REG - Panther Securities - Final results for the year ended 31 December 2025
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RNS Number : 2370E Panther Securities PLC 14 May 2026
Prior to publication, the information contained within this announcement was
deemed by the Company to constitute inside information as stipulated under the
Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of
this announcement, this information is now considered to be in the public
domain.
14 May 2026
Panther Securities P.L.C.
("the Company" or "the Group")
Financial results for the year ended 31 December 2025
CHAIRMAN'S STATEMENT
It gives me pleasure once again to be able to present the results for the year
ended 31 December 2025. Our profit after tax for this period was £4,253,000
compared to £6,687,000 for the previous year ended 31 December 2024. This
change was partially driven by a decrease in the valuation of our swap
position of £1,075,000 for the year ended 31 December 2025, compared to a
valuation gain of £3,265,000 for the year ended 31 December 2024.
The results for 2025 were helped by a revaluation gain on investment
properties of £3,209,000 (year ended 31 December 2024 saw a revaluation gain
of £1,300,000). The underlying business's strength can be seen by
consistent profits, valuation increases and rent increases.
Rents Receivable
During 2025, rents receivable amounted to £14,850,000 compared to
£14,657,000 for the prior year.
On 16 September 2025, our £120,000 refurbishment of a small part of our
Wickford factory estate was completed and let at £155,000 per annum.
Likewise, two factories in Tenbury Wells totalling approximately 60,000 sq.
ft. had their short-term leases renewed to new 10 year leases with our
existing tenants at slightly increased rents (the smaller factory rising to
£48,000 pa and the larger factory rising to £162,000 pa), a total increase
(after concessions) of £40,000 pa. At about the same time, the tenant
became a subsidiary of Biffa, previously a FTSE 100 company, making the
lettings in Tenbury Wells more beneficial. Our factory in Huntingdon renewed
its lease for 15 years (just after the year-end) rising from £175,000 pa to
£290,000 pa at the fifth year.
At Chorley one of our tenants took a new lease on one factory unit and took an
extra unit making £91,000 pa rent as against £48,000 pa previously. A former
Beales unit in St Neots was partially taken by Pure Gym for 15 years at a rent
of £98,150 pa after an initial rent concession.
Our rental income is increasing, some of it in part due to the refurbishing
works in some of our larger vacant units, resulting in more manageable and
attractive smaller units which can appeal to a greater number of potential
users.
Interest Costs
Our interest costs were approximately £500,000 lower in 2025 than the year
ending 31 December 2024 due to significant de-gearing at the beginning of 2025
and due to our bank loans having lower margins, for the whole of 2025,
following the refinance that was completed in March 2024.
We take this opportunity again to thank our lenders, HSBC and Santander, who
have been our partners together for 46 years and 16 years respectively.
Bad Debts
Bad debts for the year ended 31 December 2025 were £261,000 compared to
£526,000 in 2024, a pleasing reduction.
Property Values
The Directors arranged for external valuers to value most of the Group's
property portfolio as at 31 July 2025, which was mainly adopted by the
Directors for the valuation at 31 December 2025 and shows an increase in fair
value of £3,209,000.
Derivative Value
At 31 December 2025, the value of our derivative financial assets was
£4,695,000, which represented a reduction of value since last year of
£1,075,000.
Property Sales
In February 2025 we sold our freehold site in Wolverhampton which included
Charles House, Premier House and 78 Darlington Street. This property was
purchased in August 2010 for £1,560,000. It was a mixed-use group of older
buildings with approximately 70,000 sq. ft. of occupiable space on 1.2 acres
of city centre land. When purchased it produced rents of £278,000 pa
(£195,000 after costs) and was viewed as a development site due to its size
and location. The Group managed to maintain a high level of income for
almost its entire ownership. Prior to sale it was producing rent of
£122,000 pa (and £80,000 after costs). The price achieved was £2,500,000
which we considered a good price.
Property Purchase
The freehold of 134-136 Above Bar Street, Southampton was purchased at auction
in March 2025 for £253,000, formerly owned by Southampton Borough Council.
We already owned the long leasehold interest with circa 85 years remaining at
a ground rent of £12,225 being fixed at 15% of the rents receivable, out of a
current total of £81,500 pa. We now no longer have an issue of having a
depreciating asset thus also allowing development if in the future a
residential scheme in the upper parts is deemed profitable.
General Letting Market
As previously mentioned, we have several useful lettings well in hand which
should help increase our rental income for future years and have the extra
benefit of reducing carrying costs. Some of these are subject to us
completing substantial refurbishment works for the tenants' agreed
requirements.
As of 31 December 2025, our net asset value has increased to 672p per share
which is an increase of approximately 3p per share from December 2024 of 669p
(although we did pay a special dividend during the period in October 2025
which reduced the potential increase).
As announced on 5 September 2025, the purchaser of our former Beales store in
Peterborough paid the first £500,000 of the contracted deferred payment.
This was paid two weeks earlier than contractually agreed, which gives us
confidence that the next £500,000 payment, due in June 2026, should be met.
Post balance sheet events
In February 2026 the Group purchased 50,000 of its own ordinary shares,
through the market, to be held in treasury. 42,500 of these shares were
purchased from related parties.
In March 2026 the Group restructured its financial derivative with HSBC,
having a nominal value of £35,000,000 providing a fixed interest rate of
3.40%, via the cancellation of the existing contract and entering into a new
contract, so that this interest rate swap will now end on 1 September 2031
rather than the original end date of 1 September 2038. This has resulted in a
cash settlement of £2.06 million being received by the Company.
In March 2026 the Group paid back £1,945,000 of its loan facility (using
disposal proceeds). These funds can be redrawn.
In April 2026 we completed on the disposal of two shops in Widnes to two
different parties - sold at Public Auction. This generated cash on the
disposals of £284,000 before costs resulting in a circa £80,000 profit on
book value. One of the shops was purchased by a related party.
