REG - Fletcher King PLC - Half-year Report
23/12/2021 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20211223:nRSW5653Wa&default-theme=true
RNS Number : 5653W Fletcher King PLC 23 December 2021
FLETCHER KING PLC
Interim Results for the 6 months ended 31 October 2021
Financial Highlights
Turnover:
£1,426,000 (2020
restated: £909,000)
Earnings before tax: £11,000
(2020: £477,000 loss)
Basic EPS:
0.12p per share (2020: 4.47p loss per share)
Dividend proposed: nil
(2020: nil)
Operational Highlights
· Performance was significantly improved on the comparative period last
year, reflecting a return to more stable market conditions.
· Steady and predictable revenue from asset management and fund
management clients was supplemented by an improvement in transaction-based fee
income.
· Post period end, the Company has signed a lease on alternative office
premises that are expected to provide a material reduction in fixed overheads.
Commenting on the results David Fletcher, Chairman of Fletcher King said:
"After a very difficult trading period last year, it is pleasing to report a
return to profitability for the first half of this year, albeit a modest one.
In normal circumstances we would be hopeful for the trend to continue, but
with the emergence of a new covid strain, and potential adverse impact on
society and the wider economy, it remains to be seen how our markets will be
affected".
This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014.
ENQUIRIES:
Fletcher King Plc
David Fletcher / Peter Bailey
Tel: 020 7493 8400
Cairn Financial Advisers LLP (Nomad)
James Caithie / Liam Murray
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 £1,426,000 (2020 restated: £909,000) with a
profit before tax of £11,000 (2020: loss of £447,000).
Dividend
In view of the continued uncertainty and the low level of profit the Board is
not declaring an interim dividend. (2020: no dividend).
The Commercial Property Market
Although a degree of uncertainty continued throughout the period, both the
letting and capital markets were considerably more buoyant compared to the
corresponding period last year and this is reflected in our improved results.
The general improvement in the letting markets however was not across all
segments and retail in particular remained generally subdued. Offices were
more in demand, particularly in Central London and other major city centres,
and industrials continued their upward trajectory.
The capital markets also saw a significant increase in the volume of
transactions with investors having substantial funds to deploy seeking
suitable property to purchase.
Business Overview
It was pleasing to see the Investment Department return to greater activity
and it had a significantly better first half than the corresponding period
last year.
Property Management and Fund Management continued its steady performance and
added instructions from new clients.
The volume of bank valuation instructions increased and this trend continues.
Regrettably the settlement of rating appeals continue to be slow and the
timing of negotiations with the Valuation Office are impossible to predict.
We continue to restrict discretionary expenditure where possible. The lease on
our current offices expires in May next year and we will be moving to new
space which will provide a material reduction in fixed office overheads.
On 4 October we announced that Mr Elliott Bernerd was indirectly acquiring
29.99% of the shares in the Company via a Placing and a purchase of shares
from the three largest shareholders which includes myself. The three
shareholders will be selling 50% of their holding. The transaction is subject
to FCA controller approval which has yet to be received. An announcement
will be made as soon as it has, which is now expected in early 2022.
Outlook
Just when we thought the worst of the pandemic was coming to an end we have
been hit by a new strain. We are once again in a period of uncertainty and it
remains to be seen how our markets will be affected and the duration and
severity of any downturn.
In the current circumstances, it continues to be difficult to assess our
future trading performance but we are encouraged by the return to
profitability in the first half of the year, albeit a modest one, and
hopefully in due course we will be able to return to a dividend payment.
We have some good investment sales instructions in the pipeline and there are
positive signs of increasing numbers of bank valuations. Rating appeals will
remain slow but we are hopeful that at least one of our larger appeals will be
agreed.
Our Fund and Property Management mandates will continue to provide a secure
income stream with opportunities for growth.
As we have previously announced, and subject to FCA approval, the Board is
delighted to welcome Elliott Bernerd as a substantial shareholder in the
Company. It has been our wish for some time to have a significant shareholder
who would help the expansion of our business and assist us in acquiring new
clients and projects. Elliott and I have known each other since the early
years of our careers. His expertise, vast experience and contacts throughout
the property world will be, I am sure, of great value to the Company and its
shareholders.
I am pleased to report that we continue to be securely financed with a strong
balance sheet and cash reserves. This is important not only for shareholders
but also it gives confidence to our valued clients and hard working and
talented staff who I thank for their valuable contribution.
DAVID FLETCHER
CHAIRMAN
23 December 2021
Fletcher King Plc
Consolidated Interim Statement of Comprehensive Income
for the 6 months ended 31 October 2021
6 months ended Restated* Year ended
6 months ended
31 October 31 October 30 April
2021 2020 2021 (Audited)
(Unaudited) (Unaudited)
£000 £000 £000
Revenue 1,426 909 2,264
Employee benefits expense (642) (637) (1,262)
Depreciation expense (140) (140) (281)
Other operating expenses (643) (584) (1,566)
(1,425) (1,361) (3,109)
Other operating income 13 12 25
Investment income - - -
Finance income - 2 2
Finance expense (3) (9) (16)
11 (447) (834)
Profit/(loss) before taxation
Taxation - 35 146
Profit/(loss) for the period 11 (412) (688)
Other comprehensive income
Fair value gain on financial assets through other comprehensive income - - (101)
Total comprehensive income for the period 11 (412) (789)
Earnings per share (note 4)
- Basic 0.12p (4.47p) (7.47p)
- Diluted 0.12p (4.47p) (7.47p)
Dividends per share
Interim dividend proposed - - -
Dividends paid - 0.50p 0.50p
* Prior period restatement relates to the realignment of the Group's revenue
recognition policy to the principal versus agent requirements of IFRS 15. As a
result, revenue has been presented gross of fees shared with third parties,
with the related costs now included within other operating expenses. The
impact on revenue and costs is £0.04m. The restatement has no impact on the
Group's profit for the period, earnings per share or net asset position.
