Final Results, Posting of Report and Notice of AGM

RNS Number : 8382G
Fiske PLC
30 November 2020
 

30 November 2020

FISKE PLC

("Fiske" or the "Company" or the "Group")

Final Results, Posting of Annual Report and Notice of AGM

Fiske ( AIM:FKE ) is pleased to announce its final audited financial results for the year ended 31 May 2020.

 

Highlights

 

 

2020

2019

 

 

 

 

(Restated)

 

 

 

  £'000

  £'000

Reported

 

 

 

 

 

Total Revenue

 

5,383

4,589

+17%

 

 

 

 

 

Loss on ordinary activities before taxation

 

(127)

(381)

 

 

 

 

 

 

Loss per ordinary share

 

(1.1p)

(3.3p)

 

 

 

James Harrison, CEO, commenting on the results said:

"We are pleased to report strong organic revenue growth of 17% in the year, with significant improvement in the net result.  Resilient back office systems have helped us to be in a position where, on the face of it, the Covid-19 lockdown has not had much of an impact on our business."

 

In light of the current Covid-19 public gathering restrictions and social distancing requirements, the forthcoming Annual General Meeting which is to be held at Salisbury House, London Wall, London EC2M 5QS on Wednesday 23 December 2020 at 12.30pm, will be run as a closed meeting and shareholders will not be permitted to attend in person.

 

Copies of the 2020 Annual Report and Accounts, including the Notice of AGM and Proxy Voting form will be posted to shareholders today and in accordance with rule 26 of the AIM Rules for Companies, this information is also available under the Investor Relations section of the Company's website, www.fiskeplc.com .

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

For further information, please contact:

 

Fiske PLC
James Harrison (CEO) Tel: +44 (0) 20 8448 4700
Salisbury House London Wall

London

EC2M 5QS


Grant Thornton UK LLP (Nominated Adviser) Tel: +44 (0) 20 7383 5100
Samantha Harrison / Harrison Clarke

 

Abridged Chairman's Statement

 

Trading

Full year revenues rose by 17% to £5.4m (2019: £4.6m).  After reporting a pre-tax loss of £158,000 in the first half-year, we have made a profit of £31,000 in the second half which has resulted in a full year pre-tax loss of £127,000 (2019: loss £381,000).

 

On the face of it, the Covid-19 lockdown has not had much of an impact on our business.  After an increase in revenues in the first half, they continued to grow in the second half of the year.  This was assisted by strong commission revenue during a period of market volatility in the last quarter of our year, which coincided with the start of the Covid-19 lockdown. 

 

Total revenue continues to be split evenly between commissions on trading, and management & other recurring fees, each increasing significantly during the year.  This reflects both an increase in the firm's client base alongside a continued migration from commission-based relationships to more fee focussed ones.  The impact of this was masked by a surge in commission income as active clients responded to the opportunities created during the market falls of February and March 2020.

 

Restatement of accounts

Following an internal audit exercise in the first half of the year, the directors of the company determined that certain adjustments needed to be made to its accounts.  These result primarily from a change in an accounting process which had affected the way in which our systems data had been interpreted for accounting purposes.  In addition, we resolved to change the way in which the acquisition of Fieldings Investment Management was accounted for.

 

There had been no impact on client money or accounts, and no impact on the firm's cash position.  The overall impact had been an overstatement of current liabilities.  The necessary adjustments, accumulated over several years, amounted to a net addition of some £532,000 to the Group's net assets as at 31 May 2019.  Comparative data in this report has been restated and the adjustments elaborated in notes to the full published Report and Accounts.

 

Asset Management

In May 2020 our unit trust, Ocean UK Equity, passed its second anniversary.  The first two years have been successful with the fund in the top quartile in each of the last three, six and twelve-month periods and since launch.  It was also ahead of its benchmark the CBOE UK All Companies Total Return Index over the period.  As at the end of May 2020 the fund was valued at £7.6m (2019: £5.8m).

 

Costs & Outturn

Operating expenses have risen by £0.7m to £5.7m in the year to 31 May 2020 (2019: £5.0m) an increase of 14%.  Almost half of the increase comes from staff costs: in particular the administrative strengthening of operational capacity and compliance.  We have also engaged external resources where appropriate to minimise long term increases in staff levels, and such consultancy has pushed up the operating expenses in the short term.  However, such costs are expected to subside as we proceed through the current year.

