Last checked at 9 Jul 2013 07:00
FLETCHER KING PLC
Preliminary Results for the Year Ending 30th April 2013
Highlights
·; Revenue for the year of £3.031 m (2012: £3.105m)
·; Profit before tax £292,000 (2012: £395,000)
·; Profit for the year of £227,000 (2012: £280,000)
·; Basic and diluted earnings per share of 2.46p (2012: 3.04p)
·; Final dividend of 0.75p per share. An interim dividend of 0.75p per share was paid and therefore the total ordinary dividend for the year will be 1.5p per share (2012: 1.5p)
Commenting on the results, David Fletcher, chairman of Fletcher King plc said:
"We consider the results for the year to be satisfactory given the current economic circumstances and in light of our comments contained in the trading statement issued on 22 April 2013. Whilst we remain cautious we believe that the coming year will see some improvement in the UK property market generally.
We will continue to strive for an increase in our recurring income received from property fund and asset management whilst at the same time seeking opportunities to enhance our transactional business.
As the market improves overheads will come under pressure and these will be carefully monitored.
I would like to thank our clients for their continued support and our hard working staff and directors for all their efforts."
END
For further information, please call:
David Fletcher/ Peter Bailey, Fletcher King 020 7493 8400
James Caithie, Cairn Financial Advisers LLP 020 7148 7900
Chairman's Statement
Results
Revenue for the year was £3.03m (2012: £3.11m) with profits before tax of £292,000 (2012: £395,000)
The board is proposing a final dividend of 0.75p per share (2012: 0.75p). The final dividend is subject to shareholder approval at the AGM and will be paid on 26 September 2013 to those shareholders on the register at close of business on 30 August 2013. With the interim of 0.75p per share (2012: 0.75p) already paid, the total ordinary dividend for the year will amount to 1.5p per share (2012: 1.5p).
The board consider the results for the year to be satisfactory bearing in mind the continuing difficult economic and market conditions under which the Company has been operating.
The Commercial Property Market
The commercial property market continues to be polarised between London, the South East and the remainder of the country. By the time of our AGM the UK property market will be six years into the recession and following an almost 50% drop in values only central London shops are back to their early 2007 prices and some properties outside London continue to decline in value.
Having said that there are some signs of green shoots appearing. We have just let two floors of a central Glasgow office building that have been empty for over three years. The rents have halved but at least some tenant demand has returned.
In the investment market there are positive signs of a greater allocation of funds to the property sector as Institutions question the likely returns from gilts and equities. Some sectors of the secondary market are seeing value increases as investors seek higher yields.
Industrial property continues to let throughout the country but retail demand remains very patchy as does tenant interest for out of town offices. Whilst tenant demand in Central London is reasonably strong, volumes are low and decision making is slow.
Business Overview
Investment transactions have been disappointing, particularly in the second half as highlighted in the trading statement of 22 April. A number of transactions that we hoped would have been agreed by the year end failed to materialise.
We started the new financial year with some good sales instructions and overall we expect our business in this sector to improve but it will not be without its difficulties.
Fund Management is progressing well and the regular quarterly fee income from this and Asset Management is of immense value to the business.
Rating had a good year with some significant appeals won.
The number of Bank valuations increased and although it is a very competitive market we see no reason why this should not continue.
Outlook
Whilst we remain cautious we believe that the coming year will see some improvement in the UK property market generally.
We will continue to strive for an increase in our recurring income received from property fund and asset management whilst at the same time seeking opportunities to enhance our transactional business.
As the market improves overheads will come under pressure, and as ever these will be carefully monitored.
I would like to thank our clients for their continued support and our hard working staff and directors for all their efforts.
