REG - Workspace Grp PLC - WORKSPACE GROUP PLC HALF YEAR RESULTS
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RNS Number : 0722I Workspace Group PLC 19 November 2025
19 November 2025
WORKSPACE GROUP PLC
HALF YEAR RESULTS
PERFORMANCE IN LINE WITH EXPECTATIONS, GOOD PROGRESS ON FIX, ACCELERATE AND
SCALE STRATEGY
Workspace Group PLC ("Workspace"), London's leading owner and operator of
sustainable, flexible work space today announces its results for the half year
to 30 September 2025. The comments in this announcement refer to the period
from 1 April 2025 to 30 September 2025 unless otherwise stated.
Commenting on the results, Lawrence Hutchings, Chief Executive Officer said:
"Following the launch of our Fix, Accelerate and Scale strategy in June, we
have made steady operational progress through the first half of the year in
what remains a challenging market. As expected, occupancy was lower in the
first half, but we are seeing encouraging signs that the actions we are taking
are positively impacting customer retention and conversion.
Our priority is to stabilise and rebuild occupancy. This is the foundation of
our plan - to drive growth in income and mitigate the costs of vacant space,
whilst recycling capital from low-conviction buildings. Our recently announced
strategic partnership with Qube to lease 32,000 sq. ft. of space at The Old
Dairy to build a new hub for content creators supports our focus on occupancy,
creating new sources of demand in adjacent industries and expanding our
addressable market. This partnership also aligns with our strategy to invest
in our high-conviction buildings.
We are actively recycling capital and have exchanged or completed on £52.4
million of disposals already this year as we accelerate the optimisation of
our portfolio by selling low-conviction buildings. We are on track to deliver
on our target of £200 million of disposals within two years.
We recognise there is still considerable work to do to achieve our ambitions
and regain our position as the flex market leader, but I remain positive and
excited about the opportunities in front of us. The benefit of our size and
spread across London, network of some 4,000 customers and our nearly 40-year
history in the sector gives me confidence we have the scale, momentum and
experience to deliver. The softer wider economy and current levels of
uncertainty are creating a tough operating environment in our market, which
means we are focused on increasing market share and being sharper and more
agile operationally. We are laser focused on delivering the self-help measures
we have identified and pulling every lever within our control to maximise the
potential of our platform to generate income and deliver attractive,
dividend-led returns for investors."
Progress against strategy
· Fix - gaining traction on actions implemented to stabilise and
rebuild occupancy
o Enquiry to letting conversion: improved to 17% in October 2025 (H1 25/26:
16% and H1 24/25: 15%)
o Like-for-like(4) 12-month retention rate for customers in units less than
3,000 sq. ft.: 85% (March 2025: 83%)
o Lettings: 604 completed with a total rental value of £14.4m (H1 24/25:
603, with a total rental value of £19.4m)
o Two high-impact design pilot projects delivered, enhancing retention
o Delivered £2m in annualised cost efficiencies
o Appointed a Head of Revenue, a new Executive role to lead and strengthen
our efforts on existing customer retention and conversion of new customers
o 20-year, 32,000 sq. ft. lease agreement with Qube at The Old Dairy in
Shoreditch
· Accelerate - optimising our portfolio and platform in line with
conviction approach
o £52.4m of disposals exchanged or completed against our £200m two-year
target
o 12,000 sq. ft. of unit refurbishment and subdivision projects completed
· Scale - first innovative partnership to deliver accretive scale in
the future
o Acquired a minority equity stake in Qube for £3m, which will largely be
reinvested into the site's fitout - strategic partnership to expand
addressable market
Operational highlights
· Like-for-like(4) occupancy: down 2.5% in the half year to 80.0%, as
expected
· Like-for-like(4) rent per sq. ft. up 0.1% in the half year to £47.55
· Like-for-like(4) rent roll down 3.3% in the half year to £107.1m
Financial highlights
· Underlying net rental income(†)(1) flat at £58.6m (September 2024:
£58.6m), net rental income(†) down 3.0% (£1.8m) to £58.7m (September
2024: £60.5m) following disposals
· Trading profit after interest(†) down 6.4% to £30.6m (September
2024: £32.7m)
· Interim dividend per share maintained at 9.4p per share (September
2024: 9.4p)
· Like-for-like portfolio valuation down 3.0%(2) with a 2.3% decrease
in ERV per sq. ft. and equivalent yield coming in 17bps to 6.7%
· Total portfolio valuation of £2,276m, an underlying(2) reduction of
4.0% (£96m) from 31 March 2025 (September 2024: underlying(2) reduction of
0.8%)
· Loss before tax of £71.1m, reflecting the movement in the property
valuation (September 2024 profit before tax: £10.2m)
· EPRA net tangible assets per share(†) down 6.8% to £7.21 (March
2025: £7.74)
· Robust balance sheet with £167m of cash and undrawn facilities
(March 2025: £260m) and LTV(†) at 36% (March 2025: 34%)
· Average cost of debt(3) over the last six months to 30 September was
3.8% with 82% of current debt at fixed rates
· In November, the maturity of £215m of bank facilities was extended
by one year
Summary Results
September September Change
2025 2024
Financial performance
Net rental income(†) £58.7m £60.5m -3.0%
Trading profit after interest(†) £30.6m £32.7m -6.4%
(Loss)/profit before tax (£71.1m) £10.2m
Interim dividend per share 9.4p 9.4p -
September March Change
2025 2025
Valuation
EPRA net tangible assets per share(†) £7.21 £7.74 -6.8%
Property valuation(†) £2,276 £2,368m -4.0%(2)
Financing
Loan to value(†) 36% 34%
Undrawn bank facilities and cash £167m £260m
† Alternative performance measure (APM). The Group uses a number of
financial measures to assess and explain its performance. Some of these which
are not defined within IFRS are considered APMs.
(1) Underlying change adjusted for disposals.
(2) Underlying change excluding capital expenditure and disposals.
(3) After amortisation of issue costs and commitment fees.
(4) Restated for the transfer in of Barley Mow, Chiswick, Pall Mall Deposit,
Ladbroke Grove and the development part of The Light Bulb, Wandsworth, where
occupancy is now stabilised post refurbishment and the transfer out of Morie
Street, Wandsworth (sold) and Castle Lane, Victoria (exchanged).
For media and investor enquiries, please contact:
Workspace Group 020 7138 3300
PLC
Paul Hewlett, Director of Strategy & Corporate Development
Clare Marland, Head of Corporate Communications
FGS Global 020 7251 3801
Chris Ryall
Guy Lamming
Details of results presentation
Workspace will host a results presentation for analysts and investors on
Wednesday, 19 November 2025 at 10:30am. The venue for the presentation is
Eventspace, at Salisbury House, 114 London Wall, EC2M 5QA.
The presentation can also be accessed live via webcast at the following link:
https://secure.emincote.com/client/workspace/workspace028
(https://url.uk.m.mimecastprotect.com/s/_fwqCzpANfMRDw7I4fAu92H0L?domain=secure.emincote.com)
Notes to Editors
About Workspace Group PLC:
Workspace is London's leading owner and operator of flexible workspace,
currently managing 4.2 million sq. ft. of sustainable space at 64 locations in
London and the South East.
We are home to some 4,000 of London's fastest growing and established brands
from a diverse range of sectors. Our purpose, to give businesses the freedom
to grow, is based on the belief that in the right space, teams can achieve
more. That in environments they tailor themselves, free from constraint and
compromise, teams are best able to collaborate, build their culture and
realise their potential.
We have a unique combination of a highly effective and scalable operating
platform, a portfolio of distinctive properties, and an ownership model that
allows us to offer true flexibility. We provide customers with blank canvas
space to create a home for their business, alongside leases that give them the
freedom to easily scale up and down within our well-connected, extensive
portfolio.
We are inherently sustainable - we invest across the capital, breathing new
life into old buildings and creating hubs of economic activity that help
flatten London's working map. We work closely with our local communities to
ensure we make a positive and lasting environmental and social impact,
creating value over the long term.
Workspace was established in 1987, has been listed on the London Stock
Exchange since 1993, is a FTSE 250 listed Real Estate Investment Trust (REIT)
and a member of the European Public Real Estate Association (EPRA).
Workspace® is a registered trademark of Workspace Group PLC, London, UK.
LEI: 2138003GUZRFIN3UT430
For more information on Workspace, visit www.workspace.co.uk
(http://www.workspace.co.uk)
BUSINESS REVIEW
CUSTOMER ACTIVITY
We are operating in a softer economy, and we are seeing some customers defer
decisions amidst considerable uncertainty in the lead-up to the Autumn Budget.
Alongside the summer holidays and tube strikes in September, the tough
operating environment has impacted demand, with average monthly enquiries down
in the first half.
Against this backdrop, the self-help measures we are implementing at pace in
the Fix part of our strategy are more important than ever and our efforts have
delivered improved conversion of enquiries to lettings, up 1% year-on-year to
16%. Thanks to the relevance of our offer to London's creative and innovative
SMEs, ongoing improvements we are making to our product and a pragmatic
approach to pricing, we completed 604 lettings in the half year with a total
rental value of £14.4m.
Monthly Average Monthly Activity
H1 H1 FY 30 Sep 31 Aug 31 Jul
2025/26 2024/25 2024/25 2025 2025 2025
Enquiries 650 694 703 699 565 733
Viewings 507 492 507 504 458 596
Lettings 101 101 106 127 109 90
The strong conversion we saw in September has continued into the third
quarter, with 708 enquiries, 540 viewings and 119 lettings in October 2025,
and conversion improving further to 17%.
RENT ROLL
Total rent roll, representing the total annualised net rental income at a
given date, was down 3.9% (£5.4m) in the six months to £134.0m at 30
September 2025.
Total Rent Roll £m
At 31 March 2025 139.4
Like-for-like portfolio (3.6)
Completed Projects 0.3
Projects underway and design stage (0.4)
South East offices (0.2)
Disposals (1.4)
Other (0.1)
At 30 September 2025 134.0
The total Estimated Rental Value (ERV) of the portfolio, comprising the ERV of
the like-for-like portfolio and those properties currently undergoing
refurbishment or redevelopment (but only including properties at the design
stage and non-core properties at their current rent roll and occupancy), was
£184.7m at 30 September 2025.
Like-for-like portfolio
The like-for-like portfolio represents 80% of the total rent roll as at 30
September 2025. It comprises 39 properties with stabilised occupancy excluding
recent acquisitions, buildings impacted by significant refurbishment or
redevelopment activity, or contracted for sale.
Six Months Ended
Like-for-Like 30 Sep 25 31 Mar 25(1) 30 Sep 24(1)
Occupancy 80.0% 82.5% 83.7%
Occupancy change(2) (2.5%) (1.2%) (3.7%)
Rent per sq. ft. £47.55 £47.52 £46.55
Rent per sq. ft. change 0.1% 2.1% 2.8%
Rent roll £107.1m £110.7m £109.6m
Rent roll change (3.3%) 1.0% (1.6%)
( )
(1) Restated for the transfer in of Barley Mow, Chiswick, Pall Mall Deposit,
Ladbroke Grove and the development part of The Light Bulb, Wandsworth, where
occupancy is now stabilised post refurbishment and the transfer out of Morie
Street, Wandsworth (sold) and Castle Lane, Victoria (exchanged).
