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LONDON (Alliance News) - Property fund management business Fletcher King PLC Tuesday increased its final dividend threefold, doubling its total dividend for the year, after reporting a jump in annual profit.
London-based Fletcher King posted pretax profit of GBP711,000 for the year ended April 30, up from GBP292,000 a year earlier, as revenue rose to GBP3.7 million from GBP3.0 million. The company was boosted by a GBP174,000 profit on the sale of investments.
On the back of its performance, the company increased its final dividend to 2.25 pence from 0.75 pence, making a total dividend for the year of 3.0 pence compared with 1.5 pence.
The company said investment transactions were "excellent" in the second half and it enjoyed a number of notable successes including its largest sale of in its history of an office block in Old Street for GBP110 million.
Additionally, AIM-listed Fletcher King said its Stratton House Investment Properties Syndicate Ltd (SHIPS) fund had a successful year. The arm sold its Basinghall and St Swithins Lane buildings during the year providing returns to investors of 11% and 20% a year, respectively.
A further acquisition for SHIPS was made in December with the purchase of a multi-let office building on Leadenhall Street in London adjacent to 122 Leadenhall Street, dubbed the "cheese grater", for GBP9 million. 122 Leadenhall Street is owned by FTSE100-listed British Land Co PLC.
Overall, Fletcher King said the commercial property market continued to improve during the year, while the investment market in London and the South East remains "very strong"
The company said investors looking for higher returns are extending their purchasing into most major cities with multi-let industrial buildings and high street shops being most in favour.
However, it said provincial offices, in all but a few centres, continue to be difficult to sell or let.
Looking ahead, Fletcher King said it is "hopeful" of picking up further asset management work this year, while its SHIPS investors have indicated an appetite for further investments if it can find the stock.
Fletcher King shares were untraded at the open Tuesday; they were last quoted at 40.00 pence.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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