In April 2026 the Group announced that Peter Kellner and Bryan Galan,
Non-Executive Directors, would retire as directors on 17 June 2026.
Charitable Donations
We continue to support several charities, especially ones local to areas in
which we operate and have interests in.
Political Donations
At last year's AGM I proposed a resolution for the Company to donate £25,000
to the Reform UK political party and this was successfully passed by
shareholders by both the number of affirmative voters and total of their
shareholding, as always with myself abstaining from voting my personal
holdings. I have once again asked for this Resolution to be submitted to
shareholders, although this year I have reserved the right to vote part of my
personal shareholding to neutralise an institutional shareholder that may vote
against as they have their own neutrality rules and thus most individual
shareholders will be the deciders.
I continue my previously stated opinion that most business problems are caused
by poor government policies on taxation and legislation.
The current Labour government have followed through on their foolish,
vindictive and drastic anti-business taxes on employment with harmful policies
for savings, farmers, strivers and successful entrepreneurs, which are
particularly hard on those who save or invest for the future to avoid becoming
a burden on the state in old age.
They have continued to disallow VAT rebates on expensive purchases by overseas
tourists, so now most of these high spending tourists spend their money in
other major cities such as Paris, Milan or Barcelona etc., providing
significant extra tax receipts to those countries. This produces a loss of
tourism and spending on hotels etc. in the UK, which would be of substantial
benefit to the UK's hospitality industry which is suffering badly from the
poor tax decisions loaded upon them by what I consider to be an incompetent
government.
The current government has still not addressed the ridiculous inadequacies of
business rates, the cause of so many problems as well as part of the collapse
of long-established businesses. They encouraged second homes being charged
double Council Tax for lower service levels, which are already causing
financial problems for many seaside beauty spot towns, depriving them of
'broad shoulder' spending.
We still receive poor and slow service from practically every bureaucratic
government department, without any sign of an attempt to address the problems
other than encouraging a four-day week and informing taxpayers that our
bureaucrats are happier and thus working better. What tosh!
This government has increased the tax burden and are already turning what was
a slowly recovering economy into what I consider will likely become a rapidly
sliding downturn and is ill prepared for the additional problems caused by
wars in other territories.
The Taxpayers' Alliance provided research that exposed that up to 25% of many
of our council taxes go towards the gold-plated pensions of the bureaucrats
who serve us so badly, whilst the taxpayers of the private sector have
employers who are rarely able to provide such largesse in pensions. It was
recently revealed that the civil service needs £57 billion annually to pay
all public sector workers their promised pensions. This seems to be enough
to cover the black holes of the previous two budgets and possibly fill in the
potholes in our roads!
Dividends
The Company is declaring a final dividend for the year ended 31 December 2025
of 6p per share. As we are in a stronger financial position than for some
time, we paid a special dividend of 10p per share, also an interim dividend of
6p per share, both of which were paid on the 29 October 2025 to shareholders
on the register at 10 October 2025.
The final dividend of 6p per share will be payable on 15 July 2026 to
shareholders on the register at the close of business on 26 June 2026 (Ex
dividend on 25 June 2026).
I repeat my thanks to our small but dedicated team of staff, growing team of
financial advisers, legal advisers, agents and accountants for all their hard
work during the period.
Special thanks and good wishes go to our tenants, many of whom are
comparatively small entrepreneurial businesses, and I hope they can continue
to manage through the present business climate with the excess burdens placed
upon them by rapacious government taxes which we hope are only temporary.
Non-Executive Directors
Shareholders will notice that Bryan Galan and Peter Kellner, who have been
Non-Executive Directors since June 1994, are retiring after our 2026 AGM.
Both joined when 'Panther' obtained a renewal of its then full listing on the
London Stock Exchange in June 1994, having originally been first listed in
1934 as Levers Optical Company, subsequently taken over by myself, my brother
and Malcolm Bloch, my business partner in 1972 after our contested takeover
where we transformed the company to a successful property company.
I first met Bryan over 10 years earlier at Marcus Leaver & Co and Peter at
our then bank 10 years after that and was thus well aware of their particular
skills and qualities worthy of inviting them to join our Board.
On behalf of all our shareholders I would like to thank them both for the
quality of their guidance, for their undoubted loyalty and reliability, and
for their constant support for Panther over many years.
Once again, I repeat I do not feel I can do justice to the incompetence of the
present Government and certainly cannot present the problems created by them
any better than many journalists, especially of the Daily Mail and Daily
Telegraph who have forcefully expanded on subjects which I have highlighted
about bureaucratic foolishness in my Chairman's Ramblings briefly over the
last 20 years or so. This time the Ramblings have taken a slightly different
direction. I will be sending shareholders a copy of my Ramblings of 2004
"What A Shambles" with a few comments on any changes for the better or
worse. If nothing else, it will help you get to sleep if read as bedtime
reading!
This is being sent separately in my personal capacity, as it reflects my
personal opinions, and our advisors have often felt these may not be suitable
for announcing via a regulatory information service. Copies are available upon
request as nominee holders do not automatically always receive printed
accounts.
Andrew S Perloff
CHAIRMAN
13 May 2026
GROUP STRATEGIC REPORT
The Directors present their Strategic Report for the year ended 31 December
2025.
About the Group
Panther Securities P.L.C. ("Panther", the "Company" or the "Group") is a
property investment and development company quoted on AIM. The Company has a
long-established history as a public company, having first listed in 1934.
The Group owns and manages a substantial and diversified portfolio of
commercial and residential property assets throughout the United Kingdom. The
portfolio comprises approximately 900 individual occupational units within
around 120 separately designated buildings.
The Group invests principally in secondary retail, industrial and office
property together with residential assets, with a focus on opportunities where
active management, refurbishment, redevelopment or planning enhancement can
create additional shareholder value.
