TIDMFKE

RNS Number : 6517P

Fiske PLC

19 February 2021

19 February 2021

Fiske Plc

('Fiske' or 'the Company')

Interim Results

The Company announces its interim results for the six months ended 30 November 2020.

In accordance with rule 26 of the AIM Rules for Companies this information is also available, under the Investors section, at the Company's website, http://www.fiskeplc.com .

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

For further information please contact:

-- Samantha Harrison / Harrison Clarke / Lukas Girzadas, Grant Thornton UK LLP (Nominated Adviser)

(tel: 020 7383 5100)

-- James Harrison, Fiske Plc - CEO

(tel: 020 7448 4700)

Chairman's Statement

Trading

Our results for the half year to 30 November 2020 show a marked improvement on the two prior six month periods.

Total revenues of GBP2.775 million in the six months to November 2020 represent an 11% increase over revenues in the six months to November 2019 and only a 2% decrease on the following six months to May 2020. This was achieved despite the severe drop in market values in the first quarter of 2020. Whilst our commission revenues were up only 5% on the prior year equivalent period, our investment management fees increased by 14%.

Total assets under management ('AUM') have increased over the six months, as one would expect in the improving market conditions, and management fees as a percentage of AUM have improved slightly over the equivalent prior period to November 2019.

The increase in operating expenses was held to 2% which is plenty enough in the current low-inflation environment, but very modest given the continued investment in our internal controls and management of the regulatory oversight environment.

Overall, our operating results for the half year to 30 November 2020 were a continued improvement on the prior periods which have shown declining operating losses: of GBP237,000 for the half year to November 2019, GBP123,000 for the (second) half year to May 2020 and now GBP21,000 in the half year to November 2020.

At the pre-tax level, with interest rates dwindling to nil and fortunately for us not being negative in the UK, interest income has all but disappeared. On a more positive note, whilst we did not receive a Euroclear dividend in the six-month period, we do anticipate one within the current financial year.

Euroclear

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 GBP3.7m 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.

Markets

At the beginning of this six-month period, in May, UK markets had started a price recovery from the market collapse in March but were still 17% below levels at the beginning of 2020. In November market prices began a further rally on the back of the US Presidential win for Biden and the positive vaccine news from both Pfizer and Moderna. For the main UK markets, though, prices still remained some 10% lower than at the start of the year. In parallel, international markets being reflected in indices such as the DAX, S&P and Nasdaq have fared much better, and growing client exposure to these markets has been a positive for the year.

Outlook

Much attention remains focussed on the path of the pandemic and both the monetary and fiscal responses. Thus, whilst our own operations continue to run smoothly, a very great many companies, not just the obvious retail and leisure businesses, have been badly affected and the economic impact is yet to be widely appreciated. We retain a healthy degree of caution regarding the immediate outlook for markets and will be very mindful of the likely economic impact of the virus as we progress through the year. Nevertheless, we continue to strive for further improvements in our financial results.