(2) Absolute change
Like-for-like occupancy was down by 2.5% in the half year to 80.0%, with an
overall decrease in like-for-like rent roll of 3.3% (£3.6m) to £107.1m. As
stated previously, we expected to see a decline in like-for-like occupancy in
the first half, mainly due to the impact of two large customers vacating their
units in the second quarter at The Centro Buildings in Camden, in particular
Win Technologies who vacated 43,000 sq. ft. These two vacations account for
1.7% of the reduction in occupancy.
We have continued to prioritise retention through empowering our centre teams
and delivering fast improvements to our product and experience, in line with
feedback from customers. Our recent marketing campaign helped to support new
customer acquisition, driving a 22% uplift in viewers booked via our website
during the campaign period compared to the prior three-year average for the
same period. In addition, we are taking a pragmatic approach to pricing, with
like-for-like rent per sq. ft. stable in the quarter at £47.55.
We completed the first phase of our capital-light refurbishment pilot projects
at The Leather Market and Vox Studios in the first half, aimed at growing rent
roll at these buildings through increased occupancy. While it will take time
to see the full impact of the changes, feedback from existing customers and
new prospects has been very positive. NPS is up significantly at both
buildings and occupancy and rent roll have increased at Vox Studios, while The
Leather Market has been impacted by a large customer unit repossession. We are
now in the early stages of rolling the pilot out to other sites, with designs
being drawn up for two high-conviction buildings, China Works in Vauxhall and
Cargo Works in Waterloo.
As noted above, we are taking a pragmatic approach to pricing with ERV per sq.
ft. decreasing by 2.3% in the half year. If all the like-for-like properties
were at 90% occupancy at the CBRE and Knight Frank estimated rental values at
30 September 2025, the rent roll would be £125.8m, £18.7m higher than the
actual rent roll at 30 September 2025.
Completed Projects
There are five projects in the completed projects category. Rent roll
increased overall by £0.3m in the six months to £4.6m.
If the buildings in this category were all at 90% occupancy at the ERVs at 30
September 2025, the rent roll would be £9.0m, an uplift of £4.4m.
Projects Underway - Refurbishments
We are currently underway on 7 refurbishment projects that will deliver
310,000 sq. ft. of new and upgraded space. As at 30 September 2025, rent roll
was £12.3m, down £0.4m in the last six months.
Assuming 90% occupancy at the ERVs at 30 September 2025, the rent roll at
these 7 buildings once they are completed would be £20.4m, an uplift of
£8.1m.
Projects at Design Stage
These are properties where we are well advanced in planning a refurbishment or
redevelopment that has not yet commenced. As at 30 September 2025, the rent
roll at these two properties was £2.6m, in line with 31 March 2025.
South East Office
As at 30 September 2025, the rent roll of the South East office portfolio,
comprising eight buildings, was down £0.2m to £6.8m.
Assuming 90% occupancy (or current occupancy if higher) at the ERVs at 30
September 2025, the rent roll would be £8.6m, an uplift of £1.8m.
Non-core
As at 30 September 2025, the rent roll of the non-core portfolio, comprising
three properties, was £0.6m, down £0.1m.
Disposals
In line with our conviction approach to capital recycling, we exchanged and
completed on the sale of Q West in Brentford for £10.3m, in line with the
March 2025 valuation and at a net initial yield of 5.9%.
In July, we completed on the sale of The Shaftesbury Centre, Ladbroke Grove
for £4.7m, 3.3% above the March 2025 valuation with a net initial yield of
6.2%.
In August, we exchanged and completed on the sale of Morie Street Studios,
Wandsworth for £8.1m and completed the sale of Chocolate Factory (Part) -
Block E1, Wood Green for £2.2m with a combined net initial yield of 3.8% and
3.5% below the March 2025 valuations.
In September, we exchanged on the sale of Castle Lane, Victoria for £14.3m,
4.3% below the March 2025 valuation with a net initial yield of 4.0%.
A further £13.0m of exchanged disposals are expected to complete within the
next 12 months, and we will continue to dispose of low-conviction assets
throughout the year with a further £67.8m of assets under offer which are
included in held for sale.
We received a total of £26.2m in cash during the first half of the year from
the completions of non-core disposals (net of sale costs).
PROFIT PERFORMANCE
Trading profit after interest for the half year was down 6.4% (£2.1m) on the
first half of the prior year to £30.6m.
£m 30 Sep 30 Sep
2025 2024
Underlying rental income 67.3 66.8
Unrecovered service charge costs (1.9) (2.8)
Empty rates and other non-recoverable costs (6.0) (5.4)
Services, fees, commissions and sundry income (0.8) -
Underlying net rental income 58.6 58.6
Disposals 0.1 1.9
Net rental income 58.7 60.5
Administrative expenses - underlying (10.3) (10.9)
Administrative expenses - share based costs(1) (1.4) (1.5)
Net finance costs (16.4) (15.4)
Trading profit after interest 30.6 32.7
( )
(1) These relate to both cash and equity settled costs
Underlying rental income increased £0.5m to £67.3m with underlying net
rental income flat at £58.6m.
Unrecovered service charge costs decreased by £0.9m, while empty rates and
other non-recoverable costs increased slightly reflecting the fall in
occupancy, which also impacted net revenue from services, fees, commissions
and sundry income.
Total net rental income was down £1.8m following the disposals made over the
last year.
Underlying administrative expenses decreased by £0.6m to £10.3m, after the
streamlining of support functions where annualised savings of £2m have been
delivered. Share-based costs decreased by £0.1m to £1.4m.
Net finance costs increased by £1.0m to £16.4m in the half year, reflecting
the decrease in capitalised interest following the completion of Leroy House
in October 2024 and an increase in average interest rate following repayment
of £80m of 3.3% private placement notes in August 2025. The average net debt
balance in the period was £6m lower than the first six months of the prior
year, whilst the average interest cost increased from 3.6% to 3.8%.
Loss before tax was £71.1m compared to a £10.2m profit in the prior year.
£m 30 Sep 30 Sep
2025 2024
Trading profit after interest 30.6 32.7
Change in fair value of investment properties (95.6) (20.3)
Loss on sale of investment properties (1.6) (1.1)
Other costs (4.5) (1.1)
(Loss)/profit before tax (71.1) 10.2
Adjusted underlying earnings per share 15.8p 16.9p
The change in fair value of investment properties, including assets held for
sale, was a decrease of £95.6m compared to a decrease of £20.3m in the prior
year.
The loss on sale of investment properties of £1.6m was driven by sales being
at a small discount to the March 2025 valuation and costs associated with
disposals in the first half.
Other costs include one-off items relating to the implementation of our new
CRM systems and streamlining of our support functions.
Adjusted underlying earnings per share, based on EPRA earnings calculated on a
diluted share basis, was down 1.1p to 15.8p. The calculation of adjusted,
basic, diluted and EPRA earnings per share is shown in note 7 to the financial
statements.
INTERIM DIVIDEND
Our dividend policy is based on trading profit after interest, taking into
account our investment and acquisition plans and the distribution requirements
that we have as a REIT, recognising the importance to our shareholders of
paying a regular, growing dividend, whilst ensuring the total dividend per
share in each financial year is fully covered by adjusted underlying earnings
per share.
Based on the trading performance in the first half and confidence in the
longer-term prospects of the Company, the Board is pleased to announce that
this year an interim dividend of 9.4p per share (2024: 9.4p) will be paid on 2
February 2026 to shareholders on the register at 9 January 2026. The dividend
will be paid as a normal dividend (not a REIT Property Income Distribution).
PROPERTY VALUATION
At 30 September 2025, our property portfolio was independently valued by CBRE
and Knight Frank at £2,276m, an underlying decrease of 4.0% (£96m) in the
half year. The main movements in the valuation are set out below:
£m
Valuation at 31 March 2025 2,368
Capital expenditure 29
Disposals (25)
Revaluation (96)
Valuation at 30 September 2025 2,276
A summary of the half year valuation and revaluation movement by property type
is set out below:
£m Valuation Movement
Like-for-like properties 1,768 (55)
Completed projects 127 (10)
Refurbishments 287 (20)
South East office 66 (10)
Non-core 28 (1)
Total 2,276 (96)
Like-for-like Properties
There was a 3.0% (£55m) underlying decrease in the valuation of like-for-like
properties to £1,768m. This was driven by lower occupancy with a 2.3%
decrease in the ERV per sq. ft. offset by a 17bps inward shift in equivalent
yield.
We saw less of a decrease in ERV per sq. ft. for smaller space, which
represents the majority of our letting activity, with a decrease of 0.7% in
the half year for units under 1,000 sq. ft., compared to larger spaces where
the decrease in ERV per sq. ft. was 3.6%. This reflects our approach to
implement a wide range of smaller unit refurbishments and subdivisions to
align our spaces with customer demand.
30 Sep 31 Mar
2025 2025(1) Change
ERV per sq. ft. £49.14 £50.29 -2.3%
Rent per sq. ft. £47.55 £47.52 0.1%
Equivalent yield 6.7% 6.9% -0.2%(2)
Net initial yield 5.5% 5.6% -0.1%(2)
Capital value per sq. ft. £622 £637 -2.4%
( )
(1) Restated for the transfer in of Barley Mow, Chiswick, Pall Mall Deposit,
Ladbroke Grove and the development part of The Light Bulb, Wandsworth, where
occupancy is now stabilised post refurbishment and the transfer out of Morie
Street, Wandsworth (sold) and Castle Lane, Victoria (exchanged).
(2) Absolute change
A 2.5% increase in ERV would increase the valuation of like-for-like
properties by approximately £44m whilst a 25bps decrease in equivalent yield
would increase the valuation by approximately £67m.
Completed Projects
The underlying value of the five completed projects decreased by 7.3% (£10m).
This was driven by a 2bps outward shift in equivalent yield and a 4.2%
decrease in the ERV per sq. ft. The overall valuation metrics for completed
projects are set out below:
30 Sep
2025
ERV per sq. ft. £34.53
Rent per sq. ft. £27.78
Equivalent yield 6.7%
Net initial yield 3.3%
Capital value per sq. ft. £443
Current Refurbishments
There was an underlying decrease of 6.5% (£20m) in the value of our current
refurbishments to £307m.
The decreases in respect of refurbishments were driven by lower pricing
expectations, yield expansion and increased costs.
South East Office
There was a 13.2% (£10m) underlying decrease in the valuation of the South
East office portfolio to £66m, with a 48bps outward shift in equivalent yield
and a 5.5% decrease in ERV per sq. ft. The overall valuation metrics are set
out below:
30 Sep
2025
ERV per sq. ft. £27.01
Rent per sq. ft. £23.88
Equivalent Yield 10.6%
Net Initial Yield 9.4%
Capital Value per sq. ft. £197
REFURBISHMENT ACTIVITY
A summary of the status of the refurbishment pipeline at 30 September 2025 is
set out below:
Projects Number Capex spent Capex to spend Upgraded and new space (sq. ft.)
Underway 7 £46m £16m 310,000
Activity is ongoing at our major refurbishment projects; The Biscuit Factory
in Bermondsey, which will deliver 38,500 sq. ft. of additional space towards
the end of 2025, and The Centro Buildings in Camden, where we are transforming
a traditional office building, Atelier House, into a Workspace business centre
with 41 units, a café and meeting rooms. Marketing has now started for the
units at Atelier House.
