FLETCHER KING PLC

Audited results for the Year Ending 30 April 2023

Highlights

·      Revenue for the year of £3,079,000 (2022: £2,967,000)

·      Statutory profit before tax of £192,000 (2022: £134,000)

·      Adjusted profit before tax of £165,000 (2022: £144,000) *

·      Adjusted basic earnings per share of 2.01p (2022: 1.73p) **

·      Final proposed dividend: 0.75p per share (2022: 0.50p per share)

·      Significant cash reserves: £2.8m as at 30 April 2023 (2022: £3.4m)

*Adjusted profit before tax is before share-based payment expenses and after other comprehensive income (see note 2). The Board considers the adjusted results to be an important measure of performance due to the nature of the Company, and with share options being awarded to directors and key staff only.

**Adjusted basic earnings per share is calculated using adjusted profits (see note 4).

The Annual Report and Accounts will shortly be posted on the Company's website and a further announcement will be made when the document is sent to shareholders.

Commenting on the results, David Fletcher, chairman of Fletcher King Plc said:

"We are pleased to report improved results compared with last year and to be able to recommend an increased dividend payment. We have started the new financial year with some encouraging instructions and are optimistic for the forthcoming period".

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

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CHAIRMAN'S STATEMENT

Results

Revenue for the year was £3,079,000 (2022: £2,967,000). Adjusted profit before tax (see note 2) was £165,000 (2022: £144,000). Statutory profit before tax was £192,000 (2022: £134,000).

The Board considers the adjusted results to be an important measure of performance and to be more representative of performance for the year than the statutory results (which have been prepared in accordance with International Financial Reporting Standards).

Dividend

The Board is proposing a final dividend of 0.75p per share. The final dividend is subject to shareholder approval at the AGM and will be paid on 27 October 2023 to shareholders on the register at the close of business on 29 September 2023. With no interim dividend paid (2022: £nil per share) the dividend for this year will amount to 0.75p per share (2022: 0.5p per share).

The Commercial Property Market

Looking back to my statement twelve months ago, I reported that both the letting and capital markets were considerably more buoyant than the previous year. Regrettably that state of affairs did not continue.

 
Due to the uncertainties of the economy, with interest rates rising and inflation falling much more slowly than expected, the commercial property capital markets are currently moribund. The potential for a change of Government is further clouding investors' vision and whilst there is a considerable volume of funds waiting to enter the commercial property market, the timing is unpredictable.

In contrast to the property capital markets, the letting markets, particularly in London and other big cities, are still reasonably active although this is primarily for grade A office space which is still in demand with higher rents achieved than in the previous year.

Business Overview

Despite the difficult market I am pleased to report an overall growth in turnover and profit for the year.

Once again, Property Asset and Fund Management enjoyed a strong year with new clients added.

Bank valuations also continued to grow, with an increase in instructions from new lenders.

I am pleased to report that, at last, rating appeals moved ahead and some very long-standing large appeals were successfully concluded and hopefully that progress will continue.

The Investment department has had a very difficult year, along with most in the property industry, and recorded its worst results for some time. We believe this was a reflection of falling capital values resulting from the political and economic uncertainties reported above.

Outlook

It continues to be impossible to accurately predict the future of the property markets and thus our performance, whilst current uncertainties prevail. Nevertheless, we are reasonably optimistic for the coming year particularly as we are in discussion with a number of potential new Property Management instructions.

We anticipate that the volume of valuations will continue to grow and we expect rating appeals to do likewise.

We also expect the Investment Department to do much better this coming year but the volume of their work is particularly difficult to predict under current circumstances.

 
The general state of the market has not been conducive to generating activity with our new large shareholder but we will continue to look for opportunities to collaborate in the forthcoming period.

As usual, our balance sheet and cash reserves remain strong and that continues to be of great importance in these volatile times.

Our loyal clients and hard-working and talented staff have enabled us to perform well this year and on behalf of the Board I thank them all.

DAVID FLETCHER

CHAIRMAN

7 August 2023

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

for the year ended 30 April 2023

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 April 2023

CONSOLIDATED STATEMENT OF CASH FLOWS

for the year ended 30 April 2023

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 30 April 2023

 NOTES

1. General information

Whilst the financial information included in this preliminary announcement has been prepared in accordance with UK-adopted international accounting standards, this announcement does not itself contain sufficient information to comply with IFRSs.

The financial information is presented in pounds sterling rounded to the nearest thousand, and prepared in accordance with UK-adopted international accounting standards and under the historical cost convention, except for the revaluation of certain financial assets. The financial information set out in this announcement does not comprise the Group's statutory accounts for the years ended 30 April 2023 or 30 April 2022.

The financial information for the year ended 30 April 2022 is derived from the statutory accounts for that year which have been delivered to the Registrar of Companies. The auditors reported on those accounts; their report was unqualified and did not contain a statement under either Section 498 (2) or Section 498 (3) of the Companies Act 2006 and did not include references to any matters to which the auditor drew attention by way of emphasis.

The financial information for the year ended 30 April 2023 is derived from the audited statutory accounts for the year ended 30 April 2023 on which the auditors have given an unqualified report, that did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006 and did not include references to any matters to which the auditors drew attention by way of emphasis. The statutory accounts will be delivered to the Registrar of Companies following the Company's annual general meeting.

2. Alternative performance measures - profit reconciliation

The reconciliation set out below provides additional information to enable the reader to reconcile to the numbers discussed in the Chairman's Statement and Highlights section.

The fair value loss on financial assets represents the unrealised loss in the year on the revaluation of the Group's interest in the SHIPS 16 syndicate.

3.  Dividends

4. Earnings per share

Forward Looking Statements

Certain statements in this announcement are forward-looking statements relating to the Company's operations, performance and financial position based on current expectations of, and assumptions and forecasts made by, management.  They are subject to a number of risks, uncertainties and other factors which could cause actual results, performance or achievements of the Company to differ materially from any outcomes or results expressed or implied by such forward-looking statements.  Undue reliance should not be placed on such forward looking statements.  They are made only as of the date of this announcement and no representation, assurance, guarantee or warranty is given in relation to them including as to their accuracy, completeness, or the basis on which they are made.

END