Half Yearly Report

RNS Number : 7808Z

Fletcher King PLC

16 December 2014

 



FLETCHER KING PLC

Interim Results for the 6 months ended 31 October 2014

Financial Highlights

                  Turnover   :           £1.828m                   (2013: £1.342m)

                  PBT           :           £293,000                  (2013: £147,000)

                  EPS           :           2.51p per share       (2013: 1.21p per share)

                  Dividend   :           1.50p per share       (2013: 0.75p per share)

Operational Highlights

·    The Market - The central London market remains strong with demand now rippling out from the centre.

·    Fund Management and Investment - Some significant investment broking transactions have enhanced the company's performance in the period.

·    Valuation and Rating - The volume of rates appeals settled has increased and bank valuation instructions have remained steady.

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

"We are pleased with the results.  Our prospects going forward look satisfactory although as I pointed out in my Chairman's statement last year those results would be a difficult act to follow but we will use all our efforts to do so".

ENQUIRIES:

Fletcher King Plc

David Fletcher

Tel: [phone]

Cairn Financial Advisers LLP (Nomad)

James Caithie

Tel: [phone]

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

CHAIRMAN'S STATEMENT

Results

Turnover for the period was £1.83m (2013: £1.34m) with a profit before tax of £293,000 (2013: £147,000).  Your Directors have declared an interim dividend of 1.50p per share (2013: 0.75p) to be paid on 20 February 2015 to Shareholders on the register at the close of business on 23 January 2015.

The Commercial Property Market

The central London market continues its high level of activity and remains very strong.  Tenant demand for space across all sectors is good with significant rental growth in some areas.  Demand from investors, both domestic and foreign, shows no sign of abating.  Yields are generally back at their pre crash levels or better.

Demand is now rippling out from the centre and the other major UK cities are seeing significant yield contractions as investors seek higher returns and this is likely to continue for the foreseeable future.

The political uncertainty surrounding next year's general election has had no effect on the market so far.  The same cannot be said for the market north of the border where the uncertainty continues to impact the capital markets although there are more encouraging signs in the letting market.

Business Overview

Our strong performance last financial year has continued into the first half.

All departments were very active.  At long last the Valuation Office Agency is processing rates appeals and we settled some long standing cases.  The volume of bank valuations remains steady.

During the period we added some more central London office buildings to our management portfolio.  We were also active in acquiring and disposing of assets for our fund management clients as well as completing some significant investment broking transactions.

Outlook

Our prospects going forward look satisfactory although as I pointed out in my Chairman's statement last year those results would be a difficult act to follow but we will use all our efforts to do so.

David Fletcher

Chairman

15 December 2014

Fletcher King Plc

Consolidated Interim Statement of Comprehensive Income

 for the 6 months ended 31 October 2014

	6 months ended		6 months ended		Year ended
	31 October		31 October		30 April
	2014 (Unaudited)		2013 (Unaudited)		2014 (Audited)
	£000		£000		£000
Revenue	1,828		1,342		3,653
Employee benefits expense	(968)		(736)		(2,017)
Depreciation expense	(19)		(17)		(44)
Other operating expenses	(559)		(490)		(1,083)
Operating profit	282		99		509
Profit on sale of available for sale investments	-		39		174
Income from investments	4		3		13
Finance income	7		6		15
Profit before taxation	293		147		711
Taxation	(62)		(36)		(169)
Profit for the period	231		111		542
Total comprehensive income for the period	231		111		542
Basic and diluted earnings per share (note 4)
Continuing operations	2.51p		1.21p		5.89p
Dividends per share
Interim dividend proposed	1.50p		0.75p		-
Dividends paid	2.25p		0.75p		1.50p

