Audited results for the year ending 30 April 2025

• Statutory profit before tax of £274,000 (2024: £452,000)
• Adjusted profit before tax of £373,000 (2024: £504,000) *
• Adjusted basic earnings per share of 2.45p (2024: 3.26p) (see note 4) **
• Final proposed dividend: 2.25p per share (2024: 2.25p per share)
• Cash and fixed term deposit reserves: £4.2m as at 30 April 2025 (2024: £3.8m)

*Adjusted profit before tax is before share-based payment expenses and after other comprehensive income (see note 2). The Board considers the adjusted results to be an important measure of performance due to the nature of the Company, and with share options being awarded to directors and key staff only.

**Adjusted basic earnings per share is calculated using adjusted profits (see note 4).

The Annual Report and Accounts will shortly be posted on the Company's website and a further announcement will be made when the document is sent to shareholders.

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

"With property markets remaining subdued, we are pleased to report a profitable year, albeit at reduced levels compared with last year. We are also pleased to recommend maintaining the annual dividend at the same level as last year. Markets may remain challenging for a while longer and we continue to focus on improving non-transactional income. Our strong balance sheet continues to provide comfort as well as the potential for investment activity if we find the right opportunity"

Revenue for the year was £3,841,000 (2024: £3,826,000). Adjusted profit before tax (see note 2) was £373,000 (2024: £504,000). Statutory profit before tax was £274,000 (2024: £452,000).

The Board considers the adjusted results to be an important measure of performance and to be more representative of performance for the year than the statutory results (which have been prepared in accordance with UK-adopted International Financial Reporting Standards).

Dividend

The Board is proposing a final dividend of 2.25p per share (2024: 2.25p per share). The final dividend is subject to shareholder approval at the AGM and will be paid on 24 October 2025 to shareholders on the register at the close of business on 26 September 2025. With no interim dividend paid (2024: £nil per share) the dividend for this year will amount to 2.25p per share (2024: 2.25p per share).

The Commercial Property Market

The UK property investment market has had a slow start to the first six months of 2025 following on from another difficult year. Concerns over the future growth in the UK economy and the effects of Trump's tariffs on the wider global economy make for uncertain times ahead. Nevertheless, signs of resilience are evident notably in prime property and particularly in Central London.

In the first quarter overseas investment remained relatively robust with £5.1bn flowing into the UK market making up 56% of the total, driven by North America and Europe with average prime yields across all sectors at 5.72%. Domestic institutional investment however has remained very subdued and significant outflows from UK property funds continue. Preliminary estimates for the first half of the year suggest volumes are approximately 47% below the long run average, although figures for Central London indicate a slight recovery is underway.

In the circumstances (using MSCI published statistics), the UK commercial property market performed relatively robustly over the last 12 months producing an overall total return of 8.6% which was mainly due to a healthy income return of 5.8% and capital growth of just 2.6%.

The best performing sectors were the retail and industrial sectors which both produced total returns of 10.6% although retail derived more of its performance from income (7.2%) whereas industrial was split more equally between income and capital growth.

For the second year running however, offices lagged behind the other main sectors with a return of just 3.6%. All of the performance was from income return of 5.5% which was pulled back by a capital fall of 1.8% as yields continue to drift out.

Whilst the capital markets have endured a difficult 12 months, the occupational markets have been a different story particularly for prime real estate. Industrial lettings have remained buoyant particularly for 'big boxes' of over 100,000 sq ft where rents around London have risen at an annualised growth rate of 9.5% and around 8% in many other parts of the country.

Although retail rents are generally still below pre pandemic averages in many parts of the country, the first quarter saw a 25% rise in take up compared to the same period last year across all sectors of the retail market. Prime retail parks in particular have maintained high occupancy levels due to strong demand, driving rents up. This is in spite of the challenges of increases to National Insurance and the minimum wage.

The letting market for offices remains a distinctly 2 tier story where there is generally very strong demand from occupiers for the best quality and precious little for the rest. This is particularly the case in London and the South East which is showing the highest level of take-up since 2008 and occupiers face an ever diminishing pool of options. Notably however, 86% of this take-up is in new grade A buildings in prime locations with good transport connections. As a result, leasing activity in London has hit a 5 year high for new developments where the vacancy rates in the prime areas of the City core and West End are minimal as workers return in increasing numbers. This has resulted in headline rents of £90+ and £160 respectively.

As global markets suffer continued volatility, prime London real estate in particular has a long track record of attracting global capital in times of heightened instability. We therefore remain optimistic that the UK commercial property market will continue to provide solid returns over the coming months.

Business Overview

I am very pleased once again to report that we are in profit, although not quite at last year's level. However, it is a good result in what continues to be a very challenging market.

The capital markets continue to be particularly unpredictable. That said we have been active but at lower levels than previously.

The Company continues to work hard on expanding its non-transaction fee income and it has been successful in gaining new clients and increased revenue.

The Property and Asset Management team has been particularly successful at attracting new clients.

The Valuation team have been busy throughout the year with existing clients and with new banks and companies.

Rating income has been good this year but the timing of that fee flow remains unpredictable. However, the performance of the Valuation Office Agency is better now than in the past.

Our recently established Planning Service is performing well and we have added a further surveyor to the team to cope with the increased flow of business.

Outlook

With the current uncertainty both domestically and internationally it is difficult to see the capital markets improving very much. Having said that, we must be somewhere near the bottom and the market will move forward but when?

In the coming year we expect non-transactional income to continue to improve and the teams are working hard in that direction.

We have a strong balance sheet which gives comfort to our clients and also to our hard working and talented staff.

DAVID FLETCHER

CHAIRMAN

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

for the year ended 30 April 2025

Cash flows from operating activities before movement in working capital

NOTES

General information

Whilst the financial information included in this preliminary announcement has been prepared in accordance with UK-adopted international accounting standards, this announcement does not itself contain sufficient information to comply with IFRSs.

The financial information is presented in pounds sterling rounded to the nearest thousand, and prepared in accordance with UK-adopted international accounting standards and under the historical cost convention. The financial information set out in this announcement does not comprise the Group's statutory accounts for the years ended 30 April 2025 or 30 April 2024.

The financial information for the year ended 30 April 2024 is derived from the statutory accounts for that year which have been delivered to the Registrar of Companies. The auditors reported on those accounts; their report was unqualified and 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 year ended 30 April 2025 is derived from the audited statutory accounts for the year ended 30 April 2025 on which the auditors have given an unqualified report, that did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006 and did not include references to any matters to which the auditors drew attention by way of emphasis. The statutory accounts will be delivered to the Registrar of Companies following the Company's annual general meeting.

Alternative performance measures - profit reconciliation

The reconciliation set out below provides additional information to enable the reader to reconcile to the numbers discussed in the Chairman's Statement and Highlights section.

The fair value loss on financial assets represents the loss in the prior year on the revaluation of the Group's interest in the SHIPS 16 syndicate, prior to disposal of the asset.

Dividends

(used to calculate the basic and diluted earnings per share)

(used to calculate the adjusted basic and diluted earnings per share)

Earnings per share