 

Prior investment in disaster recovery resources and a migration to cloud services meant that the relatively sudden move to a Working-From-Home environment, at the onset of the Covid-19 lockdown, was achieved smoothly and with relatively little additional cost.  This is not to belittle the very significant amount of staff endeavour that went into ensuring the migration proceeded as seamlessly as it did.

 

Euroclear

Historically, Euroclear has been an annual dividend payer but due to the timing of a re-domiciliation exercise Euroclear did not pay us a dividend during our prior year to 31 May 2019.  The dividend stream has resumed in this financial year with a dividend received of £143,000.

 

The latest interim report from Euroclear shows that its business income advanced robustly by 13% but this was largely offset by the fall in interest received as a result of worldwide interest rate cuts. Despite a 5% increase in earnings per share we feel it appropriate to reflect recent transaction prices and have marked down the carrying value of our investment to €1,525 per share being £5.0m in total.  This represents a partial roll-back of the very substantial valuation increases which we have seen in recent years.

 

Net assets

Shareholder's funds amount to some £7.4m and within this we continue to hold some £2.2m of cash.

 

Strategy

We continue to implement our ongoing strategy to welcome new investment managers with established client relationships to increase our assets under management and advice.  We believe that with our traditional values, modern systems and up to date regulatory framework we provide an attractive place to work for aspiring, independently minded private client investment managers.

 

IFRS 16

The adoption of IFRS 16 from 1 June 2019, being applied to the accounting for our leased office premises, has resulted in the inclusion of £101,000 (after depreciation) of right-of-use assets in the Statement of Financial Position at 31 May 2020 together with a lease liability of £124,000.  In the year to 31 May 2020, operating profit was increased by £47,000, which was matched by an increase in lease liability interest of £23,000, giving an overall £24,000 upside to the Income Statement.  The opening balance impact is quantified in the Group Statement of Changes in Equity.

 

Dividend

The Board has resolved not to pay a dividend for the year to 31 May 2020 (2019: £nil).

 

Impact of Covid-19

We were fortunate that our disaster recovery infrastructure meant that we were very well placed to deal rapidly with the Working-From-Home requirement imposed by the Covid-19 lockdown.  IT skills were polished, and the cultural change was adapted to quickly.  This helped us stay focussed on investment decisions and client needs.  Your Board is conscious that going forward there will be a range of challenges to address in relation to bringing staff back into an office-based working environment. 

 

Staff

Considerable effort went into ensuring that the transition to Working-From-Home proceeded smoothly and resulted in an efficient work environment - on top of all the usual challenges in running a business.  In this light I would like to extend my thanks to all members of the team for their hard work and commitment to the future success of the Company.

 

Markets

The last quarter of our own financial year has seen the fastest and sharpest falls in equity markets in a generation.  In just twenty-two trading days equity markets fell by 30% or more.  This was followed by an equally rapid and strong recovery with the US market, led by the performance of technology stocks, rising 36% from its March low and the UK market rising by 26%.

 

Around the world, government policy has been dominated by the need to contain the Covid-19 virus and at the same time lessen the severity of its economic impact.  This has resulted in the provision of unprecedented levels of fiscal and monetary stimulus together with other supportive measures. 

 

Last year I drew attention to the astonishing levels of debt being accumulated by companies and emerging market nations.  This has now been dwarfed by the levels of debt assumed by mature sovereign entities which will eventually need to be addressed.  The imposition of austerity measures would be unacceptable while economies are in such a precarious state.  Politically the less painful reflationary option will no doubt prevail with longer term inflationary consequences.

 

Companies have meanwhile been preserving cash by deferring or cancelling dividend payments.  Aggregate dividends in the UK are likely to fall by 30-40% this year.  An unedifying prospect for savers and investors already adversely affected by the negligible returns available from cash deposits or government bonds.

 

It is likely that market volatility will persist for some time as there are a considerable number of unknowns to digest; the duration of the pandemic, the effectiveness of the global response, the impact on world GDP and the timing, shape and speed of an eventual recovery.  What is clear is that both monetary and fiscal policy are likely to remain accommodative for some time to come and historically low interest rates to continue.

 

Outlook

The new financial year has begun with business levels in line with the previous year just reported.  With the expectation that most of the exceptional costs incurred last year will not be repeated in the current year, your Board is encouraged by the progress made in the first few months of trading.

