Interim Results

RNS Number : 1843N

Fiske PLC

12 February 2009

 



Fiske PLC

12 February 2009

Fiske Plc

('Fiske' or 'the Company')

Interim Results

Fiske Plc (the 'Company') announces its interim results for the six months ended 30 November 2008. In accordance with rule 26 of the AIM Rules for Companies this information is also available, under the Investors section, at the Company's website, http://www.fiskeplc.com .

For further information please contact:

  • Gerry Beaney/David Hignell Grant Thornton UK LLP (Nominated Adviser)

  (tel: [phone])

  • Gerard Luchini, Fiske Plc - Compliance Officer

  (tel: [phone])

Chairman's Statement

It is disappointing to report a small loss for the half year. This is after we have taken through the profit and loss an impairment of £121,000 to our goodwill figure of £375,000, reducing it to £254,000. This is a non cash item and merely reflects a reduction in the basis of valuation of certain discretionary funds under management and a modest reduction in the amount of those funds within the acquisition that gave rise to that goodwill. In parallel substantial other funds have come under management in Fiske and we continue to grow this aspect of our business. There was a £143,000 loss for statutory purposes but excluding the write down of goodwill and the dealing loss on investments held for trading, the underlying operating result was a profit of over £100,000.

Conditions in the Stock Market over the period could be described as challenging but the truth is that we are in the middle of a banking crisis and a severe bear market and the economy is entering a serious recession. These conditions are the worst I have known in some 47 years of stockbroking. Whilst I expect things to get worse before they get better, I am hopeful that the worst of the bear market will be over by our year end in May, but markets anticipate economic events and I don't expect the economy to improve until at least 2010.

However Fiske operates with a low cost structure and a very strong balance sheet. There is no debt, which has been the situation since its founding 35 years ago, and there is cash and investments of over £4 million. Over the past six months we have strengthened our institutional equity business, added to our private client advisory business whilst at the same time reducing our annual running costs. As a result we view the future with modest confidence and will maintain a first interim dividend of 2.5p per share. 

As mentioned in our last full year's report, Michael Allen our Chairman retired on the 1 November 2008. I would like to thank him for his contribution over six years to the company. He remains a valued client of the firm. 

C F Harrison Chairman

12 February 2009

Independent Review Report to Fiske plc

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 November 2008 which comprises the consolidated income statement, the consolidated statement of recognised income and expense, the consolidated balance sheet, the consolidated cash flow statement and related notes 1 to 4. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with International Standard on Review Engagements (UK and Ireland) 2410 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 conclusions we have formed.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the AIM Rules of the London Stock Exchange.

As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards ('IFRSs'), as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report have been prepared in accordance with the accounting policies the Group intends to use in preparing its next annual financial statements.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of Review 

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 November 2008 is not prepared, in all material respects, in accordance with the AIM Rules of the London Stock Exchange.

Deloitte LLP

Chartered Accountants and Statutory Auditors

London, UK

12 February 2009

  Condensed Consolidated Income Statement

for the six months ended 30 November 2008

		Six months ended 30 November 2008 Unaudited	Six months ended 30 November 2007 Unaudited	Year ended 31 May 2008         Audited
	Notes	£'000	£'000	£'000
Fee and commission income		1,621	2,070	3,769
Fee and commission expenses		(371)	(505)	(913)
Net fee and commission income		1,250	1,565	2,856
Other income		96	141	200
TOTAL REVENUE		1,346	1,706	3,056
Profit on disposal of available-for-sale investments		-	7	7
Loss on investments held for trading		(141)	-	(88)
Operating expenses		(1,300)	(1,423)	(2,706)
Write-down of goodwill		(121)	-	-
Amortisation of intangibles		(45)	(42)	(96)
OPERATING (LOSS)/PROFIT		(261)	248	173
Investment revenue		39	29	36
Finance income		85	125	228
Finance costs		(2)	(2)	(4)
(LOSS)/PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION		(139)	400	433
Taxation		(4)	(114)	(116)
(LOSS)/PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION		(143)	286	317
(LOSS)/PROFIT ATTRIBUTABLE TO EQUITY SHAREHOLDERS		(143)	286	317
(Loss)/earnings per ordinary share (pence)
Basic	3	(1.7)p	3.4p	3.8p
Diluted	3	(1.7)p	3.4p	3.8p

Condensed Consolidated Statement of Recognised Income and Expense

for the six months ended 30 November 2008

	Six months ended 30 November 2008 Unaudited	Six months ended 30 November 2007 Unaudited	Year ended 31 May 2008 Audited
	£'000	£'000	£'000
(Loss)/gain on revaluation of available-for-sale investments taken to equity	(16)	6	762
Deferred tax on revaluation of available-for-sale investments	(3)	-	(198)
INCOME RECOGNISED DIRECTLY IN EQUITY TRANSFERS	(19)	6	564
Transferred to profit or loss on sale of available-for-sale investments	-	(4)	-
(LOSS)/PROFIT FOR THE PERIOD	(143)	286	317
TOTAL RECOGNISED INCOME AND EXPENSE FOR THE PERIOD	(162)	288	881
Attributable to equity shareholders	(162)	288	881

