FISKE PLC — Interim / Quarterly Report 2015

Feb 13, 2015

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RNS Number : 8037E

Fiske PLC

13 February 2015

13 February 2015

Fiske Plc

('Fiske' or 'the Company')

Interim Results

Fiske Plc (the 'Company') announces its interim results for the six months ended 30 November 2014. In accordance with rule 26 of the AIM Rules for Companies this information is also available, under the Investors section, at the Company's website, http://www.fiskeplc.com .

For further information please contact:

• Salmaan Khawaja/Richard Tonthat, Grant Thornton UK LLP (Nominated Adviser)

(tel: 020 7383 5100)

• Gerard Luchini, Fiske Plc - Compliance Officer

(tel: 020 7448 4700)

Chairman's Statement

We have experienced a disappointing half year with a pre tax loss of £165,000.  This is partly the result of relatively dull and inactive markets, as has been demonstrated by our competitors, but we have in the past been both nimble and lean enough to counteract outside influences and this we have failed to do.

Our institutional business, which we value highly but remains a relatively small part of our revenue, suffered from two factors. Firstly an institutional team, which joined us two and a half years ago left at the beginning of the half year. Secondly, the commission rate on institutional business has been reducing and has roughly halved over the past twelve months under the twin influences of regulation and competition.  The outlook in this area is not encouraging, but we expect our small team to continue to make a contribution.

We have invested considerable management time in the process of a major systems upgrade.  Whilst this is a noticeable distraction from day to day stockbroking, it is an essential step to enable us to expand our key business of wealth management and private client stockbroking.  This process will continue for most of the current calendar year, but we expect our upgraded front office systems to provide a much improved service to our clients, to bring in house some of our outsourced activities and enable us to attract new private client stockbrokers to the firm.  Wealth management is our core business and we intend to ensure that we can expand this profitably in the future.

Looking at the wider investment scene, both national and international, it appears that the performance of economies and in particular of corporate entities has become of less importance in determining market movements as the relative importance of the behaviour of Central Banks increases.  This is an economic anomaly on a par with the belief in the late 1990's that markets would never fall due to the "Greenspan put".  That fallacy exploded in 2001. Ultimately earnings and dividends determine share prices, but Quantitative Easing, the euphemism for printing money, can distort matters for some time as we have recently experienced. Last October as the US was ending Quantitative Easing, the markets were apprehensive. The Japanese then launched a massive new stimulus.  Now the European Central Bank believes it is its turn.  The truth is that all panacea lose their power when they become repetitive and the anticipation and announcement have more impact than the protracted execution.  The fact that the Swiss National Bank was forced to abandon its cap was clear proof that the bond market is ultimately more powerful than Central Banks. Current market levels are not justified on historical parallels, either earnings need to increase substantially, a questionable outcome, or we are vulnerable to a major setback. 

We retain a solid balance sheet. We note that our major investment in the shares of Euroclear continues to prosper and we have considerable confidence in both its short and medium term performance.  We view our own future with confidence and accordingly we will maintain our current modest dividend level of 0.25p per share which will be paid out of reserves.

C F Harrison Chairman

12 February 2015

Consolidated Statement of Comprehensive Income

for the six months ended 30 November 2014

		Six months ended 30 November 2014 Unaudited	Six months ended 30 November 2013 Unaudited	Year ended 31 May 2014             Audited
		£'000	£'000	£'000
Fee and commission income		1,559	2,061	4,178
Fee and commission expenses		(301)	(532)	(1,139)
Net fee and commission income		1,258	1,529	3,039
Other income		60	102	132
Total revenue		1,318	1,631	3,171
Profit on investments held for trading		3	3	3
Operating expenses		(1,497)	(1,472)	(3,061)
Operating (loss)/profit		(176)	162	113
Investment revenue		7	66	134
Finance income		10	12	22
Finance costs		(3)	(1)	(1)
(Loss)/profit on ordinary activities before taxation		(162)	239	268
Taxation		27	(37)	(37)
(Loss)/profit on ordinary activities after taxation		(135)	202	231
Other comprehensive income/(expense)
Movement in unrealised appreciation of investments		68	115	69
Deferred tax on movement in unrealised appreciation of investments		(11)	(23)	(10)
Net other comprehensive (expense)/ income		57	92	59
Total comprehensive (loss)/income for the period/year attributable to equity shareholders		(78)	294	290
Earnings per ordinary share (pence), excluding other comprehensive income
Basic		(1.6)p	2.4p	2.7p
Diluted		(1.6)p	2.4p	2.7p

All results are from continuing operations and are attributable to equity shareholders of the parent company.

