TIDMFKE

RNS Number : 7061L

Fiske PLC

14 September 2021

14 September 2021

FISKE PLC

("Fiske" or the "Company" or the "Group")

Final Results, Posting of Annual Report and Notice of AGM

Fiske ( AIM:FKE ) is pleased to announce its final audited financial results for the year ended 31 May 2021.

Highlights

 
                                     2021       2020 
                                  GBP'000    GBP'000  Reported 
-----------------------------   ---------  ---------  -------- 
 
Total Revenue                       6,098      5,383      +13% 
 
Profit / (loss) on ordinary 
 activities before taxation           610      (127) 
 
Profit / (loss) per ordinary 
 share                               4.8p     (1.1p) 
 

James Harrison, CEO, commenting on the results said:

"We are pleased to report another good year of organic growth with revenues up 13% and a solid return to profit in the second half of the year. To have delivered this result despite the impact of the restrictions imposed due to the Covid-19 pandemic is testament to the resilience of our systems, our close relationships with our clients and the tireless efforts of our staff."

In light of the recent lifting of most restrictions relating to Covid-19, the forthcoming AGM, which is to be held on Friday 22 October 2021 at 12.30pm, will be run as a physical meeting at our offices in Salisbury House.

Copies of the 2021 Annual Report and Accounts, including the Notice of AGM and Proxy Voting form will be posted to shareholders shortly and in accordance with rule 26 of the AIM Rules for Companies, this information is also available under the Investor Relations section of the Company's website, www.fiskeplc.com .

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

For further information, please contact:

Fiske PLC

James Harrison (CEO) Tel: +44 (0) 20 8448 4700

Salisbury House London Wall

London

EC2M 5QS

Grant Thornton UK LLP (Nominated Adviser) Tel: +44 (0) 20 7383 5100

Samantha Harrison / Harrison Clarke

Chairman's Statement

Trading

After the Covid-19 lock-down induced fall in market values in March 2020, a hesitant recovery promptly began but only really took hold in October 2020. Overall, portfolio values took until the latter part of our trading year to recover past their late 2019 values which was an impediment to our management fee income. Nevertheless, both commissions on trading and management fees each increased, even after a strong performance last year. We continue to attract new clients and to migrate clients from advisory to discretionary services.

Overall, full year revenues rose by 13% to GBP6.1m (2020: GBP5.4m).

Costs

Over the last five years we have invested heavily: in new back-office systems, in the acquisition of Fieldings, in strengthening operational capacity and in compliance. We have also engaged external resources where appropriate to minimise long term increases in staff levels, and such consultancy pushed up the short-term operating expenses. Whilst we have every intention of continuing to invest in growth, we can say that we have got past the surge in such costs.

Operating expenses level pegged at GBP5.7m in the year to 31 May 2021 (2020: GBP5.7m).

Outturn

After reporting a pre-tax loss of GBP27,000 in the first half-year, we have made a profit of GBP637,000 in the second half which has resulted in a full year pre-tax profit of GBP610,000 (2020: loss GBP127,000). The second half of the year benefitted from increased commission revenues and increases in management fees as markets rose.

The cash flow arising from this is greater by some GBP160,000 that is set aside annually for amortisation or impairment of goodwill or customer bases arising from past acquisitions.

Ocean UK Equity

In May 2021 our unit trust, Ocean UK Equity, passed its third anniversary. With a total return of 24.6%, being 7.6% annualised, the fund is in the top quartile over those three years. The fund has outperformed its benchmark (CBOE UK All Companies) and sector (IA UK All Companies) by a significant margin. As at the end of May 2021 the fund was valued at GBP9.8m (2020: GBP7.6m).

Euroclear

During the year, we took advantage of an unsolicited offer to acquire some of our shares in Euroclear by releasing 28% of our holding. Euroclear has been a very profitable investment for Fiske: we have now realised a profit of GBP1.2m and we still retain GBP3.6m worth of Euroclear shares. The realisation of this profit has further strengthened our balance sheet and capital adequacy position, providing an extra GBP1.4m of cash.

Euroclear's business income margin increased from 28% in 2019 to 33% in the year to December 2020 as a result of positive operating leverage achieved during the year, whilst their operating margin decreased from 43% to 40% in 2020. Net earnings per share increased to EUR137.2 in 2020 compared to EUR136.9 in 2019.

Taking into account recent transaction prices in Euroclear shares, we have marked the carrying value of our investment to EUR1,600 per share being GBP3.6m in total. This represents a significant store of value on our balance sheet and an asset that continues to pay dividends.

Net assets

Shareholder's funds amount to some GBP8.1m and within this we now hold some GBP3.5m of cash.

Share capital

In November 2020, the company made a deferred consideration payment due to the vendors of Fieldings Investment Management, of GBP198,000. Part of this was settled by the allotment of 61,069 Ordinary Shares. This was the third and final such payment and thus there will be no further such share issues to the vendors of Fieldings. The Company's share capital now comprises 11,754,859 ordinary shares.

Dividend

The Board has resolved not to pay a dividend for the year to 31 May 2021 (2020: GBPnil).

