TIDMFKE
RNS Number : 6280P
Fiske PLC
19 February 2016
19 February 2016
Fiske Plc
('Fiske' or 'the Company')
Interim Results
Fiske Plc (the 'Company') announces its interim results for the
six months ended 30 November 2015. 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/Richard Tonthat, Grant Thornton UK LLP
(Nominated Adviser)
(tel: 020 7383 5100)
-- Gerard Luchini, Fiske Plc - Compliance Officer
(tel: 020 7448 4700)
Chairman's Statement
Trading
Our results for the first half of the year are disappointing
with a pre-tax loss of GBP662,000 compared to a loss for the
comparable period in the previous year of GBP162,000. Our trading
has suffered as a result of weakening markets which have depressed
day to day commission revenues. Conversely fee revenue from our
assets under advice and management has risen when compared to the
prior year. This has resulted in our total revenue falling by only
7% to GBP1.226 million (2014: GBP1.318 million).
The principal cause of the reported loss for the period is the
ongoing investment in our major systems change. The majority of
these costs have been expensed rather than capitalised as we
consider this policy to be more prudent and appropriate. In
addition we have incurred exceptional restructuring costs as we
have sought to adjust our cost base to the current market
environment.
We have further such costs to meet in the second half of the
year though on a reduced scale. By the end of this financial year
to the end of May 2016 we will be operational on our new system
with our ISA's administered in-house and all related investment
costs behind us. This will provide us with the opportunity to
improve the range of services we can offer our clients and grow our
business on this new platform.
In the last annual report and accounts I noted that we would not
be paying a second interim dividend and, given that market
conditions have not improved, the board has resolved for the time
being to continue the policy of not paying a dividend.
Although currency movements have continued to reduce the
carrying value of our holding in Euroclear, which is denominated in
Euros, the company continues to trade strongly. We remain confident
that our investment in the company will be successful.
Despite continued volatility in markets our revenues have
remained stable in the first two months of the second half and we
maintain our strong financial position with cash of GBP1.770
million and our holding in Euroclear on the balance sheet.
Markets
In recent years stock markets have been dominated almost
entirely by the actions of Central Banks and their unprecedented
policies of zero interest rates and quantitative easing. These
policies were designed to prevent their respective economies from
moving into recession. It is by no means clear whether these
actions have achieved the result or whether other factors were at
work. However what is clear is that these policies have inflated
asset values in both the stock market and property. The Federal
Reserve has now changed tack, the Bank of England has moved to
neutral, but both the European Central Bank and the Bank of Japan
are actively pursuing such policies.
Corporate earnings which in normal times determine market
movements have demonstrably failed to justify the current levels of
markets. Furthermore the sharp slowdown in Chinese growth and its
effect on commodities and other emerging market economies will have
a further adverse influence on corporate profitability.
In these circumstances we are taking a cautious attitude to
investment for our clients and highlighting that even the search
for yield can have pitfalls as many dividends remain
vulnerable.
C F Harrison Chairman
18 February 2016
Consolidated Statement of Comprehensive Income
for the six months ended 30 November 2015
Six months Six months Year ended
ended ended 31 May
30 November 30 November 2015
2015 2014 Audited
Unaudited Unaudited
GBP'000 GBP'000 GBP'000
------------------------------------- ------------ ------------ ----------
Fee and commission income 1,385 1,559 3,090
Fee and commission expenses (226) (301) (558)
-------------------------------------- ------------ ------------ ----------
Net fee and commission
income 1,159 1,258 2,532
Other income 67 60 67
-------------------------------------- ------------ ------------ ----------
Total revenue 1,226 1,318 2,599
Profit on disposal of
available-for-sale investments 9 - -
(Loss)/profit on investments
held for trading (14) 3 -
Operating expenses (1,929) (1,497) (3,328)
Operating (loss)/profit (708) (176) (729)
Investment revenue 42 7 67
Finance income 4 10 20
Finance costs - (3) (3)
(Loss)/profit on ordinary
activities before taxation (662) (162) (645)
Taxation 0 27 133
-------------------------------------- ------------ ------------ ----------
(Loss)/profit on ordinary
activities after taxation (662) (135) (512)
-------------------------------------- ------------ ------------ ----------
Other comprehensive income/(expense)
Movement in unrealised
appreciation of investments (60) 68 (153)
Deferred tax on movement
in unrealised appreciation
of investments 10 (11) 34
-------------------------------------- ------------ ------------ ----------
Net other comprehensive
(expense)/ income (50) 57 (119)
====================================== ============ ============ ==========
Total comprehensive (loss)/income
for the period/year attributable
to equity shareholders (712) (78) (631)
====================================== ============ ============ ==========
Earnings per ordinary
share (pence), excluding
other comprehensive income
Basic (7.8)p (1.6)p (6.1)p
Diluted (7.8)p (1.6)p (6.0)p
All results are from continuing operations and are attributable
to equity shareholders of the parent company.
