Interim Results
Fiske PLC
16 February 2006
Chairman's Statement
The profit before tax for the half year ended 30 November 2005 amounted to
£339,000 after amortisation of goodwill totalling £75,000. This compares with a
pre tax figure for the same period last year of £114,000. The Board is declaring
a maintained interim dividend of 2p per share.
In a relatively buoyant market, especially in the resources sector where we have
placed great emphasis, our funds under management and our private client and
institutional businesses have shown considerable improvement. During the half
year we also acted as broker in the AIM flotation of Byotrol PLC and since the
half year ended have undertaken a placing of Jubilee Platinum.
We have invested in refurbishing and upgrading our offices notably to ensure
that all of our business generators work together in an improved office
environment. The cost of this improvement will be more than paid for by the
significantly reduced rental that has been negotiated for the next five years.
We continue actively to explore all opportunities to enhance shareholder value,
but have no intention to expand at any cost. We look for earnings enhancement,
growth of funds under management and the minimum dilution of our strong balance
sheet.
The second half of our financial year has started well and we view the future
for the full year with confidence.
M J Allen Chairman
16 February 2006
Independent Review Report to Fiske plc
Introduction
We have been instructed by the company to review the financial information for
the six months ended 30 November 2005 which comprises the consolidated profit
and loss account, the consolidated balance sheet, the consolidated cash flow
statement and related notes 1 to 5. We have read the other information contained
in the interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information.
This report is made solely to the company, in accordance with Bulletin 1999/4
issued by the Auditing Practices Board. Our work has been undertaken so that we
might state to the company those matters we are required to state to them in an
independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than
the company, for our review work, for this report, or for the conclusion we have
formed.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are also responsible for ensuring that the accounting policies and presentation
applied to the interim figures are consistent with those applied in preparing
the preceding annual accounts except where any changes, and the reasons for
them, are disclosed.
Review work performed
We conducted our review in accordance with the guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board for use in the United Kingdom. A
review consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and, based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with United Kingdom auditing standards and therefore
provides a lower level of assurance than an audit. Accordingly, we do not
express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 November 2005.
Deloitte & Touche LLP
Chartered Accountants London
16 February 2006
Consolidated Profit and Loss Account
for the six months ended 30 November 2005
Six months Six months Year ended
ended ended 31 May
30 November 30 2005
2005 November
2004 Audited
Unaudited Unaudited (restated)
(restated)
Note £'000 £'000 £'000
TURNOVER 2,007 1,723 3,924 )
Gross commission and similar
income
Commission payable (577 ) (529 ) (1,115 )
Other income 249 210 199
1,679 1,404 3,008
OPERATING COSTS (617 ) (640 ) (1,259 )
Staff costs
Depreciation (12 ) (25 ) (53 )
Amortisation of intangible 1 (91 ) (92 ) (184 )
fixed assets
Other operating charges (730 ) (686 ) (1,452 )
(1,450 ) (1,443 ) (2,948 )
OPERATING PROFIT/(LOSS) 229 (39 ) 60
Gain on disposal of fixed asset 7 - 246
investment
Other income from fixed asset 18 54 57
investments
Interest receivable and similar 90 101 203
income
Interest payable (5 ) (2 ) (8 )
PROFIT ON ORDINARY ACTIVITIES 339 114 558
BEFORE TAXATION
Taxation charge on profit on (108 ) (30 ) (175 )
ordinary activities
PROFIT ON ORDINARY ACTIVITIES 231 84 383
AFTER TAXATION
Dividends paid 3 (166 ) (165 ) (331 )
Retained profit for the period/ 65 (81 ) 52
year
Retained profit brought forward 992 940 940
Retained profit carried forward 1,057 859 992
Basic earnings per share 2 2.8p 1.0p 4.6p
Diluted earnings per share 2 2.8p 1.0p 4.6p
Headline earnings per share 2 3.5p 1.8p 4.1p
Headline diluted earnings per 2 3.5p 1.8p 4.1p
share
Consolidated Balance Sheet
30 November 2005
Note As at As at As at
30 November 30 31 May
2005 November 2005
Unaudited 2004 Audited
Unaudited (restated)
(restated)
£'000 £'000 £'000
