TIDMFKE
RNS Number : 5852R
Fiske PLC
02 March 2023
02 March 2023
FISKE PLC
("Fiske" or the "Company" or the "Group")
Interim results
Fiske ( AIM:FKE ) is pleased to announce its interim results for
the six months ended 31 December 2022.
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:
Fiske PLC
James Harrison (CEO) Tel: +44 (0) 20 7448 4700
100 Wood Street
London
EC2V 7AN
Grant Thornton UK LLP (Nominated Adviser) Tel: +44 (0) 20 7383
5100
Samantha Harrison / Harrison Clarke / Samuel Littler
Trading
Across the half year to December 2022 UK markets were broadly
level, although there was a material dip in October. Meanwhile,
across the world, different markets had separate distinctive
profiles in the period. With Fiske's client assets invested
internationally, assets under management and thus management fees
were broadly level; slightly down versus the prior reported
interims (to November 2021) but slightly up on the immediately
preceding six months to 30 June 2022.
In contrast, commission revenues were some 15% lower than the
prior reported interims (to November 2021) and also lower than the
immediately preceding six months to 30 June 2022. We believe that
this recent pattern reflects the apparent turmoil in the world,
with sentiment highly tuned to expectations around interest rate
movements.
In a period of double-digit inflation, operating expenses have
increased by some 4% over the immediately preceding six months to
June 30, but are down almost 10% on the prior reported interims (to
November 2021) when we had the expenses associated with our
relocation to new offices at 100 Wood Street and restructuring
costs incurred in anticipation of a smaller office footprint. As
expected, we now benefit from the reduction in overall property
costs.
Overall, the profit before tax for the half year to 31 December
2022 was GBP28,000 compared to a loss of GBP6,000 in the half year
to November 2021.
Our cash balances remain strong, at GBP3.1m.
Recent results from Euroclear showed further improvement in the
company's operating businesses. Sales of shares by other
shareholders have taken place at modestly lower levels than when
last notified. Accordingly, we have adjusted our holding value down
to this lower level. The company also guided shareholders that it
expects to increase its dividend, payable in October 2023, by some
31%.
Significant regulatory change in the form of the Consumer Duty
is due for implementation in 2023. Considerable time and effort is
being spent evaluating how the new rules should be implemented
across our business and client base. As guided by the Financial
Conduct Authority we have appointed a Consumer Duty Champion at
Board level to oversee the implementation of these new
regulations.
Markets
Over the past six months market leadership has shifted
dramatically away from highly valued US technology growth stocks
and pandemic beneficiaries towards higher yielding value situations
found in the "old economy" sectors that are so predominant in the
UK equity market. The relatively low ratings of many of the UK's
major companies are attracting the interest of activist investors.
As a result, the US and UK markets have become disconnected with
the latter moving ahead whilst the US market and the NASDAQ market
are falling. Whilst not necessarily a long-term trend this
adjustment may have further to go.
The two major factors affecting stock markets at present are the
European war between Russia and Ukraine and the high level of
inflation. It would appear that neither is about to be solved
favourably in the short term. The Russian invasion of Ukraine and
in the background the threatening behaviour of China towards Taiwan
have at last so disturbed the very complacent Western powers that
the geo-political scene for at least the next decade will be
totally changed.
Defence expenditure, for so long a declining priority amongst
Western but especially European powers, has re-emerged as an urgent
priority. At the same time inflation which has been quiescent for
two decades has been rekindled partly by the changed world
political scene but more because it had never gone away but rather
lain dormant and consequently ignored. Commodity prices, especially
that of oil and gas, have always been volatile but what we have
seen in the past decade looks more like a major readjustment and as
such will be of economic significance for many years to come. The
idea that inflation in the West will return to a maximum of 2%
within the current calendar year is naïve if not irresponsible and
seems like the wish fulfilment of the Wall Street bulls rather than
a considered economic forecast.
Outlook
History tells us that markets will eventually be calmer and
meanwhile it is our role to focus on delivering the best investment
strategies to protect and grow our client's assets. Since December
2022, we have executed an overhaul of our fee tariffs and are
legislating for this to increase our income; a much-needed
implementation given the ever-increasing costs, especially those
pertaining to regulations and compliance.
