REG - Parkmead Group (The) - Preliminary Results Statement 2025
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RNS Number : 8175I Parkmead Group (The) PLC 25 November 2025
25 November 2025
The Parkmead Group plc
("Parkmead", "the Company" or "the Group")
Preliminary Results for the year ended 30 June 2025
Parkmead, the independent energy group focused on growth through gas and
renewable energy projects, is pleased to report its preliminary results for
the year ended 30 June 2025.
HIGHLIGHTS
Transformative Year - Strong Growth in Finances
· Profit after tax of £7.35 million, up 49% (2024: £4.94 million)
· Earnings per share rose 49% to 6.72 pence (2024: 4.52 pence)
· Net Assets increased to £27.0 million, up 38% (2024: £19.6
million)
· Net Assets are equivalent to 25 pence per share
· Cash reserves increased by 39% to £13.2 million (2024: £9.5
million)
Strategic Divestment of Offshore UK Oil Licences
· Successfully completed the sale of our North Sea licences in April.
· Near term value created of c.£30 million net to Parkmead
· This comprises £14 million of firm cash, plus c.£16 million of
costs covered for Parkmead's share of the commitment well at Skerryvore. £7
million of the firm cash was received on completion and a further £7 million
is payable over the next 15 months
· Further contingent cash payments of up to £120 million could be
received by Parkmead, if field development plans are approved in future on the
licences containing Skerryvore (£30 million) and Fynn Beauly (£90 million)
Renewable Energy Projects Driving Forward
· Parkmead continues to build its position in renewable
energies. The Glenskinnan Renewable Energy Park is a major integrated
renewables scheme being developed in partnership with Galileo Empower, a
leading European renewable energy developer
· Glenskinnan is being designed to deliver up to 98 MW of wind
generated electrical capacity across 14 turbines, alongside 20 MW of solar PV
and 30 MW of battery storage. Parkmead's owned land at Pitreadie is expected
to accommodate over 50% of the combined installed capacity proposed in the
planning application, making it a central component of the development
· Kempstone Hill wind farm delivered consistent performance and
revenue during the period
· Production of electricity increased by 6% to 2,717 MWh (2024:
2,570 MWh)
· Parkmead has achieved and maintained an exceptionally high level
of operational efficiency at Kempstone Hill, in the range 96-99%
Netherlands Gas Asset Base Expanding
· Parkmead has retained 100% of its cash producing assets,
including all its interests in the Netherlands gas fields
· These assets continue to provide valuable cash flow and growth
potential, which both support the Group's future strategy.
· Further drilling is being planned for 2026 at Drenthe V
· Detailed design work is also underway for an additional well on
the Drenthe VI licence
Parkmead is Well Positioned for Future Growth
· Non-hydrocarbon share of total revenues increased for the third
consecutive year to 15% of revenue (2024: 12%)
· Cost of sales reduced to £2.2 million (2024: £ 2.3 million)
through strict cost discipline
· Given that Parkmead is no longer an offshore licence operator
in the North Sea, with all the regulatory aspects and operational demands
that entails, we have reduced staff levels and reduced our office space by
over 40%
· Parkmead's balance sheet remains strong with total assets of
£32.5 million
Parkmead's Executive Chairman, Tom Cross, commented:
"Parkmead has delivered a year of exceptional results, through strong
operational performance and by securing a strategic divestment of our offshore
North Sea oil licences. Together these have strengthened our finances
significantly and achieved earnings of over 6.7 pence per share.
Our Net Assets have built to £27 million, which is equivalent to 25 pence per
share.
Parkmead continues to benefit from a balanced approach to building its
portfolio and is increasing its exposure to the UK renewables market. The
Glenskinnan Renewable Energy Park is aligned to the new UK Government targets
for onshore wind.
The Group's robust financial position provides Parkmead with a distinct
advantage as we seek to further enhance shareholder value through growth
opportunities across the Group."
For enquiries please contact:
The Parkmead Group plc +44 (0) 1224 622200
Tom Cross (Executive Chairman)
Andrew Smith (Business Development Director)
Cavendish Capital Markets Limited +44 (0) 20 7220 0500
Marc Milmo / Seamus Fricker - Corporate Finance
Andrew Burdis - ECM
CHAIRMAN'S STATEMENT
I am pleased to report on a transformational year for Parkmead in 2025.
Building upon our experience and detailed understanding of the challenges and
uncertainty facing the future of the UK offshore oil & gas industry, the
Board's strategy of diversifying our asset base has proven its worth. Our UK
onshore renewables portfolio has provided a platform for the Group to drive
forward, despite the political headwinds faced by the upstream E&P sector.
