LONDON (Thomson Financial) - Fletcher King Plc. reiterated it sees a significant fall in its turnover and profits and added that the current year ending April 30, 2009 is going to be difficult for the company.

For the year ended April 30, 2008, the group reported a pretax profit of 759,000 pounds against 1.03 million pounds a year ago as turnover fell to 6.41 million pounds compared with 7.44 million last year, dragged lower by the UK property market recession.

The group also announced a total dividend of 3.0 pence per share versus 4.75 pence a year ago.

The property fund manager noted it is experiencing the steepest decline in values in 40 years and added it is likely to continue for much of 2008. The group said it believes the UK property market should start to bottom out towards the end of 2008.

"Although the current year will be tough, Fletcher King benefits from tight management, a reduced fixed overhead, business diversity and a strong balance sheet," Chairman David Fletcher said in a statement.

The group also said its unit Fletcher King Howard's order book for the coming financial year is relatively healthy despite clients delaying capital expenditure as a result of the credit crunch.

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