FIXED ASSETS 1 531 714 622
Intangible assets
Tangible assets 150 60 41
Other investments 137 78 108
818 852 771
CURRENT ASSETS 6,927 13,504 16,643
Market and client debtors
Investments - 154 164
Other debtors 450 288 380
Cash at bank and in hand 4,058 4,441 3,575
11,435 18,387 20,762
CREDITORS: amounts falling due (7,190) (14,511) (16,574)
within one year
Market and client creditors
Other creditors (743) (607) (704)
(7,933) (15,118) (17,278)
NET CURRENT ASSETS 3,502 3,269 3,484
TOTAL ASSETS LESS CURRENT 4,320 4,121 4,255
LIABILITIES
CAPITAL AND RESERVES 2,078 2,077 2,078
Called up share capital
Share premium account 1,185 1,185 1,185
Profit and loss account 1,057 859 992
EQUITY SHAREHOLDERS' FUNDS 4,320 4,121 4,255
Consolidated Cash Flow Statement
for the six months ended 30 November 2005
RECONCILIATION OF OPERATING PROFIT/(LOSS) TO NET CASH INFLOW/(OUTFLOW) FROM
OPERATING ACTIVITIES
Six months ended Six months ended Year ended
30 November 2005 30 November 2004 31 May 2005
Unaudited Unaudited Audited
£'000 £'000 £'000
Operating profit/(loss) 229 (39) 60
Depreciation charges 12 25 53
Amortisation of intangible fixed assets 91 92 184
Decrease/(increase) in current asset investment 164 - (164)
Decrease/(increase) in debtors 9,647 (339) (3,406)
(Decrease)/increase in creditors (9,361) 715 2,789
Net cash inflow/(outflow) from operating 782 454 (484)
activities
CASH FLOW STATEMENT
Six months ended Six months ended Year ended
30 November 2005 30 November 2004 31 May 2005
Unaudited Unaudited Audited
£'000 £'000 £'000
Net cash inflow/(outflow) from operating 782 454 (484)
activities
Returns on investment and servicing of finance 103 135 235
Taxation - UK Corporation tax paid - - (162)
Capital expenditure and financial investment (142) (14) 192
Equity dividends paid (166) (140) (306)
Increase/(decrease) in cash 577 435 (525)
Increase/(decrease) in cash in the period 577 435 (525)
Change in net cash 577 435 (525)
Net funds brought forward 3,481 4,006 4,006
Net funds carried forward 4,058 4,441 3,481
Notes
for the six months ended 30 November 2005
1. INTANGIBLE FIXED ASSETS
Goodwill Goodwill Fiscal Total
Fund Other licence £'000
management acquisition £'000
acquisition £'000
£'000
Cost 1,146 300 99 1,545
At 1 June 2005
At 30 November 2005 1,146 300 99 1,545
Accumulated amortisation 621 225 77 923
At 1 June 2005 37 38 16 91
Charge for the period
At 30 November 2005 658 263 93 1,014
Net book value 488 37 6 531
At 30 November 2005
At 31 May 2005 525 75 22 622
2. EARNINGS PER ORDINARY SHARE
Headline earnings per share have been calculated in accordance with the
definition in the Institute of Investment Management Research ('IIMR') Statement
of Investment Practice No. 1, 'The definition of IIMR Headline Earnings', in
order to take out the exceptional gain arising on the disposal of certain fixed
asset investments and any effects of goodwill as follows:
Six months ended Six months ended Year ended
30 November 2005 30 November 2004 31 May 2005
Unaudited Unaudited Audited
Basic earnings per ordinary share 2.8p 1.0p 4.6p
Add: Goodwill write-off 0.8p 0.8p 1.5p
Less: Gain on disposal of fixed asset investment (0.1)p - (2.0)p
after taxation
Headline earnings per ordinary share 3.5p 1.8p 4.1p
Diluted earnings per ordinary share 2.8p 1.0p 4.6p
Add: Goodwill write-off 0.8p 0.8p 1.5p
Less: Gain on disposal of fixed asset investment (0.1)p - (2.0)p
after taxation
Headline diluted earnings per ordinary share 3.5p 1.8p 4.1 p
3. DIVIDEND
The interim dividend of 2p per share will be paid on 24 March 2006 to
shareholders on the register on 24 February 2006. The shares will be marked
ex-dividend on 22 February 2006.
4. CONTINGENT LIABILITY
As previously reported in the Annual Report and Accounts for the year ended 31
May 2005, the group has received a small number of claims. The theoretical
maximum exposure of the group to these claims is £450,000 (31 May 2005:
£600,000).
5. BASIS OF PREPARATION
The interim accounts which are unaudited have been prepared on the basis of the
accounting policies set out in the 2005 group accounts, except that the company
has adopted FRS21 - Events after the balance sheet date, and has restated the
comparitives accordingly. The financial information for the year ended 31 May
2005 has been extracted from the company's statutory accounts (as restated). The
original accounts have been delivered to the Registrar of Companies. The audit
report on the accounts for the year ended 31 May 2005 was unqualified. The
financial information contained in the Interim Report does not constitute the
company's statutory accounts within the meaning of section 240 of the Companies
Act 1985.
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