REG - Fiske PLC - Half-year Report
01/03/2022 07:00
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RNS Number : 1120D Fiske PLC 28 February 2022
28 February 2022
FISKE PLC
("Fiske" or the "Company" or the "Group")
Interim results
Fiske (AIM:FKE (AIM:FKE) ) is pleased to announce its interim results for the
six months ended 30 November 2021.
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 .
The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU) No.
596/2014. Upon the publication of this announcement, this inside information
is now considered to be in the public domain.
For further information, please contact:
Fiske PLC
James Harrison (CEO) Tel: +44 (0) 20 7448 4700
100 Wood Street
London
EC2V 7AN
Grant Thornton UK LLP (Nominated Adviser) Tel: +44 (0) 20 7383 5100
Samantha Harrison / Harrison Clarke / Samuel Littler
Trading
In the half year to November 2021 UK markets were broadly level, and market
activity was generally quieter.
However, our investment management fee income, which now represents 55% of our
revenues, rose noticeably over the period. Our investment performance and
new client wins over the six months to November 2021 resulted in our
investment management fee income being ahead, by some 17%, of the equivalent
period to November 2020.
In contrast, and as a result of less volatile market conditions, our
commission revenues were softer when compared to the previous six months to
May 2021. Although they were around the same level as for the comparable
period to November 2020. Overall, our revenues for the half year were £2.9m
which is 6% higher than for the equivalent prior year period to November 2020.
Our operating expenses increased during the period partly due to relocation
costs and partly due to restructuring costs incurred in anticipation of a
smaller office footprint. At the end of November, we moved to new modern
offices at 100 Wood Street after spending some 45 years at Salisbury House.
We expect to benefit from the reduction in overall property costs in the
second half of our financial year which will now run to 30 June 2022. This
follows our recent decision to change our accounting year end to 30 June.
Following an internal review of the results for the first half of the year,
the Directors of the Company determined that certain one-off adjustments
needed to be made to its accounts for the prior financial period. These are
related to the method of computation of accrued management fee revenue.
There has been no impact on the client money or asset positions of our
clients, and no impact on the Company's cash position. As a consequence,
group revenues for the year to May 2021 have been restated downwards by 4% and
balance sheets commensurately corrected. Comparative data in this report has
been restated and the adjustments elaborated in notes to the accounts and the
comments in this statement reflect these changes.
Overall, our operating results for the half year to 30 November 2021 show a
loss of £179,000 compared to the restated loss of £97,000 in the half year
to November 2020. Our pre-tax losses were £6,000 (November 2020:restated
loss of £103,000) for the period following receipt of the dividend of
£183,000 for our shareholding in Euroclear.
Our cash balances continue to rise, reaching £3.6m at the end of November.
Markets
The final three months of the calendar year 2021 produced the UK's fifth
consecutive positive quarterly equity market return despite increased
volatility created by the emergence of the Omicron variant of Covid-19.
Although more transmissible and infectious, it would seem it is less virulent,
and that vaccinations and boosters have produced the level of protection hoped
for.
With the market impact of the pandemic beginning to recede, inflation has now
become a major concern and increasingly central banks are accepting that the
current increase is not transitory and are responding by raising interest
rates and/or by withdrawing Covid induced financial support measures and
monetary stimulus. Higher commodity and energy prices, rising demand, supply
chain disruption and wage pressures are just some of the issues driving up the
cost of living
On the geo-political front, the invasion of Ukraine by Russian troops and the
imposition of sanctions on Russia by Western nations is also of concern. The
failure to find a diplomatic solution before Russian troops crossed the
Ukrainian border might also embolden China to make more aggressive moves on
Taiwan.
Since the turn of the year, market leadership has also shifted dramatically
away from highly valued US technology growth stocks and pandemic beneficiaries
towards higher yielding value situations found in the "old economy" sectors
that are so predominant in the UK equity market. The relatively low ratings
of many of the UK's major companies is also attracting the interest of
activist investors. As a result, the US and UK markets have become
disconnected with the latter moving ahead whilst the US market and the NASDAQ
market are falling.
Outlook
We expect to see continuing turbulence in markets. Many shares that comprise
the NASDAQ index have experienced a torrid time of late with some substantial
intraday falls leading to major value destruction. This trend may continue
for a while as speculative positions unwind, and share price ratings fall back
to more realistic levels.
