TIDMFLK
RNS Number : 5661X
Fletcher King PLC
30 August 2022
FLETCHER KING PLC
Audited results for the Year Ending 30 April 2022
Highlights
-- Revenue for the year of GBP2,967,000 (2021: GBP2,264,000)
-- Statutory profit before tax of GBP134,000 (2021: loss of GBP834,000)
-- Adjusted profit before tax of GBP144,000 (2021: loss of GBP935,000) *
-- Adjusted basic earnings per share of 1.73p (2020: loss of 8.57p) *
-- Final proposed dividend: 0.50p per share (2021: GBPnil)
-- Significant cash reserves: GBP3.4m as at 30 April 2022 (2021: GBP2.9m)
*Adjusted results are before share based payment expenses and
after other comprehensive income (see note 2).
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:
"The results for the year are a significant improvement from
last year and we are pleased to be able to commence dividend
payments again. We have started the new financial year with some
encouraging instructions and are optimistic that we can continue
our growth pattern".
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
HAIRMAN'S STATEMENT
Results
Revenue for the year was GBP2,967,000 (2021: GBP2,264,000).
Adjusted profit before tax (see note 2) was GBP144,000 (2021: loss
of GBP935,000). Statutory profit before tax was GBP134,000 (2021:
loss of GBP834,000).
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 0.5p per share. The
final dividend is subject to shareholder approval at the AGM and
will be paid on 28 October 2022 to shareholders on the register at
the close of business on 30 September 2022. The ex-dividend date
for this payment is 29 September 2022. With no interim dividend
paid (2021: GBPnil per share) the dividend for this year will
amount to 0.5p per share (2021: GBPnil per share).
The Commercial Property Market
It was encouraging that both the letting and capital markets
were considerably more buoyant than the previous year.
The impact of Covid on the market has now largely disappeared
although numbers back to the office have not yet returned to pre
pandemic levels. However no sooner has one world problem diminished
than another takes its place in the form of the tragic war in
Ukraine and its impact on all economies throughout the world.
Despite the continuing levels of uncertainty, the industrial
property market continued to perform exceptionally well with rents
growing and capital values powering ahead. Over the year, according
to MSCI data, total returns in the sector produced an astonishing
42% which compared to retail at 6% and offices at 6.7%.
High Street retail continues to be difficult but interestingly
the office sector, in both London and major cities throughout the
country, is showing strong tenant demand for prime space with
potential under supply in some locations.
Business Overview
As seen from the figures above, the market was significantly
better than the previous year but it was not without its ups and
downs and a significant level of uncertainty remains in predicting
future outcomes.
Property and Fund Management had a strong year. Despite the
challenges of the pandemic, we continued to produce excellent rent
collection statistics. We remodelled parts of the portfolios and
acquired new clients during the year. Our continued robust
performance has fostered long client relationships some of which
have been in existence for over fifty years.
Bank Valuations showed a marked improvement compared to the
previous year and there has been a steady flow of instructions from
lenders for whom we have not previously acted.
Income from rating appeals was negligible, reflecting a
disappointingly low number of appeals settled with the Valuation
Office. Hopefully the backlog of appeals will be addressed by the
Valuation Office and we can benefit from the significant pipeline
of appeals submitted on behalf of our clients.
As announced on 4 March 2022, and after a delay in receiving FCA
approval, the transaction completed whereby C M Strategic 613
Limited (an investment company of Elliott Bernerd) acquired a
29.99% shareholding in the Company.
Our move to new offices in Soho went well and both staff and
clients are happy with our new location. We are using our new space
more efficiently and there has been a material reduction in our
property overhead.
Outlook
The uncertainties mentioned above together with rising interest
rates, inflationary pressures and forecast recession are likely to
have a continuing impact on all markets in which the company
operates and will affect our ability to accurately forecast the
future. However, we are optimistic about our performance for the
coming year and we have started it with some excellent sales
instructions as well as client funds available to invest in
suitable propositions. Our management portfolios are likely to grow
both organically and from appointments to advise new clients.
We anticipate the volume of valuations will increase during the
year and hopefully this will be the year when we return to activity
in agreeing rating appeals.
Importantly we hope our new significant shareholder will in due
course become the source of additional income streams and we await
to see the progression of this during the year.
Our balance sheet and cash reserves remain strong and have been
of immense importance during the difficult times we have
experienced over the last two years.
Once again, on behalf of all at Fletcher King I would like to
thank our loyal clients for their continued support. On behalf of
the Board, I also congratulate our outstanding staff for their
foresight, expertise, dedication and hard work which is ultimately
why our clients appoint us.
