TIDMFLK
RNS Number : 2749H
Fletcher King PLC
31 July 2019
FLETCHER KING PLC
Audited results for the Year Ending 30(th) April 2019
Highlights
-- Revenue for the year of GBP3,053,000 (2018: GBP3,080,000)
-- Profit before tax of GBP282,000 (2018: GBP274,000)
-- Profit after tax of GBP230,000 (2018: GBP209,000)
-- Basic earnings per share of 2.50p (2018: 2.27p)
-- Final dividend of 0.75p per share proposed. An interim
dividend of 1.00p per share was paid and therefore the total
ordinary dividend for the year will be 1.75p per share (2018:
1.75p)
Commenting on the results, David Fletcher, chairman of Fletcher
King Plc said:
"Performance for the year turned out very much in line with last
year despite challenging market conditions.
Ongoing political and Brexit uncertainties are likely to
continue to negatively impact the UK property markets in which we
operate and it will be increasingly difficult to maintain
profitability. However, our strong balance sheet is significant in
such times and secures our ability to maintain dividend payments to
shareholders".
This announcement contains inside information for the purposes
of Article 7 of EU regulations 596/2014.
For further information, please call:
David Fletcher/Peter Bailey, Fletcher King 020 7493 8400
James Caithie/Tony Rawlinson, Cairn Financial Advisers LLP 020
7213 0880
CHAIRMAN'S STATEMENT
Results
Revenue for this year was GBP3,053,000 (2018: GBP3,080,000).
Profit before tax was GBP282,000 (2018: GBP274,000).
The board is proposing a final dividend of 0.75p per share. The
final dividend is subject to shareholder approval at the AGM and
will be paid on 4 October 2019 to shareholders on the register at
close of business on 6 September 2019. With the interim dividend of
1.00p per share (2018: 1.00p) the dividend for this year will
amount to 1.75p per share (2018: 1.75p per share).
The Commercial Property Market
The unprecedented political and Brexit uncertainties continue to
severely impact lettings and sales in the UK commercial property
market.
As the next Brexit deadline approaches, both investors and
occupiers are likely to become increasingly cautious until this
momentous issue is finally resolved.
However, there continues to be some reasonable traction in
London and the major cities and it is clear that there are
substantial funds available for investment once the future becomes
more certain.
Generally, activity in the capital markets has slowed and prices
have softened over the last 6 months.
The industrial market continues to be the best performing
sector, followed by city centre offices. Retail continues to suffer
with no end in sight to the rise in online sales, causing rental
values to slide further and a corresponding fall in capital
values.
Business Overview
Performance turned out very much in line with management
expectations, and indeed in line with the previous year, and was
achieved during challenging market conditions.
We transacted a good volume of investment property sales
although market prices were lower towards the end of the
period.
Property Management, Rating and Valuations all performed well
although the Valuation Office continued to delay settlement of
rating appeals which makes income forecasting difficult for that
part of our business.
The Stratton House Investment Property Syndicates ("SHIPS"), in
which we have an investment and are managers, have enjoyed some
success in leasing up vacant space.
Two further floors in the Clerkenwell building were let earlier
this calendar year and the last two vacant floors were let in July
2019.
The City building likewise achieved lettings of three floors
during the financial year and a further floor was let in July 2019.
Two floors remain to be let.
Outlook
Forecasting the future is more difficult than ever for the
reasons outlined above. We have some good investment sales
instructions but fewer than the same time last year.
Property management is hoping to secure further mandates and it
will continue to provide a steady and secure income flow.
Rating income is entirely driven by the Valuation Office's
willingness to engage in negotiations on the many challenges we
have in the pipeline.
Currently the banks continue to lend and we anticipate a steady
flow of valuation instructions.
As a result of the uncertainties I have outlined above it is
impossible to accurately predict the outcome for the coming year as
it becomes increasingly difficult to maintain profitability.
We manage the business conservatively and in such times a strong
balance sheet, with liquidity and no debt, is of immense importance
to our relationship with our clients and also in the recruitment
and retention of our valuable staff. It also secures our ability to
continue our unbroken record of dividend payment.
As always thanks must go to our loyal clients and hardworking
colleagues.
