FLETCHER KING PLC

Preliminary Results for the Year Ending 30^th April 2017

Highlights

·   Revenue for the year of  £4,094,000 (2016: £4,633,000)

·   Profit before tax of £738,000 (2016: £1,355,000)

·   Profit after tax of £579,000 (2016: £1,060,000)

·   Basic and diluted earnings per share of 6.29p (2016: 11.51p)

·   Final dividend of 3.00p per share. An interim dividend of 1.00p per share was paid and therefore the total ordinary dividend for the year will be 4.00p per share (2016: 10.00p)

Commenting on the results, David Fletcher, chairman of Fletcher King Plc said:

"We are pleased with the results for the year. In particular, our second half turned out better than we expected largely due to a higher volume of sales post Brexit than anticipated. All departments performed well during the year and some significant rating appeals were settled despite the Valuation Office continuing to procrastinate on listing appeals. Valuations were steady and asset management enjoyed a better than average year.

We have again started the year with a significant volume of potential sales and are hopeful that at least one of our current SHIPS schemes will be let and sold, most likely in the second half.

Brexit uncertainty and the outcome of the General Election will undoubtedly continue to influence the market and it is impossible at this stage to estimate that impact. Uncertainty is never positive and we expect transactions will prove more difficult to complete. However, this may produce interesting buying opportunities for SHIPS and other clients."

END

For further information, please call:

David Fletcher/ Peter Bailey, Fletcher King           020 7493 8400

James Caithie, Cairn Financial Advisers LLP           020 7213 0880

CHAIRMAN'S STATEMENT

Results

Revenue for the year was £4,094,000 (2016: £4,633,000). Profit on disposal of property investment was £nil (2016: £593,000). Profit before tax was £738,000 (2016: £1,355,000).

The board is proposing a final dividend of 3.00p per share. The final dividend is subject to shareholder approval at the AGM and will be paid on 6 October 2017 to those shareholders on the register at the close of business on 8 September 2017. With the interim dividend of 1.00p per share (2016:1.00p) the dividend for the year will amount to 4.00p per share (2016: 10.00p per share).

The Commercial Property Market

The unexpected EU Referendum result in June 2016 has brought significant uncertainty to the market. However, after initial market turmoil, demand for commercial investment property remained reasonably strong and we transacted a higher level of sales than anticipated at very competitive prices, particularly for industrial investments. Only in the case of Central London sales were prices at marginally below Brexit levels. It was noticeable that although there were fewer buyers in the market there was still competitive bidding for the majority of our sales.

The letting market was by contrast more influenced by the uncertainties and Central London office rents have generally fallen by circa 5% to 10% and demand is definitely somewhat muted.

Business Overview

We are pleased with the results for the year. In particular, our second half turned out better than we expected largely due to a higher volume of sales post Brexit than anticipated. All departments performed well during the year and some significant rating appeals were settled despite the Valuation Office continuing to procrastinate on listing appeals. Valuations were steady and asset management enjoyed a better than average year.

Outlook

We have again started the year with a significant volume of potential sales and are hopeful that at least one of our current SHIPS properties will be let and sold, most likely in the second half.

Brexit uncertainty and the outcome of the General Election will undoubtedly continue to influence the market and it is impossible at this stage to estimate that impact. Uncertainty is never positive and we expect transactions will prove more difficult to complete. However, this may produce interesting buying opportunities for SHIPS and other clients.

It is very difficult to forecast what might happen in the coming year but we have a strong balance sheet, very loyal clients and hard working staff so we are well placed for the challenges ahead.

DAVID FLETCHER

CHAIRMAN

13 July 2017

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the year ended 30 April 2017

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 April 2017

CONSOLIDATED STATEMENT OF CASH FLOWS

for the year ended 30 April 2017

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 30 April 2017

NOTES

1. Basis of preparation

The financial information set out above, which has been prepared on the basis of the accounting policies as set out in the prior year's accounts, does not comprise the company's statutory financial statements for the year ended 30 April 2017.  While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRSs) as adopted by the European Union, this announcement does not itself contain sufficient information to comply with IFRSs. Statutory financial statements for the previous financial year ended 30 April 2016 have been delivered to the Registrar of Companies. The auditors' report on those financial statements was unqualified and did not contain any statement under section 498(2) or (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 statutory accounts for the year ended 30 April 2017 have not yet been delivered to the Registrar of Companies, nor have the auditors yet reported on them.

2.  Dividends

3. Earnings per share