Interest rates are almost certain to rise further over the next 12 months,
albeit from historically low levels. Against a backdrop of rising inflation
rates, investment in real assets particularly in shares trading at reasonable
valuations in companies with enough pricing power to underpin real earnings
growth is likely to find favour. Overall, we look forward to identifying
attractive investment opportunities for our clients that will no doubt be
forthcoming in the coming months.
From an operational standpoint we are settling into our new offices well and
look forward to the benefits that our reduced property costs and non-recurring
restructuring costs will provide for the further development of the business.
Clive Fiske
Harrison
James P Q Harrison
Chairman
Chief Executive Officer
28 February 2022
Condensed Consolidated Statement of Total Comprehensive Income
For the six months ended 30 November 2021
Six months ended Six months ended Year ended
30 November 2021 30 November 2020 31 May 2021
Note Unaudited Unaudited Audited
£'000 £'000 £'000
(restated) (restated)
Revenues 2 2,856 2,699 5,854
Operating expenses (3,035) (2,796) (5,716)
Operating (Loss)/Profit (179) (97) 138
Investment revenue 183 - 237
Finance income - - -
Finance costs (10) (6) (9)
(Loss)/Profit on ordinary activities before taxation (6) (103) 366
Taxation 0 1 (43)
(Loss)/Profit on ordinary activities after taxation (6) (102) 323
Other comprehensive (expense)/ income
Items that may subsequently be reclassified to profit or loss
Movement in unrealised appreciation of investments (35) 222 75
Deferred tax on movement in unrealised appreciation of investments (162)
(37) (12)
Net other comprehensive (expense)/income (197) 185 63
Total comprehensive (loss)/income for the period/year attributable to equity (203)
shareholders
83 386
Profit / (Loss) Earnings per ordinary share (pence) 3
Basic (0.1)p (0.9)p 2.8p
Diluted (0.1)p (0.9)p 2.8p
All results are from continuing operations and are attributable to equity
shareholders of the parent Company.
Condensed Consolidated Statement of Financial Position
30 November 2021
As at As at As at As at
30 November 2021 30 November 2020 31 May 2021 31 May 2020
Unaudited Unaudited Unaudited Unaudited
£'000 £'000 £'000 £'000
(restated) (restated) (restated)
Non-current assets
Intangible assets arising on consolidation 1,050 1,216 1,129 1,289
Other intangible assets 16 49 32 65
Right-of-use assets 304 14 - 101
Property, plant and equipment 30 37 24 53
Investments held at Fair Value Through Other Comprehensive Income 3,568 3,751 3,604 4,962
Total non-current assets 4,968 5,067 4,789 6,470
Current assets
Trade and other receivables 2,797 3,325 2,211 2,340
Cash and cash equivalents 3,620 2,992 3,498 2,239
Total current assets 6,417 6,317 5,709 4,579
Current liabilities
Trade and other payables 2,647 3,237 2,049 2,924
Short-term lease liabilities - 18 - 124
Current tax liabilities 43 - 43 -
Total current liabilities 2,690 3,255 2,092 3,048
Net current assets 3,727 3,062 3,617 1,531
Non-current liabilities
Long-term lease liabilities 308 - - -
Deferred tax liabilities 735 538 573 611
Total non-current liabilities 1,043 538 573 611
Net assets 7,652 7,591 7,833 7,390
Equity
Share capital 2,957 2,939 2,939 2,923
Share premium 2,085 2,082 2,082 2,057
Revaluation reserve 2,356 2,736 2,553 3,597
Retained earnings 254 (166) 259 (1,187)
Shareholders' equity 7,652 7,591 7,833 7,390
Condensed Consolidated Statement of Changes in Equity
Share Capital Share Premium Revaluation Reserve Retained Earnings Total Equity
£'000 £'000 £'000 £'000 £'000
Balance at 31 May 2021 2,939 2,082 2,553 562 8,136
Adjustments - - - (303) (303)
Balance at 31 May 2021 as restated 2,939 2,082 2,553 259 7,833
Profit / (Loss) on ordinary activities after taxation - - - (6) (6)
Movement in unrealised appreciation of investments - - (35) - (35)
Deferred tax on movement in unrealised appreciation of investments - - (162) - (162)