The majority of the Group's asset management, property management and lettings
activities are undertaken in-house, enabling close control over costs, tenant
relationships and investment performance.
Strategic objective
The Group's principal objective is to maximise long-term shareholder returns
through growth in net asset value and dividends, supported by recurring rental
income and selective capital appreciation.
Its strategy is based on:
· maintaining a diversified portfolio by geography, sector and
tenant exposure;
· acquiring assets where management believes value can be enhanced;
· in-house asset management to improve rents, occupancy and asset
quality;
· recycling capital through disposals where value has been
realised;
· maintaining prudent gearing and strong banking relationships; and
· preserving financial flexibility to take advantage of market
opportunities.
The Board believes this disciplined and opportunistic approach has served
shareholders well over many market cycles.
Progress indicators
The Board monitors performance using a range of financial and operational
metrics, including:
Key ratios and measures
2025 2024 2023 2022
Gross profit margin (gross profit/ turnover) 57% 55% 54% 57%
Loan to value* 35% 38% 39% 39%
Interest cover (actual) * 362% 299% 317% 297%
Finance cost rate (finance costs excluding lease portion/ average borrowings
for the year)
5.3% 5.8% 6.7% 7.0%
Yield (rents from investment properties/ average market value investment
properties)
8.6% 8.4% 8.4% 8.2%
Net assets value per share 672p 669p 640p 637p
Earnings per share - continuing 24.5p 38.4p 25.3p 96.6p
Dividend per share** 22.0p 12.0p 22.0p 12.0p
Investment property acquisitions £0.3m £0.3m £3.4m £8.9m
Investment property disposal proceeds £4.8m £4.5m £1.0m £1.2m
* As reported to the Lenders - based on charged property rents, borrowed funds
and bank valuations as appropriate.
** Based on those declared and proposed for the year.
The Board considers growth in net assets over time, sustainable earnings,
dividend capacity and prudent leverage to be the most relevant indicators of
long-term progress.
Business review
The Group delivered a resilient performance for the year ended 31 December
2025 despite continued economic uncertainty, persistent inflationary pressures
in certain cost areas and a relatively elevated interest rate environment.
Rental income increased to £14.85 million (2024: £14.66 million), reflecting
lettings activity, rent reviews, lease renewals and the benefits of continued
active management across the portfolio.
Profit before tax for the year was £5.56 million (2024: £8.67 million). The
reduction compared with the prior year principally reflects lower gains,
including movements in derivative valuations and disposal profits recorded in
2024.
Profit after taxation amounted to £4.25 million (2024: £6.69 million), while
total comprehensive income for the year was £4.26 million (2024: £6.70
million).
Net assets increased to £116.6 million (2024: £116.2 million), equivalent to
672 pence per share (2024: 669 pence per share). The Group currently shows a
large discount when comparing its prevailing share price to its current net
asset value, and the Board believes this is mainly due to a lack of
transactions in its shares.
The Board is pleased that the Group has continued to strengthen its balance
sheet, grow net asset value and maintain an attractive dividend distribution,
whilst reducing gearing, notwithstanding a more challenging market backdrop.
Going forward
Whilst the outlook appears there will be mainly negative economic head-winds,
in these clearly uncertain times, we see our relatively small business as a
safe haven for investors.
Our medium term trends still show we are experiencing rental growth, some of
this is from renting long-term vacant properties and the rest from improved
rental terms. Going forward over the next few years we hope this continues,
but at worst we should be able to maintain income. One of the ongoing
important issues for the Group is to control the holding and maintenance costs
of our properties. An action we are taking is to sell some properties in the
year that we consider have less upside (and some with higher holding costs),
and the ones we sold with rental income we believe have more downside than
potential. In terms of costs, we continue to monitor them with our systems
and where possible look to phase our works programmes. When we manage or
control and/ or phase our costs more effectively, we have the ability with
long term income rental streams and fixed interest rate costs to increase
Group profitability.
We continue to improve the energy efficiency of our buildings, where possible,
to keep them in line, or even ahead of the EPC ("energy performance
certificate") regime requirements. We have now got to a comfortable level in
terms of the longer term viability of our properties, with our latest review
showing that just under 76% of our income is being generated from properties
with EPC grading C and above.
We are working on opportunities to unlock value within our portfolio, both in
terms of letting more of the vacant properties, selling properties where
appropriate to recycle the cash, adding additional residential units by
reproposing upperparts and selling long term vacant properties (often
following achieving planning).
The economy continues to be a relatively high-interest rate environment,
compared to post financial crisis periods, inflation was getting under control
in 2025 but due to oil prices is now increasing. With likely stubborn
inflation together with the backdrop of higher taxes, slower global growth,
cuts to benefits, job losses and higher government borrowing there continues
to be a lot of downside risk to the economy. The Group has fixed its
interest rate swaps which will protect us from interest rate increases. The
nature of property companies gives the Group some built in natural hedge over
inflation, as property investments tend to increase in line with inflation,
whilst the real value of loans utilised effectively decreases.
Our Group benefits from an excellent spread of assets, producing multiple
income streams, financed by secured long term loans, at low gearing, fixed at
attractive levels all run by an experienced management team. So whilst we
continue to operate within politically and globally uncertain times, this does
not hugely concern the Board as we are set up to find opportunities and our
business model seeks to protect shareholder value.
The Board is confident about the business prospects going forward.
Financing and treasury
The Group has a Loan facility of £68 million, split between a £55 million
term loan and a £13 million revolving facility. The facility had two years
and 3 months to remaining term at the year end (with an option of a one year
extension subject to credit approval). The interest rate payable is 2.3
per cent. over three-month SONIA with a ratchet that can take it to 2.5 per
cent over three-month SONIA in certain circumstances.
