Fletcher King cuts dividend as lettings hit by 'Brexit uncertainty'

Property asset and fund management company Fletcher King on Friday saw its shares drop over 15% after the company slashed its dividend on the back of a 63% drop in annual profits.

The AIM traded company's pre-tax profit for the year ending 30 April fell to £274,000, down from £738,000 the previous year, as revenue fell 24% to £4.1m as “Brexit uncertainty” hit the Central London office letting market.

Following the disappointing results, the company declared a final dividend of 0.75p per share, bringing annual dividends to 1.75p, down from 4.00p on-year.

The company faced further problems from the fact that rises in online sales are adversely affecting the high street, a situation that is “likely to remain the case for some time,” according to Fletcher King.

These uncertainties have caused the company problems in letting the two SHIPS buildings in the City and Clerkenwell although both buildings do have some of the space occupied.

David Fletcher, chairman of Fletcher King, said: "The results for the year were undoubtedly disappointing and did not live up to management's expectations, but we start the new year with some good sales instructions and good recurring revenue. Our balance sheet remains strong."

The company reported that the current year has started well and that it intends to let and sell the two SHIPS properties during the coming year but “not perhaps in the first half”.

Fletcher King also holds interest in both industrial buildings and London office buildings that the board expects to be sold in the coming year.

As of 1531 BST, Fletcher King’s shares were down 17.99% at 49.00p.