REG - Town Centre Secs. - Final Results
17/10/2025 07:00
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RNS Number : 7527D Town Centre Securities PLC 17 October 2025
17 October 2025
TOWN CENTRE SECURITIES PLC
('TCS' or the 'Company')
Final results for the year ended 30 June 2025
A year of continued resilience
Town Centre Securities PLC, the Leeds, Manchester, Scotland, and London
property investment, development, hotel and car parking company, today
announces its audited final results for the year ended 30 June 2025.
Commenting on the results, Chairman and Chief Executive Edward Ziff, said:
"This was a year of continued resilience for Town Centre Securities, despite
international geopolitical and domestic issues causing uncertainty in the UK
economy. We have focused on our core operations, maintaining a cautious
approach rooted in financial prudence, and positioning TCS for long-term value
creation."
"Our property rental business, car park and hotel operations continue to
deliver resilient underlying revenues and earnings in a challenging
macro-economic environment. These conditions have led to outward movements in
the underlying yields and a further small valuation reduction of our property
portfolio. In the last year we have seen inflation reducing but still above
the Bank of England's target of 2 percent, and alongside this the base rate
has reduced; however, with our continued low levels of variable interest rate
bank debt, I am confident that we are in a strong position in these uncertain
times."
"Our attention is focused on both our core operations and on investing in our
development programme over the coming years. However, we remain mindful that
taking advantage of potentially accretive opportunities needs to be balanced
against retaining robust finances."
"Overall, the business has been reset, with a more diverse portfolio of assets
and historically low levels of variable rate borrowing."
Financial performance
· Net assets - resilient performance:
o Like for like portfolio valuation down 2.4% from June 2024:
o Statutory net assets of £112.3m or 266p per share (FY24: £117.4m, 279p).
EPRA net tangible assets ('NTA') * measure at £109.9m or 261p per share (FY24
equivalent: £114.5m, 272p)
· Statutory results - reduced loss before tax :
o Statutory loss before tax of £3.4m (FY24: loss of £7.8m) and statutory
loss per share of 8.2p (FY24: earnings of 17.5p), reflects impact of portfolio
valuation reduction
· EPRA results:
o EPRA earnings before tax(*) of £3.0m (FY24: £3.9m)
o EPRA earnings per share before tax(*) of 7.0p (FY24: 8.6p)
o EPRA earnings(*) after tax of £1.8m (FY24: £6.3m)
o EPRA earnings per share(*) of 4.2p (FY24: 14.0p)
· Loan-to-Value** increased to 53.1% (50.8%) following valuation
reduction and the reassessment of lease liabilities arising from index-linked
rent reviews:
o Total net borrowings of £139.9m (FY24: £137.2m) including £82.4m
debenture
· Weighted average cost of borrowings at period end of 5.2%, 87.5% at
fixed rates
· Shareholder returns:
o Proposed final dividend of 2.5p, making the total dividend for the year
5.0p (FY24: 8.5p, which reflected TCS leaving the REIT regime in the prior
year).
* Alternative performance measures are detailed, defined and reconciled within
Note 6 and the financial review section of this announcement
** LTV Calculation includes finance lease assets and liabilities
Protecting shareholder value whilst safeguarding the business for the future
Progress delivered under the four key strategic initiatives is as follows:
Actively managing our assets
Our long-standing strategy of active management and redevelopment, to drive
income and capital growth, has continued:
· We have a well diversified portfolio comprising: 30% invested in
retail and leisure; 29% offices; 14% car parks; 14% residential; 9%
developments; and 4% hotels
· The portfolio is also very well focused, with 89% located in Leeds
and Manchester
· The void rate across our portfolio decreased to 7.4% at 30 June 2025
(8.1% at 30 June 2024)
· Strong rent collection for the period of 99.2% (FY24: 99.2%)
· Roll out of our own car park management system across our car park
portfolio completed
Maximising available capital
A conservative capital structure, with a mix of short-term and long-term
secure financing, has always underpinned our approach:
· The final element of deferred consideration arising from the sale of
our investment in YourParkingSpace Limited was received in July 2024 (£3.1m)
· Comfortable loan to value headroom over our bank facilities of
£24.6m based on 30 June 2025 borrowings and valuations
· Loan to value increased to 53.1% following valuation reductions in
the period and an increase in lease liabilities (FY24: 50.8%)
Investing in our development pipeline
TCS's development pipeline, with an estimated GDV of over £400m, is a
valuable and strategic point of difference, which we continue to progress and
enhance. Notably, in the past six months at two of our largest sites with
greatest potential:
· Merrion Centre: In June 2025, we received planning approval for
student accommodation as part of the Merrion Centre's evolution. This approval
incorporates a 1,039 new bed purpose built student accommodation scheme based
on the redevelopment of Wade House and the adjacent 100MC site
· Whitehall Riverside: Following the securing of planning consent at
Whitehall Riverside, a mixed-use scheme, in May 2023 (the formal decision
notice was then issued in March 2024), we continue to move forward with both
build contractors/professional teams and potential tenants for all phases of
the development
Outlook - strong financial position to pursue attractive opportunities
· Focus on our core operations and bringing forward our developments
· Continue to explore opportunities both within traditional real estate
in Leeds, Manchester and London and in complementary areas that can add value
and further diversify risk.
· Resilient trading performance has continued into the first half of
FY26:
o Rent collections remain robust with over 99% of amounts invoiced in the
last quarter of the year now collected
o Car parks' recovery momentum continues
o Significant headroom of £24.6m on existing revolving credit facilities
o Weighted average cost of borrowings at period end of 5.2%, with 87.5% at
fixed rates
· The Company's share price continues to trade at a significant
discount to its NTA per share
-Ends-
For further information, please contact:
Town Centre Securities www.tcs-plc.co.uk
PLC (https://protect.checkpoint.com/v2/___http:/www.tcs-plc.co.uk/___.bXQtcHJvZC1jcC1ldXcyLTE6bmV4dDE1OmM6bzplNjc3ZTVkMWY3Njg3ZjNjNTAwMzg4YTVkYjliZDk3Zjo2OmVhNjA6NWQ4ZDI5MGM0Y2Q5ZjNhNGM0YmQ4NjE0M2NhOGQyNTAyMTY5YmY1NmE3NzdkMTNmMDE4Yzk4Y2Q2OTQwMmQxMzpwOlQ6Tg)
/ @TCS_PLC
Edward Ziff, Chairman and Chief Executive 0113 222 1234
Stewart MacNeill, Group Finance Director
MHP tcs@mhpgroup.com (mailto:tcs@mhpgroup.com)
Reg Hoare / Matthew Taylor +44 7827 662831
Panmure Liberum www.panmureliberum.com
(https://protect.checkpoint.com/v2/r06/___http:/www.panmureliberum.com___.ZXV3MjpuZXh0MTU6YzpvOjhmNmIxZThlZDA0NDlhMDM5NjQyYzQ3YTQ1ZDMxMTAyOjc6NTJhMDpjMjQzZDkzZmIzOGFiYTIzZWM5M2Q5YzRkYWQyODNhMjIzOTc3YmNhNGQ0YzEwMWIzNzIxZTBhZjQ4ZGY5ZjYwOnA6RjpU)
Jamie Richards / Satbir Kler 020 3100 2123
Chairman & Chief Executive's Statement
Overview
This has been a year of continued resilience for Town Centre Securities,
despite international geopolitical issues causing uncertainty in the wider
economy. We have focused on our core operations, maintaining a cautious
approach rooted in financial prudence, and positioning the business for
long-term value creation. I would like to thank all our colleagues for their
ongoing dedication and contributions to the business.
Our property, car park and hotel operations delivered solid performance, with
strong levels of occupancy and rent collection, and the completion of the
rollout of our parking management system has enhanced efficiency. We did not
make any acquisitions or disposals during the reporting period, although we
took the decision to serve notice on a lease for one of our car parks in
Watford. While some of our occupiers ceased trading during the period, we made
some promising new lettings. An example is Dishoom, whose decision to open
their first Leeds restaurant at Vicar Lane is a strong endorsement of the
location's appeal and long-term potential.
At the end of the financial year, we were delighted to secure planning consent
for a landmark student accommodation scheme at the Merrion Centre. The
approved plans will transform the vacant 13-storey Wade
House and add a 37-storey tower on the adjacent 100MC site to provide 1,039
student bedrooms with top-tier amenities. By adding residential use for the
first time, the scheme will further diversify the estate and cement the
Merrion Centre's position as a vibrant, mixed-use destination. Our other key
development site is Whitehall
Riverside, for which we received planning approval in 2024. Enabling ground
works were completed in the year, and we are in advanced discussions with
prospective occupiers for Z, our next-generation office development that is
set to redefine workplace standards in Leeds.