Renewable energy is growing to become a more substantial part of our overall
revenue, totalling 15% in FY25 compared with 12% in the prior year. This
growth in green energy complements our low carbon, natural gas production in
the Netherlands.
Through focused management, the Group has delivered a 39% increase in earnings
per share of 6.72p and profit after tax of £7.35 million. The key component
of this was the successful sale of Parkmead's wholly owned subsidiary Parkmead
(E&P) Limited. Through this innovative deal we will receive £14 million
of firm cash consideration and also retain significant upside relating to each
of the two offshore exploration licences we sold. Up to a further £120
million may become payable to Parkmead, should field development plans be
approved in the future.
Our strong financial position and broad asset base positions Parkmead
extremely well, with no material capital commitments. Our natural gas fields
in the Netherlands provide ongoing production and opportunities for organic
growth via further drilling for additional reserves.
Parkmead is now very well placed to exploit new growth opportunities during
the next phase of the Company's development, as we look to build value from
renewable energies and natural gas.
Strong Financial Performance
Parkmead has delivered a record profit after tax of £7.35m (FY24: £4.94m)
due to the large gain realised from the disposal of Parkmead (E&P)
Limited, coupled with strong operating performance. This is equivalent to
earnings per share of 6.72p (FY24: 4.52p).
Group turnover for the year was £4.1m (FY24: £5.7m). The year-on-year
decrease was due to a reduction in gas volumes as a result of some maintenance
shut downs and natural decline. The average realised gas price in the period
increased to €40.1/MWh (FY24: €34.2/MWh). Electricity generation at
Kempstone Hill increased to 2,717MWh (FY24: 2,570 MWh).
Operating costs have remained very tightly controlled at £2.2m (FY24: £2.3m)
contributing to a strong operating profit for the period of £7.5m (FY24:
£1.3m).
Parkmead continued to build a strong balance sheet with net assets increasing
by 38% to £27.0m equivalent to 25 pence per share (FY24: £19.6m). Cash and
cash equivalents in the year rose 39% to £13.2m (FY24: £9.5m).
Our modest financial debt has continued to reduce with £0.7m outstanding at
30th June 2025 (FY24: £0.8m). This small debt was inherited as a result of
the acquisition of Kempstone Hill Wind Energy Limited.
Strategic Divestment of Parkmead (E&P) Limited
Parkmead carefully considered the outlook for its UK North Sea oil licences
and the major capital requirements that would be needed were they to be
progressed through drilling, appraisal and development. The offshore sector
has serious difficulties in the form of high and rising costs and the current
negative political environment towards UK oil & gas, with the focus of the
UK Government on its net-zero strategy. In this context, Parkmead believes
that the opportunity to progress these offshore UK licences is best served
within the portfolio of a larger, North Sea focused company.
Parkmead remains exposed to the large upside on both the Skerryvore and Fynn
licences, but without any capital requirements, through contingent payments of
up to £30m and £90m respectively, should Skerryvore or Fynn reach field
development plan (FDP) approval.
Post completion, the Skerryvore joint venture received an 18 month extension
on the licence to 31 March 2027 to allow time for the drilling of the
commitment well.
Netherlands Gas Assets Expanding
Parkmead's portfolio of onshore natural gas fields in the Netherlands has
continued to perform in line with expectation. Gross production across the
portfolio was 2.1kboepd (thousands of barrels of oil equivalent per day).
The outlook for the Drenthe VI concession is particularly exciting, with
numerous attractive prospects being analysed. Parkmead has also agreed the
unitisation of the neighbouring VDW-A prospect, which sits partially on its
Drenthe VI concession, ahead of a potential Final Investment Decision being
taken by the partnership.
At the Company's important Papekop field development, work is ongoing with
detailed surface, well and pipeline work scheduled for 2026.
At Drenthe V plans are continuing to prepare well design and long lead
requirements for a GSB-02 well in 2026. This includes targeting new gas
reserves which are now understood to be separated from, and therefore
additional to, the rest of the field. Recent technical work has calculated
that significant in-place gas volumes of 157Bcf remain at Geesbrug and
Geesbrug-02.
UK Renewable Energy Portfolio is Growing
Kempstone Hill Wind Farm
Our operated wind farm at Kempstone Hill has continued to perform well during
the year, generating 2,717MWh (FY24: 2,570MWh) of electricity. Excellent
uptime has been achieved, allowing for more power to be generated in the
period, with average uptime of 98% during the year (FY24: 90%). Shut downs for
routine maintenance in the prior period reduced uptime.
Following the year end, the Group successfully negotiated an updated Purchase
Price Agreement covering Kempstone for the twelve month period ending 30
September 2026 at an average export price of £87.6/MWh.
