Final results for the year ended 31 December 2025

Panther Securities PLC

14 May 2026

 

Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement, this information is now considered to be in the public domain.

14 May 2026

Panther Securities P.L.C.

("the Company" or "the Group")

Financial results for the year ended 31 December 2025

CHAIRMAN'S STATEMENT

It gives me pleasure once again to be able to present the results for the year ended 31 December 2025.  Our profit after tax for this period was £4,253,000 compared to £6,687,000 for the previous year ended 31 December 2024. This change was partially driven by a decrease in the valuation of our swap position of £1,075,000 for the year ended 31 December 2025, compared to a valuation gain of £3,265,000 for the year ended 31 December 2024.

The results for 2025 were helped by a revaluation gain on investment properties of £3,209,000 (year ended 31 December 2024 saw a revaluation gain of £1,300,000).  The underlying business's strength can be seen by consistent profits, valuation increases and rent increases.

Rents Receivable

During 2025, rents receivable amounted to £14,850,000 compared to £14,657,000 for the prior year.

On 16 September 2025, our £120,000 refurbishment of a small part of our Wickford factory estate was completed and let at £155,000 per annum.  Likewise, two factories in Tenbury Wells totalling approximately 60,000 sq. ft. had their short-term leases renewed to new 10 year leases with our existing tenants at slightly increased rents (the smaller factory rising to £48,000 pa and the larger factory rising to £162,000 pa), a total increase (after concessions) of £40,000 pa.  At about the same time, the tenant became a subsidiary of Biffa, previously a FTSE 100 company, making the lettings in Tenbury Wells more beneficial.  Our factory in Huntingdon renewed its lease for 15 years (just after the year-end) rising from £175,000 pa to £290,000 pa at the fifth year.

At Chorley one of our tenants took a new lease on one factory unit and took an extra unit making £91,000 pa rent as against £48,000 pa previously. A former Beales unit in St Neots was partially taken by Pure Gym for 15 years at a rent of £98,150 pa after an initial rent concession.

Our rental income is increasing, some of it in part due to the refurbishing works in some of our larger vacant units, resulting in more manageable and attractive smaller units which can appeal to a greater number of potential users. 

Interest Costs

Our interest costs were approximately £500,000 lower in 2025 than the year ending 31 December 2024 due to significant de-gearing at the beginning of 2025 and due to our bank loans having lower margins, for the whole of 2025, following the refinance that was completed in March 2024.

We take this opportunity again to thank our lenders, HSBC and Santander, who have been our partners together for 46 years and 16 years respectively. 

Bad Debts

Bad debts for the year ended 31 December 2025 were £261,000 compared to £526,000 in 2024, a pleasing reduction.

Property Values

The Directors arranged for external valuers to value most of the Group's property portfolio as at 31 July 2025, which was mainly adopted by the Directors for the valuation at 31 December 2025 and shows an increase in fair value of £3,209,000.

Derivative Value

At 31 December 2025, the value of our derivative financial assets was £4,695,000, which represented a reduction of value since last year of £1,075,000.

Property Sales

In February 2025 we sold our freehold site in Wolverhampton which included Charles House, Premier House and 78 Darlington Street.  This property was purchased in August 2010 for £1,560,000. It was a mixed-use group of older buildings with approximately 70,000 sq. ft. of occupiable space on 1.2 acres of city centre land.  When purchased it produced rents of £278,000 pa (£195,000 after costs) and was viewed as a development site due to its size and location.  The Group managed to maintain a high level of income for almost its entire ownership.  Prior to sale it was producing rent of £122,000 pa (and £80,000 after costs).  The price achieved was £2,500,000 which we considered a good price.

Property Purchase

The freehold of 134-136 Above Bar Street, Southampton was purchased at auction in March 2025 for £253,000, formerly owned by Southampton Borough Council.  We already owned the long leasehold interest with circa 85 years remaining at a ground rent of £12,225 being fixed at 15% of the rents receivable, out of a current total of £81,500 pa.  We now no longer have an issue of having a depreciating asset thus also allowing development if in the future a residential scheme in the upper parts is deemed profitable.

General Letting Market

As previously mentioned, we have several useful lettings well in hand which should help increase our rental income for future years and have the extra benefit of reducing carrying costs.  Some of these are subject to us completing substantial refurbishment works for the tenants' agreed requirements.

As of 31 December 2025, our net asset value has increased to 672p per share which is an increase of approximately 3p per share from December 2024 of 669p (although we did pay a special dividend during the period in October 2025 which reduced the potential increase).

As announced on 5 September 2025, the purchaser of our former Beales store in Peterborough paid the first £500,000 of the contracted deferred payment.  This was paid two weeks earlier than contractually agreed, which gives us confidence that the next £500,000 payment, due in June 2026, should be met.