Financial performance
◆ Our statutory loss in the year of £3.4m (2024: £7.8m loss) includes
valuation losses and impairments in our property portfolio of £5.7m, with a
like-for-like portfolio valuation down 2.4% from June 2024.
◆ Taking into account the other comprehensive losses in the year totalling
£0.6m and £1.1m in dividends paid, net asset value per share was 266p,
compared with 279p at 30 June 2024.
◆ Net borrowings, excluding lease liabilities, stood at £111.2m at 30 June
2025 (£108.6m at 30 June 2024).
◆ EPRA earnings per share are 4.2p for the year (2024: 14.0p) with the
initial recognition and subsequent movement on deferred tax assets and
liabilities accounting for 5.4p of earnings in the prior year. In the current
year, taxation has reduced EPRA earning per share by 2.8p.
◆ 99% of all rent and service charge income invoiced in the year was
collected.
◆ During the year the Company received the final receipt of £3m relating to
the sale of its investment in YourParkingSpace. Since the July 2022 sale the
Company has received total consideration of over £21m, crystallising a profit
of £18.5m in the two-year period.
People
I was deeply saddened to hear of the deaths of former Directors of the Company
Clive Lewis, John Nettleton, David Whitehead, and John Leadbeater. We honour
them in a dedicated section of the Annual Report and I also want to express my
personal gratitude for their invaluable contributions to the success of the
business, as well as their sound advice and friendship.
Sustainability
Our commitment to sustainability remains strong, and we are pleased that 43%
of our portfolio has an EPC rating of B or above.
Dividend
Following completion of requirements associated with our exit from the REIT
regime in 2023, we have resumed a regular dividend cycle. An uncovered
dividend of 2.5p per share will be paid on 8 January 2026 to shareholders
registered on 19 December 2025. Along with the interim dividend of 2.5p paid
on 12 June 2025, this brings the total dividend for the reporting period to
5.0p, amounting to £2.1m or 119% of EPRA earnings.
Capital allocation decisions will continue to be evaluated by the Board with
the aim of enhancing long-term shareholder value. This includes considering
alternative methods of returning capital to shareholders, beyond the regular
payment of Ordinary Dividends, where appropriate.
Outlook
Looking ahead, we will maintain our focus on creating long-term value from our
existing property portfolio and car parking business, taking a disciplined
financial approach to decision making. We are exploring additional investment
opportunities, both within traditional real estate and in complementary areas
that can add value and further diversify our risk. Our well-balanced
portfolio, strong balance sheet, experienced team, and long-term
perspective position us well to navigate ongoing economic uncertainty and
deliver sustainable growth.
Portfolio review
The like-for-like value of our portfolio decreased by 2.4% (£4.2m) after
capital expenditure of £4.2m and a £2.1m disposal in the year.
The valuation of all of our properties (except two) was carried out by CBRE.
Passing rent ERV Value % of portfolio Valuation incr/(decr) Initial yield Reversionary yield
£m £m £m
Retail & Leisure 0.4 1.5 15.9 6% 14.5% 2.3% 9.2%
Merrion Centre (ex offices) 4.0 4.7 48.1 19% -7.1% 7.9% 9.2%
Offices 4.9 6.5 73.7 29% 0.7% 6.3% 8.3%
Hotels 0.9 0.9 10.2 4% 3.0% 8.5% 8.5%
Out of town retail 1.1 1.3 13.1 5% 4.6% 7.6% 9.7%
Residential 1.7 1.9 34.5 14% 6.7% 4.6% 5.1%
13.0 16.8 195.5 77% 1.0% 6.3% 8.1%
Development property 22.6 9% -14.9%
Car parks 36.1 14% -10.9%
Portfolio 254.1 100% -2.4%
Note: includes our share of Merrion House within Offices (£27.5m - see note 8
of these financial statements) and car park goodwill of £1.7m (see note 13 of
these financial statements) arising on individual car park assets but
specifically excluding goodwill arising from car park operation acquisitions.
None of the above is included in the table set out in note 7 of these
financial statements.
Note: excludes IFRS 16 adjustments that relate to right-of-use car park assets
(£20.9m) as the Directors do not believe it is appropriate to include in this
analysis assets which have fewer than 50 years remaining on their lease and
the Group does not have full control over these assets. These assets are
included in the table set out in note 7 of these financial statements.
The table below reconciles the table above to that set out in note 7 of these
financial statements:
FY25 FY24
£m
Portfolio - as per note 7 245.8 248.9
50% Share in Merrion House 27.5 27.5
Goodwill - Car Parks 1.7 2.5
Less - Right-to-Use Car Parks (20.9) (22.9)
As per the table above 254.1 256.0
Sales and purchases
During the financial year ended 30 June 2025 we did not sell or purchase any
new properties, however we did serve notice to terminate the lease on one of
our right of- use car parks, which has resulted in the recognition of a profit
on disposal of a leasehold property.
Our continued commitment to asset recycling is clear when opportunities arise.
The table below details the £168.4m of disposals made since FY17, of which
71% were retail and leisure assets.
Sales Purchases
£m % retail and leisure £m % retail and leisure
FY17 22.3 88% 4.0 46%
FY18 10.1 95% 9.0 0%
FY19 14 100% 16.0 25%
FY20 2.5 100% 1.7 100%
FY21 48 93% 0.0 0%
FY22 37.9 59% 7.0 100%
FY23 33.4 21% 18.8 0%
FY24 0.2 0% 1.5 0%
FY25 0 0% 0.0 0%
168.4 71% 58.0 25%
Retail and leisure
The retail and leisure market has recovered this year. We have seen this with
valuation improvements on our retail and leisure assets outside of the Merrion
Centre.
Renewed interest in our Vicar Lane property following the announcement around
Dishoom coming to Leeds is a particular highlight. The wider Merrion Estate is
proving resilient, however the internal retail mall is suffering both from
existing and potential tenant demand.
As the online retail market grows, high street units are having to diversify
their offering to become more than just shops; some are now incorporating
experiences, entertainment and restaurants. This is a trend that we are
looking to replicate throughout our portfolio.
Regional offices
The valuation of our office portfolio has now stabilised following a number of
years of decline and in the year has grown by 0.7%. Whilst the office market
continues to face significant macroeconomic pressures there have been signs of
positivity throughout the year, with rental growth being achieved at each
building within our office portfolio.
This is particularly true at Town Centre House where we have committed
significant investment into our suites and communal areas, allowing us to
achieve EPC A and assist us in our sustainability targets.
Office space in prime locations continues to be well sought after, and we are
seeing more demand for flexible work-space to be offered as part of a wider
building amenity, with those taking large space on traditional leases looking
for flexible space within the building to scale up and down as necessary.
Residential
The residential market has continued to grow with our residential portfolio
increasing by 6.7% in value during the year. Whilst the Manchester rental
market has started to see softening demand there has still been annual growth
of 2.4%, with our Manchester portfolio outperforming this due to its
positioning within the market, allowing us to remain an attractive option to
various parties. The removal of multiple dwellings relief on stamp duty had an
effect on our portfolio last year however the market now appears to be
rebalancing itself, with demand growing again.
Car parks
During the year, the Company's freehold and long leasehold car park assets
fell in value by £4.4m, a drop of 10.9%.
Occupancy levels across the portfolio remain consistent, however increased
operating costs and rental charges
negatively impacted the underlying values.
Developments
The value of the Company's development sites reduced by £3.7m or 14.9% in the
year.
Property
Overview
Our long-term perspective has remained a mainstay of our approach as
international geopolitical factors have caused economic uncertainty, and, as
such, the reporting period was not one of significant change to the portfolio.
We remain in a strong financial position and continue to take a long-term
approach to our portfolio.
In the main, our assets remain well let, with the exception of some voids and
spaces held for redevelopment in Leeds. We did not make any acquisitions or
disposals during the year, although we will continue to evaluate opportunities
on a case-by-case basis to ensure alignment with our investment criteria and
priorities. Excluding
the impact of business failure, where three of our tenants went into
administration in the year, rent collection has remained robust.
We have continued to progress our development sites, while monitoring economic
conditions and market sentiment to inform decisions.
Performance by segment
Our office locations have seen high occupancy. In line with our asset
management strategy to invest in high quality space, the refurbishment of Town
Centre House has gone well, with offices on the ground and fourth floors let,
and a tenant on another floor looking to expand.
