REG - Fletcher King PLC - Final Results <Origin Href="QuoteRef">FCHK.L</Origin>
06/09/2014 16:32
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RNS Number : 2841M
Fletcher King PLC
15 July 2014
FLETCHER KING PLC
Preliminary Results for the Year Ending 30th April 2014
Highlights
· Revenue for the year of £3.653m (2013: £3.031m)
· Profit before tax of £711,000 (2013: £292,000)
· Profit after tax of £542,000 (2013: £227,000)
· Basic and diluted earnings per share of 5.89p (2013: 2.46p)
· Final dividend of 2.25p per share. An interim dividend of 0.75p per share
was paid and therefore the total ordinary dividend for the year will be 3.0p
per share (2013: 1.50p)
Commenting on the results, David Fletcher, chairman of Fletcher King plc
said:
"We have had an excellent year and it will be a hard task to match the
performance in the coming year but we have some good business in the
pipeline.
We are hopeful of picking up further Asset Management work this year and our
SHIPS investors have indicated an appetite for further investments if we can
find the stock.
As always I must pay tribute to our talented and hardworking team and to all
our loyal clients without whom we would have no business."
END
For further information, please call:
David Fletcher/ Peter Bailey, Fletcher King 020 7493 8400
James Caithie, Cairn Financial Advisers LLP 020 7148 7900
CHAIRMAN'S STATEMENT
Results
Revenue for the year was £3.65m (2013: £3.03m) with profit before tax of
£711,000 (2013: £292,000)
The board is proposing a final dividend of 2.25p per share (2013: 0.75p). The
final dividend is subject to shareholder approval at the AGM and will be paid
on 25 September 2014 to those shareholders on the register at close of
business on 29 August 2014. With the interim of 0.75p per share (2013: 0.75p)
already paid, the total ordinary dividend for the year will amount to 3.0p per
share (2013: 1.5p).
The board considers the results for the year to be highly satisfactory.
The Commercial Property Market
The commercial property market has continued its improvement during the second
half of our year.
The investment market in London and the south east continues to be very
strong. Investors looking for higher returns are extending their purchasing
into most major cities with multi-let industrial buildings and high street
shops being most in favour.
Provincial offices, in all but a very few centres, continue to be difficult to
sell or let.
Tenant demand outside London and the south east remains patchy but the
industrial market continues to be active. Selective high streets are now
attracting tenants as are offices in some of the regional centres.
Central London continues to be a strong market for lettings and investment
demand.
Business Overview
Investment transactions have been excellent in the second half. We enjoyed a
number of notable successes including the largest sale in the history of the
firm of an office block on the Old Street roundabout for £110m.
Our "SHIPS" funds have enjoyed a successful year and the return on our cash
invested together with fees and carried interests have made a significant
contribution to performance. Both the Basinghall Street and St Swithins Lane
buildings were sold during the year providing returns to investors of 11% per
annum and 20% per annum respectively.
A further acquisition for "SHIPS" was made in December with the purchase of a
multi-let office building in Leadenhall Street adjacent to the "Cheesegrater"
for circa £9m. The common parts and three floors of this building are
currently being refurbished. We continue to look for similar situations.
The investment side of our business has started the new year with some good
sale and purchase instructions but it will be a challenge to match this year's
performance.
Fund Management continues to perform well and its regular quarterly fee income
is a valuable contribution to performance.
The same can be said for Asset Management which had an excellent year with new
business added.
Rating had a very difficult year and continues to be affected by the
unacceptably slow progress the Valuation Office is making in settling
outstanding appeals. It is hoped that the huge backlog will start to be agreed
and our fee income in this area will grow again.
In my Interim Statement I reported an increase in valuations work and this
trend has continued into the second half.
Outlook
We have had an excellent year and it will be a hard task to match the
performance in the coming year. We have some good business in the pipeline
but the higher margin transaction business requires not only hard work but
also often relies on factors outside our control falling into place.
