Last checked at 11 Feb 2011 09:15
Fiske PLC
11 February 2011
Fiske Plc
('Fiske' or 'the Company')
Interim Results
Fiske Plc (the 'Company') announces its interim results for the six months ended 30 November 2010. 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:
• Gerry Beaney/David Hignell Grant Thornton Corporate Finance (Nominated Adviser)
(tel: 020 7383 5100)
• Gerard Luchini, Fiske Plc - Compliance Officer
(tel: 020 7448 4700)
Chairman's Statement
The first half of the current financial year, which ended on 30 November 2010, showed a welcome improvement on the same period last year. The pre-tax profit for the latest half year was £369,000 compared with £286,000 in the corresponding period of 2009. This was due to increased private client commissions earned particularly in the second quarter and costs being held level.
We anticipate that 2011 will be a difficult year for markets as the major economic uncertainties in the world remain unresolved. In the Eurozone there is the problem of potential sovereign defaults and the imperative need for Governments throughout the EU to curtail expenditure and raise taxes. In the USA the problems lie in the possibility of major defaults in the municipal bond market and the continued crisis in the housing market. At the same time the ability of the US Treasury and Federal Reserve to continue to create more money is being called into question. Lastly the ability of the Chinese economy to continue to grow at its current breakneck speed is looking doubtful and inflation there and indeed worldwide is a serious and growing problem. At some stage in 2011 some or all of these factors may have a significant impact on the banking sector and markets will be adversely affected.
We feel sufficiently confident of our own outlook to declare a maintained 2p first interim dividend, but forecasting profits in our industry is notoriously unreliable and we will only say that both December 2010 and January 2011 were in fact surprisingly satisfactory. The dividend will be covered 1½ times by earnings per share of 3p.
The shares will be traded ex-dividend on 23 February 2011 and the dividend will be paid on 18 March 2011 to shareholders on the register on 25 February 2011.
C F Harrison Chairman
11 February 2011
Independent Review Report to Fiske plc
We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 November 2010 which comprise the consolidated statement of comprehensive income, the consolidated statement of changes in equity, the consolidated statement of financial position, the consolidated cash flow statement and the related notes 1 to 3. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
This report is made solely to the Company in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the company those matters we are required to state to them in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work, for this report, or for the conclusions we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the AIM Rules of the London Stock Exchange.
As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report have been prepared in accordance with the accounting policies the Group intends to use in preparing its next annual financial statements.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 November 2010 is not prepared, in all material respects, in accordance with the AIM Rules of the London Stock Exchange.
Deloitte LLP
Chartered Accountants and Statutory Auditors
London, United Kingdom
11 February 2011
Consolidated Statement of Comprehensive Income
for the six months ended 30 November 2010
| Six months ended 30 November 2010 Unaudited | Six months ended 30 November 2009 Unaudited | Year ended 31 May 2010 Audited | |
£'000 | £'000 | £'000 | ||
Fee and commission income | 2,226 | 2,043 | 4,044 | |
Fee and commission expenses | (504) | (476) | (927) | |
Net fee and commission income | 1,722 | 1,567 | 3,117 | |
Other income | 100 | 97 | 159 | |
Total revenue | 1,822 | 1,664 | 3,276 | |
Profit on disposal of available-for-sale investments | - | 3 | 3 | |
Impairment on available-for-sale investments | - | - | (15) | |
Profit on investments held for trading | 23 | 101 | 115 | |
Operating expenses | (1,504) | (1,520) | (3,009) | |
Operating profit | 341 | 248 | 370 | |
Investment revenue | 18 | 28 | 44 | |
Finance income | 13 | 13 | 27 | |
Finance costs | (3) | (3) | (6) | |
Profit on ordinary activities before taxation | 369 | 286 | 435 | |
Taxation | (115) | (73) | (128) | |
Profit on ordinary activities after taxation | 254 | 213 | 307 | |
Other comprehensive income/(expense) | ||||
Movement in unrealised appreciation of investments | 6 | 2 | 10 | |
Deferred tax on movement in unrealised appreciation of investments |
(1) |
- |
(2) | |
Net other comprehensive income | 5 | 2 | 8 | |
Total comprehensive income for the period/year attributable to equity shareholders |
259 |
215 |
315 | |
Earnings per ordinary share (pence) | ||||
Basic | 3.0p | 2.5p | 3.6p | |
Diluted | 3.0p | 2.5p | 3.6p |
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 2009 | 2,109 | 1,216 | 724 | 564 | 4,613 |
Profit on ordinary activities after taxation | - | - | - | 94 | 94 |
Other comprehensive income | - | - | 6 | - | 6 |
Total comprehensive income for period | - | - | 6 | 94 | 100 |
Dividends paid | - | - | - | (168) | (168) |
Balance at 31 May 2010 | 2,109 | 1,216 | 730 | 490 | 4,545 |
