TIDMFLK
RNS Number : 5369X
Fletcher King PLC
21 December 2023
FLETCHER KING PLC
("Flecther King" or the "Company")
Interim Results for the 6 months ended 31 October 2023
Financial Highlights
Turnover: GBP1,326,000 (2022: GBP1,338,000)
Earnings before GBP50,000 (2022: GBP32,000)
tax:
Basic EPS: 0.33p per share (2022: 0.23p per
share)
Dividend proposed: nil (2022: nil)
Operational Highlights
-- Earnings before tax improved slightly on the comparative period last year.
-- The moribund commercial property market has continued to
weigh on transactional fee income but new property management
instructions have supported growth in recurring fee income.
-- Anthony Ferguson joined on 1 November 2023 to launch a new
Planning specialism unit within the business. This will provide
complementary property services to existing and new clients for
which there is a good pipeline of work.
Commenting on the results David Fletcher, Chairman of Fletcher
King said:
"Against a backdrop of extremely challenging property market
conditions, it is pleasing to report profitable performance for the
period, with overall results being slightly ahead of last year.
Capital markets are likely to remain subdued for a while yet, but
with some good instructions in the pipeline and a focus on
improving non-transactional revenues, there are grounds for
optimism that this will translate into business growth and
development in due course."
This announcement contains inside information for the purposes
of the UK Market Abuse Regulation and the Directors of the Company
are responsible for the release of this announcement.
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 GBP1,326,000 (2022: GBP1,338,000)
with a profit before tax of GBP50,000 (2022: GBP32,000).
Dividend
In view of the continued uncertainty and the low level of
profit, the Board is not declaring an interim dividend (2022: no
interim dividend).
The Commercial Property Market
Very little has changed overall in the market since my year end
statement in August 2023 and the drift in values has continued over
the second half of 2023 as high interest rates and continuing
economic and political uncertainties have taken their toll on the
commercial property market. Capital values across the market have
declined by a further 3% over the last six months, with offices
declining by nearly 10% over the same period. Over 12 months to the
end of October, values have fallen by nearly 13% and the net
initial yield on all property is currently 5.5%.
Investors are currently adopting a 'wait and see' attitude
although there is some evidence that the market could be near the
bottom and that 2024 could see a bounce in the markets. There will
undoubtedly be some interesting opportunities over the next year
for the brave investor.
On the occupational side there is some activity in the three
major sectors, particularly in the industrial sector albeit at a
much reduced level compared to pre Covid, and rents are generally
static.
Offices continue to suffer and rents are coming under increasing
pressure as hybrid working is proving to be more enduring and
becoming the norm. However, in specific sub-sectors where there is
a scarcity of grade A space such as central London and major
regional cities, demand is still strong and there is some rental
growth.
Retail space continues to come under severe pressure and rents
continue their decline.
The Board is hopeful that 2024 will herald the beginning of the
upturn although the political uncertainties may prolong
inactivity.
Business Overview
I am pleased that, despite this very difficult market, we are
again reporting a profit.
We have had strong performance in Property Asset and Fund
Management and have secured new instructions. There has also been
activity in our existing portfolios.
The performance of the valuation team has been encouraging and
we are expanding the team as new clients have been added during the
year.
A number of sizeable Rating appeals are ongoing but overall
there are still huge challenges securing the attention of the
Valuation Office Agency (VOA) to negotiate settlements. Potentially
the situation could deteriorate in 2024 when the VOA will be
commencing preparation of the 2026 Rating List which will
inevitably diminish resources allocated to clearing outstanding
appeals.
Investment transaction activity has been disappointing as a
result of the poor investment market conditions mentioned
above.
Outlook
Yet again it continues to be impossible to accurately predict
the future of the property market and the timing of its recovery.
With a focus on improving non-transactional fee income, our
activities are healthy and growing and we look forward to a
reinvigorated capital market.
We are pleased to announce an expansion of the business with the
appointment of Anthony Ferguson (Member of Royal Town Planning
Institute) to head up our newly created Planning specialism. We
have been working with Anthony for a number of years and we are
delighted to have him joining us. There is a significant pipeline
of planning work to be done.
Our balance sheet continues to remain strong, as does the
relationships we have with our long standing clients.
As always our team have worked hard in these difficult
conditions and we thank them for their efforts.
