Last checked at 13 Feb 2014 14:00
13 February 2014
Fiske Plc
('Fiske' or 'the Company')
Interim Results
Fiske Plc (the 'Company') announces its interim results for the six months ended 30 November 2013. In accordance with rule 26 of the AIM Rules for Companies this information is also available, under the Investors section, at the Company's website, http://www.fiskeplc.com .
For further information please contact:
• Salmaan Khawaja/David Hignell Grant Thornton UK LLP (Nominated Adviser)
(tel: 020 7383 5100)
• Gerard Luchini, Fiske Plc - Compliance Officer
(tel: 020 7448 4700)
Chairman's Statement
The half year under review has resulted in profits on ordinary activities after tax of £202,000. This is an improvement when set against £175,000 in the whole of last year and a break even position in the first half to November 2012. The additional net other comprehensive income of £92,000 reflects a revaluation, after a deferred tax provision, of our holding of 3,618 Euroclear shares. A recent share buy back by that company included purchases at €750 per share, still a significant discount to book asset value, but a more realistic benchmark for valuation purposes than that we have adopted. We remain confident of the long term value of this major investment.
In my statement last August I reflected on the buoyancy of the main equity markets and the questionable expectations of future corporate profits. That situation remains, but as in August the timing of any change remains uncertain. The withdrawal of "Quantitative Easing" in the US has commenced in a measured and gradual process and, as yet, the market reaction has been muted, partially influenced by the promise to keep interest rates at the current, and historically unheard of, levels for longer than previously anticipated. In our view market levels are not supported by fundamentals but mainly by liquidity. Not only is the level of US corporate profitability at an all-time high, the amount of "non recurring" items excluded from that figure is equally at an unusually inflated level. As a result we remain cautious.
With respect to our prospects for the second half of the year we do not make forecasts. However we will pay a first interim dividend of 0.35p per share, a modest increase on last year's level. The shares will be marked ex-dividend on the 19 February 2014 and the record date will be 21 February 2014.
The Board has always been conscious of the need for succession planning and in September 2012 we appointed James Harrison to be Chief Operating Officer. It is now intended that at our Annual General Meeting this year he will succeed me as Chief Executive. I will remain as Executive Chairman and will continue to work full time and in particular will remain as Investment Director.
It is also the decision of the Board to invite my son, Alexander Fiske-Harrison, to join the Board as a non-executive director in April of this year.
Stephen Cockburn who has served as a director of Fiske PLC, and prior to that of Fiske and Co Ltd since 1998, will be retiring at our next Annual General Meeting. Stephen has had a distinguished career in the City of London for over 50 years and as a Director of Fiske has offered us wise and helpful advice and we are very grateful for his services.
C F Harrison Chairman
13 February 2014
Consolidated Statement of Comprehensive Income
for the six months ended 30 November 2013
| Six months ended 30 November 2013 Unaudited | Six months ended 30 November 2012 Unaudited | Year ended 31 May 2013 Audited | |
£'000 | £'000 | £'000 | ||
Fee and commission income | 2,061 | 1,779 | 3,950 | |
Fee and commission expenses | (532) | (463) | (1,075) | |
Net fee and commission income | 1,529 | 1,316 | 2,875 | |
Other income | 102 | 109 | 176 | |
Total revenue | 1,631 | 1,425 | 3,051 | |
Profit on investments held for trading | 3 | 54 | 82 | |
Operating expenses | (1,472) | (1,511) | (2,958) | |
Operating profit/(loss) | 162 | (32) | 175 | |
Investment revenue | 66 | 26 | 34 | |
Finance income | 12 | 11 | 24 | |
Finance costs | (1) | - | (1) | |
Profit on ordinary activities before taxation | 239 | 5 | 232 | |
Taxation | (37) | (3) | (57) | |
Profit on ordinary activities after taxation | 202 | 2 | 175 | |
Other comprehensive income/(expense) | ||||
Movement in unrealised appreciation of investments | 115 | 1 | 488 | |
Deferred tax on movement in unrealised appreciation of investments |
(23) |
- |
(60) | |
Net other comprehensive income | 92 | 1 | 428 | |
Total comprehensive income for the period/year attributable to equity shareholders |
294 |
3 |
603 | |
Earnings per ordinary share (pence), excluding other comprehensive income | ||||
Basic | 2.4p | 0.0p | 2.1p | |
Diluted | 2.4p | 0.0p | 2.1p |
All results are from continuing operations and are attributable to equity shareholders of the parent company.
