FLETCHER KING PLC — Earnings Release 2013

Jul 9, 2013

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RNS Number : 8547I

Fletcher King PLC

09 July 2013

FLETCHER KING PLC

Preliminary Results for the Year Ending 30th April 2013

Highlights

·   Revenue for the year of  £3.031 m (2012: £3.105m)

·   Profit before tax £292,000 (2012: £395,000)

·   Profit for the year of £227,000  (2012: £280,000)

·   Basic and diluted earnings per share of 2.46p (2012: 3.04p)

·   Final dividend of 0.75p per share. An interim dividend of 0.75p per share was paid and therefore the total ordinary dividend for the year will be 1.5p per share (2012: 1.5p)

Commenting on the results, David Fletcher, chairman of Fletcher King plc said:

"We consider the results for the year to be satisfactory given the current economic circumstances and in light of our comments contained in the trading statement issued on 22 April 2013. Whilst we remain cautious we believe that the coming year will see some improvement in the UK property market generally.

We will continue to strive for an increase in our recurring income received from property fund and asset management whilst at the same time seeking opportunities to enhance our transactional business.

As the market improves overheads will come under pressure and these will be carefully monitored.

I would like to thank our clients for their continued support and our hard working staff and directors for all their efforts."

END

For further information, please call:

David Fletcher/ Peter Bailey, Fletcher King           020 7493 8400

James Caithie, Cairn Financial Advisers LLP           020 7148 7900

Chairman's Statement

Results

Revenue for the year was £3.03m (2012: £3.11m) with profits before tax of £292,000 (2012: £395,000)

The board is proposing a final dividend of 0.75p per share (2012: 0.75p). The final dividend is subject to shareholder approval at the AGM and will be paid on 26 September 2013 to those shareholders on the register at close of business on 30 August 2013.  With the interim of 0.75p per share (2012: 0.75p) already paid, the total ordinary dividend for the year will amount to 1.5p per share (2012: 1.5p).

The board consider the results for the year to be satisfactory bearing in mind the continuing difficult economic and market conditions under which the Company has been operating.

The Commercial Property Market

The commercial property market continues to be polarised between London, the South East and the remainder of the country.  By the time of our AGM the UK property market will be six years into the recession and following an almost 50% drop in values only central London shops are back to their early 2007 prices and some properties outside London continue to decline in value.

Having said that there are some signs of green shoots appearing. We have just let two floors of a central Glasgow office building that have been empty for over three years. The rents have halved but at least some tenant demand has returned.

In the investment market there are positive signs of a greater allocation of funds to the property sector as Institutions question the likely returns from gilts and equities. Some sectors of the secondary market are seeing value increases as investors seek higher yields.

Industrial property continues to let throughout the country but retail demand remains very patchy as does tenant interest for out of town offices. Whilst tenant demand in Central London is reasonably strong, volumes are low and decision making is slow.

Business Overview

Investment transactions have been disappointing, particularly in the second half as highlighted in the trading statement of 22 April. A number of transactions that we hoped would have been agreed by the year end failed to materialise.

We started the new financial year with some good sales instructions and overall we expect our business in this sector to improve but it will not be without its difficulties.

Fund Management is progressing well and the regular quarterly fee income from this and Asset Management is of immense value to the business.

Rating had a good year with some significant appeals won.

The number of Bank valuations increased and although it is a very competitive market we see no reason why this should not continue.

Outlook

Whilst we remain cautious we believe that the coming year will see some improvement in the UK property market generally.

We will continue to strive for an increase in our recurring income received from property fund and asset management whilst at the same time seeking opportunities to enhance our transactional business.

As the market improves overheads will come under pressure, and as ever these will be carefully monitored.

I would like to thank our clients for their continued support and our hard working staff and directors for all their efforts.

