Interim Results

RNS Number : 0291A

Fiske PLC

13 February 2014

 



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: [phone])

  • Gerard Luchini, Fiske Plc - Compliance Officer

    (tel: [phone])

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.

 

END

 

 

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