Property services firm Fletcher King has sold its building services subsidiary Fletcher King Howard to members of its management team for a nominal sum.

Fletcher King, chaired by David Fletcher, said it had decided to sell the construction business so it could focus on its core activities of fund management, asset management, valuation and rating.

In the year to 30 April 2008 Fletcher King Howard had a turnover of £1.9m and made a pre-tax loss of £18,000. Under the terms of the sale the Fletcher King Howard directors have agreed to repay an £180,000 loan to Fletcher King as soon as possible.

‘Its (Fletcher King Howard’s) current trading is disappointing and it has recently suffered the unexpected cancellation of a significant government contract,’ said a statement to the stock exchange this morning.

‘Earlier in the year other companies in the construction services sector had indicated some very preliminary interest in buying Howard but this evaporated as the credit crunch accelerated.

‘After discussion with members of the Howard management team, it was agreed to sell Howard to them for a nominal sum.‘

Fletcher King’s share opened this morning at 29p compared with a year high of 52.5p and a year low of 27.5p.