RNS Number:5819J
Fitzhardinge PLC
03 April 2003
FITZHARDINGE PLC
Preliminary Results for the year ended 31 December 2002
Fitzhardinge is a Real Estate consultancy services group, which operates in the
name of Colliers CRE (Colliers Conrad Ritblat Erdman). These are Fitzhardinge's
first full year results since it commenced trading on the Alternative Investment
Market in August 2001.
HIGHLIGHTS
* Turnover for the year of #38.21 million
* Profit before taxation of #3.19 million
* Proposed final dividend of 2.10p per share, making a total for the
year of 3.15p for the year
* Completion and successful integration of Gooch Webster and Fisher
Wilson acquisitions since year-end
* Enlarged group now one of the UK's top ten Real Estate
consultancies
John Ritblat, Chairman of Fitzhardinge plc, comments:
"In the short-term, the outlook for the property market remains mixed, with
occupier demand in the business space sector still very weak and the possibility
that this could begin to affect parts of the investment market. Nevertheless, I
remain optimistic about our prospects for the immediate future as we have taken
great strides this year in continuing to establish a broadly based consultancy
business across all the major sectors".
3 April 2003
ENQUIRIES:
FITZHARDINGE PLC Tel: 020 7935 4499
David Izett, Managing Director
Tom Tidy, Finance Director
SHORE CAPITAL Tel: 020 7408 4090
Alex Borrelli
COLLEGE HILL Tel: 020 7457 2020
Gareth David Email: gareth.david@collegehill.com
Matthew Gregorowski Email: matthew.gregorowski@collegehill.com
CHAIRMAN'S STATEMENT
I am glad to report on a successful first full year of trading as a quoted
company, and on the completion of two significant acquisitions, Gooch Webster
and Fisher Wilson (Scotland) ("Fisher Wilson"), on 3rd March 2003 for an
aggregate cost, in shares and cash, of #10.6m. Despite the downturn in occupier
demand for offices and industrial space, I can report a strong overall
performance from the Company, whose principal operations are Colliers CRE
(Colliers Conrad Ritblat Erdman) and its specialist division, Robert Barry & Co
("Robert Barry"), the leading hotel consultant. Colliers CRE is the UK member
of Colliers International, a global association of independently owned
businesses and one of the world's largest Real Estate consultancies.
Overall fee income in the second half was 21% higher than the first half, with a
resultant improvement in profitability. With total fee income for the year to 31
December 2002 of #38.21 million, we achieved a profit before taxation of #3.19
million and earnings per share of 11.09p (10.13p fully diluted).
The Board is recommending a final dividend for this period of 2.10p, which,
together with the interim dividend of 1.05p, gives a total for the year of
3.15p, being 2.79 times covered by earnings in this period. This final dividend,
subject to approval at the Annual General Meeting on 13 May 2003, will be paid
on 19 May 2003 to those shareholders on the register at the close of business on
22 April 2003. The Trustee of the Company's ESOP has, as before, waived its
entitlement to dividends in respect of its entire holding of 4.8 million shares.
The acquisitions of Gooch Webster and Fisher Wilson have strengthened us in our
core areas of: investment, valuation, offices, industrial, retail, property
management and building consultancy and will enable us to establish pre-eminence
in the Motor Trade sector. Gooch Webster significantly strengthens our presence
in the West End of London, the City of London, Birmingham, Edinburgh, Glasgow
and Manchester, brings us a new office in Bristol and participation in three
joint venture companies, with assets exceeding #90 million in which we act as
property manager. Fisher Wilson further enhances our excellent reputation in
Scotland particularly in the out-of-town retail sector.
In acquiring two highly regarded consultancy businesses, with complementary
activities to Colliers CRE, we have consolidated our position as one of the top
ten property brokerage and consultancy service providers in the UK. In addition
the combined firm will be one of the largest surveying practices in Scotland.
As a result of these acquisitions, more than half of our revenue is now derived
from non-agency work, such as valuation, asset and property management and
building consultancy, which is less vulnerable to market fluctuations.
Welfare and motivation of our staff are key to the success of our business and
we place great emphasis on the personal development of our 660 strong group and
we have recently launched a new cash bonus scheme which pays progressive
bonuses, based on profitability, and rewards other aspects of high performance.
In the short-term, the outlook for the property market remains mixed, with
occupier demand in the business space sector still very weak and the possibility
that this could begin to affect parts of the investment market. Nevertheless, I
remain optimistic about our prospects for the immediate future as we have taken
great strides this year in continuing to establish a broadly based consultancy
business across all the major sectors.
