Half-year Report

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RNS Number : 1833M Fletcher King PLC 19 December 2025  

        FLETCHER KING PLC   ("Fletcher King" or the "Company")   Interim Results for the 6 months ended 31 October 2025     Financial Highlights                          

 

Unaudited six months to 31 October 25  

Unaudited six months to 31 October 2024

Audited year to 30 April 2025

Turnover:

£1,631,000

£1,603,000

£3,841,000

Earnings before tax: 

£1,000          

£85,000

£274,000

Basic EPS per share:

0.01p

0.52p

1.48p

Dividend proposed per share:   

nil

nil

2.25p

    Operational Highlights ·      Earnings before tax for the six months to 31 October 2025 was roughly breakeven. ·      A quiet period for property transactions has been compensated for by an increase in non-transactional revenue ·   Facilities management services were insourced during the period, which the Company believes will add annualised revenues of approximately £270,000 per annum ·   Client services were strengthened with a circa. £100,000 investment in personnel, particularly in facilities management and property valuation teams Commenting on the results David Fletcher, Chairman of Fletcher King said: "During the period, we have strengthened our service offering as we continue to focus on growing non-transactional revenue.   Our strong balance sheet gives us the confidence to invest, even when property markets remain subdued, and we will continue to look for opportunities to grow.   We hope that property market conditions will improve in the second half of the financial year and provide the right circumstances for some of the transactions in the pipeline to complete."   This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.   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 £1,631,000 (2024: £1,603,000) with a profit before tax of £1,000 (2024: £85,000).   Dividend   The Board is not declaring an interim dividend (2024: no interim dividend). During the period, a dividend of 2.25p per share was paid (2024: 2.25p per share).   The Commercial Property Market   Investor and occupier sentiment towards commercial property has continued to be negative as the calendar year draws to a close with confidence dropping to a two-year low with transaction volumes down and activity remaining sluggish. The exception however, is London which is defying the trend.

According to MSCI published data, total returns for all property over the last 3 months were 1.5%, and 7.7% over 12 months of which nearly 6% was derived from income and less than 2% from capital growth. The net initial yield for all commercial property stands at 5.22% per annum.

Retail was the best performer (9.4% total annual return) with prime shopping centres, retail warehousing  and South East shops showing the strongest returns although there are signs that this recovery is now slowing down. These returns were closely followed by Industrial (8.9%) where rental values have generally continued on an upward trajectory (particularly in London, Bristol and Leeds) with growth of around 5% over 12 months. This is despite increases in occupancy costs arising from the UBR re-valuation effective from April 2026. Offices again came a poor third with a total return of just 3.1%. Capital values have continued to fall by 2.2% as yields slide across all sub markets, with the exception of London and in particular the West End.

In London, office investment surpassed 2024 levels with volumes reaching £6.4bn driven by rising investor confidence and growth in rental values. The West End has led the way with 74% of volumes in the 3rd quarter with prime yields remaining stable for grade A space and rental growth of around 7.25% over the year, resulting in a total return of 8%. The supply/demand imbalance in central London with only 6.28 million square feet under construction for delivery between 2026 and 2028, is undoubtedly fuelling rental growth across the Capital.

Finally it is interesting to note that of all the other sub sectors, student housing continues to attract large amounts of institutional investment with the third quarter producing particularly strong figures with £1.83bn transacted and with the year to date investment standing at £3.4bn, up 3% on the same period last year. An impressive £50bn has been invested over the last decade into the sector.   Business Overview   The market for property transactions has remained subdued and it has also been a lean period for concluding rating appeals. As a result, transactional revenue is reduced compared to the same period last year. This has been compensated by increased revenue in other areas of the business as the Company continues to focus on growing non-transactional revenue.   In late August 2025, the Company brought facilities management services in house which the Company believes will yield additional annualised revenues of approximately £270,000 per annum, to be partially offset by an increase in associated personnel costs.   In addition to recruitment into the facilities management team, the Company has also significantly strengthened the valuation team with recruitment at all levels.   Whilst turnover is similar to the same period last year, the investment in new personnel (both within facilities management and the valuation team), with associated recruitment costs and induction time totalling approximately £100,000, has impacted earnings before tax for the first half of the year, which is roughly break-even.   Outlook   The outlook for the remainder of the financial year to 30 April 2026 is more encouraging and it is hoped that there will be better progress in closing some of the transactions in the pipeline.   As always, our balance sheet is strong and provides optionality for investment activity whilst giving comfort to new and existing clients and staff.   DAVID FLETCHER CHAIRMAN 19 December 2025

Fletcher King Plc   Consolidated Interim Statement of Profit or Loss and Comprehensive Income  for the 6 months ended 31 October 2025  