Chairman's and Chief Executive's Report (continued)

Impact of Covid-19

Last year the transition to remote working was swiftly executed and working with lockdown and other restrictions has become normal. Indeed, if anything, we enjoyed the benefit of increased productivity in certain areas of the business as a result of working-from-home. For those members of staff with young families, working-from-home has been a challenge and the lifting of restrictions and a move to mixed office and home-based working will be welcomed.

Staff

We would like to thank all members of staff for their unswerving commitment and perseverance during the last year as the pandemic ran its course. As a Company we have worked very effectively in both an entirely remote manner as well as adapting quickly to a hybrid model when we were able to access our offices again.

Strategy

We continue to implement our ongoing strategy to welcome new investment managers with established client relationships to increase our assets under management and advice. We believe that with our traditional values, modern systems and up to date regulatory framework we provide an attractive place to work for aspiring, independently minded private client investment managers.

As part of our strategy, we are redeveloping our website this year to show case our services more clearly whilst also continuing our focus on migrating clients to our fee-paying services.

Markets

Global equity markets advanced strongly during the year led higher by the U.S with the technology heavy NASDAQ up 45%. Improving macroeconomic conditions, continued rollout of the vaccine program, a strong corporate earnings recovery, synchronised global growth expectations, continued monetary and fiscal support and pent-up demand/build up in excess savings by consumers are all factors which helped to drive markets higher. Sterling was also strong against the US Dollar moving from a depressed post Brexit level of US$1.23 to US$1.42.

Many investors and strategists are now asking how far equity markets can run on given their impressive gains from the post pandemic lows recorded in March 2020. Caution might be warranted given that there are plenty of uncertainties to ponder; policymakers could scale back fiscal and monetary support, taxes will have to rise at some stage to help pay for the extraordinary level of government spending during the pandemic and investors remain fixated on whether the recent uptick in inflation is transitory or not. On the latter, if inflation becomes more entrenched, Central Banks may have to raise interest rates sooner and faster than they are currently forecasting. Despite these uncertainties, markets remain incredibly sanguine with the volatility index, the 'Vix', continuing to trend down.

UK equity markets were encouraged by signs of a rebound in the UK economy with the FTSE 100 closing above 7,000 in April for the first time in 14 months and the FTSE 250 hitting all-time highs. Macroeconomic data being released was exceeding expectations and this led the Organisation for Economic Co-Operation and Development (OECD) to raise its GDP growth forecast for the UK to 7.2% in 2021, up from its March projection of 5.1%. Some of this optimism was overshadowed by rising inflation and an increase in covid cases linked to the variant first detected in India. This led the government to delay the reopening of the economy on June 21. UK markets have been stuck in a sideways trading range in May and June and we have seen some rotation back into more 'growth' orientated and 'quality' stocks away from 'early cycle' and 'recovery' or 'value' ones.

The UK market is trading at a discount to its international peers and UK plc continues to attract interest from private equity firms. Morrisons, the food retailer, is the latest acquisition target with a GBP6.3 billion bid from a Fortress led consortium. The UK market still offers value relative to bonds, from a yield perspective, with the FTSE 100 offering a prospective dividend yield of c. 3.9% versus c. 0.7% on offer from UK 10-year gilts. We have recently witnessed a flattening in the UK gilt yield curve as yields at the long end of the curve have gently retreated.

Internationally, the first half of calendar 2021 has seen growth rates accelerating as corporate sales and profits recover and economies open up from lockdown and are combined with Central Bank stimulus in nearly all markets. But by the latter part of the year Central Banks will slow their money creation and begin to tighten. Announcements to this effect have already been given by the European Central Bank and by the Bank of Canada. It seems likely the US Federal Reserve will soon follow suit. Only Japan continues with its programme of buying equities using exchange traded funds. If inflation rises faster than expected or fails to fall back from expected levels, a rise in interest rates should follow. Similarly, in emerging markets the tightening is already more advanced with China and eastern Europe raising rates, and with South American nations and Turkey now recording very high inflation rates.

In summary, as world economies rebound from the very worst effects of Covid, a combination of supply chain disruption, shortages of materials and labour together with a strong recovery in demand is causing prices to rise. The spectre of inflation is naturally of concern to investors. It is too early to tell if this will prove to be transitory, as most Central Banks are guiding us, or more long-lasting. Whilst US, UK and European indices are gradually pushing to new post Covid highs the main laggard is China which has witnessed sharp falls following the crack down by the regulatory authorities. China's speculative market remains a serious concern with scope to further unsettle global markets.

Outlook

We have had a good start to our new financial year. Whilst the first few months have seen trading volumes soften a little, in line with more traditional summer levels, portfolio values are rising with markets which will enhance our fee revenues.

We look forward to another positive year although with a degree of caution due to the likely impact of tightening monetary policy and the probable volatility that may ensue in global markets.

AGM

Shareholders' views are important, and the Board encourages shareholders to submit their votes via the CREST system. Shareholders may also submit questions in advance of the AGM to the Company Secretary via email to info@fiskeplc.com or by post to the Company Secretary at the address set out on page 53 of this report.

In light of the recent lifting of most restrictions relating to Covid-19, the forthcoming AGM, which is to be held on Friday 22 October 2021 at 12.30pm, will be run as a physical meeting at our offices in Salisbury House.

