Fletcher King plc
Fletcher King plc (the "Company") provides the following business and trading update.
In the announcements of 20 August and 14 September 2020, the Company stated it was very likely to make a loss in the first half of the current financial year. Following the end of the half year on 31 October 2020, the Company confirms that a trading loss has been made, and, subject to adjustments, this is currently expected to be approximately £450,000 (before tax and any fair value adjustment to investments). Further details will be disclosed in the Company's interim results which will be published by no later than 31 January 2021.
The Company highlighted in its announcements of 20 August and 14 September 2020 the huge uncertainty and market dislocation caused by the COVID pandemic, which was likely to have a material adverse impact on transaction-based fees such as investment deals, bank valuations and agreement of rating appeals. Trading during the first half of the financial year has confirmed this, and transaction-based fees have been materially lower than would otherwise be expected prior to the COVID pandemic.
Whilst there remains an encouraging pipeline of potential investment business, there is still significant uncertainty around the timing or likelihood of completions. Performance in the second half will be highly dependent on investor sentiment and the economic environment in which the Company operates. Given the new lockdown measures which have just been announced by the UK government, and the potential for further lockdowns during the remainder of the financial year, it remains likely that transaction-based fees will continue to be affected by the COVID pandemic.
The Company remains well supported by a strong balance sheet with no debt.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Fletcher King plc
David Fletcher / Peter Bailey
Tel: 0207 493 8400
Cairn Financial Advisers LLP
James Caithie / Liam Murray
Tel: 020 7213 0880
Forward Looking Statements
This announcement contains forward-looking statements relating to expected or anticipated future events and anticipated results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, competition for qualified staff, the regulatory process and actions, technical issues, new legislation, uncertainties resulting from potential delays or changes in plans, uncertainties resulting from working in a new political jurisdiction, uncertainties regarding the results of exploration, uncertainties regarding the timing and granting of prospecting rights, uncertainties regarding the Company's ability to execute and implement future plans, and the occurrence of unexpected events. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors.