27th Feb 2008 09:41
Fletcher King PLC27 February 2008 Fletcher King Plc Interim Management Statement Fletcher King Plc is today publishing its Interim Management Statement relatingto the period 1st November 2007 to 31st January 2008. In line with the rest of the UK commercial property sector, trading conditionsfor Fletcher King have generally deteriorated as we forecast in our InterimResults. As is widely recognized, the commercial property investment market has continuedto decline, although there is recent evidence of more transactions taking place,compared to the period immediately before Christmas, but volumes are still at alow level. Where transactions are taking place they are taking significantlylonger to close and this is impacting on our business. We are pleased to report however that the level of our valuation, rating andproperty management business is currently unaffected by market conditions andcontinues to grow. Fletcher King Howard, our building services subsidiary, is not immune frommarket conditions and is currently experiencing a general reticence by clientsto commit to capital expenditure projects. This division will suffer a smallloss for the year. Taking all of this together, we currently anticipate that the profit out-turn atthe end of the year will be marginally lower than we were anticipating at thehalf year. We noted the omission of the IFRS requirement to publish a Related Parties Notetogether with a Segmental Analysis Note in the Half Yearly Report (sent toshareholders on 25th January 2008). These are set out below. Related party transactions The group is controlled by Fletcher King Plc, a company registered in Englandand Wales. Transactions between the Company and its subsidiaries are in thenormal course of business and are priced using arm's length prices. Suchtransactions are eliminated on consolidation and are disclosed in the SegmentalAnalysis Note below. Segmental analysisSix months to 31 October 2007 General Construction services services Unallocated Total £000 £000 £000 £000 Revenue:Sales to external customers 2,580 1,018 - 3,598 Revenue from inter-segmental transactions - 27 (27) - Total revenue 2,580 1,045 (27) 3,598 Operating profit / (loss) 467 (2) (62) 403 Income from investments 13 - - 13 Finance income 29 1 24 54Finance expense - - - - Profit / (loss) before taxation 509 (1) (38) 470 Taxation (150) - (1) (151) Profit / (loss) for the period after 359 (1) (39) 319taxation Construction Services comprises the business carried out by Fletcher King HowardLimited. All other types of service are General Services. The unallocatedsegment comprises the elimination of inter-segmental transactions, holdingcompany costs and other expenses and income and assets and liabilities notdirectly attributable to the operating activities of the Group's businesssegments. General Construction services services Unallocated Total £000 £000 £000 £000 Segmental assets 3,378 1,020 - 4,398 Unallocated assets 725 725 - -Total assets 3,378 1,020 725 5,123 Segmental liabilities 1,251 285 - 1,536 Unallocated liabilities - - 8 8 Total liabilities 1,251 285 8 1,544Net segmental equity 2,127 735 717 3,579 Capital expenditure 302 - - 302 Depreciation 23 14 37 - Segmental analysisSix months to 31 October 2006 General Construction services services Unallocated Total £000 £000 £000 £000 Revenue:Sales to external customers 2,469 980 - 3,449 Revenue from inter-segmental transactions - 26 (26) - Total revenue 2,469 1,006 (26) 3,449 Operating profit / (loss) 340 22 (98) 264 Income from investments 7 - - 7 Finance income 12 1 24 37Finance expense - - - - Profit / (loss) before taxation 359 23 (74) 308 Taxation (122) 7 10 (105) Profit / (loss) for the period after 237 30 (64) 203taxation General Construction services services Unallocated Total £000 £000 £000 £000 Segmental assets 2,438 923 - 3,361 Unallocated assets - - 1,425 1,425 Total assets 2,438 923 1,425 4,786 Segmental liabilities 1,301 273 - 1,574Unallocated liabilities - - 7 7 Total liabilities 1,301 273 7 1,581Net segmental equity 1,137 650 1,418 3,205 Capital expenditure 23 9 - 32 Depreciation 24 14 - 38 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Fletcher King