Fiske Regulatory News (FKE)

14 Feb 2007 09:07

Fiske PLC14 February 2007 Chairman's Statement I am pleased to report that in spite of a slow start to the half year ending 30November 2006, the second quarter was very positive and the pre-tax profit forthe whole six month period recovered substantially to £300,000. The Board isdeclaring a maintained interim dividend of 2p per share which is fully coveredby earnings. We were pleased to bring to the Alternative Investment Market, Plant Impact PLCfor whom we acted as brokers and raised some £4 million for the company. Theshares were placed with our institutional and private clients at 38p per shareand currently stand at 70p. The half year generally was marked by control of our cost base and a steadyincrease in our recurring fees in absolute terms and as a percentage of ourrevenues and by further improvement in our funds under management. Naturallytransaction commissions represent the major part of our revenues but othersources of revenue accounted for some 40% of the total for the period underreview. We are now nearly four years into a bull market and in some cases valuations arebeginning to look stretched. However there remains abundant liquidity, corporateprofits are still growing and merger and acquisitions activity is buoyant.Inflation is an issue ahead, but we remain cautiously optimistic especially forthe resource sector which we do not see as a bubble, although some of theexploration stocks have been getting overvalued. A key factor in the strength ofthe resource sector is the emergence of the BRIC economies, those of Brazil,Russia, India and China and the importance that their industrial revolutionshave upon the demand for raw materials. This trend has further to run. The outlook for markets seems set fair for the period to the end of ourfinancial year at the end of May. At the same time the measures we have adoptedin the first half of the year to improve profitability should start to showresults in the second half. Accordingly we look forward to the future with confidence. M J AllenChairman 14 February 2007 Independent Review Report to Fiske plc Introduction We have been instructed by the company to review the financial information forthe six months ended 30 November 2006 which comprises the consolidated profitand loss account, the consolidated balance sheet, the consolidated cash flowstatement and related notes 1 to 4. We have read the other information containedin the interim report and considered whether it contains any apparentmisstatements or material inconsistencies with the financial information. This report is made solely to the company, in accordance with Bulletin 1999/4issued by the Auditing Practices Board. Our work has been undertaken so that wemight state to the company those matters we are required to state to them in anindependent review report and for no other purpose. To the fullest extentpermitted by law, we do not accept or assume responsibility to anyone other thanthe company, for our review work, for this report, or for the conclusion we haveformed. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by, the directors. The directorsare also responsible for ensuring that the accounting policies and presentationapplied to the interim figures are consistent with those applied in preparingthe preceding annual accounts except where any changes, and the reasons forthem, are disclosed. Review work performed We conducted our review in accordance with the guidance contained in Bulletin1999/4 issued by the Auditing Practices Board for use in the United Kingdom. Areview consists principally of making enquiries of group management and applyinganalytical procedures to the financial information and underlying financial dataand, based thereon, assessing whether the accounting policies and presentationhave been consistently applied unless otherwise disclosed. A review excludesaudit procedures such as tests of controls and verification of assets,liabilities and transactions. It is substantially less in scope than an auditperformed in accordance with International Standards on Auditing (UK andIreland) and therefore provides a lower level of assurance than an audit.Accordingly, we do not express an audit opinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 30 November 2006. Deloitte & Touche LLPChartered AccountantsLondon 14 February 2007 Consolidated Profit and Loss Accountfor the six months ended 30 November 2006 Notes Six months ended Six months ended Year ended 30 November 2006 30 November 2005 31 May 2006 Unaudited Unaudited Audited £'000 £'000 £'000TURNOVER Gross commission and similar income 1,971 2,007 4,420 Commission payable (502) (577) (1,237) Other income 137 249 152 1,606 1,679 3,335 OPERATING COSTS Staff costs (705) (617) (1,300) Depreciation (28) (12) (207) Amortisation of intangible fixed assets 1 (109) (91) (43) Other operating charges (580) (730) (1,470) (1,422) (1,450) (3,020) OPERATING PROFIT 184 229 315 (Loss)/gain on disposal of fixed asset investment (3) 7 8 Other income from fixed asset investments 22 18 17 Interest receivable and similar income 98 90 181 Interest