The Group had drawn £57m at the year end which was reduced post year end, in
April 2026, meaning, only the term element was drawn of £55m. A swap
cancelation premium was used to reduce gearing in March 2026.
Loan to value at the year end was 35%, providing significant covenant headroom
and financial resilience. The Board continues to believe prudent gearing is
appropriate given the cyclical nature of property markets and the
opportunities that can arise during periods of market dislocation.
The Group also benefits from long-standing relationships with its lenders,
HSBC UK Bank plc and Santander UK plc.
The Group had £5.9 million of cash funds at the year end, and currently has
the ability to draw an additional £13.0 million (available via the revolving
loan facility).
Financial derivative
The Group is in a fortunate position whereby it will continue to benefit from
existing interest rate swap arrangements, which provide effective fixed
interest rate protection, that is significantly below the current SONIA rates,
in relation to £60 million of its £68 million facility. The Group's interest
rate swaps provide a fixed interest rate of 3.40 per cent. in relation to £35
million of the new facility and a fixed interest rate of 2.01 per cent. in
relation to £25 million of the new facility. The durations of the Group's
existing swaps are beyond the term of the current facility.
The Group has seen a fair value loss (of a non-cash nature) in our long term
liability on derivative financial instruments of £1.075 million (2024: a gain
of £3.27 million). Following this gain the total financial derivative
balance is an asset on our Consolidated Statement of Financial Position of
£4.7 million (2024: £5.8 million asset).
Derivative valuations may fluctuate materially between reporting dates
depending on market expectations for future interest rates. Such movements are
non-cash in nature unless realised.
Post year end, in March 2026 the Group restructured its financial derivative
with HSBC, having a nominal value of £35,000,000 providing a fixed interest
rate of 3.40%, via the cancellation of the existing contract and entering into
a new contract, so that this interest rate swap will now end on 1 September
2031 rather than the original end date of 1 September 2038. This has resulted
in a cash settlement of £2.06 million being received by the Company.
The Board believes retaining appropriate hedging remains prudent in the
current environment.
Financial risk management
The Company and Group's operations expose it to a variety of financial risks,
the main two being the effects of changes in the credit risk of tenants and
interest rate movement exposure on borrowings. The Company and Group have in
place a risk management programme that seeks to limit the adverse effects on
the financial performance of the Company and Group by monitoring and managing
levels of debt finance and the related finance costs. The Company and Group
also use interest rate swaps to protect against adverse interest rate
movements with no hedge accounting applied. Mark-to-market valuations on our
financial instruments have been historically erratic due to current low market
interest rates and due to their long term nature. These large mark-to-market
movements are shown within the Income Statement.
On £60 million of the potential drawn loan at the year-end, the actual cash
outlay effect is nil when considering the combined effect of the loan and the
financial derivatives. This is because the instruments have been used to fix
the risk of further cash outlays due to interest rate rises or can be
considered as a method of locking in returns (the difference between rent
yield and interest paid at a fixed rate). At the year end, the Company had
repaid circa £3 million more of the loan compared to the fixed amount so this
element is floating on the swap side.
Given the size of the Company and Group, the Directors have not delegated the
responsibility of monitoring financial risk management to a sub-committee of
the Board. The policies set by the Board of Directors are implemented by the
Company and Group's finance department.
Credit risk
The Company and Group have implemented policies that require appropriate
credit checks on potential tenants before lettings are agreed. In many cases
a deposit is requested unless the tenant can provide a strong personal or
other guarantee. The amount of exposure to any individual counterparty is
subject to a limit, which is reassessed annually by the Board. Exposure is
reduced significantly due to the Group having a large spread of tenants who
operate in different industries.
Price risk
The Company and Group are exposed to price risk due to normal inflationary
increases in the purchase price of the goods and services it purchases in the
UK. The exposure of the Company and Group to inflation is considered low due
to the low cost base of the Group and natural hedge we have from owning "real"
assets. Price risk on income is protected by the rent review clauses
contained within our tenancy agreements and often secured by medium or
long-term leases.
Liquidity risk
The Company and Group actively manage liquidity by maintaining a long-term
finance facility, strong relationships with many banks and holding cash
reserves. This ensures that the Company and Group have sufficient available
funds for operations and planned expansion or the ability to arrange such.
Interest rate risk
The Company and Group have both interest bearing assets and interest bearing
liabilities. Interest bearing assets consist of cash balances which earn
interest at fixed rate when placed on deposit. The Company and Group have a
policy of only borrowing debt to finance the purchase of cash generating
assets (or assets with the potential to generate cash). We also use
financial derivatives (swaps) where appropriate to manage interest rate
risk. The Directors revisit the appropriateness of this policy annually.
Principal risks and uncertainties of the Group
The successful management of risk is something the Board takes very seriously
as it is essential for the Group to achieve long-term growth in rental income,
profitability and value. The Group invests in long term assets and seeks a
suitable balance between minimising or avoiding risk and gaining from
strategic opportunities. The Group's principal risks and uncertainties are
all very much connected as market strength will affect property values, as
well as rental terms and the Group's finance, or term loan, whose security is
derived primarily from the property assets of the business. The financial
health of the Group is checked against covenants that measure the value of the
property, as a proportion of the loan, as well as income tests.
The two measures of the Group's finances are to check if the Group can support
the interest costs (income tests) and also the ability to repay (valuation
covenants).
The Group has a successful strategy to deal with these risks, primarily its
long lasting business model and strong management. This meant the Group has
had little or no issues as it navigated the many economic shocks it has had to
deal with over the last two decades including the 2008 banking crisis, Brexit,
the COVID-19 crisis, the high interest rate/ high inflationary effect post
covid-19/ Ukraine war consequences and Trump economics. The Group currently
sits with low gearing compared to historic levels.