SUSTAINABILITY
Our long-standing commitment to delivering a sustainable property portfolio
addresses both operational performance and sustainable construction practices.
Our refurbishment-led approach allows us to limit the use of new materials and
results in projects achieving up to 40% less GHG emissions than best-practice
industry benchmarks. Our continuous efforts to optimise our operational energy
efficiency means that the average energy intensity of our portfolio is 15%
lower than the 2030 target for net zero carbon offices set at 90kWhe/m(2*). In
the last six months, we have achieved a 3% reduction in portfolio-wide energy
use intensity and will maintain our efforts to further improve the energy
efficiency of our buildings to ensure we stay on track with our net zero
carbon trajectory.
The Workspace portfolio is currently 61.4% EPC A and B rated, an increase of
2% in the half year, as part of future-proofing our portfolio against the
expected regulatory requirement for all commercial buildings to be EPC A/B
rated by 2030. We also continue to procure 100% renewable electricity, with
two-thirds of this demand being met via our power purchase agreement with a
solar farm in Devon.
To ensure our decarbonisation trajectory is aligned with the latest climate
science, we have updated our net zero carbon commitment earlier this year and
became the first UK REIT to adopt the latest building sector guidance
published by the Science-based Target Initiative. We have thus committed to
reducing our business-wide GHG emissions by 90% by 2040 against our 2020
baseline. As of last financial year, we had already reduced our emissions by
35% and have strong foundations in place to continue to drive climate action
at pace.
(*)https://ukgbc.org/wp-content/uploads/2020/01/UKGBC-Net-Zero-Carbon-Energy-Performance-Targets-for-Offices.pdf
(https://ukgbc.org/wp-content/uploads/2020/01/UKGBC-Net-Zero-Carbon-Energy-Performance-Targets-for-Offices.pdf)
CASH FLOW
A summary of cash flows is set out below:
£m 30 Sep 30 Sep
2025 2024
Net cash from operations after interest 27 32
Dividends paid (33) (35)
Capital expenditure (32) (28)
Property disposals and capital receipts 26 29
Other (1) 1
Net movement (13) (1)
Opening debt (net of cash) (820) (855)
Closing debt (net of cash) (833) (856)
There is a reconciliation of net debt in note 13(b) in the financial
statements.
Net debt increased by £13m in the half-year to £833m (31 March 2025:
£820m), following payment of the prior year final dividend, with capital
expenditure largely offset by disposal proceeds received.
NET ASSETS
Net assets decreased in the half year by £106m to £1,396m. EPRA net tangible
assets (NTA) per share at 30 September 2025 was down 6.8% (£0.53) to £7.21.
EPRA NTA per share
£
At 31 March 2025 7.74
Adjusted trading profit after interest 0.16
Property valuation deficit (0.49)
Dividends paid (0.19)
Other (0.01)
At 30 September 2025 7.21
The calculation of EPRA NTA per share is set out in note 8 of the financial
statements.
TOTAL ACCOUNTING RETURN
The total accounting return for the half year was (4.4%) compared to 0.5% in
the half year ended September 2024. The total accounting return comprises the
change in absolute EPRA net tangible assets per share plus dividends paid in
the year as a percentage of the opening EPRA net tangible assets per share.
The calculation of total accounting return is set out in note 8 of the
financial statements.
FINANCING
As at 30 September 2025, the Group had £1m of available cash and £166m of
undrawn facilities.
Drawn amount Facility Maturity
£m £m
Private placement notes 220.0 220.0 2027-2029
Green bond 300.0 300.0 2028
Secured loan 65.0 65.0 2030
Term Loan 80.0 80.0 2027
Bank facilities 169.0 335.0 2029
Total 834.0 1,000.0
The majority of the Group's debt comprises long-term fixed-rate committed
facilities including a £300m green bond, £220m of private placement notes,
and a £65m secured loan facility.
Shorter term liquidity and flexibility is provided by floating-rate
sustainability-linked Revolving Credit Facilities (RCFs) totalling £335m
which were £169m drawn as at 30 September 2025. In May 2025 the terms of the
£200m RCF were amended to extend the maturity to 30 June 2029, with options
to extend by up to a further two years and an option to increase the facility
amount to £300m, subject to lender consent. In November 2025, the maturity of
the £135m RCF and £80m term loan were extended by one year to 30 November
2029 and 30 November 2027 respectively. Both facilities have options to extend
by a further year, subject to lender consent. The proforma average debt
facility maturity following the extensions is 3.1 years (31 March 2025: 3.1
years).
In February 2024, £100m of the floating rate bank borrowings were swapped to
an all-in fixed rate of 6.1% for two years. At 30 September 2025, the Group's
effective interest rate was 4.1% based on SONIA at 3.97%, with 82% (£685m) of
the debt at fixed or hedged rates. The average interest cost of our fixed-rate
borrowings was 3.3% and our un-hedged floating-rate bank borrowings had an
average margin of 1.8% over SONIA. A 1% change in SONIA would change the
effective interest rate by 0.2% (at current debt levels).
At 30 September 2025, loan to value (LTV) was 36% (31 March 2025: 34%) and
interest cover, based on net rental income and interest paid over the last
12-month period, was 3.6 times (31 March 2025: 3.8 times), providing good
headroom on all facility covenants.
FINANCIAL Considerations FOR 2025/26
Looking forward to the second half of the year, the softer economy and ongoing
macroeconomic uncertainty is creating a tough operating environment which will
continue to impact our business. Lower opening rent roll and higher interest
costs, following the repayment of £80m of private placement notes in August,
will put pressure on trading profit, albeit this will be partly offset by the
impact of cost efficiencies implemented in the first half of the year.
Our efforts to stabilise and rebuild occupancy by empowering customer-facing
teams to improve retention and conversion of enquiries to lettings, enhancing
our product and taking a pragmatic approach to pricing are starting to bear
fruit. We are also expecting less pressure on occupancy from large customers
leaving in the second half of the year.
We expect capital expenditure for the full year to be maintained at a similar
level to last year, around £60m, as we complete the refurbishments of Atelier
House and The Biscuit Factory, alongside tactical capital-light refurbishments
to enhance our offering in conviction and high-conviction buildings. This will
be offset by recycled capital from asset disposals.
property statistics
Half Year ended
30 Sep 31 Mar 30 Sep 31 Mar
2025 2025 2024 2024
Workspace Portfolio
Property valuation £2,276m £2,368m £2,423m £2,446m
Number of locations 64 67 73 77
Lettable floorspace (million sq. ft.) 4.2 4.3 4.3 4.5
Number of lettable units 4,707 4,744 4,650 4,678
Rent roll of occupied units £134.0m £139.4m £140.1m £143.4m
Average rent per sq. ft. £41.91 £41.50 £40.27 £38.21
Overall occupancy 75.4% 78.5% 81.5% 83.0%
Like-for-like number of properties 39 39 39 43
Like-for-like lettable floor space (million sq. ft.) 2.8 2.7 2.7 2.9
Like-for-like rent roll growth (3.3%) 0.7% (1.6%) 3.0%
Like-for-like rent per sq. ft. growth 0.1% 2.0% 2.7% 3.4%
Like-for-like occupancy movement (2.5%) (1.2%) (3.8%) (0.4%)
1) The like-for-like category has been restated in the current financial
year for the transfer in of Barley Mow, Chiswick, Pall Mall Deposit, Ladbroke
Grove and the development part of The Light Bulb, Wandsworth, where occupancy
is now stabilised post refurbishment and the transfer out of Morie Street,
Wandsworth (sold) and Castle Lane, Victoria (exchanged).
2) Like-for-like statistics for prior years are not restated for the
changes made to the like-for-like property portfolio in the current financial
year.
3) Occupancy is the area of space let divided by the total net lettable
area (excluding land used for open storage) expressed as a percentage. Net
lettable area is the internal area of a building that is available to let.
4) Overall rent per sq. ft. and occupancy statistics includes the
lettable area at like-for-like properties and all refurbishment and
redevelopment projects, including those projects recently completed and also
properties where we are in the process of obtaining vacant possession.
PRINCIPAL RISKS
The Board assesses and monitors the principal risks of the business and
considers how these risks could best be mitigated, where possible, through a
combination of internal controls and risk management.
The financial year has seen continued risks to the UK economy with global
political instability, inflation and the ongoing disruption from tariffs
weakening consumer confidence and leaving macroeconomic conditions
challenging. This has led to softer demand and coincided with an increasing
supply of flexible space across London which means the challenges we face are
intensifying.
Overall, however, key risks that could affect the Group's medium-term
performance and the factors that mitigate these risks have not materially
changed from those set out in the Group's Annual Report and Accounts 2025.
These risks have been assessed in line with the 2024 UK Corporate Governance
Code requirements and are shown below. The Board is satisfied that we continue
to operate within our risk profile.
Risk Area Mitigating activities
Customer demand • Broad mix of buildings across London with different space
offerings, at various price points to match customer requirements.
Opportunities for growth could be missed without a clearly differentiated
brand positioning strategy and products to meet the evolving demands of target • Pipeline of refurbishment and redevelopments to further
customers. Macroeconomic factors, including global political instability and enhance the portfolio.
geopolitical tensions, weak economic growth, inflationary pressures, higher
interest rates, as well as increased supply of flexible space, could also • Enhanced market insight, segmentation, data and reporting to
impact our customers. track customer trends, optimise sales performance and develop new
propositions.
RISK IMPACT
• Improvements to product offer, including building design, more
• Fall in occupancy levels at our properties flexible terms and additional services and benefits to enhance the proposition
for both new and existing customers.
• Reduction in rent roll
• A pilot programme has been created to test our product and
• Reduction in property valuation trial design enhancements in a live environment, based on customer feedback.
• Increased accountability for centre staff to maintain ongoing
relationships with our customers, understand their requirements and implement
change to meet their needs.
• Business plans are stress tested to assess the sensitivity of
forecasts to reduced levels of demand and implement contingency measures.
• Targeted marketing creates demand for Workspace and drives
conversion to viewings, with advertising content and messaging regularly
reviewed and updated.
Financing • We regularly review funding requirements for business plans,
and we have a wide range of options to fund our forthcoming plans. We also
There may be a reduction in the availability of long-term financing due to a prepare a five-year business plan which is reviewed and updated annually.
deterioration in macroeconomic conditions, which could impact our ability to
fund the business and deliver services to customers. • We have a broad range of funding relationships in place and
regularly review our refinancing strategy.
RISK IMPACT
• We maintain a specific interest rate profile via the use of
• Inability to fund business plans and invest in new fixed rates on the majority of our debt facilities so that our interest
opportunities payment profile is broadly stable. We also had a £100m interest rate hedge in
place throughout the year to further fix our interest costs.
• Increased interest costs as we refinance long term fixed debt
• Negative reputational impact amongst lenders and in the • Loan covenants are monitored and reported to the Board on a
investment community monthly basis, and we undertake detailed cash flow monitoring and forecasting.
• In May 2025 the £200m Revolving Credit Facility (RCF) was
refinanced with an extended maturity of June 2029.
• In November 2025, we extended the maturity of the £135m RCF
to November 2029 and extended the maturity of the £80m term loan by a further
12 months to November 2027, providing further certainty over our funding
position going forwards.
