Fletcher King (AIM: FLK), the London property adviser, reported a roughly breakeven year to 30 April 2026 today and proposed selling its operating business to its management.
Revenue fell to £3.468m from £3.841m a year earlier. Adjusted profit before tax, which excludes share-based payments of £20k (2025: £99k), was £22k against £373k. Statutory profit before tax was £2k, down from £274k, and basic earnings per share were 0.01p (2025: 1.48p).
The company blamed subdued property investment transactions, a lean period for rating appeals (challenges to business rates bills) and about £100k of recruitment and induction costs. Employee benefits fell to £2.218m from £2.313m, while other operating costs rose to £1.163m from £1.122m.
Operating cash flow was an outflow of £559k, against an inflow of £580k. There is no final dividend, compared with 2.25p last year, but a 20p special dividend worth £2.05m was paid on the 17th of July. The company has no debt.
“It has been a challenging period and this is reflected in the results for the year which show roughly breakeven performance.”
David Fletcher, Chairman
Under the proposed transaction, Fletcher King would sell 50% of Fletcher King Services Limited to its management, with put and call options, meaning rights to sell or buy, over the other 50% across two years. The headline price is £1.2m for the whole: £550k for the first half and £650k for the second, plus a £100k Balance Payment. Shareholders must approve it.
Chairman David Fletcher, Richard Goode and David Stewart are retiring, as first announced on the 19th of June. Martin Samworth is proposed as non-executive chair, alongside James Cameron and Elizabeth Shaw. Mr Fletcher said: “I will shortly retire from the Board along with a number of my fellow directors and the Company will enter a new chapter under the direction of a newly composed Board.”
After completion, the new board would evaluate acquisitions in complementary property-related services, including technology, data and AI, using existing cash and the sale proceeds. Any deal would be subject to due diligence, financing and further approval. A Circular is being sent to shareholders and the Annual Report will be posted shortly.