Consolidated Statement of Changes in Equity
Share Share Revaluation Retained Total
Capital Premium Reserve Earnings Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------- -------- -------- ----------- --------- -------
Balance at 1 December
2014 2,115 1,222 1,318 373 5,028
Profit on ordinary
activities after
taxation - - - (377) (377)
Other comprehensive
income - - (176) - (176)
----------------------- -------- -------- ----------- --------- -------
Total comprehensive
income for period - - (176) (377) (553)
----------------------- -------- -------- ----------- --------- -------
Dividends paid - - - (20) (20)
----------------------- -------- -------- ----------- --------- -------
Balance at 31 May
2015 2,115 1,222 1,142 (24) 4,455
----------------------- -------- -------- ----------- --------- -------
Loss on ordinary
activities after
taxation - - - (662) (662)
Other comprehensive
income - - (50) - (50)
----------------------- -------- -------- ----------- --------- -------
Total comprehensive
income for period - - (50) (662) (712)
----------------------- -------- -------- ----------- --------- -------
Dividends paid - - - - -
----------------------- -------- -------- ----------- --------- -------
Balance at 30 November
2015 2,115 1,222 1,092 (686) 3,743
======================= ======== ======== =========== ========= =======
Consolidated Statement of Financial Position
February 19, 2016 08:41 ET (13:41 GMT)
30 November 2015
As at As at As at
30 November 30 November 31 May
2015 2014 2015
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
------------------------------- ------------ ------------ --------
Non-current assets
Goodwill 395 395 395
Other intangible assets 90 - 90
Property, plant and equipment 26 38 27
Available-for-sale investments 2,011 2,438 2,217
Total non-current assets 2,522 2,871 2,729
-------------------------------- ------------ ------------ --------
Current assets
Trade and other receivables 1,876 2,923 4,460
Investments held for
trading 79 90 13
Cash and cash equivalents 1,770 3,485 2,456
-------------------------------- ------------ ------------ --------
Total current assets 3,725 6,498 6,929
-------------------------------- ------------ ------------ --------
Current liabilities
Trade and other payables 2,345 4,020 5,032
Current tax liabilities - 11 -
-------------------------------- ------------ ------------ --------
Total current liabilities 2,345 4,031 5,032
-------------------------------- ------------ ------------ --------
Net current assets 1,380 2,467 1,897
-------------------------------- ------------ ------------ --------
Non-current liabilities
Deferred tax liabilities 159 310 171
-------------------------------- ------------ ------------ --------
Total non-current liabilities 159 310 171
-------------------------------- ------------ ------------ --------
Net assets 3,743 5,028 4,455
================================ ============ ============ ========
Equity
Share capital 2,115 2,115 2,115
Share premium 1,222 1,222 1,222
Revaluation reserve 1,092 1,318 1,142
Retained earnings (686) 373 (24)
-------------------------------- ------------ ------------ --------
Shareholders' equity 3,743 5,028 4,455
================================ ============ ============ ========
Consolidated Cash Flow Statement
For the six months ended 30 November 2015
Six months Six months Year ended
ended ended 31 May
30 November 30 November 2015
2015 2014 Audited
Unaudited Unaudited
GBP'000 GBP'000 GBP'000
-------------------------------- ------------ ------------ ----------
Operating activities (708) (176) (729)
(Profit) on disposal of
available-for-sale investments (9) - -
Depreciation of property
plant and equipment 12 12 24
(Increase)/decrease in
investments held for trading (66) 34 111
Decrease/(increase) in
receivables 2,584 2,887 1,388
(Decrease)/increase in
payables (2,688) (3,190) (2,179)
-------------------------------- ------------ ------------ ----------
Cash (used in)/ generated
from operations (875) (433) (1,385)
Tax paid - - (38)
-------------------------------- ------------ ------------ ----------
Net cash (used in)/generated
from operating activities (875) (433) (1,423)
-------------------------------- ------------ ------------ ----------
Investing activities
Interest received 4 10 20
Investment income received 42 7 67
Interest paid - (5) (3)
Proceeds on disposal of
available-for-sale investments 154 - -
Purchases of available-for-sale
investments - (5) (5)
Purchases of property,
plant and equipment (11) (16) (16)
Purchases of other intangible
assets (90)
Net cash (used in)/ generated
from investing activities 189 (9) (27)
-------------------------------- ------------ ------------ ----------
Financing activities
Dividends paid - (30) (51)
-------------------------------- ------------ ------------ ----------
Net cash used in financing
activities - (30) (51)
-------------------------------- ------------ ------------ ----------
Net (decrease)/ increase
in cash and cash equivalents (686) (472) (1,501)
Cash and cash equivalents
at beginning of period 2,456 3,957 3,957
Cash and cash equivalents
at end of period/year 1,770 3,485 2,456
-------------------------------- ------------ ------------ ----------
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 2015 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 2015 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 2015 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 GBPnil (2014 - GBP30,000) refer to the second
interim dividend paid for the preceding year.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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