Market risk
If we want to buy, sell or let properties there is a market that governs the
prices or rents achieved. A property company can get caught out if it
borrows too heavily on property at the wrong time in the market, affecting its
loan covenants. If loan covenants are broken, the Company may have to sell
properties at non-optimum times (or worse) which could decrease shareholder
value. Property markets are very cyclical and we in effect have three
strategies to deal with or mitigate the risk, but also take advantage of this
opportunity:
1) Strong, experienced management means when the market is strong we look to
dispose of assets and when it is weak we try and source bargains i.e. an
emergent strategy also called an entrepreneurial approach.
2) The Group has a diversified property portfolio and maintains a spread of
sectors over retail, industrial, office and residential. The other
diversification is having a spread regionally, of the different classes of
property over the UK. Often in a cycle not all sectors or locations are
affected evenly, meaning that one or more sectors could be performing
stronger, maybe even booming, whilst others are struggling. The stronger
performing investment sectors provide the Group with opportunities that can be
used to support slower sectors through sales or income.
3) We invest in good secondary property, which tends to be lower value/cost,
meaning we can be better diversified than is possible with the equivalent
funds invested in prime property. There are not many property companies of
our size that have circa 900 individual units and circa 120 buildings/
locations. Secondary property also, very importantly, is much higher yielding
which generally means the investment generates better interest cover and its
value is less sensitive to market changes in rent or loss of tenants.
Property risk
As mentioned above, we invest in most sectors in the market to assist with
diversification. Many commentators consider the retail sector to be in
period of severe flux, considerably affected by changing consumer habits such
as internet shopping as well as a preference for experiences over products.
Of the Group's investment portfolio, retail makes up the largest sector being
circa 60 to 65% by income generation. However, the retail sector is affected
to lesser degrees in what we would describe as neighbourhood parades, as
opposed to traditional shopping high streets. The large part of our retail
portfolio is in these neighbourhood parades, meaning we are less affected by
consumer habits and even benefit from some of the changes. Neighbourhood
parades provide more leisure, services and convenience retail.
For example we have undertaken a few lettings to local or smaller store
formats, to big supermarket chains, which would not have taken place many
years ago. Block policy is another key mitigating force within our property
risks. Block policy means we tend to buy a block rather than one off
properties, giving us more scope to change or get substantial planning
permission if our type of asset is no longer lettable. The obvious example
is turning redundant regional offices into residential. In addition by
having a row of shops, we can increase or reduce the size of retail units to
meet the current requirements of retailers.
Finance risk
The final principal risk, which ties together the other principal risks and
uncertainties, is that if there are adverse market or property risks then
these will ultimately affect our financing, making our lenders either force
the Group to sell assets at non-optimal times, or take possession of the
Group's assets. The management, business model and diversification factors
described above help mitigate against property and market risks, which as a
consequence mitigate our finance risk.
The main mitigating factor is to maintain conservative levels of borrowing, or
headroom to absorb downward movements in either valuation or income cover. The
other key mitigating factor is to maintain strong, honest and open
relationships with our lenders and good relationships with their key
competitors. This means that if issues arise, there will be enough goodwill
for the Group to stay in control and for the issues to resolve themselves and
hopefully
remedy the situation. As a Group we also hold uncharged properties and cash
resources, which can be used to rectify any breaches of covenants.
Other non-financial risks
The Directors consider that the following are potentially material
non-financial risks:
Risk Impact Action taken to mitigate
Reputation Ability to raise capital/ deal flow reduced Act honourably, invest well and be prudent.
Regulatory changes Transactional and holding costs increase Seek high returns to cover additional costs.
Lobby Government -"Ramblings". Use advisers when necessary.
People related issues Loss of key employees/ low morale/ inadequate skills Maintain market level remuneration packages, flexible working and training.
Strong succession planning and recruitment. Suitable working environment.
Computer failure/ cyber security Loss of data, debtor history External IT consultants, backups, offsite copies. Latest virus software and IT
systems. Educate employees.
Asset management Wrong asset mix, asset illiquidity, hold cash Draw on wealth of experience to ensure balance between income producing and
development opportunities. Continued spread of tenancies and geographical
location. Prepare business for the economic cycles.
Acts of God (e.g. COVID 19) Weather incidents, fire, terrorism, pandemics Where possible cover with insurance. Ensure the Group carry enough reserves
and resources to cover any incidents.
Section 172(1) statement
This is a reporting requirement and relates to companies defined as large by
the Companies Act 2006, this includes public companies as otherwise the Group
would not be considered large.
Each individual Director must act in the way he considers, in good faith,
would be the most likely to promote the success of the company for benefit of
its members as a whole, and in doing so the Directors have had regard to the
matters set out in section 172(1) (a) to (f) when performing their duty under
section 172.
The matters set out are:
(a) the likely consequences of any decision in the long term;
The longer term decisions are made at Board level ensuring a wealth of
experience and a breadth of skills. The value creation in the business is
mainly generated by buying the investments at the right time in the financial
cycles, whilst reducing risk by choosing assets that have alternative or back
up values to the current use, as well as initial values. It is also key that
long term decisions are made in respect of ensuring that property assets are
well maintained, where economically viable. Other areas to ensure decisions
are in tune with long term consideration are making sure the best possible
financing of the Group to match the requirements of the long-term nature of
property ownership. The Board and management makes long term decisions such
as keeping a vigilant review of the changing nature of property usage and
tries where possible to diversify its income streams. Chorley, Peterborough
(Padholme Rd) and Trowbridge as purchases are good examples, i.e. both
industrial property investments - giving protection against changing consumer
habits within retail (which is a larger component of the current portfolio)
through diversification/ rebalancing the portfolio. In 2025 and 2026 the
Group sold retail assets in Wolverhampton, Ayr, Billericay and Widnes which
the Board believed had a weaker outlook.
