Preliminary Results

Fletcher King PLC
6 July 2001


Fletcher King Plc ('Fletcher King')

NO SURPRISES IN FLETCHER KING'S RESULTS

Fletcher King Plc, the property and construction services group, today
announces its preliminary results for the year to 30 April 2001.

Highlights

* PROFIT BEFORE TAX:               £461,000 (2000: £602,000)

* TURNOVER:                        £6.255 million (2000: £7.103 million)

* EARNINGS PER SHARE:              3.2p (2000: 4.6p)

* TOTAL DIVIDEND:                  4p (2000: 4p)

* Commercial property Limited Partnership established


Commenting on the results, David Fletcher, Chairman, said:

'The results for the year are in line with expectations. I reported this 
trend at the half year and, whilst some parts of our business have flourished,
others, most notably Howards, have experienced a difficult year. 

The reduced supply of both investment property and occupational space is
likely to affect the company's transactional business and reduced volumes
could impact our profits.   It is too early in the year to quantify this, but
we have a strong and loyal client base, and I have every confidence that our
excellent team of directors and staff will be winning new business during the
year. '



For further information, please contact:-

David Fletcher, Chairman             Fletcher King Plc         020 7493 8400
Christopher Joll/Francetta Carr      GCI Financial             020 7398 0800




CHAIRMAN'S STATEMENT

RESULTS

The results for the year ending 30 April 2001, with turnover at £6.255 million
(2000: £7.103 million)  and profits before tax at £461,000, (2000: £602,000)
although down on last year, are in line with expectations. I reported this
trend at the half year and, whilst some parts of our business have flourished,
others, most notably Howard Associates, have experienced a difficult year.   

Given the results, the Board is proposing to maintain the final dividend of
2.5p (2000: 2.5p) which, subject to shareholders' approval at the Annual
General Meeting, will be paid on 21 September 2001 to shareholders on the
register at the close of business on 20 July 2001.  With the interim dividend
already paid the total dividend for the year will amount to 4p per share
(2000: 4p).


THE COMMERCIAL PROPERTY MARKET

The commercial property market last year was characterised by low interest
rates, low inflation and a general equilibrium between supply and demand for
almost all types of space.   Property financiers, whether institutional or
banking, continued to be reluctant to finance speculative development and, in
consequence, the pipeline for new space was restricted.  As a result, there
has been strong rental growth in many areas of the country.

Whilst interest rates remain relatively low, debt driven buyers are active and
this type of investor has become more dominant over the last year than
traditional institutional investor buyers.

Falling equity markets have unbalanced the asset allocation in many funds and
deterred them from increasing their property holdings.   The normal reaction
to this would be to reduce property allocations by sales, but this is not
happening, as property is thought likely to return better performance in the
coming year than equities.   The resulting reduced supply of investment
property is affecting the industry generally, and our own investment
transactions are likely to be at a lower level this coming year.


OUTLOOK FOR 2001/02

The property market reflects the economy generally and, as the UK economy
appears to be reasonably robust and there is no apparent oversupply of
property, I believe that it is likely to remain healthy through the medium
term.  Overall returns from commercial property investments are expected to
continue to outstrip those of equities and gilts and, assuming interest rates
remain at around their current level, the debt financed sector of the
investment market will remain strong.   If institutional investors remain wary
of equities we may see an above benchmark allocation to property.

Although occupational demand is more subdued compared with the frenetic
activity seen during much of last year, there is no sign yet that the
equilibrium between supply and demand will change significantly.   The
pipeline of new space continues to be restricted, largely as a result of the
extreme difficulty developers experience in financing speculative schemes.

I reported in my Interim Statement that we were proposing to establish a
commercial property investment Limited Partnership and this has now been done.
We are in discussions with a number of potential investors with a view to
establishing a fund towards the end of the calendar year.   This would add
significantly to our discretionary fund management business at a time when we
believe good opportunities for acquiring suitable property investments will
arise.

The reduced supply of both investment property and occupational space is
likely to affect the company's transactional business and reduced volumes
could impact our profits.   It is too early in the year to quantify this, but
we have a strong and loyal client base, and I have every confidence that our
excellent team of directors and staff will be winning new business during the
year.

David Fletcher, Chairman  
6 July 2001 



DIVISIONAL REVIEW

FLETCHER KING, LONDON

Fletcher King in London enjoyed a good year in all divisions.

Investment and Fund Management

In a generally buoyant market, the department had an excellent year and was
involved in transactions with a total capital value of approximately £200
million.

During the year a major pension fund client, for whom we have a discretionary
mandate, doubled its allocation to property, and we purchased offices in
Camberley and Wokingham, and an industrial estate in the Midlands.
 
Our investment broking business was involved in a number of significant
transactions.   With historically low interest rates, the market has been
dominated by property companies and high net worth individuals wishing to gear
their investments and a high percentage of transactions came from this group
of investors.

