TIDMFLK
RNS Number : 5748I
Fletcher King PLC
08 August 2023
FLETCHER KING PLC
Audited results for the Year Ending 30 April 2023
Highlights
-- Revenue for the year of GBP3,079,000 (2022: GBP2,967,000)
-- Statutory profit before tax of GBP192,000 (2022: GBP134,000)
-- Adjusted profit before tax of GBP165,000 (2022: GBP144,000) *
-- Adjusted basic earnings per share of 2.01p (2022: 1.73p) **
-- Final proposed dividend: 0.75p per share (2022: 0.50p per share)
-- Significant cash reserves: GBP2.8m as at 30 April 2023 (2022: GBP3.4m)
*Adjusted profit before tax is before share-based payment
expenses and after other comprehensive income (see note 2). The
Board considers the adjusted results to be an important measure of
performance due to the nature of the Company, and with share
options being awarded to directors and key staff only.
**Adjusted basic earnings per share is calculated using adjusted
profits (see note 4).
The Annual Report and Accounts will shortly be posted on the
Company's website and a further announcement will be made when the
document is sent to shareholders.
Commenting on the results, David Fletcher, chairman of Fletcher
King Plc said:
"We are pleased to report improved results compared with last
year and to be able to recommend an increased dividend payment. We
have started the new financial year with some encouraging
instructions and are optimistic for the forthcoming period".
This announcement contains inside information for the purposes
of the UK Market Abuse Regulation and the Directors of the Company
are responsible for the release of this announcement.
For further information, please contact:
Fletcher King plc Tel: +44 (0) 20 7493 8400
David Fletcher, Non-Executive
Chairman
Peter Bailey, Finance Director
Cairn Financial Advisers LLP Tel: +44 (0) 20 7213 0880
(Nominated Adviser)
James Caithie
Liam Murray
CHAIRMAN'S STATEMENT
Results
Revenue for the year was GBP3,079,000 (2022: GBP2,967,000).
Adjusted profit before tax (see note 2) was GBP165,000 (2022:
GBP144,000). Statutory profit before tax was GBP192,000 (2022:
GBP134,000).
The Board considers the adjusted results to be an important
measure of performance and to be more representative of performance
for the year than the statutory results (which have been prepared
in accordance with International Financial Reporting
Standards).
Dividend
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 27 October 2023 to shareholders on the register at
the close of business on 29 September 2023. With no interim
dividend paid (2022: GBPnil per share) the dividend for this year
will amount to 0.75p per share (2022: 0.5p per share).
The Commercial Property Market
Looking back to my statement twelve months ago, I reported that
both the letting and capital markets were considerably more buoyant
than the previous year. Regrettably that state of affairs did not
continue.
Due to the uncertainties of the economy, with interest rates
rising and inflation falling much more slowly than expected, the
commercial property capital markets are currently moribund. The
potential for a change of Government is further clouding investors'
vision and whilst there is a considerable volume of funds waiting
to enter the commercial property market, the timing is
unpredictable.
In contrast to the property capital markets, the letting
markets, particularly in London and other big cities, are still
reasonably active although this is primarily for grade A office
space which is still in demand with higher rents achieved than in
the previous year.
Business Overview
Despite the difficult market I am pleased to report an overall
growth in turnover and profit for the year.
Once again, Property Asset and Fund Management enjoyed a strong
year with new clients added.
Bank valuations also continued to grow, with an increase in
instructions from new lenders.
I am pleased to report that, at last, rating appeals moved ahead
and some very long-standing large appeals were successfully
concluded and hopefully that progress will continue.
The Investment department has had a very difficult year, along
with most in the property industry, and recorded its worst results
for some time. We believe this was a reflection of falling capital
values resulting from the political and economic uncertainties
reported above.
Outlook
It continues to be impossible to accurately predict the future
of the property markets and thus our performance, whilst current
uncertainties prevail. Nevertheless, we are reasonably optimistic
for the coming year particularly as we are in discussion with a
number of potential new Property Management instructions.
We anticipate that the volume of valuations will continue to
grow and we expect rating appeals to do likewise.
We also expect the Investment Department to do much better this
coming year but the volume of their work is particularly difficult
to predict under current circumstances.