Fletcher King Plc

Consolidated Interim Statement of Financial Position

as at 31 October 2014

		31 October		31 October		30 April
		2014 (Unaudited)		2013 (Unaudited)		2014 (Audited)
		£000		£000		£000
Assets
Non-current assets
Property, plant and equipment		93		124		112
Available for sale investments		875		250		750
Deferred tax assets		18		63		18
		986		437		880
Current Assets
Trade and other receivables		1,394		925		1,247
Cash and cash equivalents		2,338		2,798		3,314
		3,732		3,723		4,561
Total assets		4,718		4,160		5,441
Liabilities
Current liabilities
Trade and other payables		410		448		702
Current taxation liabilities		185		96		123
Other creditors		370		249		887
Total liabilities		965		793		1,712
Shareholders' equity
Share capital		921		921		921
Share premium		140		140		140
Reserves		2,692		2,306		2,668
Total shareholders' equity		3,753		3,367		3,729
Total equity and liabilities		4,718		4,160		5,441

Fletcher King Plc

Consolidated Interim Statement of Changes in Equity

for the 6 months ended 31 October 2014

						Profit
		Share		Share		and			TOTAL
		capital		premium		loss			EQUITY
		£000		£000		£000			£000
Balance at 1 May 2014		921		140		2,668			3,729
Total comprehensive income for the period		-		-		231			231
Equity dividends paid		-		-		(207)			(207)
Balance at 31 October 2014 (Unaudited)		921		140		2,692			3,753
Balance at 1 May 2013		921		140		2,264			3,325
Total comprehensive income for the period		-		-		111			111
Equity dividends paid		-		-		(69)			(69)
Balance at 31 October 2013  (Unaudited)		921		140		2,306			3,367
Balance at 1 May 2013		921		140		2,264			3,325
Total comprehensive income for the period		-		-		542			542
Equity dividends paid		-		-		(138)			(138)
Balance at 30 April 2014 (Audited)		921		140		2,668			3,729

Fletcher King Plc

Consolidated Interim Statement of Cash Flows

for the 6 months ended 31 October 2014

		6 months ended		6 months ended		Year ended
		31 October		31 October		30 April
		2014 (Unaudited)		2013 (Unaudited)		2014 (Audited)
		£000		£000		£000
Cash flows from operating activities
Profit before taxation from continuing operations		293		147		711
Adjustments for:
Depreciation expense		19		17		44
Profit on sale of investments		-		(39)		(174)
Income from investments		(4)		(3)		(13)
Finance income		(7)		(6)		(15)
Cash flows from operating activities
before movement in working capital		301		116		553
Decrease/(increase) in trade and other receivables		(147)		537		215
(Decrease)/increase in trade and other payables		(809)		(662)		230
Cash (absorbed)/generated from operations		(655)		(9)		998
Taxation received/(paid)		-		7		(54)
Net cash flows from operating activities		(655)		(2)		944
Cash flows from investing activities
Purchase of fixed assets		-		-		(15)
Purchase of investments		(125)		-		(750)
Sale of investments		-		289		674
Finance income		7		6		15
Income from investments		4		3		13
Net cash flows from investing activities		(114)		298		(63)
Cash flows from financing activities
Dividends paid to shareholders		(207)		(69)		(138)
Net cash flows from financing activities		(207)		(69)		(138)
Net increase/(decrease) in cash and cash equivalents		(976)		227		743
Cash and cash equivalents at start of period		3,314		2,571		2,571
Cash and cash equivalents
at end of period		2,338		2,798		3,314

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 15 December 2014.

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 be adopted by the European Union and applicable as at 30 April 2015.

The accounting policies applied are consistent with those of the annual financial statements for the year ended 30 April 2014.

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.

3      Non Statutory Accounts

The financial information for the period ended 30 April 2014 set out in this interim report does not constitute the Group's statutory accounts for that period. The statutory accounts for the year ended 30 April 2014 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 2014 and 31 October 2013 is unaudited.

4      Earnings per share

	6 months to 31st  October 2014 Number	6 months to 31st October 2013 Number	Year ended 30th April 2014 Number
Weighted average number of shares for basic and diluted earnings per share.	9,209,779	9,209,779	9,209,779
	£'000	£'000	£'000
Earnings for basic and diluted earnings per share:
Continuing Operations	231	111	542

Basic and diluted earnings per share	2.51p	1.21p	5.89p

 

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