Consolidated Statement of Total Comprehensive Income

For the year ended 31 May 2021

 
                                                      Notes       2021       2020 
                                                               GBP'000    GBP'000 
----------------------------------------------------  -----  ---------  --------- 
Continuing Operations 
Fee and commission income                                        6,018      5,347 
Other income                                                        80         36 
 
Total Revenue                                         2          6,098      5,383 
----------------------------------------------------  -----  ---------  --------- 
 
Operating expenses                                             (5,716)    (5,743) 
 
Operating profit / (loss)                                          382      (360) 
 
Investment revenue                                                 237        143 
Finance income                                                       -        148 
Finance costs                                                      (9)       (58) 
 
Profit / (loss) on ordinary activities before 
 taxation                                                          610      (127) 
Taxation                                              3           (43)          - 
----------------------------------------------------  -----  ---------  --------- 
Profit / (loss) on ordinary activities after 
 taxation                                                          567      (127) 
----------------------------------------------------  -----  ---------  --------- 
Other comprehensive income 
Items that may subsequently be reclassified 
 to profit or loss 
Movement in unrealised appreciation of investments                  75      (793) 
Deferred tax on movement in unrealised appreciation 
 of investments                                                   (12)        187 
----------------------------------------------------  -----  ---------  --------- 
Net other comprehensive income                                    (63)      (606) 
----------------------------------------------------  -----  ---------  --------- 
Total comprehensive income /(loss)attributable 
 to equity shareholders                                            630      (733) 
----------------------------------------------------  -----  ---------  --------- 
Loss per ordinary share 
Basic                                                 4           4.8p     (1.1p) 
Diluted                                               4           4.8p     (1.1p) 
----------------------------------------------------  -----  ---------  --------- 
 
 

All results are from continuing operations.

Consolidated Statement of Financial Position

31 May 2021

 
                                         Notes   As at 31   As at 31 
                                                      May        May 
                                                     2021       2020 
                                                  GBP'000    GBP'000 
---------------------------------------  -----  ---------  --------- 
 
Non-current Assets 
Intangible assets                            5      1,129      1,289 
Other intangible assets                      6         32         65 
Right-of-use assets                          7          -        101 
Property, plant and equipment                8         24         53 
Investments held at Fair Value Through 
 Other Comprehensive Income                  9      3,604      4,962 
Total non-current assets                            4,789      6,470 
---------------------------------------  -----  ---------  --------- 
 
Current Assets 
Trade and other receivables                 10      2,514      2,398 
Cash and cash equivalents                           3,498      2,239 
---------------------------------------  -----  ---------  --------- 
Total current assets                                6,012      4,637 
---------------------------------------  -----  ---------  --------- 
Current liabilities 
Trade and other payables                    11      2,049      2,924 
Short-term lease liabilities                12          -        124 
Current tax liabilities                                43          - 
Total current liabilities                           2,092      3,048 
---------------------------------------  -----  ---------  --------- 
Net current assets                                  3,920      1,589 
---------------------------------------  -----  ---------  --------- 
 
Non-current liabilities 
Deferred tax liabilities                    13        573        611 
---------------------------------------  -----  ---------  --------- 
Total non-current liabilities                         573        611 
---------------------------------------  -----  ---------  --------- 
 
Net Assets                                          8,136      7,448 
---------------------------------------  -----  ---------  --------- 
 
Equity 
Share capital                               14      2,939      2,923 
Share premium                                       2,082      2,057 
Revaluation reserve                                 2,553      3,597 
Retained earnings/(losses)                            562    (1,129) 
---------------------------------------  -----  ---------  --------- 
Shareholders' equity                                8,136      7,448 
---------------------------------------  -----  ---------  --------- 
 
 

These financial statements were approved by the Board of Directors and authorised for issue on 13 September 2021.

Group Statement of Changes in Equity

For the year ended 31 May 2021

 
                                          Share      Share   Revaluation   Retained 
                                        capital    premium       reserve     losses     Total 
                                        GBP'000    GBP'000       GBP'000    GBP'000   GBP'000 
------------------------------------  ---------  ---------  ------------  ---------  -------- 
 
   Balance at 31 May 2019                 2,904      2,029         4,203      (956)     8,180 
 Adoption of IFRS 16                          -          -             -       (48)      (48) 
------------------------------------  ---------  ---------  ------------  ---------  -------- 
 Balance at 1 June 2019                   2,904      2,029         4,203    (1,004)     8,132 
 Loss for the financial 
  year                                        -          -             -      (127)     (127) 
 Movement in unrealised 
  appreciation of investments                 -          -         (793)          -     (793) 
 Deferred tax on movement 
  in unrealised appreciation 
  of investments                              -          -           187          -       187 
------------------------------------  ---------  ---------  ------------  ---------  -------- 
 Total comprehensive income 
  / (expense) for the year                    -          -         (606)      (127)     (733) 
------------------------------------  ---------  ---------  ------------  ---------  -------- 
 Share based payment transactions             -          -             -          2         2 
 Issue of ordinary share 
  capital                                    19         28             -          -        47 
------------------------------------  ---------  ---------  ------------  ---------  -------- 
 Total transactions with 
  owners, recognised directly 
  in equity                                  19         28             -          2        49 
------------------------------------  ---------  ---------  ------------  ---------  -------- 
 Balance at 1 June 2020                   2,923      2,057         3,597    (1,129)     7,448 
 Profit for the financial 
  year                                        -          -             -        567       567 
 Movement in unrealised 
  appreciation of investments                 -          -            75          -        75 
 Deferred tax on movement 
  in unrealised appreciation 
  of investments                              -          -          (12)          -      (12) 
 Realised disposal of Fair 
  value through other comprehensive 
  income investments                          -          -       (1,107)      1,122        15 
------------------------------------  ---------  ---------  ------------  ---------  -------- 
 Total comprehensive income 
  / (expense) for the year                    -          -       (1,044)      1,689       645 
------------------------------------  ---------  ---------  ------------  ---------  -------- 
 Share based payment transactions             -          -             -          2         2 
 Issue of ordinary share 
  capital                                    16         25             -          -        41 
------------------------------------  ---------  ---------  ------------  ---------  -------- 
 Total transactions with 
  owners, recognised directly 
  in equity                                  16         25             -          2        43 
------------------------------------  ---------  ---------  ------------  ---------  -------- 
 