Clive Fiske Harrison

Chairman

18 February 2021

Condensed Consolidated Statement of Total Comprehensive Income

for the six months ended 30 November 2020

 
                                                 Six months    Six months 
                                                      ended         ended  Year ended 
                                                30 November   30 November      31 May 
                                                       2020          2019        2020 
                                         note     Unaudited     Unaudited     Audited 
                                                    GBP'000       GBP'000     GBP'000 
-------------------------------------  ------  ------------  ------------  ---------- 
Total Revenue                               2         2,775         2,509       5,383 
Operating expenses                                  (2,796)       (2,746)     (5,743) 
-------------------------------------  ------  ------------  ------------  ---------- 
Operating Loss                                         (21)         (237)       (360) 
-------------------------------------  ------  ------------  ------------  ---------- 
Investment revenue                                        -            27         143 
Finance income                                            -            87         148 
Finance costs                                           (6)          (35)        (58) 
Loss on ordinary activities 
 before taxation                                       (27)         (158)       (127) 
Taxation                                                (1)             -           - 
-------------------------------------  ------  ------------  ------------  ---------- 
Loss on ordinary activities 
 after taxation                                        (26)         (158)       (127) 
-------------------------------------  ------  ------------  ------------  ---------- 
Other comprehensive income/(expense) 
Movement in unrealised 
 appreciation of investments                            222         (212)       (793) 
Deferred tax on movement 
 in unrealised appreciation 
 of investments                                        (37)            39         187 
-------------------------------------  ------  ------------  ------------  ---------- 
Net other comprehensive 
 income/(expense)                                       185         (173)       (606) 
-------------------------------------  ------  ------------  ------------  ---------- 
Total comprehensive income/loss 
 for the period/year attributable 
 to equity shareholders                                 159         (331)       (733) 
-------------------------------------  ------  ------------  ------------  ---------- 
(Loss) / Earnings per 
 ordinary share (pence), 
 excluding other comprehensive 
 income                                     3 
Basic                                                (0.2p)        (1.4p)      (1.1p) 
Diluted                                              (0.2p)        (1.4p)      (1.1p) 
 

All results are from continuing operations and are attributable to equity shareholders of the parent company.

Condensed Consolidated Statement of Financial Position

30 November 2020

 
                                             As at         As at     As at 
                                       30 November   30 November    31 May 
                                              2020          2019      2020 
                                         Unaudited     Unaudited   Audited 
                                           GBP'000       GBP'000   GBP'000 
-----------------------------------   ------------  ------------  -------- 
 
Non-current assets 
Intangible assets arising 
 on consolidation                            1,216         1,379     1,289 
Right-of-use assets                             14           188       101 
Other intangible assets                         49            81        65 
Property, plant and equipment                   37            28        53 
Investments held at Fair 
 Value Through Other Comprehensive 
 Income                                      3,751         5,546     4,962 
------------------------------------  ------------  ------------  -------- 
Total non-current assets                     5,067         7,222     6,470 
------------------------------------  ------------  ------------  -------- 
 
Current assets 
Trade and other receivables                  3,459         2,667     2,398 
Cash and cash equivalents                    2,992         1,377     2,239 
------------------------------------  ------------  ------------  -------- 
Total current assets                         6,451         4,044     4,637 
------------------------------------  ------------  ------------  -------- 
Current liabilities 
Trade and other payables                     3,237         2,479     2,924 
Short-term lease liabilities                    18           207       124 
Current tax liabilities                          -             -         - 
-----------------------------------   ------------  ------------  -------- 
Total current liabilities                    3,255         2,686     3,048 
------------------------------------  ------------  ------------  -------- 
Net current assets                           3,196         1,358     1,589 
------------------------------------  ------------  ------------  -------- 
 
Non-current liabilities 
Long-term lease liabilities                      -            18         - 
Deferred tax liabilities                       538           759       611 
------------------------------------  ------------  ------------  -------- 
Total non-current liabilities                  538           777       611 
------------------------------------  ------------  ------------  -------- 
Net assets                                   7,725         7,803     7,448 
------------------------------------  ------------  ------------  -------- 
 
Equity 
Share capital                                2,939         2,904     2,923 
Share premium                                2,082         2,029     2,057 
Revaluation reserve                          2,736         4,030     3,597 
Retained earnings                             (32)       (1,160)   (1,129) 
------------------------------------  ------------  ------------  -------- 
Shareholders' equity                         7,725         7,803     7,448 
------------------------------------  ------------  ------------  -------- 
 
 