 

AGM

In light of the current Covid-19 public gathering restrictions and social distancing requirements, the forthcoming AGM which is to be held on Wednesday 23 December 2020 at 12.30pm, will be run as a closed meeting and shareholders will not be permitted to attend in person.

 

Shareholders' views are important and the Board encourages shareholders to submit their votes via CREST ID rather than attending the meeting in person. Shareholders may also submit questions in advance of the AGM to the Company Secretary via email to info@fiskeplc.com or by post to the Company Secretary at the address set out above.

 

 

Consolidated Statement of Total Comprehensive Income

For the year ended 31 May 2020

 

Notes

2020

2019

 

 

  £'000

  £'000

(restated)

Continuing Operations

 

 

 

Fee and commission income

 

5,347

4,591

Other income / (loss)

 

36

(1)

Profit / (loss) on investments sold

 

-

(1)

 

 

 

 

Total Revenue

2

5,383

4,589

 

 

 

 

Operating expenses

 

(5,743)

(5,020)

 

 

 

 

Operating (loss)

 

(360)

(431)

 

 

 

 

Investment revenue

 

143

-

Finance income

 

148

108

Finance costs

 

(58)

(58)

 

 

 

 

Loss on ordinary activities before taxation

 

(127)

(381)

Taxation

3

-

-

Loss on ordinary activities after taxation

 

(127)

(381)

Other comprehensive income

 

 

 

Items that may subsequently be reclassified to profit or loss

 

 

 

Movement in unrealised appreciation of investments

 

(793)

3,289

Deferred tax on movement in unrealised appreciation of investments

 

187

(583)

Net other comprehensive income

 

(606)

2,706

Total comprehensive income attributable to equity shareholders

 

(733)

2,325

Loss per ordinary share

 

 

 

Basic

4

(1.1p)

(3.3p)

Diluted

4

(1.1p)

(3.3p)

 

 

 

 

 

All results are from continuing operations.

 

Consolidated Statement of Financial Position

31 May 2020

 

 

Notes

As at 31 May

2020

As at 31 May

2019

As at 1 June

2018

 

 

  £'000

£'000

(restated)

  £'000

(restated)

 

 

 

 

 

Non-current Assets

 

 

 

 

Intangible assets

5

1,289

1,445

1,576

Other intangible assets

6

65

97

130

Right-of-use assets

7

101

-

-

Property, plant and equipment

8

53

30

35

Investments held at Fair Value Through Other Comprehensive Income

9

4,962

5,759

2,470

Total non-current assets

 

6,470

7,331

4,211

 

 

 

 

 

Current Assets

 

 

 

 

Trade and other receivables

10

2,398

2,387

4,183

Cash and cash equivalents

 

2,239

2,073

2,453

Total current assets

 

4,637

4,460

6,636

Current liabilities

 

 

 

 

Trade and other payables

11

2,924

2,814

4,790

Short-term lease liabilities

12

124

-

-

Current tax liabilities

 

-

-

36

Total current liabilities

 

3,048

2,814

4,826

Net current assets

 

1,589

1,646

1,810

 

 

 

 

 

Non-current liabilities

 

 

 

 

Deferred tax liabilities

13

611

797

214

Total non-current liabilities

 

611

797

214

 

 

 

 

 

Net Assets

 

7,448

8,180

5,807

 

 

 

 

 

 

 

Equity

 

 

 

 

Share capital

14

2,923

2,904

2,890

Share premium

 

2,057

2,029

1,997

Revaluation reserve

 

3,597

4,203

1,497

Retained losses

 

(1,129)

(956)

(577)

Shareholders' equity

 

7,448

8,180

5,807

 

 

 

 

 

These financial statements were approved by the Board of Directors and authorised for issue on 27 November 2020.

