Fiske : Interim Report and Accounts to December 2022

Half Year Financial Report

31 December 2022

Chairman's and Chief Executive's Report

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 £28,000 compared to a loss of £6,000 in the half year to November 2021.

Our cash balances remain strong, at £3.1m.

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.

FISKE plc page

1

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
1st March 2023

FISKE plc page

2

Condensed Consolidated Statement of Total Comprehensive Income

for the six months ended 31 December 2022

		6 months ended	6 months ended	13 months ended
		31 December 2022	30 November 2021	30 June 2022
	note	Unaudited	Unaudited	Audited
		£'000	£'000	£'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.

FISKE plc page

3

Condensed Consolidated Statement of Financial Position

At 31 December 2022

	As at
	31 December	As at	As at
	2022	30 November 2021	30 June 2022
	Unaudited	Unaudited	Audited
	£'000	£'000	£'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

FISKE plc page

4