Condensed Consolidated Balance Sheet

30 November 2008

		As at 30 November 2008 Unaudited	As at 30 November 2007 Unaudited	As at 31 May 2008 Audited
		£'000	£'000	£'000
ASSETS
NON-CURRENT ASSETS
Goodwill		254	375	375
Other intangible assets		-	99	45
Property, plant and equipment		91	131	106
Available-for-sale investments		1,421	645	1,437
TOTAL NON-CURRENT ASSETS		1,766	1,250	1,963
CURRENT ASSETS
Trade and other receivables		13,946	10,132	8,584
Investments held for trading		114	517	353
Cash and cash equivalents		3,254	3,867	3,786
TOTAL CURRENT ASSETS		17,314	14,516	12,723
TOTAL ASSETS		19,080	15,766	14,686
LIABILITIES
CURRENT LIABILITIES
Trade and other payables		13,809	10,378	9,009
Current tax liabilities		117	403	113
TOTAL CURRENT LIABILITIES		13,926	10,781	9,122
NON-CURRENT LIABILITIES
Deferred tax liabilities		314	117	312
TOTAL NON-CURRENT LIABILITIES		314	117	312
TOTAL LIABILITIES		14,240	10,898	9,434
EQUITY
Share capital		2,087	2,087	2,087
Share premium		1,187	1,187	1,187
Revaluation reserve		831	288	850
Retained earnings		735	1,306	1,128
SHAREHOLDERS' EQUITY		4,840	4,868	5,252
TOTAL EQUITY AND LIABILITIES		19,080	15,766	14,686

  Condensed Consolidated Cash Flow Statement

for the six months ended 30 November 2008

	Six months ended 30 November 2008 Unaudited	Six months ended 30 November 2007 Unaudited	Year ended 31 May 2008 Audited
	£'000	£'000	£'000
CASH FLOWS USED IN OPERATING ACTIVITIES
Cash used in operations	(394)	(356)	(5)
Interest paid	(2)	(2)	(4)
Tax paid	-	-	(295)
NET CASH  USED IN OPERATING ACTIVITIES	(396)	(358)	(304)
INVESTING ACTIVITIES
Interest received	85	125	228
Dividends received	39	29	37
Proceeds on disposal of available-for-sale investments	-	65	65
Purchases of available-for-sale investments	-	(160)	(192)
Purchases of property, plant and equipment	(10)	(6)	(11)
NET CASH GENERATED FROM INVESTING ACTIVITIES	114	53	127
FINANCING ACTIVITIES
Share capital issued	-	11	11
Dividends paid	(250)	(250)	(459)
NET CASH USED UN FINANCING ACTIVITIES	(250)	(239)	(448)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(532)	(544)	(625)
Cash and cash equivalents at beginning of period	3,786	4,411	4,411
Cash and cash equivalents at end of period	3,254	3,867	3,786

Notes to the Interim Financial Statements

1.     Accounting policies

a)        Basis of preparation

The condensed set of financial statements has been prepared using accounting policies consistent with International Financial Reporting Standards (IFRSs). The same accounting policies, presentation and methods of computation are followed in the condensed set of financial statements as applied in the Group’s latest annual audited financial statements and those the Group intends to use in preparing its next annual financial statements. While the financial figures included in this half-yearly report have been computed in accordance with IFRSs applicable to the interim periods, this half-yearly report does not contain sufficient information to constitute an interim report as that term is defined in IAS 34.

 

The interim information, together with comparative information contained in this report for the year ended 31 May 2008 does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditors’ report on those accounts was not qualified, did not include reference to any matters to which the auditors drew attention by way of emphasis without qualifying the report, and did not contain statements under section 237(2) or (3) of the Companies Act 1985.

The interim condensed financial statements will be circulated to all shareholders and will be available from the Company’s registered office at Salisbury House, London Wall, London, EC2M 5QS and also, in accordance with Rule 20 of the AIM Rules, on the Company’s website at www.fiskeplc.com.

b)        Basis of consolidation

The interim financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries) made up to 30 November each year. Control is achieved where the Company has the power to govern the financial and operating policies of an investee entity so as to obtain returns from its activities. All intra-group transactions, balances, income and expenses are eliminated on consolidation.

c)         Revenue recognition

The Group follows the principles of IAS 18, ‘Revenue Recognition’, in determining appropriate revenue recognition policies. Therefore, revenue is recognised to the extent that it is probable that the economic benefits associated with the transaction will flow into the Group.

Corporate Finance: Revenue comprises the value of services supplied by the Group, exclusive of value added tax and are recognised when the relevant transaction is completed. Retainer fees are recognised over the period of the agreement.

Stockbroking: Turnover comprises commission and other fees and is recognised when receivable in accordance with the date of the underlying transaction.

