Fiske Regulatory News (FKE)

16 Feb 2006 07:01

Fiske PLC16 February 2006 Chairman's Statement The profit before tax for the half year ended 30 November 2005 amounted to£339,000 after amortisation of goodwill totalling £75,000. This compares with apre tax figure for the same period last year of £114,000. The Board is declaringa maintained interim dividend of 2p per share. In a relatively buoyant market, especially in the resources sector where we haveplaced great emphasis, our funds under management and our private client andinstitutional businesses have shown considerable improvement. During the halfyear we also acted as broker in the AIM flotation of Byotrol PLC and since thehalf year ended have undertaken a placing of Jubilee Platinum. We have invested in refurbishing and upgrading our offices notably to ensurethat all of our business generators work together in an improved officeenvironment. The cost of this improvement will be more than paid for by thesignificantly reduced rental that has been negotiated for the next five years. We continue actively to explore all opportunities to enhance shareholder value,but have no intention to expand at any cost. We look for earnings enhancement,growth of funds under management and the minimum dilution of our strong balancesheet. The second half of our financial year has started well and we view the futurefor the full year with confidence. M J Allen Chairman 16 February 2006 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 2005 which comprises the consolidated profitand loss account, the consolidated balance sheet, the consolidated cash flowstatement and related notes 1 to 5. 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 United Kingdom auditing standards and thereforeprovides a lower level of assurance than an audit. Accordingly, we do notexpress 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 2005. Deloitte & Touche LLP Chartered Accountants London 16 February 2006 Consolidated Profit and Loss Account for the six months ended 30 November 2005 Six months Six months Year ended ended ended 31 May 30 November 30 2005 2005 November 2004 Audited Unaudited Unaudited (restated) (restated) Note £'000 £'000 £'000TURNOVER 2,007 1,723 3,924 )Gross commission and similarincomeCommission payable (577 ) (529 ) (1,115 )Other income 249 210 199 1,679 1,404 3,008 OPERATING COSTS (617 ) (640 ) (1,259 )Staff costsDepreciation (12 ) (25 ) (53 )Amortisation of intangible 1 (91 ) (92 ) (184 )fixed assetsOther operating charges (730 ) (686 ) (1,452 ) (1,450 ) (1,443 ) (2,948 )OPERATING PROFIT/(LOSS) 229 (39 ) 60Gain on disposal of fixed asset 7 - 246investmentOther income from fixed asset 18 54 57investmentsInterest receivable and similar 90 101 203incomeInterest payable (5 ) (2 ) (8 ) PROFIT ON ORDINARY ACTIVITIES 339 114 558BEFORE TAXATIONTaxation charge on profit on (108 ) (30 ) (175 )ordinary activities PROFIT ON ORDINARY ACTIVITIES 231 84 383AFTER TAXATIONDividends paid 3 (166 ) (165 ) (331 )Retained profit for the period/ 65 (81 ) 52yearRetained profit brought forward 992 940 940Retained profit carried forward 1,057 859 992Basic earnings per share 2 2.8p 1.0p 4.6pDiluted earnings per share 2 2.8p 1.0p 4.6pHeadline earnings per share 2 3.5p 1.8p 4.1pHeadline diluted earnings per 2 3.5p 1.8p 4.1pshare Consolidated Balance Sheet 30 November 2005 Note As at As at As at 30 November 30 31 May 2005 November 2005 Unaudited 2004 Audited Unaudited (restated) (restated) £'000 £'000 £'000FIXED ASSETS 1 531 714 622Intangible assetsTangible assets 150 60 41Other investments 137 78 108 818 852 771 CURRENT ASSETS 6,927 13,504 16,643Market and client debtorsInvestments - 154 164Other debtors 450 288 380Cash at bank and in hand 4,058 4,441 3,575 11,435 18,387 20,762CREDITORS: amounts falling due (7,190) (14,511) (16,574)within one yearMarket and client creditorsOther creditors (743) (607) (704) (7,933) (15,118) (17,278)NET CURRENT