Final Results

RNS Number : 6254U

Fletcher King PLC

13 July 2018

 

FLETCHER KING PLC

Preliminary Results for the Year Ending 30^th April 2018

Highlights

·   Revenue for the year of  £3,080,000 (2017: £4,094,000)

·   Profit before tax of £274,000 (2017: £738,000)

·   Profit after tax of £209,000 (2017: £579,000)

·   Basic earnings per share of 2.27p (2017: 6.29p)

·   Final dividend of 0.75p per share. An interim dividend of 1.00p per share was paid and therefore the total ordinary dividend for the year will be 1.75p per share (2017: 4.00p)

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

"The results for the year were undoubtedly disappointing and did not live up to management's expectations, but we start the new year with some good sales instructions and good recurring revenue. Our balance sheet remains strong."

END

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 £3,080,000 (2017: £4,094,000). Profit before tax was £274,000 (2017: £738,000).

The board is proposing a final dividend of 0.75p per share. The final dividend is subject to shareholder approval at the AGM and will be paid on 5 October 2018 to those shareholders on the register at the close of business on 7 September 2018. With the interim dividend of 1.00p per share (2017:1.00p) the dividend for the year will amount to 1.75p per share (2017: 4.00p per share).

The Commercial Property Market

As stated in the Trading Update issued on 23 May, Brexit uncertainty continues to impact the Central London office letting market but the capital markets remain strong.

Both overseas and domestic buyers remain active, particularly for industrials and city centre offices, and prices are generally stable.

Online retail sales are growing and they are adversely affecting the high street. This is likely to remain the case for some time to come.

Business Overview

Performance was disappointing and did not meet management expectations.

The uncertainties, mentioned above, impacted our ability to let the two SHIPS buildings in the City and Clerkenwell although both buildings do have some of the space occupied. As a result, earnings from the sale of these buildings did not materialise as anticipated. However our volume of investment property sales held up well.

It was a disappointing year for agreeing rating appeals, with the Valuation Office delaying settlements and our valuation work was also down on the previous years.

Property management continues to provide a steady income flow.

Outlook

Brexit uncertainties will continue to impact the markets but we start the year with a good volume of investment sales. We would hope to let and sell the two SHIPS properties during the coming year but not perhaps in the first half. Our capital markets team have some significant sales instructions of both industrials and London office buildings which we anticipate will be completed this coming year. 

There is significant pressure on the Valuation Office to engage on Rating Appeals and we would hope to benefit from that. We have some substantial appeals in the pipeline which should come to fruition this coming year. During the year we have added new clients including advising on the Rating of The Scalpel, a recently completed 35 storey 380,000sq.ft. office tower in Lime Street EC3.

The banks continue to be active lenders to the commercial property market and that will benefit our valuation work. The new year has started well which is an encouraging sign.

Forecasting what might happen in the coming year remains as difficult as it was this time last year. However we manage the business conservatively and continue to have a strong balance sheet.

Our loyal client base and excellent and hardworking team give us confidence for the future.

DAVID FLETCHER

CHAIRMAN

13 July 2018

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the year ended 30 April 2018

	Note	2018	2017
		£000	£000
Revenue		3,080	4,094
Employee benefits expense		(1,609)	(2,129)
Depreciation expense		(18)	(34)
Other operating expenses		(1,181)	(1,214)
Operating profit		272	717
Income from investments		-	12
Finance income		2	9
Profit before taxation		274	738
Taxation		(65)	(159)
Profit and total comprehensive income for the year attributable to equity shareholders		209	579
Basic earnings per share Diluted earnings per share	3 3	2.27p 2.25p	6.29p 6.29p

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 April 2018

	2018	2017
	£000	£000
Assets
Non-current assets
Property, plant and equipment	12	16
Available-for-sale investments	1,588	1,588
Deferred tax assets	16	16
	1,616	1,620
Current assets
Trade and other receivables	917	1,495
Cash and cash equivalents	2,628	2,733
	3,545	4,228
Total assets	5,161	5,848
Liabilities
Current liabilities
Trade and other payables	485	568
Current taxation liabilities	43	97
Other payables	492	883
	1,020	1,548
Total liabilities	1,020	1,548
Shareholders' equity
Share capital	921	921
Share premium	140	140
Retained Earnings	3,080	3,239
Total shareholders' equity	4,141	4,300
Total equity and liabilities	5,161	5,848

 

CONSOLIDATED STATEMENT OF CASH FLOWS

for the year ended 30 April 2018

	2018	2017
	£000	£000
Cash flows from operating activities
Profit before taxation from continuing operations	274	738
Adjustments for:
Depreciation expense	18	34
Income from investments	-	(12)
Finance income	(2)	(9)
Cash flows from operating activities before movement in working capital
	290	751
Decrease/(increase) in trade and other receivables	578	(624)
(Decrease)/increase in trade and other payables	(474)	579
Cash generated from operations	394	706
Taxation paid	(119)	(342)
Net cash flows from operating activities	275	364
Cash flows from investing activities
Purchase of investments	-	(314)
Purchase of fixed assets	(14)	-
Finance income	2	9
Income from investments	-	12
Net cash flows from investing activities	(12)	(293)
Cash flows from financing activities
Dividends paid to shareholders	(368)	(184)
Net cash flows from financing activities	(368)	(184)
Net decrease in cash and cash equivalents	(105)	(113)
Cash and cash equivalents at start of year	2,733	2,846
Cash and cash equivalents at end of year	2,628	2,733

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 30 April 2018

	Note	Share capital	Share premium	Retained Earnings	TOTAL EQUITY
		£000	£000	£000	£000
Balance at 1 May 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
Total comprehensive income for the year		-	-	209	209
Equity dividends paid	2	-	-	(368)	(368)
Balance at 30 April 2018		921	140	3,080	4,141

 

 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 2018.  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 2017 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 2018 have not yet been delivered to the Registrar of Companies, nor have the auditors yet reported on them.

2.  Dividends

Year ended 30 April	2018	2017
	£000	£000
Equity dividends on ordinary shares:
Declared and paid during year
Ordinary final dividend for the year ended 30 April 2017: 3.00p per share (2016:  1.00p)	276	92
Interim dividend for the year ended 30 April 2018: 1.00p per share (2017: 1.00p)	92	92
	368	184
Proposed ordinary final dividend for the year ended 30 April 2018: 0.75p per share	69

3. Earnings per share

	2018 No	2017 No
Weighted average number of shares for basic earnings per share Share options	9,209,779 58,907	9,209,779 -
Weighted average number of shares for diluted earnings per share	9,268,686	9,209,779
	£000	£000
Earnings for basic and diluted earnings per share	209	579
Basic earnings per share	2.27p	6.29p
Diluted earnings per share	2.25p	6.29p

 

END

 

 

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