Post balance sheet events

In February 2026 the Group purchased 50,000 of its own ordinary shares, through the market, to be held in treasury.  42,500 of these shares were purchased from related parties.

In March 2026 the Group restructured its financial derivative with HSBC, having a nominal value of £35,000,000 providing a fixed interest rate of 3.40%, via the cancellation of the existing contract and entering into a new contract, so that this interest rate swap will now end on 1 September 2031 rather than the original end date of 1 September 2038. This has resulted in a cash settlement of £2.06 million being received by the Company.

In March 2026 the Group paid back £1,945,000 of its loan facility (using disposal proceeds). These funds can be redrawn.

In April 2026 we completed on the disposal of two shops in Widnes to two different parties - sold at Public Auction.  This generated cash on the disposals of £284,000 before costs resulting in a circa £80,000 profit on book value.  One of the shops was purchased by a related party.

In April 2026 the Group announced that Peter Kellner and Bryan Galan, Non-Executive Directors, would retire as directors on 17 June 2026.

Charitable Donations

We continue to support several charities, especially ones local to areas in which we operate and have interests in.

Political Donations

At last year's AGM I proposed a resolution for the Company to donate £25,000 to the Reform UK political party and this was successfully passed by shareholders by both the number of affirmative voters and total of their shareholding, as always with myself abstaining from voting my personal holdings.  I have once again asked for this Resolution to be submitted to shareholders, although this year I have reserved the right to vote part of my personal shareholding to neutralise an institutional shareholder that may vote against as they have their own neutrality rules and thus most individual shareholders will be the deciders.

I continue my previously stated opinion that most business problems are caused by poor government policies on taxation and legislation.

The current Labour government have followed through on their foolish, vindictive and drastic anti-business taxes on employment with harmful policies for savings, farmers, strivers and successful entrepreneurs, which are particularly hard on those who save or invest for the future to avoid becoming a burden on the state in old age.

They have continued to disallow VAT rebates on expensive purchases by overseas tourists, so now most of these high spending tourists spend their money in other major cities such as Paris, Milan or Barcelona etc., providing significant extra tax receipts to those countries.  This produces a loss of tourism and spending on hotels etc. in the UK, which would be of substantial benefit to the UK's hospitality industry which is suffering badly from the poor tax decisions loaded upon them by what I consider to be an incompetent government.

The current government has still not addressed the ridiculous inadequacies of business rates, the cause of so many problems as well as part of the collapse of long-established businesses.  They encouraged second homes being charged double Council Tax for lower service levels, which are already causing financial problems for many seaside beauty spot towns, depriving them of 'broad shoulder' spending. 

We still receive poor and slow service from practically every bureaucratic government department, without any sign of an attempt to address the problems other than encouraging a four-day week and informing taxpayers that our bureaucrats are happier and thus working better.  What tosh!

This government has increased the tax burden and are already turning what was a slowly recovering economy into what I consider will likely become a rapidly sliding downturn and is ill prepared for the additional problems caused by wars in other territories.

The Taxpayers' Alliance provided research that exposed that up to 25% of many of our council taxes go towards the gold-plated pensions of the bureaucrats who serve us so badly, whilst the taxpayers of the private sector have employers who are rarely able to provide such largesse in pensions.  It was recently revealed that the civil service needs £57 billion annually to pay all public sector workers their promised pensions.  This seems to be enough to cover the black holes of the previous two budgets and possibly fill in the potholes in our roads!

Dividends

The Company is declaring a final dividend for the year ended 31 December 2025 of 6p per share.  As we are in a stronger financial position than for some time, we paid a special dividend of 10p per share, also an interim dividend of 6p per share, both of which were paid on the 29 October 2025 to shareholders on the register at 10 October 2025.

The final dividend of 6p per share will be payable on 15 July 2026 to shareholders on the register at the close of business on 26 June 2026 (Ex dividend on 25 June 2026).

I repeat my thanks to our small but dedicated team of staff, growing team of financial advisers, legal advisers, agents and accountants for all their hard work during the period.

Special thanks and good wishes go to our tenants, many of whom are comparatively small entrepreneurial businesses, and I hope they can continue to manage through the present business climate with the excess burdens placed upon them by rapacious government taxes which we hope are only temporary.

Non-Executive Directors

Shareholders will notice that Bryan Galan and Peter Kellner, who have been Non-Executive Directors since June 1994, are retiring after our 2026 AGM.

Both joined when 'Panther' obtained a renewal of its then full listing on the London Stock Exchange in June 1994, having originally been first listed in 1934 as Levers Optical Company, subsequently taken over by myself, my brother and Malcolm Bloch, my business partner in 1972 after our contested takeover where we transformed the company to a successful property company.

I first met Bryan over 10 years earlier at Marcus Leaver & Co and Peter at our then bank 10 years after that and was thus well aware of their particular skills and qualities worthy of inviting them to join our Board.

