REG - Fletcher King PLC - Final Results

Fletcher KingAnnouncement

31/07/2019 07:05

RNS Number : 2749H
Fletcher King PLC
31 July 2019
 


 
FLETCHER KING PLC
Audited results for the Year Ending 30th April 2019
 
Highlights
 
·   Revenue for the year of £3,053,000 (2018: £3,080,000)
·   Profit before tax of £282,000 (2018: £274,000)
·   Profit after tax of £230,000 (2018: £209,000)
·   Basic earnings per share of 2.50p (2018: 2.27p)
·   Final dividend of 0.75p per share proposed. An interim dividend of 1.00p per share was paid and therefore the total ordinary dividend for the year will be 1.75p per share (2018: 1.75p)
 
 
Commenting on the results, David Fletcher, chairman of Fletcher King Plc said:
 
"Performance for the year turned out very much in line with last year despite challenging market conditions.
 
Ongoing political and Brexit uncertainties are likely to continue to negatively impact the UK property markets in which we operate and it will be increasingly difficult to maintain profitability. However, our strong balance sheet is significant in such times and secures our ability to maintain dividend payments to shareholders".
 
This announcement contains inside information for the purposes of Article 7 of EU regulations 596/2014.
 
END
 
For further information, please call:
David Fletcher/Peter Bailey, Fletcher King            020 7493 8400
James Caithie/Tony Rawlinson, Cairn Financial Advisers LLP 020 7213 0880
 
 
 
 
 
CHAIRMAN'S STATEMENT
 
 
Results
 
Revenue for this year was £3,053,000 (2018: £3,080,000). Profit before tax was £282,000 (2018: £274,000).
 
The board is proposing a final dividend of 0.75p per share. The final dividend is subject to shareholder approval at the AGM and will be paid on 4 October 2019 to shareholders on the register at close of business on 6 September 2019. With the interim dividend of 1.00p per share (2018: 1.00p) the dividend for this year will amount to 1.75p per share (2018: 1.75p per share).
 
The Commercial Property Market
 
The unprecedented political and Brexit uncertainties continue to severely impact lettings and sales in the UK commercial property market.
 
As the next Brexit deadline approaches, both investors and occupiers are likely to become increasingly cautious until this momentous issue is finally resolved.
 
However, there continues to be some reasonable traction in London and the major cities and it is clear that there are substantial funds available for investment once the future becomes more certain.
 
Generally, activity in the capital markets has slowed and prices have softened over the last 6 months.
 
The industrial market continues to be the best performing sector, followed by city centre offices. Retail continues to suffer with no end in sight to the rise in online sales, causing rental values to slide further and a corresponding fall in capital values.
 
Business Overview
 
Performance turned out very much in line with management expectations, and indeed in line with the previous year, and was achieved during challenging market conditions.
 
We transacted a good volume of investment property sales although market prices were lower towards the end of the period.
 
Property Management, Rating and Valuations all performed well although the Valuation Office continued to delay settlement of rating appeals which makes income forecasting difficult for that part of our business.
 
The Stratton House Investment Property Syndicates ("SHIPS"), in which we have an investment and are managers, have enjoyed some success in leasing up vacant space.
 
Two further floors in the Clerkenwell building were let earlier this calendar year and the last two vacant floors were let in July 2019.
 
The City building likewise achieved lettings of three floors during the financial year and a further floor was let in July 2019. Two floors remain to be let.
 
Outlook
 
Forecasting the future is more difficult than ever for the reasons outlined above. We have some good investment sales instructions but fewer than the same time last year.
 
Property management is hoping to secure further mandates and it will continue to provide a steady and secure income flow.
 
Rating income is entirely driven by the Valuation Office's willingness to engage in negotiations on the many challenges we have in the pipeline.
 
Currently the banks continue to lend and we anticipate a steady flow of valuation instructions.
 
As a result of the uncertainties I have outlined above it is impossible to accurately predict the outcome for the coming year as it becomes increasingly difficult to maintain profitability.
 
We manage the business conservatively and in such times a strong balance sheet, with liquidity and no debt, is of immense importance to our relationship with our clients and also in the recruitment and retention of our valuable staff. It also secures our ability to continue our unbroken record of dividend payment.
 
As always thanks must go to our loyal clients and hardworking colleagues.
 
DAVID FLETCHER
CHAIRMAN
30 July 2019
 
 
 
 
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 April 2019
 




 


Note


2019


2018




 


 


£000


£000




 


 


 


 




 


 


 


 




Revenue


 


3,053


3,080




Employee benefits expense


 


(1,648)


(1,609)




Depreciation expense


 


(3)


(18)




Other operating expenses
Other operating income


 


(1,218)
91


(1,242)
61




 


 


 


 




Operating profit


 


275


272




 


 


 


 




Finance income


 


7


2




 


 


 


 




Profit before taxation


 


282


274




 


 


 


 




 


 


 


 




Taxation


 


(52)


(65)




 


 


 


 




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


 


 
230


 
209




Basic earnings per share
Diluted earnings per share
 


3
3
 


2.50p
2.50p
 


2.27p
2.25p
 




 


