(FLK) Fletcher King

CHAIRMANS STATEMENT

Results

Revenue for the year was £3.18m (2010: £2.83m) with profit before tax and exceptional items of £414,000 (2010: £288,000). The overall profit for the year attributable to shareholders was £331,000 (2010: £242,000).

The board is proposing a final dividend of 0.75p per share (2010: nil). The final dividend is subject to shareholders' approval at the AGM and will be paid on 29 September 2011 to those shareholders on the register at the close of business on 2 September 2011.  With the interim dividend of 0.75p per share (2010: 1.00p per share) already paid, the total ordinary dividend for the year will amount to 1.50p per share (2010: 1.00p).

The Commercial Property Market

There remains a significant weight of money seeking suitable commercial property investments and the market continues to be strongly polarised between low risk prime property let on long leases to strong covenants together with multi let industrial, which most of the market want to buy, and the remainder.   London and the South East is seen as the most likely area for rental growth and is thus in demand with Central London offices and prime retail now selling at yields at, or marginally below, the previous peak in the market. Elsewhere in the country the market is very patchy.

Rental growth is hard to find outside central London but all is not doom and gloom.  We find, particularly in the industrial properties within the various portfolios we manage, that lease renewals and relettings are taking place throughout the country albeit at rents that are generally lower than those previously paid, and 6-12 month rent free periods are being granted to secure lettings.

Business Overview

The strong performance of our transaction business reported in the Interim Statement continued at a satisfactory but slightly lower rate in the second half and we have started the new year with a good level of sales instructions.

It is still a challenging market in which to acquire properties but we made a significant acquisition in the City for one of our discretionary funds and one or two smaller properties were acquired for clients.  We continue to look for a further acquisition in the City or Mid Town for our SHIPS fund.

Until the level of lending by the Banks increases the market in secondary and tertiary property, which has been traditionally debt financed, is unlikely to improve significantly. Those purchasers seeking prime investments are being frustrated by the lack of supply and may start to look at very good secondary properties later in the year.

I reported last year that our fund management mandates performed well and that has continued.

Meghraj Properties Limited who last year appointed us to manage a portfolio of properties have added to that portfolio during the year.

We have also been appointed to manage six prime office buildings in Mayfair and the City for an off shore European investor.

Despite the difficulties in the economy and the cutbacks we continue to collect 96% of all rents due within three days of the quarter day.  Although bank valuations remain at a very low level our quarterly and annual portfolio valuations continue apace.

Rating has been active this year with some significant reductions achieved for a number of our clients. Our client list continues to expand and we expect the forthcoming year to be good for that part of our business.

Outlook

The coming year will be challenging and it will not be easy to match the performance of this year.

We have started the new year with a good level of investment sale instructions, the majority of which are in the "difficult to sell" sector.  Rating remains strong but the Banks are lending very little into the sector and our valuation business remains subdued. We are working hard to grow assets under management and we are looking for some growth in investment broking.

This year's results have not been achieved without a considerable amount of very hard work from our Directors, staff and the continuing loyalty of our valued clients and I thank them.

DAVID FLETCHER

CHAIRMAN

14 July 2011

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the year ended 30 April 2011

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 April 2011

CONSOLIDATED STATEMENT OF CASH FLOWS

for the year ended 30 April 2011

STATEMENTS OF CHANGES IN EQUITY

NOTES

1. Basis of preparation

The financial information set out above, which has been prepared on the basis of the accounting policies as set out in the prior year's accounts, does not comprise the company's financial statements for the year ended 30 April 2011.  While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRSs), this announcement does not itself contain sufficient information to comply with IFRSs. Statutory financial statements for the previous financial year ended 30 April 2010 have been delivered to the Registrar of Companies. The auditors' report on those financial statements was unqualified and did not contain any statement under section 498(2) or (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 auditors have not yet reported on financial statements for the year ended 30 April 2011.

2.  Dividends

3. Exceptional Items

The Group received a net rates rebate of £118,000 in the year ended 30 April 2010 following a reassessment of rates paid in previous years.

4. Earnings per share