Pitreadie Wind and Solar Projects
Parkmead is in advanced commercial discussions with a major renewable energy
developer, Galileo Empower, regarding a potential joint venture whereby
Parkmead would participate in a significant renewable energy development of up
to 98 MW of generation via 14 wind turbines, 20MW of solar photovoltaics (PV)
and 30MW of battery energy storage system (BESS). Together these three
projects at Pitreadie form the Glenskinnan Renewable Energy Park.
Initial public consultation was completed in 2025 and over the coming months
further consultations are scheduled before a Section 36 planning application
is lodged.
Parkmead's owned land at Pitreadie is expected to accommodate over 50% of the
combined installed capacity proposed in the planning application, making it a
central component of the development.
Brachmont Solar Opportunity
Parkmead's renewable energy team is examining a number of further solar power
opportunities. Studies include the technical merits and commercial potential
to develop a solar energy farm in the Brachmont area of Aberdeenshire, where
conditions appear favourable.
Outlook
We are in a position of relative financial strength due to our Netherlands gas
and UK renewable income streams, our healthy cash balances and carefully
controlled costs. In addition, the Group has exposure to significant upside
potential from future contingent payments of up to £120m should FDP approvals
occur on the Skerryvore and Fynn Beauly UK offshore licences.
As set out above, we believe that there is an opportunity to deliver
significant shareholder value from the groundwork we have done to date.
Parkmead continues to progress its attractive hopper of organic growth
initiatives, such as the Glenskinnan Renewable Energy Park development
opportunity, whilst expanding our portfolio of natural gas targets in the
Netherlands. We are also focused on complementing our organic growth by
exploring opportunities to build upon the Group's asset base through carefully
selected acquisitions.
Oil and gas will continue to play an important role in the global energy mix
and we are continuing to assess international E&P investment in lower cost
environments than the UK North Sea.
Beyond these opportunities, we are also targeting the acquisition of further
cashflow generating renewable energy assets onshore UK to deliver additional
value for our shareholders.
Tom Cross
Executive Chairman
24 November 2025
Group statement of profit or loss and other comprehensive income
for the year ended 30 June 2025
30/06/2025 30/06/2024
Continuous operations Notes £'000 £'000
Revenue 4,053 5,720
Cost of sales (2,187) (2,302)
Gross profit 1,866 3,418
Exploration and evaluation expenses (1,477) (300)
Impairment of property, plant and equipment (1,185) -
Gain / (loss) on sale of assets 11,818 (2)
Administrative (expenses)/credit (3,482) (1,780)
Operating profit / (loss) 7,540 1,336
Finance income 187 148
Finance costs (254) (412)
Profit / (loss) before taxation 7,473 1,072
Taxation (127) 2,357
Windfall taxation - 1,513
Profit / (loss) for the period attributable to the equity holders of the 7,346 4,942
Parent
Profit / (loss) per share (pence)
Basic 6.72 4.52
Diluted 6.72 4.07
Group statement of financial position
as at 30 June 2025
30/06/2025 30/06/2024
£'000 £'000
Non-current assets
Property, plant and equipment: development & production 2,188 4,049
Property, plant and equipment: other 5,577 5,603
Goodwill 1,084 1,084
Exploration and evaluation assets 40 2,481
Trade and other receivables 3,622 -
Total non-current assets 12,511 13,217
Current assets
Trade and other receivables 3,567 1,632
Interest bearing loans 2,703 2,936
Cash and cash equivalents 13,245 9,486
Term deposits 438 -
Total current assets 19,953 14,054
Total assets 32,464 27,271
Current liabilities
Trade and other payables (2,854) (1,877)
Windfall taxation - (861)
Current tax liabilities (91) (2,192)
Total current liabilities (2,945) (4,930)
Non-current liabilities
Other liabilities (1,220) (760)
Loan - (668)
Decommissioning provisions (1,309) (1,269)
Total non-current liabilities (2,529) (2,697)
Total liabilities (5,474) (7,627)
Net assets 26,990 19,644
Equity attributable to equity holders
Called up share capital 19,688 19,688
Share premium 83,625 83,625
Merger reserve 3,376 3,376
Retained deficit (79,699) (87,045)
Total equity 26,990 19,644
Group statement of changes in equity
for the year ended 30 June 2025
Share capital Share premium Merger reserve Retained deficit Total
£'000 £'000 £'000 £'000 £'000
At 30 June 2023 19,688 83,625 3,376 (92,029) 14,660
Profit for the period - - - 4,942 4,942
Total comprehensive profit for the year - - - 4,942 4,942
Share-based payments - - - 42 42
At 30 June 2024 19,688 83,625 3,376 (87,045) 19,644
Profit for the period - - - 7,346 7346
Total comprehensive profit for the year - - - 7,346 7346
At 30 June 2025 19,688 83,625 3,376 (79,699) 26,990