On behalf of all our shareholders I would like to thank them both for the quality of their guidance, for their undoubted loyalty and reliability, and for their constant support for Panther over many years.

Once again, I repeat I do not feel I can do justice to the incompetence of the present Government and certainly cannot present the problems created by them any better than many journalists, especially of the Daily Mail and Daily Telegraph who have forcefully expanded on subjects which I have highlighted about bureaucratic foolishness in my Chairman's Ramblings briefly over the last 20 years or so.  This time the Ramblings have taken a slightly different direction.  I will be sending shareholders a copy of my Ramblings of 2004 "What A Shambles" with a few comments on any changes for the better or worse.  If nothing else, it will help you get to sleep if read as bedtime reading!

This is being sent separately in my personal capacity, as it reflects my personal opinions, and our advisors have often felt these may not be suitable for announcing via a regulatory information service. Copies are available upon request as nominee holders do not automatically always receive printed accounts.   

Andrew S Perloff

CHAIRMAN

13 May 2026

GROUP STRATEGIC REPORT

The Directors present their Strategic Report for the year ended 31 December 2025.

About the Group

Panther Securities P.L.C. ("Panther", the "Company" or the "Group") is a property investment and development company quoted on AIM. The Company has a long-established history as a public company, having first listed in 1934.

The Group owns and manages a substantial and diversified portfolio of commercial and residential property assets throughout the United Kingdom. The portfolio comprises approximately 900 individual occupational units within around 120 separately designated buildings.

The Group invests principally in secondary retail, industrial and office property together with residential assets, with a focus on opportunities where active management, refurbishment, redevelopment or planning enhancement can create additional shareholder value.

The majority of the Group's asset management, property management and lettings activities are undertaken in-house, enabling close control over costs, tenant relationships and investment performance.

Strategic objective

The Group's principal objective is to maximise long-term shareholder returns through growth in net asset value and dividends, supported by recurring rental income and selective capital appreciation.

Its strategy is based on:

·      maintaining a diversified portfolio by geography, sector and tenant exposure;

·      acquiring assets where management believes value can be enhanced;

·      in-house asset management to improve rents, occupancy and asset quality;

·      recycling capital through disposals where value has been realised;

·      maintaining prudent gearing and strong banking relationships; and

·      preserving financial flexibility to take advantage of market opportunities.

The Board believes this disciplined and opportunistic approach has served shareholders well over many market cycles.

Progress indicators

The Board monitors performance using a range of financial and operational metrics, including:

Key ratios and measures

	2025	2024	2023	2022
Gross profit margin (gross profit/ turnover)	57%	55%	54%	57%
Loan to value*	35%	38%	39%	39%
Interest cover (actual) *	362%	299%	317%	297%
Finance cost rate (finance costs excluding lease portion/ average borrowings for the year)	5.3%	5.8%	6.7%	7.0%
Yield (rents from investment properties/ average market value investment properties)	8.6%	8.4%	8.4%	8.2%
Net assets value per share	672p	669p	640p	637p
Earnings per share - continuing	24.5p	38.4p	25.3p	96.6p
Dividend per share**	22.0p	12.0p	22.0p	12.0p
Investment property acquisitions	£0.3m	£0.3m	£3.4m	£8.9m
Investment property disposal proceeds	£4.8m	£4.5m	£1.0m	£1.2m

* As reported to the Lenders - based on charged property rents, borrowed funds and bank valuations as appropriate. 

** Based on those declared and proposed for the year.

The Board considers growth in net assets over time, sustainable earnings, dividend capacity and prudent leverage to be the most relevant indicators of long-term progress.

Business review

The Group delivered a resilient performance for the year ended 31 December 2025 despite continued economic uncertainty, persistent inflationary pressures in certain cost areas and a relatively elevated interest rate environment.

Rental income increased to £14.85 million (2024: £14.66 million), reflecting lettings activity, rent reviews, lease renewals and the benefits of continued active management across the portfolio.

Profit before tax for the year was £5.56 million (2024: £8.67 million). The reduction compared with the prior year principally reflects lower gains, including movements in derivative valuations and disposal profits recorded in 2024.

Profit after taxation amounted to £4.25 million (2024: £6.69 million), while total comprehensive income for the year was £4.26 million (2024: £6.70 million).

Net assets increased to £116.6 million (2024: £116.2 million), equivalent to 672 pence per share (2024: 669 pence per share). The Group currently shows a large discount when comparing its prevailing share price to its current net asset value, and the Board believes this is mainly due to a lack of transactions in its shares.    

The Board is pleased that the Group has continued to strengthen its balance sheet, grow net asset value and maintain an attractive dividend distribution, whilst reducing gearing, notwithstanding a more challenging market backdrop.

Going forward

Whilst the outlook appears there will be mainly negative economic head-winds, in these clearly uncertain times, we see our relatively small business as a safe haven for investors. 