David Fletcher

9 July 2013

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the year ended 30 April 2013

	Note	2013	2012
		£000	£000
Revenue		3,031	3,105
Employee benefits expense		(1,641)	(1,673)
Depreciation expense		(43)	(46)
Other operating expenses		(1,085)	(1,012)
Operating profit		262	374
Income from investments		11	11
Finance income		19	10
Profit before taxation		292	395
Taxation		(65)	(115)
Profit for the year		227	280
Other comprehensive income for the year, net of tax		-	-
Total comprehensive income for the year attributable to equity shareholders		227	280
Basic and diluted earnings per share	3	2.46p	3.04p

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 April 2013

		2013	2012
		£000	£000
Assets
Non-current assets
Property, plant and equipment		141	180
Available-for-sale investments		500	500
Deferred tax assets		63	63
		704	743
Current assets
Trade and other receivables		1,462	892
Cash and cash equivalents		2,571	2,812
		4,033	3,704
Total assets		4,737	4,447
Liabilities
Current liabilities
Trade and other payables		810	576
Current taxation liabilities		53	59
Other creditors		549	576
		1,412	1,211
Total liabilities		1,412	1,211
Shareholders' equity
Share capital		921	921
Share premium		140	140
Profit and Loss reserve		2,264	2,175
Total shareholders' equity		3,325	3,236
Total equity and liabilities		4,737	4,447

CONSOLIDATED STATEMENT OF CASH FLOWS

for the year ended 30 April 2013

		2013	2012
		£000	£000
Cash flows from operating activities
Profit before taxation from continuing operations		292	395
Adjustments for:
Depreciation expense		43	46
Income from investments		(11)	(11)
Finance income		(19)	(10)
Cash flows from operating activities before movement in working capital		305	420
(Increase)/decrease in trade and other receivables		(570)	172
Increase in trade and other payables		207	32
Cash absorbed by/generated from operations		(58)	624
Taxation paid		(71)	(167)
Net cash flows from operating activities		(129)	457
Cash flows from investing activities
Purchase of fixed assets		(4)	-
Purchase of investments		-	(250)
Finance income		19	10
Income from investments		11	11
Net cash flows from investing activities		26	(229)
Cash flows from financing activities
Dividends paid to shareholders		(138)	(138)
Net cash flows from financing activities		(138)	(138)
Net decrease in cash and cash equivalents		(241)	90
Cash and cash equivalents at start of year		2,812	2,722
Cash and cash equivalents at end of year		2,571	2,812

STATEMENT OF CHANGES IN EQUITY

For the year ended 30 April 2013

CONSOLIDATED	Note	Share capital	Share premium	Profit and loss reserve	TOTAL EQUITY
		£000	£000	£000	£000
Balance at 1 May 2011		921	140	2,033	3,094
Total comprehensive income for the year		-	-	280	280
Equity dividends paid	2	-	-	(138)	(138)
Balance at 30 April 2012		921	140	2,175	3,236
Total comprehensive income for the year		-	-	227	227
Equity dividends paid		-	-	(138)	(138)
	2
Balance at 30 April 2013		921	140	2,264	3,325

NOTES

1. Basis of preparation

The financial information set out above, which has been prepared on the basis of the accounting policies as set out in the prior year's accounts, does not comprise the company's financial statements for the year ended 30 April 2013.  While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRSs), this announcement does not itself contain sufficient information to comply with IFRSs. Statutory financial statements for the previous financial year ended 30 April 2012 have been delivered to the Registrar of Companies. The auditors' report on those financial statements was unqualified and did not contain any statement under section 498(2) or (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 2013 have not yet been delivered to the Registrar of Companies, nor have the auditors yet reported on them.

2.  Dividends

Year ended 30 April	2013	2012
	£000	£000
Equity dividends on ordinary shares:
Declared and paid during year
Ordinary final dividend for the year ended 30 April 2012: 0.75p per share (2011:  0.75p)	69	69
Interim dividend for the year ended 30 April 2013: 0.75p  per share (2012: 0.75p)	69	69
	138	138
Proposed ordinary final dividend for the year ended 30 April 2012: 0.75p per share	69

3. Earnings per share

	2013 No	2012 No
Weighted average number of shares for basic and diluted earnings per share	9,209,779	9,209,779
	£000	£000
Earnings for basic and diluted earnings per share	227	280
Basic and diluted earnings per share	2.46p	3.04p

This information is provided by RNS

The company news service from the London Stock Exchange

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