Group statement of cashflows
for the year ended 30 June 2025
2025 2024
Notes £'000 £'000
Cashflows from operating activities
Cashflows from operations (306) 1,516
Taxation received / (paid) (2,231) 753
Net cash generated from operating activities (2,537) 2,269
Cash flow from investing activities
Interest received 144 109
Acquisition of exploration and evaluation assets (208) (414)
Acquisition of property, plant and equipment: development and production (148) (187)
Disposal of assets 7,322 -
Acquisition of property, plant and equipment: other - (549)
Decommissioning expenditure (32) (2,809)
Interest bearing loans 230 -
Change in term deposits (438) -
Net cash used in investing activities 6,870 (3,850)
Cash flow from financing activities
Lease payments (369) (239)
Interest paid (88) (180)
Repayment of loans and borrowings (99) (99)
Net cash used in financing activities (556) (518)
Net decrease in cash and cash equivalents 3,777 (2,099)
Cash and cash equivalents at beginning of period 9,486 11,576
Effect of foreign exchange rate differences (18) 9
Cash and cash equivalents at end of period 13,245 9,486
Notes to the financial information for the year ended 30 June 2025
1. Basis of preparation of the financial information
The financial information set out in this announcement does not comprise the
Group and Company's statutory accounts for the years ended 30 June 2025 or 30
June 2024.
The financial information has been extracted from the audited statutory
accounts for the years ended 30 June 2025 and 30 June 2024. The auditors
reported on those accounts; their reports were unqualified and did not contain
a statement under either Section 498 (2) or Section 498 (3) of the Companies
Act 2006 and did not include references to any matters to which the auditor
drew attention by way of emphasis.
The statutory accounts for the year ended 30 June 2024 have been delivered to
the Registrar of Companies. The
statutory accounts for the year ended 30 June 2025 will be delivered to the
Registrar of Companies following the
Company's Annual General Meeting.
The accounting policies are consistent with those applied in the preparation
of the interim results for the period ended 31 December 2024 and the statutory
accounts for the year ended 30 June 2024 and have been prepared in accordance
with UK-adopted International Accounting Standards ("IFRS").
2. Administrative expenses
Administrative expenses include a charge in respect of a non-cash revaluation
of share appreciation rights (SARs) and share based payments totalling
£32,000 (2024: credit £661,000). The SARs may be settled via shares or cash
and are therefore revalued with the movement in share price. The valuation was
impacted by the increase in share price between 30 June 2024 and 30 June 2025.
3. Profit / (loss) per share
Profit/(loss) per share attributable to equity holders of the Company arise
from continuing and discontinued operations as follows:
2025 2024
Profit per 1.5p ordinary share from continuing operations (pence)
Basic 6.72p 4.52p
Diluted 6.72p 4.07p
The calculations were based on the following information:
2025 2024
£'000 £'000
Profit attributable to ordinary shareholders
Continuing operations 7,346 4,942
Total 7,346 4,942
Weighted average number of shares in issue
Basic weighted average number of shares 109,266,931 109,188,561
Dilutive potential ordinary shares
Share options - -
Profit/(loss) per share is calculated by dividing the profit/(loss) for the
year by the weighted average number of ordinary shares outstanding during the
year.
Diluted profit/(loss) per share
Profit/(loss) per share requires presentation of diluted profit/(loss) per
share when a company could be called upon to issue shares that would decrease
net profit or net loss per share. When the group makes a loss the outstanding
share options are therefore anti-dilutive and so are not included in dilutive
potential ordinary shares.
4. Notes to the statement of cashflows
Reconciliation of operating profit to net cash flow from continuing operations
2025 2024
£'000 £000
Operating profit 7,540 1,346
Depreciation 1,701 1,027
Amortisation and exploration write-off 1,417 -
Disposal of assets (7,322)
Profit/(Loss) on sale of property, plant and equipment - 2
Provision for share based payments - 42
Currency translation adjustments 18 (9)
Impairment of property, plant and equipment: development and production 1,185 -
Decreases / (increase) in receivables (6,550) (691)
Decrease in stock - 16
Increase/(decrease) in payables 1,705 (207)
Net cash flow from operations (306) 1,516
5. Approval of this preliminary announcement
This announcement was approved by the Board of Directors on 24 November 2025.
6. Publication of annual report and accounts
Copies of the Annual Report and Accounts will be made available shortly on the
Company's website www.parkmeadgroup.com, along with a copy of this
announcement.
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