Although we were active in all sectors of the market, there was in general a
bias towards offices,  with our largest transaction by value being a modern
50,000 sq.ft. £27 million building in the City of London.  Other notable
office deals included a prime office park in Ascot, major investments in
Bristol, Stevenage, Crawley and the West End of London.  Further significant
transactions included a portfolio of motor showrooms, 2 retail warehouse parks
in Bristol and Christchurch, as well as a number of unit shops in regional
centres.   The department was also involved in funding a 58,000 sq.ft.
speculative office development in Watford.

The market has cooled in recent months and although we see little reason for a
major market correction, the forthcoming year is likely to have less buying
opportunities.  Whilst the institutions remain cautious, low interest rates
should ensure that the property company market will remain strong.

The department has a number of significant instructions in hand for the
current year.

Asset Management

During the year many of our existing clients grew the size of their
portfolios.  In addition we won two significant instructions to manage a
shopping centre in Colchester, sold earlier in the year by our retail team,
and, on behalf of BP, a 120,000 sq.ft. office complex in Guildford.

The department now has approximately £950 million of property under
management, with systems and staff in place to expand.   We continue to be
market leaders in the speed of collecting and banking rents, averaging 87.5%
within three days of the quarter and 98% within 13 days.

Rating and Valuation

Last Autumn the Valuation Office commenced negotiations in respect of appeals
against the 2000 Rating List.  The department has been very active in the
early negotiations to establish the tone of the rating valuation list and has
taken a lead role in reviewing the rental evidence in a number of locations.
Significant reductions have already been achieved including, most notably,
Milton Keynes where we have agreed that the office tone should be reduced by
approximately 10%.

We continue to take on new rating clients and in the last year have been
appointed by, amongst others, Whitehead Mann GKR, one of London's leading
recruitment consultants, Reliable Vehicles, a subsidiary of the Scania Group,
and Bryant Homes.  

The number of valuation instructions received increased significantly and
during the year the department valued in excess of £2 billion of property. 

A number of valuations were undertaken for the Bank of Scotland joint venture
with John Laing Properties, the largest of which related to the acquisition of
Energis House in Reading.  The joint venture vehicle intends to redevelop this
site with approximately 600,000 sq. ft. of new offices.

The residential development market has been particularly active in the last 12
months and our valuations for both Barclays and NatWest Banks were generated
through our relationship with a number of residential developers including
Goldcrest Homes Plc and Antler Homes Plc. 

The department's property advisory role in the education field increased last
year, and we have acted for a number of private schools on a diverse range of
matters including valuation, planning and development.

Agency and Development

It was a busy and profitable year for the department and notable Central
London transactions included the disposal of TrizecHahn's headquarters, which
although a premium deal, equated to a rent of approximately £85 per sq. ft.
which indicates the strength of the West End market.   We also acquired
headquarters for the Parthenon Group and Siemens Transport.    Activity in the
M3/M4 corridor and the M25 has been brisk and we disposed of two buildings
totalling 130,000 sq.ft. for BP and a 55,000 sq.ft. complex for Avis. We let
the last building of 18,000 sq.ft. at Winnersh Triangle, Reading for Slough
Estates ending a 20 year involvement with the development.

Current office disposals include a new headquarters complex of 85,000 sq.ft.
at Maple Cross on junction 17 of the M25 and 70,000 sq.ft. of prime offices in
Milton Keynes.

Industrial transactions included an 80,000 sq.ft. disposal for Land Securities
and acquisitions for Expeditos International and Transworld Couriers.

The retail team handled one of the few shopping centre sales of 2000 at Priory
Walk, Colchester for Saville Gordon Group Plc.   The acquisition of 14
neighbourhood centres took place during the year together with shop lettings
for Norwich Union in Bournemouth and for Berry Brothers and Rudd in Sloane
Street.

Whilst the pace of enquiries has slowed, as prospective tenants and purchasers
take longer to make decisions, the department has a good order book and is
currently budgeting to repeat last year's performance.

HOWARD ASSOCIATES

As previously reported, our wholly owned construction services subsidiary
experienced a disappointing year as they adjusted to the market's move away
from construction management to procurement routes with a greater fixed price
element.   The two large construction management jobs which we reported
cancelled at the half year have proved impossible to replace with projects of
a similar size, but encouraging progress has been made in winning new orders.

During the year significant projects completed included a 60,000 sq.ft. office
complex in York for Card Protection Plan, a 64 bedroom medium secure
adolescent unit at St. Andrew's Hospital, Northampton and a 200,000 sq.ft.
national distribution centre for Rexel Senate at Magna Park, Leicestershire.

New commissions include a new stadium for Northampton Saints Rugby Club, a
£2.5 million Peugeot dealership for Robins and Day at Chiswick, a £4 million
sports complex for Berkhamstead Collegiate School and a £2.5 million
development for Scania Limited at Purfleet.

Howards have adapted their service to current client demands in an ever
changing industry, with emphasis more on project management and design and
build.  The wealth of experience that the company enjoys in the management of
the construction process is being used even more on a consultancy basis.  The
company enters the forthcoming year with growing confidence and every
expectation of stronger performance.

FLETCHER KING BRAITHWAITE

Fletcher King Braithwaite in Manchester enjoyed another active year and
continued to maintain its prominence as one of the North West's most active
firms in the industrial and warehouse new development market.