Across the wider sector, we have continued to see larger corporate occupiers
seeking quality spaces with strong sustainability credentials as they
encourage a return to office working. Demand for office space continues to be
affected by people working from home, however, despite an increase in
employers mandating office-based work. There is a great deal of secondary
office stock to be absorbed before significant new build office development is
likely, particularly in a challenging funding environment with interest rates
remaining high, despite the recent reductions in the Bank of England base
rate.
There have been winners and losers in the leisure sector, with several of our
units affected during the year by restaurant closures. Our team has been busy
working on what could replace them, and it is encouraging to see strong
interest from prospective occupiers. We have made some high-quality lettings
during the period. An example is Dishoom, who have chosen to locate their
first Leeds restaurant on Vicar Lane and will occupy 8,000 square feet over
two floors of the Coronation Buildings. A high-profile operator like Dishoom
coming to Leeds is generating interest from other restaurant operators looking
for a presence in the city. We are continuing to explore options for
reinventing the vacant nightclub space at the Merrion Centre.
Our residential assets have continued to perform well across our locations. In
Glasgow, we completed the refurbishment of Bath Street during the period and
have let the apartments at strong rents. Our properties in Manchester and
Leeds have also seen high occupancy and increasing rents.
Our Ibis Styles hotel has also enjoyed high occupancy throughout the year,
with the UKREiiF (Real Estate Investment and Infrastructure Forum) in May an
example of the types of events and conferences attracting high numbers of
delegates to Leeds.
Development pipeline
At the end of the reporting period, we were pleased to receive planning
approval from Leeds City Council for a flagship student accommodation scheme
at the Merrion Centre. The plans will deliver 1,039 high quality student
bedrooms with premium amenities by repurposing the vacant 13-storey Wade House
and introducing a striking 37-storey building on the adjacent 100MC site.
Adding residential use for the first time marks a significant milestone in the
Merrion Centre's 61-year history and supports our vision to diversify the
estate.
Having received planning permission for our prime Whitehall Riverside site in
2024, we completed groundwork during the year. We recently unveiled details of
Z, which will create best-in-class, smart, energy-efficient office spaces as a
core element of the wider masterplan that also includes a multistorey car park
and are in discussions with potential occupiers.
Outlook
As we work to optimise returns from our portfolio and advance our development
pipeline, diverse external factors will continue to present opportunities as
well as challenges. Our expertise in multiple sectors, financial strength and
long-term perspective make us well placed to capitalise on opportunities as
they arise, as well as ride out periods of uncertainty in specific parts of
the market, and we look forward with confidence.
CitiPark
Overview
The past year has been a period of consolidation for CitiPark, with a focus on
organic growth of our existing portfolio, while we have maintained a cautious
approach to exploring opportunities for growth. Revenues for the year were
£14.0m (2024: £13.4m).
Performance
Utilisation of our branches has continued to be influenced by structural
factors including fewer working days in the office, as well as local policies
to encourage changes in travel patterns, such as traffic management schemes to
alter traffic flows.
We have maintained our efforts to offset the effects of such challenges by
offering different propositions and promotions to local businesses as we work
to develop and strengthen relationships.
After taking on management of three branches in the previous reporting period,
we have not entered additional car park management agreements this year. We
have focused on operating existing locations and generating learnings to
support the evaluation of future branches.
As part of our ongoing efforts to optimize our operations, we took the
decision to serve notice on a lease for one of our car parks in Watford and
will exit this site in December 2025.
Technology and innovation
Our parking management system has now been deployed across all our branches -
owned and managed - and has been very well received. Our software and the
associated hardware have greatly improved the customer experience, supported
revenue generation and also created synergies with our enforcement business.
We continue to drive improvements and to benefit from cost efficiencies from
operating our own platform.
Our investment in EV charging infrastructure has focused on renewals and
upgrades. Decisions on expansion of charging points are informed by our data
and insights on utilisation as well as customer feedback. Although the number
of charging points on our own branches has remained stable, we have increased
the number of chargers
under our management, adding 29 chargers at the Plateworks in Leeds after we
were approached to manage this new location.
Outlook
With a solid, well-invested business across our branches, parking management
system and ancillary services, we retain a positive view of CitiPark's
prospects. We will continue to apply our rigorous approach to evaluating
opportunities for growth and innovation, applying our deep sector expertise as
well as data from our operations to guide decision making.
Financial Review
The financial performance of the Company during the year ended 30 June 2025
shows underlying EPRA earnings after tax of £1.8m (before taxation £3.0m -
compared to before tax in FY24 of £3.9m).
The statutory profit of the year is again affected by both reductions in
investment property values and
impairments to the Group car parking portfolio, as real estate investor and
market sentiment across these segments remain subdued.
The statutory loss for the year was £3.4m, compared to a loss of £7.8m in
the previous year.
EPRA Earnings* were a profit of £1.8m in the year, compared to a profit of
£6.3m in the prior year. The EPRA profit for the prior year included a net
taxation credit of £2.4m, whereas the current year includes a £1.2m expense;
excluding the effect of taxation the EPRA profit of the Company would have
been £3.0m, representing a 23% reduction in the underlying performance of the
Company.
The Board is recommending the payment of a final dividend for the year of
2.5p, giving a full-year dividend of 5.0p, which is 41% lower than the
previous year. The previous year's full-year dividend of 8.5p included an
interim
dividend paid out as a property income distribution following the Company's
exit from the REIT regime in July 2023.
During the year the Company received the final element of deferred
consideration from the sale of its investment in YourParkingSpace Ltd
('YPS'), generating further proceeds of £3.1m. These amounts were retained by
the Company to fund its working capital requirements.
Net borrowings have increased from £108.6m to £111.2m in the year. Net
borrowings represent total financial
borrowings of £134.8m plus overdrafts of £1.1m, less lease liabilities of
£24.7m.
Restatement of prior figures
Prior year comparatives have been restated to reflect the impact of
index-linked rent reviews on the application of IFRS 16 to right-of-use assets
and lease liabilities, full details of which are set out in note 14 of the
financial statements.
£000s FY25 FY24 YOY
Gross Revenue 32,692 31,968 2.3%
Impairment of debtors provision movement 0 0 -
Property Expenses (17,826) (15,604) 14.2%
Net Revenue 14,866 16,364 (9.2%)
Other Income / JV Profit 2,994 1,990 50.5%
Other Expenses 0 0 -
Administrative Expenses (7,512) (7,293) 3.0%
Operating Profit 10,348 11,061 (6.4%)
Net Finance Costs (7,405) (7,182) 3.1%
Taxation (1,165) 2,416 -
EPRA Earnings 1,778 6,295 (71.8%)
Segmental FY25 FY24 YOY
Property
Net Revenue 8,777 9,886 (11.2%)
Operating Profit 5,987 6,264 (4.4%)
CitiPark
Net Revenue 5,534 5,840 (5.2%)
Operating Profit 3,763 4,118 (8.6%)
ibis Styles Hotel
Gross Revenue 555 638 (13.0%)
Operating Profit 555 638 (13.0%)
Investments
Other income and operating profit 43 41 4.9%
STATUTORY PROFIT
On a statutory basis the reported loss for the year was £3.4m.
The statutory profit reflects the EPRA Earnings* of £1.8m less £5.7m of
non-cash valuation and impairment movements, plus the profit on disposal
recognised of £1.7m on one car park right-of-use asset properties and
investments sold in the year, less £1.2m of deferred taxation on valuation
movements in the year.
Gross revenue
Gross revenue was up £0.7m or 2.3% year-on- year, with key drivers being:
• Gross property revenue during the year was £0.1m ahead of the previous
period with no investment property sales or acquisitions in the year.
• CitiPark revenues have continued to grow in the year, with gross revenue
across the portfolio increasing by 4.6% from £13.4m to £14.0m.
• Income for the Ibis Styles hotel has been consistent with last year at
£3.3m.
Property expenses
Property expenses have increased by 14.2% year-on-year with increases to both
direct investment property costs (irrecoverable service charge, vacant unit
and significant repair costs all contributing to an increase of £1.1m) and
car park operating expenses (£0.8m of rates rebates were received in the
prior year which have resulted in a year-on-year increase).
Other/JV income
Total Other/JV income was up 50.5% or £1.0m year-on-year, with increased
dilapidation and surrender premia received during the year.
Administrative expenses
Administrative costs were £0.2m or 3.0% higher year-on-year, reflecting
inflationary increases to most cost headings.
Finance costs
Finance costs were 3.1% or £0.2m higher year-on-year as a result of the
increase in the Company's bank borrowings which were primarily used to fund
the Company's buyback of shares in November 2023.
