REG - Fiske PLC - Interim results
28/02/2025 07:00
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RNS Number : 7860Y Fiske PLC 28 February 2025
28 February 2025
FISKE PLC
("Fiske" or the "Company" or the "Group")
Interim results
Fiske (AIM:FKE (AIM%3AFKE) ) is pleased to announce its interim results for
the six months ended 31 December 2024.
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,
https://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 / Elliot Peters
Trading
We are pleased to report an increase in our revenues and operating profit for
the six-month period to 31 December 2024 when compared to the previous
half-year period to 31 December 2023. Revenues increased by 12% to £3.89m
(2023: £3.46m) whilst operating profit was up 52% to £294k (2023: £193k).
These results show a continuation in the first half of this financial year of
the improvements in revenues and profits that we delivered in the second half
of last year.
Our Assets under Management & Administration (AUMA) rose modestly to
£882m at 31 December 2024 from £878m at 30 June 2024.
Operating costs are some 10% higher in the six months to 31 December 2024 at
£3.59m (2023: £3.27m). Part of this increase is driven by ongoing
compliance advisory work relating to the Consumer Duty regulation and a
general upgrading of systems & controls used by our compliance team. We
are working with external consultants alongside additional internal resource
on this project to comply with the requirements of the regulator. As part of
this upgrade our overall governance and oversight of the business is being
refreshed. We expect the costs associated with this work to be expensed in
the second half of this financial year resulting in H2 operating costs running
higher than in H1.
The continued migration of clients to fee paying services, the introduction of
new clients and the positive market movements over the period have driven
investment management fees up by 11% to £1.98m in the first half of the year
from £1.79m in the six months to 31 December 2023.
Our company cash balance has risen to £5.9m as of 31 December 2024. This is
an increase of 20% from the level of £5.0m as of 30 June 2024. Interest on
our cash amounted to £120k in the six months to 31 December 2024 (2023:
£69k).
Profit after tax was £830k to 31 December 2024 which is significantly up on
£367k reported for the six months to 31 December 2023. This gives rise to
earnings per share for the six-month period of 7.0p (2023: 3.1p).
Euroclear
Our holding in Euroclear continues to represent a significant store of value
on our balance sheet and the company paid us dividend income amounting to
£497k in the six months to 31 December 2024 (2023: £259k). Of this, £331k
has been received and £143k is withholding tax that is subject to reclaim
from the Belgian tax authorities. In July 2024 we received £141k of
historic dividend withholding tax which had not been previously accounted for.
Recent results from Euroclear to 31 December 2024 showed further improvement
in the company's operating businesses. Purchases of shares by new
shareholders have taken place at higher levels than when last notified. We
have maintained the valuation of our Euroclear holding at the June 2024
level. The slight decline in the carrying value is due to the weakness in
the Euro/Sterling exchange rate. The company also guided shareholders that
it expects to increase its dividend, payable in Q2 2025, by some 5% which
would equate to an expected investment income receivable of approximately
£490k.
Markets
Donald Trump's re-election as President of the United States ended a long year
of elections around the world. The margin of victory for Trump confounded
pollsters and left the Republicans with control of both houses of Congress.
President Trump's unusual approach to politics make it difficult to know
exactly what to expect. A flurry of disruptive executive orders and policy
statements have been issued since his inauguration. These include imposing
tariffs on trading partners, tax cuts, deregulation and Elon Musk's
appointment to lead the new administration's Department of Government
Efficiency (DOGE). In addition, big spending projects in favour of a greener
economy are likely to be scrapped. On the geo-political front, the
President's stated intention to end Russia's war with Ukraine and his apparent
admiration of strong man Vladmir Putin has thrown into turmoil the USA's
ongoing support of European security and its military assistance for Ukraine.
On the domestic front, the long-awaited UK budget from Labour's Rachel Reeves
has been poorly received. In particular, the hike in Employer's National
Insurance and in the minimum wage has put considerably more cost on all
businesses, though especially the small and mid-sized companies that have
always been the backbone of growth in the economy. Companies with high
numbers of relatively low paid workers, such as those in retail and
hospitality, look likely to be most impacted by this approach. Even the
excitement of the promise to ease the planning process and target building
1.5m new homes during this parliament has soon waned. As it was realised
that the target was no greater than when targets were abandoned years ago as
they had not been met since the 1970s.
