REG - Fletcher King PLC - Audited results for the year ending 30 April 2025
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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 4 1.48p 2.75p
Diluted 4 1.48p 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
Investment Share based payment reserve
Note Share Share revaluation Retained TOTAL
capital premium reserve earnings 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 231 77
(2023: 0.75p)
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 2024
No No
Weighted average number of shares for basic earnings per share 10,252,209 10,252,209
Share options (non-dilutive at prevailing average share price) - -
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 1.48p 2.27p
Diluted 1.48p 2.27p
Adjusted earnings per share
Basic 2.45p 2.01p
Diluted 2.45p 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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