 

 

Group Statement of Changes in Equity

For the year ended 31 May 2020

 

 

Share

capital

Share premium

Revaluation reserve

Retained losses

Total

 

£'000

£'000

£'000

£'000

£'000

Balance at 1 June 2018 as reported

2,890

1,997

1,497

(848)

5,536

Adjustments

-

-

-

271

271

As restated at 1 June 2018

2,890

1,997

1,497

(577)

5,807

Loss for the financial year as restated

-

-

-

(381)

(381)

Movement in unrealised appreciation of investments

-

-

3,289

-

3,289

Deferred tax on movement in unrealised appreciation of investments

-

-

(583)

-

(583)

Total comprehensive income / (expense) for the year

-

 

-

2,706

(381)

2,325

Share based payment transactions

-

-

-

2

2

Issue of ordinary share capital

14

32

-

-

46

Total transactions with owners, recognised directly in equity

14

32

-

2

48

 

Balance at 31 May 2019

2,904

2,029

4,203

(956)

8,180

Adoption of IFRS 16

-

-

-

(48)

(48)

Balance at 1 June 2019

2,904

2,029

4,203

(1,004)

8,132

Loss for the financial year

-

-

-

(127)

(127)

Movement in unrealised appreciation of investments

-

-

(793)

-

(793)

Deferred tax on movement in unrealised appreciation of investments

-

-

187

-

187

Total comprehensive income / (expense) for the year

-

-

(606)

(127)

(733)

Share based payment transactions

-

-

-

2

2

Issue of ordinary share capital

19

28

-

-

47

Total transactions with owners, recognised directly in equity

19

28

-

2

49

 

Balance at 31 May 2020

2,923

2,057

3,597

(1,129)

7,448

 

 

 

Group and Parent Company Statement of Cash Flows

For the year ended 31 May 2020 

 

 

Notes

2020

2020

2019

2019

 

 

Group

Company

Group

Company

 

 

  £'000

  £'000

  £'000

(restated)

  £'000

(restated)

Operating (loss)

 

(360)

(170)

(431)

(284)

Amortisation of intangible assets arising on consolidation

 

156

24

131

-

Amortisation of other intangible assets

 

32

32

33

33

Depreciation of right-of-use assets

 

173

173

-

-

Depreciation of property, plant and equipment

 

39

39

22

22

Expenses settled by the issue of shares

 

2

2

2

2

(Increase) / decrease in receivables

 

(11)

323

1,796

1,454

Increase / (decrease) in payables

 

75

24

(2,034)

(2,010)

Cash generated from/(used) in operations

 

106

447

(481)

(783)

Tax (paid)

 

-

-

(36)

-

Net cash generated from/(used in) operating activities

 

106

447

(517)

(783)

 

 

 

 

 

 

Investing activities

 

 

 

 

 

Investment income received

 

143

143

-

-

Interest received

 

148

148

108

107

Proceeds on disposal of investments held at FVTOCI

 

5

5

-

-

Purchases of property, plant and equipment

 

(62)

(62)

(17)

(17)

Net cash generated from investing activities

 

234

234

91

90

 

 

 

 

 

 

Financing activities

 

 

 

 

 

Interest paid

 

(24)

(24)

-

-

Proceeds from issue of ordinary share capital

 

47

47

46

46

Repayment of lease liabilities

 

(197)

(197)

-

-

Net cash (used in)/generated from financing activities

 

(174)

(174)

46

46

 

 

 

 

 

 

Net increase/(decrease) in cash and cash equivalents

 

166

507

(380)

(647)

Cash and cash equivalents at beginning of year

 

2,073

1,391

2,453

2,038

Cash and cash equivalents at end of year

 

2,239

1,898

2,073

1,391

 

 

 

 

 

 

             

 

Notes to the Accounts

For the year ended 31 May 2020

 

1.  Basis of preparation

These financial statements have been prepared in accordance with the requirements of IFRS implemented by the Group for the year ended 31 May 2020 as adopted by the European Union and International Financial Reporting Interpretations Committee and with the Companies Act 2006. The Group financial statements have been prepared under the historical cost convention, with the exception of financial instruments, which are stated in accordance with IAS 39 Financial Instruments: recognition and measurement.

 

The financial information included in this News Release does not constitute statutory accounts of the Group for the years ended 31 May 2020 and 2019, but is derived from those accounts. Statutory accounts for the year ended 3 May 2019 have been reported on by the Group's auditor and delivered to the Registrar of Companies. Statutory accounts for the year ended 3 May 2020 have been audited and will be delivered to the Registrar of Companies. The report of the auditors for both years was (i) unqualified, (ii) included a reference the prior year restatement to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006.

Copies of the Annual Report will be sent on 30 November 2020 to shareholders and will also be available on our website at www.fiskeplc.com

With the exception of IFRS 16, adopted in the current year, there have been no significant changes in accounting policies from those set out in the Fiske plc 2019 Annual Report.