DAVID FLETCHER
CHAIRMAN
30 August 2022
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 April 2022
Note 2022 2021
GBP000 GBP000
Revenue 2,967 2,264
Employee benefits expense (1,630) (1,262)
Depreciation expense (346) (281)
Gain recognised on remeasurement 125 -
of lease liability
Other operating expenses (1,014) (1,566)
Share based payment expense (10) -
--------- ---------
(2,875) (3,109)
Other operating income 39 25
Investment income 18 -
Finance income - 2
Finance expense (15) (16)
--------- ---------
Profit/(loss) before taxation 134 (834)
Taxation 18 146
--------- ---------
Profit/(loss) for the year 152 (688)
Other comprehensive income
Fair value (loss)/gain on financial
assets through - (101)
Other comprehensive income
Total comprehensive income for
the year attributable to equity
shareholders 152 (789)
Earnings per share
Basic 4 1.62p (7.47p)
Diluted 4 1.50p (7.47p)
Adjusted earnings per share
Basic 4 1.73p (8.57p)
Diluted 4 1.60p (8.57p)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 April 2022
2022 2021
GBP000 GBP000
Assets
Non-current assets
Software 76 -
Property, plant and equipment 266 12
Right-of-use asset 494 272
Financial assets 529 529
Deferred tax assets 32 -
1,397 813
------- -------
Current assets
Trade and other receivables 1,375 1,148
Corporation tax debtor 97 111
Cash and cash equivalents 3,365 2,892
------- -------
4,791 4,151
------- -------
Total assets 6,188 4,964
------- -------
Liabilities
Current liabilities
Trade and other payables 1,124 908
Provisions 25 100
Lease liabilities 610 577
1,759 1,585
------- -------
Non current liabilities
------- -------
Lease liabilities 402 -
------- -------
Total liabilities 2,161 1,585
------- -------
Shareholders' equity
Share capital 1,025 921
Share premium 522 140
Investment revaluation reserve (101) (101)
Share option reserve 10 -
Retained Earnings 2,571 2,419
------- -------
Total shareholders' equity 4,027 3,379
------- -------
Total equity and liabilities 6,188 4,964
------- -------
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 30 April 2022
2022 2021
GBP000 GBP000
Cash flows from operating activities
Profit/(loss) before taxation from
continuing operations 134 (834)
Adjustments for:
Movement in provision (75) 100
Depreciation and amortisation expense 346 281
Remeasurement of lease liability (125) -
Investment income (18) -
Finance income - (2)
Finance expense 15 16
Share based payment expense 10 -
------- -------
Cash flows from operating activities
before
movement in working capital 287 (439)
Increase in trade and other receivables (181) (468)
Increase in trade and other payables 216 219
------- -------
Cash generated from / (absorbed
by) operations 322 (688)
Taxation paid - -
------- -------
Net cash flows from operating
activities 322 (688)
------- -------
Cash flows from investing activities
Purchase of fixed assets (352) -
Investment income 18 -
Finance income - 2
Net cash flows from investing
activities (334) 2
------- -------
Cash flows from financing activities
Lease payments (1) -
Proceeds of share placing 547 -
Placing costs (61) -
Dividends paid to shareholders - (46)
------- -------
Net cash flows from financing
activities 485 (46)
------- -------
Net increase/(decrease) in cash
and cash equivalents 473 (732)
Cash and cash equivalents at start
of year 2,892 3,624
------- -------
Cash and cash equivalents at end
of year 3,365 2,892
------- -------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 April 2022
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 2020 921 140 - - 3,153 4,214
Loss for the year - - - - (688) (688)
Fair value loss
on financial assets
through other comprehensive
income - - (101) - - (101)
Equity dividends
paid 2 - - - - (46) (46)
Balance at 30 April
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
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 2022 or 30 April 2021.
The financial information for the year ended 30 April 2021 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 2022 is
derived from the audited statutory accounts for the year ended 30
April 2022 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/(loss)
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 2022 2021
GBP000 GBP000
Profit/(loss) before taxation 134 (834)
Add back: Share based payment expense
Include: Fair value (loss)/gain on financial 10 -
assets through OCI - (101)
Adjusted (loss)/profit before share-based
payment expense and taxation 144 (935)
Taxation 18 146
Adjusted profit/(loss) after tax for the
year 162 (789)
------- -------
The fair value loss on financial assets in the prior year
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 2022 2021
GBP000 GBP000
Equity dividends on ordinary shares:
Declared and paid during year
Ordinary final dividend for the year ended
30 April 2021: nil per share (2020: 0.50p) - 46
Interim dividend for the year ended 30 - -
April 2022: nil per share (2021: nil)
------- -------
- 46
------- -------
Proposed ordinary final dividend for the
year ended
30 April 2022: 0.50p per share 51
-------
4. Earnings per share
Number of shares 2022 2021
No No
Weighted average number of shares for basic
earnings per share 9,375,425 9,209,779
Share options 920,000 -
------------- ------------
Weighted average number of shares for diluted
earnings per share 10,129,779 9,209,779
============= ============
Earnings GBP000 GBP000
Profit/(loss) after tax for the year 152 (688)
(used to calculate the basic and diluted
earnings per share)
Add back: Share based payment expense 10 -
Include: Fair value (loss)/gain on financial
assets through OCI - (101)
Adjusted profit/(loss) after tax for the
year 162 (789)
------------- ------------
(used to calculate the adjusted basic and
diluted earnings per share)
Earnings per share
Basic 1.62p (7.47p)
Diluted 1.50p (7.47p)
Adjusted earnings per share
Basic 1.73p (8.57p)
Diluted 1.60p (8.57p)
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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