FLETCHER KING PLC — Earnings Release 2015

Jul 14, 2015

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RNS Number : 9171S

Fletcher King PLC

14 July 2015

FLETCHER KING PLC

Preliminary Results for the Year Ending 30th April 2015

Highlights

·   Revenue for the year of  £3.380m (2014: £3.653m)

·   Profit before tax of £461,000 (2014: £711,000)

·   Profit after tax of £359,000 (2014: £542,000)

·   Basic and diluted earnings per share of 3.90p (2014: 5.89p)

·   Final dividend of 0.75p per share. An interim dividend of 1.5p per share was paid and therefore the total ordinary dividend for the year will be 2.25p per share (2014: 3.0p)

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

"Whilst the year was perhaps a little disappointing, it was in line with expectation. We have started the new financial year well and we are hopeful of improving our results."

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 £3.38m (2014: £3.65m) with profit before tax of £461,000 (2014: £711,000).

The Board is proposing a final dividend of 0.75p per share (2014: 2.25p). The final dividend is subject to shareholder approval at the AGM and will be paid on 25 September 2015 to those shareholders on the register at close of business on 28 August 2015.  With the interim dividend of 1.50p per share (2014: 0.75p) already paid, the total ordinary dividend for the year will amount to 2.25p per share (2014: 3.0p).

The Commercial Property Market

Surprisingly the market was little affected by the political uncertainty in the run up to the General Election but the return of a majority Conservative Government has added further impetus to an already strong demand.

This demand, from both tenants and investors, is most visible in Central London but it continues to ripple out to the major UK cities.  In our view the stability given to the market by a pro-business majority Government is likely to subsist for the next few years.

The uncertainty in Scotland continues but even so we have seen a pick-up in demand from office tenants even though rents are still significantly below their previous peaks.

Business Overview

As a result of the strong demand for investment property multiple rounds of bidding on properties for sale was the norm which made buying difficult. This affected our revenue and profit before tax which are lower than last year, as I had previously indicated they might be, in the announcement of our interim results on 16 December 2014.  Also in the previous year we had a significant one-off performance fee which did not repeat this year.

Our "SHIPS" funds have been active during the year with the focus remaining in Central London.  The property in Leadenhall Street (SHIPS 14) (which was acquired for circa £9 million in December 2013) has been letting up at rents in excess of forecast and the last phase of the current refurbishment program is nearing completion.  A new property just off Clerkenwell Green was acquired after the year end for a new "SHIPS 15" fund.  The total investment including refurbishment will be circa £8m and it was oversubscribed. Fund management continues to perform well and a number of asset management situations have arisen on the portfolios.

Rating has enjoyed a much better year than last and the Chancellor's message to the Valuation Office to settle 95% of outstanding appeals by July of this year has been implemented.  During the last six months we have cleared much of the backlog which I had previously mentioned, notably a portfolio of 38 Bowling Alleys where we achieved a saving of over £2 million and a Soho office building where approximately £1 million was saved.

The volume of valuations has shown a healthy increase as have the individual fees. The banks have returned to the lending market with a vengeance and there is no sign of this abating.

Outlook

Whilst the year was perhaps a little disappointing it was in line with expectation. We have started the new financial year well and we are hopeful of improving our results. 

Again I must thank our loyal clients and the new ones who have entrusted their work to us.  Also our Directors and staff for their hard work and professionalism.

David Fletcher

Chairman

14 July 2015

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the year ended 30 April 2015

	Note	2015	2014
		£000	£000
Revenue		3,380	3,653
Employee benefits expense		(1,843)	(2,017)
Depreciation expense		(36)	(44)
Other operating expenses		(1,057)	(1,083)
Operating profit		444	509
Profit on disposal of available for sale investments		-	174
Income from investments		4	13
Finance income		13	15
Profit before taxation		461	711
Taxation		(102)	(169)
Profit and total comprehensive income for the year attributable to equity shareholders		359	542
Basic and diluted earnings per share	3	3.90p	5.89p

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 April 2015

	2015	2014
	£000	£000
Assets
Non-current assets
Property, plant and equipment	84	112
Available-for-sale investments	875	750
Deferred tax assets	18	18
	977	880
Current assets
Trade and other receivables	1,149	1,247
Cash and cash equivalents	2,852	3,314
	4,001	4,561
Total assets	4,978	5,441
Liabilities
Current liabilities
Trade and other payables	516	702
Current taxation liabilities	78	123
Other creditors	641	887
	1,235	1,712
Total liabilities	1,235	1,712
Shareholders' equity
Share capital	921	921
Share premium	140	140
Profit and Loss reserve	2,682	2,668
Total shareholders' equity	3,743	3,729
Total equity and liabilities	4,978	5,441

CONSOLIDATED STATEMENT OF CASH FLOWS

for the year ended 30 April 2015

	2015	2014
	£000	£000
Cash flows from operating activities
Profit before taxation from continuing operations	461	711
Adjustments for:
Depreciation expense	36	44
Profit on disposal of available for sale investments	-	(174)
Income from investments	(4)	(13)
Finance income	(13)	(15)
Cash flows from operating activities before movement in working capital		553
480
Decrease in trade and other receivables	98	215
(Decrease)/increase in trade and other payables	(432)	230
Cash generated from operations	146	998
Taxation paid	(147)	(54)
Net cash flows from operating activities	(1)	944
Cash flows from investing activities
Purchase of fixed assets	(8)	(15)
Purchase of investments	(125)	(750)
Sale of investments	-	674
Finance income	13	15
Income from investments	4	13
Net cash flows from investing activities	(116)	(63)
Cash flows from financing activities
Dividends paid to shareholders	(345)	(138)
Net cash flows from financing activities	(345)	(138)
Net (decrease)/increase in cash and cash equivalents	(462)	743
Cash and cash equivalents at start of year	3,314	2,571
Cash and cash equivalents at end of year	2,852	3,314

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 30 April 2015

	Note	Share capital	Share premium	Profit and loss reserve	TOTAL EQUITY
		£000	£000	£000	£000
Balance at 1 May 2013		921	140	2,264	3,325
Total comprehensive income for the year		-	-	542	542
Equity dividends paid	2	-	-	(138)	(138)
Balance at 30 April 2014		921	140	2,668	3,729
Total comprehensive income for the year		-	-	359	359
Equity dividends paid	2	-	-	(345)	(345)
Balance at 30 April 2015		921	140	2,682	3,743

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 statutory financial statements for the year ended 30 April 2015.  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) as adopted by the European Union, this announcement does not itself contain sufficient information to comply with IFRSs. Statutory financial statements for the previous financial year ended 30 April 2014 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 2015 have not yet been delivered to the Registrar of Companies, nor have the auditors yet reported on them.

2.  Dividends

Year ended 30 April	2015	2014
	£000	£000
Equity dividends on ordinary shares:
Declared and paid during year
Ordinary final dividend for the year ended 30 April 2014: 2.25p per share (2013:  0.75p)	207	69
Interim dividend for the year ended 30 April 2015: 1.50p  per share (2014: 0.75p)	138	69
	345	138
Proposed ordinary final dividend for the year ended 30 April 2015: 0.75p per share	69

3. Earnings per share

	2015 No	2014 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	359	542
Basic and diluted earnings per share	3.90p	5.89p

This information is provided by RNS

The company news service from the London Stock Exchange

END

FR RJMATMBIBBMA

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