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

Fletcher KingAnnouncement

16/12/2015 07:10

RNS Number : 1781J
Fletcher King PLC
16 December 2015
FLETCHER KING PLC
Interim Results for the 6 months ended 31 October 2015
Financial Highlights
 Turnover : 2,963,000 (2014: 1,828,000)
 PBT : 1,187,000 (2014: 293,000)
 EPS : 10.26p per share (2014: 2.51p per share)
 Dividend : 1.00p per share (2014: 1.50p per share)
Operational Highlights
 The Market - The central London market continues to be strong with demand now rippling out to the M3/M4 corridor and the major provincial centres.
 Fund Management and Investment - The sale of the property in Leadenhall Street, in which the company co-invested and acted as advisor, has delivered exceptional returns for the business this half.
 Valuation and Rating - The volume of rates appeals settled has slowed but this has been offset by a noticeable increase in bank valuation instructions.
Commenting on the results David Fletcher, Chairman of Fletcher King said:
"We are very pleased with the results. Our prospects going forward look satisfactory although performance will be more in line with previous periods than the exceptional performance of this first half year".
ENQUIRIES:
Fletcher King Plc
David Fletcher
Tel: 020 7493 8400
Cairn Financial Advisers LLP (Nomad)
James Caithie
Tel: 020 7148 7900
The interim results are available on the Company's website: www.fletcherking.co.uk


CHAIRMAN'S STATEMENT
Results
Turnover for the period was 2.96m (2014: 1.83m) with a profit before tax of 1,187,000 (2014: 293,000). Your directors paid a special dividend of 8p per share on 25 September 2015 (together with the previously declared final dividend of 0.75p per share) and have declared an interim dividend of 1.0p per share (2014: 1.5p) to be paid on 19 February 2016 to Shareholders on the register at the close of business on 22 January 2016.
The Commercial Property Market
Over the last twelve months total returns from the commercial property market have exceeded 15% and the market has enjoyed its 10th consecutive quarter of increased values.
Whilst Central London continues to be in very strong demand, focus is shifting to major centres in the regions and the M3/M4 corridor. However it is worth noting that the London office market is ten times larger than its nearest rival and twice as large as the combined total of the UK's big six regional cities.
Although headlines tend to focus on the amount of overseas money coming into the UK, it should be remembered that since the start of the recovery in 2009 UK institutions have been net purchasers in 21 out of 24 quarters.
Whilst the recent rate of rent and capital growth is unlikely to continue we believe the market will remain strong over the next 2-3 years.
Business Overview
Our exceptional performance this half year is primarily the result of 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 sale of the property and the payment of a special dividend of 8p per share was announced on 1 September 2015.
The underlying business is doing well. The volume of instructions on valuation and investment sales has increased and we are about to take on more property management. In May, the company invested 752,500 in a new property investment syndicate (SHIPS 15) that acquired freehold office premises in Clerkenwell, London. There remains strong demand amongst SHIPS members to invest in further suitable property.
Outlook
The strong performance in the first half of the year will not be repeated in the second half. Underlying performance remains steady and whilst there are a number of investment transactions in the pipeline, a proportion may not complete before the end of the financial year.
DAVID FLETCHER
CHAIRMAN
15 December 2015


Fletcher King Plc
Consolidated Interim Statement of Comprehensive Income 
for the 6 months ended 31 October 2015

6 months ended

6 months ended

Year ended

31 October

31 October

30 April

2015
(Unaudited)

2014
(Unaudited)

2015 (Audited)

000

000

000






Revenue
2,963

1,828

3,380
Employee benefits expense
(1,754)

(968)

(1,843)
Depreciation expense
(17)

(19)

(36)
Other operating expenses
(610)

(559)

(1,057)






Operating profit
582

282

444






Profit on sale of available for sale investments
590

-

-
Income from investments
10

4

4
Finance income
5

7

13
Profit before taxation
1,187

293

461






Taxation
(242)

(62)

(102)






Profit for the period
945

231

359






Total comprehensive income for the period
945

231

359






Basic and diluted earnings per share (note 4)