Other income includes dividend income on available-for-sale investments, recognised when an unconditional right to receive the income has been established.

d)        Goodwill

Goodwill arising on consolidation represents the excess of the cost of acquisition over the Group’s interest in the fair value of the identifiable assets and liabilities of a subsidiary, associate or jointly controlled entity at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less any impairment. Goodwill which is recognised as an asset is reviewed for impairment at least annually. Any impairment is recognised immediately and is not subsequently reversed.

 

e)         Property, plant and equipment

All property, plant and equipment is shown at cost less subsequent depreciation and impairment. Cost includes expenditure that is directly attributable to the acquisition of items. Depreciation is charged so as to write off the cost or valuation of assets over their useful economic lives, using the straight-line method, which are considered to be as follows:

Office furniture and fittings       – 4 years

Computer equipment              – 3 years

Office refurbishment                – 5 years

The assets’ residual values and useful lives are reviewed, and if appropriate asset values are written down to their estimated recoverable amounts, at each balance sheet date. Gains and losses on disposals are determined by comparing proceeds with the carrying amounts, and are included in the income statement.

f)         Available-for-sale investments

Available-for-sale investments are measured at fair value. Gains or losses arising from changes in fair value are recognised directly in the balance sheet (revaluation reserve), until the security is disposed of or is determined to be impaired, at which time the cumulative gain or loss previously recognised in the balance sheet is included in the net profit or loss for the period. Impairment losses recognised in profit or loss are not subsequently reversed through profit or loss.

The fair values of available-for-sale investments quoted in active markets are determined by reference to the current quoted bid price.

g)        Trade and other receivables

Trade and other receivables are measured at fair value. Appropriate allowances for estimated irrecoverable amounts are recognised in profit or loss when there is objective evidence that the asset is impaired.

h)        Investments held for trading

Investments held for trading, which from time to time may include derivatives, including traded options and warrants traded on an exchange, are measured at market value.

i)         Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits.

j)         Client money

The Group holds money on behalf of clients in accordance with the Clients’ Money Rules of the Financial Services Authority. Such monies and the corresponding liabilities to the clients are excluded from the balance sheet.

k)        Trade and other payables

Trade and other payables are recognised initially at fair value, which is the agreed market price at the time goods or services are provided. The Group accrues for all goods and services consumed but as yet unbilled at amounts representing management’s best estimate of fair value.

 

l)         Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

m)       Share-based payments

Where equity settled share options are awarded to employees, the fair value of the options at the date of grant is charged to the income statement over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. As long as all other vesting conditions are satisfied, a charge is made irrespective of whether the market vesting conditions are satisfied. The cumulative expense is not adjusted for failure to achieve a market vesting condition.

Where equity instruments are granted to persons other than employees, the income statement is charged with the fair value of the goods and services received.

n)        Foreign currencies

The individual financial statements of each group company are presented in the currency of the primary economic environment in which it operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position of each group company are expressed in pounds sterling, which is the functional currency of the Company, and the presentation currency for the consolidated financial statements.

In preparing the financial statements of the individual companies, transactions in currencies other than the entity’s functional currency (foreign currencies) are recorded at the rates of exchange prevailing on the dates of the transactions. At each balance sheet date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet date. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical costs in a foreign currency are not retranslated.

Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are included in profit or loss for the period. Exchange differences arising on the retranslation of non-monetary items carried at fair value are included in profit or loss for the period except for differences arising on the retranslation of non-monetary items in respect of which gains and losses are recognised directly in equity. For such non-monetary items, any exchange component of that gain or loss is also recognised directly in equity.

o)        Leases

Operating lease rentals are charged to the profit and loss account on a straight line basis over the term of the lease.

2.     TAXATION

The tax charge for the six months to 30 November 2008 reflects all the necessary provisions for current tax, taking into account the availability of losses brought forward, and movements in deferred tax. In arriving at the effective tax rate account has been taken of the change in the rate of tax charged, and the disallowance of the cost of share-based payments charged to the income statement.

 

3.      EARNINGS PER SHARE

The calculation of the basic earnings per ordinary share is based on (loss)/profit on ordinary activities after tax and on the weighted average number of ordinary shares in issue during the period.

The calculation of diluted earnings per ordinary share is based on the basic earnings per ordinary share adjusted to allow for the issue of shares on the assumed conversion of all dilutive options.

	Six months ended 30 November 2008			Six months ended 30 November 2007
	Earnings £’000	Weighted average number of shares	Earnings per share (pence)	Earnings £’000	Weighted average number of shares	Earnings per share (pence)
Basic(loss)/earnings per ordinary share	(143)	8,340,245	(1.7)	286	8,322,003	3.4
Dilutive effect of potential ordinary shares: options	-	38,068		2	69,247
Dilutive (loss)/earnings per ordinary share	(143)	8,378,313	(1.7)	288	8,391,250	3.4

4.      DIVIDENDS PAID

Dividends paid of £250,000 (2007 - £250,000) refer to the second interim dividend paid for the preceding year.

The Interim dividend of 2.5p will be paid on 20 March 2009 to shareholders on the register on 20 February 2009. The shares will be marked ex-dividend on 18 February 2009.

 

 

END

 

 

IR ILFERFLILLIA