Condensed Consolidated Statement of Changes in Equity

 
                                  Share     Share  Revaluation   Retained    Total 
                                Capital   Premium      Reserve   Earnings   Equity 
                                GBP'000   GBP'000      GBP'000    GBP'000  GBP'000 
-----------------------------  --------  --------  -----------  ---------  ------- 
Balance at 31 May 
 2020                             2,923     2,057        3,597    (1,129)    7,448 
(Loss) on ordinary 
 activities after 
 taxation                             -         -            -       (26)     (26) 
Movement in unrealised 
 appreciation of investments          -         -          222          -      222 
Deferred tax on movement 
 in unrealised appreciation 
 of investments                       -         -         (37)          -     (37) 
Total comprehensive 
 income / (expense) 
 for the period                       -         -          185       (26)      159 
-----------------------------  --------  --------  -----------  ---------  ------- 
Realised on disposal 
 of available-for-sale 
 investments                          -         -      (1,046)      1,122       76 
-----------------------------  --------  --------  -----------  ---------  ------- 
Share based payment 
 transactions                         -         -            -          1        1 
Issue of ordinary 
 share capital                       16        25            -          -       41 
-----------------------------  --------  --------  -----------  ---------  ------- 
Total transactions 
 with owners, recognised 
 directly in equity                  16        25            -          1       42 
-----------------------------  --------  --------  -----------  ---------  ------- 
Balance at 30 November 
 2020                             2,939     2,082        2,736       (32)    7,725 
-----------------------------  --------  --------  -----------  ---------  ------- 
 
 
Balance at 31 May 
 2019                          2,904  2,029  4,203  (1,004)  8,132 
(Loss) on ordinary 
 activities after 
 taxation                          -      -      -    (158)  (158) 
Movement in unrealised 
 appreciation of investments       -      -  (212)        -  (212) 
Deferred tax on movement 
 in unrealised appreciation 
 of investments                    -      -     39        -     39 
-----------------------------  -----  -----  -----  -------  ----- 
Total comprehensive 
 income / (expense) 
 for the period                    -      -  (173)    (158)  (331) 
-----------------------------  -----  -----  -----  -------  ----- 
Share based payment 
 transactions                      -      -      -        2      2 
Issue of ordinary 
 share capital                     -      -      -        -      - 
-----------------------------  -----  -----  -----  -------  ----- 
Total transactions 
 with owners, recognised 
 directly in equity                -      -      -        2      2 
-----------------------------  -----  -----  -----  -------  ----- 
Balance at 30 November 
 2019                          2,904  2,029  4,030  (1,160)  7,803 
-----------------------------  -----  -----  -----  -------  ----- 
 
 
Balance at 1 June 
 2019                          2,904  2,029  4,203  (1,004)  8,132 
Loss on ordinary 
 activities after 
 taxation                          -      -      -    (127)  (127) 
Movement in unrealised 
 appreciation of investments       -      -  (793)        -  (793) 
Deferred tax on m 
 ovement in unrealised 
 appreciation of investments       -      -    187        -    187 
-----------------------------  -----  -----  -----  -------  ----- 
Total comprehensive 
 income / (expense) 
 for the period                    -      -  (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 31 May 
 2020                          2,923  2,057  3,597  (1,129)  7,448 
-----------------------------  -----  -----  -----  -------  ----- 
 