Continuing operations
10.26p

2.51p

3.90p






Dividends per share





Interim dividend proposed
1.00p

1.50p

-
Dividends paid
8.75p

2.25p

3.75p


Fletcher King Plc
Consolidated Interim Statement of Financial Position 
as at 31 October 2015


31 October 

31 October 

30 April


2015
(Unaudited)

2014
(Unaudited)

2015
(Audited)


000

000

000







Assets






Non-current assets






Property, plant and equipment

67

93

84
Available for sale investments

752

875

875
Deferred tax assets

18

18

18
















837

986

977














Current Assets






Trade and other receivables

838

1,394

1,149
Cash and cash equivalents

4,070

2,338

2,852
















4,908

3,732

4,001














Total assets

5,745

4,718

4,978





















Liabilities






Current liabilities






Trade and other payables

1,096

410

516
Current taxation liabilities

337

185

78
Other creditors 

430

370

641














Total liabilities

1,863

965

1,235





















Shareholders' equity






Share capital

921

921

921
Share premium

140

140

140
Reserves

2,821

2,692

2,682














Total shareholders' equity

3,882

3,753

3,743














Total equity and liabilities

5,745

4,718

4,978









Fletcher King Plc
Consolidated Interim Statement of Changes in Equity 
for the 6 months ended 31 October 2015






Profit





Share

Share

and


TOTAL


capital

premium

loss


EQUITY


000

000

000


000










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 2014

921

140

2,668


3,729




















Total comprehensive income for the period

 - 

 - 

231


231
Equity dividends paid

 - 

 -

(207)


(207)










Balance at 31 October 2014 (Unaudited)

921

140

2,692


3,753




















Balance at 1 May 2014

921

140

2,668


3,729










Total comprehensive income for the period

 - 

 - 

359


359
Equity dividends paid

 - 

 - 

(345)


(345)










Balance at 30 April 2015 (Audited)

921

140

2,682


3,743


Fletcher King Plc
Consolidated Interim Statement of Cash Flows
for the 6 months ended 31 October 2015


6 months ended

6 months ended

Year ended


31 October

31 October

30 April


2015 (Unaudited)

2014 (Unaudited)

2015 
(Audited)


000

000

000







Cash flows from operating activities






Profit before taxation from continuing operations
1,187

293

461
Adjustments for:






Depreciation expense

17

19

36
Profit on sale of investments

(590)

-

-
Income from investments

(10)

(4)

(4)
Finance income

(5)

(7)

(13)







Cash flows from operating activities






before movement in working capital

599

301

480






Decrease/(increase) in trade and other receivables
311

(147)

98
(Decrease)/increase in trade and other payables
369

(809)

(432)







Cash (absorbed)/generated from operations

1,279

(655)

146
Taxation received/(paid)

17

-

(147)







Net cash flows from operating activities

1,296

(655)

(1)







Cash flows from investing activities






Purchase of fixed assets

-

-

(8)
Purchase of investments

(752)

(125)

 (125)
Sale of investments

1,465

-

-
Finance income

5

7

13
Income from investments

10

4

4







Net cash flows from investing activities

728

(114)

(116)







Cash flows from financing activities






Dividends paid to shareholders

(806)

(207)

(345)







Net cash flows from financing activities

(806)

(207)

(345)
Net increase/(decrease) in cash and cash equivalents

1,218

(976)

(462)
Cash and cash equivalents at start of period
2,852

3,314

3,314
Cash and cash equivalents






at end of period

4,070

2,338

2,852


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 15 December 2015.
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 2016.
The accounting policies applied are consistent with those of the annual financial statements for the year ended 30 April 2015. There are no new standards interpretations and amendments, effective for the first time from 1 May 2015, 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 2015 set out in this interim report does not constitute the Group's statutory accounts for that period. The statutory accounts for the year ended 30 April 2015 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 2015 and 31 October 2014 is unaudited.
4 Earnings per share 

6 months to 31 October 2015
Number
6 months to 31 October 2014
Number
Year ended 30 April 2015
Number
Weighted average number of shares for basic 
and diluted earnings per share.
9,209,779
9,209,779
9,209,779









000
000
000
Earnings for basic and diluted earnings per share: 



Continuing Operations
945
231
359




Basic and diluted earnings per share
10.26p
2.51p
3.90p

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