REG - Fletcher King PLC - Final Results <Origin Href="QuoteRef">FCHK.L</Origin>

Fletcher KingAnnouncement

12/07/2016 07:05

RNS Number : 8704D
Fletcher King PLC
12 July 2016
FLETCHER KING PLC
Preliminary Results for the Year Ending 30th April 2016
Highlights
 Revenue for the year of 4,633,000 (2015: 3,380,000)
 Profit before tax of 1,355,000 (2015: 461,000)
 Profit after tax of 1,060,000 (2015: 359,000)
 Basic and diluted earnings per share of 11.51p (2015: 3.90p)
 Final dividend of 1.00p per share. An interim dividend of 1.00p per share was paid together with a special dividend of 8.00p per share and therefore the total ordinary dividend for the year will be 10.00p per share (2015: 2.25p)
Commenting on the results, David Fletcher, chairman of Fletcher King Plc said: 
"Our excellent performance this year was significantly influenced by the fees and profits earned on the sale of 145 Leadenhall Street, a property owned by the SHIPS 14 Syndicate in which the company co-invested and acted as adviser. The underlying business performed much in line with last year.
The unexpected vote to leave the EU has had a destabilising effect on the market and the uncertainties are likely to influence it for some time to come. However, with no debt and cash reserves, we are well placed to weather challenging times as we have done on numerous occasions in the past."
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 4,633,000 (2015: 3,380,000). In addition, profit on disposal of property investments amounted to 593,000 (2015: nil). Profit before tax was 1,355,000 (2015: 461,000).
The Board is proposing a final dividend of 1.00p per share. The final dividend is subject to shareholder approval at the AGM and will be paid on the 7 October 2016 to those shareholders on the register at close of business on 9 September 2016. With the interim dividend of 1.00p per share (2015: 1.50p per share) plus the special dividend of 8.00p per share already paid, the dividend for the year will amount to 10.00p per share (2015: 2.25p per share).
The Commercial Property Market
The market generally has seen reasonably strong demand from both tenants and investors. However this demand diminished somewhat in the lead up to the EU referendum. This was particularly noticeable in the investment market. The stamp duty increase of 1% didn't help and data from the Investment Property Databank (IPD) showed capital values in Q1 2016 falling for the first time for some years albeit by only 0.2%. UK investors have been net sellers in Q4 2015 and Q1 2016 and the outlook post Brexit is currently uncertain. 
Business Overview
As reported in the Interim Results, our excellent performance this year was significantly influenced by the fees and profits earned on the sale of 145 Leadenhall Street, a property owned by the SHIPS 14 Syndicate in which the Group co-invested and acted as adviser. The sale of the property and the payment of a special dividend of 8p per share was announced on 1 September 2015. 
During the year, we established two new SHIPS funds to acquire freehold office buildings in Botolph Lane adjacent to Monument Tube Station in the City and a building in Sekforde Street, Clerkenwell. They will become vacant by the end of 2016 when refurbishment works will commence. We anticipate having them available to let in 2017.
The underlying business continued to perform well with all departments performing much in line with last year. Valuation instructions increased significantly, reflecting increased bank lending to the commercial property sector. The Valuation Office has again slowed down settlement of Rating Appeals which affected turnover, but we still settled some significant assessments. 

Outlook
We have started the year well and have completed the sale of over 50m of office and industrial investments. 
The unexpected vote to leave the EU has had a destabilising effect on the market and the uncertainties are likely to influence it for some time to come. 
Clients are delaying decisions to sell and purchase investment property and this is not helpful for our transaction business. 
The effect of this is impossible to predict but we are debt free and have cash reserves. We are well placed to weather challenging times as we have done on numerous times in the past. 
I hope that later in the year the market will establish a pattern and give confidence to our clients to move forward. 
DAVID FLETCHER
CHAIRMAN
12 July 2016


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 April 2016

Note
2016
2015


000
000








Revenue

4,633
3,380
Employee benefits expense

(2,640)
(1,843)
Depreciation expense

(34)
(36)
Other operating expenses

(1,230)
(1,057)




Operating profit

729
444




Profit on disposal of available for sale investments

593
-
Income from investments

22
4
Finance income

11
13




Profit before taxation

1,355
461








Taxation

(295)
(102)




Profit and total comprehensive income for the year attributable to equity shareholders

1,060
359
Basic and diluted earnings per share
3
11.51p
3.90p


















CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 April 2016 

2016
2015

000
000



Assets


Non-current assets


Property, plant and equipment
50
84
Available-for-sale investments
1,274
875
Deferred tax assets
18
18

1,342
977



Current assets


Trade and other receivables
871
1,149
Cash and cash equivalents
2,846
2,852

3,717
4,001









Total assets
5,059
4,978



Liabilities


Current liabilities


Trade and other payables
346
516
Current taxation liabilities
282
78
Other payables 
526
641

1,154
1,235






Total liabilities
1,154
1,235



Shareholders' equity


Share capital
921
921
Share premium
140
140
Retained Earnings
2,844
2,682
Total shareholders' equity
3,905
3,743



Total equity and liabilities
5,059
4,978





CONSOLIDATED STATEMENT OF CASH FLOWS 
for the year ended 30 April 2016

2016
2015

000
000



Cash flows from operating activities


Profit before taxation from continuing operations
1,355
461
Adjustments for:


Depreciation expense 
34
36
Profit on disposal of available for sale investments
593
-
Income from investments 
(22)
(4)
Finance income
(11)
(13)



Cash flows from operating activities before
movement in working capital 


763
480
Decrease in trade and other receivables 
284
98
Decrease in trade and other payables 
(291)
(432)



Cash generated from operations 
756
146



Taxation paid
(91)
(147)



Net cash flows from operating activities
665
(1)



Cash flows from investing activities


Purchase of fixed assets
-
(8)
Purchase of investments
(1,274)
(125)
Sale of investments
1,468
-
Finance income
11
13
Income from investments
22
4
Net cash flows from investing activities
227
(116)



Cash flows from financing activities


Dividends paid to shareholders 
(898)
(345)
Net cash flows from financing activities 
(898)
(345)



Net decrease in cash and cash equivalents
(6)
(462)
Cash and cash equivalents at start of year 
2,852
3,314
Cash and cash equivalents at end of year
2,846
2,852
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 April 2016

Note
Share
capital
Share
premium
Retained
Earnings 
TOTAL
EQUITY


000
000
000
000






Balance at 1 May 2014

921
140
2,668
3,729






Total comprehensive income for the year

-
-
359
359
Equity dividends paid
2
-
-
(345)
(345)






Balance at 30 April 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








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 2016. 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 2015 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 2016 have not yet been delivered to the Registrar of Companies, nor have the auditors yet reported on them.
2. Dividends
Year ended 30 April
2016
2015

000
000



Equity dividends on ordinary shares:


Declared and paid during year


Ordinary final dividend for the year ended 30 April 2015: 0.75p per share (2014: 2.25p) 
69
207
Special dividend for the year ended 30 April 2016: 8.00p per share
Interim dividend for the year ended 30 April 2016: 1.00p per share (2015: 1.50p)
737
92
-
138




898
345



Proposed ordinary final dividend for the year ended
30 April 2016: 1.00p per share 
92



3. Earnings per share 

2016
No
2015
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
1,060
359









Basic and diluted earnings per share
11.51p
3.90p







This information is provided by RNS
The company news service from the London Stock Exchange
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