Fletcher King Regulatory News (FLK)

FLETCHER KING PLC

Interim Results for the 6 months ended 31 October 2021

Financial Highlights

Turnover: £1,426,000 (2020 restated: £909,000)

Earnings before tax: £11,000 (2020: £477,000 loss)

Basic EPS: 0.12p per share (2020: 4.47p loss per share)

Dividend proposed: nil (2020: nil)

Operational Highlights

· Performance was significantly improved on the comparative period last year, reflecting a return to more stable market conditions.

· Steady and predictable revenue from asset management and fund management clients was supplemented by an improvement in transaction-based fee income.

· Post period end, the Company has signed a lease on alternative office premises that are expected to provide a material reduction in fixed overheads.

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

"After a very difficult trading period last year, it is pleasing to report a return to profitability for the first half of this year, albeit a modest one. In normal circumstances we would be hopeful for the trend to continue, but with the emergence of a new covid strain, and potential adverse impact on society and the wider economy, it remains to be seen how our markets will be affected".

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

ENQUIRIES:

Fletcher King Plc

David Fletcher / Peter Bailey

Tel: 020 7493 8400

Cairn Financial Advisers LLP (Nomad)

James Caithie / Liam Murray

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 £1,426,000 (2020 restated: £909,000) with a profit before tax of £11,000 (2020: loss of £447,000).

Dividend

In view of the continued uncertainty and the low level of profit the Board is not declaring an interim dividend. (2020: no dividend).

The Commercial Property Market

Although a degree of uncertainty continued throughout the period, both the letting and capital markets were considerably more buoyant compared to the corresponding period last year and this is reflected in our improved results.

The general improvement in the letting markets however was not across all segments and retail in particular remained generally subdued. Offices were more in demand, particularly in Central London and other major city centres, and industrials continued their upward trajectory.

The capital markets also saw a significant increase in the volume of transactions with investors having substantial funds to deploy seeking suitable property to purchase.

Business Overview

It was pleasing to see the Investment Department return to greater activity and it had a significantly better first half than the corresponding period last year.

Property Management and Fund Management continued its steady performance and added instructions from new clients.

The volume of bank valuation instructions increased and this trend continues. Regrettably the settlement of rating appeals continue to be slow and the timing of negotiations with the Valuation Office are impossible to predict.

We continue to restrict discretionary expenditure where possible. The lease on our current offices expires in May next year and we will be moving to new space which will provide a material reduction in fixed office overheads.

On 4 October we announced that Mr Elliott Bernerd was indirectly acquiring 29.99% of the shares in the Company via a Placing and a purchase of shares from the three largest shareholders which includes myself. The three shareholders will be selling 50% of their holding. The transaction is subject to FCA controller approval which has yet to be received. An announcement will be made as soon as it has, which is now expected in early 2022.

Outlook

Just when we thought the worst of the pandemic was coming to an end we have been hit by a new strain. We are once again in a period of uncertainty and it remains to be seen how our markets will be affected and the duration and severity of any downturn.

In the current circumstances, it continues to be difficult to assess our future trading performance but we are encouraged by the return to profitability in the first half of the year, albeit a modest one, and hopefully in due course we will be able to return to a dividend payment.

We have some good investment sales instructions in the pipeline and there are positive signs of increasing numbers of bank valuations. Rating appeals will remain slow but we are hopeful that at least one of our larger appeals will be agreed.

Our Fund and Property Management mandates will continue to provide a secure income stream with opportunities for growth.

As we have previously announced, and subject to FCA approval, the Board is delighted to welcome Elliott Bernerd as a substantial shareholder in the Company. It has been our wish for some time to have a significant shareholder who would help the expansion of our business and assist us in acquiring new clients and projects. Elliott and I have known each other since the early years of our careers. His expertise, vast experience and contacts throughout the property world will be, I am sure, of great value to the Company and its shareholders.

I am pleased to report that we continue to be securely financed with a strong balance sheet and cash reserves. This is important not only for shareholders but also it gives confidence to our valued clients and hard working and talented staff who I thank for their valuable contribution.

DAVID FLETCHER

CHAIRMAN

23 December 2021

Fletcher King Plc

Consolidated Interim Statement of Comprehensive Income

 for the 6 months ended 31 October 2021

* Prior period restatement relates to the realignment of the Group's revenue recognition policy to the principal versus agent requirements of IFRS 15. As a result, revenue has been presented gross of fees shared with third parties, with the related costs now included within other operating expenses. The impact on revenue and costs is £0.04m. The restatement has no impact on the Group's profit for the period, earnings per share or net asset position.

Fletcher King Plc

Consolidated Interim Statement of Financial Position

as at 31 October 2021

Fletcher King Plc

Consolidated Interim Statement of Changes in Equity

for the 6 months ended 31 October 2021

Fletcher King Plc

Consolidated Interim Statement of Cash Flows

for the 6 months ended 31 October 2021

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 22 December 2021.

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 apply for the year ended 30 April 2022.

The accounting policies applied by the Group in this interim report are the same as those applied by the Group in the consolidated financial statements for the year ended 30 April 2021. There are no new standards, interpretations and amendments, effective for the first time from 1 May 2021, that have had a material effect on the financial statements of the Group.

3. Non Statutory Accounts

The financial information for the period ended 31 October 2021 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 2021 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 2021 and 31 October 2020 is unaudited.

Fletcher King Plc

Explanatory Notes

4. Earnings per share