DAVID FLETCHER
CHAIRMAN
20 December 2023
Fletcher King Plc
Consolidated Interim Statement of Profit or Loss and
Comprehensive Income
for the 6 months ended 31 October 2023
6 months 6 months
ended ended Year ended
31 October 31 October 30 April
2023 2022
(Unaudited) (Unaudited) 2023 (Audited)
GBP000 GBP000 GBP000
------------------------------------- -------------- -------------- ---------------
Revenue 1,326 1,338 3,079
Employee benefits expense (764) (744) (1,704)
Depreciation and amortisation
expense (97) (99) (197)
Other operating expenses (470) (496) (1,064)
Other operating income 27 26 51
Share based payment expense (9) (9) (17)
(1,313) (1,322) (2,931)
Investment income 7 24 42
Finance income 37 2 21
Finance expense (7) (10) (19)
-------------- -------------- ---------------
Profit before taxation 50 32 192
Taxation (16) (8) 41
-------------- -------------- ---------------
Profit for the period 34 24 233
-------------- -------------- ---------------
Other comprehensive income
Fair value loss on financial
assets through other comprehensive
income - - (44)
Total comprehensive income
for the period 34 24 189
-------------- -------------- ---------------
Earnings per share (note 4)
- Basic 0.33p 0.23p 2.27p
- Diluted 0.30p 0.21p 2.09p
Dividends per share
Interim dividend proposed - - -
Dividends paid 0.75p 0.50p 0.50p
Fletcher King Plc
Consolidated Interim Statement of Financial Position
as at 31 October 2023
31 October 31 October 30 April
2023 2022 2023
(Unaudited) (Unaudited) (Audited)
GBP000 GBP000 GBP000
-------------------------------- -------------- -------------- -----------
Assets
Non-current assets
Software 53 69 61
Property, plant and equipment 173 237 205
Right-of-use asset 321 436 378
Financial assets 485 529 485
Deferred tax asset 57 24 73
1,089 1,295 1,202
Current Assets
Trade and other receivables 1,242 1,346 1,553
Cash and cash equivalents 2,606 2,418 2,755
3,848 3,764 4,308
Total assets 4,937 5,059 5,510
Liabilities
Current liabilities
Trade and other payables 419 567 901
Lease liabilities 141 154 141
Total current liabilities 560 721 1,042
Non current liabilities
Lease liabilities 229 329 286
Shareholders' equity
Share capital 1,025 1,025 1,025
Share premium 522 522 522
Investment revaluation reserve (145) (101) (145)
Share option reserve 36 19 27
Reserves 2,710 2,544 2,753
Total shareholders' equity 4,148 4,009 4,182
Total equity and liabilities 4,937 5,059 5,510
Fletcher King Plc
Consolidated Interim Statement of Changes in Equity
for the 6 months ended 31 October 2023
Investment Share
Share Share revaluation Option Retained TOTAL
capital premium reserve Reserve earnings EQUITY
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
--------------------------- ------------- ------------- ------------ -------- --------- -------
Balance at 1
May 2023 1,025 522 (145) 27 2,753 4,182
Profit for the
period - - - - 34 34
Equity dividends
paid - - - - (77) (77)
Share based payment
expense - - - 9 - 9
---------------------------- ------------- ------------- ------------ -------- --------- -------
Balance at 31
October 2023 (Unaudited) 1,025 522 (145) 36 2,710 4,148
============================ ============= ============= ============ ======== ========= =======
Balance at 1
May 2022 1,025 522 (101) 10 2,571 4,027
Profit for the
period - - - - 24 24
Equity dividends
paid - - - - (51) (51)
Share based payment
expense - - - 9 - 9
---------------------------- ------------- ------------- ------------ -------- --------- -------
Balance at 31
October 2022 (Unaudited) 1,025 522 (101) 19 2,544 4,009
============================ ============= ============= ============ ======== ========= =======
Balance at 1
May 2022 1,025 522 (101) 10 2,571 4,027
Profit for the
year - - - - 233 233
Fair value loss
on financial assets
through - - (44) - - (44)
other comprehensive
income
Share based payment
expense - - - 17 - 17
Equity dividends
paid - - - - (51) (51)
Balance at 30
April 2023 (Audited) 1,025 522 (145) 27 2,753 4,182
============================ ============= ============= ============ ======== ========= =======
Fletcher King Plc
Consolidated Interim Statement of Cash Flows
for the 6 months ended 31 October 2023
6 months 6 months
ended ended Year ended
31 October 31 October 30 April
2023
2023 (Unaudited) 2022 (Unaudited) (Audited)
GBP000 GBP000 GBP000
---------------------------------- ------------------ ------------------ -----------
Cash flows from operating
activities
Profit before taxation from
continuing operations 50 32 192
Adjustments for:
Movement in provision - (25) (25)
Depreciation and amortisation
expense 97 99 197
Investment income (7) (24) (42)
Finance income (37) (2) (21)
Finance expense 7 10 19
Share based payment expense 9 9 17
Cash flows from operating
activities
before movement in working
capital 119 99 337
Decrease/(increase) in trade
and other receivables 311 (17) (224)
(Decrease)/increase in trade
and other payables (482) (557) (223)
------------------ ------------------ -----------
Cash absorbed by operations (52) (475) (110)
Taxation received - 97 97
------------------ ------------------ -----------
Net cash flows used in operating
activities (52) (378) (13)
--------------------------------------- ------------------ ------------------ -----------
Cash flows from investing
activities
Purchase of fixed assets - (5) (5)
Investment income 7 24 42
Finance income 37 2 21
Net cash flows from investing
activities 44 21 58
--------------------------------------- ------------------ ------------------ -----------
Cash flows from financing
activities
Lease payments (64) (539) (604)
Dividends paid to shareholders (77) (51) (51)
------------------ ------------------ -----------
Net cash flows from financing
activities (141) (590) (655)
--------------------------------------- ------------------ ------------------ -----------
Net decrease in cash and
cash equivalents (149) (947) (610)
Cash and cash equivalents
at start of period 2,755 3,365 3,365
------------------ ------------------ -----------
Cash and cash equivalents
at end of period 2,606 2,418 2,755
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 19-20 Great Pulteney Street, London W1F 9NF.
These interim financial statements were approved by the Board of
Directors on 20 December 2023.
2. Basis of preparation
The interim financial information in this report has been
prepared using accounting policies consistent with IFRS as endorsed
by the UK. IFRS is subject to amendment and interpretation by the
International Accounting Standards Board (IASB) and the
International Financial Reporting Standards Interpretations
Committee (IFRIC) and there is an ongoing process of review and
endorsement by the UK Endorsement Board. The financial information
has been prepared on the basis of IFRS that the Directors expect to
apply for the year ended 30 April 2024.
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 2023.
There are no new standards, interpretations and amendments,
effective for the first time from 1 May 2023, that have had a
material effect on the financial statements of the Group.
3. Non Statutory Accounts
The financial information for the periods ended 31 October 2023
and 31 October 2022 and the year ended 30 April 2023 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 2023 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 2023
and 31 October 2022 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
2023 2022 2023
Number Number Number
Weighted average number of shares
for basic earnings per share 10,252,209 10,252,209 10,252,209
Share options 920,000 920,000 920,000
--------------- --------------- -------------
Weighted average number of shares
for diluted earnings per share 11,172,209 11,172,209 11,172,209
=============== =============== =============
GBP000 GBP000 GBP000
--------------- --------------- -------------
Earnings for basic and diluted earnings
per share: 34 24 233
=============== =============== =============
Basic earnings per share 0.33p 0.23p 2.27p
Diluted earnings per share 0.30p 0.21p 2.09p
=============== =============== =============
Forward Looking Statements
Certain statements in this announcement are forward-looking
statements relating to the Company's operations, performance and
financial position based on current expectations of, and
assumptions and forecasts made by, management. They are subject to
a number of risks, uncertainties and other factors which could
cause actual results, performance or achievements of the Company to
differ materially from any outcomes or results expressed or implied
by such forward-looking statements. Undue reliance should not be
placed on such forward looking statements. They are made only as of
the date of this announcement and no representation, assurance,
guarantee or warranty is given in relation to them including as to
their accuracy, completeness, or the basis on which they are
made.
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END
IR FEDEESEDSEIE
(END) Dow Jones Newswires
December 21, 2023 02:00 ET (07:00 GMT)
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