£m FY25 FY24 vs FY24
Freehold and Right to Use Investment Properties 160.5 156.5 2.6%
Development Properties 22.6 24.5 (7.8%)
Car Park related Assets, Goodwill and Investments 54.9 64.1 (14.4%)
Hotel Operations 10.2 9.9 3.0%
248.2 255.0 (2.7%)
Joint Ventures 5.6 4.8 16.7%
Listed Investments 2.6 3.3 (21.2%)
Other Non-Current Assets 2.2 2.0 10.0%
Total Non-Current Assets 258.6 265.1 (2.5%)
Net Borrowings (139.9) (141.4) (1.1%)
Deferred tax 1.0 3.1 -
Other Assets/(Liabilities) (7.4) (9.4) (21.3%)
Statutory NAV 112.3 117.4 (4.3%)
Statutory NAV per Share 266p 279p (4.4%)
EPRA Net Tangible Assets (NTA) 109.9 114.5 (4.0%)
EPRA NTA per Share 261p 272p (4.0%)
Non-current assets
Our total non-current assets (including investments in JVs) of £258.6m (2024:
£265.1m) have reduced by £6.5m during the year. This movement is made up of
the following:
• Disposals, including YPS receipts of £(5.3m)
• Depreciation charge of £(2.3m)
• Capital expenditure of £5.4m
• Revaluation uplift/reversal of impairments totalling £(6.5m)
• IFRS 16 lease reassessments of £1.4m
• Operating profits generated and retained in JV entities and other
movements of £0.8m
Borrowings
During the year our net borrowings have reduced by £1.5m, from £141.4m as at
30 June 2024 to £139.9m at the year-end. This reduction was primarily due to
serving notice on a right-of-use car park asset, which has reduced lease
liabilities by £2.1m in the year.
We have recently extended our existing Lloyds revolving credit facility by one
year; it is now due to expire in June 2027. There remains the option to extend
again by a further year, which we can opt for in October 2026. It is our
intention to apply for this at that time; clearly it is subject to bank
consent.
We have extended our NatWest revolving credit facility by a further 15 months
during the year; it is now due to expire in December 2026. Our Handlesbanken
credit facility expires in June 2026. We will be looking to renew both of
these facilities in the coming months; clearly both will be subject to bank
consent.
Loan-to-value has been increased to 53.1%, up from 50.8% a year ago, primarily
due to the decrease in property values during the year. Note the calculation
of loan-to-value includes both the finance lease assets and liabilities.
EPRA net asset reporting
We focus primarily on the measure of Net Tangible Assets ('NTA'). The below
table reconciles IFRS net assets to NTA, and the other EPRA measures.
There are three EPRA Net Asset Valuation metrics, namely EPRA Net
Reinstatement Value ('NRV'), EPRA Net Tangible Assets ('NTA') and EPRA Net
Disposal Value ('NDV'). The EPRA NRV scenario aims to represent the value
required to rebuild the entity and assumes that no selling of assets takes
place. The EPRA NTA is focused
on reflecting a company's tangible assets. EPRA NDV aims to represent the
Shareholders' value under an orderly sale of business, where, for example,
financial instruments are calculated to the full extent of their liability.
All three NAV metrics share the same starting point, namely IFRS Equity
attributable to shareholders.
Future financial considerations
Future P&L pressure
The wider economy and underlying property values are still struggling, with
uncertainty around office-based working and shopping habits continuing.
In terms of our own specific business, once you exclude the impact of
valuation movements and one-off items (for example significant current year
roof repairs and rates rebates in the prior period) we have seen recoveries in
all segments. However, factoring in the above one-off items, underlying
earnings of the business have reduced in the year. During the year we have
resumed a more normal dividend cycle of an interim dividend of 2.5p per share
and a proposed final dividend of 2.5p.
Future balance sheet
As identified in the Risk Report, we have highlighted the continued pressure
on retail and office investments to be a significant risk to the business. As
part of the going concern and viability statement review process, the Company
has prepared consolidated forecasts and identified a number of mitigating
factors to ensure that
the ongoing viability of the business is not threatened.
Going concern and headroom
One of the most critical judgements for the Board is the headroom in the
Group's debt facilities. This is calculated as the maximum amount that could
be borrowed, taking into account the properties secured to the
funders and the facilities in place.
The total headroom at 30 June 2025 was £24.6m (2024: £20.4m), which was
considered to be sufficient to support our going concern conclusion. The
properties secured under the Group's debt facilities would need to fall 25.8%
in value before this headroom number was breached.
In assessing both the viability and going concern status of the Company, the
Board reviewed detailed projections including various different scenarios. A
summary of the approach and the findings is set out in the Risk Report,
forming part of the Strategic Report of the Annual Report
Total shareholder return and total property return
Total shareholder return of 3.3% (2024:minus 14.7%) was calculated as the
total of dividends paid during the financial year of2.5p (2024: 8.5p) and the
movement in the share price between 30 June 2024 (133.5p)and 30 June 2025
(135.5p), assuming reinvestment of dividends. This compares with the FTSE All
Share REIT Index at 1.3% (2024: 18.2%) for the same period. The Company's
share price continues to trade at a significant discount to its NAV, impacting
total shareholder return.
Total Shareholder returns % (CAGR)
Total Shareholder returns 1 Year 10 Years 20 Years
Town Centre Securities 3.3% (3.6%) (0.5%)
FTSE All Share REIT Index 1.3% 0.2% 2.7%
Total property return is calculated as the net operating profit and
gains/losses from property sales and valuations as a percentage of the opening
investment properties. Total property return for the business for the reported
12 months was 6.2% (2024: 1.5%).
Consolidated income statement
for the year ended 30 June 2025
2025 2024
Restated
Notes £000 £000
Gross revenue (excluding service charge income) 1 29,757 28,983
Service charge income 1 2,935 2,985
Gross revenue 1 32,692 31,968
Service charge expenses 1 (4,310) (3,982)
Property expenses 1 (13,516) (11,622)
Net revenue 14,866 16,364
Administrative expenses 2 (7,512) (7,293)
Other income 3 1,937 965
Valuation movement on investment properties 7 (2,214) (7,625)
Impairment of car parking assets 7 (2,697) (3,878)
Impairment of goodwill (772) (577)
Loss on disposal of investments (87) (191)
Valuation movement on investments - 408
Profit on disposal of investment properties - 27
Profit on disposal of freehold and leasehold properties 7(B) 1,762 -
Share of post-tax profits/(losses) from joint ventures 8 1,057 (2,175)
Operating profit/(loss) 6,340 (3,975)
Finance costs (7,423) (7,348)
Finance income 18 166
Loss before taxation (1,065) (11,157)
Taxation 4 (2,381) 3,319
Loss for the year attributable to owners of the Parent (3,446) (7,838)
Earnings per share
Basic and diluted 6 (8.2p) (17.5p)
EPRA (non-GAAP measure) 6 4.2p 14.0p
Dividends per share
Paid during the year 5 2.5p 11.0p
Proposed 5 2.5p -
Consolidated statement of comprehensive income
for the year ended 30 June 2025
2025 2024
Restated
£000 £000
Loss for the year (3,446) (7,838)
Items that will not be subsequently reclassified to profit or loss
Revaluation (losses)/gains on car parking assets 7 (656) 994
Revaluation gains on hotel assets 7 542 642
Revaluation losses on other investments (706) (763)
Deferred tax on freehold car park valuation losses/(gains) 178 (236)
Total other comprehensive (loss)/income (642) 637
Total comprehensive loss for the year (4,088) (7,201)
Consolidated balance sheet
as at 30 June 2025
2025 2024 2023
Restated Restated
Notes £000 £000 £000
Non-current assets
Property rental
Investment properties 7 183,092 180,977 183,801
Investments in joint ventures 8 5,636 4,752 7,123
188,728 185,729 190,924
Car park activities
Freehold and leasehold properties 7 52,470 58,003 61,834
Goodwill and intangible assets 2,430 2,892 3,674
54,900 60,895 65,508
Hotel operations
Freehold properties 7 10,200 9,900 9,500
10,200 9,900 9,500
Fixtures, equipment and motor vehicles 7 1,613 1,446 1,269
Investments 9 3,259 3,965 7,503
Deferred tax assets 10 939 3,083 -
Total non-current assets 259,639 265,018 274,704
Current assets
Trade and other receivables 3,802 3,996 3,264
Cash and cash equivalents 17,990 22,152 23,320
Investments 9 - 3,177 6,436
Total current assets 21,792 29,325 33,020
Total assets 281,431 294,343 307,724
Current liabilities
Trade and other payables (11,229) (13,425) (12,387)
Bank overdrafts (18,375) (20,760) (21,700)
Borrowings and lease liabilities (12,620) (1,768) (4,665)
Total current liabilities (42,224) (35,953) (38,752)
Non-current liabilities
Borrowings and lease liabilities (126,905) (140,946) (130,249)
Total non-current liabilities (126,905) (140,946) (130,249)