(b) the interests of the company's employees;
The Company makes investment in and the development of talent of its
employees, including paying for professional development, providing in house
updates and encouraging knowledge sharing. The Group has a strong track
record of promoting from within the business and both our Property Director
and Head of Property qualified and trained for their RICS whilst employed at
the Group, who fully supported their training. In 2021 the Finance Director
was promoted to Chief Executive. The Group undertakes team building
activities to encourage cohesion and working together.
(c) the need to foster the company's business relationships with suppliers,
customers and others;
Being in the property industry the business is used to dealing with many types
of businesses as tenants from large multi-national businesses to small sole
traders - keeping good sound relationships with both is key. We also use
many small operators and suppliers and we ensure prompt payment, paying within
30 days in most instances to again foster good working relations. We
maintain weekly payment runs to support small suppliers.
(d) the impact of the company's operations on the community and the
environment;
The Group's investments by their very nature often have a significant impact
on local communities, providing services and convenience businesses, or places
for local enterprise or employment. By owning a parade of shops, we can
ensure where possible that these are viable locations by encouraging a variety
of traders. The Group maintains and upkeeps its investment properties to a
viable level which benefits the local communities they provide accommodation
for, or seeks improvements in planning permission which can enhance local
areas. We have recently brought in DocuSign for leases and other agreements
dealt with inhouse which have a beneficial environmental impact with less
paper and carbon being produced on the delivery of the documents. We also
ensure we upgrade our units to the required EPC levels which by its very
nature reduces the longer term environmental impact of the use of these units.
Our small fleet of cars are all electric vehicles.
(e) the desirability of the company maintaining a reputation for high
standards of business conduct;
The Group maintains an appropriate level of Corporate Governance that is
documented within its own section within these Financial Statements and on the
Company's website. With a relatively small management team it is easier to
monitor and assess the culture and encourage the appropriate standards. The
Board strives to delegate and empower its management teams to ensure the high
standards are maintained at all levels within the business. In recent years
we strengthened the Board the appointments of two non-executive directors with
current relevant external knowledge of banking and surveying/ valuation.
(f) the need to act fairly as between members of the company.
The Group has excellent communication with its members, actively encouraging
participation and discussion at its AGMs and also circulating letters of our
announcements to ensure older members or those not accessing the financial
news can keep up to date with relevant information. Our Chairman is unpaid,
his benefit or income from the Company is received via dividends pro-rata the
same as all members including minority shareholders.
The Group Strategic Report set out on the above pages, also includes the
Chairman's Statement shown earlier in these accounts and was approved and
authorised for issue by the Board and signed on its behalf by:
S. J. Peters
Chief Executive Officer
Unicorn House
Station Close
Potters Bar
Hertfordshire EN6
1TL
13 May 2026
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2025
Notes 31 December 2025 31 December 2024
£'000 £'000
Revenue 14,850 15,047
Cost of sales (6,456) (6,704)
Gross profit 8,394 8,343
Other income 255 794
Administrative expenses (1,846) (1,659)
Bad debt expense (261) (526)
Operating profit 6,542 6,952
Profit on disposal of investment properties 507 1,296
Movement in fair value of investment properties 3,209 1,300
10,258 9,548
Finance costs - interest (4,674) (5,722)
Finance income - swap interest 893 1,422
Investment income 158 158
Fair value (loss)/ gain on derivative financial liabilities (1,075) 3,265
Profit before income tax 5,560 8,671
Income tax expense (1,307) (1,984)
Profit for the year 4,253 6,687
Continuing operations attributable to:
Equity holders of the parent 4,253 6,687
Profit for the year 4,253 6,687
Earnings per share
Basic and diluted - continuing operations 3 24.5p 38.4p
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2025
Notes 31 December 2025 31 December 2024
£'000 £'000
Profit for the year 4,253 6,687
Items that will not be reclassified subsequently to profit or loss
Movement in fair value of investments taken to equity (3) 18
Deferred tax relating to movement in fair value of
investments taken to equity 1 (4)
Realised fair value on disposal of investments previously taken to equity
17 -
Realised deferred tax relating to disposal of investments previously taken to
equity
(4) -
Other comprehensive income for the year, net of tax 11 14
Total comprehensive income for the year 4,264 6,701
Attributable to:
Equity holders of the parent 4,264 6,701
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Company number 00293147
As at 31 December 2025
Notes 31 December 2025 31 December 2024
ASSETS £'000 £'000
Non-current assets
Plant and equipment 20 47
Investment properties 4 181,449 182,204
Derivative financial asset 6 4,155 4,945
Right of use asset 146 179
Investments 36 201
185,806 187,576
Current assets
Stock properties 101 101
Derivative financial asset 540 825
Trade and other receivables 3,999 4,630
Cash and cash equivalents (restricted) 188 2,604
Cash and cash equivalents 5,738 5,038
10,566 13,198
Total assets 196,372 200,774
EQUITY AND LIABILITIES
Capital and reserves
Share capital 4,437 4,437
Share premium account 5,491 5,491
Treasury shares (1,132) (1,088)
Capital redemption reserve 572 572
Retained earnings 107,193 106,748
Total equity 116,561 116,160
Non-current liabilities
Borrowings 5 56,126 61,401
Deferred tax liabilities 5,598 5,232
Leases 8,117 8,190
69,841 74,823
Current liabilities
Trade and other payables 8,661 9,341
Borrowings 5 375 -
Current tax payable 934 450
9,970 9,791
Total liabilities 79,811 84,614
Total equity and liabilities 196,372 200,774
The accounts were approved by the Board of Directors and authorised for issue
on 13 May 2026. They were signed on its behalf by:
A.S. Perloff, Chairman
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2025
Share Share Treasury Capital Retained Total