Clive Fiske Harrison James P Q Harrison
Chairman Chief Executive Officer
02 March 2023
Condensed Consolidated Statement of Total Comprehensive
Income
For the six months ended 31 December 2022
6 months 6 months 13 months
ended ended ended
31 December 30 November 30 June
2022 2021 2022
note Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
----------------------------------------- ------ ------------ ------------ ---------
Revenues 2 2,604 2,856 5,764
Operating expenses (2,762) (3,035) (6,269)
----------------------------------------- ------ ------------ ------------ ---------
Operating (loss)/profit (158) (179) (505)
Investment revenue 200 183 185
Finance costs (14) (10) (29)
Profit/(loss) on ordinary
activities before taxation 28 (6) (349)
Taxation credit/(charge) - - 177
----------------------------------------- ------ ------------ ------------ ---------
Profit/(loss) on ordinary
activities after taxation 28 (6) (172)
----------------------------------------- ------ ------------ ------------ ---------
Other comprehensive income/(expense)
Items that may subsequently
be reclassified to profit
or loss
Movement in unrealised appreciation
of investments (192) (35) 1,017
Deferred tax on movement in
unrealised appreciation of
investments 3 48 (162) (443)
----------------------------------------- ------ ------------ ------------ ---------
Net other comprehensive income/(expense) (144) (197) 574
----------------------------------------- ------ ------------ ------------ ---------
Total comprehensive income/(loss)
for the period/year attributable
to equity shareholders (116) (203) 402
----------------------------------------- ------ ------------ ------------ ---------
Profit/(loss) Earnings per
ordinary share (pence) 4
Basic 0.2p (0.1)p (1.5)p
Diluted 0.2p (0.1)p (1.5)p
All results are from continuing operations and are attributable
to equity shareholders of the parent Company.
Condensed Consolidated Statement of Financial Position
31 December 2022
As at As at
31 December 30 November As at
2022 2021 30 June 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
----------------------------------- ------------ ------------ -------------
Non-current assets
Intangible assets arising
on consolidation 830 1,050 911
Other intangible assets - 16 -
Right-of-use assets 203 304 250
Property, plant and equipment 18 30 21
Investments held at Fair
Value Through Other Comprehensive
Income 4,429 3,568 4,621
------------------------------------ ------------ ------------ -------------
Total non-current assets 5,480 4,968 5,803
------------------------------------ ------------ ------------ -------------
Current assets
Trade and other receivables 2,417 2,797 2,450
Cash and cash equivalents 3,051 3,620 3,248
------------------------------------ ------------ ------------ -------------
Total current assets 5,468 6,417 5,698
------------------------------------ ------------ ------------ -------------
Current liabilities
Trade and other payables 1,801 2,647 2,147
Short-term lease liabilities 106 - 106
Current tax liabilities - 43 -
------------------------------------ ------------ ------------ -------------
Total current liabilities 1,907 2,690 2,253
------------------------------------ ------------ ------------ -------------
Net current assets 3,561 3,727 3,445
------------------------------------ ------------ ------------ -------------
Non-current liabilities
Long-term lease liabilities 111 308 155
Deferred tax liabilities 785 735 833
------------------------------------ ------------ ------------ -------------
Total non-current liabilities 896 1,043 988
------------------------------------ ------------ ------------ -------------
Net assets 8,145 7,652 8,260
------------------------------------ ------------ ------------ -------------
Equity
Share capital 2,957 2,957 2,957
Share premium 2,085 2,085 2,085
Revaluation reserve 2,984 2,356 3,128
Retained earnings 119 254 90
------------------------------------ ------------ ------------ -------------
Shareholders' equity 8,145 7,652 8,260
------------------------------------ ------------ ------------ -------------
Condensed Consolidated Statement of Changes in Equity
For the six months ended 31 December 2022
Share Share Revaluation Retained Total
Capital Premium Reserve Earnings Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------- -------- -------- ----------- --------- -------
Balance at 1 July 2022 2,957 2,085 3,128 90 8,260
Profit on ordinary activities
after taxation - - - 28 28
Movement in unrealised
appreciation of investments - - (192) - (192)
Deferred tax on movement
in unrealised appreciation
of investments - - 48 - 48
Total comprehensive income
/ (expense) for the period - - (144) 28 (116)
----------------------------------- -------- -------- ----------- --------- -------
Share based payment transactions - - - 1 1
Total transactions with
owners, recognised directly
in equity - - - 1 1
----------------------------------- -------- -------- ----------- --------- -------
Balance at 31 December
2022 2,957 2,085 2,984 119 8,145
----------------------------------- -------- -------- ----------- --------- -------
Balance at 31 May 2021 2,939 2,082 2,553 562 8,136
Adjustments - - - (303) (303)
----------------------------------- ----- ----- ----- ----- -----
Balance at 31 May 2020
a s restated 2,939 2,082 2,553 259 7,833
(Loss) on ordinary activities
after taxation - - - (6) (6)
Movement in unrealised
appreciation of investments - - (35) - (35)
Deferred tax on movement
in unrealised appreciation
of investments - - (162) - (162)
Total comprehensive income
/ (expense) for the period - - (197) (6) (203)
----------------------------------- ----- ----- ----- ----- -----
Share based payment transactions - - - 1 1
Issue of ordinary share
capital 18 3 - - 21
----------------------------------- ----- ----- ----- ----- -----
Total transactions with
owners, recognised directly
in equity 18 3 - 1 22
----------------------------------- ----- ----- ----- ----- -----
Balance at 30 November
2021 2,957 2,085 2,356 254 7,652
----------------------------------- ----- ----- ----- ----- -----
Balance at 1 June 2021 2,939 2,082 2,553 259 7,833
(Loss) on ordinary activities
after taxation - - - (172) (172)