   Balance at 31 May 2021                 2,939      2,082         2,553        562     8,136 
------------------------------------  ---------  ---------  ------------  ---------  -------- 
 

Group and Parent Company Statement of Cash Flows

For the year ended 31 May 2021

 
                                         Notes       2021       2021       2020       2020 
                                                    Group    Company      Group    Company 
                                                  GBP'000    GBP'000    GBP'000    GBP'000 
--------------------------------------  ------  ---------  ---------  ---------  --------- 
Operating profit/(loss)                               382        348      (360)      (170) 
Amortisation of intangible assets 
 arising on consolidation                             160        161        156         24 
Amortisation of other intangible 
 assets                                                33         33         32         32 
Depreciation of right-of-use 
 assets                                               101        101        173        173 
Depreciation of property, plant 
 and equipment                                         33         33         39         39 
Expenses settled by the issue 
 of shares                                              2          2          2          2 
(Increase) / decrease in receivables                (119)      (583)       (11)        323 
Increase / (decrease) in payables                   (873)      (744)         75         24 
----------------------------------------------  ---------  ---------  ---------  --------- 
Cash generated from/(used) in 
 operations                                         (281)      (649)        106        447 
Tax (paid)                                              -          -          -          - 
--------------------------------------  ------  ---------  ---------  ---------  --------- 
Net cash generated from/(used 
 in) operating activities                           (281)      (649)        106        447 
 
Investing activities 
Investment income received                            237        237        143        143 
Interest received                                       -          -        148        148 
Proceeds on disposal of investments 
 held at FVTOCI                                     1,400      1,400          5          5 
Purchases of property, plant 
 and equipment                                        (4)        (4)       (62)       (62) 
Net cash generated from investing 
 activities                                         1,633      1,633        234        234 
----------------------------------------------  ---------  ---------  ---------  --------- 
 
Financing activities 
Interest paid                                         (9)        (9)       (24)       (24) 
Proceeds from issue of ordinary 
 share capital                                         40         40         47         47 
Repayment of lease liabilities                      (124)      (124)      (197)      (197) 
----------------------------------------------  ---------  ---------  ---------  --------- 
Net cash used in financing activities                (93)       (93)      (174)      (174) 
----------------------------------------------  ---------  ---------  ---------  --------- 
 
Net increase/(decrease) in cash 
 and cash equivalents                               1,259        891        166        507 
Cash and cash equivalents at 
 beginning of year                                  2,239      1,898      2,073      1,391 
Cash and cash equivalents at 
 end of year                                        3,498      2,789      2,239      1,898 
----------------------------------------------  ---------  ---------  ---------  --------- 
 
 

Notes to the Accounts

For the year ended 31 May 2021

   1.    Basis of preparation 

These financial statements have been prepared in accordance with the requirements of IFRS implemented by the Group for the year ended 31 May 2021 as adopted by the International Financial Reporting Interpretations Committee and in conformity with the Companies Act 2006 The Group financial statements have been prepared under the historical cost convention, with the exception of financial instruments, which are stated in accordance with IFRS 9 Financial Instruments: recognition and measurement.

The financial information included in this News Release does not constitute statutory accounts of the Group for the years ended 31 May 2021 and 2020, but is derived from those accounts. Statutory accounts for the year ended 31 May 2020 have been reported on by the Group's auditor and delivered to the Registrar of Companies. Statutory accounts for the year ended 31 May 2021 have been audited and will be delivered to the Registrar of Companies. The report of the auditors for both years was (i) unqualified and (ii) did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006.