Valuation • Market-related valuation risk is largely dependent on
independent, external factors. We maintain a conservative LTV ratio which can
Macroeconomic uncertainty, reductions in occupancy or pricing, or failure to withstand a severe decline in property values without covenant breaches.
meet ESG legislation targets could have an impact on asset valuations. With a
decrease in net income and ERV and an increase in property yield, valuations • We monitor changes in sentiment in the London real estate
fall. This may result in a reduction in return on investment and negative market, yields, and pricing to track possible changes in valuation. All of our
impact on covenant testing. properties are independently valued by leading full service real estate and
investment organisations and this marks the first half-year in which CBRE and
RISK IMPACT Knight Frank have jointly valued our portfolio.
• Financing covenants linked to loan to value ('LTV') ratio. • We manage and invest in our properties, planning and
undertaking upgrades where necessary, to ensure they are compliant with
• Impact on share price. current Minimum Energy Efficiency Standards (MEES) for EPCs.
• Alternative use opportunities, including mixed-use
developments, are actively pursued across the portfolio.
Acquisition pricing • We have an acquisition strategy determining key criteria such
as location, size and potential for growth. These criteria are based on the
Inadequate appraisal and due diligence of a new acquisition could lead to many years of knowledge and understanding of our market and customer demand.
paying above market price leading to a negative impact on valuation and rental
income targets. • A detailed appraisal is prepared for each acquisition and is
presented to the Investment Committee for challenge and discussion prior to
RISK IMPACT authorisation by the Board. The acquisition is then subject to thorough due
diligence prior to completion, including capital expenditure and risks
• Negative impact on valuation associated with ESG concerns.
• Impact on overall shareholder return • Workspace will only make acquisitions that are expected to
yield a minimum return and will not knowingly overpay for an asset.
• We undertake appropriate property, financial and tax due
diligence including a review of ESG when required.
Customer payment default • Rent collection and customer payment levels have remained
strong throughout the year, however the economic environment remains
Uncertainty remains around the macroeconomic environment. Although inflation challenging.
and interest rates have reduced during the period, given the broader
geopolitical climate and recent increases to living wage and national • The risk continues to be mitigated by strong credit control
insurance costs, there remains a risk of an economic downturn, which could put processes and an experienced team of credit controllers, able to make quick
pressure on rent collection figures. decisions and negotiate with customers for payment. In addition, we hold a
three-month deposit for the majority of customers.
RISK IMPACT
• Centre staff maintain relationships with customers and can
• Negative cash flow and increasing interest costs identify early signs of potential issues whilst receiving early sign of
default from credit control team.
• Breach of financial covenants
Cyber security • Cyber security risk is managed using a mitigation framework
comprising network security, IT security policies and third-party risk
A cyber-attack could lead to a loss of access to Workspace systems or a assessments. Controls are regularly reviewed and updated and include
network disruption for a prolonged period of time. This could damage technology such as next generation firewalls, multi layered access control
Workspace's reputation and inhibit our ability to run the business. through to people solutions such as user awareness training, mock-phishing
emails and cyber-attack simulations.
RISK IMPACT
• Assurance over the framework's performance is gained through
• Inability to process new leases and invoice customers an independent maturity assessment, penetration testing and network
vulnerability testing, all performed annually.
• Reputational damage
• We are committed to continue the adoption of the NIST
• Increased operational costs Cybersecurity Framework to enhance our cyber security maturity. This adoption
will strengthen risk management, improve controls, fortify incident response,
and ensure consistent protection and recovery, validated through external
independent assessments.
Culture • The strategy is currently in a transitional phase. We are
establishing a more empowered culture, with greater accountability for
Organisational culture and behaviours, and policies that fail to reflect core customer-facing teams, enabling them to act more quickly and drive
values, motivate teams or support strategic goals, could lead to lower performance. This means new ways of working across the business and greater
employee engagement and a risk to execution of strategy. inter-departmental collaboration.
RISK IMPACT
• Increased costs from high staff turnover • Our HR and People teams run a broad training and development
programme designed to ensure employees are supported and encouraged to
• Delay in growth plans progress with learning and study opportunities.
• Reputational damage • We have revised our internal application process for existing
employees with 15 individuals being internally promoted and 6 employees acting
up in role during this period.
• We continue to enhance internal communications and engagement
with employees through weekly CEO updates and regular 'town hall' meetings
including open Q&A.
• Incentive schemes align employee objectives with the strategic
objectives of the Group to motivate employees to work in the best interests of
the Group and its stakeholders. This is supported by a formal appraisal and
review process for all employees.
Third party relationships • Workspace has in place a robust tender and selection process
for key contractors and partners. Contracts contain service-level agreements
Poor performance from one of Workspace's key contractors or third-party that are monitored regularly, and actions are taken in the case of
partners could result in an interruption to or reduction in the quality of our underperformance.
service offering to customers or could lead to significant disruptions and
delays in any refurbishment or redevelopment projects. • For key services, Workspace maintains relationships with
alternative providers so that other solutions would be available if the main
RISK IMPACT contractor or third party was unable to continue providing their services.
Processes are in place to identify key suppliers and understanding any
• Decline in customer confidence specific risks that require further mitigation.
• Increased project or operational costs • Workspace remains committed to being London Living Wage
compliant for all service providers.
• Fall in customer demand
• Weaker cash flow
• Reputational damage
Regulatory • Health and safety is one of our primary concerns, and strong
leadership promotes a culture of awareness throughout the business. We have
A failure to keep up to date and plan for changing regulations in key areas well-developed policies and procedures in place to help ensure that any
such as health and safety and sustainability, could lead to fines or workers, employees, or visitors on site comply with strict safety guidelines,
reputational and we work with well-respected suppliers who share our high-quality standards
in health and safety.
damage
We have a Health and Safety Manager to support our commitment to Health and
RISK IMPACT Safety throughout the business.
• Increased costs • Health and safety management systems are updated in line with
changing regulations and regular audits are undertaken to identify any
• Reputational damage potential improvements.
• Sustainability requirements are becoming increasingly
important for the Group, and we take this responsibility seriously. We have
committed to becoming a net zero carbon business and being climate resilient.
We undertake an annual review of all ESG regulations and our policies and
procedures to ensure compliance. We also closely monitor and manage physical
risk arising from climate change along with a mitigation strategy.
• Workspace has a robust legal framework in place, managed by
the Company Secretary and external legal advisers, to ensure full compliance
with applicable laws, regulations, and corporate governance.
Climate change • The inherent risk from climate change is universal, with a
high likelihood of risk materialising in the near future resulting in a
Failure to recognise that climate change presents a financial risk to our potentially material impact on businesses in general. For Workspace, our risk
business, alongside our customers' increasing expectations is lower when compared to many other real estate businesses, in particular our
for the sustainable operation of our properties, exposure to physical risk. However, transition risk is an industry-wide risk
could have a significant impact on the business. and is impacting all real estate businesses due to the environmental impact
associated with the sector. As a result, the regulatory requirements continue
RISK IMPACT to address the high impact associated construction and operations of
buildings. In response to this, Workspace has been proactively managing its
• Loss of rent roll risk exposure. Our mitigation strategy includes:
• Negative impact on value • Periodic assessment of our climate risk exposure, using
climate modelling every time the portfolio changes.
• Reduced occupancy levels
• Bi-annual review of control measures and their effectiveness
by our Risk Management Group and the Environmental Committee.
• Active management of acute physical risks such as floods and
storms across the portfolio through emergency preparedness, site maintenance
surveys and business continuity planning.
• Delivery of net zero carbon and EPC upgrades across the
portfolio to manage transition risk.
• Embedding of climate-related objectives linked with
remuneration, to incentivise focused action.
• Active management of our energy and raw materials costs via
efficiency measures and design optimisation.
CONSOLIDATED INCOME STATEMENT
FOR THE Six Months ENDED 30 September 2025
Notes Unaudited 6 months ended 30 September 2025 Unaudited 6 months ended 30 September 2024 Audited
£m £m Year ended
31 March 2025 £m
Revenue 2 90.1 92.4 185.2
Direct costs(1) 2 (31.4) (31.9) (63.1)
Net rental income 2 58.7 60.5 122.1
Administrative expenses (11.7) (12.4) (23.3)
Trading profit 98.8
47.0 48.1
Loss on disposal of investment properties 3(a) (1.6) (1.1) (1.5)
Other expenses 3(b) (4.5) (1.1) (3.6)
Change in fair value of investment properties 9 (95.3) (20.0) (55.9)
Impairment of assets held for sale 9 (0.3) (0.3) (0.4)
Operating (loss)/ profit (54.7) 25.6 37.4
Finance costs 4 (16.4) (15.4) (32.0)
(Loss)/ profit before tax 5.4
(71.1) 10.2
Taxation 5 - - -
(Loss)/ profit for the period after tax 5.4
(71.1) 10.2
Basic (loss)/ earnings per share 7 (37.0)p 5.3p 2.8p
Diluted (loss)/ earnings per share 7 (37.0)p 5.3p 2.8p
(1) Direct costs include impairment of receivables of £0.2m (31 March 2025:
£1.0m, 30 September 2024: £0.7m). See note 2 for further information.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE six months ENDED 30 September 2025
Unaudited 6 months ended 30 September 2025 Unaudited 6 months ended 30 September 2024 Audited
£m £m Year ended
31 March 2025
£m
(Loss)/ profit for the period (71.1) 10.2 5.4
Other comprehensive income:
Items that may be classified subsequently to profit or loss:
Change in fair value of other investments - - 0.1
Change in fair value of derivative - (0.5) (0.3)
Other comprehensive loss in the period - (0.5) (0.2)
Total comprehensive (loss)/ income for the period 5.2
(71.1) 9.7
CONSOLIDATED BALANCE SHEET
AS AT 30 September 2025
Notes Unaudited 30 September 2025 Audited 31 March 2025 Unaudited 30 September 2024
£m £m £m
Non-current assets
Investment properties 9 2,210.8 2,351.7 2,404.0
Intangible assets - 1.1 2.2
Property, plant and equipment 2.8 3.4 2.9
Other investments 3.3 3.3 3.2
Deferred tax 0.3 0.3 0.3
2,359.8 2,412.6
2,217.2
Current assets
Trade and other receivables 10 30.5 32.8 37.2
Assets held for sale 9 95.1 45.2 47.2
Cash and cash equivalents 11 8.5 32.7 9.0
110.7 93.4
134.1
Total assets 2,470.5 2,506.0
2,351.3
Current liabilities
Trade and other payables 12 (91.0) (92.2) (91.9)
Borrowings 13(a) - (79.9) (79.9)
Derivative financial instruments 13(e) (0.1) (0.1) -
(172.2) (171.8)
(91.1)
Non-current liabilities
Borrowings 13(a) (829.6) (761.4) (775.5)
Lease obligations 14 (34.7) (34.7) (34.7)
Derivative financial instruments 13(e) - - (0.3)
(796.1) (810.5)
(864.3)
Total liabilities (968.3) (982.3)
(955.4)
Net assets 1,502.2 1,523.7
1,395.9
Shareholders' equity
Share capital 16 192.3 192.1 192.1
Share premium 295.6 295.6 295.5
Investment in own shares (0.2) (0.3) (9.6)
Other reserves 70.3 71.2 91.0
Retained earnings 837.9 943.6 954.7
Total shareholders' equity 1,502.2 1,523.7
1,395.9
Consolidated Statement of Changes in Equity
FOR THE period ENDED 30 September 2025
Attributable to owners of the Parent
Unaudited 6 months to Notes Share Share Investment Other Retained Total Shareholders'
equity
30 September 2025 capital premium in own reserves earnings
£m
£m £m shares £m £m
£m
Balance at 1 April 2025 192.1 295.6 (0.3) 71.2 943.6 1,502.2
Loss for the period - - - - (71.1) (71.1)
Total comprehensive loss - - - - (71.1) (71.1)
Transactions with owners:
Dividends paid 6 - - - - (36.5) (36.5)
Share based payments 0.2 - 0.1 (0.9) 1.9 1.3
Balance at 30 September 2025 192.3 295.6 (0.2) 70.3 837.9 1,395.9
Unaudited 6 months to
30 September 2024
Balance at 1 April 2024 191.9 296.6 (9.9) 93.0 977.3 1,548.9
Profit for the period - - - - 10.2 10.2
Other comprehensive income - - - (0.5) - (0.5)
Total comprehensive (loss)/ income - - - (0.5) 10.2 9.7
Transactions with owners:
Dividends paid 6 - - - - (36.5) (36.5)
Cost of shares awarded to employees - - 0.3 - - 0.3
Share based payments 0.2 (1.1) - (1.5) 3.7 1.3
Balance at 30 September 2024 192.1 295.5 (9.6) 91.0 954.7 1,523.7
Audited 12 months to
31 March 2025
Balance at 1 April 2024 191.9 296.6 (9.9) 93.0 977.3 1,548.9
Profit for the year - - - - 5.4 5.4
Other comprehensive loss - - - (0.2) - (0.2)
Total comprehensive (loss)/ income - - - (0.2) 5.4 5.2
Transactions with owners:
Dividends paid 6 - - - - (54.5) (54.5)
Own shares transferred in prior years(2) - - 9.3 - (9.3) -
Cost of shares awarded to employees - - 0.3 - - 0.3
Share based payments 0.2 (1.0) (1) - (0.4) 3.5 2.3
Share options lapsed in prior years(3) - - - (21.2) 21.2 -
Balance at 31 March 2025 192.1 295.6 (0.3) 71.2 943.6 1,502.2
1. The movement in the year on share premium relates to the excess between the
nominal value and the vested share price on awarded shares to employees in the
previous year. This has been reclassified to retained earnings in the current
year.
