Fletcher King Regulatory News (FLK)

FLETCHER KING PLC

Interim Results for the 6 months ended 31 October 2011

Financial Highlights

Turnover : £1.420M (2010: £1.486M)

PBT : £143,000 (2010: £174,000)

EPS : 1.11p per share (2010: 1.31p per share)

Dividend : 0.75p per share (2010: 0.75p per share)

Operational Highlights

·; The Market - The investment market continues to be polarised and yields on secondary property are rising.

·; Fund Management and Investment - The Company has sold some investment property and has made some acquisitions.

·; Valuation and Rating - Valuation volume remains low with a continuing dearth of bank lending but Rating remains active and is expanding.

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

"Under all the circumstances we have had a satisfactory first half. Market conditions are demanding and are unlikely to improve in the short term.

Asset management continues to be strong and despite the recession we are still collecting 95% of rents within three days of the quarter day."

ENQUIRIES:

Fletcher King Plc

David Fletcher

Tel: 020 7493 8400

Cairn Financial Advisers LLP (Nomad)

James Caithie

Tel: 020 7148 7900

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

CHAIRMANS STATEMENT

RESULTS

The turnover for the period was £1.420m (2010: £1.486m), with profit before tax of £143,000(2010: £174,000).

Your Directors have declared an interim dividend of 0.75p per share (2010: 0.75p per share) to be paid on 24 February 2012 to shareholders on the register at the close of business on 27 January 2012.

Commercial Property Market

Looking back on my statement for the same period last year I could almost repeat word for word my comments made at that date.

The property investment market remains polarised between low risk prime property let on long leases to strong covenants and the remainder. London and the South East continues to be dominant in most buyers requirements.

Office investments in Mayfair have continued to command extremely high prices and yields are, in some cases, below where they were in the previous peak of the market. Prime Central London shops are also much in demand although increasingly investors are becoming wary of the retail letting market as the economic situation impacts spending.

The remainder of the country continues to be relatively weak although in some instances there is reasonable demand from local investors.

There is a growing feeling that secondary and tertiary property is currently over valued and the risk is very much on the downside.

By comparison with last year there is a significant volume of property on the market as some vendors with property in Central London take advantage of the very high prices and elsewhere banks are putting increasing pressure on borrowers to sell.

Business Overview

We have been active on investment sales in the first half including four Central London office investments totalling over £20m and have also been acquiring properties for a small number of clients.

We set up a new SHIPS Fund and acquired a small (£2m) multi-let office investment in St Swithins Lane in the heart of the City of London. Possession has been taken of some of the accommodation to refurbish and let at higher rents. As usual the Company has made an investment in this fund as shown in the balance sheet.

Bank Valuations continue to suffer from lack of lending although Rating instructions are increasing and we are very active.

Property Fund and Asset Management remains strong and although we are selling properties out of some of the portfolios we are also picking up new instructions.

On our managed properties, rent collection statistics are holding up well, despite the recession, and we continue to collect in excess of 95% of rents within 3 days of the quarter day.

Outlook

The continuing turmoil in the Eurozone and much of the world is already having a detrimental effect on the market which makes predictions for the second half difficult. As a result we anticipate the profit outturn for the full year will be below that achieved last year.

However, we have a good flow of regular quarterly income and we are protecting our cash reserves.

David Fletcher

15 December 2011

Fletcher King Plc

Consolidated Interim Statement of Comprehensive Income

 for the 6 months ended 31 October 2011

Fletcher King Plc

Consolidated Interim Statement of Financial Position

as at 31 October 2011

Fletcher King Plc

Consolidated Interim Statement of Changes in Equity

for the 6 months ended 31 October 2011

Fletcher King Plc

Consolidated Interim Statement of Cash Flows

for the 6 months ended 31 October 2011

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 15 December 2011.

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 2012.

The accounting policies applied are consistent with those of the annual financial statements for the year ended 30 April 2011.

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 2011 set out in this interim report does not constitute the Group's statutory accounts for that period. The statutory accounts for the year ended 30 April 2011 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 2011 and 31 October 2010 is unaudited.

4 Earnings per share