REG - Fletcher King PLC - Half-year Report <Origin Href="QuoteRef">FCHK.L</Origin>

Fletcher KingAnnouncement

15/12/2016 07:06

RNS Number : 8900R
Fletcher King PLC
15 December 2016
FLETCHER KING PLC
Interim Results for the 6 months ended 31 October 2016
Financial Highlights
 Turnover : 1,680,000 (2015: 2,963,000)
 PBT : 163,000 (2015: 1,187,000)
 Basic EPS : 1.37p per share (2015: 10.26p per share)
 Dividend : 1.00p per share (2015: 1.00p per share)
Operational Highlights
 The Market - Some normality has returned to the market following initial turmoil in the immediate aftermath of the EU Referendum result. Pre-Brexit rent levels continue to be achieved and the investment market remains reasonably active although volumes are lower and prices have drifted down 5% - 10%.
 Fund Management and Investment - A number of transactions agreed before the Referendum proceeded to completion and a number of other investment transactions are progressing well.
Commenting on the results David Fletcher, Chairman of Fletcher King said:
"In spite of the Brexit market turmoil we have been able to produce a reasonable performance in the first half year. Uncertainty is likely to be around for some considerable time, but investors and tenants are active and we expect to see steady progress for the remainder of the year".
ENQUIRIES:
Fletcher King Plc
David Fletcher
Tel: 020 7493 8400
Cairn Financial Advisers LLP (Nomad)
James Caithie
Tel: 020 7213 0880
The interim results are available on the Company's website: www.fletcherking.co.uk


CHAIRMAN'S STATEMENT
Results
Turnover for the period was 1,680,000 (2015: 2,963,000) with a profit before tax of 163,000 (2015: 1,187,000). Performance last year was influenced by the sale of a SHIPS property. Your Directors have declared an interim dividend of 1.0p per share (2015: 1.0p per share) to be paid on 17 February 2017 to shareholders on the register at the close of business on 20 January 2017.
The Commercial Property Market
The market has been dominated by the run up to the EU Referendum and the aftermath of the unexpected result to leave.
In the weeks immediately following the result the market was in turmoil with Open Ended Unitised Funds seeing a rush of redemptions and they all closed their doors. However, some normality quickly returned. Whilst a few significant lettings fell through, the market has generally held up well with pre-Brexit rent levels continuing to be achieved. Whilst the letting market is seeing some caution there remains a reasonable level of demand. Apple have announced their move to 500,000 sq ft in the Battersea Power Station development and Google have confirmed that their new 650,000 sq ft London HQ at Kings Cross will go ahead.
The investment market remains reasonably active although volumes are lower and prices have drifted down 5% -10%. The devalued pound has attracted foreign buyers who accounted for 80% of central London deals in the last quarter.
Business Overview
In spite of the market turmoil we have been able to produce a reasonable performance in the first half year. The investment department did particularly well and a number of transactions agreed before the Referendum proceeded to exchange and completion.
Uncertainty remains and is likely to be there for some considerable time until Brexit terms are agreed. However, investors and tenants are active and our business is doing reasonably well.
Outlook
We expect to see steady progress for the remainder of the year and have a number of investment transactions progressing well.
Properties owned by the two SHIPS Syndicates are currently being refurbished although they will not be contributors to this year's profit. Once the markets have settled down we shall be seeking further investments for the SHIPS Syndicates.
David Fletcher
Chairman
15 December 2016


Fletcher King Plc
Consolidated Interim Statement of Comprehensive Income 
for the 6 months ended 31 October 2016

6 months ended

6 months ended

Year ended

31 October

31 October

30 April

2016
(Unaudited)

2015
(Unaudited)

2016 (Audited)

000

000

000






Revenue
1,680

2,963

4,633
Employee benefits expense
(927)

(1,754)

(2,640)
Depreciation expense
(17)

(17)

(34)
Other operating expenses
(590)

(610)

(1,230)






Operating profit
146

582

729






Profit on sale of available for sale investments
-

590

593
Income from investments
11

10

22
Finance income
6

5

11
Profit before taxation
163

1,187

1,355






Taxation
(37)

(242)

(295)






Profit for the period
126

945

1,060






Total comprehensive income for the period
126

945

1,060






Earnings per share (note 4)





- Basic
1.37p

10.26p

11.51p
- Diluted 
1.28p

10.26p

11.51p
Dividends per share





Interim dividend proposed
1.00p

1.00p

-
Dividends paid
1.00p

8.75p

9.75p


Fletcher King Plc
Consolidated Interim Statement of Financial Position 
as at 31 October 2016


31 October 

31 October 

30 April


2016
(Unaudited)

2015
(Unaudited)

2016
(Audited)