Fletcher King Plc
Consolidated Interim Statement of Financial Position
as at 31 October 2021
31 October 31 October 30 April
2021 2020 2021
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
Assets
Non-current assets
Property, plant and equipment 8 16 12
Right-of-use asset 136 408 272
Financial assets 529 630 529
673 1,054 813
Current Assets
Trade and other receivables 837 501 1,148
Corporation tax debtor 111 - 111
Cash and cash equivalents 3,096 3,113 2,892
4,044 3,614 4,151
Total assets 4,717 4,668 4,964
Liabilities
Current liabilities
Trade and other payables 647 499 908
Provisions 100 - 100
Current taxation liabilities - - -
Lease liabilities 580 299 577
Total current liabilities 1,327 798 1,585
Non current liabilities
Lease liabilities - 114 -
Shareholders' equity
Share capital 921 921 921
Share premium 140 140 140
Investment revaluation reserve (101) - (101)
Reserves 2,430 2,695 2,419
Total shareholders' equity 3,390 3,756 3,379
Total equity and liabilities 4,717 4,668 4,964
Fletcher King Plc
Consolidated Interim Statement of Changes in Equity
for the 6 months ended 31 October 2021
Investment Profit
Share Share revaluation and TOTAL
capital premium reserve loss EQUITY
£000 £000 £000 £000 £000
Balance at 1 May 2021 921 140 (101) 2,419 3,379
Profit for the period - - - 11 11
Equity dividends paid - - - - -
Balance at 31 October 2021 (Unaudited) 921 140 (101) 2,430 3,390
Balance as at 1 May 2020 921 140 - 3,153 4,214
Loss for the period - - - (412) (412)
Equity dividends paid - - - (46) (46)
Balance at 31 October 2020 (Unaudited) 921 140 95 2,695 3,756
Balance as at 1 May 2020 921 140 - 3,153 4,214
Loss for the year - - (688) (688)
-
Equity dividends paid - - - (46) (46)
Fair value loss on financial assets through other comprehensive income - - (101) - (101)
Balance at 30 April 2021 (Audited) 921 140 (101) 2,419 3,379
Fletcher King Plc
Consolidated Interim Statement of Cash Flows
for the 6 months ended 31 October 2021
6 months ended 6 months ended Year ended
31 October 31 October 30 April
2021 (Unaudited) 2020 (Unaudited) 2021
(Audited)
£000 £000 £000
Cash flows from operating activities
Profit/(loss) before taxation from continuing operations 11 (447) (834)
Adjustments for:
Movement in provision - - 100
Depreciation expense 140 140 281
Investment income - - -
Finance income - (2) (2)
Finance expense 3 9 16
Cash flows from operating activities
before movement in working capital 154 (300) (439)
Decrease/(increase) in trade and other receivables 311 179 (468)
(Decrease)/increase in trade and other payables (261) (190) 219
Cash generated from/(absorbed by) operations 204 (311) (688)
Taxation paid - - -
Net cash flows generated from/(used in) operating activities 204 (311) (688)
Cash flows from investing activities
Investment income - - -
Finance income - 2 2
Net cash flows from investing activities - 2 2
Cash flows from financing activities
Lease payments - (156) -
Dividends paid to shareholders - (46) (46)
Net cash flows from financing activities - (202) (46)
Net increase/(decrease) in cash and cash equivalents 204 (511) (732)
Cash and cash equivalents at start of period 2,892 3,624 3,624
Cash and cash equivalents at end of period 3,096 3,113 2,892
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
22 December 2021.
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 apply for the year
ended 30 April 2022.
The accounting policies applied by the Group in this interim report are the
same as those applied by the Group in the consolidated financial statements
for the year ended 30 April 2021. There are no new standards, interpretations
and amendments, effective for the first time from 1 May 2021, that have had a
material effect on the financial statements of the Group.
3. Non Statutory Accounts
The financial information for the period ended 31 October 2021 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 2021
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 2021 and 31
October 2020 is unaudited.
Fletcher King Plc
Explanatory Notes
4. Earnings per share
6 months to 31 October 2021 6 months to 31 October 2020 Year ended 30 April 2021
Number Number Number
Weighted average number of shares for basic earnings per share 9,209,779 9,209,779 9,209,779
Share options - - -
Weighted average number of shares for diluted earnings per share 9,209,779 9,209,779 9,209,779
£000 £000 £000
11
Earnings for basic and diluted earnings per share: (412) (688)
Basic earnings per share 0.12p (4.47p) (7.47p)
Diluted earnings per share 0.12p (4.47p) (7.47p)
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR FEUEDEEFSELERecent news on Fletcher King
See all newsREG - Fletcher King PLC - Grant of Share Options
AnnouncementREG - Fletcher King PLC - Half-year Report
AnnouncementREG - Fletcher King PLC - Result of AGM
AnnouncementREG - Fletcher King PLC - Holding(s) in Company
AnnouncementREG - Fletcher King PLC - Publication of Report and Accounts
Announcement