Copies of the Annual Report will be sent on 14 September 2021 to shareholders and will also be available on our website at www.fiskeplc.com

New and revised IFRSs in issue but not yet effective

A number of amendments to existing standards have been effective from 1 June 2020 but they do not have a material effect on the Group financial statements. There are a number of standards, amendments to standards, and interpretations which have been issued by the IASB that are effective in future accounting periods that the Group has decided not to adopt early. The following amendments are effective for future periods:

 
 IFRS/Std                   Description             Issued     Effective 
 IAS 1 Presentation         Amendments regarding    February   Annual periods 
  of Financial Statements    the disclosure of       2021       beginning on or 
                             accounting policies                after 1 January 
                                                                2023 
 IAS 8 Accounting           Amendments regarding    February   Annual periods 
  Policies, Changes          the definition of       2021       beginning on or 
  in Accounting Estimates    accounting estimates               after 1 January 
  and Errors                                                    2023 
 IFRS 3 Business            Amendments updating     May 2020   Annual periods 
  Combinations               a reference to the                 beginning on or 
                             Conceptual Framework               after 1 January 
                                                                2022 
 

The Group do not expect these amendments to have a significant impact on the financial statements.

There were no new standards adopted in the current year.

   2.    Total revenue and segmental analysis 

IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by management to allocate resources to the segments and to assess their performance. Following the acquisition of Fieldings Investment Management Limited in August 2017, their staff and operations have been integrated into the management team of Fiske plc. Pursuant to this, the Group continues to identify a single reportable segment, being UK-based financial intermediation. Within this single reportable segment, total revenue comprises:

 
                                                   2021     2020 
                                                GBP'000  GBP'000 
----------------------------------------------  -------  ------- 
Commission receivable                             2,854    2,732 
Investment management fees                        3,164    2,615 
----------------------------------------------  -------  ------- 
                                                  6,018    5,347 
Profit / (loss) on investments held at FVTOCI         -        - 
Other income / (loss)                                80       36 
----------------------------------------------  -------  ------- 
                                                  6,098    5,383 
----------------------------------------------  -------  ------- 
 

Substantially all revenue in the current and prior year is generated in the UK and derives solely from the provision of financial intermediation.

   3.   Tax 

Analysis of tax on ordinary activities:

 
                                                    2021     2020 
                                                 GBP'000  GBP'000 
-----------------------------------------------  -------  ------- 
Current tax 
Current year                                          43        - 
Prior year adjustment                                  -        - 
-----------------------------------------------  -------  ------- 
                                                      43        - 
Deferred tax 
Current year                                           -        - 
Prior year adjustment                                  -        - 
-----------------------------------------------  -------  ------- 
Total tax charge to Statement of Comprehensive 
 Income                                               43        - 
-----------------------------------------------  -------  ------- 
 

Factors affecting the tax charge for the year

The standard rate of tax for the year, based on the United Kingdom standard rate of corporation tax, is 19.00% (2020: 19.00%). This is also expected to be the rate applicable in the next financial year.

Changes to the UK corporation tax rate were substantively enacted on 24 May 2021. From 1 April 2023 the main corporation tax rate will increase to 25% from 19%. If this enacted rate had been applied this would have resulted in a further deferred tax liability of GBP181,000.

The charge/(credit) for the year can be reconciled to the profit per the Statement of Comprehensive Income as follows:

 
                                                      2021     2020 
                                                   GBP'000  GBP'000 
-------------------------------------------------  -------  ------- 
Profit/(loss) before tax                               608    (127) 
-------------------------------------------------  -------  ------- 
Charge/(credit) on profit on ordinary activities 
 at standard rate                                      116     (24) 
Effect of: 
Expenses not deductible in determining taxable 
 profit                                                  3        6 
Non-taxable income                                    (45)     (27) 
Carry back tax relief                                 (31)        - 
Tax losses not recognised                                -       45 
                                                        43        - 
-------------------------------------------------  -------  ------- 
 
   4.    Earnings per share 

Basic earnings per share has been calculated by dividing the profit on ordinary activities after taxation by the weighted average number of shares in issue during the year. Diluted earnings per share is basic earnings per share adjusted for the effect of conversion into fully paid shares of the weighted average number of share options during the year.

 
                                                             Diluted 
   31 May 2021                                       Basic     Basic 
                                                   GBP'000   GBP'000 
------------------------------------------------  --------  -------- 
 Profit on ordinary activities after taxation          565       565 
 Adjustment to reflect impact of dilutive share 
  options                                                -         - 
------------------------------------------------  --------  -------- 
 Profit                                                565       565 
------------------------------------------------  --------  -------- 
 Weighted average number of shares (000's)          11,724    11,769 
------------------------------------------------  --------  -------- 
 Earnings per share (pence)                            4.8       4.8 
------------------------------------------------  --------  -------- 
 
 
                                                                     Diluted 
   31 May 2020                                           Basic         Basic 
                                                       GBP'000       GBP'000 
                                                    (restated)    (restated) 
------------------------------------------------  ------------  ------------ 
 (Loss) on ordinary activities after taxation            (127)         (127) 
 Adjustment to reflect impact of dilutive share 
  options                                                    -             - 
------------------------------------------------  ------------  ------------ 
 (Loss)                                                  (127)         (127) 
------------------------------------------------  ------------  ------------ 
 Weighted average number of shares (000's)              11,673        11,714 
------------------------------------------------  ------------  ------------ 
 (Loss) per share (pence)                                (1.1)         (1.1) 
------------------------------------------------  ------------  ------------ 
 
 
                                                      31 May 
                                         31 May 2021    2020 
---------------------------------------  -----------  ------ 
Number of shares (000's): 
Weighted average number of shares             11,724  11,673 
Dilutive effect of share option scheme            44      41 
---------------------------------------  -----------  ------ 
                                              11,769  11,714 
---------------------------------------  -----------  ------ 
 
