Fletcher King Regulatory News (FLK)

FLETCHER KING PLC

Interim Results for the 6 months ended 31 October 2016

Financial Highlights

Turnover : £1,680,000 (2015: £2,963,000)

PBT : £163,000 (2015: £1,187,000)

Basic EPS : 1.37p per share (2015: 10.26p per share)

Dividend : 1.00p per share (2015: 1.00p per share)

Operational Highlights

· The Market - Some normality has returned to the market following initial turmoil in the immediate aftermath of the EU Referendum result. Pre-Brexit rent levels continue to be achieved and the investment market remains reasonably active although volumes are lower and prices have drifted down 5% - 10%.

· Fund Management and Investment - A number of transactions agreed before the Referendum proceeded to completion and a number of other investment transactions are progressing well.

Commenting on the results David Fletcher, Chairman of Fletcher King said:

"In spite of the Brexit market turmoil we have been able to produce a reasonable performance in the first half year. Uncertainty is likely to be around for some considerable time, but investors and tenants are active and we expect to see steady progress for the remainder of the year".

ENQUIRIES:

Fletcher King Plc

David Fletcher

Tel: 020 7493 8400

Cairn Financial Advisers LLP (Nomad)

James Caithie

Tel: 020 7213 0880

The interim results are available on the Company's website: www.fletcherking.co.uk

CHAIRMAN'S STATEMENT

Results

Turnover for the period was £1,680,000 (2015: £2,963,000) with a profit before tax of £163,000 (2015: £1,187,000). Performance last year was influenced by the sale of a SHIPS property. Your Directors have declared an interim dividend of 1.0p per share (2015: 1.0p per share) to be paid on 17 February 2017 to shareholders on the register at the close of business on 20 January 2017.

The Commercial Property Market

The market has been dominated by the run up to the EU Referendum and the aftermath of the unexpected result to leave.

In the weeks immediately following the result the market was in turmoil with Open Ended Unitised Funds seeing a rush of redemptions and they all closed their doors. However, some normality quickly returned. Whilst a few significant lettings fell through, the market has generally held up well with pre-Brexit rent levels continuing to be achieved. Whilst the letting market is seeing some caution there remains a reasonable level of demand. Apple have announced their move to 500,000 sq ft in the Battersea Power Station development and Google have confirmed that their new 650,000 sq ft London HQ at Kings Cross will go ahead.

The investment market remains reasonably active although volumes are lower and prices have drifted down 5% -10%. The devalued pound has attracted foreign buyers who accounted for 80% of central London deals in the last quarter.

Business Overview

In spite of the market turmoil we have been able to produce a reasonable performance in the first half year. The investment department did particularly well and a number of transactions agreed before the Referendum proceeded to exchange and completion.

Uncertainty remains and is likely to be there for some considerable time until Brexit terms are agreed. However, investors and tenants are active and our business is doing reasonably well.

Outlook

We expect to see steady progress for the remainder of the year and have a number of investment transactions progressing well.

Properties owned by the two SHIPS Syndicates are currently being refurbished although they will not be contributors to this year's profit. Once the markets have settled down we shall be seeking further investments for the SHIPS Syndicates.

David Fletcher

Chairman

15 December 2016

Fletcher King Plc

Consolidated Interim Statement of Comprehensive Income

 for the 6 months ended 31 October 2016

Fletcher King Plc

Consolidated Interim Statement of Financial Position

as at 31 October 2016

Fletcher King Plc

Consolidated Interim Statement of Changes in Equity

for the 6 months ended 31 October 2016

Fletcher King Plc

Consolidated Interim Statement of Cash Flows

for the 6 months ended 31 October 2016

Fletcher King Plc

Explanatory Notes

1. General information

The Company is a public limited company incorporated and domiciled in England and Wales. The address of its registered office is 61 Conduit Street, London W1S 2GB.

These interim financial statements were approved by the Board of Directors on 14 December 2016.

2. Basis of preparation

The interim financial information in this report has been prepared using accounting policies consistent with IFRS as adopted by the European Union. IFRS is subject to amendment and interpretation by the International Accounting Standards Board (IASB) and the International Financial Reporting Standards Interpretations Committee and there is an ongoing process of review and endorsement by the European Commission. The financial information has been prepared on the basis of IFRS that the Directors expect to be adopted by the European Union and applicable as at 30 April 2017.

The accounting policies applied are consistent with those of the annual financial statements for the year ended 30 April 2016. There are no new standards interpretations and amendments, effective for the first time from 1 May 2016, that have had a material effect on the financial statements of the Group.

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.

3. Non Statutory Accounts

The financial information for the period ended 30 April 2016 set out in this interim report does not constitute the Group's statutory accounts for that period. Whilst the financial figures included in this interim report have been computed in accordance with IFRS, this interim report does not contain sufficient information to constitute an interim financial report as that term is defined in IAS34. The statutory accounts for the year ended 30 April 2016 have been delivered to the Registrar of Companies. The auditors reported on those accounts; their report was unqualified, 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 6 months ended 31 October 2016 and 31 October 2015 is unaudited.

4. Earnings per share