Total comprehensive income / (expense) for the period - - (197) (6) (203)
Share based payment transactions - - - 1 1
Issue of ordinary share capital 18 3 - - 21
Total transactions with owners, recognised directly in equity 18 3 - 1 22
Balance at 30 November 2021 2,957 2,085 2,356 254 7,652
Balance at 31 May 2020 2,923 2,057 3,597 (1,129) 7,448
Adjustments - - - (58) (58)
Balance at 31 May 2020 as restated 2,923 2,057 3,597 (1,187) 7,390
(Loss) on ordinary activities after taxation - - - (102) (102)
Movement in unrealised appreciation of investments - - 222 - 222
Deferred tax on movement in unrealised appreciation of investments - - (37) - (37)
Realised disposal of Fair value through other comprehensive income investments - - (1,046) 1,122 76
Total comprehensive income / (expense) for the period - - (861) 1,020 159
Share based payment transactions - - - 1 1
Issue of ordinary share capital 16 25 - - 41
Total transactions with owners, recognised directly in equity 16 25 - 1 42
Balance at 30 November 2020 as restated 2,939 2,082 2,736 (166) 7,591
Balance at 1 June 2020 2,923 2,057 3,597 (1,129) 7,448
Adjustments - - - (58) (58)
Balance at 1 June 2020 as restated 2,923 2,057 3,597 (1,187) 7,390
Profit / Loss on ordinary activities after taxation - - - 323 323
Movement in unrealised appreciation of investments - - 75 - 75
Deferred tax on movement in unrealised appreciation of investments - - (12) - (12)
Realised disposal of Fair Value through OCI - - (1,107) 1,122 15
Total comprehensive income / (expense) for the period - - (1,044) 1,445 401
Share based payment transactions - - - 1 1
Issue of ordinary share capital 16 25 - - 41
Total transactions with owners, recognised directly in equity 16 25 - 1 42
Balance at 31 May 2021 2,939 2,082 2,553 259 7,833
Condensed Consolidated Statement of Cash Flows
For the six months ended 30 November 2021
Six months ended Six months ended Year ended
30 November 2021 30 November 2020 31 May 2021
Unaudited Unaudited Unaudited
£'000 £'000 £'000
(restated) (restated)
Operating Profit / (loss) (179) (97) 138
Amortisation of intangible assets arising on consolidation 80 74 160
Amortisation of other intangible assets 16 16 33
Depreciation of Right-of-use assets 23 86 101
Depreciation of property, plant and equipment 15 16 33
Expenses settled by the issue of shares 1 1 2
Decrease/(increase) in receivables (305) (987) 125
Increase/(decrease) in payables 317 316 (873)
Cash generated from / (used in) operations (32) (575) (281)
Tax paid 0 - -
Net cash (used in)/generated from operating activities (32) (575) (281)
Investing activities
Investment income received 183 - 237
Interest received - - -
Proceeds on disposal of investments held at FVTOCI - 1,400 1,400
Purchases of property, plant and equipment (21) - (4)
Purchases of other intangible assets - - -
Net cash (used in)/ generated from investing activities 162 1,400 1,633
Financing activities
Interest paid (10) (6) (9)
Proceeds from issue of ordinary share capital 22 40 40
Repayment of lease liabilities (20) (106) (124)
Net cash used in financing activities (8) (72) (93)
Net (decrease) / increase in cash and cash equivalents 122 753 1,259
Cash and cash equivalents at beginning of period 3,498 2,239 2,239
Cash and cash equivalents at end of period/year 3,620 2,992 3,498
Notes to the Interim Financial Statements
1. Basis of preparation
The Condensed Consolidated Interim Financial Statements of Fiske plc and its
subsidiaries (the Group) for the six months ended 30 November 2021 have been
prepared in accordance with IAS 34 (Interim Financial Reporting), as adopted
in the United Kingdom. The accounting policies applied are consistent with
those set out in the May 2021 Fiske plc Annual Report and accounts. These
Condensed Consolidated Interim Financial Statements do not include all the
information required for full annual statements and should be read in
conjunction with the May 2021 Annual Report and Accounts.