   5.    Intangible assets arising on consolidation 
 
                                                 Customer 
                                            relationships     Goodwill     Total 
---------------------------------------- 
                                                  GBP'000      GBP'000   GBP'000 
----------------------------------------  ---------------  -----------  -------- 
 Cost 
 At 1 June 2019                                     1,312        1,311     2,623 
 Additions                                              -            -         - 
----------------------------------------  ---------------  -----------  -------- 
 At 31 May 2020                                     1,312        1,311     2,623 
 Additions                                              -            -         - 
----------------------------------------  ---------------  -----------  -------- 
 At 31 May 2021                                     1,312        1,311     2,623 
----------------------------------------  ---------------  -----------  -------- 
 Accumulated amortisation or impairment 
 At 1 June 2019                                     (262)        (916)   (1,178) 
 Charge in year                                     (132)         (24)     (156) 
----------------------------------------  ---------------  -----------  -------- 
 At 31 May 2020                                     (394)        (940)   (1,334) 
 Charge in year                                     (130)         (30)     (160) 
----------------------------------------  ---------------  -----------  -------- 
 At 31 May 2021                                     (524)        (970)   (1,494) 
----------------------------------------  ---------------  -----------  -------- 
 Net book value 
  At 31 May 2021                                      788          341     1,129 
----------------------------------------  ---------------  -----------  -------- 
 At 1 June 2020                                       918          371     1,289 
----------------------------------------  ---------------  -----------  -------- 
 

Goodwill arising through business combinations is allocated to individual cash-generating units ('CGUs') being acquired subsidiaries, reflecting the lowest level at which the Group monitors and test goodwill for impairment purposes. The CGUs to which goodwill is attributed are as follows:

 
                                        2021       2020 
 CGU                                 GBP'000    GBP'000 
--------------------------------   ---------  --------- 
 Ionian Group Limited                    176        206 
 Vor Financial Strategy Limited          165        165 
---------------------------------  ---------  --------- 
 Goodwill allocated to CGUs              341        371 
---------------------------------  ---------  --------- 
 

The impairment charge arises from a prudent assessment that customer relationships and goodwill change over time and are not of indefinite life. Based on analyses of the relevant customer base segments, a determination was made as to the expected income streams arising over the next 7 years. The recoverable amounts of the goodwill in Ionian Group Limited and in Vor Financial Strategy Limited are determined based on value-in-use calculations. These calculations use projections of marginal profit contributions over the expected remaining stream of attributable value. The key assumptions used for value-in-use calculations are as follows:

 
 Direct and indirect costs 
  as % of revenues             60% 
 Growth rate                   0 % 
                              12.5 
 Discount rate                   % 
 

Had the discount rate used gone up / down by 1%, impairment would have been GBP6,000 higher/lower and the carrying amount commensurately adjusted. Management determined margin contribution and growth rates based on past performance of those units, together with current market conditions and its expectations of development of those CGUs. The discount rate used is pre-tax, and reflects specific risks relating to the relevant CGU.

   6.    Other intangible assets 
 
                                Systems 
                                licence 
 Group and Company              GBP'000 
--------------------------    --------- 
 Cost 
 At 1 June 2019                     192 
 Additions                            - 
 At 1 June 2020                     192 
 Additions                            - 
--------------------------    --------- 
 At 31 May 2021                     192 
----------------------------  --------- 
 Accumulated amortisation 
 At 1 June 2019                    (95) 
 Charge for the year               (32) 
 At 1 June 2020                   (127) 
 Charge for the year               (33) 
----------------------------  --------- 
 At 31 May 2021                   (160) 
----------------------------  --------- 
 Net book value 
 At 31 May 2021                      32 
----------------------------  --------- 
 At 31 May 2020                      65 
----------------------------  --------- 
 
   7.    Right-of-use assets 
 
                              Property 
 Group and Company             GBP'000 
--------------------------   --------- 
 Cost 
 At 1 June 2019                    274 
 Additions                           - 
 At 1 June 2020                    274 
 Additions                           - 
--------------------------   --------- 
 At 31 May 2021                    274 
---------------------------  --------- 
 Accumulated amortisation 
 At 1 June 2019                      - 
 Charge for the year             (173) 
 At 1 June 2020                  (173) 
 Charge for the year             (101) 
---------------------------  --------- 
 At 31 May 2021                  (274) 
---------------------------  --------- 
 Net book value 
 At 31 May 2021                      - 
--------------------------   --------- 
 At 31 May 2020                    101 
---------------------------  --------- 
 