Total liabilities (169,129) (176,899) (169,001)
Net assets 112,302 117,444 138,723
Equity attributable to the owners of the Parent
Called up share capital 11 10,540 10,540 12,113
Share premium account 200 200 200
Capital redemption reserve 3,309 3,309 1,736
Revaluation reserve 4,248 4,184 2,784
Retained earnings 94,005 99,211 121,890
Total equity 112,302 117,444 138,723
Net asset value per share 13 266p 279p 286p
Consolidated statement of Changes in Equity
for the year ended 30 June 2025
Called up share capital Share Capital redemption reserve Revaluation reserve Retained earnings Total equity
premium account
£000 £000 £000 £000 £000 £000
Balance at 30 June 2023 12,113 200 1,736 2,784 121,890 138,723
Comprehensive income for the year
Loss for the year - - - - (7,838) (7,838)
Other comprehensive income - - - 1,400 (763) 637
Total comprehensive loss for the year - - - 1,400 (8,601) (7,201)
Contributions by and distributions to owners
Arising on purchase and cancellation of own shares (1,573) - 1,573 - (9,440) (9,440)
Final dividend relating to the year ended 30 June 2023 - - - - (1,054) (1,054)
Interim dividend relating to the year ended 30 June 2024 - - - - (3,584) (3,584)
Balance at 30 June 2024 10,540 200 3,309 4,184 99,211 117,444
Comprehensive income for the year
Loss for the year - - - - (3,446) (3,446)
Other comprehensive income - - - 64 (706) (642)
Total comprehensive loss for the year - - - 64 (4,152) (4,088)
Contributions by and distributions to owners
Interim dividend relating to the year ended 30 June 2025 - - - - (1,054) (1,054)
Balance at 30 June 2025 10,540 200 3,309 4,248 94,005 112,302
Consolidated cash flow statement
for the year ended 30 June 2025
2025
2024
Notes £000 £000 £000 £000
Cash flows from operating activities
Cash generated from operations 12 9,471 12,594
Interest received 18 8
Interest paid (6,186) (6,001)
Corporation tax paid 4 (59) -
Net cash generated from operating activities 3,244 6,601
Cash flows from investing activities
Purchase and construction of investment properties 7 - (1,544)
Refurbishment of investment, freehold and leasehold properties 7 (4,183) (2,481)
Purchases of fixtures, equipment and motor vehicles 7(D) (645) (525)
Proceeds from sale of investment properties - 187
Proceeds from sale of investments 9 3,095 6,658
Proceeds from sale of fixtures, equipment and motor vehicles 7(D) 131 -
Distributions received from joint ventures 8 173 196
Purchase of investments - (250)
Purchase of subsidiary, net of cash acquired (496) -
Net cash (used in)/generated from investing activities (1,925) 2,241
Cash flows from financing activities
Proceeds from non-current borrowings - 9,750
Repayment of non-current borrowings (100) (3,087)
Arrangement fees paid (163) (419)
Principal element of lease payments (1,780) (1,665)
Dividends paid to Shareholders 5 (1,054) (4,209)
Purchase of own shares - (9,440)
Net cash used in financing activities (3,097) (9,070)
Net (decrease)/increase in cash and cash equivalents (1,778) (228)
Cash and cash equivalents at beginning of the year 1,392 1,620
Cash and cash equivalents at end of the year (386) 1,392
Cash and cash equivalents at the year end are comprised of the following:
Cash balances 17,989 22,152
Overdrawn balances (18,375) (20,760)
(386) 1,392
The Consolidated Cash Flow Statement should be read in conjunction with Note
12.
Audited preliminary results announcements
The financial information for the year ended 30 June 2025 and the year ended
30 June 2024 does not constitute the company's statutory accounts for those
years.
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 auditors' reports on the accounts for 30 June 2025 and 30 June 2024 were
unqualified, did not draw attention to any matters by way of emphasis, and did
not contain a statement under 498(2) or 498(3) of the Companies Act 2006.
1. Segmental information
The chief operating decision-maker has been identified as the Board. The Board
reviews the Group's internal reporting in order to assess performance and
allocate resources. Management has determined the Group's operating segments
based on these reports.
(A) Segmental assets 2025 2024
Restated
£000 £000
Property rental 211,688 215,062
Car park activities 56,284 62,239
Hotel operations 10,200 9,900
Investments 3,259 7,142
281,431 294,343
(B) Segmental results
2025 2024 - Restated
Property Car park Hotel Property Car park Hotel
rental activities operations Investments Total rental activities operations Investments Total
£000 £000 £000 £000 £000 £000 £000 £000 £000 £000
Gross revenue (excl service charge income) 12,442 13,978 3,337 - 29,757 12,314 13,361 3,308 - 28,983
Service charge income 2,935 - - - 2,935 2,985 - - - 2,985
Gross revenue 15,377 13,978 3,337 - 32,692 15,299 13,361 3,308 - 31,968
Service charge expenses (4,310) - - - (4,310) (3,982) - - - (3,982)
Property expenses (2,290) (8,444) (2,782) - (13,516) (1,431) (7,521) (2,670) - (11,622)
Net revenue 8,777 5,534 555 - 14,866 9,886 5,840 638 - 16,364
Administrative expenses (5,711) (1,801) - - (7,512) (5,571) (1,722) - - (7,293)
Other income 1,864 30 43 1,937 924 - - 41 965
Share of post-tax profits from joint ventures 1,057 - - - 1,057 1,025 - - - 1,025
Operating profit before valuation movements 5,987 3,763 555 43 10,348 6,264 4,118 638 41 11,061
Valuation movement on investment properties (2,214) - - - (2,214) (7,625) - - - (7,625)
Impairment of car parking assets - (2,697) - - (2,697) - (3,878) - - (3,878)
Impairment of goodwill - (772) - - (772) - (577) - - (577)
Loss on disposal of investments - - - (87) (87) - - - (191) (191)
Valuation movement on investments - - - - - - - - 408 408
Profit on disposal of investment properties - - - - - 27 - - - 27
Profit on disposal of freehold and leasehold properties - 1,762 - - 1,762
Valuation movement on joint venture properties - - - - - (3,200) - - - (3,200)
Operating (loss)/profit 3,773 2,056 555 (44) 6,340 (4,534) (337) 638 258 (3,975)
Finance costs (7,423) (7,348)
Finance income 18 166
Loss before taxation (1,065) (11,157)
Taxation (2,381) 3,319
Loss for the year (3,446) (7,838)
All results are derived from activities conducted in the United Kingdom.
The car park results include car park income from sites that are held for
future development. The value of these sites has been determined based on
their development value and therefore the total value of these assets has been
included within the assets of the property rental business.
The net revenue at the development sites for the year ended 30 June 2025,
arising from car park operations, was £1,349,000. After allowing for an
allocation of administrative expenses, the operating profit at these sites was
£838,000.
Revenue received within the car park activities' segment and hotel operations'
segment as well as other income in the property rental segment is the only
revenue recognised on a contract basis under IFRS 15. All other revenue
within the property rental segment comes from rental lease agreements.
2. Administrative expenses
2025 2024
£000 £000
Employee benefits 4,427 4,457
Depreciation 172 168
Charitable donations 86 77
Other 2,827 2,591
7,512 7,293
Depreciation charged to the Consolidated Income Statement as an administrative
expense relates to depreciation on central office equipment, including
fixtures and fittings, computer equipment and motor vehicles. Depreciation on
operational equipment and Right-of-use assets within both the car park and
hotel businesses are charged as direct property expenses within the
Consolidated Income Statement.
3. Other income
2025 2024
Other income £000 £000
Commission received 196 169
Dividends received 43 41
Service charge management fees 280 258
Development management fees 227 158
Dilapidations receipts and income relating to surrender premiums 1,019 267
Profit on sale of fixed assets 55 -
Other 117 72
1,937 965
4. Taxation
2025 2024
Restated
£000 £000
Current
Current year - -
Adjustments in respect of prior years 59 -
59 -
Deferred tax
Recognition of previously unrecognised trading losses - (2,888)
Utilisation of trading losses 967 1,203
Origination and reversal of timing differences 1,355 (1,634)
Adjustments in respect of prior periods - -
2,322 (3,319)
2,381 (3,319)
Taxation for the year is higher (2024: higher) than the standard rate of
corporation tax in the United Kingdom of 25% (2024: 25%). The differences are
explained below:
2025 2024
Restated
£000 £000
Loss before taxation (1,065) (11,157)
Loss on ordinary activities multiplied by rate of corporation tax in the (266) (2,789)
United Kingdom of 25% (2024: 25%)
Effects of:
- Valuation movements on which deferred tax is not recognised 2,344 2,110
- Recognition of carried forward trading losses - (2,888)
- Expenses not deductible for tax purposes 244 248
- Adjustments in respect of prior years 59
Total taxation charge/(credit) 2,381 (3,319)
The Company left the REIT regime with effect from 1 July 2023. The results of
the Company and the Group have subsequently been subject to corporation tax.