6 months ended



6 months ended



Year ended



31 October



31 October



30 April



2025 (Unaudited)



2024 (Unaudited)



2025 (Audited)



£000



£000



£000



 



 





Revenue

1,631



1,603

 

3,841



 



 



Employee benefits expense

(1,061)



(967)

 

(2,313)

Depreciation and amortisation expense

(99)



(98)

 

(196)

Other operating expenses

(533)



(514)

 

(1,122)

Other operating income

22



22

 

44

Share based payment expense

(10)



(26)

 

(99)



 



 



 

(1,681)



(1,583)

 

(3,686)

 

 



 



Finance income

53



70

 

128

Finance expense

(2)



(5)

 

(9)

  Profit before taxation

1



85

 

274

 

 



 



Taxation  

-  



(32)  

 

(121)  



 



 



Profit for the period  

1  



53  

 

153  

 

 



 



  Earnings per share (note 4)

 







- Basic

0.01p



0.52p



1.48p

- Diluted

0.01p



0.52p



1.48p

  Dividends per share

 







Interim dividend proposed

-



-



-

Dividends paid

2.25p



2.25p



2.25p

       

Fletcher King Plc Consolidated Interim Statement of Financial Position as at 31 October 2025



 

31 October

 

31 October



30 April



 

2025 (Unaudited)

 

2024 (Unaudited)



2025 (Audited)



 

£000

 

£000



£000



 

 

 

 









 







Assets

 

 

 

 





Non-current assets



 







Software

 

31

 

49



39

Property, plant and equipment

 

61

 

111



84

Right-of-use asset

 

91

 

206



148

 

 

 

 







 

 

183

 

366



271

 

 

 

 







 

 

 

 







Current Assets

 

 

 







Trade and other receivables

 

1,498

 

1,220



1,652

Cash and cash equivalents

 

3,478

 

824



4,210

Fixed term deposits

 

-

 

2,950



-

 

 

 

 







 

 

4,976

 

4,994



5,862

 

 

 

 







 

 

 

 







Total assets

 

5,159

 

5,360



6,133

 

 

 

 







 

 

 

 







Liabilities

 

 

 







Current liabilities

 

 

 







Trade and other payables

 

666

 

716



1,319

Corporation tax

 

123

 

129



123

Lease liabilities

 

130

 

120



211

 

 

 

 







Total current liabilities

 

919

 

965



1,653

 

 

 

 







 

 

 

 







Non current liabilities

 

 

 







Lease liabilities

 

-

 

107



20



 

 

 







 

 

 

 







Shareholders' equity

 

 

 







Share capital

 

1,025

 

1,025



1,025

Share premium

 

522

 

522



522

Share based payment reserve

 

194

 

111



184

Reserves

 

2,499

 

2,630



2,729

 

 

 

 







Total shareholders' equity

 

4,240

 

4,288



4,460

 

 

 

 







 

 

 

 







Total equity and liabilities

 

5,159

 

5,360



6,133







 







     

Fletcher King Plc   Consolidated Interim Statement of Changes in Equity for the 6 months ended 31 October 2025  







 

 

Share

 

 

 

 





Share



Share

 

Option

 

Retained

 

TOTAL





capital



premium

 

Reserve

 

earnings

 

EQUITY





£000



£000

 

£000

 

£000



£000



















Balance at 1 May 2025



1,025

 

522

 

  184

 

2,729

 

4,460





 

 

 

 

 

 

 

 

 

Profit for the period



-

 

-

 

-

 

1

 

1

Equity dividends paid



-

 

-

 

-

 

(231)

 

(231)

Share based payment expense



-

 

-

 

10

 

-

 

10





 

 

 

 

 

 

 

 

 

Balance at 31 October 2025 (Unaudited)



1,025

 

522

 

194

 

2,499

 

4,240

 



 

 

 

 

 

 

 

 

 

 

















Balance at 1 May 2024



1,025



522



  85



2,807



4,439



















Profit for the period



            -



            -



                   -



53



53

Equity dividends paid



-



-



-



(230)



(230)

Share based payment expense



-



-



26



-



26



















Balance at 31 October 2024 (Unaudited)



1,025  



522  



111  



2,630  



4,288  

 



































Balance at 1 May 2024



1,025



522



  85



2,807



4,439



















Profit for the year



            -



            -



  -



153



153

Equity dividends paid



-



-



-



(231)



(231)

Share based payment expense



-



-



99



-



99





































Balance at 30 April 2025 (Audited)



1,025



522



  184



2,729



4,460

 

















Fletcher King Plc Consolidated Interim Statement of Cash Flows for the 6 months ended 31 October 2025  





6 months ended

 

6 months ended



Year ended

 





31 October

 

31 October



30 April

 