   8.    Property, plant and equipment 
 
 
                             Office furniture      Computer 
                                and equipment     equipment     Office refurbishment     Total 
 Group and Company                    GBP'000       GBP'000                  GBP'000   GBP'000 
--------------------------  -----------------  ------------  -----------------------  -------- 
 Cost 
 At 1 June 2019                           162           214                      175       551 
 Additions                                  2            60                        -        62 
 Disposals                                  -             -                        -         - 
--------------------------  -----------------  ------------  -----------------------  -------- 
 At 1 June 2020                           164           274                      175       613 
 Additions                                  -             4                        -         4 
--------------------------  -----------------  ------------  -----------------------  -------- 
 At 31 May 2021                           164           278                      175       617 
--------------------------  -----------------  ------------  -----------------------  -------- 
 Accumulated depreciation 
 At 1 June 2019                         (149)         (197)                    (175)     (521) 
 Charge for the year                      (7)          (32)                        -      (39) 
 At 1 June 2020                         (156)         (229)                    (175)     (560) 
 Charge for the year                      (7)          (26)                        -      (33) 
--------------------------  -----------------  ------------  -----------------------  -------- 
 At 31 May 2021                         (163)         (255)                    (175)     (593) 
--------------------------  -----------------  ------------  -----------------------  -------- 
 Net book value 
  At 31 May 2021                            1            23                        -        24 
--------------------------  -----------------  ------------  -----------------------  -------- 
 At 31 May 2020                             8            45                        -        53 
--------------------------  -----------------  ------------  -----------------------  -------- 
 

A ten-year lease of office premises at London Wall came to an end at December 2020. Since then the company has continued to rent those office premises continuing the quarterly rental payments.

The Group used the following practical expedients when applying IFRS16 to leases previously classified as operating leases under IAS17.

   --     Applied a single discount rate to a portfolio of leases with similar characteristics 

-- Excluded initial direct costs from measuring the right-of-use asset at the date of initial application

-- Used hindsight when determining the lease term if the contract contains options to extend or terminate the lease. Between March and June 2020, the company benefited from certain rent concessions occurring as a direct consequence of the Covid-19 pandemic amounting to GBP46,606 (prior year: GBPnil), the benefit of which has been recognised in the profit and loss account for the year as a reduction in costs.

Investments held at Fair Value Through Other Comprehensive Income

 
                                                  2021     2020 
Group and Company                              GBP'000  GBP'000 
---------------------------------------------  -------  ------- 
Opening valuation                                4,962    5,759 
Opening fair value gains on investments held   (4,303)  (5,095) 
---------------------------------------------  -------  ------- 
Cost                                               659      664 
Cost of disposals                                (182)      (5) 
---------------------------------------------  -------  ------- 
Cost                                               477      659 
Gains on investments                             3,127    4,303 
---------------------------------------------  -------  ------- 
Closing fair value of investments held           3,604    4,962 
---------------------------------------------  -------  ------- 
being: 
Listed                                               -        - 
Unlisted                                         3,604    4,962 
---------------------------------------------  -------  ------- 
FVTOCI investments carried at fair value         3,604    4,962 
---------------------------------------------  -------  ------- 
 
 
Gains / (losses) on investments      2021     2020 
--------------------------------  -------  ------- 
Group and Company                 GBP'000  GBP'000 
--------------------------------  -------  ------- 
Realised gains on sales             1,250        - 
Increase in fair value              1,877    4,303 
--------------------------------  -------  ------- 
Gains on investments                3,127    4,303 
--------------------------------  -------  ------- 
 

The investments included above are represented by holdings of equity securities. These shares are not held for trading.

   9.    Trade and other receivables 
 
                                         2021      2021      2020      2020 
                                        Group   Company     Group   Company 
 Group and Company                    GBP'000   GBP'000   GBP'000   GBP'000 
-----------------------------------  --------  --------  --------  -------- 
 Counterparty receivables               1,065     1,065       150       150 
 Trade receivables                          -         -     1,345     1,345 
-----------------------------------  --------  --------  --------  -------- 
                                        1,065     1,065     1,495     1,495 
 Amount owed by group undertakings          -       703         -        85 
 Other debtors                             86        48        56       142 
 Prepayments and accrued income         1,363     1,050       847       566 
-----------------------------------  --------  --------  --------  -------- 
                                        2,514     2,866    2,398     2,288 
-----------------------------------  --------  --------  --------  -------- 
 

Due to the short-term nature of the current receivables, their carrying amount is considered to be the same as their fair value.

Trade receivables

Included in the Group's trade receivables are debtors with a carrying amount of GBPnil (2020: GBPnil) which are past due at the reporting date for which the Group has not provided.

Counterparty receivables

Included in the Group's counterparty receivables balance are debtors with a carrying amount of GBP1,065,000 (2020: GBP150,000) which are past due but not considered impaired.

Ageing of counterparty receivables:

 
                  2021     2020 
               GBP'000  GBP'000 
-------------  -------  ------- 
 
0 - 15 days      1,025      128 
16 - 30 days        22        - 
31 - 60 days        19       22 
-------------  -------  ------- 
                 1,065      150 
-------------  -------  ------- 
 

10. Trade and other payables

 
                              2021      2021      2020      2020 
                             Group   Company     Group   Company 
                           GBP'000   GBP'000   GBP'000   GBP'000 
------------------------  --------  --------  --------  -------- 
 Counterparty payables         623       623     1,456     1,456 
 Trade payables                436       435         -         - 
------------------------  --------  --------  --------  -------- 
                             1,059     1,058     1,456     1,456 
 Financial liabilities 
  measured at amortised 
  cost being deferred 
  consideration payable          -         -       218       218 
 Other sundry creditors 
  and accruals                 990       870     1,250     1,005 
------------------------  --------  --------  --------  -------- 
                             2,049     1,928     2,924     2,679 
------------------------  --------  --------  --------  -------- 
 