2. In the year the Group transferred the excess amounts held in the investment
in own shares reserve to retained earnings in accordance with the carrying
value of the remaining shares held. The transfer should have been made prior
to the date of the opening comparative period, but was omitted. The error is
not considered material and hence it is being corrected in the current year.
3. In the year the Group transferred amounts held in the share-based payment
reserve to retained earnings In relation to share options that had lapsed in
prior years. The transfer should have been made prior to the date of the
opening comparative period, but was omitted. The error is not considered
material and hence it is being corrected in the current year.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD 30 September 2025
Notes Unaudited Unaudited Audited
6 month ended 30 September 2025 6 months ended 30 September 2024 Year ended
£m £m 31 March
2025
£m
Cash flows from operating activities
Cash generated from operations 15 39.3 43.4 105.1
Interest paid (12.6) (11.3) (28.5)
Net cash inflow from operating activities 26.7 32.1 76.6
Cash flows from investing activities
Capital expenditure on investment properties (32.0) (28.0) (58.9)
Proceeds from government grants 0.6 - 0.7
Proceeds from disposal of investment properties (net of sales costs) 9.7 - 36.5
Proceeds from disposal of assets held for sale (net of sale costs) 16.5 29.4 40.4
Purchase of intangible assets - (0.5) (0.4)
Purchase of property, plant and equipment (0.2) (0.7) (1.8)
Net cash (outflow)/inflow from investing activities (5.4) 0.2 16.5
Cash flows from financing activities
Finance costs of new/amended borrowing facilities (1.4) - (1.3)
Settlement of share schemes (0.3) (0.4) (0.4)
Proceeds from disposal of own shares - 0.3 -
Repayment of private placement (80.0) - -
Repayment of bank borrowings (89.8) (89.2) (355.5)
Draw down of bank borrowings 158.8 89.0 341.5
Dividends paid 6 (32.8) (34.6) (56.3)
Net cash outflow from financing activities (45.5) (34.9) (72.0)
Net (decrease)/increase in cash and cash equivalents (24.2) (2.6) 21.1
Cash and cash equivalents at start of period 11 32.7 11.6 11.6
Cash and cash equivalents at end of period 11 8.5 9.0 32.7
NOTES TO THE FINANCIAL STATEMENTS
FOR THE period ENDED 30 September 2025
1. Accounting policies
Basis of preparation
The half year report has been prepared in accordance with the Disclosure and
Transparency Rules and with IAS 34 'Interim Financial Reporting' as adopted
for use in the UK. The half year report should be read in conjunction with the
annual financial statements for the year ended 31 March 2025, which have been
prepared in accordance with UK adopted international accounting standards.
The condensed consolidated financial statements in the half year report,
presented in Sterling, are unaudited and do not constitute statutory accounts
within the meaning of Section 434 of the Companies Act 2006. The Annual Report
and Accounts for the year to 31 March 2025, were prepared and approved by the
Directors on a going concern basis, in accordance with UK adopted
international accounting standards ("IFRS"). A copy of the statutory accounts
for the year ended 31 March 2025 has been delivered to the Registrar of
Companies. The Company elected to prepare its Parent Company financial
statements in accordance with FRS 101. The auditor's opinion on those accounts
was unqualified, did not contain an emphasis of matter paragraph and did not
contain any statement made under Section 498 of the Companies Act 2006.
There have been no changes in estimates of amounts reported in prior periods
which have a material impact on the current half year period.
As with most other UK property companies and REITs, the Group presents many of
its financial measures in accordance with the guidance criteria issued by the
European Public Real Estate Association ('EPRA'). These measures, which
provide consistency across the sector, are all derived from the IFRS figures
in notes 7 and 8.
Going concern
The Board is required to assess the appropriateness of applying the going
concern basis in the preparation of the financial statements. Macro-economic
and geo-political issues, including the impact of US tariffs on UK businesses
and their supply chains, have heightened wider concerns around the UK economy
and mean there is a continuing risk of an economic downturn. In this context,
the Directors have fully considered the business activities and principal
risks of the Company.
In preparing the assessment of going concern, the Board has reviewed a number
of different scenarios over the 12 month period from the date of signing of
these financial statements. These scenarios include a severe, but
realistically possible, scenario which includes the following key assumptions:
· A reduction in occupancy, reflecting weaker customer demand for
office space.
· A reduction in the pricing of new lettings, resulting in a
reduction in average rent per sq. ft.
· Elevated levels of counterparty risk, with bad debt significantly
higher than pre-pandemic levels.
· Continued elevated levels of cost inflation.
· Increases in SONIA rates impacting the cost of variable rate
borrowings.
· Estimated rental value reduction in-line with the decline in
average rent per sq. ft. and outward movement in investment yields resulting
in a lower property valuation.
The appropriateness of the going concern basis is reliant on the continued
availability of borrowings, sufficient liquidity and compliance with loan
covenants. All borrowings require compliance with LTV and Interest Cover
covenants. As at the tightest test date in the scenarios modelled, the Group
could withstand a reduction in Net Rental Income of 50% compared to the
September 2025 Net Rental Income and a fall in the asset valuation of 42%
compared to 30 September 2025 before these covenants are breached, assuming
no mitigating actions are taken.
As at 30 September 2025, the Company had significant headroom with £167m of
cash and undrawn facilities. The majority of the Group's debt is long-term
fixed-rate committed facilities comprising a £300m Green Bond, £220m of
private placement notes, a £65m secured loan facility and an £80m term loan.
Shorter-term liquidity and flexibility is provided by floating rate bank
facilities which comprise £335m of sustainability-linked revolving credit
facilities (RCFs), of which £135m matures in November 2029 (following the
exercise of an extension option in November 2025 as detailed in Note 18) and
£200m matures in June 2029. Both facilities include the potential to be
extended by a further year subject to lender consent. The £135m RCF has the
option to increase the facility amount by up to £120m and the £200m RCF has
the option to increase the facility amount by up to £100m, both subject to
lender consent.
For the full period of assessment under the scenario tested, the Group
maintains sufficient liquidity and loan covenant headroom.
Consequently, the Directors have a reasonable expectation that the Group and
Company will have sufficient funds to continue to meet its liabilities as they
fall due for at least 12 months from the date of approval of the consolidated
set of financial statements and therefore the financial statements have been
prepared on a going concern basis.
This report was approved by the Board on 18 November 2025.
Change in accounting policies
The accounting policies adopted are consistent with those of the annual
financial statements for the year ended 31 March 2025, with the exception of
the following standards, amendments and interpretations endorsed by the UK
which were effective for the first time for the Group's current accounting
period and had no material impact on the financial statements.
· Amendments to IAS 21: Lack of exchangeability
Standards in issue but not yet effective
The following standards, amendments and interpretations were in issue at the
date of approval of these financial statements but were not yet effective for
the current accounting period and have not been adopted early.
IFRS 18 will replace IAS 1 Presentation of financial statements and effective
for annual periods beginning on or after 1 January 2027. IFRS 18 will not
impact the recognition or measurement of items in the financial statements,
but its impacts on presentation and disclosure is expected to be material.
Management is currently assessing the detailed implications of applying the
new standard on the Group's consolidated financial statements.
The other standards and amendments that are not yet effective are not expected
to have a material impact on the Group in the current or future reporting
periods and on the foreseeable future transactions.
· IFRS 9 and IFRS 7 (amended): Amendments to the Classification and
Measurement of Financial Instruments
· IFRS 19: Subsidiaries without Public Accountability: Disclosures
2. Analysis of net rental income
Unaudited 6 months ended 30 September 2025 Unaudited 6 months ended 30 September 2024
Revenue Direct costs(1) Net rental income Revenue Direct costs Net rental income
£m £m £m £m £m £m
Rental income 70.4 (2.8) 67.6 72.9 (3.9) 69.0
Service charges 16.2 (18.3) (2.1) 16.0 (19.1) (3.1)
Empty rates and other non-recoverable costs - (6.0) (6.0) - (5.4) (5.4)
Services, fees, commissions and sundry income 3.5 (4.3) (0.8) 3.5 (3.5) -
90.1 (31.4) 58.7 92.4 (31.9) 60.5
Audited Year ended 31 March 2025
Revenue Direct Net rental
£m costs(1) income
£m £m
Rental income 144.9 (6.7) 138.2
Service charges 33.2 (37.4) (4.2)
Empty rates and other non-recoverable costs - (11.5) (11.5)
Services, fees, commissions and sundry income 7.1 (7.5) (0.4)
185.2 (63.1) 122.1
(1)There is one property within the current period (31 March 2025: one; 30
September 2024: two) that are non-rent producing
A charge of £0.2m (31 March 2025: £1.0m, 30 September 2024: £0.7m) for
expected credit losses in respect of receivables from customers is recognised
in direct costs of rental income in the period.
All of the properties within the portfolio are geographically close to each
other and have similar economic features and risks. Management information
utilised by the Executive Committee to monitor and assess performance is
reviewed as one portfolio. As a result, management have determined that the
Group operates a single operating segment of providing business space for rent
in and around London.
