TIDMFLK
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: GBP1,426,000 (2020 restated: GBP909,000)
Earnings before tax: GBP11,000 (2020: GBP477,000 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 GBP1,426,000 (2020 restated:
GBP909,000) with a profit before tax of GBP11,000 (2020: loss of
GBP447,000).
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
Restated*
6 months 6 months
ended ended Year ended
31 October 31 October 30 April
2021 2020
(Unaudited) (Unaudited) 2021 (Audited)
GBP000 GBP000 GBP000
------------------------------------- ------------- --- ------------- --- ---------------
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)
------------- --- ------------- --- ---------------
Profit/(loss) before taxation 11 (447) (834)
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 GBP0.04m. 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)
GBP000 GBP000 GBP000
-------------------------------- ------------- ------------- -----------
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
GBP000 GBP000 GBP000 GBP000 GBP000
------------------------------ ------------- ------------- ------------ ------- -------
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 6 months
ended ended Year ended
31 October 31 October 30 April
2021
2021 (Unaudited) 2020 (Unaudited) (Audited)
GBP000 GBP000 GBP000
------------------------------------- ----------------- ----------------- -----------
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 6 months Year ended
to 31 October to 31 October 30 April
2021 2020 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
=============== =============== ============
GBP000 GBP000 GBP000
--------------- --------------- ------------
Earnings for basic and diluted earnings
per share: 11 (412) (688)
=============== =============== ============
Basic earnings per share 0.12p (4.47p) (7.47p)
Diluted earnings per share 0.12p (4.47p) (7.47p)
=============== =============== ============
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