Fletcher King – prospects in it markets

PUBLISHED: Jul 25 2016 @ 06:01 | Comments (0) |

While we should always keep in mind the resilience Fletcher King (LSE:FLK) has demonstrated in previous property downturns we also need to consider the worrisome words of a forty-year veteran, David Fletcher.

In the 2016 Prelims, he started with a statement of stability, “The underlying business performed much in line with last year”. So the stalwart bread-and-butter business is chugging along nicely – not growing, but not shrinking either.

But then we come to the great uncertainties: “The unexpected vote to leave the EU has had a destabilising effect on the market and the uncertainties are likely to influence it for some time to come…….challenging times.”

Already some statistical evidence is feeding through: “demand from both tenants and investors…..diminished somewhat in the lead up to the EU referendum. This was particularly noticeable in the investment market. The stamp duty increase of 1% didn’t help and data from the Investment Property Databank (IPD) showed capital values in Q1 2016 falling for the first time for some years albeit by only 0.2%. UK investors have been net sellers in Q4 2015 and Q1 2016 and the outlook post Brexit is currently uncertain.”

And some anecdotal evidence: “Clients are delaying decisions to sell and purchase……………..To read the rest of this article, and more like it, subscribe to my premium newsletter Deep Value Shares – click here http://newsletters.advfn.com/deepvalueshares/subscribe-1

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