Property manager Fletcher King (LON:FLK) blamed a disappointing year on “surprisingly” strong demand and uncertainty in Scotland.
Pre-tax profits fell to £461,000 in the year to the end of April, down from £711,000 in 2014, while sales slipped to £3.38mln from £3.65mln.
“As a result of the strong demand for investment property, multiple rounds of bidding on properties for sale were the norm, which made buying difficult,” the company said.
In the previous year, the company had a significant one-off performance fee which did not repeat this year.
Rents in Scotland remained significantly below previous peaks despite a pick-up in demand from tenants.
Meanwhile, despite a pick-up in demand from tenants, rents in Scotland remain significantly below previous peaks.
David Fletcher, chairman, said: “Whilst the year was perhaps a little disappointing, it was in line with expectation. We have started the new financial year well and we are hopeful of improving our results."
The final dividend was reduced to 0.75p, from 2.25p a year earlier, taking the total dividend to 2.25p per share, down from 3p.
Fletcher added that business had picked up with the election of the new government.
“In our view the stability given to the market by a pro-business majority Government is likely to subsist for the next few years” the company said.
Shares dropped 10% to 51p.