FLETCHER KING PLC

Earnings Release • Aug 15, 2025

National Storage Mechanism | Additional information

RNS Number : 4384V

Fletcher King PLC

15 August 2025

FLETCHER KING PLC

("Fletcher King" or the "Company")

Audited results for the Year Ending 30 April 2025

Highlights

·      Revenue for the year of £3,841,000 (2024: £3,826,000)

·      Statutory profit before tax of £274,000 (2024: £452,000)

·      Adjusted profit before tax of £373,000 (2024: £504,000) *

·      Adjusted basic earnings per share of 2.45p (2024: 3.26p) (see note 4) **

·      Final proposed dividend: 2.25p per share (2024: 2.25p per share)

·      Cash and fixed term deposit reserves: £4.2m as at 30 April 2025 (2024: £3.8m)

*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:

"With property markets remaining subdued, we are pleased to report a profitable year, albeit at reduced levels compared with last year. We are also pleased to recommend maintaining the annual dividend at the same level as last year. Markets may remain challenging for a while longer and we continue to focus on improving non-transactional income. Our strong balance sheet continues to provide comfort as well as the potential for investment activity if we find the right opportunity"

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.

For further information, please contact:

Fletcher King plc	Tel: +44 (0) 20 7493 8400
David Fletcher, Non-Executive Chairman Peter Bailey, Finance Director
Cairn Financial Advisers LLP	Tel: +44 (0) 20 7213 0880
(Nominated Adviser)
James Caithie Liam Murray

CHAIRMAN'S STATEMENT

Results

Revenue for the year was £3,841,000 (2024: £3,826,000). Adjusted profit before tax (see note 2) was £373,000 (2024: £504,000). Statutory profit before tax was £274,000 (2024: £452,000).

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 UK-adopted International Financial Reporting Standards).

Dividend

The Board is proposing a final dividend of 2.25p per share (2024: 2.25p per share). The final dividend is subject to shareholder approval at the AGM and will be paid on 24 October 2025 to shareholders on the register at the close of business on 26 September 2025. With no interim dividend paid (2024: £nil per share) the dividend for this year will amount to 2.25p per share (2024: 2.25p per share).

The Commercial Property Market

The UK property investment market has had a slow start to the first six months of 2025 following on from another difficult year. Concerns over the future growth in the UK economy and the effects of Trump's tariffs on the wider global economy make for uncertain times ahead. Nevertheless, signs of resilience are evident notably in prime property and particularly in Central London.

In the first quarter overseas investment remained relatively robust with £5.1bn flowing into the UK market making up 56% of the total, driven by North America and Europe with average prime yields across all sectors at 5.72%. Domestic institutional investment however has remained very subdued and significant outflows from UK property funds continue. Preliminary estimates for the first half of the year suggest volumes are approximately 47% below the long run average, although figures for Central London indicate a slight recovery is underway.

In the circumstances (using MSCI published statistics), the UK commercial property market performed relatively robustly over the last 12 months producing an overall total return of 8.6% which was mainly due to a healthy income return of 5.8% and capital growth of just 2.6%.

The best performing sectors were the retail and industrial sectors which both produced total returns of 10.6% although retail derived more of its performance from income (7.2%) whereas industrial was split more equally between income and capital growth.

For the second year running however, offices lagged behind the other main sectors with a return of just 3.6%. All of the performance was from income return of 5.5% which was pulled back by a capital fall of 1.8% as yields continue to drift out.

Whilst the capital markets have endured a difficult 12 months, the occupational markets have been a different story particularly for prime real estate. Industrial lettings have remained buoyant particularly for 'big boxes' of over 100,000 sq ft where rents around London have risen at an annualised growth rate of 9.5% and around 8% in many other parts of the country.

Although retail rents are generally still below pre pandemic averages in many parts of the country, the first quarter saw a 25% rise in take up compared to the same period last year across all sectors of the retail market. Prime retail parks in particular have maintained high occupancy levels due to strong demand, driving rents up. This is in spite of the challenges of increases to National Insurance and the minimum wage.