3(a). Loss on disposal of investment properties
Unaudited 6 months ended 30 September 2025 Unaudited 6 months ended 30 September 2024 Audited Year
£m £m ended
31 March
2025
£m
Proceeds from sale of investment properties (net of sale costs) 7.7 - 38.4
Proceeds from sale of assets held for sale (net of sale costs) 16.4 29.4 40.4
Book value at time of sale (25.7) (30.5) (80.3)
Loss on disposal (1.6) (1.1) (1.5)
3(b). Other expenses
Unaudited 6 months ended 30 September 2025 Unaudited 6 months ended 30 September 2024 Audited Year
£m £m ended
31 March
2025
£m
Other expenses (4.5) (1.1) (3.6)
Other expenses include exceptional one-off costs relating to the replacement
of our finance and property management system and CRM system of £1.8m (31
March 2025: £2.7m; 30 September 2024: £1.1m), which brings the cumulative
spend to date to £7.5m with a forecast spend of approx £2.0m in relation to
the CRM system until the expected go live date in 2026. There were also other
expenses in the period relating to organisation restructuring totalling £2.7m
(31 March 2025: £nil; 30 September 2024: £nil). The year to 31 March 2025
included one off-costs relating to the new CEO of £0.9m (period to 30
September 2024: £nil). These costs are outside the Group's normal trading
activities.
4. Finance costs
Unaudited 6 months ended 30 September 2025 Unaudited 6 months ended 30 September 2024 Audited Year
£m £m ended
31 March
2025
£m
Interest payable on bank loans and overdrafts (8.1) (6.4) (12.8)
Interest payable on other borrowings (8.1) (9.7) (19.3)
Amortisation of issue costs of borrowings (0.7) (0.8) (1.8)
Interest on lease liabilities (1.0) (0.9) (2.1)
Interest capitalised on property refurbishments (note 9) 0.9 2.3 3.4
Interest receivable 0.6 0.1 0.6
Total finance costs (16.4) (15.4) (32.0)
All finance costs have been calculated in accordance with IFRS 9,
re-estimating the cash flows based on the original effective interest rate
with the adjustment being taken through the consolidated income statement,
with the exception of interest payable on leases which is calculated in
accordance with IFRS 16.
5. Taxation
The Group is a Real Estate Investment Trust (REIT). The Group's UK property
rental business (both income and capital gains) is exempt from tax. The
Group's other income is subject to corporation tax. No tax charge has arisen
on this other income for the half year (31 March 2025: £nil, 30 September
2024: £nil).
6. Dividends
Ordinary dividends paid Payment Per Unaudited 6 months ended Unaudited 6 months ended 30 September 2024 Audited Year
date share 30 September £m ended
2025 31 March
£m 2025
£m
For the year ended 31 March 2024:
Final dividend August 2024 19.0p - 36.5 36.5
For the year ended 31 March 2025:
Interim dividend February 2025 9.0p - - 18.0
Final dividend August 2025 19.0p 36.5 - -
Dividends for the period 36.5 36.5 54.5
Timing difference on payment of withholding tax (3.7) (1.9) 1.8
Dividends cash paid 32.8 34.6 56.3
The Directors are proposing an interim dividend in respect of the financial
year ending 31 March 2026 of 9.4 pence per ordinary share which will absorb an
estimated £18.1m of revenue reserves and cash. The dividend will be paid on 2
February 2026 to shareholders who are on the register of members on 9 January
2026. The dividend will be paid as a normal dividend (not a REIT Property
Income Distribution), net of withholding tax where appropriate.
7. Earnings per share
Earnings used for calculating earnings per share: Unaudited 6 months ended 30 September 2025 Unaudited 6 months ended 30 September 2024 (restated) Unaudited 6 months ended 30 September 2024 Audited Year ended 31 March 2025
£m
£m £m £m
Basic and diluted (loss)/ earnings (71.1) 10.2 10.2 5.4
Change in fair value of investment properties 95.3 20.0 20.0 55.9
Impairment of assets held for sale 0.3 0.3 0.3 0.4
Loss on disposal of investment properties 1.6 1.1 1.1 1.5
Other expenses(2) (note 3(b)) 4.5 1.1 - 3.6
EPRA earnings 30.6 32.7 31.6 66.8
Adjustment for non-trading items:
Other expenses (note 3(b)) - - 1.1 -
Adjusted trading profit after interest 30.6 32.7 32.7 66.8
Earnings have been adjusted to derive an earnings per share measure as defined
by the European Public Real Estate Association (EPRA) and an adjusted
underlying earnings per share measure.
Number of shares used for calculating earnings per share: Audited Year ended 31 March
Unaudited 6 months ended 30 September 2025 Unaudited 6 months ended 30 September 2025
2024
Weighted average number of shares (excluding own shares held in trust) 192,160,106 191,908,584 191,997,294
Dilution due to share option schemes 1,284,025 1,539,059 1,770,841
Weighted average number of shares for diluted earnings per share 193,444,131 193,447,643 193,768,135
Unaudited 6 months ended (Restated) Unaudited 6 months ended Audited Year ended
30 September 2025 Unaudited 6 months ended 30 September 2024 31 March
30 September 2024 2025
Basic (loss)/ earnings per share (37.0)p 5.3p 5.3p 2.8p
Diluted (loss)/ earnings per share (37.0)p 5.3p 5.3p 2.8p
EPRA earnings per share 15.9p 17.0p 16.5p 34.8p
Diluted EPRA earnings per share 15.8p 16.9p 16.3p 34.5p
Adjusted underlying earnings per share(1) 15.8p 16.9p 16.9p 34.5p
Adjusted underlying earnings per share (basic) 15.9p 17.0p 17.0p 34.8p
(1) Adjusted underlying earnings per share is calculated by dividing adjusted
trading profit after finance costs by the diluted weighted average number of
shares of 193,444,131 (31 March 2025: 193,768,135, 30 September 2024:
193,447,643).
(2.) The EPRA Best Practice Guidelines were updated in 2024, the new
guidelines have been adopted and applied for the year ended 31 March 2025 and
the period ended 30 September 2025. To ensure comparability, EPRA earnings as
at 30 September 2024 have been restated in line with the new guidelines. The
key change in the guidelines is to include an additional adjustment to EPRA
earnings for non-operating and exceptional items. Other expenses (see note
3(b)) are now considered to be adjusting items for this reason.
In the period, the diluted loss per share has been restricted to a loss of
37.0p per share, as the loss per share cannot be reduced by dilution in
accordance with IAS 33 Earnings per Share.
8. Net assets per share
Number of shares used for calculating net assets per share: Unaudited 30 September Audited 31 March Unaudited 30 September
2025 2025 2024
Shares in issue at period-end 192,312,516 192,143,004 192,143,004
Less own shares held in trust at period-end (24,717) (57,524) (57,289)
Number of shares for calculating basic net assets per share 192,287,799 192,085,480 192,085,715
Dilution due to share option schemes 1,457,984 1,871,843 1,681,592
Number of shares for calculating diluted net assets per share 193,745,783 193,957,323 193,767,307
EPRA Net Asset Value Metrics
Unaudited 30 September 2025 Audited 31 March 2025
EPRA NRV EPRA NTA EPRA NDV EPRA NRV EPRA NTA EPRA NDV
£m £m £m £m £m £m
IFRS Equity attributable to shareholders 1,395.9 1,395.9 1,395.9 1,502.2 1,502.2 1,502.2
Fair value of derivative financial instruments 0.1 0.1 - 0.1 0.1 -
Intangibles per IFRS balance sheet - - - - (1.1) -
Excess of book value of debt over fair value - - 28.9 - - 39.9
Purchasers' costs(1) 154.8 - - 161.0 - -
EPRA measure 1,550.8 1,396.0 1,424.8 1,663.3 1,501.2 1,642.1
Number of shares for calculating diluted net assets per share (millions) 193.7 193.7 193.7 194.0 194.0 194.0
EPRA measure per share £8.00 £7.21 £7.35 £8.58 £7.74 £7.95
Unaudited 30 September 2024
EPRA NRV EPRA NTA EPRA NDV
£m £m £m
IFRS Equity attributable to shareholders 1,523.7 1,523.7 1,523.7
Fair value of derivative financial instruments 0.3 0.3 -
Intangibles per IFRS balance sheet - (2.2) -
Excess of fair value of debt over book value - - 47.7
Purchasers' costs(1) 164.7 - -
EPRA measure 1,688.7 1,521.8 1,571.4
Number of shares for calculating diluted net assets per share (millions) 193.8 193.8 193.8
EPRA measure per share £8.72 £7.85 £8.11
(1) EPRA NTA and EPRA NDV reflect IFRS values which are net of purchasers'
costs. Purchasers' costs are added back when calculating EPRA NRV.
Total Accounting Return
Total Accounting Return Unaudited 30 September Audited 31 March Unaudited 30 September
2025 2025 2024
Opening EPRA net tangible assets per share (A) 7.74 8.00 8.00
Closing EPRA net tangible assets per share 7.21 7.74 7.85
Decrease in EPRA net tangible assets per share (0.53) (0.26) (0.15)
Ordinary dividends paid in the period 0.19 0.28 0.19
Total return (B) (0.34) 0.02 0.04
Total accounting return (B/A) (4.4)% 0.3% 0.5%
The total accounting return for the period comprises the (reduction)/growth in
absolute EPRA net tangible assets per share plus dividends paid in the period
as a percentage of the opening EPRA net tangible assets per share.
9. Investment Properties
Unaudited 30 September 2025 Audited 31 March 2025 Unaudited 30 September 2024
£m £m £m
Balance at 1 April 2,351.7 2,408.5 2,408.5
Capital expenditure 28.9 54.3 23.7
Capitalised interest on refurbishments (note 4) 0.9 3.4 2.3
Disposals during the period (8.3) (38.5) -
Change in fair value of investment properties (95.3) (55.9) (20.0)
Disposed properties tenant incentives recognised in advance under IFRS 16 - 0.2 0.2
Less: Classified as assets held for sale (67.1) (20.3) (10.7)
Total investment properties 2,210.8 2,351.7 2,404.0
Investment properties represent a single class of property being business
premises for rent in and around London.
Capitalised interest is included at a rate of capitalisation of 6.0% (31 March
2025: 6.7%, 30 September 2024: 6.9%). The total amount of capitalised interest
included in investment properties is £22.4m (31 March 2025: £21.5m, 30
September 2024: £20.4m).
The change in fair value of investment properties is recognised in the
consolidated income statement.
Investment property held for sale
Unaudited 30 September 2025 Audited 31 March 2025 Unaudited 30 September 2024
£m £m £m
Balance at 1 April 45.2 65.7 65.7
Capital expenditure 0.5 1.4 1.2
Reclassified from investment properties in the period 67.1 20.3 10.7
Disposals during the period (17.4) (41.8) (30.1)
Impairment of assets held for sale (0.3) (0.4) (0.3)
Balance at period end 95.1 45.2 47.2
Three of the properties classified as held for sale at the end of the prior
year were not sold during the half-year. These are retained within current
assets as they are still expected to sell within the next 12 months of 30
September 2025 and have been subject to an impairment charge of £0.3m
following the valuation carried out at 30 September 2025. Seven (31 March
2025: four, 30 September 2024: one) additional properties were reclassified as
held for sale at 30 September 2025.
Valuation
The Group's investment properties are held at fair value and were revalued at
30 September 2025 by the external valuers, CBRE Limited and Knight Frank LLP.
They are independent qualified valuers in accordance with the Royal
Institution of Chartered Surveyors Valuation - Global Standards. All the
properties are revalued at period end regardless of the date of acquisition.