The Financial Statements of the Group for the year ended 31 May 2021 were
prepared in accordance with International Financial Reporting Standards
adopted by in the United Kingdom. The statutory Consolidated Financial
Statements for Fiske plc in respect of the year ended 31 May 2021 have been
reported on by the Company's auditor and delivered to the registrar of
companies. The report of the auditor was (i) unqualified, (ii) did not include
a reference to any matters to which the auditor drew attention by way of
emphasis without qualifying their report, and (iii) did not contain a
statement under Section 498 (2) or (3) of the Companies Act 2006.
Under IAS 27 these financial statements are prepared on a consolidated basis
where the Group consists of Fiske plc, the parent, and those subsidiaries in
which it owns 100% of the voting rights, being Ionian Group Limited, Fiske
Nominees Limited, Fieldings Investment Management Limited and VOR Financial
Strategy Limited.
The directors have a reasonable expectation that the Group has adequate
resources to continue in operational existence for the foreseeable future.
Thus, they continue to adopt the going concern basis of accounting in
preparing this half-yearly financial report.
There were no new mandatory standards or amendments to existing standards
effective in the six-month reporting period to 30 November 2021.
2. Revenues
IFRS 8 requires operating segments to be identified on the basis of internal
reports about components of the Group that are regularly reviewed by
management to allocate resources to the segments and to assess their
performance. Following the acquisition of Fieldings Investment Management
Limited in August 2017, their staff and operations have been integrated into
the management team of Fiske plc. Pursuant to this, the Group continues to
identify a single reportable segment, being UK-based financial intermediation.
Within this single reportable segment, total revenue comprises:
Six months ended Six months ended Year ended
30 November 2021 30 November 2020 31 May 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
(restated) (restated)
Commission receivable 1,276 1,295 2,854
Investment management fees 1,578 1,353 2,920
2,854 2,648 5,774
Other income 2 51 80
2,856 2,699 5,854
3. Deferred tax
Deferred tax assets and liabilities are recognised at a rate which is
substantively enacted at the balance sheet date. The rate to be taken in this
case is 25%, (2020: 19%) being the anticipated rate of taxation applicable to
the Group and Company in the following year.
4. Earnings per share
Diluted
Basic Basic
£'000 £'000
Loss on ordinary activities after taxation (6) (6)
Adjustment to reflect impact of dilutive share options - -
Loss (6) (6)
Weighted average number of shares (000's) 11,785 11,785
Loss per share (pence) (0.1) (0.1)
5. Impact of restatements
(a) Consolidated Statement of Total Comprehensive income in the prior half
year to 30 November 2020
Notes As previously reported Adjustments As restated
(Unaudited) (Unaudited) (Unaudited)
£'000 £'000 £'000
Total Revenue i 2,775 (76) 2,699
Operating expenses (2,796) - (2,796)
Operating Profit/(loss) (21) (76) (97)
Investment revenue - - -
Finance income - - -
Finance costs (6) - (6)
(Loss) / Profit on ordinary activities before taxation (27) (76) (103)
Taxation (1) - (1)
(Loss)/Profit on ordinary activities after taxation (26) (76) (102)
Other comprehensive income/(expense)
Movement in unrealised appreciation of investments 222 - 222
Deferred tax on movement in unrealised appreciation of investments
(37) - (37)
Net other comprehensive (expense)/ income 185 - 185
Total comprehensive (loss) / income for the period/year attributable to equity
shareholders
159 (76) 83
(Loss) / Earnings per ordinary share (pence), excluding other comprehensive
income
Basic (0.2)p (0.7)p (0.9)p
Diluted (0.2)p (0.7)p (0.9)p
(b) Consolidated Statement of Total Comprehensive income in the prior year
to 31 May 2021
Notes As previously reported Adjustments As restated
(Audited) (Unaudited) (Unaudited)
£'000 £'000 £'000
Total Revenue i 6,098 (244) 5,854
Operating expenses (5,716) - (5,716)