The letting market for offices remains a distinctly 2 tier story where there is generally very strong demand from occupiers for the best quality and precious little for the rest. This is particularly the case in London and the South East which is showing the highest level of take-up since 2008 and occupiers face an ever diminishing pool of options. Notably however, 86% of this take-up is in new grade A buildings in prime locations with good transport connections. As a result, leasing activity in London has hit a 5 year high for new developments where the vacancy rates in the prime areas of the City core and West End are minimal as workers return in increasing numbers. This has resulted in headline rents of £90+ and £160 respectively.

As global markets suffer continued volatility, prime London real estate in particular has a long track record of attracting global capital in times of heightened instability. We therefore remain optimistic that the UK commercial property market will continue to provide solid returns over the coming months.

Business Overview

I am very pleased once again to report that we are in profit, although not quite at last year's level. However, it is a good result in what continues to be a very challenging market.

The capital markets continue to be particularly unpredictable. That said we have been active but at lower levels than previously.

The Company continues to work hard on expanding its non-transaction fee income and it has been successful in gaining new clients and increased revenue.

The Property and Asset Management team has been particularly successful at attracting new clients.

The Valuation team have been busy throughout the year with existing clients and with new banks and companies.

Rating income has been good this year but the timing of that fee flow remains unpredictable. However, the performance of the Valuation Office Agency is better now than in the past.

Our recently established Planning Service is performing well and we have added a further surveyor to the team to cope with the increased flow of business.

Outlook

With the current uncertainty both domestically and internationally it is difficult to see the capital markets improving very much. Having said that, we must be somewhere near the bottom and the market will move forward but when?

In the coming year we expect non-transactional income to continue to improve and the teams are working hard in that direction.

We have a strong balance sheet which gives comfort to our clients and also to our hard working and talented staff.

DAVID FLETCHER

CHAIRMAN

14 August 2025

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

for the year ended 30 April 2025

	Note	2025	2024
		£000	£000
Continuing operations
Revenue		3,841	3,826
Employee benefits expense		(2,313)	(2,195)
Depreciation and amortisation expense		(196)	(194)
Other operating expenses		(1,122)	(1,078)
Other operating income		44	51
Share based payment expense		(99)	(58)
		(3,686)	(3,474)
Investment income		-	20
Finance income		128	94
Finance expense		(9)	(14)
Profit before taxation		274	452
Taxation		(121)	(170)
Profit for the year		153	282
Other comprehensive income: amounts not to be
reclassified to profit or loss
Fair value loss on financial assets through		-	(6)
other comprehensive income
Total comprehensive income for the year attributable to equity shareholders		153	276
Earnings per share
Basic Diluted	4 4	1.48p 1.48p	2.75p 2.75p
Adjusted earnings per share
Basic	4	2.45p	3.26p
Diluted	4	2.45p	3.26p

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 April 2025

	Note	2025	2024
		£000	£000
Assets
Non-current assets
Intangible assets		39	58
Property, plant and equipment		84	142
Right-of-use asset		148	263
		271	463
Current assets
Trade and other receivables	5	1,652	1,968
Cash and cash equivalents		4,210	1,327
Fixed term deposits		-	2,500
		5,862	5,795
Total assets		6,133	6,258
Liabilities
Current liabilities
Trade and other payables	6	1,319	1,410
Corporation tax		123	97
Lease liabilities		211	120
		1,653	1,627
Non-current liabilities
Lease liabilities		20	192
Total liabilities		1,673	1,819
Shareholders' equity
Share capital		1,025	1,025
Share premium		522	522
Share based payment reserve		184	85
Retained earnings		2,729	2,807
Total shareholders' equity		4,460	4,439
Total equity and liabilities		6,133	6,258