Consolidated Statement of Changes in Equity

	Share Capital	Share Premium	Revaluation Reserve	Retained Earnings	Total Equity
	£'000	£'000	£'000	£'000	£'000
Balance at 1 December 2013	2,115	1,222	1,294	540	5,171
Profit on ordinary activities after taxation	-	-	-	29	29
Other comprehensive income	-	-	(33)	-	(33)
Total comprehensive income for period	-	-	(33)	29	(4)
Dividends paid	-	-	-	(30)	(30)
Balance at 31 May 2014	2,115	1,222	1,261	539	5,137
Loss on ordinary activities after taxation	-	-	-	(135)	(135)
Other comprehensive income	-	-	57	-	57
Total comprehensive income for period	-	-	57	(135)	(78)
Dividends paid	-	-	-	(31)	(31)
Balance at 30 November 2014	2,115	1,222	1,318	373	5,028

Consolidated Statement of Financial Position

30 November 2014

		As at 30 November 2014 Unaudited	As at 30 November 2013 Unaudited	As at 31 May 2014 Audited
		£'000	£'000	£'000
Non-current assets
Goodwill		395	395	395
Property, plant and equipment		38	41	35
Available-for-sale investments		2,438	2,411	2,365
Total non-current assets		2,871	2,847	2,795
Current assets
Trade and other receivables		2,923	12,080	5,810
Investments held for trading		90	282	124
Cash and cash equivalents		3,485	3,395	3,957
Total current assets		6,498	15,757	9,891
Current liabilities
Trade and other payables		4,020	13,033	7,211
Current tax liabilities		11	90	38
Total current liabilities		4,031	13,123	7,249
Net current assets		2,467	2,634	2,642
Non-current liabilities
Deferred tax liabilities		310	310	300
Total non-current liabilities		310	310	300
Net assets		5,028	5,171	5,137
Equity
Share capital		2,115	2,115	2,115
Share premium		1,222	1,222	1,222
Revaluation reserve		1,318	1,294	1,261
Retained earnings		373	540	539
Shareholders' equity		5,028	5,171	5,137

Consolidated Cash Flow Statement

For the six months ended 30 November 2014

	Six months ended 30 November 2014 Unaudited	Six months ended 30 November 2013 Unaudited	Year ended 31 May 2014 Audited
	£'000	£'000	£'000
Operating (loss)/profit	(176)	162	113
Depreciation of property plant and equipment	12	13	27
Decrease/(increase) in investments held for trading	34	(247)	(89)
Decrease/(increase) in receivables	2,887	434	6,704
(Decrease)/increase in payables	(3,190)	263	(5,560)
Cash (used in)/ generated from operations	(433)	625	1,195
Tax paid	-	(1)	(50)
Net cash (used in)/generated from operating activities	(433)	624	1,145
Investing activities
Interest received	10	12	22
Investment income received	7	66	134
Interest paid	(5)	(1)	-
Purchases of available-for-sale investments	(5)	-	-
Purchases of property, plant and equipment	(16)	(16)	(24)
Net cash (used in)/ generated from investing activities	(9)	61	132
Financing activities
Dividends paid	(30)	(21)	(51)
Net cash used in financing activities	(30)	(21)	(51)
Net (decrease)/ increase in cash and cash equivalents	(472)	664	1,226
Cash and cash equivalents at beginning of period	3,957	2,731	2,731
Cash and cash equivalents at end of period/year	3,485	3,395	3,957

Notes to the Interim Financial Statements

1.        Basis of preparation

The financial information contained in this half-yearly financial report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006.

The figures and financial information for the period ended 31 May 2014 are extracted from the latest published audited financial statements of the Group and do not constitute the statutory financial statements for that period. The audited financial statements for the period ended 31 May 2014 have been filed with the Registrar of Companies. The report of the independent auditors on those financial statements contained no qualification or statement under section 498(2) or section 498(3) of the Companies Act 2006.

The condensed set of financial statements has been prepared using accounting policies consistent with International Financial Reporting Standards (IFRSs) as adopted by the European Union. The financial information has been prepared under the historical cost convention, except for the revaluation of certain financial instruments. The same accounting policies, presentation and methods of computation are followed in these condensed set of financial statements as applied in the Group's latest, and intends to use in preparing its next, annual audited financial statements. While the financial figures included in this half-yearly report have been computed in accordance with IFRSs applicable to interim periods, this half-yearly report does not contain sufficient information to constitute an interim financial report as that term is defined in IAS 34.

The directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing this half-yearly financial report.

2.        Taxation

The tax charge for the six months to 30 November 2014 reflects all the necessary provisions for current tax, taking into account the availability of losses brought forward, and movements in deferred tax. In arriving at the effective tax rate account has been taken of the change in the rate of tax charged and the disallowance of the cost of share-based payments charged to the consolidated statement of comprehensive income.

3.        Dividends paid

Dividends paid of £30,000 (2013 - £21,000) refer to the second interim dividend paid for the preceding year.

The Interim dividend of 0.25p will be paid on 20 March 2015 to shareholders on the register on 27 February 2015. The shares will be marked ex-dividend on 26 February 2015.

This information is provided by RNS

The company news service from the London Stock Exchange

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