ASSETS 3,502 3,269 3,484 TOTAL ASSETS LESS CURRENT 4,320 4,121 4,255LIABILITIES CAPITAL AND RESERVES 2,078 2,077 2,078Called up share capitalShare premium account 1,185 1,185 1,185Profit and loss account 1,057 859 992 EQUITY SHAREHOLDERS' FUNDS 4,320 4,121 4,255 Consolidated Cash Flow Statement for the six months ended 30 November 2005 RECONCILIATION OF OPERATING PROFIT/(LOSS) TO NET CASH INFLOW/(OUTFLOW) FROMOPERATING ACTIVITIES Six months ended Six months ended Year ended 30 November 2005 30 November 2004 31 May 2005 Unaudited Unaudited Audited £'000 £'000 £'000Operating profit/(loss) 229 (39) 60Depreciation charges 12 25 53Amortisation of intangible fixed assets 91 92 184Decrease/(increase) in current asset investment 164 - (164)Decrease/(increase) in debtors 9,647 (339) (3,406)(Decrease)/increase in creditors (9,361) 715 2,789Net cash inflow/(outflow) from operating 782 454 (484)activities CASH FLOW STATEMENT Six months ended Six months ended Year ended 30 November 2005 30 November 2004 31 May 2005 Unaudited Unaudited Audited £'000 £'000 £'000Net cash inflow/(outflow) from operating 782 454 (484)activitiesReturns on investment and servicing of finance 103 135 235Taxation - UK Corporation tax paid - - (162)Capital expenditure and financial investment (142) (14) 192Equity dividends paid (166) (140) (306)Increase/(decrease) in cash 577 435 (525)Increase/(decrease) in cash in the period 577 435 (525)Change in net cash 577 435 (525)Net funds brought forward 3,481 4,006 4,006Net funds carried forward 4,058 4,441 3,481 Notes for the six months ended 30 November 2005 1. INTANGIBLE FIXED ASSETS Goodwill Goodwill Fiscal Total Fund Other licence £'000 management acquisition £'000 acquisition £'000 £'000Cost 1,146 300 99 1,545At 1 June 2005At 30 November 2005 1,146 300 99 1,545Accumulated amortisation 621 225 77 923At 1 June 2005 37 38 16 91Charge for the periodAt 30 November 2005 658 263 93 1,014Net book value 488 37 6 531At 30 November 2005At 31 May 2005 525 75 22 622 2. EARNINGS PER ORDINARY SHARE Headline earnings per share have 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 ended Six months ended Year ended 30 November 2005 30 November 2004 31 May 2005 Unaudited Unaudited AuditedBasic earnings per ordinary share 2.8p 1.0p 4.6pAdd: Goodwill write-off 0.8p 0.8p 1.5pLess: Gain on disposal of fixed asset investment (0.1)p - (2.0)pafter taxationHeadline earnings per ordinary share 3.5p 1.8p 4.1pDiluted earnings per ordinary share 2.8p 1.0p 4.6pAdd: Goodwill write-off 0.8p 0.8p 1.5pLess: Gain on disposal of fixed asset investment (0.1)p - (2.0)pafter taxationHeadline diluted earnings per ordinary share 3.5p 1.8p 4.1 p 3. DIVIDEND The interim dividend of 2p per share will be paid on 24 March 2006 toshareholders on the register on 24 February 2006. The shares will be markedex-dividend on 22 February 2006. 4. CONTINGENT LIABILITY As previously reported in the Annual Report and Accounts for the year ended 31May 2005, the group has received a small number of claims. The theoreticalmaximum exposure of the group to these claims is £450,000 (31 May 2005:£600,000). 5. BASIS OF PREPARATION The interim accounts which are unaudited have been prepared on the basis of theaccounting policies set out in the 2005 group accounts, except that the companyhas adopted FRS21 - Events after the balance sheet date, and has restated thecomparitives accordingly. The financial information for the year ended 31 May2005 has been extracted from the company's statutory accounts (as restated). Theoriginal accounts have been delivered to the Registrar of Companies. The auditreport on the accounts for the year ended 31 May 2005 was unqualified. Thefinancial information contained in the Interim Report does not constitute thecompany's statutory accounts within the meaning of section 240 of the CompaniesAct 1985. This information is provided by RNS The company news service from the London Stock Exchange