JOHN RITBLAT
Chairman
3 April 2003
MANAGING DIRECTOR'S REVIEW
At the start of last year the management team set itself a number of goals for
development of our business over the year, from increasing overall market share
and expansion in targeted sectors to selective acquisitions, enhancement of our
marketing and research efforts and developing the Colliers brand.
I am pleased to report that these results reflect our success at achieving, to a
large extent, the goals we set ourselves, good growth in core areas of our
business the completion of the Gooch Webster and Fisher Wilson acquisitions and
expansion of the Colliers network in Europe.
We have greatly improved the infrastructure of the business during the year,
through the enhancement of our marketing and human resources functions on a cost
effective basis. Reaction from staff to these initiatives has been excellent,
and morale throughout the group is good, with a correspondingly high level of
key staff retention across all departments.
Whilst Colliers CRE already enjoyed an excellent reputation for the quality of
its research in the retail sector, we were keen to broaden our coverage and make
it more relevant to the needs of all our clients and the diversity of our
business. A range of new research products has been launched, including a UK
investment performance forecasting series and a number of international real
estate products. In addition, a first rate residential research team was
recently recruited.
Total turnover for the year of #38.21 million shows growth of 21% during the
second half, as compared to the first half of 2002. This was due to strong
performances in a number of key sectors, including Investment, Valuation,
Retail, Hotels and Healthcare. We are now able to compete with the best for the
best quality business, with an ever-growing confidence of success.
The practice of Colliers CRE splits broadly into eight sector groupings:
Investment, Asset and Property Management, Valuation, Retail, Business Space,
Building Consultancy, Specialist Sector Activities such as Licensed & Leisure,
Healthcare, Hotels (Robert Barry) and Motor Trade and lastly Other Professional,
e.g. Rating, Landlord and Tenant, Insolvency, Consultancy and Planning. With
the exception of Business Space, where the market was severely depressed, I am
pleased to report that the past year has seen progress in all these principal
areas.
Completion of the Gooch Webster and Fisher Wilson acquisitions represents a
step-change in the scale of the group. They complement our existing activities,
by strengthening the breadth and depth of our business, consolidating our
position as one of the premier independent property consultancies in the UK and
raising turnover, on an annualised basis, to approaching #60 million.
Gooch Webster, acquired for #8.1 million, brings us an additional 150 fee
earners, a presence for the first time in Bristol and a number of major long
term clients, and also strengthens our business in key sectors. Fisher Wilson,
acquired for #2.5 million, gives a big boost to the enlarged group's presence in
Edinburgh, and in the out-of-town retail sector and, when combined with the
Colliers CRE and Gooch Webster businesses, makes us one of the top practices in
Scotland. The enlarged group continues to trade as Colliers CRE.
We now operate out of nine Colliers CRE offices across the UK: West End of
London, City of London, Bristol, Birmingham, Manchester, Leeds, Glasgow,
Edinburgh and Belfast, together with eight Robert Barry offices. Integration of
the Gooch Webster and Fisher Wilson teams is going very well, and we look
forward to seeing the synergy benefits of these mergers in the coming year.
During the year we have opened new offices for our Hotels division, Robert
Barry, in Southampton and Birmingham. Since the year-end we have established
Colliers International Corporate Services Europe Ltd ("CICSE") - a pan-European
Colliers Company of which all the European Colliers offices are members and
which offers integrated real estate solutions to meet the business needs of
multinational corporate occupiers. Among clients already being advised by CICSE
are Cadbury Schweppes, Marconi, Shell and Black & Decker.
Another major initiative is the development of our investment consultancy
activities through the launch of Colliers Capital (UK) Limited. This new
division creates new funds, where Colliers CRE will act as strategic advisor,
expands investment management services to third parties and advises on
structuring and financing property-based transactions. We already manage the
property assets of three substantial pension funds and believe that this area
also offers significant opportunities for growth.
The development of our continental European activities has continued in Germany
and France with strong independently owned practices joining Colliers during the
year. These new members substantially enhance our ability to secure and
transact international business.
With our income now well balanced between agency and non-agency work and with
the rapid integration of our acquisitions our business goes from strength to
strength and we look confidently to a good performance in the year ahead.