We are hopeful of picking up further Asset Management work this year and our
SHIPS investors have indicated an appetite for further investments if we can
find the stock.
As always I must pay tribute to our talented and hardworking team and to all
our loyal clients without whom we would have no business.
David Fletcher
Chairman
15 July 2014
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 April 2014
Note 2014 2013
£000 £000
Revenue 3,653 3,031
Employee benefits expense (2,017) (1,641)
Depreciation expense (44) (43)
Other operating expenses (1,083) (1,085)
Operating profit 509 262
Profit on disposal of available for sale investments 174 -
Income from investments 13 11
Finance income 15 19
Profit before taxation 711 292
Taxation (169) (65)
Profit for the year 542 227
Other comprehensive income for the year, net of tax - -
Total comprehensive income for the year attributable to equity shareholders 542 227
Basic and diluted earnings per share 3 5.89p 2.46p
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 April 2014
2014 2013
£000 £000
Assets
Non-current assets
Property, plant and equipment 112 141
Available-for-sale investments 750 500
Deferred tax assets 18 63
880 704
Current assets
Trade and other receivables 1,247 1,462
Cash and cash equivalents 3,314 2,571
4,561 4,033
Total assets 5,441 4,737
Liabilities
Current liabilities
Trade and other payables 702 810
Current taxation liabilities 123 53
Other creditors 887 549
1,712 1,412
Total liabilities 1,712 1,412
Shareholders' equity
Share capital 921 921
Share premium 140 140
Profit and Loss reserve 2,668 2,264
Total shareholders' equity 3,729 3,325
Total equity and liabilities 5,441 4,737
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 30 April 2014
2014 2013
£000 £000
Cash flows from operating activities
Profit before taxation from continuing operations 711 292
Adjustments for:
Depreciation expense 44 43
Profit on disposal of available for sale investments (174) -
Income from investments (13) (11)
Finance income (15) (19)
Cash flows from operating activities beforemovement in working capital 305
553
Decrease/(increase) in trade and other receivables 215 (570)
Increase in trade and other payables 230 207
Cash generated from/(absorbed by) operations 998 (58)
Taxation paid (54) (71)
Net cash flows from operating activities 944 (129)
Cash flows from investing activities
Purchase of fixed assets (15) (4)
Purchase of investments (750) -
Sale of investments 674 -
Finance income 15 19
Income from investments 13 11
Net cash flows from investing activities (63) 26
Cash flows from financing activities
Dividends paid to shareholders (138) (138)
Net cash flows from financing activities (138) (138)
Net increase/(decrease) in cash and cash equivalents 743 (241)
Cash and cash equivalents at start of year 2,571 2,812
Cash and cash equivalents at end of year 3,314 2,571
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 April 2014
Note Sharecapital Sharepremium Profitandloss reserve TOTALEQUITY
£000 £000 £000 £000
Balance at 1 May 2012 921 140 2,175 3,236
Total comprehensive income for the year - - 227 227
Equity dividends paid 2 - - (138) (138)
Balance at 30 April 2013 921 140 2,264 3,325
Total comprehensive income for the year - - 542 542
Equity dividends paid 2 - - (138) (138)
Balance at 30 April 2014 921 140 2,668 3,729
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 2014. 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 2013 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 2014 have not yet been delivered to the Registrar of
Companies, nor have the auditors yet reported on them.
2. Dividends
Year ended 30 April 2014 2013
£000 £000
Equity dividends on ordinary shares:
Declared and paid during year
Ordinary final dividend for the year ended 30 April 2013: 0.75p per share (2012: 0.75p) 69 69
Interim dividend for the year ended 30 April 2014: 0.75p per share (2013: 0.75p) 69 69
138 138
Proposed ordinary final dividend for the year ended30 April 2014: 0.75p per share 207
3. Earnings per share
2014No 2013No
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 542 227
Basic and diluted earnings per share 5.89p 2.46p
This information is provided by RNS
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