2025 (Unaudited)

 

2024 (Unaudited)



2025 (Audited)

 





£000

 

£000



£000

 





 

 

 



 





 







 

Cash flows from operating activities



 







 

Profit before taxation from continuing operations

1



85



274

 

Adjustments for:



 

 





 

Depreciation and amortisation expense



99

 

98



196

 

Finance income



(53)

 

(70)



(128)

 

Finance expense



2

 

5



9

 

Share based payment expense



10

 

26



99

 





 

 





 

Cash flows from operating activities



 

 





 

before movement in working capital



59

 

144



450

 



 







 

Decrease in trade and other receivables

154



748



316

 

(Decrease) in trade and other payables

(653)



(694)



(91)

 





 

 





 

Cash (absorbed by) / generated from operations



(440)

 

198



675

 

 



 

 





 

Taxation paid



-

 

-



(95)

 





 

 





 

Net cash flows (used in) / from operating activities



(440)

 

198



580

 





 

 





 





 

 





 

Cash flows from investing activities



 

 





 

Purchase of fixed assets



(11)

 

-



(4)

 

Increase in fixed term deposits



-

 

(450)



2,500

 

Finance income



53

 

70



128

 





 

 





 

Net cash flows from / (used in) investing activities  



42  

 

(380)  



2,624  

 





 

 





 

Cash flows from financing activities



 

 





 

Lease payments



(103)

 

(91)



(90)

 

Dividends paid to shareholders  



(231)

 

(230)  



(231)  

 





 

 





 

Net cash flows used in financing activities  



(334)  

 

(321)  



(321)  

 





 

 





 

Net (decrease)/increase in cash and cash equivalents



(732)

 

(503)



2,883

 

 



 

 





 

Cash and cash equivalents at start of period



4,210

 

1,327



1,327

 

 



 

 





 

Cash and cash equivalents at end of period



3,478

 

824



4,210

 





 

 





 

 



 

 





 



 









 

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 19-20 Great Pulteney Street, London W1F 9NF.   These interim financial statements were approved by the Board of Directors on 19 December 2025.   2.     Basis of preparation   The interim financial information in this report has been prepared using accounting policies consistent with international accounting standards or IFRS Accounting Standards ("IFRS") as endorsed by the UK.  IFRS is subject to amendment and interpretation by the International Accounting Standards Board (IASB) and the International Financial Reporting Standards Interpretations Committee (IFRIC) and there is an ongoing process of review and endorsement by the UK Endorsement Board. The financial information has been prepared on the basis of IFRS that the Directors expect to apply for the year ended 30 April 2026.   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 2025. There are no new standards, interpretations and amendments, effective for the first time from 1 May 2025, that have had a material effect on the financial statements of the Group.     2.1  Going concern   The Directors have carried out an analysis to support their view that the Group is a going concern and under which basis these interim financial statements have been prepared. Underlying their conclusion is the Group's cash balance as at 31 October 2025 of £3.5m. The Board believes it is well placed to navigate a prolonged period of uncertainly if necessary.   Analysis and scenario testing has been carried out on the Group's main income streams. Based on the results of this analysis, the Board believes that the Group has the ability to continue its business for at least 12 months from the date of approval of the interim financial statements and therefore has adopted the going concern basis in the preparation of this financial information.     3.     Non Statutory Accounts   The financial information for the periods ended 31 October 2025 and 31 October 2024 and the year ended 30 April 2025 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 2025 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 2025 and 31 October 2024 is unaudited.  

Fletcher King Plc   Explanatory Notes     4.     Earnings per share

 

6 months to 31 October 2025 Number

6 months to 31 October 2024 Number

Year ended 30 April 2025 Number

  Weighted average number of shares for basic earnings per share

  10,252,209

  10,252,209

  10,252,209

Share options (dilution at prevailing average share price)

-

27,545

-

Weighted average number of shares for diluted earnings per share

10,252,209

10,279,754

10,252,209

   

    £000  

    £000

    £000

  Earnings for basic and diluted earnings per share:  

1

  53

  153

    Basic earnings per share  

    0.01p

    0.52p

    1.48p

Diluted earnings per share  

0.01p

0.52p

1.48p

        Forward Looking Statements   Certain statements in this announcement are forward-looking statements relating to the Company's operations, performance and financial position based on current expectations of, and assumptions and forecasts made by, management.  They are subject to a number of risks, uncertainties and other factors which could cause actual results, performance or achievements of the Company to differ materially from any outcomes or results expressed or implied by such forward-looking statements.  Undue reliance should not be placed on such forward looking statements.  They are made only as of the date of this announcement and no representation, assurance, guarantee or warranty is given in relation to them including as to their accuracy, completeness, or the basis on which they are made.    

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