Final Results

Fletcher King PLC
11 July 2006



PRESS RELEASE
Not for release before 0700, 11 July 2006


                               FLETCHER KING PLC
           INCREASES PRE TAX PROFITS AND ANNOUNCES INCREASED DIVIDEND


Fletcher King, the London based property fund managers, asset managers and
chartered surveyors, announces today its preliminary results for the year ended
30 April 2006.


Financial highlights:

•    Profit before tax up 10% to £600,000 (2005: £546,000)
•    Final ordinary dividends up 25% to 2.5 pence per share (2005: 2.0 pence
     per share)
•    Earnings per share (EPS) up 14% to 5.09 pence (2005: 4.46 pence)
•    Net assets up 13% to £3,263,000 (2005: £2,896,000)

Operational highlights:

•    Fund Management and Investment department carried out approximately £100
     million worth of transactions
•    Second Stratton House Investment Property Syndicate now 75% invested, and 
     currently outperforming target returns
•    Asset Management department saw improvement in profitability
•    Volume of valuation instructions increased by 20% over last year, and 
     average fee per client increased by 25%
•    Fletcher King Howard, Fletcher King's wholly owned construction services
     subsidiary, increased profitability in line with expectations


Commenting, David Fletcher, Chairman of Fletcher King, said:

'These results represent a solid year for Fletcher King, with profits before tax
up 10%, and I am delighted to recommend the payment of a significantly increased
dividend. I look forward to an exciting year for the Group and anticipate that
we will continue to take full advantage of the growth opportunities that we have
identified for the coming year.'


For further information:
David Fletcher, Fletcher King              020 7493 8400
Tim McCall, MJ2 Business Communications    020 7491 7776



CHAIRMAN'S STATEMENT


RESULTS

Turnover for the year was £6.117m (2005: £6.093m) with profit before tax of
£600,000 (2005: £546,000). The Board is proposing a final dividend of 2.5p per
share (2005: 2.0p). The final dividend is subject to shareholders' approval at
the Annual General Meeting and will be paid on 27 September 2006 to shareholders
on the register at the close of business on 1 September 2006. With the interim
dividend of 0.63p per share (2005: 0.5p) already paid, the total ordinary
dividend for the year will amount to 3.13p per share (2005: 2.5p plus a special
dividend of 1.0p per share).

Our head office lease expired in March 2006. A new lease has been taken for 18
months after which time the landlords are obtaining vacant possession of the
building for refurbishment. The statutory compensation received of £237,000 will
be retained to help fund the move to new premises.


INTERNATIONAL ACCOUNTING STANDARDS

For the year ended 30 April 2006, the Group has prepared its financial 
statements in accordance with International Financial Reporting Standards 
('IFRS'). The comparative information in these financial statements has 
therefore been restated under IFRS.


THE COMMERCIAL PROPERTY MARKET

The commercial property market has generally continued the trend of the last few
years. Letting markets have been relatively positive throughout the country,
with the previously slow office letting markets of Mid Town, the City and
Docklands also showing positive trends in the last 12 months. Demand for offices
in the Thames Valley and the Western Approaches have also seen more positive
activity.

The industrial market remains active and the trend for owner occupation of
smaller units continues. Out of town retail remains buoyant and there is still
competition for prime units in most High Streets even though profit levels for
retailers are under pressure.

The strength of the investment market is undiminished and although many in the
industry continue to call the top of the market, we believe there is still a
likelihood of a further 25 basis points compression in yields in the coming
year. The volume of money seeking a home in the commercial investment market is
measured in billions and this continued weight of money will maintain extensive
liquidity in the market for some time to come. Fluctuation in the 5 year swap
rate has cooled some debt financed purchasing but any slack has been taken up by
other sectors of the market. The introduction of REITs early next year is likely
to create further demand for investment property.

Property investment returns for the year to the end of March were 20.1% as
measured by IPD and are likely to be around 12% for the coming year. At this
level property will again produce an excellent return.

Our second Stratton House Investment Property Syndicate is now 75% invested and
is currently outperforming its target returns. We anticipate being fully
invested within the next few months and plan to launch a third fund in the
autumn.


THE OUTLOOK FOR 2006/2007

Flowing from the stronger letting markets, I anticipate there will be modest
rental growth across most sectors in the coming year which will further underpin
the strength of the investment market. The increasing weight of money in the
market will lead to a further contraction in yields and property will again be a
strong performer in the coming year.

I believe that we are well placed to capitalise on these opportunities and, with
some excellent business in the pipeline, I look forward to a year of growth.


David Fletcher
Chairman
11 July 2006



DIVISIONAL REVIEW


FLETCHER KING

Fund Management and Investment

The return on property during the year was excellent and there was an increase
in funds allocated to the sector by UK institutions, private investors and
overseas investors. UK institutions were net buyers in the year although
overseas investors were the single largest investor with a net commitment of
£6.2b. Yields continued to harden and the IPD equivalent yield fell during the
first three months of 2006, taking it down to an historical low of 5.84%. It is
likely that UK institutions will be the biggest force in the market over the
next 12 months, with overseas investors still fairly active and debt financed
buyers likely to be quieter.