DAVID IZETT
Managing Director
3 April 2003
CONSOLIDATED PROFIT & LOSS ACCOUNT
Year to 5 months to
31.12.02 31.12.01
#'000 #'000
Turnover 38,210 15,261
Operating expenses (34,544) (13,007)
Other operating income 161 64
Operating profit 3,827 2,318
Interest receivable and similar income 127 56
Interest payable and similar charges (765) (362)
Profit on ordinary activities before taxation 3,189 2,012
Tax on profit on ordinary activities (1,148) (684)
Profit attributable to shareholders 2,041 1,328
Dividends (731) (228)
Retained profit transferred to reserves 1,310 1,100
Basic earnings per share (p) 11.09 7.22
Fully diluted earnings per share (p) 10.19 6.64
FITZHARDINGE PLC
Preliminary Results for the year ended 31 December 2002
CONSOLIDATED BALANCE SHEET
2002 2001
#'000 #'000
Fixed assets
Intangible assets 24,887 24,880
Tangible assets 2,444 2,852
Investments 4,800 4,817
32,131 32,549
Current assets
Debtors 14,030 15,971
Cash at bank and in hand 4,370 1,412
18,400 17,383
Creditors: Amounts falling
due within one year (13,089) (11,992)
Net current assets 5,311 5,391
Total assets less current liabilities 37,442 37,940
Creditors: Amounts falling
due after more than one year (9,018) (10,826)
Net assets 28,424 27,114
Capital and reserves
Called up share capital 11,597 11,597
Share premium account 14,417 14,417
Profit and loss account 2,410 1,100
Equity shareholders' funds 28,424 27,114
FITZHARDINGE PLC
Preliminary Results for the year ended 31 December 2002
CONSOLIDATED CASH FLOW STATEMENT
Year to 5 months to
31.12.02 31.12.01
#'000 #'000 #'000 #'000
Operating profit 3,827 2,318
Depreciation 900 377
(Profit)/loss on disposal of tangible fixed assets (6) 2
Decrease/(increase) in debtors 984 (1,799)
Increase/(decrease) in creditors 2,591 (2,287)
Net cash inflow/(outflow) from operating activities 8,296 (1,389)
Returns on investments and servicing of finance
Interest received 127 56
Interest paid (765) (362)
Net cash outflow from returns on investment (638) (306)
and servicing of finance
Tax recovered/(paid) 65 (112)
Capital expenditure and financial investment
Purchase of tangible fixed assets (678) (164)
Purchase of intangible fixed assets (7) (40)
Sale of tangible fixed assets 192 36
Sale of investments 17 -
Net cash outflow from investing activities (476) (168)
Acquisitions and disposals
Purchase of subsidiary undertakings (1,283) (342)
Net overdrafts acquired with subsidiaries - (1,959)
Net cash outflow from acquisitions (1,283) (2,301)
Equity dividends paid (422) -
Net cash inflow/(outflow) before financing 5,542 (4,276)
Financing
Proceeds from shares issued (net of issue costs) - 5,456
Bank loan repayments (1,405) (708)
New sale and leaseback agreements 626 -
Finance lease repayments (630) (235)
Net cash (outflow)/inflow from financing (1,409) 4,513
Increase in cash 4,133 237
FITZHARDINGE PLC
Preliminary Results for the year ended 31 December 2002
Notes
1. The financial information set out above does not constitute statutory
accounts within the meaning of Section 240 of the Companies Act 1985.
Statutory accounts for the year ended 31 December 2002 will be delivered to
the Registrar of Companies and sent to Shareholders shortly. An unqualified
Auditors' report has been given on such accounts.
2. Turnover and operating profit all derive from UK continuing operations.
There are no recognised gains or losses other than the profit for the
financial year.
3. The Directors propose a final dividend for the year of 2.10 pence per
ordinary share on 25,660,946 shares. This dividend, subject to approval at
the AGM, is expected to be paid on 19 May 2003 to those shareholders on the
register at the close of business on 22 April 2003.
4. Basic earnings per share is based on profit attributable to ordinary
shareholders of #2,041,000 and the weighted average number of shares in
issue during the year of 18,400,931. The number of shares used for the
diluted earnings per share calculation is 20,570,695. Diluted earnings per
share for the period ended 31 December 2001 has been re-stated to reflect
the lapse during 2002 of a number of awards under the company's Deferred
Share Bonus Plan.
5. The Annual Report and Accounts will be mailed to registered shareholders
at their registered addresses shortly and from the date of release copies of
the Annual Report will be made available to the public at the Company's
registered office, 9 Marylebone Lane, London W1U 1HL.
6. The Annual General Meeting will be held at 9 Marylebone Lane, London W1U
1HL on Tuesday 13 May at 12.00 noon.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR EAELAEAEDEAE