Condensed Consolidated Statement of Cash Flows

For the six months ended 30 November 2020

 
                                     Six months    Six months 
                                          ended         ended  Year ended 
                                    30 November   30 November      31 May 
                                           2020          2019        2020 
                                      Unaudited     Unaudited     Audited 
                                        GBP'000       GBP'000     GBP'000 
---------------------------------  ------------  ------------  ---------- 
Operating (loss)                           (21)         (237)       (360) 
Amortisation of intangible 
 assets arising on consolidation             74            66         156 
Amortisation of other intangible 
 assets                                      16            16          32 
Depreciation of Right-of-use 
 assets                                      86            86         173 
Depreciation of property, 
 plant and equipment                         16            10          39 
Expenses settled by the 
 issue of shares                              1             1           2 
Decrease/(increase) in 
 receivables                            (1,063)         (280)        (11) 
Increase/(decrease) in 
 payables                                   316         (354)          75 
---------------------------------  ------------  ------------  ---------- 
Cash generated from / (used 
 in) operations                           (575)         (691)         106 
Tax paid                                      -             -           - 
---------------------------------  ------------  ------------  ---------- 
Net cash (used in)/generated 
 from operating activities                (575)         (691)         106 
---------------------------------  ------------  ------------  ---------- 
Investing activities 
Investment income received                    -            27         143 
Interest received                             -            87         148 
Proceeds on disposal of 
 investments held at FVTOCI               1,400             -           5 
Purchases of property, 
 plant and equipment                          -           (8)        (62) 
Purchases of other intangible 
 assets                                       -             -           - 
Net cash (used in)/ generated 
 from investing activities                1,400           106         234 
---------------------------------  ------------  ------------  ---------- 
Financing activities 
Interest paid                               (6)          (15)        (24) 
Proceeds from issue of 
 ordinary share capital                      40             -          47 
Repayment of lease liabilities            (106)          (96)       (197) 
---------------------------------  ------------  ------------  ---------- 
Net cash used in financing 
 activities                                (72)         (111)       (174) 
---------------------------------  ------------  ------------  ---------- 
Net (decrease) / increase 
 in cash and cash equivalents               753         (696)         166 
Cash and cash equivalents 
 at beginning of period                   2,239         2,073       2,073 
---------------------------------  ------------  ------------  ---------- 
Cash and cash equivalents 
 at end of period/year                    2,992         1,377       2,239 
---------------------------------  ------------  ------------  ---------- 
 

Notes to the Interim Financial Statements

   1.            Basis of preparation 

The Condensed Consolidated Interim Financial Statements of Fiske plc and its subsidiaries (the Group) for the six months ended 30 November 2020 have been prepared in accordance with IAS 34 (Interim Financial Reporting), as adopted in the United Kingdom. The accounting policies applied are consistent with those set out in the May 2020 Fiske plc Annual Report and accounts. These Condensed Consolidated Interim Financial Statements do not include all the information required for full annual statements and should be read in conjunction with the May 2020 Annual Report and Accounts.

The Financial Statements of the Group for the year ended 31 May 2020 were prepared in accordance with International Financial Reporting Standards adopted by in the United Kingdom. The statutory Consolidated Financial Statements for Fiske plc in respect of the year ended 31 May 2020 have been reported on by the Company's auditor and delivered to the registrar of companies. The report of the auditor was (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006.

Under IAS 27 these financial statements are prepared on a consolidated basis where the Group consists of Fiske plc, the parent, and those subsidiaries in which it owns 100% of the voting rights, being Ionian Group Limited, Fiske Nominees Limited, Fieldings Investment Management Limited and VOR Financial Strategy Limited.

The directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing this half-yearly financial report.

There were no new mandatory standards or amendments to existing standards effective in the six-month reporting period to 30 November 2020.

   2.            Revenues 

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:

 
                               Six months    Six months 
                                    ended         ended  Year ended 
                              30 November   30 November      31 May 
                                     2020          2019        2020 
                                Unaudited     Unaudited     Audited 
                                  GBP'000       GBP'000     GBP'000 
---------------------------  ------------  ------------  ---------- 
Commission receivable               1,295         1,238       2,732 
Investment management fees          1,429         1,255       2,615 
---------------------------  ------------  ------------  ---------- 
                                    2,724         2,493       5,347 
Other income / (loss)                  51            16          36 
---------------------------  ------------  ------------  ---------- 
                                    2,775         2,509       5,383 
---------------------------  ------------  ------------  ---------- 
 
   3.            Earnings per share 
 
                                            Diluted 
                                    Basic     Basic 
                                  GBP'000   GBP'000 
-------------------------------  --------  -------- 
 (Loss) on ordinary activities 
  after taxation                     (26)      (26) 
 Adjustment to reflect impact 
  of dilutive share options             -         - 
-------------------------------  --------  -------- 
 (Loss)                              (26)      (26) 
-------------------------------  --------  -------- 
 Weighted average number 
  of shares (000's)                11,694    11,735 
-------------------------------  --------  -------- 
 (Loss) per share (pence)           (0.2)     (0.2) 
-------------------------------  --------  -------- 
 

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