 


 


 




 


 


 


 




 


 


 


 




 


 


 


 




 
 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 April 2019
 
 
 




 


2019


2018




 


£000


£000




 


 


 




Assets


 


 




Non-current assets


 


 




Property, plant and equipment


9


12




Financial assets


1,603


1,588




Deferred tax assets


16


16




 


1,628


1,616




 


 


 




Current assets


 


 




Trade and other receivables


1,809


917




Cash and cash equivalents


2,001


2,628




 


3,810


3,545




 


 


 




 


 


 




 


 


 




Total assets


5,438


5,161




 


 


 




Liabilities


 


 




Current liabilities


 


 




Trade and other payables


1,204


977




Current taxation liabilities


24


43




 


1,228


1,020




 


 


 




 


 


 




Total liabilities


1,228


1,020




 


 


 




Shareholders' equity


 


 




Share capital


921


921




Share premium


140


140




Retained Earnings


3,149


3,080




Total shareholders' equity


4,210


4,141




 


 


 




Total equity and liabilities


5,438


5,161




 


 


 




 
 
  
 
 
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 30 April 2019
 
 
 




 


2019


2018




 


£000


£000




 


 


 




Cash flows from operating activities


 


 




Profit before taxation from continuing operations


282


274




Adjustments for:


 


 




Depreciation expense


3


18




Finance income


(7)


(2)




 


 


 




Cash flows from operating activities before
movement in working capital


 


 




278


290




(Increase)/decrease in trade and other receivables


(892)


578




Increase/(decrease) in trade and other payables


226


(474)




 


 


 




Cash (absorbed)/generated from operations


(388)


394




 


 


 




Taxation paid


(70)


(119)




 


 


 




Net cash flows from operating activities


(458)


275




 


 


 




Cash flows from investing activities


 


 




Purchase of investments


(15)


-




Purchase of fixed assets


-


(14)




Finance income


7


2




Net cash flows from investing activities


(8)


(12)




 


 


 




Cash flows from financing activities


 


 




Dividends paid to shareholders


(161)


(368)




Net cash flows from financing activities


(161)


(368)




 


 


 




Net decrease in cash and cash equivalents


(627)


(105)




Cash and cash equivalents at start of year


2,628


2,733




Cash and cash equivalents at end of year


2,001


2,628




 
 
 
 
 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 April 2019
 
 




 


 
Note


 
Share
capital


 
Share
premium


 
Retained
Earnings


 
TOTAL
EQUITY




 


 


£000


£000


£000


£000




 


 


 


 


 


 




Balance at 1 May 2017


 


921


140


3,239


4,300




 


 


 


 


 


 




Total comprehensive income for the year


 


-


-


209


209




Equity dividends paid


2


-


-


(368)


(368)




 


 


 


 


 


 




Balance at 30 April 2018


 


921


140


3,080


4,141




 


 


 


 


 


 




Total comprehensive income for the year


 


-


-


230


230




Equity dividends paid


2


-


-


(161)


(161)




 


 


 


 


 


 




 


 


 


 


 


 




Balance at 30 April 2019


 


921


140


3,149


4,210




 


 


 


 


 


 




 
 
 
 NOTES
 
 
1. Basis of preparation
 
The financial information set out in this announcement does not comprise the Group's statutory accounts for the year ended 30 April 2019. The financial information has been extracted from the statutory accounts of the Group for the year ended 30 April 2019. The auditors reported on these accounts. Their reports were unqualified and did not contain a statement under either Section 498 (2) or Section 498 (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 2018 have been delivered to the Registrar of Companies, whereas those for the year ended 30 April 2019 will be delivered to the Registrar of Companies following the Company's annual general meeting. Except where noted in the statutory accounts the accounting policies are consistent with those applied in the preparation of the interim results for the period ended 31 October 2018 and the statutory accounts for the year ended 30 April 2018, which have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union.
 
2.  Dividends
 
 




Year ended 30 April


2019


2018




 


£000


£000




 


 


 




Equity dividends on ordinary shares:


 


 




Declared and paid during year


 


 




Ordinary final dividend for the year ended 30 April 2018: 0.75p per share (2017:  3.00p)


69
 


276
 




Interim dividend for the year ended 30 April 2019: 1.00p per share (2018: 1.00p)


92


92




 


 


 




 


161


368




 


 


 




Proposed ordinary final dividend for the year ended
30 April 2019: 0.75p per share


 
69


 
 




 


 


 




 
3. Earnings per share
 




 


2019
No


2018
No




 


 


 




Weighted average number of shares for basic earnings per share
Share options


9,209,779
-


9,209,779
58,907




 
Weighted average number of shares for diluted earnings per share


 
9,209,779
 


 
9,268,686
 




 
 


 
£000


 
£000




 
Earnings for basic and diluted earnings per share


 
230


 
209




 
Basic earnings per share


 
2.50p
 


 
2.27p
 




Diluted earnings per share
 


2.50p


2.25p




 


 


 




 




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END
 
 
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