5. Dividends
2025 2024
£000 £000
2023 final paid: 2.5p per share - 1,054
2024 interim paid: 8.5p per share - 3,584
2024 final paid: 2.5p per share 1,054 -
1,054 4,638
An interim dividend in respect of the year ended 30 June 2025 of 2.5p per
Ordinary Share was paid to Shareholders on 13 June 2025.
A final dividend in respect of the year ended 30 June 2025 of 2.5p per
Ordinary Share is proposed. This dividend, based on the shares in issue at 15
October 2025, amounts to £1.054m which has not been reflected in these
accounts and will be paid on 8 January 2026 to shareholders on the register on
19 December 2025.
6. Earnings per share
The calculation of basic earnings per share has been based on the loss for the
year, divided by the weighted average number of Ordinary Shares in issue. The
weighted average number of shares in issue during the year was 42,162,679
(2024: 44,862,101).
2025 2024
Restated
Earnings Earnings
Earnings per share Earnings per share
£000 p £000 p
Loss for the year and earnings per share (3,446) (8.2) (7,838) (17.5)
Valuation movement on investment properties 2,214 5.3 7,625 17.0
Deferred tax on valuation movements 1,216 2.9 (903) (2.0)
Impairment of car parking assets 2,697 6.4 3,878 8.7
Impairment of goodwill 772 1.8 577 1.3
Valuation movement on properties held in joint ventures - - 3,200 7.1
Profit on disposal of investment properties (27) (0.1)
- -
Profit on disposal of freehold and leasehold properties (1,762) (4.2) - -
Loss on disposal of investments 87 0.2 191 0.4
Valuation movement on investments - - (408) (0.9)
EPRA earnings and EPRA earnings per share 1,778 4.2 6,295 14.0
EPRA earnings for the year ended 30 June 2024 included a tax credit
£2,888,000 relating to the initial recognition of a deferred tax asset for
historical trading losses.
There is no difference between basic and diluted earnings per share.
There is no difference between basic and diluted EPRA earnings per share.
7. Non-current assets
(A) Investment properties
Freehold Right-of-use asset Development Total
£000 £000 £000 £000
Valuation at 30 June 2023 160,700 2,250 20,851 183,801
Additions at cost - 2,860 - 2,860
Other capital expenditure 1,716 - 765 2,481
Disposals (160) - - (160)
Movement in tenant lease incentives (380) - - (380)
Valuation movement (10,466) 6 2,835 (7,625)
Valuation at 30 June 2024 151,410 5,116 24,451 180,977
Other capital expenditure 2,405 17 1,760 4,182
Movement in tenant lease incentives 147 - - 147
Valuation movement 1,528 (87) (3,655) (2,214)
Valuation at 30 June 2025 155,490 5,046 22,556 183,092
At 30 June 2025, investment property valued at £178,095,000 (2024:
£175,810,000) was held as security against the Group's borrowings.
During the prior year the Group acquired an investment property for a cash
consideration of £1,544,000 and recognised an additional IFRS16 right-of-use
asset of £1,316,000.
Right-of-use investment property assets include leasehold property interests.
The Company occupies an office suite in part of the Merrion Centre and one
floor of an investment property in London. The Directors do not consider these
elements to be material.
(B) Freehold and leasehold properties - car park activities
Freehold Right-of-use asset Total
Restated Restated
£000 £000 £000
Valuation at 30 June 2023 25,110 36,724 61,834
IFRS 16 adjustment - (95) (95)
Depreciation (272) (1,397) (1,669)
Valuation movement recognised in Other Comprehensive Income 994 - 994
Oher movements - lease reassessments - 817 817
Reversal of impairment/(impairment) 768 (4,646) (3,878)
Valuation at 30 June 2024 26,600 31,403 58,003
Disposals - (2,098) (2,098)
IFRS 16 adjustment - (95) (95)
Depreciation (287) (1,164) (1,451)
Valuation movement recognised in Other Comprehensive Income (656) - (656)
Oher movements - lease reassessments - 1,464 1,464
Impairment (1,107) (1,590) (2,697)
Valuation at 30 June 2025 24,550 27,920 52,470
The historical cost of freehold properties and Right-of-use assets relating to
car park activities is £30,153,000 (2024: £30,153,000).
At 30 June 2025, freehold properties and Right-of-use assets relating to car
park activities valued at £33,424,000 (2024: £35,450,000) were held as
security against the Group's borrowings.
(C) Freehold properties - hotel operations
Freehold
£000
Valuation at 30 June 2024 9,900
Depreciation (242)
Valuation movement 542
Valuation at 30 June 2024 10,200
At 30 June 2025, freehold property relating to hotel operations valued at
£10,200,000 (2024: £9,900,000) was held as security against the Group's
borrowings.
The fair value of the Group's portfolio of investment and development
properties, freehold car park properties and freehold hotel properties have
been determined principally by independent, appropriately qualified external
valuers CBRE. The remainder of the portfolio has been valued by the Directors.
Valuations are performed bi-annually and are performed consistently across the
Group's whole portfolio of properties. At each reporting date appropriately
qualified employees verify all significant inputs and review computational
outputs. The external valuers submit and present summary reports to the
Property Director and the Board on the outcome of each valuation round.
Valuation methodology for all properties (excluding the development
properties)
Valuations take into account tenure, lease terms and structural condition. The
inputs underlying the valuations include market rents or business
profitability, incentives offered to tenants, forecast growth rates, market
yields and discount rates and selling costs including stamp duty.
Valuation method for the development properties
The development properties principally comprise land in Leeds and Manchester.
These have also been valued by appropriately qualified external valuers CBRE,
taking into account an assessment of their realisable value in their existing
state and condition based on market evidence of comparable transactions and
residual value calculations.
Property income, values and yields as at 30 June 2025 are set out by category
in the table below.
Passing rent ERV Value Initial yield Reversionary yield
£000 £000 £000 % %
Retail and Leisure 393 1,544 15,890 2.3% 9.2%
Merrion Centre (excluding offices) 4,029 4,662 48,079 7.9% 9.2%
Offices 3,097 4,800 46,196 6.3% 9.8%
Hotels 913 913 10,200 8.5% 8.5%
Out of town retail 1,050 1,341 13,075 7.6% 9.7%
Residential 1,688 1,852 34,500 4.6% 5.1%
11,170 15,113 167,940 6.3% 8.5%
Development properties 22,556
Car parks 34,377
IFRS 16 - Right-of-use assets held within car park activities 19,573
IFRS 16 - Right-of-use assets held within investment property 1,316
245,762
Car parks above include £1.48m of a car park categorised as an investment
property in the Consolidated Balance Sheet.
Property income, values and yields have been set out by category as at 30 June
2024 in the table below.
Passing rent ERV Value Initial yield Reversionary yield
£000 £000 £000 % %
Retail and Leisure 1,178 1,282 13,810 8.1% 8.8%
Merrion Centre (excluding offices) 4,514 4,815 50,254 8.5% 9.1%
Offices 2,688 4,845 45,376 5.6% 10.1%
Hotels 875 875 9,900 8.4% 8.4%
Out of town retail 1,041 1,070 12,500 7.9% 8.1%
Residential 1,319 2,108 31,720 3.9% 6.3%
11,615 14,995 163,560 6.7% 8.7%
Development property 24,451
Car parks 38,017
IFRS 16 - Right-of-use assets held within car park activities 21,536
IFRS 16 - Right-of-use assets held within investment property 1,316
248,880
Investment properties (freehold and Right-of-use), freehold properties (PPE)
and hotel operations.
The effect on the total valuation (excluding development properties, car parks
and right-of-use assets) of £167.9m of applying a different weighted average
yield and a different weighted average ERV would be as follows:
Valuation in the Consolidated Balance Sheet at a net initial yield of 5.3% -
£199.7m, Valuation at 7.3% - £144.9m.
Valuation in the Consolidated Balance Sheet at a reversionary yield of 7.5% -
£190.3m, Valuation at 9.5% - £150.3m.