000

000

000







Assets






Non-current assets






Property, plant and equipment

32

67

50
Available for sale investments

1,368

752

1,274
Deferred tax assets

18

18

18
















1,418

837

1,342














Current Assets






Trade and other receivables

766

838

871
Cash and cash equivalents

2,641

4,070

2,846
















3,407

4,908

3,717














Total assets

4,825

5,745

5,059





















Liabilities






Current liabilities






Trade and other payables

200

1,096

346
Current taxation liabilities

320

337

282
Other creditors 

366

430

526














Total liabilities

886

1,863

1,154





















Shareholders' equity






Share capital

921

921

921
Share premium

140

140

140
Reserves

2,878

2,821

2,844














Total shareholders' equity

3,939

3,882

3,905














Total equity and liabilities

4,825

5,745

5,059









Fletcher King Plc
Consolidated Interim Statement of Changes in Equity 
for the 6 months ended 31 October 2016






Profit





Share

Share

and


TOTAL


capital

premium

loss


EQUITY


000

000

000


000










Balance at 1 May 2016

921

140

2,844


3,905




















Total comprehensive income for the period

 - 

 - 

126


126
Equity dividends paid

 - 

 - 

(92)


(92)










Balance at 31 October 2016 (Unaudited)

921

140

2,878


3,939




















Balance at 1 May 2015

921

140

2,682


3,743




















Total comprehensive income for the period

 - 

 - 

945


945
Equity dividends paid

 - 

 -

(806)


(806)










Balance at 31 October 2015 (Unaudited)

921

140

2,821


3,882




















Balance at 1 May 2015

921

140

2,682


3,743










Total comprehensive income for the period

 - 

 - 

1,060


1,060
Equity dividends paid

 - 

 - 

(898)


(898)










Balance at 30 April 2016 (Audited)

921

140

2,844


3,905


Fletcher King Plc
Consolidated Interim Statement of Cash Flows
for the 6 months ended 31 October 2016


6 months ended

6 months ended

Year ended


31 October

31 October

30 April


2016 (Unaudited)

2015 (Unaudited)

2016 
(Audited)


000

000

000







Cash flows from operating activities






Profit before taxation from continuing operations
163

1,187

1,355
Adjustments for:






Depreciation expense

17

17

34
Profit on sale of investments

-

(590)

(593)
Income from investments

(11)

(10)

(22)
Finance income

(6)

(5)

(11)







Cash flows from operating activities






before movement in working capital

163

599

763






Decrease/(increase) in trade and other receivables
105

311

284
(Decrease)/increase in trade and other payables
(306)

369

(291)







Cash (absorbed)/generated from operations

(38)

1,279

756
Taxation received/(paid)

2

17

(91)







Net cash flows from operating activities

(36)

1,296

665







Cash flows from investing activities






Purchase of investments

(94)

(752)

 (1,274)
Sale of investments

-

1,465

1,468
Finance income

6

5

11
Income from investments

11

10

22







Net cash flows from investing activities

(77)

728

227







Cash flows from financing activities






Dividends paid to shareholders

(92)

(806)

(898)







Net cash flows from financing activities

(92)

(806)

(898)
Net increase/(decrease) in cash and cash equivalents

(205)

1,218

(6)
Cash and cash equivalents at start of period
2,846

2,852

2,852
Cash and cash equivalents






at end of period

2,641

4,070

2,846


Fletcher King Plc
Explanatory Notes
1. General information
The Company is a public limited company incorporated and domiciled in England and Wales. The address of its registered office is 61 Conduit Street, London W1S 2GB. 
These interim financial statements were approved by the Board of Directors on 14 December 2016.
2. Basis of preparation
The interim financial information in this report has been prepared using accounting policies consistent with IFRS as adopted by the European Union. IFRS is subject to amendment and interpretation by the International Accounting Standards Board (IASB) and the International Financial Reporting Standards Interpretations Committee and there is an ongoing process of review and endorsement by the European Commission. The financial information has been prepared on the basis of IFRS that the Directors expect to be adopted by the European Union and applicable as at 30 April 2017.
The accounting policies applied are consistent with those of the annual financial statements for the year ended 30 April 2016. There are no new standards interpretations and amendments, effective for the first time from 1 May 2016, that have had a material effect on the financial statements of the Group.
Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.
3. Non Statutory Accounts
The financial information for the period ended 30 April 2016 set out in this interim report does not constitute the Group's statutory accounts for that period. Whilst the financial figures included in this interim report have been computed in accordance with IFRS, this interim report does not contain sufficient information to constitute an interim financial report as that term is defined in IAS34. The statutory accounts for the year ended 30 April 2016 have been delivered to the Registrar of Companies. The auditors reported on those accounts; their report was unqualified, 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 financial information for the 6 months ended 31 October 2016 and 31 October 2015 is unaudited.
4. Earnings per share 

6 months to 31 October 2016
Number
6 months to 31 October 2015
Number
Year ended 30 April 2016
Number
Weighted average number of shares for basic earnings per share
9,209,779
9,209,779
9,209,779
Share options
600,000
-
-
Total for diluted
9,809,779
9,209,779
9,209,779





000
000
000
Earnings for basic and diluted earnings per share:
126
945
1,060
Basic earnings per share
1.37p
10.26p
11.51p
Diluted earnings per share
1.28p
10.26p
11.51p

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