The general state of the market has not been conducive to
generating activity with our new large shareholder but we will
continue to look for opportunities to collaborate in the
forthcoming period.
As usual, our balance sheet and cash reserves remain strong and
that continues to be of great importance in these volatile
times.
Our loyal clients and hard-working and talented staff have
enabled us to perform well this year and on behalf of the Board I
thank them all.
DAVID FLETCHER
CHAIRMAN
7 August 2023
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
for the year ended 30 April 2023
Note 2023 2022
GBP000 GBP000
Continuing operations
Revenue 3,079 2,967
Employee benefits expense (1,704) (1,630)
Depreciation expense (197) (346)
Gain recognised on remeasurement
of lease liability - 125
Other operating expenses (1,064) (1,014)
Share based payment expense (17) (10)
--------- --------
(2,982) (2,875)
Other operating income 51 39
Investment income 42 18
Finance income 21 -
Finance expense (19) (15)
--------- --------
Profit before taxation 192 134
Taxation 41 18
--------- --------
Profit for the year 233 152
Other comprehensive income: amounts
not to be
reclassified to profit or loss
Fair value loss on financial assets (44) -
through
other comprehensive income
Total comprehensive income for
the year attributable to equity
shareholders 189 152
Earnings per share
Basic 4 2.27p 1.62p
Diluted 4 2.09p 1.48p
Adjusted earnings per share
Basic 4 2.01p 1.73p
Diluted 4 1.84p 1.58p
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 April 2023
2023 2022
GBP000 GBP000
Assets
Non-current assets
Intangible assets 61 76
Property, plant and equipment 205 266
Right-of-use asset 378 494
Financial assets 485 529
Deferred tax assets 73 32
1,202 1,397
------- -------
Current assets
Trade and other receivables 1,553 1,375
Corporation tax debtor - 97
Cash and cash equivalents 2,755 3,365
------- -------
4,308 4,791
------- -------
Total assets 5,510 6,188
------- -------
Liabilities
Current liabilities
Trade and other payables 901 1,124
Provisions - 25
Lease liabilities 141 610
1,042 1,759
------- -------
Non-current liabilities
------- -------
Lease liabilities 286 402
------- -------
Total liabilities 1,328 2,161
------- -------
Shareholders' equity
Share capital 1,025 1,025
Share premium 522 522
Investment revaluation reserve (145) (101)
Share option reserve 27 10
Retained Earnings 2,753 2,571
------- -------
Total shareholders' equity 4,182 4,027
------- -------
Total equity and liabilities 5,510 6,188
------- -------
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 30 April 2023
2023 2022
GBP000 GBP000
Cash flows from operating activities
Profit before taxation from continuing
operations 192 134
Adjustments for:
Movement in provision (25) (75)
Depreciation and amortisation expense 197 346
Remeasurement of lease liability - (125)
Investment income (42) (18)
Finance income (21) -
Finance expense 19 15
Share based payment expense 17 10
------- -------
Cash flows from operating activities
before
movement in working capital 337 287
Increase in trade and other receivables (224) (181)
(Decrease)/increase in trade and
other payables (223) 216
------- -------
Cash (absorbed by) / generated
from operations (110) 322
Taxation received 97 -
------- -------
Net cash flows from operating
activities (13) 322
------- -------
Cash flows from investing activities
Purchase of fixed assets (5) (352)
Investment income 42 18
Finance income 21 -
Net cash flows from investing
activities 58 (334)
------- -------
Cash flows from financing activities
Lease payments (604) (1)
Proceeds of share placing - 547
Placing costs - (61)
Dividends paid to shareholders (51) -
------- -------
Net cash flows from financing
activities (655) 485
------- -------
Net (decrease)/increase in cash
and cash equivalents (610) 473
Cash and cash equivalents at start
of year 3,365 2,892
------- -------
Cash and cash equivalents at end
of year 2,755 3,365
------- -------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 April 2023
Investment Share
Note Share Share Revaluation option Retained TOTAL
capital premium Reserve reserve Earnings EQUITY
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Balance as at 1
May 2021 921 140 (101) - 2,419 3,379
Total comprehensive
income for the year - - - - 152 152
Share issue 104 443 - - - 547
Cost of share issue - (61) - - - (61)
Share based payment
expense - - - 10 - 10
Balance at 30 April
2022 1,025 522 (101) 10 2,571 4,027
Profit for the year - - - - 233 233
Fair value loss
on financial assets
through other comprehensive
income - - (44) - - (44)
Share based payment
expense - - - 17 - 17
Equity dividends
paid 2 - - - - (51) (51)
Balance at 30 April
2023 1,025 522 (145) 27 2,753 4,182
NOTES
1. General information
Whilst the financial information included in this preliminary
announcement has been prepared in accordance with UK-adopted
international accounting standards, this announcement does not
itself contain sufficient information to comply with IFRSs.