11. Lease liabilities

 
                            2021       2021      2020      2020 
                           Group    Company     Group   Company 
                         GBP'000    GBP'000   GBP'000   GBP'000 
---------------------  ---------  ---------  --------  -------- 
 Current                                          124       124 
 Non-current                   -          -         -         - 
---------------------  ---------  ---------  --------  -------- 
         -                                -       124       124 
 ---------  -------------------------------  --------  -------- 
 Maturity analysis: 
---------------------  ---------  ---------  --------  -------- 
 Not later than one 
  year                         -          -       124       124 
 Later than one year 
  and not later than 
  5 years                      -          -         -         - 
---------------------  ---------  ---------  --------  -------- 
         -                                -       124       124 
 ---------  -------------------------------  --------  -------- 
 

The cash flow impact is summarised as:

 
                            2021      2021      2020      2020 
                           Group   Company     Group   Company 
                         GBP'000   GBP'000   GBP'000   GBP'000 
----------------------  --------  --------  --------  -------- 
 Lease liabilities at 
  end of prior year          124       124         -         - 
 Adoption of IFRS 16 
  at 1 June 2019               -         -       321       321 
----------------------  --------  --------  --------  -------- 
 Lease liabilities at 
  beginning of year          124       124       321       321 
 Cash flow                 (124)     (124)     (197)     (197) 
----------------------  --------  --------  --------  -------- 
 Lease liabilities at 
  end of year                  -         -       124       124 
----------------------  --------  --------  --------  -------- 
 

The lease liability is retired over time by the contrasting interest expense and lease payments.

12. Deferred taxation

 
 
                                                Capital                      Tax          Deferred 
                                             allowances   Investments     Losses     tax liability 
 Group and Company                              GBP'000       GBP'000    GBP'000           GBP'000 
----------------------------------------  -------------  ------------  ---------  ---------------- 
 At 1 June 2020                                     (1)           706       (94)               611 
 Charge for the year                                  -            12         94               106 
 Deferred tax released on sale 
  of investments                                      -         (144)          -             (144) 
 Charge to Statement of Comprehensive 
  Income 
 
        *    in respect of current year               -             -          -                 - 
 At 31 May 2021                                     (1)           574          -               573 
----------------------------------------  -------------  ------------  ---------  ---------------- 
 

Deferred tax assets and liabilities are recognised at a rate which is substantively enacted at the balance sheet date. The rate to be taken in this case is 19%, being the anticipated rate of taxation applicable to the Group and Company in the following year.

13. Called up share capital

 
                                     2021                   2020 
                                 No. of                  No. of 
                                 shares   GBP'000        shares   GBP'000 
--------------------------  -----------  --------  ------------  -------- 
 Authorised: 
 Ordinary shares of 25p      12,000,000     3,000    12,000,000     3,000 
--------------------------  -----------  --------  ------------  -------- 
 Allotted and fully paid: 
  Ordinary shares of 25p 
 Opening balance             11,693,790     2,923   11, 617,597     2,904 
 Shares issued                   61,069        16        76,193        19 
--------------------------  -----------  --------  ------------  -------- 
 Closing balance             11,754,859     2,939    11,693,790     2,923 
--------------------------  -----------  --------  ------------  -------- 
 

Included within the allotted and fully paid share capital were 9,490 ordinary shares of 25p each (2019: 9,490 ordinary shares of 25p each) held for the benefit of employees.

At 31 May 2021 there were 200,000 outstanding options to subscribe for ordinary shares at a weighted average exercise price of 55p (2020: 55p) and a weighted average remaining contractual life of 3 years, 5 months. (2020: 3 years, 9 months). Ordinary shares are entitled to all distributions of capital and income.

14. Financial commitments

Lease - classified as an IFRS 16 lease

At 31 May 2021 the Group had outstanding commitments for future minimum lease payments under non-cancellable operating leases which fall due as follows:

 
                                         2021                    2020 
                                    Land and               Land and 
                                   buildings     Other    buildings     Other 
                                     GBP'000   GBP'000      GBP'000   GBP'000 
------------------------------  ------------  --------  -----------  -------- 
 In the next year                          -         5          191         - 
 In the second to fifth years 
  inclusive                                -         -            -         - 
------------------------------  ------------  --------  -----------  -------- 
 Total commitment                          -         5          191         - 
------------------------------  ------------  --------  -----------  -------- 
 

In June 2010, the Company entered into a lease over its premises at London Wall for a period of 10 years, with a five-year break clause. That lease expired on 31 December 2020.

15. Clients' money

At 31 May 2021 amounts held by the Company on behalf of clients in accordance with the Client Money Rules of the Financial Conduct Authority amounted to GBP63,153,533 (2020: GBP56,624,640). The Company has no beneficial interest in these amounts and accordingly they are not included in the consolidated statement of financial position.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

FR VZLBFFKLXBBE

(END) Dow Jones Newswires

September 14, 2021 04:44 ET (08:44 GMT)

Fiske (LSE:FKE)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024 Haga Click aquí para más Gráficas Fiske.
Fiske (LSE:FKE)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024 Haga Click aquí para más Gráficas Fiske.