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Fletcher King PLC - Trading Update

RNS Number : 6387W
Fletcher King PLC
20 August 2020
 

Fletcher King plc

 

Trading Update

 

 

Fletcher King plc (the "Company") provides the following business and trading update.

 

The Company highlighted in its announcement of 14 April 2020 that, whilst performance for the year to 30 April 2020 was not materially affected by the COVID-19 virus outbreak and was in line with management expectations, the huge uncertainty and market dislocation caused by the current situation 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 Q1 has confirmed this outlook and transaction-based fees have been materially lower than would otherwise be expected. In particular, investor clients and counterparties have adopted a wait-and-see approach resulting in delayed progress of potential transactions.

 

Non transaction-based fee income associated with fund and property management has been relatively unaffected. On behalf of retained clients, who pay contracted quarterly fees, the property management team has been successful in collecting 80% of rents for the June quarter within 7 days of the due date, a good result in the circumstances.

 

The Company has also been impacted by a severe contraction in the Professional Indemnity insurance market, particularly with regard to property valuation work. The renewal premium has more than doubled, increasing by just over £200,000 for the financial year.

 

Whilst there is potential for recovery of fee income later in the financial year, it is very likely that the Company will make a loss in the first half of its financial year.

 

The Company remains well supported by a strong balance sheet with no debt.

 

The Company's audited results for the year ended 30 April 2020 are expected to be announced on or around 11 September.

 

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

 

 

 

Enquiries

 

Fletcher King plc

David Fletcher / Peter Bailey

Tel: 0207 493 8400

 

Cairn Financial Advisers LLP

James Caithie / Tony Rawlinson

Tel: 020 7213 0880

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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Quick facts: Fletcher King

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Market: AIM
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