Fiske Regulatory News (FKE)

30 Aug 2006 08:00

Fiske PLC30 August 2006 The year ended 31 May 2006 resulted in a profit before tax of £513,000 comparedwith £558,000 (which included £246,000 from the final sale of London StockExchange shares) profit in the previous year. This was after a provision foramortisation of goodwill of £150,000 for the year. Of this provision half was inrespect of the goodwill incurred in the purchase of business assets four yearsago which are now fully amortised. The other half is in respect of the goodwillincurred in the purchase of the Ionian Group. In relation to the Ionian Group, of its original cost of £1,146,000 some£696,000 has been amortised leaving a carrying value of £450,000. The board, inaccordance with current accounting conventions, now assesses annually whetherthis is fair value. The fees generated by this division exceed £200,000 a yearand as a result the board is of the opinion that the carrying value of £450,000represents fair value. In December 2005 we renewed the lease on our premises at Salisbury House onfavourable terms for a further 5 years and took the opportunity to invest inopen planning and improving our office facilities. We believe that this willlead to greater productivity from our hardworking employees and associates. At our year end Philip Lovegrove (aged 69) retired from the board. Philip joinedFiske on the acquisition of the Ionian Group in June 2002 and has been a sourceof good business leads and wise counsel over the past four years. He will beremaining as a consultant to the company. At the same time Byron Fiske Harrison(aged 39) who recently joined us from Goldman Sachs in Singapore joined theboard as an Executive Director. The current year has started quietly but with our contingent liabilities nowpractically eliminated and our fee income steadily building up we are in aposition to face the current year with confidence. Our funds under management,which are mainly advisory funds, have shown significant growth in recent yearsand are a major source of strength for the company. M J Allen Chairman 29 August 2006 2006 2005 (restated) Notes £'000 £'000TURNOVERGross commission and similar income 1 4,420 3,924Commission payable 1 (1,237) (1,115)Other income 1 152 199 3,335 3,008OPERATING COSTSStaff costs 2 (1,300) (1,259)Amortisation of intangible fixed assets 10 (207) (184)Depreciation 11 (43) (53)Other operating charges (1,470) (1,452) (3,020) (2,948)OPERATING PROFIT 4 315 60Gain on disposal of fixed asset investment 13 8 263Other income from fixed asset investments 13 17 40Interest receivable and similar income 5 181 203Interest payable and similar charges 6 (8) (8) PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 513 558Taxation charge on profit on ordinary activities 7 (163) (175) PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION 350 383Dividends paid 8 (332) (331)Retained profit for the financial year 22 18 52Retained profit brought forward 992 940Retained profit carried forward 1,010 992Basic earnings per share 9 4.2p 4.6pDiluted earnings per share 9 4.2p 4.6pHeadline earnings per share 9 5.8p 4.1pHeadline diluted earnings per share 9 5.7p 4.1p All activities relate to continuing operations; there are no recognised gains orlosses other than the profit for the current and prior years as shown above. 2006 2005 (restated) Notes £'000 £'000FIXED ASSETSIntangible assets 10 697 622Tangible assets 11 192 41Other investments 13 176 108 1,065 771CURRENT ASSETSMarket and client debtors 14 6,518 16,643Other debtors 15 298 380Investments 16 - 164Cash at bank and in hand 17 4,265 3,575 11,081 20,762CREDITORS: amounts falling due within one yearMarket and client creditors 18 (7,190) (16,574)Other creditors 19 (683) (704) (7,873) (17,278)NET CURRENT ASSETS 3,208 3,484TOTAL ASSETS LESS CURRENT LIABILITIES 4,273 4,255PROVISION FOR LIABILITIES AND CHARGES 20 - -NET ASSETS 4,273 4,255CAPITAL AND RESERVESCalled up share capital 21 2,078 2,078Share premium account 22 1,185 1,185Profit and