Profit on ordinary activities after taxation | - | - | - | 254 | 254 |
Other comprehensive income | - | - | 5 | - | 5 |
Total comprehensive income for period | - | - | 5 | 254 | 259 |
Dividends paid | - | - | - | (169) | (169) |
Balance at 30 November 2010 | 2,109 | 1,216 | 735 | 575 | 4,635 |
Consolidated Statement of Financial Position
30 November 2010
| As at 30 November 2010 Unaudited | As at 30 November 2009 Unaudited | As at 31 May 2010 Audited | |
£'000 | £'000 | £'000 | ||
Non-current assets | ||||
Goodwill | 395 | 380 | 395 | |
Property, plant and equipment | 65 | 53 | 32 | |
Available-for-sale investments | 1,227 | 1,236 | 1,228 | |
Total non-current assets | 1,687 | 1,669 | 1,655 | |
Current assets | ||||
Trade and other receivables | 10,124 | 9,992 | 9,042 | |
Investments held for trading | 209 | 245 | 324 | |
Cash and cash equivalents | 3,746 | 3,327 | 4,796 | |
Total current assets | 14,079 | 13,564 | 14,162 | |
Current liabilities | ||||
Trade and other payables | 10,632 | 10,277 | 10,888 | |
Current tax liabilities | 239 | 79 | 121 | |
Total current liabilities | 10,871 | 10,356 | 11,009 | |
Net current assets | 3,208 | 3,208 | 3,153 | |
Non-current liabilities | ||||
Deferred tax liabilities | 260 | 264 | 263 | |
Total non-current liabilities | 260 | 264 | 263 | |
Net assets | 4,635 | 4,613 | 4,545 | |
Equity | ||||
Share capital | 2,109 | 2,109 | 2,109 | |
Share premium | 1,216 | 1,216 | 1,216 | |
Revaluation reserve | 735 | 724 | 730 | |
Retained earnings | 575 | 564 | 490 | |
Shareholders' equity | 4,635 | 4,613 | 4,545 |
Consolidated Cash Flow Statement
For the six months ended 30 November 2010
| Six months ended 30 November 2010 Unaudited | Six months ended 30 November 2009 Unaudited | Year ended 31 May 2010 Audited |
£'000 | £'000 | £'000 | |
Operating profit | 341 | 248 | 370 |
Profit on disposal of available-for-sale investments | - | 3 | 3 |
Depreciation of property plant and equipment | 33 | 23 | 48 |
(Increase)/decrease in investments held for trading | 115 | (58) | (137) |
Impairment of available-for-sale investments | - | - | 15 |
(Increase)/decrease in receivables | (1,082) | 672 | 1,622 |
Increase/(decrease) in payables | (256) | (565) | 52 |
Cash (used in)/generated from operations | (849) | 323 | 1,973 |
Interest paid | (3) | (3) | (6) |
Tax paid | - | (10) | (26) |
Net cash (used in)/generated from operating activities | (852) | 310 | 1,941 |
Investing activities | |||
Interest received | 13 | 13 | 27 |
Investment income received | 18 | 28 | 44 |
Interest paid | - | - | (6) |
Proceeds on disposal of available-for-sale investments | 6 | 23 | 23 |
Purchases of available-for-sale investments | - | (20) | (20) |
Purchases of property, plant and equipment | (66) | (1) | (4) |
Payments to acquire subsidiary undertaking | - | - | (15) |
Net cash (used in)/generated from investing activities | (29) | 43 | 49 |
Financing activities | |||
Dividends paid | (169) | (169) | (337) |
Net cash used in financing activities | (169) | (169) | (337) |
Net (decrease)/increase in cash and cash equivalents | (1,050) | 184 | 1,653 |
Cash and cash equivalents at beginning of period | 4,796 | 3,143 | 3,143 |
Cash and cash equivalents at end of period/year | 3,746 | 3,327 | 4,796 |
Notes to the Interim Financial Statements
1. Basis of preparation
The financial information contained in this half year 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 2010 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 2010 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 financial information has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) as adopted by the European Union and IFRIC interpretations. The financial information has been prepared under the historical cost convention, except for the revaluation of certain financial instruments. The statutory financial statements are prepared in accordance with IFRSs as adopted by the European Union.
Except as described below, the Group has applied consistent accounting policies in preparing the interim financial statements for the six months ended 30 November 2010, the comparative information for the six months ended 30 November 2009, and the financial statements for the period ended 31 May 2010.
The Group applies revised IAS 1 Presentation of Financial Statements, which became effective as of 1 January 2009. As a result, the Company presents in the statement of changes in equity all owner changes in equity, whereas all non-owner changes in equity are presented in the statement of comprehensive income. This standard is concerned with presentation only and does not have any impact on the results or net assets of the Company. Comparative information has been re-presented where applicable so that it also is in conformity with the revised standard.
As permitted, the Company has chosen not to adopt IAS 34 "Interim Financial Statements" in preparing this interim financial information.
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 these half-yearly financial statements.
2. Taxation
The tax charge for the six months to 30 November 2010 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 £169,000 (2009 - £169,000) refer to the second interim dividend paid for the preceding year.
The Interim dividend of 2p will be paid on 18 March 2011 to shareholders on the register on 25 February 2011. The shares will be marked ex-dividend on 23 February 2011.