(Alliance News) - Fletcher King PLC on Friday said profit declined in the first half of its financial year as Brexit uncertainty led to a "subdued property market" in the UK.
The property management firm posted an 18% drop in pretax profit to GBP108,000 in the six months ended October 31 from GBP132,000 a year before as revenue fell 13% to GBP1.3 million from GBP1.5 million.
Chair David Fletcher said that this more muted performance resulted from a weaker commercial property market.
"The first half of the year was dominated by the uncertainties over Brexit and the UK political situation with sales and lettings severely impacted as both tenants and buyers understandably held back on decision making. During the period, investment into commercial property was at a five year low and continued to decline," David Fletcher explained.
The company also said that, while sales instructions completed at a "reasonable volume" in the period, revenue from rating appeals was lower than normal as the UK Valuation Office Agency has been slow to process appeals.
The company maintained its interim dividend at 1.00 pence per share.
The chair said: "We had a reasonable first half, and I am pleased that we are able to report a profit, albeit at a lower level than previous years, and to maintain our interim dividend at the same level as last year. My year-end statement warned of the potential difficulty in maintaining profitability in a volatile market and that situation continues."
Shares in Fletcher King were untraded at 42.00 pence in London on Friday.
By Anna Farley; annafarley@alliancenews.com
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Fletcher King (FLK)