Our medium term trends still show we are experiencing rental growth, some of this is from renting long-term vacant properties and the rest from improved rental terms.  Going forward over the next few years we hope this continues, but at worst we should be able to maintain income.  One of the ongoing important issues for the Group is to control the holding and maintenance costs of our properties. An action we are taking is to sell some properties in the year that we consider have less upside (and some with higher holding costs), and the ones we sold with rental income we believe have more downside than potential.  In terms of costs, we continue to monitor them with our systems and where possible look to phase our works programmes.  When we manage or control and/ or phase our costs more effectively, we have the ability with long term income rental streams and fixed interest rate costs to increase Group profitability. 

We continue to improve the energy efficiency of our buildings, where possible, to keep them in line, or even ahead of the EPC ("energy performance certificate") regime requirements.  We have now got to a comfortable level in terms of the longer term viability of our properties, with our latest review showing that just under 76% of our income is being generated from properties with EPC grading C and above. 

We are working on opportunities to unlock value within our portfolio, both in terms of letting more of the vacant properties, selling properties where appropriate to recycle the cash, adding additional residential units by reproposing upperparts and selling long term vacant properties (often following achieving planning).

The economy continues to be a relatively high-interest rate environment, compared to post financial crisis periods, inflation was getting under control in 2025 but due to oil prices is now increasing.  With likely stubborn inflation together with the backdrop of higher taxes, slower global growth, cuts to benefits, job losses and higher government borrowing there continues to be a lot of downside risk to the economy.  The Group has fixed its interest rate swaps which will protect us from interest rate increases.  The nature of property companies gives the Group some built in natural hedge over inflation, as property investments tend to increase in line with inflation, whilst the real value of loans utilised effectively decreases.

Our Group benefits from an excellent spread of assets, producing multiple income streams, financed by secured long term loans, at low gearing, fixed at attractive levels all run by an experienced management team.  So whilst we continue to operate within politically and globally uncertain times, this does not hugely concern the Board as we are set up to find opportunities and our business model seeks to protect shareholder value.

The Board is confident about the business prospects going forward.

Financing and treasury

The Group has a Loan facility of £68 million, split between a £55 million term loan and a £13 million revolving facility. The facility had two years and 3 months to remaining term at the year end (with an option of a one year extension subject to credit approval).   The interest rate payable is 2.3 per cent. over three-month SONIA with a ratchet that can take it to 2.5 per cent over three-month SONIA in certain circumstances.

The Group had drawn £57m at the year end which was reduced post year end, in April 2026, meaning, only the term element was drawn of £55m.  A swap cancelation premium was used to reduce gearing in March 2026.

Loan to value at the year end was 35%, providing significant covenant headroom and financial resilience.  The Board continues to believe prudent gearing is appropriate given the cyclical nature of property markets and the opportunities that can arise during periods of market dislocation.

The Group also benefits from long-standing relationships with its lenders, HSBC UK Bank plc and Santander UK plc.

The Group had £5.9 million of cash funds at the year end, and currently has the ability to draw an additional £13.0 million (available via the revolving loan facility).

Financial derivative

The Group is in a fortunate position whereby it will continue to benefit from existing interest rate swap arrangements, which provide effective fixed interest rate protection, that is significantly below the current SONIA rates, in relation to £60 million of its £68 million facility. The Group's interest rate swaps provide a fixed interest rate of 3.40 per cent. in relation to £35 million of the new facility and a fixed interest rate of 2.01 per cent. in relation to £25 million of the new facility. The durations of the Group's existing swaps are beyond the term of the current facility.

The Group has seen a fair value loss (of a non-cash nature) in our long term liability on derivative financial instruments of £1.075 million (2024: a gain of £3.27 million).  Following this gain the total financial derivative balance is an asset on our Consolidated Statement of Financial Position of £4.7 million (2024: £5.8 million asset). 

Derivative valuations may fluctuate materially between reporting dates depending on market expectations for future interest rates. Such movements are non-cash in nature unless realised.

Post year end, in March 2026 the Group restructured its financial derivative with HSBC, having a nominal value of £35,000,000 providing a fixed interest rate of 3.40%, via the cancellation of the existing contract and entering into a new contract, so that this interest rate swap will now end on 1 September 2031 rather than the original end date of 1 September 2038. This has resulted in a cash settlement of £2.06 million being received by the Company.

The Board believes retaining appropriate hedging remains prudent in the current environment.

Financial risk management

The Company and Group's operations expose it to a variety of financial risks, the main two being the effects of changes in the credit risk of tenants and interest rate movement exposure on borrowings.  The Company and Group have in place a risk management programme that seeks to limit the adverse effects on the financial performance of the Company and Group by monitoring and managing levels of debt finance and the related finance costs. The Company and Group also use interest rate swaps to protect against adverse interest rate movements with no hedge accounting applied.  Mark-to-market valuations on our financial instruments have been historically erratic due to current low market interest rates and due to their long term nature. These large mark-to-market movements are shown within the Income Statement. 