The department had an active year, carrying out approximately £100m worth of
transactions, 70% of which were purchases. Fund management also increased and
now represents 40% of the fee income of the department.

All of our major clients were active and investments were handled across all of
the use classes. Significant purchases included two central London office
buildings for £7.5m and £5m, warehouse fundings in Maidstone and Orpington of
£15m, Dundee retail units £6m, units on Business Parks at Brooklands and Ascot
of £7.5m and £10.5m, and a £4m office purchase in Queen Square, Bristol.

The coming year is likely to be very active and already we have a prospective
£60m of transactions in the pipeline, some of which did not complete prior to 30
April 2006 and have therefore rolled over into the new financial year


Asset Management

As reported at the half year, the department underwent some restructuring and
relinquished an unprofitable client which accounted for in excess of £200,000 of
turnover. Continued attention is being devoted to streamlining our
administrative processes to improve profitability in what is recognised in the
industry as a low margin sector of the business.

House clients who use the department's services are budgeting to acquire at
least £50m of additional property in the coming year, all of which will be
managed by the department.

The facilities management structure, mentioned in my report last year, is now
working efficiently and has improved service to our clients and their tenants.
It has enhanced the speed of response and reduced central administration.

The profitability of the department has improved this year and we anticipate
this will continue in the coming year.


Rating and Valuation

The volume of valuation instructions increased by 20% over last year and the
average fee per client increased by 25%. Clydesdale Bank Plc and Coutts & Co
were among those added to the department's list of valuation clients.

Another steady year is predicted for valuation work with the department aiming
to continue to increase the size of individual valuation instructions and thus
the average fee. Rating fee income was down by 9% over the previous year as the
last of the 2000 Rating List appeals were concluded.

Notable reductions were achieved for Avis and Computacenter on their Thames
corridor offices where we successfully argued that over-supply in the area was a
material change of circumstances and should be taken into account by the
Valuation Officer. A highly successful 9% reduction was also achieved in the
City of London for Standard Bank on their headquarters on Cannon Bridge.

The 2005 Rating List appeals are being targeted by the Valuation Office far more
rapidly than had been anticipated and thus the department is likely to have a
heavy workload in the coming 12 months.


Landlord & Tenant

The department enjoyed another successful year with increased turnover and
profitability and in excess of 60 rent reviews and lease renewals completed
throughout the country. The department is cross-selling its services to clients
of other parts of our business and anticipates an increase in turnover and
profitability in the coming year.


FLETCHER KING HOWARD

Our wholly-owned Construction Services subsidiary again performed well during
the year, increasing its profitability in line with expectations.

The business continues to work on a diverse range of projects and, during the
year, completed the Empress Grandstand at Towcester Racecourse and the £10.5m
Malcolm Arnold House for St. Andrew's Hospital, which won the National
Healthcare Design Award for 2006. Headquarters' office buildings were completed
for Allied Irish Bank and Lambert Smith Hampton.

Activity continues on the £11m Conference Centre for Hayley Conferences at
Windsor and the £9.4m re-modelling of the Northampton School for Boys. This
education theme continues with a £9.6m commission on PFI Schools in Northampton.
Work has started on two mental healthcare projects for St. Andrew's Hospital and
a logistics unit for Monarch Airlines at Luton Airport. A £30m Agri-Processing
Plant is underway in Lincolnshire and a £4m Design Centre for Berkhamsted
Collegiate School has started on site.

The forward order book shows healthy signs with a 124-bed Travelodge Hotel for
Blackpool Football Club, another large mental healthcare commission from St
Andrew's Hospital, and a 4-year rolling programme for the Vehicle and Operator
Services Agency (VOSA) to refurbish all their existing depots throughout the UK.




CONSOLIDATED INCOME STATEMENT

Year ended 30 April                                     2006            2005
                                                        £000            £000



Revenue                                                6,117           6,093
Employee benefits expense                             (4,019)         (3,864)
Depreciation expense                                     (86)            (74)
Other operating expenses                              (1,747)         (1,808)
                                                      -------         -------
Operating profit                                         265             347
Other income                                             237               -
Income from investments                                   34              30
Finance income                                            66              66
Finance costs                                             (2)             (2)
Profit on disposal of interest
 in associated undertaking                                 -             105
                                                      -------         -------
Profit before taxation                                   600             546
Taxation                                                (136)           (153)
                                                      -------         -------
Profit for the year after taxation
 attributable to equity shareholders                     464             393
                                                      -------         -------


Basic earnings per share                               5.09p           4.46p

Diluted earnings per share                             5.06p           4.41p


Dividends:

Year ended 30 April                                     2006            2005
                                                        £000            £000

Equity dividends on ordinary shares:
Declared and paid during year
Ordinary final dividend for the year ended
 30 April 2005: 2.0p per share (2004: 1.0p)              184              88
Special final dividend for the year ended
 30 April 2005: 1.0p per share (2004: 1.0p)               92              88
Interim dividend for the six months ended
 31 October 2005: 0.63p per share (2004: 0.50p)           58              44
                                                      -------         -------
                                                         334             220
                                                      -------         -------

