Result of AGM

RNS Number : 2332N

Fiske PLC

26 September 2012

 



26 September 2012

Fiske Plc ('Fiske' or 'the Company')

Result of AGM

Fiske Plc (the 'Company') announces that at the AGM held today all the resolutions were duly passed.

Speaking at the AGM, Clive Harrison, the Chairman and Chief Executive, said the following:

"Our results, as I have commented before, are influenced by stock market activity and levels and they in turn are affected by world financial and economic trends and above all crises. The advent of a banking crisis became obvious, at least to us at Fiske, on 19^th February 2007 with a profit warning from HSBC as a result of default and impairment levels at Household Finance its US sub prime finance company.  At that time the FTSE 100 stood at 6444.  Many events have taken place since then.  In the UK Northern Rock went bust in September 2007, the Dow Jones peaked in October 2007, Bear Stearns collapsed in March 2008 and finally Lehmans went bust in September 2008.  Not until that last event did the Wall Street equity market really collapse.  Later that autumn, as Gordon Brown told us, he saved the world financial system which the markets seemed not to notice on their way down to the nadir in March 2009.  Since then, with many hiccups, we have had a substantial market recovery which has not been matched by an economic recovery in Europe or the US, although until recently China had maintained its rapid growth.  Currently we have a stuttering economic recovery in the US and the possibility of a financial cliff in January 2013.  Europe is in recession and is in the grip of a financial crisis far worse than the sub prime disaster and as yet the European authorities have done nothing but buy time with copious meetings and announcements and failed to stop the rot.  More ominously China appears to be fast approaching a hard landing.

The general answer to these problems appears to be, in every economic zone, to print money after the example of the Weimar Republic.  Yet in spite of this scenario, with many countries with unemployment at levels in excess of the 1930's, markets have not taken fright.  This level of complacency is formidable although not unlike the summer of 2008 before AIG had to be rescued and Lehman wasn't.

It is perhaps understandable that with this background we have been less active investors than in former times.  We have maintained higher levels of liquidity for our clients than previously and have taken a defensive stance.  We don't despair of the equity market we are just cautious about the short term but as Lord Keynes said "When the facts change, I change my mind.  What do you do sir?".  Well we hope and believe that the facts will change for the better but not before they get worse in the meantime. 

In the first quarter of this year we have traded profitably but very modestly so.  We have considerably strengthened our institutional business with the addition of the Baden Hill team, but that is still in its early days.  We have maintained our strong cash backed balance sheet and we are well positioned for when economies do recover and when markets look attractive.

On the Board we are aware of the age problem we will have in due course.  I have recently taken on the role of Investment Director and as part of the process of apportioning responsibilities to James Harrison, who has recently become a major shareholder has been appointed Chief Operating Officer.  We also have agreed that Martin Perrin, in spite of his length of service on the Board, is totally appropriate to fulfil the role of Senior Independent Non Executive Director and has been appointed as such. We do review the strengths and weaknesses of our management structure and are happy with our present set up, but it is subject to continuous annual review.  I remain as Chief Executive".

Fiske also announces that copies of the Company's annual report for the year ended 31 May 2012 have been posted to shareholders.

The annual report is available on the Company's website: www.fiskeplc.com

For further information please contact:

Gerard Luchini, Fiske Plc - Compliance Officer

(tel: [phone])

Gerry Beaney/ David Hignell, Grant Thornton Corporate Finance (Nominated Adviser)

(tel: [phone])

 

END

 

 

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