In line with IFRS 13, all investment properties are valued on the basis of
their highest and best use.
The valuation of like-for-like properties (which are not subject to
refurbishment or redevelopment) and completed projects are based on the income
capitalisation method which applies market-based yields to the Estimated
Rental Values (ERVs) of each of the properties. Yields are based on current
market expectations depending on the location and use of the property. ERVs
are based on estimated rental potential considering current rental streams and
market comparatives whilst also considering the occupancy and timing of rent
reviews at each property. Although occupancy and rent review timings are
known, and there is market evidence for transaction prices for similar
properties, there is still a significant element of estimation and judgement
in estimating ERVs. As a result of adjustments made to market observable data,
the significant inputs are deemed unobservable under IFRS 13.
When valuing properties being refurbished, the residual value method is used.
The completed value of the refurbishment is determined as for like-for-like
properties above. Capital expenditure required to complete the building is
then deducted and a discount factor is applied to reflect the time period to
complete construction and allowance made for construction and market risk to
arrive at the residual value of the property.
The discount factor used is the property yield that is also applied to the ERV
to determine the value of the completed building. Other risks such as
unexpected time delays relating to planned capital expenditure are assessed on
a project-by-project basis, looking at market comparable data where possible
and the complexity of the proposed scheme.
Redevelopment properties are also valued using the residual value method. The
completed proposed redevelopment which would be undertaken by a residential
developer is valued based on the market value for similar sites and then
adjusted for costs to complete, developer's profit margin and a time discount
factor. Allowance is also made for planning and construction risk depending on
the stage of the redevelopment. If a contract is agreed for the
sale/redevelopment of the site, the property is valued based on agreed
consideration.
For all methods the valuers are provided with information on tenure, letting,
town planning and the repair of the buildings and sites.
The reconciliation of the valuation report total to the amount shown in the
consolidated balance sheet as investment properties, is as follows:
Unaudited 30 September 2025 Audited 31 March Unaudited 30 September
£m 2025 2024
£m £m
Total per CBRE and Knight Frank valuation reports 2,276.4 2,367.8 2,422.8
Deferred consideration on sale of property (0.6) (0.6) (0.6)
Head lease obligations 34.7 34.7 34.7
Less: reclassified as held for sale (95.1) (45.2) (47.2)
Less: tenant incentives recognised in advance under IFRS 16 (4.6) (5.0) (5.7)
Total investment properties per balance sheet 2,210.8 2,351.7 2,404.0
The Group's Investment properties are carried at fair value and under IFRS 13
are required to be analysed by level depending on the valuation method
adopted. The different valuation methods are as follows:
Level 1 - Quoted prices (unadjusted) in active markets for identical
assets or liabilities that the entity can access at the measurement date.
Level 2 - Use of a model with inputs (other than quoted prices included
in Level 1) that are directly or indirectly observable market data.
Level 3 - Use of a model with inputs that are not based on observable
market data.
Property valuations are complex and involve data which is not publicly
available and involves a degree of judgement. All the investment properties
are classified as Level 3, due to the fact that one or more significant inputs
to the valuation are not based on observable market data. If the degree of
subjectivity or nature of the measurement inputs changes then there could be a
transfer between Levels 2 and 3 of classification. No changes requiring a
transfer have occurred during the current or previous years.
CBRE and Knight Frank have made enquiries to ascertain any sustainability
factors which are likely to impact on value, consistent with the scope of
their terms of engagement. Sustainability encompasses a wide range of
physical, social, environmental, and economic factors that can affect the
value of an asset, even if not explicitly recognised. This includes key
environmental risks; such as flooding, energy efficiency, climate, design,
legislation and management considerations - as well as current and historic
land use. Where CBRE and Knight Frank recognise the value impacts of
sustainability, they reflect their understanding of how market participants
include sustainability factors in their decisions and the consequential impact
on market valuations.
The following table summarises the valuation techniques and inputs used in the
determination of the property valuation at 30 September 2025.
Key unobservable inputs:
ERVs - per sq. ft. Equivalent yields
Property category Valuation Valuation Range Weighted Range Weighted
£m technique average average
Like-for-like 1,737.9 A £23 - £81 £50 6.0% - 8.3% 6.6%
Completed projects 120.7 A £25 - £57 £35 6.2% - 7.8% 6.7%
Refurbishments 270.0 A £27 - £59 £38 6.1% - 10.6% 6.9%
South East Offices 52.1 A £18 - £35 £27 8.8% - 12.3% 10.2%
Head leases 34.7 N/A
Tenant incentives (4.6) N/A
Total 2,210.8
A = Income capitalisation method.
The following table summarises the valuation techniques and inputs used in the
determination of the property valuation at 31 March 2025.
Key unobservable inputs:
ERVs - per sq. ft. Equivalent yields
Property category Valuation Valuation Range Weighted Range Weighted
£m technique average average
Like-for-like 1,755.8 A £24 - £84 £51 5.9% - 8.6% 6.8%
Completed projects 167.8 A £25 - £55 £37 4.9% - 7.6% 6.9%
Refurbishments 322.6 A/B £23 - £75 £36 5.3% - 10.2% 7.2%
South East Offices 75.8 A £25 - £35 £29 8.4% - 12.5% 10.3%
Head leases 34.7 N/A
Tenant incentives (5.0) N/A
Total 2,351.7
A = Income capitalisation method.
B = Residual value method.
Developer's profit is a key unobservable input for properties that are valued
using the residual value method. The range is 10%-19% with a weighted average
of 15%.
Costs to complete are not considered to be a significant unobservable input
for refurbishments due to the high percentage of costs that are fixed.
The following table summarises the valuation techniques and inputs used in the
determination of the property valuation at 30 September 2024.
Key unobservable inputs:
ERVs - per sq. ft. Equivalent yields
Property category Valuation Valuation Range Weighted Range Weighted
£m technique average average
Like-for-like 1,800.4 A £24 - £83 £51 5.8% - 8.6% 7.1%
Completed projects 138.0 A £25 - £54 £34 6.7% - 8.4% 7.4%
Refurbishments / Redevelopments 358.3 B £17 - £75 £35 5.2% - 9.9% 7.2%
South East Offices 78.3 A £25 - £40 £30 8.4% - 12.4% 10.8%
Head leases 34.7 N/A
Tenant incentives (5.7) N/A
Total 2,404.0
A = Income capitalisation method.
B = Residual value method.
Developer's profit is a key unobservable input for properties that are valued
using the residual value method. The range is 10%-16% with a weighted average
of 14%.
Costs to complete is a key unobservable input for properties that are valued
using the residual value method. The range of £225-£389 per sq. ft. and a
weighted average of £328 per sq. ft.
10. Trade and other receivables
Current trade and other receivables Unaudited 30 September 2025 Audited 31 March Unaudited 30 September 2024
£m 2025 £m
£m
Trade receivables 13.6 15.7 17.8
Prepayments, other receivables and accrued income 15.8 14.0 18.3
Deferred consideration on sale of investment properties 1.1 3.1 1.1
30.5 32.8 37.2
Included within trade receivables is the provision for impairment of
receivables of £2.6m (31 March 2025: £3.5m, 30 September 2024: £4.5m).
The deferred consideration arising on the sale of investment properties
relates to cash and overage. The overage has been fair valued by Knight Frank
LLP (31 March 2025 and 30 September 2024 by CBRE Limited) on the basis of
residual value, using appropriate discount rates, and will be revalued on a
regular basis. This is a Level 3 valuation of a financial asset, as defined
by IFRS 13. The change in fair value recorded in the Consolidated income
statement was £nil (31 March 2025: £nil, 30 September 2024: £nil).
Receivables at fair value:
Included within deferred consideration on sale of investment properties is
£0.6m (31 March 2025: £0.6m, 30 September 2024: £0.6m) of overage or cash
which is held at fair value through profit and loss.
Receivables at amortised cost:
The remaining receivables are held at amortised cost. There is no material
difference between the above amounts and their fair values due to the
short-term nature of the receivables. All the Group's trade and other
receivables are denominated in Sterling.
11. Cash and cash equivalents
Unaudited 30 September 2025 Audited 31 March Unaudited 30 September 2024
£m 2025 £m
£m
Cash at bank and in hand 1.3 25.3 2.5
Restricted cash 7.2 7.4 6.5
8.5 32.7 9.0
£6.4m (31 March 2025: £7.2m; 30 September 2024: £6.2m) of the restricted
cash relates to tenants' deposit deeds which represent returnable cash
security deposits received from tenants which are held in ring-fenced bank
accounts in accordance with the terms of the individual lease contracts. The
remaining balance relates to restricted cash under terms of development
projects funding.
12. Trade and other payables
Unaudited 30 September 2025 Audited 31 March Unaudited 30 September 2024
£m 2025 £m
£m
Trade payables 8.2 6.8 7.9
Other tax and social security payable 6.3 3.2 6.7
Tenants' deposit deeds 6.5 7.3 8.1
Tenants' deposits 31.6 32.1 31.7
Accrued expenses 27.6 31.7 25.7
Deferred income - rent and service charges 10.9 11.1 11.8
91.0 92.2 91.9
There is no material difference between the above amounts and their fair
values due to the short-term nature of the payables.
13. Borrowings
(a) Balances
Unaudited 30 September 2025 Audited 31 March Unaudited 30 September 2024
£m 2025 £m
£m
Current
3.07% Senior Notes 2025 (unsecured) - 79.9 79.9
Non-current
Bank loans (unsecured) 246.3 178.2 192.6
Other loans (secured) 64.3 64.3 64.2
3.19% Senior Notes 2027 (unsecured) 119.9 119.9 119.9
3.6% Senior Notes 2029 (unsecured) 99.9 99.9 99.9
Green Bond (unsecured) 299.2 299.1 298.9
829.6 841.3 855.4
(b) Net Debt
Unaudited 30 September 2025 Audited 31 March Unaudited 30 September 2024
£m 2025 £m
£m
Borrowings per (a) above 829.6 841.3 855.4
Adjust for:
Cost of raising finance 4.4 3.7 3.4
834.0 845.0 858.8
Cash at bank and in hand (note 11) (1.3) (25.3) (2.5)
Net Debt 832.7 819.7 856.3
At 30 September 2025, the Group had £166m (31 March 2025: £235.0m, 30
September 2024: £141.2m) of undrawn bank facilities, a £2.0m overdraft
facility (31 March 2025: £2.0m, 30 September 2024: £2.0m) and £1.3m of
unrestricted cash (31 March 2025: £25.3m, 30 September 2024: £2.5m).
Net debt represents borrowing facilities drawn, less cash at bank and in hand.
It excludes lease obligations and any cost of raising finance as they have no
future cash flows.
The Group has a loan to value covenant applicable to the Bank Loans and Senior
Debt Borrowings of 60%, Green Bond of 65% and Aviva Loan of 55%. Loan to value
at 30 September 2025 for the Group was 36% (31 March 2025: 34%, 30 September
2024: 35%). In relation to the secured asset against the Aviva loan, the loan
to value at 30 September 2025 was 41% (31 March 2025: 41%: 30 September 2024:
40%).