During the period under review, further interest rate cuts have been made in
most regions, but inflation has, in some cases, remained stickier than hoped.
Meanwhile stock markets have generally remained firm, though volatility has
increased. In the US, the seven mega-cap technology stocks which account for
35% of the S&P 500 led the market up but since the turn of the year upward
momentum has faded. Likewise, over the past two months, the more highly
rated US market has underperformed other global stock markets including those
of Europe and the UK where leading equity market indices have reached all-time
highs. Despite interest rates trending down yields in most bond markets have
edged up on inflationary concerns.
Dividend
Notwithstanding likely market volatility, the Directors believe that following
the measures taken in recent years to increase investment management fee
income and control costs, the company is now in a stronger financial
position. Its valuable holding in Euroclear continues to produce a
substantial investment income stream and with sustainable investment
management fee income and an encouraging pipeline of new business, the
Directors have resolved to increase the dividend by 10% with the declaration
of an interim dividend of 0.275p per share. The dividend will be payable on
4 April 2025 to shareholders on the register on 14 March 2025. The shares
will be marked ex-dividend on 13 March 2025.
Outlook
In the short term there are several macro-economic uncertainties and headwinds
to navigate but as investment managers we believe that our policy of
maintaining clients' exposure to quality equities on reasonable ratings has
and will continue to be the most effective strategy for achieving positive
real returns over the medium to long term.
We continue to benefit from a solid platform on which to grow the business and
provide good outcomes for our stakeholders.
Tony R Pattison
James P Q
Harrison
Chairman
Chief Executive Officer
28 February 2025
Condensed Consolidated Statement of Total Comprehensive Income
For the six months ended 31 December 2024
6 months ended 6 months ended Year to
31 December 2024 31 December 2023 30 June 2024
note Unaudited Unaudited Audited
£'000 £'000 £'000
Revenues 2 3,888 3,458 7,421
Operating expenses (3,594) (3,265) (6,864)
Operating profit / (loss) 294 193 557
Investment revenue 472 181 253
Finance income 120 69 157
Finance costs (7) (14) (25)
Profit on ordinary activities before taxation 879 429 942
Taxation charge (49) (62) (121)
Profit on ordinary activities after taxation 830 367 821
Other comprehensive income/(expense)
Items that may subsequently be reclassified to profit or loss
Movement in unrealised appreciation of investments (128) 723 1,007
Deferred tax on movement in unrealised appreciation of investments 3 32 (181)
(252)
Net other comprehensive income/(expense) (96) 542 755
Total comprehensive income/(loss) for the period/year attributable to equity 734 909 1,576
shareholders
Earnings per ordinary share (pence) 4
Basic 7.0p 3.1p 6.9p
Diluted 7.0p 3.1p 6.9p
All results are from continuing operations and are attributable to equity
shareholders of the parent Company.