On £60 million of the potential drawn loan at the year-end, the actual cash outlay effect is nil when considering the combined effect of the loan and the financial derivatives. This is because the instruments have been used to fix the risk of further cash outlays due to interest rate rises or can be considered as a method of locking in returns (the difference between rent yield and interest paid at a fixed rate). At the year end, the Company had repaid circa £3 million more of the loan compared to the fixed amount so this element is floating on the swap side.

Given the size of the Company and Group, the Directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the Board.  The policies set by the Board of Directors are implemented by the Company and Group's finance department. 

Credit risk

The Company and Group have implemented policies that require appropriate credit checks on potential tenants before lettings are agreed.  In many cases a deposit is requested unless the tenant can provide a strong personal or other guarantee. The amount of exposure to any individual counterparty is subject to a limit, which is reassessed annually by the Board. Exposure is reduced significantly due to the Group having a large spread of tenants who operate in different industries.

Price risk

The Company and Group are exposed to price risk due to normal inflationary increases in the purchase price of the goods and services it purchases in the UK.  The exposure of the Company and Group to inflation is considered low due to the low cost base of the Group and natural hedge we have from owning "real" assets.  Price risk on income is protected by the rent review clauses contained within our tenancy agreements and often secured by medium or long-term leases.

Liquidity risk

The Company and Group actively manage liquidity by maintaining a long-term finance facility, strong relationships with many banks and holding cash reserves.  This ensures that the Company and Group have sufficient available funds for operations and planned expansion or the ability to arrange such.

Interest rate risk

The Company and Group have both interest bearing assets and interest bearing liabilities.  Interest bearing assets consist of cash balances which earn interest at fixed rate when placed on deposit.  The Company and Group have a policy of only borrowing debt to finance the purchase of cash generating assets (or assets with the potential to generate cash).  We also use financial derivatives (swaps) where appropriate to manage interest rate risk.  The Directors revisit the appropriateness of this policy annually.

Principal risks and uncertainties of the Group

The successful management of risk is something the Board takes very seriously as it is essential for the Group to achieve long-term growth in rental income, profitability and value. The Group invests in long term assets and seeks a suitable balance between minimising or avoiding risk and gaining from strategic opportunities.  The Group's principal risks and uncertainties are all very much connected as market strength will affect property values, as well as rental terms and the Group's finance, or term loan, whose security is derived primarily from the property assets of the business.  The financial health of the Group is checked against covenants that measure the value of the property, as a proportion of the loan, as well as income tests. 

The two measures of the Group's finances are to check if the Group can support the interest costs (income tests) and also the ability to repay (valuation covenants).

The Group has a successful strategy to deal with these risks, primarily its long lasting business model and strong management.  This meant the Group has had little or no issues as it navigated the many economic shocks it has had to deal with over the last two decades including the 2008 banking crisis, Brexit, the COVID-19 crisis, the high interest rate/ high inflationary effect post covid-19/ Ukraine war consequences and Trump economics.  The Group currently sits with low gearing compared to historic levels.

Market risk

If we want to buy, sell or let properties there is a market that governs the prices or rents achieved.  A property company can get caught out if it borrows too heavily on property at the wrong time in the market, affecting its loan covenants. If loan covenants are broken, the Company may have to sell properties at non-optimum times (or worse) which could decrease shareholder value.  Property markets are very cyclical and we in effect have three strategies to deal with or mitigate the risk, but also take advantage of this opportunity:

1) Strong, experienced management means when the market is strong we look to dispose of assets and when it is weak we try and source bargains i.e. an emergent strategy also called an entrepreneurial approach. 

2) The Group has a diversified property portfolio and maintains a spread of sectors over retail, industrial, office and residential. The other diversification is having a spread regionally, of the different classes of property over the UK. Often in a cycle not all sectors or locations are affected evenly, meaning that one or more sectors could be performing stronger, maybe even booming, whilst others are struggling. The stronger performing investment sectors provide the Group with opportunities that can be used to support slower sectors through sales or income.

3) We invest in good secondary property, which tends to be lower value/cost, meaning we can be better diversified than is possible with the equivalent funds invested in prime property. There are not many property companies of our size that have circa 900 individual units and circa 120 buildings/ locations. Secondary property also, very importantly, is much higher yielding which generally means the investment generates better interest cover and its value is less sensitive to market changes in rent or loss of tenants.

Property risk

As mentioned above, we invest in most sectors in the market to assist with diversification.  Many commentators consider the retail sector to be in period of severe flux, considerably affected by changing consumer habits such as internet shopping as well as a preference for experiences over products.  Of the Group's investment portfolio, retail makes up the largest sector being circa 60 to 65% by income generation.  However, the retail sector is affected to lesser degrees in what we would describe as neighbourhood parades, as opposed to traditional shopping high streets.  The large part of our retail portfolio is in these neighbourhood parades, meaning we are less affected by consumer habits and even benefit from some of the changes.  Neighbourhood parades provide more leisure, services and convenience retail.