Consolidated Statement of Changes in Equity
| Share Capital | Share Premium | Revaluation Reserve | Retained Earnings | Total Equity |
£'000 | £'000 | £'000 | £'000 | £'000 | |
Balance at 1 December 2012 | 2,115 | 1,222 | 775 | 207 | 4,319 |
Profit on ordinary activities after taxation | - | - | - | 173 | 173 |
Other comprehensive income | - | - | 427 | - | 427 |
Total comprehensive income for period | - | - | 427 | 173 | 600 |
Dividends paid | - | - | - | (21) | (21) |
Balance at 31 May 2013 | 2,115 | 1,222 | 1,202 | 359 | 4,898 |
Profit on ordinary activities after taxation | - | - | - | 202 | 202 |
Other comprehensive income | - | - | 92 | - | 92 |
Total comprehensive income for period | - | - | 92 | 202 | 294 |
Dividends paid | - | - | - | (21) | (21) |
Balance at 30 November 2013 | 2,115 | 1,222 | 1,294 | 540 | 5,171 |
Consolidated Statement of Financial Position
30 November 2013
| As at 30 November 2013 Unaudited | As at 30 November 2012 Unaudited | As at 31 May 2013 Audited | |
£'000 | £'000 | £'000 | ||
Non-current assets | ||||
Goodwill | 395 | 395 | 395 | |
Property, plant and equipment | 41 | 53 | 38 | |
Available-for-sale investments | 2,411 | 1,225 | 2,296 | |
Total non-current assets | 2,847 | 1,673 | 2,729 | |
Current assets | ||||
Trade and other receivables | 12,080 | 4,492 | 12,514 | |
Investments held for trading | 282 | 201 | 35 | |
Cash and cash equivalents | 3,395 | 3,278 | 2,731 | |
Total current assets | 15,757 | 7,971 | 15,280 | |
Current liabilities | ||||
Trade and other payables | 13,033 | 5,074 | 12,772 | |
Current tax liabilities | 90 | 24 | 52 | |
Total current liabilities | 13,123 | 5,098 | 12,824 | |
Net current assets | 2,634 | 2,873 | 2,456 | |
Non-current liabilities | ||||
Deferred tax liabilities | 310 | 227 | 287 | |
Total non-current liabilities | 310 | 227 | 287 | |
Net assets | 5,171 | 4,319 | 4,898 | |
Equity | ||||
Share capital | 2,115 | 2,115 | 2,115 | |
Share premium | 1,222 | 1,222 | 1,222 | |
Revaluation reserve | 1,294 | 775 | 1,202 | |
Retained earnings | 540 | 207 | 359 | |
Shareholders' equity | 5,171 | 4,319 | 4,898 |
Consolidated Cash Flow Statement
For the six months ended 30 November 2013
| Six months ended 30 November 2013 Unaudited | Six months ended 30 November 2012 Unaudited | Year ended 31 May 2013 Audited |
£'000 | £'000 | £'000 | |
Operating profit/(loss) | 162 | (32) | 175 |
Depreciation of property plant and equipment | 13 | 19 | 39 |
(Increase)/decrease in investments held for trading | (247) | 50 | 216 |
Decrease/(increase) in receivables | 434 | 1,289 | (6,733) |
Increase/(decrease) in payables | 263 | (1,200) | 6,498 |
Cash generated from operations | 625 | 126 | 195 |
Tax paid | (1) | - | (26) |
Net cash generated from operating activities | 624 | 126 | 169 |
Investing activities | |||
Interest received | 12 | 11 | 24 |
Investment income received | 66 | 26 | 34 |
Interest paid | (1) | - | (1) |
Purchases of available-for-sale investments | - | - | (585) |
Purchases of property, plant and equipment | (16) | (36) | (40) |
Net cash generated from/(used in) investing activities | 61 | 1 | (568) |
Financing activities | |||
Dividends paid | (21) | (85) | (106) |
Net cash used in financing activities | (21) | (85) | (106) |
Net increase/(decrease) in cash and cash equivalents | 664 | 42 | (505) |
Cash and cash equivalents at beginning of period | 2,731 | 3,236 | 3,236 |
Cash and cash equivalents at end of period/year | 3,395 | 3,278 | 2,731 |
Notes to the Interim Financial Statements
1. Basis of preparation
The financial information contained in this half-yearly financial report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006.
The figures and financial information for the period ended 31 May 2013 are extracted from the latest published audited financial statements of the Group and do not constitute the statutory financial statements for that period. The audited financial statements for the period ended 31 May 2013 have been filed with the Registrar of Companies. The report of the independent auditors on those financial statements contained no qualification or statement under section 498(2) or section 498(3) of the Companies Act 2006.
The condensed set of financial statements has been prepared using accounting policies consistent with International Financial Reporting Standards (IFRSs) as adopted by the European Union. The financial information has been prepared under the historical cost convention, except for the revaluation of certain financial instruments. The same accounting policies, presentation and methods of computation are followed in these condensed set of financial statements as applied in the Group's latest, and intends to use in preparing its next, annual audited financial statements. While the financial figures included in this half-yearly report have been computed in accordance with IFRSs applicable to interim periods, this half-yearly report does not contain sufficient information to constitute an interim financial report as that term is defined in IAS 34.
The directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing this half-yearly financial report.
2. Taxation
The tax charge for the six months to 30 November 2013 reflects all the necessary provisions for current tax, taking into account the availability of losses brought forward, and movements in deferred tax. In arriving at the effective tax rate account has been taken of the change in the rate of tax charged and the disallowance of the cost of share-based payments charged to the consolidated statement of comprehensive income.
3. Dividends paid
Dividends paid of £21,000 (2012 - £85,000) refer to the second interim dividend paid for the preceding year.
The Interim dividend of 0.35p will be paid on 21 March 2014 to shareholders on the register on 21 February 2014. The shares will be marked ex-dividend on 19 February 2014.