Proposed ordinary final dividend for the year
 ended 30 April 2006: 2.5p per share                     230
                                                      -------


CONSOLIDATED BALANCE SHEET

As at 30 April                                          2006            2005
                                                        £000            £000

Assets
Non-current assets
Property, plant and equipment                            144             162
Available-for-sale investments                           597             797
                                                      -------         -------
                                                         741             959
                                                      -------         -------

Current assets
Trade and other receivables                            1,485           1,630
Amounts recoverable on contracts                         202             199
Cash and cash equivalents                              2,143           1,917
                                                      -------         -------
                                                       3,830           3,746
                                                      -------         -------
Non-current assets classified as held for sale           393               -
                                                      -------         -------

Total assets                                           4,964           4,705
                                                      -------         -------

Liabilities
Current liabilities
Trade and other payables                                 359             400
Current taxation liabilities                             135             153
Other creditors and provisions                         1,085           1,192
                                                      -------         -------
                                                       1,579           1,745
                                                      -------         -------
Non-current liabilities
Deferred taxation liabilities                            122              64
                                                      -------         -------
Total liabilities                                      1,701           1,809
                                                      -------         -------

Shareholders' equity
Share capital                                            921             881
Share premium                                            140              76
Reserves                                               2,202           1,939
                                                      -------         -------
Total shareholders' equity                             3,263           2,896
                                                      -------         -------

Total equity and liabilities                           4,964           4,705
                                                      -------         -------


CONSOLIDATED CASH FLOW STATEMENT

Year ended 30 April                                     2006            2005
                                                        £000            £000

Cash flows from operating activities
Profit before taxation                                   600             546
Adjustments for:
Depreciation expense                                      86              74
Income from fixed asset investments                      (34)            (30)
Interest expense                                           2               2
Interest income                                          (66)            (66)
Profit on disposal of interest in associated 
 undertaking                                               -            (105)
                                                      -------         -------

Cash flows from operating activities before
 movement in working capital                             588             421
Decrease / (increase) in trade and other
 receivables                                             145            (176)
(Decrease) / increase in trade and other
 payables                                               (148)            301
Increase in work in progress                              (3)            (32)
                                                      -------         -------

Cash generated from operations                           582             514
Interest paid                                             (2)             (2)
Taxation paid                                           (156)           (114)
                                                      -------         -------
Net cash flows from operating activities                 424             398
                                                      -------         -------

Cash flows from investing activities
Purchases of equipment                                   (68)            (74)
Proceeds from sale of equipment                            -              16
Proceeds from sale of interest in associated
 undertaking                                               -             132
Purchase of investments                                    -            (250)
Interest received                                         66              66
Income from non-current asset investments                 34              30
                                                      -------         -------
Net cash flows from investing activities                  32             (80)
                                                      -------         -------

Cash flows from financing activities
Capital element of finance lease payments                  -             (17)
Proceeds from the issue of equity shares                 104               -
Dividends paid to shareholders                          (334)           (220)
                                                      -------         -------
Net cash flows from financing activities                (230)           (237)
                                                      -------         -------

Net increase in cash and cash equivalents                226              81
Cash and cash equivalents at start of year             1,917           1,836
                                                      -------         -------
Cash and cash equivalents at end of year               2,143           1,917
                                                      -------         -------


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY



                                                               Profit      Fair
                                              Share    Share      and     value      Total     TOTAL
                                            capital  premium     loss   reserve   reserves    EQUITY
                                               £000     £000     £000      £000       £000      £000

Balance as at 1 May 2004                        881       76    1,559       228      1,787     2,744
Net profit for the year                           -        -      393         -        393       393
Fair value loss on investments                    -        -        -       (32)       (32)      (32)
Deferred taxation adjustment                      -        -        -        11         11        11
                                               ------------------------------------------------------

Total income and expense for the year             -        -      393       (21)       372       372
Equity dividends paid                             -        -     (220)        -       (220)     (220)
                                               ------------------------------------------------------

Balance as at 30 April 2005 
 and at 1 May 2005                              881       76    1,732       207      1,939     2,896
Net profit for the year                           -        -      464         -        464       464
Fair value gain on investments                    -        -        -       193        193       193
Deferred taxation adjustment                      -        -        -       (60)       (60)      (60)
                                               ------------------------------------------------------

Total income and expense for the year             -        -      464       133        597       597
Issue of ordinary shares                         40       64        -         -          -       104
Equity dividends paid                             -        -     (334)        -       (334)     (334)
                                               ------------------------------------------------------

Balance as at 30 April 2006                     921      140    1,862       340      2,202     3,263
                                               ------------------------------------------------------


Basis of preparation

The financial information set out above, which has been prepared in accordance
with International Financial Reporting Standards, does not comprise the
company's statutory financial statements. Statutory financial statements for the
previous financial year ended 30 April 2005 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 237(2) or (3) of the Companies
Act 1985. The auditors have not yet reported on financial statements for the
year ended 30 April 2006, nor have any such financial statements been delivered
to the Registrar of Companies.




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