For example we have undertaken a few lettings to local or smaller store formats, to big supermarket chains, which would not have taken place many years ago.  Block policy is another key mitigating force within our property risks.  Block policy means we tend to buy a block rather than one off properties, giving us more scope to change or get substantial planning permission if our type of asset is no longer lettable.  The obvious example is turning redundant regional offices into residential.  In addition by having a row of shops, we can increase or reduce the size of retail units to meet the current requirements of retailers. 

Finance risk

The final principal risk, which ties together the other principal risks and uncertainties, is that if there are adverse market or property risks then these will ultimately affect our financing, making our lenders either force the Group to sell assets at non-optimal times, or take possession of the Group's assets.  The management, business model and diversification factors described above help mitigate against property and market risks, which as a consequence mitigate our finance risk. 

The main mitigating factor is to maintain conservative levels of borrowing, or headroom to absorb downward movements in either valuation or income cover. The other key mitigating factor is to maintain strong, honest and open relationships with our lenders and good relationships with their key competitors.  This means that if issues arise, there will be enough goodwill for the Group to stay in control and for the issues to resolve themselves and hopefully

remedy the situation.  As a Group we also hold uncharged properties and cash resources, which can be used to rectify any breaches of covenants. 

Other non-financial risks

The Directors consider that the following are potentially material non-financial risks:

Risk	Impact	Action taken to mitigate
Reputation	Ability to raise capital/ deal flow reduced	Act honourably, invest well and be prudent.
Regulatory changes	Transactional and holding costs increase	Seek high returns to cover additional costs. Lobby Government -"Ramblings". Use advisers when necessary.
People related issues	Loss of key employees/ low morale/ inadequate skills	Maintain market level remuneration packages, flexible working and training. Strong succession planning and recruitment. Suitable working environment.
Computer failure/ cyber security	Loss of data, debtor history	External IT consultants, backups, offsite copies. Latest virus software and IT systems. Educate employees.
Asset management	Wrong asset mix, asset illiquidity, hold cash	Draw on wealth of experience to ensure balance between income producing and development opportunities.  Continued spread of tenancies and geographical location.  Prepare business for the economic cycles.
Acts of God (e.g. COVID 19)	Weather incidents, fire, terrorism,  pandemics	Where possible cover with insurance.  Ensure the Group carry enough reserves and resources to cover any incidents.

Section 172(1) statement

This is a reporting requirement and relates to companies defined as large by the Companies Act 2006, this includes public companies as otherwise the Group would not be considered large.

Each individual Director must act in the way he considers, in good faith, would be the most likely to promote the success of the company for benefit of its members as a whole, and in doing so the Directors have had regard to the matters set out in section 172(1) (a) to (f) when performing their duty under section 172. 

The matters set out are:

(a) the likely consequences of any decision in the long term;

The longer term decisions are made at Board level ensuring a wealth of experience and a breadth of skills.  The value creation in the business is mainly generated by buying the investments at the right time in the financial cycles, whilst reducing risk by choosing assets that have alternative or back up values to the current use, as well as initial values. It is also key that long term decisions are made in respect of ensuring that property assets are well maintained, where economically viable.  Other areas to ensure decisions are in tune with long term consideration are making sure the best possible financing of the Group to match the requirements of the long-term nature of property ownership.  The Board and management makes long term decisions such as keeping a vigilant review of the changing nature of property usage and tries where possible to diversify its income streams.  Chorley, Peterborough (Padholme Rd) and Trowbridge as purchases are good examples, i.e. both industrial property investments - giving protection against changing consumer habits within retail (which is a larger component of the current portfolio) through diversification/ rebalancing the portfolio.  In 2025 and 2026 the Group sold retail assets in Wolverhampton, Ayr, Billericay and Widnes which the Board believed had a weaker outlook.     

(b) the interests of the company's employees;

The Company makes investment in and the development of talent of its employees, including paying for professional development, providing in house updates and encouraging knowledge sharing.  The Group has a strong track record of promoting from within the business and both our Property Director and Head of Property qualified and trained for their RICS whilst employed at the Group, who fully supported their training.  In 2021 the Finance Director was promoted to Chief Executive.  The Group undertakes team building activities to encourage cohesion and working together.

(c) the need to foster the company's business relationships with suppliers, customers and others;

Being in the property industry the business is used to dealing with many types of businesses as tenants from large multi-national businesses to small sole traders - keeping good sound relationships with both is key.  We also use many small operators and suppliers and we ensure prompt payment, paying within 30 days in most instances to again foster good working relations.  We maintain weekly payment runs to support small suppliers.