The financial information is presented in pounds sterling
rounded to the nearest thousand, and prepared in accordance with
UK-adopted international accounting standards and under the
historical cost convention, except for the revaluation of certain
financial assets. The financial information set out in this
announcement does not comprise the Group's statutory accounts for
the years ended 30 April 2023 or 30 April 2022.
The financial information for the year ended 30 April 2022 is
derived from the statutory accounts for that year which have been
delivered to the Registrar of Companies. The auditors reported on
those accounts; their report was 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 financial information for the year ended 30 April 2023 is
derived from the audited statutory accounts for the year ended 30
April 2023 on which the auditors have given an unqualified report,
that did not contain a statement under section 498(2) or 498(3) of
the Companies Act 2006 and did not include references to any
matters to which the auditors drew attention by way of emphasis.
The statutory accounts will be delivered to the Registrar of
Companies following the Company's annual general meeting.
2. Alternative performance measures - profit reconciliation
The reconciliation set out below provides additional information
to enable the reader to reconcile to the numbers discussed in the
Chairman's Statement and Highlights section.
Year ended 30 April 2023 2022
GBP000 GBP000
Profit before taxation 192 134
Add back: Share based payment expense 17 10
Include: Fair value loss on financial assets (44) -
through OCI
Adjusted profit before share-based payment
expense and taxation 165 144
Taxation 41 18
Adjusted profit after tax for the year 206 162
------- -------
The fair value loss on financial assets represents the
unrealised loss in the year on the revaluation of the Group's
interest in the SHIPS 16 syndicate.
3. Dividends
Year ended 30 April 2023 2022
GBP000 GBP000
Equity dividends on ordinary shares:
Declared and paid during year
Ordinary final dividend for the year ended 51 -
30 April 2022: 0.50p per share (2021: nil)
Interim dividend for the year ended 30 - -
April 2023: nil per share
(2022: nil)
------- -------
51 -
------- -------
Proposed ordinary final dividend for the
year ended
30 April 2023: 0.75p per share 77
-------
4. Earnings per share
Number of shares 2023 2022
No No
Weighted average number of shares for basic
earnings per share 10,252,209 9,375,425
Share options 920,000 920,000
------------- -------------
Weighted average number of shares for diluted
earnings per share 11,172,209 10,295,425
============= =============
Earnings GBP000 GBP000
Profit after tax for the year 233 152
(used to calculate the basic and diluted
earnings per share)
Add back: Share based payment expense 17 10
Include: Fair value loss on financial assets (44) -
through OCI
Adjusted profit after tax for the year 206 162
------------- -------------
(used to calculate the adjusted basic and
diluted earnings per share)
Earnings per share
Basic 2.27p 1.62p
Diluted 2.09p 1.48p
Adjusted earnings per share
Basic 2.01p 1.73p
Diluted 1.84p 1.58p
Forward Looking Statements
Certain statements in this announcement are forward-looking
statements relating to the Company's operations, performance and
financial position based on current expectations of, and
assumptions and forecasts made by, management. They are subject to
a number of risks, uncertainties and other factors which could
cause actual results, performance or achievements of the Company to
differ materially from any outcomes or results expressed or implied
by such forward-looking statements. Undue reliance should not be
placed on such forward looking statements. They are made only as of
the date of this announcement and no representation, assurance,
guarantee or warranty is given in relation to them including as to
their accuracy, completeness, or the basis on which they are
made.
END
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