Half-year Results

Financial Highlights

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."

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

Fletcher King Plc

Consolidated Interim Statement of Profit or Loss and Comprehensive Income

for the 6 months ended 31 October 2025

Fletcher King Plc

Explanatory Notes

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.

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.

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

Earnings per share