David Fletcher
9 July 2013
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 April 2013
Note | 2013 | 2012 | |
£000 | £000 | ||
Revenue | 3,031 | 3,105 | |
Employee benefits expense | (1,641) | (1,673) | |
Depreciation expense | (43) | (46) | |
Other operating expenses | (1,085) | (1,012) | |
Operating profit | 262 | 374 | |
Income from investments | 11 | 11 | |
Finance income | 19 | 10 | |
Profit before taxation | 292 | 395 | |
Taxation | (65) | (115) | |
Profit for the year | 227 | 280 | |
Other comprehensive income for the year, net of tax | - | - | |
Total comprehensive income for the year attributable to equity shareholders
|
227 |
280 | |
Basic and diluted earnings per share | 3 | 2.46p | 3.04p |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 April 2013
2013 | 2012 | ||
£000 | £000 | ||
Assets | |||
Non-current assets | |||
Property, plant and equipment | 141 | 180 | |
Available-for-sale investments | 500 | 500 | |
Deferred tax assets | 63 | 63 | |
704 | 743 | ||
Current assets | |||
Trade and other receivables | 1,462 | 892 | |
Cash and cash equivalents | 2,571 | 2,812 | |
4,033 | 3,704 | ||
Total assets | 4,737 | 4,447 | |
Liabilities | |||
Current liabilities | |||
Trade and other payables | 810 | 576 | |
Current taxation liabilities | 53 | 59 | |
Other creditors | 549 | 576 | |
1,412 | 1,211 | ||
Total liabilities | 1,412 | 1,211 | |
Shareholders' equity | |||
Share capital | 921 | 921 | |
Share premium | 140 | 140 | |
Profit and Loss reserve | 2,264 | 2,175 | |
Total shareholders' equity | 3,325 | 3,236 | |
Total equity and liabilities | 4,737 | 4,447 | |
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 30 April 2013
2013 | 2012 | ||
£000 | £000 | ||
Cash flows from operating activities | |||
Profit before taxation from continuing operations | 292 | 395 | |
Adjustments for: | |||
Depreciation expense | 43 | 46 | |
Income from investments | (11) | (11) | |
Finance income | (19) | (10) | |
Cash flows from operating activities before movement in working capital |
305 |
420 | |
(Increase)/decrease in trade and other receivables | (570) | 172 | |
Increase in trade and other payables | 207 | 32 | |
Cash absorbed by/generated from operations | (58) | 624 | |
Taxation paid | (71) | (167) | |
Net cash flows from operating activities | (129) | 457 | |
Cash flows from investing activities | |||
Purchase of fixed assets | (4) | - | |
Purchase of investments | - | (250) | |
Finance income | 19 | 10 | |
Income from investments | 11 | 11 | |
Net cash flows from investing activities | 26 | (229) | |
Cash flows from financing activities | |||
Dividends paid to shareholders | (138) | (138) | |
Net cash flows from financing activities | (138) | (138) | |
Net decrease in cash and cash equivalents | (241) | 90 | |
Cash and cash equivalents at start of year | 2,812 | 2,722 | |
Cash and cash equivalents at end of year | 2,571 | 2,812 |
STATEMENT OF CHANGES IN EQUITY
For the year ended 30 April 2013
CONSOLIDATED
|
Note |
Share capital |
Share premium | Profit and loss reserve |
TOTAL EQUITY |
£000 | £000 | £000 | £000 | ||
Balance at 1 May 2011 | 921 | 140 | 2,033 | 3,094 | |
Total comprehensive income for the year | - | - | 280 | 280 | |
Equity dividends paid | 2 | - | - | (138) | (138) |
Balance at 30 April 2012 | 921 | 140 | 2,175 | 3,236 | |
Total comprehensive income for the year | - | - | 227 | 227 | |
Equity dividends paid | - | - | (138) | (138) | |
2 | |||||
Balance at 30 April 2013 | 921 | 140 | 2,264 | 3,325 | |
NOTES
1. Basis of preparation
The financial information set out above, which has been prepared on the basis of the accounting policies as set out in the prior year's accounts, does not comprise the company's financial statements for the year ended 30 April 2013. While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRSs), this announcement does not itself contain sufficient information to comply with IFRSs. Statutory financial statements for the previous financial year ended 30 April 2012 have been delivered to the Registrar of Companies. The auditors' report on those financial statements was unqualified and did not contain any statement under section 498(2) or (3) of the Companies Act 2006 and did not include references to any matters to which the auditor drew attention by way of emphasis. The statutory accounts for the year ended 30 April 2013 have not yet been delivered to the Registrar of Companies, nor have the auditors yet reported on them.
2. Dividends
Year ended 30 April | 2013 | 2012 |
£000 | £000 | |
Equity dividends on ordinary shares: | ||
Declared and paid during year | ||
Ordinary final dividend for the year ended 30 April 2012: 0.75p per share (2011: 0.75p) |
69 |
69 |
Interim dividend for the year ended 30 April 2013: 0.75p per share (2012: 0.75p) |
69 |
69 |
138 | 138 | |
Proposed ordinary final dividend for the year ended 30 April 2012: 0.75p per share |
69 |
|
3. Earnings per share
2013 No | 2012 No | |
Weighted average number of shares for basic and diluted earnings per share | 9,209,779 | 9,209,779 |
| £000 | £000 |
Earnings for basic and diluted earnings per share | 227 | 280 |
Basic and diluted earnings per share | 2.46p | 3.04p |