(d) the impact of the company's operations on the community and the environment;

The Group's investments by their very nature often have a significant impact on local communities, providing services and convenience businesses, or places for local enterprise or employment.  By owning a parade of shops, we can ensure where possible that these are viable locations by encouraging a variety of traders.  The Group maintains and upkeeps its investment properties to a viable level which benefits the local communities they provide accommodation for, or seeks improvements in planning permission which can enhance local areas.  We have recently brought in DocuSign for leases and other agreements dealt with inhouse which have a beneficial environmental impact with less paper and carbon being produced on the delivery of the documents.  We also ensure we upgrade our units to the required EPC levels which by its very nature reduces the longer term environmental impact of the use of these units. Our small fleet of cars are all electric vehicles.

(e) the desirability of the company maintaining a reputation for high standards of business conduct;

The Group maintains an appropriate level of Corporate Governance that is documented within its own section within these Financial Statements and on the Company's website.  With a relatively small management team it is easier to monitor and assess the culture and encourage the appropriate standards.  The Board strives to delegate and empower its management teams to ensure the high standards are maintained at all levels within the business.  In recent years we strengthened the Board the appointments of two non-executive directors with current relevant external knowledge of banking and surveying/ valuation.

(f) the need to act fairly as between members of the company.

The Group has excellent communication with its members, actively encouraging participation and discussion at its AGMs and also circulating letters of our announcements to ensure older members or those not accessing the financial news can keep up to date with relevant information.  Our Chairman is unpaid, his benefit or income from the Company is received via dividends pro-rata the same as all members including minority shareholders.

The Group Strategic Report set out on the above pages, also includes the Chairman's Statement shown earlier in these accounts and was approved and authorised for issue by the Board and signed on its behalf by:

S. J. Peters

Chief Executive Officer

Unicorn House

Station Close

Potters Bar

Hertfordshire EN6 1TL                                                          13 May 2026

CONSOLIDATED INCOME STATEMENT For the year ended 31 December 2025

	Notes	31 December 2025	31 December 2024
		£'000	£'000
Revenue		14,850	15,047
Cost of sales		(6,456)	(6,704)
Gross profit		8,394	8,343
Other income		255	794
Administrative expenses		(1,846)	(1,659)
Bad debt expense		(261)	(526)
Operating profit		6,542	6,952
Profit on disposal of investment properties		507	1,296
Movement in fair value of investment properties		3,209	1,300
		10,258	9,548
Finance costs - interest		(4,674)	(5,722)
Finance income - swap interest		893	1,422
Investment income		158	158
Fair value (loss)/ gain on derivative financial liabilities		(1,075)	3,265
Profit before income tax		5,560	8,671
Income tax expense		(1,307)	(1,984)
Profit for the year		4,253	6,687
Continuing operations attributable to:
Equity holders of the parent		4,253	6,687
Profit for the year		4,253	6,687
Earnings per share
Basic and diluted - continuing operations	3	24.5p	38.4p

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the year ended 31 December 2025

	Notes	31 December 2025	31 December 2024
		£'000	£'000
Profit for the year		4,253	6,687
Items that will not be reclassified subsequently to profit or loss
Movement in fair value of investments taken to equity		(3)	18
Deferred tax relating to movement in fair value of
investments taken to equity		1	(4)
Realised fair value on disposal of investments previously taken to equity		17	-
Realised deferred tax relating to disposal of investments previously taken to equity		(4)	-
Other comprehensive income for the year, net of tax		11	14
Total comprehensive income for the year		4,264	6,701
Attributable to:
Equity holders of the parent		4,264	6,701

CONSOLIDATED STATEMENT OF FINANCIAL POSITION Company number 00293147 As at 31 December 2025
	Notes	31 December 2025	31 December 2024
ASSETS		£'000	£'000
Non-current assets
Plant and equipment		20	47
Investment properties	4	181,449	182,204
Derivative financial asset	6	4,155	4,945
Right of use asset		146	179
Investments		36	201
		185,806	187,576
Current assets
Stock properties		101	101
Derivative financial asset		540	825
Trade and other receivables		3,999	4,630
Cash and cash equivalents (restricted)		188	2,604
Cash and cash equivalents		5,738	5,038
		10,566	13,198
Total assets		196,372	200,774
EQUITY AND LIABILITIES
Capital and reserves
Share capital		4,437	4,437
Share premium account		5,491	5,491
Treasury shares		(1,132)	(1,088)
Capital redemption reserve		572	572
Retained earnings		107,193	106,748
Total equity		116,561	116,160
Non-current liabilities
Borrowings	5	56,126	61,401
Deferred tax liabilities		5,598	5,232
Leases		8,117	8,190
		69,841	74,823
Current liabilities
Trade and other payables		8,661	9,341
Borrowings	5	375	-
Current tax payable		934	450
		9,970	9,791
Total liabilities		79,811	84,614
Total equity and liabilities		196,372	200,774