CONSOLIDATED STATEMENT OF CASH FLOWS

for the year ended 30 April 2025

	2025	2024
	£000	£000
Cash flows from operating activities
Profit before taxation from continuing operations	274	452
Adjustments for:
Depreciation and amortisation expense	196	194
Investment income	-	(20)
Finance income	(128)	(94)
Finance expense	9	14
Share based payment expense	99	58
Cash flows from operating activities before movement in working capital
450	604
Decrease/(increase) in trade and other receivables	316	(415)
(Decrease)/increase in trade and other payables	(91)	509
Cash generated from operations	675	698
Taxation paid	(95)	-
Net cash flows from operating activities	580	698
Cash flows from investing activities
Purchase of fixed assets	(4)	(14)
Sale of financial asset	-	479
Decrease/(increase) in fixed term deposits	2,500	(1,013)
Investment income	-	20
Finance income	128	94
Net cash flows from investing activities	2,624	(434)
Cash flows from financing activities
Lease payments	(90)	(128)
Dividends paid to shareholders	(231)	(77)
Net cash flows from financing activities	(321)	(205)
Net increase in cash and cash equivalents	2,883	59
Cash and cash equivalents at start of year	1,327	1,268
Cash and cash equivalents at end of year	4,210	1,327

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 30 April 2025

	Note	Share capital	Share premium	Investment revaluation reserve	Share based payment reserve	Retained earnings	TOTAL EQUITY
		£000	£000	£000	£000	£000	£000
Balance as at 1 May 2023		1,025	522	(145)	27	2,753	4,182
Profit for the year		-	-	-	-	282	282
Fair value loss on financial assets through other comprehensive income		-	-	(6)	-	-	(6)
Share based payment expense		-	-	-	58	-	58
Equity dividends paid		-	-	-	-	(77)	(77)
Transfer on disposal of financial asset		-	-	151	-	(151)	-
Balance at 30 April 2024		1,025	522	-	85	2,807	4,439
Profit for the year		-	-	-	-	153	153
Share based payment expense		-	-	-	99	-	99
Equity dividends paid	3	-	-	-	-	(231)	(231)
Balance at 30 April 2025		1,025	522	-	184	2,729	4,460

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. The financial information set out in this announcement does not comprise the Group's statutory accounts for the years ended 30 April 2025 or 30 April 2024.

The financial information for the year ended 30 April 2024 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 2025 is derived from the audited statutory accounts for the year ended 30 April 2025 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.

Year ended 30 April	2025	2024
	£000	£000
Profit before taxation	274	452
Add back: Share based payment expense	99	58
Include: Fair value loss on financial assets through OCI	-	(6)
Adjusted profit before share-based payment expense and taxation	373	504
Taxation	(121)	(170)
Adjusted profit after tax for the year	252	334

The fair value loss on financial assets represents the loss in the prior year on the revaluation of the Group's interest in the SHIPS 16 syndicate, prior to disposal of the asset.

3.  Dividends

Year ended 30 April	2025	2024
	£000	£000
Equity dividends on ordinary shares:
Declared and paid during year
Ordinary final dividend for the year ended 30 April 2024: 2.25p per share (2023: 0.75p)	231	77
	231	77
Proposed ordinary final dividend for the year ended 30 April 2025: 2.25p per share	231

4. Earnings per share

Number of shares	2025 No	2024 No
Weighted average number of shares for basic earnings per share Share options (non-dilutive at prevailing average share price)	10,252,209 -	10,252,209 -
Weighted average number of shares for diluted earnings per share	10,252,209	10,252,209
Earnings	£000	£000
Profit after tax for the year	153	282
(used to calculate the basic and diluted earnings per share)
Add back: Share based payment expense	99	58
Include: Fair value loss on financial assets through OCI	-	(6)
Adjusted profit after tax for the year	252	334
(used to calculate the adjusted basic and diluted earnings per share)
Earnings per share
Basic Diluted	1.48p 1.48p	2.27p 2.27p
Adjusted earnings per share Basic Diluted	2.45p 2.45p	2.01p 2.01p

5. Trade and other receivables

	2025	2024
	£000	£000
Trade receivables	903	1,533
Other receivables	54	47
Prepayments	181	140
Accrued income	514	248
	1,652	1,968

6. Trade and other payables

	2025	2024
	£000	£000
Trade payables	188	213
Other payables	77	-
Other taxation and social security	300	389
Accruals	558	636
Deferred income	196	172
	1,319	1,410

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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