Interim Management Statement
Fletcher King PLC
27 February 2008
Fletcher King Plc Interim Management Statement
Fletcher King Plc is today publishing its Interim Management Statement relating
to the period 1st November 2007 to 31st January 2008.
In line with the rest of the UK commercial property sector, trading conditions
for Fletcher King have generally deteriorated as we forecast in our Interim
Results.
As is widely recognized, the commercial property investment market has continued
to decline, although there is recent evidence of more transactions taking place,
compared to the period immediately before Christmas, but volumes are still at a
low level. Where transactions are taking place they are taking significantly
longer to close and this is impacting on our business.
We are pleased to report however that the level of our valuation, rating and
property management business is currently unaffected by market conditions and
continues to grow.
Fletcher King Howard, our building services subsidiary, is not immune from
market conditions and is currently experiencing a general reticence by clients
to commit to capital expenditure projects. This division will suffer a small
loss for the year.
Taking all of this together, we currently anticipate that the profit out-turn at
the end of the year will be marginally lower than we were anticipating at the
half year.
We noted the omission of the IFRS requirement to publish a Related Parties Note
together with a Segmental Analysis Note in the Half Yearly Report (sent to
shareholders on 25th January 2008). These are set out below.
Related party transactions
The group is controlled by Fletcher King Plc, a company registered in England
and Wales. Transactions between the Company and its subsidiaries are in the
normal course of business and are priced using arm's length prices. Such
transactions are eliminated on consolidation and are disclosed in the Segmental
Analysis Note below.
Segmental analysis
Six months to 31 October 2007
General Construction
services services Unallocated Total
£000 £000 £000 £000
Revenue:
Sales to external customers 2,580 1,018 - 3,598
Revenue from inter-segmental transactions - 27 (27) -
Total revenue 2,580 1,045 (27) 3,598
Operating profit / (loss) 467 (2) (62) 403
Income from investments 13 - - 13
Finance income 29 1 24 54
Finance expense - - - -
Profit / (loss) before taxation 509 (1) (38) 470
Taxation (150) - (1) (151)
Profit / (loss) for the period after 359 (1) (39) 319
taxation
Construction Services comprises the business carried out by Fletcher King Howard
Limited. All other types of service are General Services. The unallocated
segment comprises the elimination of inter-segmental transactions, holding
company costs and other expenses and income and assets and liabilities not
directly attributable to the operating activities of the Group's business
segments.
General Construction
services services Unallocated Total
£000 £000 £000 £000
Segmental assets 3,378 1,020 - 4,398
Unallocated assets 725 725
- -
Total assets 3,378 1,020 725 5,123
Segmental liabilities 1,251 285 - 1,536
Unallocated liabilities - - 8 8
Total liabilities 1,251 285 8 1,544
Net segmental equity 2,127 735 717 3,579
Capital expenditure 302 - - 302
Depreciation 23 14 37
-
Segmental analysis
Six months to 31 October 2006
General Construction
services services Unallocated Total
£000 £000 £000 £000
Revenue:
Sales to external customers 2,469 980 - 3,449
Revenue from inter-segmental transactions - 26 (26) -
Total revenue 2,469 1,006 (26) 3,449
Operating profit / (loss) 340 22 (98) 264
Income from investments 7 - - 7
Finance income 12 1 24 37
Finance expense
- - - -
Profit / (loss) before taxation 359 23 (74) 308
Taxation (122) 7 10 (105)
Profit / (loss) for the period after 237 30 (64) 203
taxation
General Construction
services services Unallocated Total
£000 £000 £000 £000
Segmental assets 2,438 923 - 3,361
Unallocated assets - - 1,425 1,425
Total assets 2,438 923 1,425 4,786
Segmental liabilities 1,301 273 - 1,574
Unallocated liabilities - - 7 7
Total liabilities 1,301 273 7 1,581
Net segmental equity 1,137 650 1,418 3,205
Capital expenditure 23 9 - 32
Depreciation 24 14 - 38
This information is provided by RNS
The company news service from the London Stock Exchange