Operating Profit/(loss) 382 (244) 138
Investment revenue 237 - 237
Finance income - - -
Finance costs (9) - (9)
(Loss) / Profit on ordinary activities before taxation 610 (244) 366
Taxation (43) - (43)
(Loss)/Profit on ordinary activities after taxation 567 (244) 323
Other comprehensive income/(expense)
Movement in unrealised appreciation of investments 75 - 75
Deferred tax on movement in unrealised appreciation of investments
(12) - (12)
Net other comprehensive (expense)/ income 63 - 63
Total comprehensive (loss) / income for the period/year attributable to equity
shareholders
630 (244) 386
(Loss) / Earnings per ordinary share (pence), excluding other comprehensive
income
Basic 4.8p (2.0)p 2.8p
Diluted 4.8p (2.0)p 2.8p
(c) Consolidated Statement of Financial Position as at 30 November 2020
Notes As previously reported Adjustments As restated
(Unaudited) (Unaudited) (Unaudited)
£'000 £'000 £'000
Non-current assets
Intangible assets arising on consolidation 1,216 - 1,216
Other intangible assets 49 - 49
Right-of-use assets 14 - 14
Property, plant and equipment 37 - 37
Investments held at Fair Value Through Other Comprehensive Income 3,751 - 3,751
Total non-current assets 5,067 - 5,067
Current assets
Trade and other receivables i 3,459 (134) 3,325
Cash and cash equivalents 2,992 - 2,992
Total current assets 6,451 (134) 6,317
Current liabilities
Trade and other payables 3,237 - 3,237
Short-term lease liabilities 18 - 18
Current tax liabilities - - -
Total current liabilities 3,255 - 3,255
Net current assets 3,196 (134) 3,062
Non-current liabilities
Deferred tax liabilities 538 - 538
Total non-current liabilities 538 - 538
Net assets 7,725 (134) 7,591
Equity
Share capital 2,939 - 2,939
Share premium 2,082 - 2,082
Revaluation reserve 2,736 - 2,736
Retained earnings (32) (134) (166)
Shareholders' equity 7,725 (134) 7,591
(d) Consolidated Statement of Financial Position as at 31 May 2021
Notes As previously reported Adjustments As restated
(Audited) (Unaudited) (Unaudited)
£'000 £'000 £'000
Non-current assets
Intangible assets arising on consolidation 1,129 - 1,129
Other intangible assets 32 - 32
Property, plant and equipment 24 - 24
Investments held at Fair Value Through Other Comprehensive Income 3,604 - 3,604
Total non-current assets 4,789 - 4,789
Current assets
Trade and other receivables i 2,514 (303) 2,211
Cash and cash equivalents 3,498 - 3,498
Total current assets 6,012 (303) 5,709
Current liabilities
Trade and other payables 2,049 - 2,049
Current tax liabilities 43 - 43
Total current liabilities 2,092 - 2,092
Net current assets 3,920 (303) 3,617
Non-current liabilities
Deferred tax liabilities 573 - 573
Total non-current liabilities 573 - 573
Net assets 8,136 (303) 7,833
Equity
Share capital 2,939 - 2,939
Share premium 2,082 - 2,082
Revaluation reserve 2,553 - 2,553
Retained earnings 562 (303) 259
Shareholders' equity 8,136 (303) 7,833
(e) Consolidated Statement of Financial Position as at 1 June 2020
Notes As previously reported Adjustments As restated
(Audited) (Unaudited) (Unaudited)
£'000 £'000 £'000
Non-current assets
Intangible assets arising on consolidation 1,289 - 1,289
Other intangible assets 65 - 65
Right-of-use assets 101 - 101
Property, plant and equipment 53 - 53
Investments held at Fair Value Through Other Comprehensive Income 4,962 - 4,962
Total non-current assets 6,470 - 6,470
Current assets
Trade and other receivables i 2,398 (58) 2,340
Cash and cash equivalents 2,239 - 2,239
Total current assets 4,637 (58) 4,579
Current liabilities
Trade and other payables 2,924 - 2,924
Short-term lease liabilities 124 - 124
Current tax liabilities - - -
Total current liabilities 3,048 - 3,048
Net current assets 1,589 (58) 1,531
Non-current liabilities
Deferred tax liabilities 611 - 611
Total non-current liabilities 611 - 611
Net assets 7,448 (58) 7,390
Equity
Share capital 2,923 - 2,923
Share premium 2,057 - 2,057
Revaluation reserve 3,597 - 3,597
Retained earnings (1,129) (58) (1,187)
Shareholders' equity 7,448 (58) 7,390
Notes:
i impact of adjustments to the management fee accrual to
reflect improved methodology of system data extraction
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