Significant transactions during the year included three schemes in Warrington
totalling approximately 200,000 sq.ft, a 60,000 sq.ft. industrial scheme in
Trafford Park and 52,000 sq.ft. on the Deeside Industrial Estate.

In the investment market the office was involved in acquiring the headquarters
of the Bolton Evening News, a number of High Street shopping investments and a
16 unit industrial estate.   Sales included two significant office buildings
for Property Advisors to the Civil Estate (PACE) - the Government agency, a 50
acre scheme in Wigan, prime units in Warrington and Runcorn and a business
park on Merseyside.

The market in the North West remains active and we anticipate the office will
enjoy further success in the coming year.

FLETCHER KING COSNETT PRICE

Fletcher King Cosnett Price in Birmingham experienced an excellent year.

Significant transactions included the acquisition of 17 acres of industrial
development land for Easter Developments with the first phase of 180,000
sq.ft. due for completion in August.  A 100,000 sq.ft. office and warehouse
complex was acquired for clients on the Dudley South Relief Road, and a
national programme of acquisitions is in hand for Bobby's Food Plc.

Progress on the Rosevale Business Park in Stoke on Trent has been excellent
with three units, totalling approximately 100,000 sq.ft., completed in the
last few months.

A 9 acre development site in Smethwick has been acquired for HGB Properties
and units are currently under construction.

The coming year should continue to be active with a good pipeline of
development property coming online.




                              FLETCHER KING PLC                               
                     CONSOLIDATED PROFIT AND LOSS ACCOUNT                     
                       FOR THE YEAR ENDED 30 APRIL 2001                       



                                                  2001         2000
                                                 £'000        £'000


TURNOVER                                         6,255        7,103
Staff costs                                     (3,976)      (4,197)
Depreciation                                      (143)        (178)
Other operating charges                         (1,767)      (2,196)

OPERATING PROFIT                                   369          532

Share of result of associated undertakings           -            -
Interest receivable and similar income              94           75
Finance charges                                     (2)          (5)

PROFIT ON ORDINARY ACTIVITIES BEFORE
TAXATION                                           461          602

Tax charge on profit on ordinary activities       (177)        (201)

PROFIT FOR THE FINANCIAL YEAR                      284          401

Dividends                                         (352)        (352)

AMOUNTS (DEDUCTED FROM)/TRANSFERRED 
TO RESERVES                                        (68)          49

Earnings per share - basic                         3.2          4.6
                   - diluted                       3.1          4.4


There are no recognised gains or losses other than those included above.

The results shown above represent the group's continuing activities.

                                                                              
                                                                              
                                                                              
                              FLETCHER KING PLC                               
                          CONSOLIDATED BALANCE SHEET                          
                             AS AT 30 APRIL 2001                              


                                             2001              2000
                                            £'000             £'000

FIXED ASSETS
Tangible assets                        390                      584
Investment in associated
 undertakings                           49                       49
Other investments                      903                        -

                                                 1,342          633

CURRENT ASSETS
Debtors                              2,092                    1,825
Cash at bank and in hand             1,066                    1,918

                                     3,158                    3,743

CREDITORS: amounts falling 
 due within One year                (1,993)                  (1,796)

NET CURRENT ASSETS                               1,165        1,947

TOTAL ASSETS LESS CURRENT
LIABILITIES                                      2,507        2,580

PROVISIONS FOR LIABILITIES AND 
CHARGES                                            (12)         (17)

NET ASSETS                                       2,495        2,563

CAPITAL AND RESERVES
Called up share capital                            881          881
Share premium account                               76           76
Profit and loss account                          1,538        1,606

EQUITY SHAREHOLDERS' FUNDS                       2,495        2,563

                                                                              
                                                                              
                                                                              
                              FLETCHER KING PLC                               
                             CASH FLOW STATEMENT                              
                       FOR THE YEAR ENDED 30 APRIL 2001                      


                                                  2001        2000
                                                 £'000       £'000


Net cash inflow from operating activities          506         866
Returns on investments and 
 servicing of finance                               92          86
Taxation                                          (202)       (112)
Capital expenditure and financial 
 investment                                       (880)        (80)
Equity dividends paid                             (352)       (327)

Cash inflow before financing                      (836)        433

Financing                                          (16)        (55)

(Decrease) / Increase in cash in the year         (852)        378




Notes to the preliminary results

1) The basic earnings per share is based on the profit for the financial year
ended 30 April 2001 of £284,000 (2000: £401,000) and on 8,807,279 (2000:
8,807,279) ordinary shares in issue during the year.

2) The financial information set out above does not comprise the company's
statutory accounts.  Statutory accounts for the previous financial year ended
30 April 2000 have been delivered to the Registrar of Companies.  The
auditors' report on those accounts was unqualified and did not contain any
statement under section 237(2) or (3) of the Companies Act 1985.  The auditors
have given an unqualified opinion on the accounts for the year ended 30 April
2001 which will be delivered to the Registrar of Companies following the
Annual General Meeting.