Capital premium shares redemption earnings
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2024 4,437 5,491 572
(772) 102,144 111,872
Total comprehensive income - - - 6,701 6,701
-
Dividends - - - - (2,093) (2,093)
Treasury shares purchased - - - - (316)
(316)
Consolidation adjustments - - - (4) (4)
-
Balance at 1 January 2025 4,437 5,491 572
(1,088) 106,748 116,160
Total comprehensive income - - - 4,264 4,264
-
Dividends - - - - (3,819) (3,819)
Treasury shares purchased - - - - (44)
(44)
Balance at 31 December 2025 4,437 5,491 572
(1,132) 107,193 116,561
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2025
31 December 2025 31 December 2024
£'000 £'000
Cash flows from operating activities
Operating profit 6,542 6,952
Add: Depreciation 27 27
Add: Finance lease depreciation 275 514
Add: Loss on current assets investments - 9
Rent paid - treated as interest (680) (657)
Profit before working capital change 6,164 6,845
Decease in stock properties - 249
Decrease/ (increase) in receivables 289 (397)
(Decrease)/ increase in payables (413) 838
Cash generated from operations 6,040 7,535
Interest paid (2,901) (3,366)
Income tax paid (460) (572)
Net cash generated from operating activities 2,679 3,597
Cash flows from investing activities
Purchase of investment properties (261) (308)
Purchase of plant and equipment - (32)
Proceeds from sale of investment property 4,769 4,483
Proceeds from sale of investments** 179 -
Dividend income received 7 5
Interest income received 146 153
Net cash generated from investing activities 4,840 4,301
Cash flows from financing activities
Draw down of loan - 1,375
Repayments of loans (5,100) (3,455)
Loan amortisation repayments - (125)
Purchase of own shares (44) (316)
Loan arrangement fees and associated set up costs (272) (794)
Dividends paid (3,819) (2,093)
Net cash (used)/generated from financing activities (9,235) (5,408)
Net (decrease)/ increase in cash and cash equivalents (1,716) 2,490
Cash and cash equivalents at the beginning of year* 7,642 5,152
Cash and cash equivalents at the end of year* 5,926 7,642
* Of this balance £188,000 (2024: £2,604,000) is restricted by the Group's
lenders i.e. it can only be used for purchase of investment property.
** Shares in listed and/or unlisted companies.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2025
1. General information
While the financial information included in this preliminary announcement has
been prepared in accordance with International Financial Reporting Standards
(IFRSs), this announcement does not itself contain sufficient information to
comply with IFRSs. The Group will publish full financial statements that
comply with IFRSs which will shortly be available on its website and are to be
posted to shareholders shortly.
The financial information set out in the announcement does not constitute the
Company's statutory accounts for the years ended 31 December 2025 or 2024.
The financial information for the year ended 31 December 2025 is derived from
the audited statutory accounts for the year ended 31 December 2025 on which
the auditors have given an unqualified report, that did not contain a
statement under section 498(2) or 498(3) of the Companies Act 2006. The
statutory accounts will be delivered to the Registrar of Companies following
the Company's annual general meeting.
The accounting policies adopted in the preparation of this preliminary
announcement are consistent with those set out in the latest Group Annual
financial statements.
Going Concern
The Directors have prepared two detailed financial forecasts both to December
2028, one which is assuming a significant downward trend in its income base
including loss of a major tenant, inflation leading to increasing costs,
higher interest rates, worsening bad debts and no major disposals. This
forecasted worst-case scenario demonstrated the Group is a going concern even
if the business was subjected to a long downward spiral in its business
activities. In summary, the Group's forecasts show that it has enough
financial resources to survive to beyond December 2028.
The Group is strongly capitalised, has high liquidity together with a number
of long-term contracts with its customers many of which have strong
covenants. The Group has a diverse spread of tenants across most industries
and owns investment properties based in many locations across the country.
The Group's main loans were renewed in March 2024 for a new four year term
with the ability to extend for an additional year (subject to bank
approval). The Group always maintains excellent relations with its lenders.
The loan is made jointly by two lenders and has a low level of gearing which
both give the Group's financial position more resilience.
The lenders' covenants as at 31 December 2025 have been reviewed and
significant movements would be required before a covenant was breached such as
a 36% decrease in the secured portfolio valuation (a circa £57 million
reduction) or 50% decrease in its actual income cover being circa £6.5
million reduction in income. The Group also currently has cash reserves (and
available funds under its loan facility) and other uncharged assets (including
circa £12 million of investment property).
2. Dividends
Amounts recognised as distributions to equity holders in the period:
2025 2024
£'000 £'000
Interim dividend for the year ended 31 December 2025 of 6p per share (2024: 6p
per share)
1,042 1,046
Final dividend for the year ended 31 December 2024 of 6p per share (2023: 6p
per share)
1,042 1,047
Special dividend for the year ended 31 December 2025 of 10p per share
1,735 -
3,819 2,093
The Directors recommend a payment of a final dividend for the year ended 31
December 2025 of 6p per share, following an interim dividend of 6p per share
and a special dividend of 10p per share, both paid on 29 October 2025. The
final dividend of 6p per share will be payable on 15 July 2026 to shareholders
on the register at the close of business on 26 June 2026 (Ex dividend on 25
June 2026).
The total dividend for the year ended 31 December 2025 is therefore
anticipated to be 22p per share, subject to shareholder approval, being the 6p
interim per share and 10p special per share paid and the recommended final
dividend of 6p per share.
3. Earnings per ordinary share (basic and diluted)
The calculation of profit per ordinary share is based on the profit, being a
profit of £4,253,000 (2024 - £6,687,000) and on 17,361,429 ordinary shares
being the weighted average number of ordinary shares in issue during the year
excluding treasury shares (2024 - 17,420,429). There are no potential
ordinary shares in existence. The Company holds 393,000 (2024 - 378,000)
ordinary shares in treasury.