Condensed Consolidated Statement of Financial Position
31 December 2024
As at As at As at
31 December 2024 31 December 2023 30 June 2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Non-current assets
Intangible assets arising on consolidation 503 783 583
Right-of-use assets 238 110 63
Property, plant and equipment 35 10 5
Investments held at Fair Value Through Other Comprehensive Income 5,292 5,136 5,419
Total non-current assets 6,068 6,039 6,070
Current assets
Trade and other receivables 2,417 3,027 2,942
Cash and cash equivalents 5,922 4,089 4,957
Total current assets 8,339 7,116 7,899
Current liabilities
Trade and other payables 2,495 2,789 2,889
Short-term lease liabilities 241 106 72
Current tax liabilities 49 - -
Total current liabilities 2,785 2,895 2,961
Net current assets 5,554 4,221 4,938
Non-current liabilities
Long-term lease liabilities - 17 -
Deferred tax liabilities 1,156 1,058 1,188
Total non-current liabilities 1,156 1,075 1,188
Net assets 10,466 9,185 9,820
Equity
Share capital 2,957 2,957 2,957
Share premium 2,085 2,085 2,085
Revaluation reserve 3,546 3,429 3,642
Retained earnings 1,878 714 1,136
Shareholders' equity 10,466 9,185 9,820
Condensed Consolidated Statement of Changes in Equity
For the six months ended 31 December 2024
Share Capital Share Premium Revaluation Reserve Retained Earnings Total Equity
£'000 £'000 £'000 £'000 £'000
Balance at 1 July 2024 2,957 2,085 3,642 1,136 9,820
Profit on ordinary activities after taxation - - - 830 830
Movement in unrealised appreciation of investments - - (128) - (128)
Deferred tax on movement in unrealised appreciation of investments - - 32 - 32
Total comprehensive income / (expense) for the period - - (96) 830 734
- - - 1 1
Share based payment transactions
Dividends paid - - - (89) (89)
Total transactions with owners, recognised directly in equity - - - (88) (88)
Balance at 31 December 2024 2,957 2,085 3,546 1,878 10,466
Balance at 1 July 2023 2,957 2,085 2,887 343 8,272
Profit on ordinary activities after taxation - - - 370 370
Movement in unrealised appreciation of investments - - 723 - 723
Deferred tax on movement in unrealised appreciation of investments - - (181) - (181)
Total comprehensive (expense) / income for the period - - 542 370 912
- - - 1 1
Share based payment transactions
Total transactions with owners, recognised directly in equity - - - 1 1
Balance at 31 December 2023 2,957 2,085 3,429 714 9,185
Balance at 1 July 2023 2,957 2,085 2,887 343 8,272
Profit on ordinary activities after taxation - - - 821 821
Movement in unrealised appreciation of investments - - 1,007 - 1,007
Deferred tax on movement in unrealised appreciation of investments - - (252) - (252)
Total comprehensive income / (expense) for the period - - 755 821 1,576
- - - 2 2
Share based payment transactions
Dividends paid - - - (30) (30)
Total transactions with owners, recognised directly in equity - - - (28) (28)
Balance at 30 June 2024 2,957 2,085 3,642 1,136 9,820
Condensed Consolidated Statement of Cash Flows
For the six months ended 31 December 2024
6 months ended 6 months ended Year ended
31 December 2024 31 December 2023 30 June 2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Operating profit / (loss) 294 193 557
Amortisation of intangible assets arising on consolidation 80 216 416
Depreciation of right-of-use assets 48 46 93
Depreciation of property, plant and equipment 8 6 11
Interest relating to ROU assets (1) (8) (13)
Expenses settled by the issue of shares 1 1 2
Decrease/(increase) in receivables 1,647 1,096 1,863
(Decrease)/increase in payables (1,518) (875) (1,460)
Cash generated from / (used in) operations 559 675 1,469
Investing activities
Investment income received 472 181 253
Interest income received 120 69 157
Purchase of available-for-sale investments - (113) (113)
Purchases of property, plant and equipment (38) (1) (1)
Purchase of other intangible assets - - -
Net cash generated from investing activities 554 136 296
Financing activities
Interest paid (6) (7) (12)
Repayment of lease liabilities (53) (48) (99)
Dividends Paid (89) - (30)
Net cash used in financing activities (148) (55) (141)
Net increase / (decrease) in cash and cash equivalents 965 756 1,624
Cash and cash equivalents at beginning of period 4,957 3,333 3,333
Cash and cash equivalents at end of period/year 5,922 4,089 4,957
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 31 December 2024 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 June 2024 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 June 2024 Annual Report and Accounts.
The Financial Statements of the Group for the Year ended 30 June 2024 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 30 June 2024 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 31 December 2024.
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:
6 months ended 6 months ended Year ended
31 December 2024 31 December 2023 30 June 2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Commission receivable 1,899 1,669 3,659
Investment management fees 1,987 1,790 3,762
3,886 3,459 7,421
Other income 2 (1) -
3,888 3,458 7,421
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%, (Year to 30 June 2024: 25%) 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
Profit on ordinary activities after taxation 830 830
Adjustment to reflect impact of dilutive share options - -
Profit 830 830
Weighted average number of shares (000's) 11,830 11,830
Profit per share (pence) 7.0p 7.0p
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