 

2.  Total revenue and segmental analysis

IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by management to allocate resources to the segments and to assess their performance. Following the acquisition of Fieldings Investment Management Limited in August 2017, their staff and operations have been integrated into the management team of Fiske plc. Pursuant to this, the Group continues to identify a single reportable segment, being UK-based financial intermediation. Within this single reportable segment, total revenue comprises:

 

2020

2019

 

£'000

£'000

(restated)

Commission receivable

2,732

2,316

Investment management fees

2,615

2,275

 

5,347

4,591

Profit / (loss) on investments held at FVTOCI

-

(1)

Other income / (loss)

36

(1)

 

5,383

4,589

Substantially all revenue in the current and prior year is generated in the UK and derives solely from the provision of financial intermediation.

 

 

3.  Tax

Analysis of tax on ordinary activities:

 

2020

2019

 

£'000

£'000

Current tax

 

 

Current year

-

-

Prior year adjustment

-

-

 

-

-

Deferred tax

 

 

Current year

-

-

Prior year adjustment

-

-

Total tax charge to Statement of Comprehensive Income

-

-

Factors affecting the tax charge for the year

The standard rate of tax for the year, based on the United Kingdom standard rate of corporation tax, is 19.00% (2019: 19.00%).

The charge/(credit) for the year can be reconciled to the profit per the Statement of Comprehensive Income as follows:

 

2020

2019

 

£'000

£'000

(restated)

Profit/(loss) before tax

(127)

(381)

(Credit) / Charge on profit on ordinary activities at standard rate

(24)

(74)

Effect of:

 

 

Expenses not deductible in determining taxable profit

6

9

Non-taxable income

(27)

-

Tax losses not recognised

45

65

 

-

-

 

 

 

4.  Earnings per share

Basic earnings per share has been calculated by dividing the profit on ordinary activities after taxation by the weighted average number of shares in issue during the year. Diluted earnings per share is basic earnings per share adjusted for the effect of conversion into fully paid shares of the weighted average number of share options during the year.

 

 

31 May 2020

 

Basic

Diluted

Basic

 

£'000

£'000

(Loss) on ordinary activities after taxation

(127)

(127)

Adjustment to reflect impact of dilutive share options

-

-

(Loss)

(127)

(127)

Weighted average number of shares (000's)

11,673

11,714

(Loss) per share (pence)

(1.1)

(1.1)

 

 

31 May 2019

 

Basic

Diluted

Basic

 

£'000

(restated)

£'000

(restated)

(Loss) on ordinary activities after taxation

(381)

(381)

Adjustment to reflect impact of dilutive share options

-

-

(Loss)

(381)

(381)

Weighted average number of shares (000's)

11,603

11,645

(Loss) per share (pence)

(3.3)

(3.3)

 

 

31 May 2020

31 May 2019

Number of shares (000's):

 

 

Weighted average number of shares

11,673

11,603

Dilutive effect of share option scheme

41

42

 

11,714

11,645

 

 

 

5.  Intangible assets arising on consolidation

 

Customer relationships

 

Goodwill

 

Total

£'000

£'000

£'000

Cost

 

 

 

At 1 June 2018

1,312

1,311

2,623

Additions

-

-

-

At 31 May 2019

1,312

1,311

2,623

Additions

-

-

-

At 31 May 2020

1,312

1,311

2,623

Accumulated amortisation or impairment

 

 

 

At 1 June 2018

(131)

(916)

(1,047)

Charge in year

(131)

-

(131)

At 31 May 2019

(262)

(916)

(1,178)

Charge in year

(132)

(24)

(156)

At 31 May 2020

(394)

(940)

(1,334)

Net book value

At 31 May 2020

 

918

 

371

 

1,289

At 1 June 2019

1,050

395

1,445

 

 

Goodwill arising through business combinations is allocated to individual cash-generating units ('CGUs') being acquired subsidiaries, reflecting the lowest level at which the Group monitors and test goodwill for impairment purposes. The CGUs to which goodwill is attributed are as follows:

 

CGU

 

2020

£'000

2019

£'000

Ionian Group Limited

 

206

230

Vor Financial Strategy Limited

 

165

165

Goodwill allocated to CGUs

 