loss account 22 1,010 992EQUITY SHAREHOLDERS' FUNDS 22 4,273 4,255 These financial statements were approved by the Board of Directors on 29 August2006. Signed on behalf of the Board of Directors C F Harrison Chief Executive Officer 2006 2005 (restated) Notes £'000 £'000FIXED ASSETSIntangible assets 10 697 622Tangible assets 11 192 41Investment in subsidiaries 12 432 432Other investments 13 176 108 1,497 1,203CURRENT ASSETSMarket and client debtors 14 6,518 16,643Other debtors 15 298 380Investments 16 - 164Cash at bank and in hand 17 4,265 3,575 11,081 20,762CREDITORS: amounts falling due within one yearMarket and client creditors 18 (7,190) (16,574)Other creditors 19 (1,168) (1,189) (8,358) (17,763)NET CURRENT ASSETS 2,723 2,999TOTAL ASSETS LESS CURRENT LIABILITIES 4,220 4,202PROVISION FOR LIABILITIES AND CHARGES 20 - -NET ASSETS 4,220 4,202CAPITAL AND RESERVESCalled up share capital 21 2,078 2,078Share premium account 22 1,185 1,185Profit and loss account 22 957 939EQUITY SHAREHOLDERS' FUNDS 22 4,220 4,202 These financial statements were approved by the Board of Directors on 29 August2006. Signed on behalf of the Board of Directors C F Harrison Chief Executive Officer Cash 2006 2005 flow notes £'000 £'000Net cash inflow/(outflow) from operating activities 1 1,654 (484)Returns on investment and servicing of finance 2 190 235Taxation - UK corporation tax paid (185) (162)Capital expenditure and financial investment 2 (543) 192Equity dividends paid (332) (306)Increase/(decrease) in cash 3, 4 784 (525) 1. RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES 2006 2005 £'000 £'000Operating profit 315 60Depreciation charges 43 53Amortisation of intangible fixed assets 207 184Decrease/(increase) in current asset investments 164 (164)Decrease/(increase) in debtors 10,204 (3,406)(Decrease)/increase in creditors (9,279) 2,789Net cash inflow/(outflow) from operating activities 1,654 (484) 2. GROSS CASH FLOWS 2006 2005 £'000 £'000Returns on investments and servicing of financeInterest received 181 203Interest paid (8) (8)Dividends received 17 40 190 235Capital expenditure and financial investmentProceeds from sale of London Stock Exchange shares - 246Payments to acquire tangible fixed assets (194) (37)Payments to acquire intangible fixed assets (282) -Purchase of fixed asset investments (290) (95)Proceeds from sale of fixed asset investments 223 78 (543) 192 3. ANALYSIS OF CHANGES IN NET FUNDS At 1 June Cash At 31 May 2005 flows 2006 £'000 £'000 £'000Cash at bank and in hand 3,575 690 4,265Bank overdrafts (94) 94 - 3,481 784 4,265 4. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS 2006 2005 Note £'000 £'000Increase/(decrease) in cash in the year 3 784 (525)Change in net cash 784 (525)Net funds at 1 June 2005 3,481 4,006Net funds at 31 May 2006 4,265 3,481 Note to the financial statement for the year ended 31 May 2006. The above results for the year ended 31 May 2006 are an abridged version of theGroup's audited statutory financial statements which have not yet been filedwith the Registrar of Companies. The balance sheet and profit and loss accountdo not constitute statutory financial statements within the meaning of Section240 of the Companies Act 1985 (as amended). These statements have been preparedon a consistent basis with the accounting policies as stated in the previous andcurrent years' financial statements. The results for the years ended 31 May 2006 and 2005 have been extracted fromthe financial statements of the company on which unqualified reports from theauditors have been issued and which in respect of 31 May 2005 accounts have beenfiled with the Registrar of Companies. Copies of this announcement are available from the Group's registered office atSalisbury House, London Wall, London, EC2M 5QS. The Annual Report and Accounts will be sent to shareholders on 1 September 2006. Enquiries: Clive Harrison (Chief Executive Officer) - 020 7448 4700. This information is provided by RNS The company news service from the London Stock Exchange