Fletcher King plc
Fletcher King plc (the "Company") provides the following trading update.
In the announcement of 18 December 2020, the Company reported a loss before tax of £447,000 for the 6 months period to 31 October 2020, and stated that the remainder of the financial year was likely to continue to be adversely affected by the Covid-19 pandemic with transaction-based fees materially lower than would otherwise be expected.
The Company believes that, whilst there are a number of contingent transaction-based fees that may materialise before the end of the financial year to 30 April 2021, it is very likely that in the second half of the financial year it will also report a trading loss.
In addition, the Company believes that it will be necessary to write down the value of its investment in the SHIPS 16 property syndicate, being an interest in a property in Botolph Lane, London. Two floors in the property remain unlet and prospects for achieving lettings in the current challenging economic environment have been made even more difficult by the return of lockdown measures since December.
Assuming that material contingent transaction-based fees do not materialise before the year end, and taking account of the likely provision required on the SHIPS investment, the Company believes that losses for the second half of the financial year may potentially be similar to the first half.
Looking beyond the end of the financial year, the Company is starting to tentatively see some encouraging signs from clients planning to make investment decisions, and the Company has continued to invest in its people and systems in preparation for the return to more normal market conditions.
The Company remains well supported by a strong balance sheet with no debt.
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.
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.