Final Results

Fletcher King

13/07/2017 07:00

RNS Number : 9211K

Fletcher King PLC

13 July 2017

FLETCHER KING PLC

Preliminary Results for the Year Ending 30th April 2017

Highlights

 Revenue for the year of 4,094,000 (2016: 4,633,000)

 Profit before tax of 738,000 (2016: 1,355,000)

 Profit after tax of 579,000 (2016: 1,060,000)

 Basic and diluted earnings per share of 6.29p (2016: 11.51p)

 Final dividend of 3.00p per share. An interim dividend of 1.00p per share was paid and therefore the total ordinary dividend for the year will be 4.00p per share (2016: 10.00p)

Commenting on the results, David Fletcher, chairman of Fletcher King Plc said:

"We are pleased with the results for the year. In particular, our second half turned out better than we expected largely due to a higher volume of sales post Brexit than anticipated. All departments performed well during the year and some significant rating appeals were settled despite the Valuation Office continuing to procrastinate on listing appeals. Valuations were steady and asset management enjoyed a better than average year.

We have again started the year with a significant volume of potential sales and are hopeful that at least one of our current SHIPS schemes will be let and sold, most likely in the second half.

Brexit uncertainty and the outcome of the General Election will undoubtedly continue to influence the market and it is impossible at this stage to estimate that impact. Uncertainty is never positive and we expect transactions will prove more difficult to complete. However, this may produce interesting buying opportunities for SHIPS and other clients."

END

For further information, please call:

David Fletcher/ Peter Bailey, Fletcher King  020 7493 8400

James Caithie, Cairn Financial Advisers LLP 020 7213 0880

CHAIRMAN'S STATEMENT

Results

Revenue for the year was 4,094,000 (2016: 4,633,000). Profit on disposal of property investment was nil (2016: 593,000). Profit before tax was 738,000 (2016: 1,355,000).

The board is proposing a final dividend of 3.00p per share. The final dividend is subject to shareholder approval at the AGM and will be paid on 6 October 2017 to those shareholders on the register at the close of business on 8 September 2017. With the interim dividend of 1.00p per share (2016:1.00p) the dividend for the year will amount to 4.00p per share (2016: 10.00p per share).

The Commercial Property Market

The unexpected EU Referendum result in June 2016 has brought significant uncertainty to the market. However, after initial market turmoil, demand for commercial investment property remained reasonably strong and we transacted a higher level of sales than anticipated at very competitive prices, particularly for industrial investments. Only in the case of Central London sales were prices at marginally below Brexit levels. It was noticeable that although there were fewer buyers in the market there was still competitive bidding for the majority of our sales.

The letting market was by contrast more influenced by the uncertainties and Central London office rents have generally fallen by circa 5% to 10% and demand is definitely somewhat muted.

Business Overview

We are pleased with the results for the year. In particular, our second half turned out better than we expected largely due to a higher volume of sales post Brexit than anticipated. All departments performed well during the year and some significant rating appeals were settled despite the Valuation Office continuing to procrastinate on listing appeals. Valuations were steady and asset management enjoyed a better than average year.

Outlook

We have again started the year with a significant volume of potential sales and are hopeful that at least one of our current SHIPS properties will be let and sold, most likely in the second half.

Brexit uncertainty and the outcome of the General Election will undoubtedly continue to influence the market and it is impossible at this stage to estimate that impact. Uncertainty is never positive and we expect transactions will prove more difficult to complete. However, this may produce interesting buying opportunities for SHIPS and other clients.

It is very difficult to forecast what might happen in the coming year but we have a strong balance sheet, very loyal clients and hard working staff so we are well placed for the challenges ahead.

DAVID FLETCHER

CHAIRMAN

13 July 2017

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the year ended 30 April 2017

Note
2017
2016
000
000
Revenue
4,094
4,633
Employee benefits expense
(2,129)
(2,640)
Depreciation expense
(34)
(34)
Other operating expenses
(1,214)
(1,230)
Operating profit
717
729
Profit on disposal of available for sale investments
-
593
Income from investments
12
22
Finance income
9
11
Profit before taxation
738
1,355
Taxation
(159)
(295)
Profit and total comprehensive income for the year attributable to equity shareholders
579
1,060
Basic and diluted earnings per share
3
6.29p
11.51p


CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 April 2017

2017
2016
000
000
Assets
Non-current assets
Property, plant and equipment
16
50
Available-for-sale investments
1,588
1,274
Deferred tax assets
16
18
1,620
1,342
Current assets
Trade and other receivables
1,495
871
Cash and cash equivalents
2,733
2,846
4,228
3,717
Total assets
5,848
5,059
Liabilities
Current liabilities
Trade and other payables
568
346
Current taxation liabilities
97
282
Other payables
883
526
1,548
1,154
Total liabilities
1,548
1,154
Shareholders' equity
Share capital
921
921
Share premium
140
140
Retained Earnings
3,239
2,844
Total shareholders' equity
4,300
3,905
Total equity and liabilities
5,848
5,059


CONSOLIDATED STATEMENT OF CASH FLOWS

for the year ended 30 April 2017

2017
2016
000
000
Cash flows from operating activities
Profit before taxation from continuing operations
738
1,355
Adjustments for:
Depreciation expense
34
34
Profit on disposal of available for sale investments
-
593
Income from investments
(12)
(22)
Finance income
(9)
(11)
Cash flows from operating activities before
movement in working capital
751
763
Decrease in trade and other receivables
(624)
284
Decrease in trade and other payables
579
(291)
Cash generated from operations
706
756
Taxation paid
(342)
(91)
Net cash flows from operating activities
364
665
Cash flows from investing activities
Purchase of investments
(314)
(1,274)
Sale of investments
-
1,468
Finance income
9
11
Income from investments
12
22
Net cash flows from investing activities
(293)
227
Cash flows from financing activities
Dividends paid to shareholders
(184)
(898)
Net cash flows from financing activities
(184)
(898)
Net decrease in cash and cash equivalents
(113)
(6)
Cash and cash equivalents at start of year
2,846
2,852
Cash and cash equivalents at end of year
2,733
2,846

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 30 April 2017

Note
Share
capital
Share
premium
Retained
Earnings
TOTAL
EQUITY
000
000
000
000
Balance at 1 May 2015
921
140
2,682
3,743
Total comprehensive income for the year
-
-
1,060
1,060
Equity dividends paid
2
-
-
(898)
(898)
Balance at 30 April 2016
921
140
2,844
3,905
Total comprehensive income for the year
-
-
579
579
Equity dividends paid
2
-
-
(184)
(184)
Balance at 30 April 2017
921
140
3,239
4,300


NOTES

1. Basis of preparation

The financial information set out above, which has been prepared on the basis of the accounting policies as set out in the prior year's accounts, does not comprise the company's statutory financial statements for the year ended 30 April 2017. While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRSs) as adopted by the European Union, this announcement does not itself contain sufficient information to comply with IFRSs. Statutory financial statements for the previous financial year ended 30 April 2016 have been delivered to the Registrar of Companies. The auditors' report on those financial statements was unqualified and did not contain any statement under section 498(2) or (3) of the Companies Act 2006 and did not include references to any matters to which the auditor drew attention by way of emphasis. The statutory accounts for the year ended 30 April 2017 have not yet been delivered to the Registrar of Companies, nor have the auditors yet reported on them.

2. Dividends

Year ended 30 April
2017
2016
000
000
Equity dividends on ordinary shares:
Declared and paid during year
Ordinary final dividend for the year ended 30 April 2016: 1.00p per share (2015: 0.75p)
92
69
Special dividend for the year ended 30 April 2017: nil (2016: 8.00p per share
Interim dividend for the year ended 30 April 2017: 1.00p per share (2016: 1.00p)
-
92
737
92
184
898
Proposed ordinary final dividend for the year ended
30 April 2017: 3.00p per share
276


3. Earnings per share

2017
No
2016
No
Weighted average number of shares for basic and diluted earnings per share
9,209,779
9,209,779
000
000
Earnings for basic and diluted earnings per share
579
1,060
Basic and diluted earnings per share
6.29p
11.51p

This information is provided by RNS

The company news service from the London Stock Exchange

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