Fletcher King cautiously optimistic as revenues rise

Listed agent Fletcher King is feeling “cautiously optimistic” about the market after reporting a 25% increase in revenues to £3.8m in the year ended 30 April. Pretax profits across the business rose from £165,000 to £504,000 – a 205% increase. Chairman David Fletcher said the growth in revenues and profits had largely resulted from increased fees earned from transaction completions, particularly in the period immediately prior to its April year end. While the volume of investment deals completed by the business over the period was lower, Fletcher said that had been compensated by a higher-than-normal average deal size. The firm said it had also seen improvement in its non-transactional side of the business with property and asset management contracts helping to add recurring income. Increasing valuations instructions from major high street banks was also credited as contributing to the firm’s increased revenues. “Against a backdrop of subdued property markets, we are pleased to report improved results compared with last year,” said Fletcher. “Markets are likely to remain cautious for a while longer, and it will be a challenge to maintain the same financial performance. However, we have started the new year with a solid base of contracted fee income and, with some good instructions in the pipeline, we are cautiously optimistic for the forthcoming period.”