28th Feb 2019 11:02
LONDON (Alliance News) - Fiske PLC on Thursday swung to an interim loss on increased operating expenses.
Shares in the stockbroker were down 15% in morning trading at 70.00 pence each.
In the six months to November 30, 2018, Fiske recorded a pretax loss of GBP492,000 compared with a GBP190,000 profit the year before. The company attributed the swing on "uncertain and weak" markets depressing its commission revenue, which was down 20%.
The stockbroker's total revenue was broadly flat at GBP2.0 million.
Fiske's operating expenses increased 25% to GBP2.5 million from GBP2.0 million the year before.
Fiske incurred a non-recurring charge for its acquisition of Fieldings Investment Management Ltd, including audit fees and deferred consideration bonus payments.
The company also booked a one-off revenue adjustment in the period after a management review led to the company "tightening" its revenue recognition.
Fiske also attributed the "increasing burden" of regulation for its increased expenses.
The company opted against an interim dividend, as it did for the same period in 2017.
Looking ahead, Fiske said the market outlook is "less clear" than it has been in "many years".
The company noted the "major" uncertainty of the US Federal Reserve's future interest rate policy, the US-China trade discussions, Brexit and the Eurozone sliding into a recession as problems it has to "contend with". Despite a market recovery since the start of the year, Fiske stressed a "certain degree of caution is warranted".
"The second half of our financial year began during a period of weak markets with December being particularly quiet. However sentiment turned quickly in January and markets have continued to improve through February. We now anticipate a busy period leading up to the end of the UK income tax year," said Chair Chive Harrison.
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