Movement in unrealised
appreciation of investments - - 1,017 - 1,017
Deferred tax on m ovement
in unrealised appreciation
of investments - - (443) - (443)
Realised disposal of Fair
Value through OCI - - 1 - 1
----------------------------------- ----- ----- ----- ----- -----
Total comprehensive income
/ (expense) for the period - - 575 (172) 403
----------------------------------- ----- ----- ----- ----- -----
Share based payment transactions - - - 3 3
Issue of ordinary share
capital 18 3 - - 21
----------------------------------- ----- ----- ----- ----- -----
Total transactions with
owners, recognised directly
in equity 18 3 - 3 24
----------------------------------- ----- ----- ----- ----- -----
Balance at 30 June 2022 2,957 2,085 3,128 90 8,260
----------------------------------- ----- ----- ----- ----- -----
Condensed Consolidated Statement of Cash Flows
For the six months ended 31 December 2022
6 months 6 months
ended ended 13 months
31 December 30 November ended
2022 2021 30 June 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
----------------------------------------- ------------ ------------ -------------
Operating (loss)/profit (158) (179) (505)
Amortisation of intangible assets
arising on consolidation 81 80 218
Amortisation of other intangible
assets - 16 32
Depreciation of right-of-use assets 47 23 79
Depreciation of property, plant
and equipment 6 15 31
Expenses settled by the issue of
shares 1 1 3
Decrease/(increase) in receivables 683 (305) 248
(Decrease)/increase in payables (996) 317 (389)
----------------------------------------- ------------ ------------ -------------
Cash generated (used in)/from operations (336) (32) (283)
Tax recovered / (paid) - - (49)
----------------------------------------- ------------ ------------ -------------
Net cash (used in)/generated from
operating activities (336) (32) (332)
----------------------------------------- ------------ ------------ -------------
Investing activities
Investment income received 200 183 185
Interest received - - -
Purchases of property, plant and
equipment (3) (21) (28)
Purchases of other intangible assets - - -
Net cash (used in)/ generated from
investing activities 197 162 157
----------------------------------------- ------------ ------------ -------------
Financing activities
Interest paid (14) (10) (29)
Proceeds from issue of ordinary
share capital - 22 22
Repayment of lease liabilities (44) (20) (68)
----------------------------------------- ------------ ------------ -------------
Net cash used in financing activities (58) (8) (75)
----------------------------------------- ------------ ------------ -------------
Net (decrease) / increase in cash
and cash equivalents (197) 122 (250)
Cash and cash equivalents at beginning
of period 3,248 3,498 3,498
----------------------------------------- ------------ ------------ -------------
Cash and cash equivalents at end
of period/year 3,051 3,620 3,248
----------------------------------------- ------------ ------------ -------------
Notes to the Interim Financial Statements
1. Basis of preparation
The Condensed Consolidated Interim Financial Statements of Fiske
plc and its subsidiaries (the Group) for the six months ended 31
December 2022 have been prepared in accordance with IAS 34 (Interim
Financial Reporting), as adopted in the United Kingdom. The
accounting policies applied are consistent with those set out in
the June 2022 Fiske plc Annual Report and accounts. These Condensed
Consolidated Interim Financial Statements do not include all the
information required for full annual statements and should be read
in conjunction with the June 2022 Annual Report and Accounts.
The Financial Statements of the Group for the 13-month period
ended 30 June 2022 were prepared in accordance with International
Financial Reporting Standards adopted by in the United Kingdom. The
statutory Consolidated Financial Statements for Fiske plc in
respect of the 13-month period ended 30 June 2022 have been
reported on by the Company's auditor and delivered to the registrar
of companies. The report of the auditor was (i) unqualified, (ii)
did not include a reference to any matters to which the auditor
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.
Under IAS 27 these financial statements are prepared on a
consolidated basis where the Group consists of Fiske plc, the
parent, and those subsidiaries in which it owns 100% of the voting
rights, being Ionian Group Limited, Fiske Nominees Limited,
Fieldings Investment Management Limited and VOR Financial Strategy
Limited.
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.
There were no new mandatory standards or amendments to existing
standards effective in the six-month reporting period to 31
December 2022.
2. Revenues
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:
6 months 6 months 13 months
ended ended ended
31 December 30 November 30 June
2022 2021 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
--------------------------- ------------ ------------ ---------
Commission receivable 1,087 1,276 2,576
Investment management fees 1,495 1,578 3,186
--------------------------- ------------ ------------ ---------
2,582 2,854 5,762
Other income 22 2 2
--------------------------- ------------ ------------ ---------
2,604 2,856 5,764
--------------------------- ------------ ------------ ---------
3. Deferred tax
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 25%, (13 months to June 2022: 25%)
being the anticipated rate of taxation applicable to the Group and
Company in the following year.
4. Earnings per share
Diluted
Basic Basic
GBP'000 GBP'000
------------------------------- -------- --------
Profit on ordinary activities
after taxation 28 28
Adjustment to reflect impact
of dilutive share options - -
------------------------------- -------- --------
Profit 28 28
------------------------------- -------- --------
Weighted average number
of shares (000's) 11,830 11,830
------------------------------- -------- --------
Profit per share (pence) 0.2p 0.2p
------------------------------- -------- --------
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IR FLFLTVDILIIV
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