Annual Report and Accounts

22 Aug 2007 10:47

Fiske PLC22 August 2007 Chairman's Statement I am pleased to report a substantial improvement in our profitability for theyear ended 31 May 2007. Profit before tax increased from £513,000 in 2006 to£904,000 in the year under review, an improvement of 76%. During the same periodour gross commission and similar income increased from £4,301,000 to £4,516,000an increase of 5%. We have maintained our strict control of costs. The taxcharge was slightly inflated by a prior year adjustment of £16,000. Earnings pershare amount to 7.1p against 4.2p last year and headline earnings per share, amore accurate guide, are 8.0p against 5.8p. The principal reasons for the improved profitability in the past year arethree-fold. In the year to 31 May 2006 we made provision for all claims inrespect of the split capital losses whilst there were no similar provisions inthe year just ended. Secondly Corporate Finance transactions have brought inincreased revenues. Lastly there has been an increase in the proportion of ourrevenues generated by recurring fees as opposed to transaction commissions andwe are endeavouring to increase the proportion still further. This largelyreflects the continuing growth of funds under management. Our net cash position remains very positive at £3.5 million, with net tangibleassets of over £4 million. In the balance sheet we show our shareholding inEuroclear at cost of £75,000. In the past year our gross dividend from thisholding amounted to £24,000. A valuation of this holding today would show asurplus of the order of £0.5 million. These are the last financial statements that we will prepare under UnitedKingdom Generally Accepted Accounting Practice; we will adopt InternationalFinancial Reporting Standards in our next accounts. We are currently reviewingthe full impact that this is likely to have on those accounts, although we haveidentified that goodwill will no longer be amortised, which should have apositive effect on our earnings. In May of this year we appointed as directors Amanda Andrews and James Harrison.Amanda joined Fiske in 1997. She was appointed Financial Controller and head ofthe finance department in 2001 and is now Finance Director. James joined Fiskein 1996 and has worked principally in the private client department since thattime. He held the role of Company Secretary for Fiske plc for four years untilOctober 2005. He is now an Executive Director. The recent turmoil in the markets has not surprised us. However even anexpectation that more than four years is a good run for a bull market does notinform you of the moment the turn occurs. Being a firm that shuns gearing bothfor itself and its clients we are modestly prepared for a correction or possiblysomething more prolonged. Nevertheless in view of the satisfactory results forthe year under review and the encouraging start for the current year, the Boardhas declared a second interim dividend of 3p per share (against 2p last year)making a total of 5p per share for the year, which will be covered 1.4 times byearnings. M J AllenChairman 21 August 2007 Consolidated Profit and Loss Account For the year ended 31 May 2007 2007 2006 £'000 £'000TURNOVERGross commission and similar income 4,516 4,301Commission payable (1,148) (1,237)Other income 177 271 3,545 3,335 OPERATING COSTSStaff costs (1,444) (1,300)Amortisation of intangible fixed assets (181) (207) Depreciation (61) (43) Other operating charges (1,194) (1,470) (2,880) (3,020) OPERATING PROFIT 665 315Gain on disposal of fixed asset investments 14 8Other income from fixed asset investments 26 17Interest receivable and similar income 202 181Interest payable (4) (8) Profit on disposal of fixed assets 1 -PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 904 513Taxation charge on profit on ordinary activities (312) (163) PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION 592 350Basic earnings per share 7.1 p 4.2 pDiluted earnings per share 7.1 p 4.2 pHeadline earnings per share 8.0 p 5.8 pHeadline diluted earnings per share 8.0 p 5.7 p All activities relate to continuing operations; there are no recognised gains orlosses other than the profit for the current and prior years as shown above. Consolidated Balance Sheet 31 May 2007 2007 2006 £'000 £'000FIXED ASSETSIntangible assets 516 697Tangible assets 152 192Other investments 133 176 801 1,065 CURRENT ASSETSMarket and client debtors 22,123 6,518Other debtors 434 298Investments 213 -Cash at bank and in hand 4,411 4,265 27,181 11,081 CREDITORS: amounts falling due within one yearMarket and client creditors (22,642) (7,190)Other creditors (807) (683) (23,449) (7,873)NET CURRENT ASSETS 3,732 3,208TOTAL ASSETS LESS CURRENT LIABILITIES 4,533 4,273NET ASSETS 4,533 4,273 CAPITAL AND RESERVESCalled up share capital 2,078 2,078Share premium account 1,185 1,185Profit and loss account 1,270 1,010 EQUITY SHAREHOLDERS' FUNDS 4,533 4,273 These financial statements were approved by the Board of Directors andauthorised for issue on 21 August 2007. Signed on behalf of the Board of Directors C F HarrisonChief Executive Officer Company Balance Sheet 31 May 2007 2007 2006 £'000 £'000FIXED ASSETSIntangible assets 516 697Tangible assets 152 192Investment in subsidiaries 432 432Other investments 133 176 1,233 1,497 CURRENT ASSETSMarket and client debtors 22,123 6,518Other debtors 434 298Investments 213 -Cash at bank and in hand 4,411 4,265 27,181 11,081 CREDITORS: amounts falling due within one yearMarket and client creditors (22,642) (7,190)Other creditors (1,292) (1,168) (23,934) (8,358)NET CURRENT ASSETS 3,247 2,723TOTAL ASSETS LESS CURRENT LIABILITIES 4,480 4,220NET ASSETS 4,480 4,220 CAPITAL AND RESERVESCalled up share capital 2,078 2,078Share premium account 1,185 1,185Profit and loss account 1,217 957 EQUITY SHAREHOLDERS' FUNDS 4,480 4,220 These financial statements were approved by the Board of Directors andauthorised for issue on 21 August 2007. Signed on behalf of the Board of Directors C F HarrisonChief Executive Officer Consolidated Cash Flow Statement For the year ended 31 May 2007 2007 2006 £'000 £'000Net cash inflow from operating activities 382 1,654Returns on investment and servicing of finance 224 190Taxation - UK corporation tax paid (171) (185)Capital expenditure and financial investment 43 (543)Equity dividends paid (332) (332)Increase in cash 146 784 Note to the financial statement for the year ended 31 May 2007. The above results for the year ended 31 May 2007 are an abridged version of theGroup's audited statutory financial statements which have not yet been filedwith the Registrar of Companies. The balance sheet and profit and loss accountdo not constitute statutory financial statements within the meaning of Section240 of the Companies Act 1985 (as amended). These statements have been preparedon a consistent basis with the account policies as stated in the previous andcurrent years' financial statements. The results for the years ended 31 May 2007 and 2006 have been extracted fromthe financial statements of the company on which unqualified reports from theauditors have been issued and which in respect of 31 May 2006 accounts have beenfiled with the Registrar of Companies. Copies of this announcement are available from the Group's registered office atSalisbury House, London Wall, London, EC2M 5QS. The Annual Report and Accounts will be sent to shareholders on 31 August 2007and can also be accessed on Fiske's website www.fiskeplc.com. Enquiries: Clive Harrison (Chief Executive Officer) - 020-7448-4700. This information is provided by RNS The company news service from the London Stock Exchange