Investment properties (development properties)
The key unobservable inputs in the valuation of one of the Group's development
properties of £16.9m is the assumed per acre or per unit land value. The
effect on the valuation of this development property of applying a different
assumed per acre or per unit land value would be as follows:
Valuation in the Consolidated Balance Sheet if there was a 5% increase in the
per acre or per unit value - £17.7m, 5% decrease in the per acre or per unit
value - £16.0m.
The other key development property in the Group is valued on a per acre
development land value basis, the effect on the valuation of this development
property of applying reasonable sensitivities would not be material.
Freehold car park activities
The effect on the total valuation of the Group's freehold car park properties
of £24.6m in applying a different yield/discount rate (valuation based on a
6.6% net initial yield) and a different assumed rental value/net income
(valuation based on £1.6m) would be as follows:
Valuation in the Consolidated Balance Sheet based on a 1% decrease in the
yield/discount rate - £28.9m, 1% increase in the yield/discount rate -
£21.3m
Valuation in the Consolidated Balance Sheet based on a 5% increase in the
assumed rental value/net income - £25.8m, 5% decrease in the assumed rental
value/net income - £23.4m
Right-of-use car park activities
The effect on the total valuation of the Group's Right-of-use car park
properties of £27.9m in applying a different discount rate (valuation based
on 12%) and a different growth rate (valuation based on 1%) would be as
follows:
Property valuations can be reconciled to the carrying value of the properties
in the Consolidated Balance Sheet as follows:
Car park activities - freehold and leasehold properties
Hotel operations- freehold properties
Investment Properties
Total
£000 £000 £000 £000
Externally valued by CBRE 179,475 24,550 10,200 214,225
Investment properties valued by the Directors 2,301 - - 2,301
Properties held at valuation 181,776 24,550 10,200 216,526
IFRS 16 Right-of-use assets held at depreciated cost 1,316 27,920 - 29,236
183,092 52,470 10,200 245,762
Valuation of investment properties (freehold and Right-of-use), freehold
properties (PPE) and hotel operations at fair value
All investment properties, freehold properties held in property plant and
equipment, hotel operations and assets held for sale are measured at fair
value in the consolidated balance sheet and are categorised as level 3 in the
fair value hierarchy as defined in IFRS13 as one or more inputs to the
valuation are partly based on unobservable market data. In arriving at their
valuation for each property (as in prior years) both the independent external
valuers and the Directors have used the actual rent passing and have also
formed an opinion as to the two significant unobservable inputs being the
market rental for that property and the yield (i.e. the discount rate) which a
potential purchaser would apply in arriving at the market value. Both these
inputs are arrived at using market comparables for the type, location and
condition of the property.
(D) Fixtures, equipment and motor vehicles
Cost Depreciation
£000 £000
At 1 July 2023 5,570 4,301
Additions 525 -
Depreciation - 348
At 30 June 2024 6,095 4,649
Net book value at 30 June 2024 1,446
At 1 July 2024 6,095 4,649
Additions 645 -
Disposals (135) (59)
Depreciation - 402
At 30 June 2025 6,605 4,992
Net book value at 30 June 2025 1,613
8. Investments in joint ventures
2025 2024
£000 £000
At the start of the year 4,752 7,123
Valuation movement on investment properties - (3,200)
Share of post-tax profits from joint ventures before valuation movements 1,057 1,025
Distributions (173) (196)
At the end of the year 5,636 4,752
The full amount of investments in joint ventures relates to an equity
investment in Merrion House LLP.
Merrion House LLP owns a long leasehold interest over a property that is let
to the Group's joint venture partner, Leeds City Council ('LCC'). The interest
in the joint venture for each partner is an equal 50% share, regardless of the
level of overall contributions from each partner. The investment property held
within this partnership has been externally valued by CBRE at each reporting
date.
The assets and liabilities of Merrion House LLP for the current and previous
year are as stated below:
2025 2024
£000 £000
Non-current assets 55,050 55,050
Cash and cash equivalents 274 602
Receivables and prepayments 1,028 -
Trade and other payables (1,217) (594)
Current financial liabilities (1,839) (1,777)
Non-current financial liabilities (42,024) (43,776)
Net assets 11,272 9,505
The losses of Merrion House LLP for the current and previous year are as
stated below:
2025 2024
£000 £000
Revenue 3,674 3,674
Expenses (10) (13)
Finance costs (1,551) (1,611)
Valuation movement on investment properties - (6,400)
Net loss 2,113 (4,350)
The joint venture has no significant contingent liabilities to which the Group
is exposed nor has the Group any significant contingent liabilities in
relation to its interest in the joint venture.
9. Investments
2025 2024
£000 £000
Current Assets
Loan notes - Deferred Consideration - 3,177
- 3,177
Non-Current Assets
Listed investments 2,599 3,305
Non-Listed investments 660 660
3,259 3,965
3,259 7,142
Listed investments
2025 2024
£000 £000
At start of the year 3,305 4,068
Decrease in value of investments (706) (763)
At the end of the year 2,599 3,305
Listed investments relate to an equity shareholding in a company listed on the
London Stock Exchange. This is stated at market value in the table above and
has a historic cost of £875,000 (2024: £875,000).
Listed investments are measured at fair value in the consolidated balance
sheet and are categorised as level 1 in the fair value hierarchy as defined in
IFRS13 as the inputs to the valuation are based on quoted market prices.
The maximum risk exposure at the reporting date is the fair value of the
investments.
Non-listed investments
2025 2024
£000 £000
At the start of the year 660 410
Additions - 250
At the end of the year 660 660
The Non-listed investments are categorised as level 3 in the fair value
hierarchy as defined in IFRS 13 as the inputs to the valuation are based on
unobservable inputs.
Loan Notes - Deferred Consideration
2025 2024
£000 £000
Current assets
At the start of the year 3,177 4,493
Transferred from non- current assets - 3,025
Loan interest 5 158
Expenses (87) (122)
Amounts received at maturity (3,095) (4,377)
- 3,177
Non-Current assets
At the start of the year - 3,025
Loan notes issued to the Company in the period - -
Loan interest - -
Transferred to current assets - (3,025)
- -
The interest earned on the deferred consideration loan notes is 5% per annum.
The current element of deferred consideration was received by the Company in
July 2024.
The deferred consideration loan notes are accounted for using the amortised
cost basis and are assessed for impairment under the IFRS 9 expected credit
loss model.
Loan Notes - Contingent Consideration
2025 2024
£000 £000
At the start of the year - 1,943
Unwinding of the discount applied to contingent consideration - 32
Valuation movement - 408
Expenses - (102)
Amounts received at maturity - (2,281)
- -
The contingent consideration loan notes were initially recognised at fair
value, based on the estimated performance of YPS in the 14 month period ended
October 2023. This is an estimate prepared by the Company. The contingent
consideration loan notes are then accounted for using the fair value through
profit and loss basis. Following completion of the sale of its investment in
YPS, the Company did not have access to regular YPS management information,
however it did receive ad hoc updates. The valuation of the contingent
consideration at 30 June 2023 was based on the performance of YPS for the
period ended 30 June 2023 and assumed no further growth in the remaining four
months of the earnout period.
At 30 June 2023 these loan note assets were categorised as level 3 in the fair
value hierarchy as defined in IFRS 13 as the inputs to the valuation were
based on unobservable inputs.
10. Deferred tax assets and liabilities
2025 2024
Restated
£000 £000
Assets
Carried forward losses 718 1,685
IFRS 16 lease liabilities 7,373 8,176
8,091 9,861
Liabilities
IFRS 16 right-of-use assets 5,223 5,713
Investment property and freehold car park revaluation gains 1,929 1,065
7,152 6,778
Net deferred tax asset 939 3,083
The Company left the REIT regime with effect from 1 July 2023, therefore the
profits of the Company and the Group are now subject to corporation tax. This
has resulted in the recognition of a deferred tax asset, primarily relating to
trading losses from previous periods that are available to offset taxation on
future profits. In assessing the recognition of a deferred tax asset with
respect to losses, management has first reviewed the type of losses, the
period in which they arose and then the future profitability of the group or,
where relevant, individual corporate entities.
The Group also has various non-trading losses and surplus management expenses
from previous periods, however the associated deferred tax assets have not
been recognised as there is insufficient evidence to show that their future
utilization is probable.. The total value of losses not included within the
deferred tax asset is £1,328,000 (2024: £1,328,000).
In addition the Group has uncrystallized capital losses of £32,246,000 (2024:
£24,282,000) on investment property and car park valuation losses that have
not been recognised.
The total net deferred tax balance as at 30 June 2025 comprises the charge to
the Consolidated Income Statement of £2,381,000 (2024: credit of £3,319,000)
less the reduction in deferred tax liabilities arising in the year on
revaluation movements recognised in the Consolidated Statement of
Comprehensive Income of £178,000 (30 June 2024: charge of £236,000).