371

395

The impairment charge arises from a prudent assessment that customer relationships and goodwill change over time and are not of indefinite life. Based on analyses of the relevant customer base segments, a determination was made as to the expected income streams arising over the next 8 years. The recoverable amounts of the goodwill in Ionian Group Limited and in Vor Financial Strategy Limited are determined based on value-in-use calculations.  These calculations use projections of marginal profit contributions over the expected remaining stream of attributable value.  The key assumptions used for value-in-use calculations are as follows: 

Direct and indirect costs as % of revenues

60%

Growth rate

0 %

Discount rate

12.5 %

Had the discount rate used gone up / down by 1%, impairment would have been £7,000 higher/lower and the carrying amount commensurately adjusted. Management determined margin contribution and growth rates based on past performance of those units, together with current market conditions and its expectations of development of those CGUs. The discount rate used is pre-tax, and reflects specific risks relating to the relevant CGU.

 

 

6.  Other intangible assets

 

 

 

Systems

licence

Group and Company

 

 

£'000

Cost

 

 

 

At 1 June 2018

 

 

192

Additions

 

 

-

At 1 June 2019

 

 

192

Additions

 

 

-

At 31 May 2020

 

 

192

Accumulated amortisation

 

 

 

At 1 June 2018

 

 

(62)

Charge for the year

 

 

(33)

At 1 June 2019

 

 

(95)

Charge for the year

 

 

(32)

At 31 May 2020

 

 

(127)

Net book value

 

 

 

At 31 May 2020

 

 

65

At 31 May 2019

 

 

97

 

7.  Right-of-use assets

 

 

Property

Group and Company

 

£'000

Cost

 

 

At 31 May 2019

 

-

Adoption of IFRS16

 

274

At 1 June 2019

 

274

Additions

 

-

At 31 May 2020

 

274

Accumulated amortisation

 

 

At 31 May 2019

 

-

Adoption of IFRS16

 

-

At 1 June 2019

 

-

Charge for the year

 

(173)

At 31 May 2020

 

(173)

Net book value

 

 

At 31 May 2020

 

101

At 31 May 2019

 

-

 

 

 

8.  Property, plant and equipment

 

Office furniture and equipment

 

Computer equipment

 

Office refurbishment

 

 

Total

Group and Company

£'000

£'000

£'000

£'000

Cost

 

 

 

 

At 1 June 2018

162

197

175

534

Additions

-

17

-

17

Disposals

-

-

-

-

At 1 June 2019

162

214

175

551

Additions

2

60

-

62

At 31 May 2020

164

274

175

613

Accumulated depreciation

 

 

 

 

At 1 June 2018

(142)

(182)

(175)

(499)

Charge for the year

(7)

(15)

-

(22)

At 1 June 2019

(149)

(197)

(175)

(521)

Charge for the year

(7)

(32)

-

(39)

At 31 May 2020

(156)

(229)

(175)

(560)

Net book value

At 31 May 2020

 

8

 

45

 

-

 

53

At 31 May 2019

13

17

-

30

 

9.  Investments held at Fair Value Through Other Comprehensive Income

 

2020

2019

Group and Company

£'000

£'000

At 1 June 2019:

 

 

Valuation

5,759

2,470

Unrealised appreciation

(5,095)

(1,806)

Cost

664

664

Cost of disposals

(5)

-

At 31 May 2020:

 

 

Cost

659

664

Unrealised appreciation

4,303

5,095

Valuation

4,962

5,759

being:

 

 

Listed

-

5

Unlisted

4,962

5,754

FVTOCI investments carried at fair value

4,962

5,759

The investments included above are represented by holdings of equity securities. These shares are not held for trading.

 

 

10.  Trade and other receivables

 

2020

2020

2019

2019

 

Group

Company

Group

Company

Group and Company

£'000

£'000

£'000

(restated)

£'000

(restated)

Counterparty receivables

150

150

1,190

1,189

Trade receivables / (payables)

1,345

1,345

(164)

(164)

 

1,495

1,495

1,026

1,025

Amount owed by group undertakings

-

85

-

628

Other debtors

56

142

371

355

Prepayments and accrued income

847

566

990

604

 

2,398

2,288

2,387

2,612

Due to the short-term nature of the current receivables, their carrying amount is considered to be the same as their fair value.

Trade receivables

Included in the Group's trade receivables are debtors with a carrying amount of £nil (2019: £nil) which are past due at the reporting date for which the Group has not provided.

Counterparty receivables

Included in the Group's counterparty receivables balance are debtors with a carrying amount of £150,000 (2019: £338,000) which are past due but not considered impaired.

