performed well during the year and some significant
rating appeals were settled despite the Valuation Office continuing
to procrastinate on listing appeals. Valuations were steady and
asset management enjoyed a better than average year.
We have again started the year with a significant volume of
potential sales and are hopeful that at least one of our current
SHIPS schemes will be let and sold, most likely in the second
half.
Brexit uncertainty and the outcome of the General Election will
undoubtedly continue to influence the market and it is impossible
at this stage to estimate that impact. Uncertainty is never
positive and we expect transactions will prove more difficult to
complete. However, this may produce interesting buying
opportunities for SHIPS and other clients."
For further information, please call:
David Fletcher/ Peter Bailey, Fletcher King 020 7493 8400
James Caithie, Cairn Financial Advisers LLP 020 7213 0880
CHAIRMAN'S STATEMENT
Results
Revenue for the year was GBP4,094,000 (2016: GBP4,633,000).
Profit on disposal of property investment was GBPnil (2016:
GBP593,000). Profit before tax was GBP738,000 (2016:
GBP1,355,000).
The board is proposing a final dividend of 3.00p per share. The
final dividend is subject to shareholder approval at the AGM and
will be paid on 6 October 2017 to those shareholders on the
register at the close of business on 8 September 2017. With the
interim dividend of 1.00p per share (2016:1.00p) the dividend for
the year will amount to 4.00p per share (2016: 10.00p per
share).
The Commercial Property Market
The unexpected EU Referendum result in June 2016 has brought
significant uncertainty to the market. However, after initial
market turmoil, demand for commercial investment property remained
reasonably strong and we transacted a higher level of sales than
anticipated at very competitive prices, particularly for industrial
investments. Only in the case of Central London sales were prices
at marginally below Brexit levels. It was noticeable that although
there were fewer buyers in the market there was still competitive
bidding for the majority of our sales.
The letting market was by contrast more influenced by the
uncertainties and Central London office rents have generally fallen
by circa 5% to 10% and demand is definitely somewhat muted.
Business Overview
We are pleased with the results for the year. In particular, our
second half turned out better than we expected largely due to a
higher volume of sales post Brexit than anticipated. All
departments performed well during the year and some significant
rating appeals were settled despite the Valuation Office continuing
to procrastinate on listing appeals. Valuations were steady and
asset management enjoyed a better than average year.
Outlook
We have again started the year with a significant volume of
potential sales and are hopeful that at least one of our current
SHIPS properties will be let and sold, most likely in the second
half.
Brexit uncertainty and the outcome of the General Election will
undoubtedly continue to influence the market and it is impossible
at this stage to estimate that impact. Uncertainty is never
positive and we expect transactions will prove more difficult to
complete. However, this may produce interesting buying
opportunities for SHIPS and other clients.
It is very difficult to forecast what might happen in the coming
year but we have a strong balance sheet, very loyal clients and
hard working staff so we are well placed for the challenges
ahead.
DAVID FLETCHER
CHAIRMAN
13 July 2017
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 April 2017
Note 2017 2016
GBP000 GBP000
Revenue 4,094 4,633
Employee benefits expense (2,129) (2,640)
Depreciation expense (34) (34)
Other operating expenses (1,214) (1,230)
-------- --------
Operating profit 717 729
Profit on disposal of available
for sale investments - 593
Income from investments 12 22
Finance income 9 11
-------- --------
Profit before taxation 738 1,355
Taxation (159) (295)
-------- --------
Profit and total comprehensive
income for the year attributable
to equity shareholders 579 1,060
Basic and diluted earnings
per share 3 6.29p 11.51p
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 April 2017
2017 2016
GBP000 GBP000
Assets
Non-current assets
Property, plant and equipment 16 50
Available-for-sale investments 1,588 1,274
Deferred tax assets 16 18
------- -------
1,620 1,342
------- -------
Current assets
Trade and other receivables 1,495 871
Cash and cash equivalents 2,733 2,846
------- -------
4,228 3,717
------- -------
Total assets 5,848 5,059
------- -------
Liabilities
Current liabilities
Trade and other payables 568 346
Current taxation liabilities 97 282
Other payables 883 526
------- -------
1,548 1,154
------- -------
Total liabilities 1,548 1,154
------- -------
Shareholders' equity
Share capital 921 921
Share premium 140 140
Retained Earnings 3,239 2,844
------- -------
Total shareholders' equity 4,300 3,905
------- -------
Total equity and liabilities 5,848 5,059
------- -------
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 30 April 2017
2017 2016
GBP000 GBP000
Cash flows from operating
activities
Profit before taxation
from continuing operations 738 1,355
Adjustments for:
Depreciation expense 34 34
Profit on disposal of available
for sale investments - 593
Income from investments (12) (22)
Finance income (9) (11)
------- --------
Cash flows from operating
activities before
movement in working capital 751 763
Decrease in trade and other
receivables (624) 284
Decrease in trade and other
payables 579 (291)
------- --------
Cash generated from operations 706 756
Taxation paid (342) (91)
------- --------
Net cash flows from operating
activities 364 665
------- --------
Cash flows from investing
activities
Purchase of investments (314) (1,274)
Sale of investments - 1,468
Finance income 9 11
Income from investments 12 22
------- --------
Net cash flows from investing
activities (293) 227
------- --------
Cash flows from financing
activities
Dividends paid to shareholders (184) (898)
------- --------
Net cash flows from financing
activities (184) (898)
------- --------
Net decrease in cash and
cash equivalents (113) (6)
Cash and cash equivalents
at start of year 2,846 2,852
------- --------
Cash and cash equivalents
at end of year 2,733 2,846
------- --------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 April 2017
Note Share Share Retained TOTAL
capital premium Earnings EQUITY
GBP000 GBP000 GBP000 GBP000
Balance at 1 May 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
Total comprehensive
income for the year - - 579 579
Equity dividends paid 2 - - (184) (184)
Balance at 30 April
2017 921 140 3,239 4,300
---------- ---------- ----------- ---------
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 2017. 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
2016 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 2017 have not yet been
delivered to the Registrar of Companies, nor have the auditors yet
reported on them.
2. Dividends
Year ended 30 April 2017 2016
GBP000 GBP000
Equity dividends on ordinary
shares:
Declared and paid during year
Ordinary final dividend for the
year ended 30 April 2016: 1.00p
per share (2015: 0.75p) 92 69
Special dividend for the year
ended 30 April 2017: GBPnil (2016:
8.00p per share
Interim dividend for the year - 737
ended 30 April 2017: 1.00p per
share (2016: 1.00p) 92 92
------- -------
184 898
------- -------
Proposed ordinary final dividend
for the year ended
30 April 2017: 3.00p per share 276
-------
3. Earnings per share
2017 2016
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 579 1,060
Basic and diluted earnings per
share 6.29p 11.51p
This information is provided by RNS
The company news service from the London Stock Exchange
END
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