11. Called up share capital
Authorised
The authorised share capital of the company as at 30 June 2025 is 164,879,000
(2024: 164,879,000) Ordinary Shares of 25p each. The nominal value of
authorised share capital at that date is £41,219,750 (2024: £41,219,750).
Issued and fully paid up
Number Nominal value
of shares
000 £000
At 30 June 2024 42,163 10,540
Purchase and cancellation of own shares - -
At 30 June 2025 42,163 10,540
The Company has only one type of Ordinary Share class in issue. All shares
have equal entitlement to voting rights and dividend distributions.
At the year end the Company had authority to buy back for cancellation a
further 6,324,402 Ordinary Shares.
12. Cash flows from operating activities
2025 2024
Restated
£000 £000
Loss before tax (1,065) (12,143)
Adjustments for:
Depreciation 2,095 2,199
Amortisation 186 205
Profit on disposal of fixed assets (55) -
Profit on disposal of investment properties - (27)
Profit on disposal of freehold and leasehold properties (1,762) -
Loss on disposal of investments 87 191
Valuation movement on investments - (408)
Finance costs 7,423 7,209
Finance income (18) (166)
Share of post tax (profits)/losses from joint ventures (1,057) 2,175
Valuation movement on investment properties 2,214 7,625
Movement in tenant lease incentives (147) 380
Impairment of car parking assets 2,697 4,804
Impairment of goodwill 772 577
Decrease/(increase) in receivables 193 (731)
(Decrease)/increase in payables (2,092) 704
Cash generated from operations 9,471 12,594
13. Net asset value per share
The Basic and diluted net asset per share values are the same, as set out in
the table below.
2025 2024
Restated
£000 £000
Net assets at 30 June 112,302 117,444
Shares in issue (000) 42,163 42,163
Basic and diluted net asset value per share 266p 279p
14. Restatement of prior year figures
During the year the Directors identified that one of the Group's accounting
policies was not applied correctly. For this reason prior year figures have
been restated and the details are summarised below:
1) Adjustment of right of use lease liabilities following the settlement
of index linked rent reviews `
The Group operates a number of car parks from leasehold properties (right of
use assets) under index-linked lease agreements. Under the relevant accounting
standards the lease liabilities associated with these car parks should be
updated every time a rent review is settled, a corresponding adjustment to the
right of use asset should also be recognised and then assessed for any
impairment. The prior year comparatives have been restated to:
· Recognise an increase to lease liabilities of £3,408,000 and
£4,104,000 as at 30 June 2023 and 2024.
· Recognise an increase to right of use assets of £1,043,000 and
£1,180,000 as at 30 June 2023 and 2024.
· Recognise a reduction in retained earnings of £2,365,000 and
£2,193,000 as at 30 June 2023 and 2024.
· Recognise a reduction in property expenses of £199,000, an
additional impairment of car park assets of £619,000 and an additional
finance charge of £139,000 in the year ended 30 June 2024.
· Recognise a taxation credit of £731,000 resulting from the
adjustments brought forward at 30 June 2023 and the further adjustments
recognised in the year ended 30 June 2024 within the Consolidated income
statement for the year ended 30 June 2024.
· Recognise the impact on cashflow statement line items.
The impact on the Balance Sheet as at 30 June 2024 is as follows:
2024 (1) 2024
Previously reported Car parking lease liabilities and right of use assets Restated
£000 £000 £000
Non-current assets
Property rental
Investment properties 180,977 - 180,977
Investments in joint ventures 4,752 - 4,752
185,729 - 185,729
Car park activities
Freehold and leasehold properties 56,823 1,180 58,003
Goodwill and intangible assets 2,892 - 2,892
59,715 1,180 60,895
Hotel Operations
Freehold and leasehold properties 9,900 - 9,900
9,900 - 9,900
Fixtures, equipment and motor vehicles 1,446 - 1,446
Investments 3,965 - 3,965
Deferred tax assets 2,352 731 3,083
Total non-current assets 263,107 1,911 265,018
Current assets
Trade and other receivables 3,996 - 3,996
Cash and cash equivalents 22,152 - 22,152
Investments 3,177 - 3,177
Total current assets 29,325 - 29,325
Total assets 292,432 1,911 294,343
Current liabilities
Trade and other payables (13,425) - (13,425)
Bank overdrafts (20,760) - (20,760)
Financial liabilities (1,768) - (1,768)
Total current liabilities (35,953) - (35,953)
Non-current liabilities
Financial liabilities (136,842) (4,104) (140,946)
Total liabilities (172,795) (4,104) (176,899)
Net assets 119,637 (2,193) 117,444
Equity attributable to the owners of the Parent
Called up share capital 10,540 - 10,540
Share premium account 200 - 200
Capital redemption reserve 3,309 - 3,309
Revaluation reserve 4,184 - 4,184
Retained earnings 101,404 (2,193) 99,211
Total equity 119,637 (2,193) 117,444
The impact on the Balance Sheet as at 30 June 2023 is as follows:
2023 (1) 2023
Previously reported Car parking lease liabilities and right of use assets Restated
£000 £000 £000
Non-current assets
Property rental
Investment properties 183,801 - 183,801
Investments in joint ventures 7,123 - 7,123
190,924 - 190,924
Car park activities
Freehold and leasehold properties 60,791 1,043 61,834
Goodwill and intangible assets 3,674 - 3,674
64,465 1,043 65,508
Hotel Operations
Freehold and leasehold properties 9,500 - 9,500
9,500 - 9,500
Fixtures, equipment and motor vehicles 1,269 - 1,269
Investments 7,503 - 7,503
Total non-current assets 273,661 1,043 274,704
Current assets
Trade and other receivables 3,264 - 3,264
Cash and cash equivalents 23,320 - 23,320
Investments 6,436 - 6,436
Total current assets 33,020 - 33,020
Total assets 306,681 1,043 307,724
Current liabilities
Trade and other payables (12,387) - (12,387)
Bank overdrafts (21,700) - (21,700)
Financial liabilities (4,665) - (4,665)
Total current liabilities (38,752) - (38,752)
Non-current liabilities
Financial liabilities (126,841) (3,408) (130,249)
Total liabilities (165,593) (3,408) (169,001)
Net assets 141,088 (2,365) 138,723
Equity attributable to the owners of the Parent
Called up share capital 12,113 - 12,113
Share premium account 200 - 200
Capital redemption reserve 1,736 - 1,736
Revaluation reserve 2,784 - 2,784
Retained earnings 124,255 (2,365) 121,890
Total equity 141,088 (2,365) 138,723
The impact on the income statement is as follows:
2024 (1) 2024
Previously reported Car parking lease liabilities and right of use assets Restated
£000 £000 £000
Gross revenue 28,983 - 28,983
Service charge income 2,985 - 2,985
Gross revenue 31,968 31,968
Service charge expenses (3,982) - (3,982)
Property expenses (11,821) 199 (11,622)
Net revenue 16,165 199 16,364
Administrative expenses (7,293) - (7,293)
Other income 965 - 965
Valuation movement on investment properties (7,625) - (7,625)
Impairment of car parking assets (3,259) (619) (3,878)
Impairment of goodwill (577) (577)
Loss on disposal of investments (191) (191)
Valuation movement on investments 408 408
Profit on disposal of investment properties 27 - 27
Share of post-tax losses from joint ventures (2,175) - (2,175)
Operating loss (3,555) (420) (3,975)
Finance costs (7,209) (139) (7,348)
Finance income 166 166
Loss before taxation (10,598) (559) (11,157)
Taxation 2,588 731 3,319
Loss for the year attributable to owners of the Parent (8,010) 172 (7,838)
The impact on the cash flow statement is as follows:
2024 (1)
Previously reported Car parking lease liabilities and right of use assets 2024
Restated
£000 £000 £000
Loss for the financial year (10,598) (1,545) (12,143)
Adjustments for:
Depreciation 2,199 - 2,199
Amortisation 205 - 205
Profit on disposal of investment properties (27) - (27)
Loss on sale of investments 191 - 191
Movement in valuation of investments (408) - (408)
Finance costs 7,209 - 7,209
Finance income (166) - (166)
Share of post tax losses from joint ventures 2,175 - 2,175
Movement in valuation of investment properties 7,625 - 7,625
Movement in lease incentives 380 - 380
Impairment of car parking assets 3,259 1,545 4,804
Impairment of goodwill 577 - 577
Increase in receivables (731) - (731)
Increase in payables 704 - 704
Cash generated from operations 12,594 - 12,594
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