payable (2) (5) (8) Profit on disposal of fixed assets 1 - - PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 300 339 513 Taxation charge on profit on ordinary activities (122) (108) (163) PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION 178 231 350 Basic earnings per share 2 2.2p 2.8p 4.2p Diluted earnings per share 2 2.2p 2.8p 4.2p Headline earnings per share 2 2.7p 3.5p 5.8p Headline diluted earnings per share 2 2.6p 3.5p 5.7p All activities relate to continuing operations; there are no recognised gains orlosses other than the profit for the current and preceding periods as shownabove. Consolidated Balance Sheet30 November 2006 Note As at As at As at 30 November 2006 30 November 2005 31 May 2006 Unaudited Unaudited Audited £'000 £'000 £'000FIXED ASSETS Intangible assets 1 588 531 697Tangible assets 171 150 192Other investments 163 137 176 922 818 1,065CURRENT ASSETS Market and client debtors 8,779 6,927 6,518Investments 451 - -Other debtors 348 450 298Cash at bank and in hand 3,625 4,058 4,265 13,203 11,435 11,081CREDITORS: amounts falling due within one year Market and client creditors (9,070) (7,190) (7,190) Other creditors (770) (743) (683) (9,840) (7,933) (7,873) NET CURRENT ASSETS 3,363 3,502 3,208 TOTAL ASSETS LESS CURRENT LIABILITIES 4,285 4,320 4,273 CAPITAL AND RESERVES Called up share capital 2,078 2,078 2,078 Share premium account 1,185 1,185 1,185 Profit and loss account 1,022 1,057 1,010 EQUITY SHAREHOLDERS' FUNDS 4,285 4,320 4,273 Consolidated Cash Flow Statementfor the six months ended 30 November 2006 RECONCILIATION OF OPERATING PROFIT TO NET CASH (OUTFLOW)/INFLOW FROM OPERATINGACTIVITIES Six months Six months Year ended ended ended 30 November 30 November 31 May 2006 2005 2006 Unaudited Unaudited Audited £'000 £'000 £'000 Operating profit 184 229 315 Depreciation charges 28 12 43 Amortisation of intangible fixed assets 109 91 207 (Increase)/decrease in current asset investment (451) 164 164 (Increase)/dec rease in debtors (2,303) 9,647 10,204 Increase/(decrease) in creditors 1,829 (9,361) (9,279) Net cash (outflow)/inflow from operating activities (604) 782 1,654 CASH FLOW STATEMENT Six months Six months Year ended ended ended 30 November 30 November 31 May 2006 2005 2006 Unaudited Unaudited Audited £'000 £'000 £'000Net cash (outflow)/inflow from operating activities (604) 782 1,654 Returns on investment and servicing of finance 118 103 190 Taxation - UK Corporation tax paid - - (185) Capital expenditure and financial investment 12 (142) (543) Equity dividends paid (166) (166) (332) (Decrease)/increase in cash (640) 577 784 (Decrease)/increase in cash in the period (640) 577 784 Change in net cash (640) 577 784 Net funds brought forward 4,265 3,481 3,481 Net funds carried forward 3,625 4,058 4,265 Notes for the six months ended 30 November 2006 1. INTANGIBLE FIXED ASSETS Goodwill Goodwill Altimis Total Fund Other licence £'000 management acquisition and acquisition £'000 system £'000 £'000 At 1 June 2006 1,146 300 282 1,728 At 30 November 2006 1,146 300 282 1,728 Accumulated amortisation At 1 June 2006 696 300 35 1,031 Charge for the period 38 - 71 109 At 30 November 2006 734 300 106 1,140 Net book value At 30 November 2006 412 - 176 588 At 31 May 2006 450 - 247 697 2. EARNINGS PER ORDINARY SHARE Headline earnings per share has been calculated in accordance with thedefinition in the Institute of Investment Management Research ("IIMR") Statementof Investment Practice No. 1, "The definition of IIMR Headline Earnings", inorder to take out the exceptional gain arising on the disposal of certain fixedasset investments and any effects of goodwill as follows: Six months Six months Year ended ended ended 30 November 30 November 31 May 2006 2005 2006 Unaudited Unaudited Audited Basic earnings per ordinary share 2.2p 2.8p 4.2p Add: Goodwill write-off 0.5p 0.8p 1.6p Less: Gain on disposal of fixed asset investment after taxation - (0.1)p - Headline earnings per ordinary share 2.7p 3.5p 5.8p Diluted earnings per ordinary share 2.2p 2.8p 4.2p Add: Goodwill write-off 0.4p 0.8p 1.5p Less: Gain on disposal of fixed asset investment after taxation - (0.1)p - Headline diluted earnings per ordinary share 2.6p 3.5p 5.7p 3. DIVIDEND Dividends paid of £166,000 (2005 - £166,000) refer to the final dividend paidfor the preceding year. The interim dividend of 2p per share will be paid on 16 March 2007 toshareholders on the register on 23 February 2007. The shares will be markedex-dividend on 21 February 2007. 4. BASIS OF PREPARATION The interim accounts which are unaudited have been prepared on the basis of theaccounting policies set out in the 2006 group accounts. The financialinformation for the year ended 31 May 2006 has been extracted from the company'sstatutory accounts. The original accounts have been delivered to the Registrarof Companies. The audit report on the accounts for the year ended 31 May 2006was unqualified. The financial information contained in the Interim Report doesnot constitute the company's statutory accounts within the meaning of section240 of the Companies Act 1985. 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