Interim Management Statement

Fletcher King PLC
27 February 2008





Fletcher King Plc Interim Management Statement



Fletcher King Plc is today publishing its Interim Management Statement relating
to the period 1st November 2007 to 31st January 2008.



In line with the rest of the UK commercial property sector, trading conditions
for Fletcher King have generally deteriorated as we forecast in our Interim
Results.



As is widely recognized, the commercial property investment market has continued
to decline, although there is recent evidence of more transactions taking place,
compared to the period immediately before Christmas, but volumes are still at a
low level. Where transactions are taking place they are taking significantly
longer to close and this is impacting on our business.



We are pleased to report however that the level of our valuation, rating and
property management business is currently unaffected by market conditions and
continues to grow.



Fletcher King Howard, our building services subsidiary, is not immune from
market conditions and is currently experiencing a general reticence by clients
to commit to capital expenditure projects.  This division will suffer a small
loss for the year.



Taking all of this together, we currently anticipate that the profit out-turn at
the end of the year will be marginally lower than we were anticipating at the
half year.



We noted the omission of the IFRS requirement to publish a Related Parties Note
together with a Segmental Analysis Note in the Half Yearly Report (sent to
shareholders on 25th January 2008). These are set out below.





Related party transactions



The group is controlled by Fletcher King Plc, a company registered in England
and Wales. Transactions between the Company and its subsidiaries are in the
normal course of business and are priced using arm's length prices. Such
transactions are eliminated on consolidation and are disclosed in the Segmental
Analysis Note below.







Segmental analysis
Six months to 31 October 2007
                                                   General        Construction
                                                  services          services          Unallocated          Total
                                                      £000              £000                £000             £000


Revenue:
Sales to external customers                         2,580               1,018                  -           3,598
                                                                                               
Revenue from inter-segmental transactions               -                  27               (27)               -
                                                                                                              

Total revenue                                       2,580               1,045               (27)           3,598


Operating profit / (loss)                             467                 (2)               (62)             403

Income from investments                                13                   -                 -               13
                                                                                              
Finance income                                         29                   1                 24              54
Finance expense                                         -                   -                  -               -


Profit / (loss) before taxation                       509                 (1)               (38)             470


Taxation                                            (150)                   -                (1)           (151)
                                                                            


Profit / (loss) for the period after                  359                 (1)               (39)             319
taxation


Construction Services comprises the business carried out by Fletcher King Howard
Limited. All other  types of service are General Services. The unallocated
segment comprises the elimination of inter-segmental transactions, holding
company costs and other expenses and income and assets and liabilities not
directly attributable to the operating activities of the Group's business
segments.

                                                   General        Construction
                                                  services          services          Unallocated          Total
                                                      £000              £000                £000            £000


Segmental assets                                    3,378               1,020                  -           4,398
                                                                                               
Unallocated assets                                                                           725             725
                                                        -                   -
Total assets                                        3,378               1,020                725           5,123

Segmental liabilities                               1,251                 285                  -           1,536
                                                                                               
Unallocated liabilities                                 -                   -                  8               8
                                                        
Total liabilities                                   1,251                 285                  8           1,544
Net segmental equity                                2,127                 735                717           3,579

Capital expenditure                                   302                   -                  -             302
                                                                            
Depreciation                                           23                  14                                 37
                                                                                               -



Segmental analysis
Six months to 31 October 2006
                                                   General         Construction
                                                  services            services          Unallocated          Total
                                                      £000                £000                £000            £000



Revenue:
Sales to external customers                          2,469                  980                  -           3,449
                                                                                                 
Revenue from inter-segmental transactions                -                   26               (26)               -
                                                         

Total revenue                                        2,469                1,006               (26)           3,449


Operating profit / (loss)                              340                   22               (98)             264

Income from investments                                  7                    -                  -               7
                                                                              
Finance income                                          12                    1                 24              37
Finance expense
                                                         -                    -                  -               -


Profit / (loss) before taxation                        359                   23               (74)             308


Taxation                                             (122)                    7                 10           (105)
                                                                     


Profit / (loss) for the period after                   237                   30               (64)             203
taxation



                                                 General         Construction
                                                services           services          Unallocated          Total
                                                  £000               £000                £000             £000



Segmental assets                                     2,438                  923                  -           3,361
                                                                                                 
Unallocated assets                                       -                    -              1,425           1,425
                                                    
Total assets                                         2,438                  923              1,425           4,786

Segmental liabilities                                1,301                  273                  -           1,574
Unallocated liabilities                                  -                    -                  7               7
                                                         
Total liabilities                                    1,301                  273                  7           1,581
Net segmental equity                                 1,137                  650              1,418           3,205

Capital expenditure                                     23                    9                  -              32
                                                                                                 
Depreciation                                            24                   14                  -              38
                                                                                                 





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