The Group also has an interest cover covenant of 2.0x applicable to the Bank
Loan and Senior Debt Borrowings, 1.75x applicable for the Green Bond and 2.25x
applicable for the Aviva Loan. This is calculated as net rental income divided
by interest payable on loans and other borrowings. At 30 September 2025
interest cover for the Group was 3.7x (31 March 2025: 3.8x, 30 September 2024:
3.8x). In relation to the secured asset against the Aviva loan, the interest
cover at 30 September 2025 was 3.0x (31 March 2025: 3.6x; 30 September 2024:
4.1x).
(c) Maturity
Unaudited Audited Unaudited
30 September 2025 31 March 30 September
£m 2025 2024
£m £m
Repayable within one year - 80.0 80.0
Repayable between one and two years 120.0 80.0 30.0
Repayable between two and three years 380.0 420.0 283.8
Repayable between three years and four years 224.8 200.0 300.0
Repayable between four years and five years 109.2 - 100.0
Repayable in five years or more - 65.0 65.0
834.0 845.0 858.8
Cost of raising finance (4.4) (3.7) (3.4)
829.6 841.3 855.4
(d) Interest rate and repayment profile
Principal at Interest Interest Repayable
period end rate payable
£m
Current
Bank overdraft due within one year or on demand - Base + 2.25% Variable On demand
Non-current
Private Placement Notes:
3.19% Senior Notes 120.0 3.19% Half Yearly August 2027
3.6% Senior Notes 100.0 3.60% Half Yearly January 2029
Bank Loan 124.8 SONIA + 1.77%(1) Variable June 2029
Bank Loan 44.2 SONIA + 1.82%(1) Variable November 2028
Bank Loan 80.0 SONIA + 1.77%(1) Half yearly November 2026
Other Loan (secured) 65.0 4.02% Quarterly May 2030
Green Bond 300.0 2.25% Yearly March 2028
834.0
(1) The base margin can be adjusted by up to 4.5bps dependent upon achievement
of three ESG-linked metrics.
(e) Derivative financial instruments
The Group uses a mixture of fixed rate and variable rate facilities to manage
its interest rate exposure appropriately to provide operational and budget
certainty. To manage the interest rate risk arising on variable rate debt,
£100m of the debt has been swapped to fixed rate GBP using an interest rate
swap.
The hedged item is designated as the variability of the cash flows of the
specific debt instrument arising from future changes in the SONIA rate, which
is an eligible hedged item.
Hedge effectiveness is assessed on critical terms (amount, interest rate,
interest settlement dates, currency and maturity date). The critical terms of
this hedging relationship perfectly matched at origination, so for the
prospective assessment of effectiveness a qualitative assessment was
performed. The interest rate swap creates an equal and opposite interest
receipt and a fixed interest payment, therefore creating an exact offset for
this transaction resulting in a net fixed interest payable. Potential sources
of hedge ineffectiveness include significant change in the credit risk of
either party or a reduction in the hedged item as such will impact the
economic relationship between the fair value changes of the hedged item and
the swap.
Unaudited Audited Unaudited
30 September 2025 31 March 30 September
£m 2025 2024
£m £m
Carrying amount of derivative (0.1) (0.1) (0.3)
Change in fair value of designated hedging instrument - (0.3) (0.5)
Notional amount £m 100 100 100
Rate payable (%) 4.285 4.285 4.285
Maturity 31 January 2026 31 January 2026 31 January 2026
Hedge ratio 1:1 1:1 1:1
(f) Financial instruments and fair values
Unaudited Unaudited Audited Audited Unaudited Unaudited
30 September 2025 30 September 2025 31 March 31 March 30 September 2024 30 September 2024
Book Value Fair Value 2025 2025 Book Value Fair Value
£m £m Book Value Fair Value £m £m
£m £m
Financial liabilities held at amortised cost
Bank loans (unsecured) 246.3 246.3 178.2 178.2 192.6 192.6
Other loans (secured) 64.3 62.8 64.3 61.5 64.2 62.2
Private Placement Notes 219.8 213.3 299.7 290.5 299.7 288.0
Lease obligations 34.7 34.7 34.7 34.7 34.7 34.7
Green Bond 299.2 278.3 299.1 271.2 298.9 264.9
864.3 835.4 876.0 836.1 890.1 842.4
Financial assets at fair value
through other comprehensive income
Financial derivative (0.1) (0.1) (0.1) (0.1) (0.3) (0.3)
Other Investments 3.3 3.3 3.3 3.3 3.2 3.2
3.2 3.2 3.2 3.2 2.9 2.9
Financial assets at fair value through profit or loss
Deferred consideration (overage) 1.1 1.1 3.1 3.1 1.1 1.1
1.1 1.1 3.1 3.1 1.1 1.1
In accordance with IFRS 13 disclosure is required for financial instruments
that are carried or disclosed in the financial statements at fair value. The
fair values of all the Group's financial derivatives, bank loans, other loans
and Private Placement Notes have been determined by reference to market prices
and discounted expected cash flows at prevailing interest rates and are Level
2 valuations. There have been no transfers between levels in the year. The
different levels of valuation hierarchy as defined by IFRS 13 are set out in
note 9.
The total change in fair value of derivative financial instruments recorded in
other comprehensive income was £nil (31 March 2025: -£0.3m, 30 September
2024: -0.5m).
14. Lease obligations
Lease liabilities in respect of leased investment property are recognised in
accordance with IFRS 16.
Unaudited Audited Unaudited
30 September 2025 31 March 30 September 2024
£m 2025 £m
£m
Minimum lease payments under leases fall due as follows:
Within one year 2.1 2.1 2.1
Between one and five years 8.3 8.4 8.4
Between five and fifteen years 20.9 20.9 20.8
Beyond fifteen years 173.8 174.8 175.8
205.1 206.2 207.1
Future finance charges on leases (170.4) (171.5) (172.4)
Present value of lease liabilities 34.7 34.7 34.7
Following the adoption of IFRS 16, lease obligations are shown separately on
the face of the balance sheet. The balance represents a non-current liability
as the payment shown within one year of £2.1m is offset by future finance
charges on leases of £2.1m. All lease obligations are long leaseholds,
therefore, the majority of the obligations fall beyond fifteen years.
15. Notes to cash flow statement
Reconciliation of profit for the year to cash generated from operations:
Unaudited 6 months ended 30 September 2025 Unaudited 6 months ended 30 September 2024 Audited Year ended
£m
£m
31 March 2025
£m
(Loss)/ profit before tax (71.1) 10.2 5.4
Depreciation 0.7 0.8 1.4
Amortisation of intangibles 0.4 0.5 0.9
Letting fees amortisation 0.1 0.2 0.6
Loss on disposal of investment properties 1.6 1.1 1.5
Other expenses 0.7 - 0.7
Net loss from change in fair value of investment property 95.3 20.0 55.9
Impairment of assets held for sale 0.3 0.3 0.4
Equity-settled share based payments 1.4 1.5 2.7
Finance expense 16.4 15.4 32.0
Changes in working capital:
Decrease/(increase) in trade and other receivables 0.3 (0.8) 5.7
Decrease in trade and other payables (6.8) (5.8) (2.1)
Cash generated from operations 39.3 43.4 105.1
For the purposes of the cash flow statement, cash and cash equivalents include
restricted cash (note 11).
16. Share Capital
Unaudited Audited Unaudited
30 September 2025 31 March 30 September
£m 2025 2024
£m £m
Issued: fully paid ordinary shares of £1 each 192.3 192.1 192.1
Movements in share capital were as follows: Unaudited Audited Unaudited
30 September 31 March 30 September
2025 2025 2024
Number of shares at 1 April 192,143,004 191,910,392 191,910,392
Issue of shares 169,512 232,612 232,612
Number of shares at period end 192,312,516 192,143,004 192,143,004
In the period there were 169,512 scheme options issued with net proceeds £nil
(31 March 2025: 232,612 options issued with £nil proceeds, 30 September 2024:
232,612 options issued with £nil proceeds).
17. Capital commitments
At the period end the estimated amounts of contractual commitments for future
capital expenditure not provided for were:
Unaudited Audited Unaudited
30 September 2025 31 March 30 September
£m 2025 2024
£m £m
Construction or refurbishment of investment properties 10.5 24.1 20.8
18. Post balance sheet events
In November 2025, the Group's £135m RCF bank facility and £80m Term Loan
were extended with maturity now November 2029 and November 2027 respectively.
Responsibility statement of the directors in respect of the half-yearly
financial report
We confirm that to the best of our knowledge:
• the condensed set of financial statements has been prepared in accordance
with IAS 34 Interim Financial Reporting as adopted for use in the UK;
• the interim management report includes a fair review of the information
required by:
(a) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an
indication of important events that have occurred during the first six months
of the financial year and their impact on the condensed set of financial
statements; and a description of the principal risks and uncertainties for the
remaining six months of the year; and
(b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being
related party transactions that have taken place in the first six months of
the current financial year and that have materially affected the financial
position or performance of the entity during that period; and any changes in
the related party transactions described in the last annual report that could
do so.
The Directors of Workspace Group PLC are listed in the Workspace Group PLC
Annual Report and Accounts for 31 March 2025. A list of current Directors is
maintained on the Workspace Group website: www.workspace.co.uk
(http://www.workspace.co.uk) .
Approved by the Board on 18 November 2025 and signed on its behalf by
D Benson
Director
INDEPENDENT REVIEW REPORT TO Workspace Group plc
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 September 2025 is not prepared,
in all material respects, in accordance with UK adopted International
Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of
the United Kingdom's Financial Conduct Authority.
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
September 2025 which comprise the Consolidated Income Statement, the
Consolidated Statement of Comprehensive Income, the Consolidated Balance
Sheet, the Consolidated Statement of Changes in Equity, the Consolidated
Statement of Cash Flows and the related explanatory notes.
Basis for conclusion
We conducted our review in accordance with the International Standard on
Review Engagements (UK) 2410, "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" ("ISRE (UK) 2410
(Revised)"). A review of interim financial information consists of making
enquiries, primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with
International Standards on Auditing (UK) and consequently does not enable us
to obtain assurance that we would become aware of all significant matters that
might be identified in an audit. Accordingly, we do not express an audit
opinion.
As disclosed in Note 1, the annual financial statements of the Group are
prepared in accordance with UK adopted International Accounting Standards. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with UK adopted International
Accounting Standard 34, "Interim Financial Reporting".
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410 (Revised), however future events or conditions may cause the
Group to cease to continue as a going concern.
Responsibilities of directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible
for assessing the Company's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to
liquidate the company or to cease operations, or have no realistic alternative
but to do so.
Auditor's responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the
Company a conclusion on the condensed set of financial statements in the
half-yearly financial report. Our conclusion, including our conclusions
relating to going concern, are based on procedures that are less extensive
than audit procedures, as described in the Basis for conclusion paragraph of
this report.
Use of our report
Our report has been prepared in accordance with the terms of our engagement to
assist the Company in meeting the requirements of the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct Authority and for
no other purpose. No person is entitled to rely on this report unless such a
person is a person entitled to rely upon this report by virtue of and for the
purpose of our terms of engagement or has been expressly authorised to do so
by our prior written consent. Save as above, we do not accept responsibility
for this report to any other person or for any other purpose and we hereby
expressly disclaim any and all such liability.
BDO LLP
Chartered Accountants
London, UK
18 November 2025
BDO LLP is a limited liability partnership registered in England and Wales
(with registered number OC305127).
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