Final Results

RNS Number : 4685H

Fletcher King PLC

12 July 2012

 



FLETCHER KING PLC

Preliminary Results for the Year Ending 30^th April 2012

Highlights

·   Revenue for the year of  £3.105m (2011: £3.175m)

·   Profit before tax £395,000 (2011: £414,000)

·   Profit for the year of £280,000 (2011: £331,000)

·   Basic and diluted earnings per share of 3.04p (2011: 3.59p)

·      Final dividend of 0.75p per share. An interim dividend of 0.75p per share was paid and therefore the total ordinary dividend for the year will be 1.50p per share (2011: 1.50p)

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

"We consider the results for the year to be satisfactory given the current economic circumstances. We see little change in the coming year which will continue to be challenging. We will keep a steady eye on overhead costs and it will take all our ingenuity and resource to maintain turnover.

We are working hard to expand the recurring income part of our business, namely fund and asset management whilst pushing hard on investment broking.

I must once again thank our hard working Directors and staff and our loyal clients without whom these results would not be possible."

END

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 £3.11m (2011: £3.18m) with profit before tax of £395,000 (2011: £414,000).

The board is proposing a final dividend of 0.75p per share (2011: 0.75p). The final dividend is subject to shareholders approval at the AGM and will be paid on the 27 September 2012 to those shareholders on the register at close of business on 31 August 2012. With the interim dividend of 0.75p per share (2011: 0.75p) already paid, the total ordinary dividend for the year will amount to 1.5p per share (2011: 1.5p).

The board consider the results for the year to be satisfactory bearing in mind the difficult economic and market conditions under which the company has been operating.

Harry Richardson, a non executive director, retired at the year end and I would like to thank him on behalf of the Board and shareholders for his almost twenty years of loyal service and wise counsel.  He has helped guide the company through both the good times and some of the most economically challenging times in recent history.

Commercial Property Market

Little has changed since my report at the same time last year.  Lack of growth in the economy continues to weigh heavily on the property market and the Government cutbacks are making life particularly difficult outside London and the South-East.

From a property perspective the market continues to be divided with strong demand from both tenants and investors for Central London boosted by a continuing inward flow of foreign investors. Contrasting with this is the continued stagnation of most regional markets with investors concerned over falling rental values, low occupational demand and the risk of voids.  Coupled with this is the ongoing lack of debt finance preventing the traditional property company market from recovering.  We do not see this state of affairs changing in the short to medium term.

Business Overview

The position is very similar to that reported in my Interim statement in December.  Our transaction business continues at a reasonable pace although it slowed in the second half due to a lack of stock for sale.

Rating instructions continue apace although the Valuation Office is taking longer to settle outstanding appeals and require more detailed submissions as part of the negotiations.   Bank valuations continue at a low ebb and there is still no sign of any measurable increase in bank lending to the commercial property sector.

Fund and asset management remain strong and despite the economic downturn we are experiencing a remarkably low level of tenant failures and continue to collect well in excess of 95% of rents due within three days of the quarter day.

Outlook

We see little change in the coming year which will continue to be challenging. We will keep a steady eye on overhead costs and it will take all our ingenuity and resource to maintain turnover.

We are working hard to expand the recurring income part of our business, namely fund and asset management whilst pushing hard on investment broking.

I must once again thank our hard working Directors and staff and our loyal clients without whom these results would not be possible.

David Fletcher

Chairman

12 July 2012

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the year ended 30 April 2012

	Note	2012	2011
		£000	£000
Revenue		3,105	3,175
Employee benefits expense		(1,673)	(1,595)
Depreciation expense		(46)	(59)
Other operating expenses		(1,012)	(1,130)
Operating profit		374	391
Income from investments		11	13
Finance income		10	10
Profit before taxation		395	414
Taxation		(115)	(83)
Profit for the year		280	331
Other comprehensive income for the year, net of tax		-	-
Total comprehensive income for the year attributable to equity shareholders		280	331
Basic and diluted earnings per share	3	3.04p	3.59p

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 April 2012

	2012	2011
	£000	£000
Assets
Non-current assets
Property, plant and equipment	180	226
Available-for-sale investments	500	250
Deferred tax assets	63	73
	743	549
Current assets
Trade and other receivables	892	1,063
Cash and cash equivalents	2,812	2,722
	3,704	3,785
Total assets	4,447	4,335
Liabilities
Current liabilities
Trade and other payables	576	534
Current taxation liabilities	59	121
Other creditors	576	586
	1,211	1,241
Total liabilities	1,211	1,241
Shareholders' equity
Share capital	921	921
Share premium	140	140
Profit and Loss reserve	2,175	2,033
Total shareholders' equity	3,236	3,094
Total equity and liabilities	4,447	4,335

CONSOLIDATED STATEMENT OF CASH FLOWS

for the year ended 30 April 2012

	2012	2011
	£000	£000
Cash flows from operating activities
Profit before taxation from continuing operations	395	414
Adjustments for:
Depreciation expense	46	59
Income from investments	(11)	(13)
Finance income	(10)	(10)
Cash flows from operating activities before movement in working capital	420	450
(Increase)/decrease in trade and other receivables	172	(59)
Increase in trade and other payables	32	489
Cash generated from operations	624	880
Taxation paid	(167)	(79)
Net cash flows from operating activities	457	801
Cash flows from investing activities
Purchase of investments	(250)	-
Finance income	10	10
Income from investments	11	13
Net cash flows from investing activities	(229)	23
Cash flows from financing activities
Dividends paid to shareholders	(138)	(69)
Net cash flows from financing activities	(138)	(69)
Net increase in cash and cash equivalents	90	755
Cash and cash equivalents at start of year	2,722	1,967
Cash and cash equivalents at end of year	2,812	2,722

STATEMENTS OF CHANGES IN EQUITY

For the year ended 30 April 2012

CONSOLIDATED	Note	Share capital	Share premium	Profit and loss reserve	TOTAL EQUITY
		£000	£000	£000	£000
Balance at 1 May 2010		921	140	1,771	2,832
Total comprehensive income for the year		-	-	331	331
Equity dividends paid	2	-	-	(69)	(69)
Balance at 30 April 2011		921	140	2,033	3,094
Total comprehensive income for the year		-	-	280	280
Equity dividends paid	2	-	-	(138)	(138)
Balance at 30 April 2012		921	140	2,175	3,236

 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 financial statements for the year ended 30 April 2012.  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), this announcement does not itself contain sufficient information to comply with IFRSs. Statutory financial statements for the previous financial year ended 30 April 2011 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 auditors have not yet reported on financial statements for the year ended 30 April 2012.

2.  Dividends

Year ended 30 April	2012	2011
	£000	£000
Equity dividends on ordinary shares:
Declared and paid during year
Ordinary final dividend for the year ended 30 April 2011: nil per share (2010: nil)	69	-
Interim dividend for the year ended 30th April 2012: 0.75p  per share (2011: 0.75p)	69	69
	138	69
Proposed ordinary final dividend for the year ended 30 April 2012: 0.75p per share	69

3. Earnings per share

	2012 No	2011 No
Weighted average number of shares for basic and diluted earnings per share	9,209,779	9,209,779
	£000	£000
Earnings for basic and diluted earnings per share	280	331
Basic and diluted earnings per share	3.04p	3.59p

 

END

 

 

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