REG - Fletcher King PLC - Further re: Trading Update

Fletcher KingAnnouncement

15/05/2024 15:45

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RNS Number : 5999O  Fletcher King PLC  15 May 2024

 For immediate release  15 May 2024

 

Fletcher King plc

 

("Fletcher King" or the "Company")

 

 

Further re: Trading Update

 

In response to shareholder enquiries, the Company provides further detail
relating to the Trading Update announced on 3 May 2024.

 

On 3 May 2024 the Company provided guidance that its profit before taxation
for the year ended 30 April 2024 would be in the range of two to three times
higher than the profit before taxation of £192,000 which it reported for the
year ended 30 April 2023.

 

The increase in profitability largely resulted from the completion of a number
of transactions (the "Transactions") in the period immediately prior to the
year end. The Transactions were all within the Company's ordinary course of
business. As stated in previous announcements, such transactions are difficult
to predict in terms of timing, outcome, and fee implication. Timings are to a
large extent outside the control of the Company and it was therefore
especially pleasing to finalise these Transactions just before the year-end.

 

The Company's investment team has worked hard to secure deals in a market that
has remained cautious throughout the year. The number of deals completed has
been relatively low but this has been compensated by a higher than normal
average deal size.

 

The Company has continued to focus on improving non-transactional fees from
the core service of property and asset management. Some additional
instructions have been won during the year further improving recurring revenue
under contract.

 

The Company's valuation team has grown to meet the increased volume of
instructions from the major high street banks and this has translated into
improved recurring fee income in this area.

 

There has been a noticeable improvement in the engagement of the Valuation
Office Agency ("VOA") in settling rating appeals and this has helped to
generate increased fee income in this area of business. We hope that this
increased engagement will continue in subsequent periods and allow for timely
settlement of appeals.

 

As announced on 21 December 2023 in the Interim Statement, a new planning
service commenced in November 2023 and this has started very positively with
some good fee income.

 

One of the investment transactions was the sale of the underlying property in
the SHIPS 16 Syndicate, in which the Company had a co-investment and acted as
adviser. The property had been revalued downwards over the last few years,
with the revaluations reflected in the Report and Accounts, and the property
was sold at almost exactly the value of the most recent valuation. Whilst it
is disappointing to crystalise a loss on this property, it reflects the
changing office market in a post-covid world.

 

The Company remains well supported by a strong balance sheet with no debt,
providing optionality for investment activity including co-investment in
in-house property syndicates and any value accretive corporate opportunities.

 

The Directors will carefully consider the level of dividend to recommend to
shareholders based on the audited final results. The Company has a track
record of distributing profits and the final dividend can therefore be
expected to be higher than last year.

 

As announced previously, the Company expects to announce Final Results for the
year ended 30 April 2024 before the end of August 2024.

 

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.

 

- Ends -

 

For further information, please contact:

 

 Fletcher King plc                Tel: +44 (0) 20 7493 8400
 David Fletcher, Chairman

 Peter Bailey, Finance Director

 Cairn Financial Advisers LLP     Tel: +44 (0) 20 7213 0880
 (Nominated Adviser)
 James Caithie

 Liam Murray

 

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.

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