4. Investment properties
Investment properties
£'000
Fair value
At 1 January 2024 185,169
Additions 308
Disposals (4,195)
Fair value adjustment on investment properties held on leases (378)
Revaluation increase 1,300
At 1 January 2025 182,204
Additions 261
Disposals (3,919)
Fair value adjustment on investment properties held on leases (306)
Revaluation increase 3,209
At 31 December 2025 181,449
Carrying amount
At 31 December 2025 181,449
At 31 December 2024 182,204
5. Bank loans
2025 2024
£'000 £'000
Bank loans due within one year 375 -
(within current liabilities)
Bank loans due after more than one year 56,126 61,401
(within non-current liabilities)
Total bank loans 56,501 64,101
2025 2025 2025 2024
Analysis of debt maturity £'000 £'000 £'000 £'000
Interest* Capital Total Total
Bank loans repayable
On demand or within one year 3,289 375 3,664 4,241
In the second year 3,263 500 3,763 4,603
In the third year to the fifth year 810 55,626 56,436 70,416
7,362 56,501 63,863 79,260
*based on the 3 month SONIA floating rate charged in Dec 25 - 3.54%.
On 28 March 2024, the Group refinanced by completing a new facility of £68
million, split between a £55 million term loan and a £13 million revolving
facility. The new facility has a four-year term (with a further one-year
option to extend subject to credit approval). The interest rate payable is 2.3
per cent. over three month SONIA with a ratchet that can take it to 2.5 per
cent over three month SONIA in certain circumstances.
HSBC and Santander remain as the joint providers of the new facility.
The bank loans are secured by first fixed charges on the properties held
within the Group and floating asset over all the assets of the Company. The
lenders have also taken fixed security over the shares held in the Group
undertakings.
The estimate of interest payable is based on current interest rates and as
such, is subject to change.
The Directors estimate the fair value of the Group's borrowings, by
discounting their future cash flows at the market rate (in relation to the
prevailing market rate for a debt instrument with similar terms). The fair
value of bank loans is not considered to be materially different to the book
value. Bank loans are financial liabilities.
The fair value of the loan held at amortised cost at 31 December 2025 was
£56,501,000 (2024 - £64,101,000). The Group has the following bank covenants
that are reported for the quarters to 1 March, 1 June, 1 September and 1
December:
6. Derivative financial instruments
The main risks arising from the Group's financial instruments are those
related to interest rate movements. Whilst there are no formal procedures for
managing exposure to interest rate fluctuations, the Board continually reviews
the situation and makes decisions accordingly. Hence, the Company will, as far
as possible, enter into fixed interest rate swap arrangements. The purpose of
such transactions is to manage the cash flow risks associated with a rise in
interest rates but does expose it to fair value risk.
2025 2024
Bank loans £'000 £'000
Interest is charged as to: Rate Rate
Fixed/ Hedged
HSBC Bank plc* 35,000 5.70% 35,000 5.70%
HSBC Bank plc* 25,000 4.31% 25,000 4.31%
Unamortised loan arrangement fees (444) (644)
Floating element
HSBC Bank plc (3,055) 2,045
56,501 61,401
Bank loans totalling £60,000,000 (2024 - £60,000,000) are fixed using
interest rate swaps removing the Group's exposure to fair value interest rate
risk. Other borrowings are arranged at floating rates, thus exposing the Group
to cash flow interest rate risk.
Financial instruments for Group and Company
Hedged amount Average rate Duration of contract remaining 2025 2024
Fair value Fair value
£'000 'years' £'000 £'000
Derivative Financial Asset/ (Liability)
Interest rate swap 35,000 3.40% 12.69 2,499 2,867
Interest rate swap 25,000 2.01% 6.92 2,196 2,903
4,695 5,770
Net fair value (loss)/gain on derivative financial assets (1,075) 3,265
*The rates shown includes a 2.3% margin (2024 - 2.3%). Neither contracts
include break options in the term but are repayable on a cessation of lending.
7. Events after the reporting date
In February 2026 the Group purchased 50,000 of its own ordinary shares,
through the market, to be held in treasury. 42,500 of these shares were
purchased from related parties.
In March 2026 the Group restructured its financial derivative with HSBC,
having a nominal value of £35,000,000 providing a fixed interest rate of
3.40%, via the cancellation of the existing contract and entering into a new
contract, so that this interest rate swap will now end on 1 September 2031
rather than the original end date of 1 September 2038. This has resulted in a
cash settlement of £2.06 million being received by the Group.
In March 2026 the Group paid back £1,945,000 of the loan facility (using
disposal proceeds), these funds can be redrawn.
In April 2026 the Group completed on the disposal of two shops in Widnes to
two different parties - sold at Public Auction. This generated cash on the
disposals of £284,000 before costs resulting in a circa £80,000 profit on
book value. One of the shops was purchased by a related party.
In April 2026 the Group announced that Peter Kellner and Bryan Galan,
Non-Executive Directors, would retire as directors on 17 June 2026.
8. Copies of the full set of Report and Accounts
Copies of the Company's report and accounts for the year ended 31 December
2025, which will be posted to shareholders shortly, will be available from the
Company's registered office at Unicorn House, Station Close, Potters Bar,
Hertfordshire, EN6 1TL and will be available for download on the Group's
website www.pantherplc.com (http://www.pantherplc.com) .
The 92(nd) Annual General Meeting of Panther Securities P.L.C. is planned to
be held on 17 June 2026 in the Oslo Court, Charlbert Street, St John's Wood,
NW8 7EN at 11.15 am.
Panther Securities PLC +44 (0) 1707 667 300
Andrew Perloff, Chairman
Simon Peters, CEO & Finance Director
Allenby Capital Limited
+44 (0) 20 3328 5656
(Nominated Adviser and Joint Broker)
Alex Brearley
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. END FR ZZGMKRFMGVZM
Copyright 2019 Regulatory News Service, all rights reservedRecent news on Panther Securities
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