Ageing of counterparty receivables:

 

2020

2019

 

£'000

£'000

 

 

 

0 - 15 days

128

306

16 - 30 days

-

15

31 - 60 days

22

17

 

150

338

 

11.  Trade and other payables

 

2020

2020

2019

2019

 

Group

Company

Group

Company

 

£'000

£'000

£'000

(restated)

£'000

(restated)

Counterparty payables

1,456

1,456

973

973

Trade payables

-

-

-

-

 

1,456

1,456

973

973

Financial liabilities measured at amortised cost being deferred consideration payable

218

218

515

515

Other sundry creditors and accruals

1,250

1,005

1,326

1,134

 

2,924

2,679

2,814

2,622

 

 

 

 

 

12.  Lease liabilities

 

2020

2020

2019

2019

 

Group

Company

Group

Company

 

£'000

£'000

£'000

(restated)

£'000

(restated)

Current

124

124

-

-

Non-current

-

-

-

-

 

124

124

-

-

Maturity analysis:

 

 

 

 

Not later than one year

124

124

-

-

Not later than one year

-

-

-

-

 

124

124

-

-

Lease liabilities at adoption of IFRS 16 on 1 June 2019 can be reconciled to the operating lease commitments in respect of land and buildings reported at May 2019 as follows:

 

Group & Company

 

£'000

At 31 May 2019: operating lease commitments in respect of land and buildings

876

exclude service charges

(347)

exclude VAT

(200)

other differences

(8)

Lease liabilities arising upon adoption of IFRS 16 at 1 June 2019

321

 

The cash flow impact is summarised as:

 

2020

2020

 

Group

Company

 

£'000

£'000

Lease liabilities at 31 May 2019

-

-

Adoption of IFRS 16

321

321

Lease liabilities at 1 June 2019

321

321

Cash flow

(197)

(197)

Lease liabilities at 31 May 2020

124

124

 

13.  Deferred taxation

 

 

Capital allowances

Investments

 

Tax

Losses†

 

Deferred tax liability

Group and Company

£'000

£'000

£'000

£'000

At 1 June 2019

(1)

892

(94)

797

Charge for the year

-

-

-

-

Charge to Statement of Comprehensive Income

 

 

 

 

in respect of current year

-

(186)

-

186

At 31 May 2020

(1)

706

(94)

611

Deferred tax assets and liabilities are recognised at a rate which is substantively enacted at the balance sheet date. The rate to be taken in this case is 18%, being the anticipated rate of taxation applicable to the Company in the future.

†A further deferred tax asset arising out of cumulative tax losses amounting to £97,036 has not been recognised at the balance sheet date.

 

14.  Called up share capital

 

2020

2019

 

No. of shares

£'000

No. of shares

£'000

Authorised:

 

 

 

 

Ordinary shares of 25p

12,000,000

3,000

12,000,000

3,000

Allotted and fully paid:

Ordinary shares of 25p

 

 

 

 

Opening balance

11, 617,597

2,904

11,560,205

2,890

Shares issued

76,193

19

57,392

14

Closing balance

11,693,790

2,923

11,617,597

2,904

Included within the allotted and fully paid share capital were 9,490 ordinary shares of 25p each (2019: 9,490 ordinary shares of 25p each) held for the benefit of employees.

At 31 May 2020 there were 200,000 outstanding options to subscribe for ordinary shares at a weighted average exercise price of 55p (2019: 60p) and a weighted average remaining contractual life of 3 years, 9 months. (2019: 4 years, 7 months)

 

15.  Financial commitments

Lease - classified as an IFRS 16 lease

At 31 May 2020 the Group had outstanding commitments for future minimum lease payments under non-cancellable operating leases which fall due as follows:

 

2020

2019

 

Land and buildings

Other

Land and buildings

Other

 

£'000

£'000

£'000

£'000

In the next year

191

-

407

5

In the second to fifth years inclusive

-

-

469

0

Total commitment

191

-

876

5

In June 2010, the Company entered into a lease over its premises at London Wall for a period of 10 years, with a five-year break clause.

 

16.  Clients' money

At 31 May 2020 amounts held by the Company on behalf of clients in accordance with the Client Money Rules of the Financial Conduct Authority amounted to £56,624,640 (2019: £46,014,796). The Company has no beneficial interest in these amounts and accordingly they are not included in the consolidated statement of financial position.

 

 

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