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Fletcher King PLC (FLK)

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Tuesday 14 April, 2020

Fletcher King PLC

Trading Update - COVID 19

RNS Number : 4568J
Fletcher King PLC
14 April 2020
 

Fletcher King plc

 

Trading Update - COVID 19

 

 

Fletcher King plc (the "Company") provides a business and trading update in light of the COVID-19 virus outbreak.

 

The health and wellbeing of the employees of the Company are of paramount importance and all employees have been operating from home since 17 March 2020. The Company has invested in systems and processes to support remote working and all teams are functioning well in the new environment.

 

The business performance for the first 11 months of the financial year has been in line with the Board's expectations and consistent with the update given in the Interim Statement in December 2019. Performance for the full year to 30 April 2020 is not currently expected to be materially affected by the current crisis.

 

Looking further ahead, whilst there is huge uncertainty caused by the COVID-19 virus, it seems increasingly likely that the wider economic impact will be severe and prolonged. In this scenario, transaction-based fees such as investment deals and bank valuations are likely to be materially lower than would otherwise be expected. The progress of rating appeals is also likely to be further delayed.  Property management activity (which is a core service of the Company) is not expected to be affected to the same extent, although fees may come under pressure should there be a significant decline in the collectability of rents from tenants in client properties (the Property Management team has been successful in collecting 85% of rents for the March quarter by the due date, compared with normal achievement of 99%). The Company is grateful for the support of its loyal clients who have been with the Company for many years.

 

Fletcher King is in a good position to withstand the current crisis and continues to have a strong balance sheet with no debt.

 

The Company will continue to monitor the COVID-19 situation and its potential impact on the wider economy and the Company's business and cash flows. Once our Annual Results to 30 April 2020 are available, we will consider whether a final dividend is appropriate, and if so, at what level.

 

Further updates will be provided as and when new material information comes to light, otherwise we will provide an update with our Annual Results.

 

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

 


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