DAVID FLETCHER
CHAIRMAN
30 July 2019
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 April 2019
Note 2019 2018
GBP000 GBP000
Revenue 3,053 3,080
Employee benefits expense (1,648) (1,609)
Depreciation expense (3) (18)
Other operating expenses (1,218) (1,242)
Other operating income 91 61
-------- --------
Operating profit 275 272
Finance income 7 2
-------- --------
Profit before taxation 282 274
Taxation (52) (65)
-------- --------
Profit and total comprehensive
income for the year attributable
to equity shareholders 230 209
Basic earnings per share 3 2.50p 2.27p
Diluted earnings per share 3 2.50p 2.25p
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 April 2019
2019 2018
GBP000 GBP000
Assets
Non-current assets
Property, plant and equipment 9 12
Financial assets 1,603 1,588
Deferred tax assets 16 16
------- -------
1,628 1,616
------- -------
Current assets
Trade and other receivables 1,809 917
Cash and cash equivalents 2,001 2,628
------- -------
3,810 3,545
------- -------
Total assets 5,438 5,161
------- -------
Liabilities
Current liabilities
Trade and other payables 1,204 977
Current taxation liabilities 24 43
1,228 1,020
------- -------
Total liabilities 1,228 1,020
------- -------
Shareholders' equity
Share capital 921 921
Share premium 140 140
Retained Earnings 3,149 3,080
------- -------
Total shareholders' equity 4,210 4,141
------- -------
Total equity and liabilities 5,438 5,161
------- -------
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 30 April 2019
2019 2018
GBP000 GBP000
Cash flows from operating activities
Profit before taxation from continuing
operations 282 274
Adjustments for:
Depreciation expense 3 18
Finance income (7) (2)
------- -------
Cash flows from operating activities
before
movement in working capital 278 290
(Increase)/decrease in trade and
other receivables (892) 578
Increase/(decrease) in trade and
other payables 226 (474)
------- -------
Cash (absorbed)/generated from
operations (388) 394
Taxation paid (70) (119)
------- -------
Net cash flows from operating activities (458) 275
------- -------
Cash flows from investing activities
Purchase of investments (15) -
Purchase of fixed assets - (14)
Finance income 7 2
Net cash flows from investing activities (8) (12)
------- -------
Cash flows from financing activities
Dividends paid to shareholders (161) (368)
------- -------
Net cash flows from financing activities (161) (368)
------- -------
Net decrease in cash and cash equivalents (627) (105)
Cash and cash equivalents at start
of year 2,628 2,733
------- -------
Cash and cash equivalents at end
of year 2,001 2,628
------- -------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 April 2019
Note Share Share Retained TOTAL
capital premium Earnings EQUITY
GBP000 GBP000 GBP000 GBP000
Balance at 1 May 2017 921 140 3,239 4,300
Total comprehensive income
for the year - - 209 209
Equity dividends paid 2 - - (368) (368)
Balance at 30 April 2018 921 140 3,080 4,141
Total comprehensive income
for the year - - 230 230
Equity dividends paid 2 - - (161) (161)
Balance at 30 April 2019 921 140 3,149 4,210
---------- ---------- ----------- ---------
NOTES
1. Basis of preparation
The financial information set out in this announcement does not
comprise the Group's statutory accounts for the year ended 30 April
2019. The financial information has been extracted from the
statutory accounts of the Group for the year ended 30 April 2019.
The auditors reported on these accounts. Their reports were
unqualified and 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 statutory accounts for the year
ended 30 April 2018 have been delivered to the Registrar of
Companies, whereas those for the year ended 30 April 2019 will be
delivered to the Registrar of Companies following the Company's
annual general meeting. Except where noted in the statutory
accounts the accounting policies are consistent with those applied
in the preparation of the interim results for the period ended 31
October 2018 and the statutory accounts for the year ended 30 April
2018, which have been prepared in accordance with International
Financial Reporting Standards ("IFRS") as adopted by the European
Union.
2. Dividends
Year ended 30 April 2019 2018
GBP000 GBP000
Equity dividends on ordinary shares:
Declared and paid during year
Ordinary final dividend for the year ended
30 April 2018: 0.75p per share (2017: 3.00p) 69 276
Interim dividend for the year ended 30
April 2019: 1.00p per share (2018: 1.00p) 92 92
------- -------
161 368
------- -------
Proposed ordinary final dividend for the
year ended
30 April 2019: 0.75p per share 69
-------
3. Earnings per share
2019 2018
No No
Weighted average number of shares for basic
earnings per share 9,209,779 9,209,779
Share options - 58,907
------------ ------------
Weighted average number of shares for diluted
earnings per share 9,209,779 9,268,686
============ ============
GBP000 GBP000
Earnings for basic and diluted earnings
per share 230 209
------------ ------------
Basic earnings per share 2.50p 2.27p
Diluted earnings per share 2.50p 2.25p
============ ============
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END
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