The accounts were approved by the Board of Directors and authorised for issue on 13 May 2026. They were signed on its behalf by:

A.S. Perloff, Chairman

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 31 December 2025

	Share	Share	Treasury	Capital	Retained	Total
	Capital	premium	shares	redemption	earnings
	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 1 January 2024	4,437	5,491	(772)	572	102,144	111,872
Total comprehensive income	-	-	-	-	6,701	6,701
Dividends	-	-	-	-	(2,093)	(2,093)
Treasury shares purchased	-	-	(316)	-	-	(316)
Consolidation adjustments	-	-	-	-	(4)	(4)
Balance at 1 January 2025	4,437	5,491	(1,088)	572	106,748	116,160
Total comprehensive income	-	-	-	-	4,264	4,264
Dividends	-	-	-	-	(3,819)	(3,819)
Treasury shares purchased	-	-	(44)	-	-	(44)
Balance at 31 December 2025	4,437	5,491	(1,132)	572	107,193	116,561

CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 December 2025

		31 December 2025	31 December 2024
		£'000	£'000
Cash flows from operating activities
Operating profit		6,542	6,952
Add: Depreciation		27	27
Add: Finance lease depreciation		275	514
Add: Loss on current assets investments		-	9
Rent paid - treated as interest		(680)	(657)
Profit before working capital change		6,164	6,845
Decease in stock properties		-	249
Decrease/ (increase) in receivables		289	(397)
(Decrease)/ increase in payables		(413)	838
Cash generated from operations		6,040	7,535
Interest paid		(2,901)	(3,366)
Income tax paid		(460)	(572)
Net cash generated from operating activities		2,679	3,597
Cash flows from investing activities
Purchase of investment properties		(261)	(308)
Purchase of plant and equipment		-	(32)
Proceeds from sale of investment property		4,769	4,483
Proceeds from sale of investments**		179	-
Dividend income received		7	5
Interest income received		146	153
Net cash generated from investing activities		4,840	4,301
Cash flows from financing activities
Draw down of loan		-	1,375
Repayments of loans		(5,100)	(3,455)
Loan amortisation repayments		-	(125)
Purchase of own shares		(44)	(316)
Loan arrangement fees and associated set up costs		(272)	(794)
Dividends paid		(3,819)	(2,093)
Net cash (used)/generated from financing activities		(9,235)	(5,408)
Net (decrease)/ increase in cash and cash equivalents		(1,716)	2,490
Cash and cash equivalents at the beginning of year*		7,642	5,152
Cash and cash equivalents at the end of year*		5,926	7,642

* Of this balance £188,000 (2024: £2,604,000) is restricted by the Group's lenders i.e. it can only be used for purchase of investment property.

** Shares in listed and/or unlisted companies. 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2025

1.   General information

While the financial information included in this preliminary announcement has been prepared in accordance with International Financial Reporting Standards (IFRSs), this announcement does not itself contain sufficient information to comply with IFRSs.  The Group will publish full financial statements that comply with IFRSs which will shortly be available on its website and are to be posted to shareholders shortly.

The financial information set out in the announcement does not constitute the Company's statutory accounts for the years ended 31 December 2025 or 2024.

The financial information for the year ended 31 December 2025 is derived from the audited statutory accounts for the year ended 31 December 2025 on which the auditors have given an unqualified report, that did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006.  The statutory accounts will be delivered to the Registrar of Companies following the Company's annual general meeting.

The accounting policies adopted in the preparation of this preliminary announcement are consistent with those set out in the latest Group Annual financial statements.

Going Concern

The Directors have prepared two detailed financial forecasts both to December 2028, one which is assuming a significant downward trend in its income base including loss of a major tenant, inflation leading to increasing costs, higher interest rates, worsening bad debts and no major disposals.  This forecasted worst-case scenario demonstrated the Group is a going concern even if the business was subjected to a long downward spiral in its business activities. In summary, the Group's forecasts show that it has enough financial resources to survive to beyond December 2028. 

The Group is strongly capitalised, has high liquidity together with a number of long-term contracts with its customers many of which have strong covenants.  The Group has a diverse spread of tenants across most industries and owns investment properties based in many locations across the country.

The Group's main loans were renewed in March 2024 for a new four year term with the ability to extend for an additional year (subject to bank approval).  The Group always maintains excellent relations with its lenders. The loan is made jointly by two lenders and has a low level of gearing which both give the Group's financial position more resilience. 

The lenders' covenants as at 31 December 2025 have been reviewed and significant movements would be required before a covenant was breached such as a 36% decrease in the secured portfolio valuation (a circa £57 million reduction) or 50% decrease in its actual income cover being circa £6.5 million reduction in income. The Group also currently has cash reserves (and available funds under its loan facility) and other uncharged assets (including circa £12 million of investment property). 

2.   Dividends

Amounts recognised as distributions to equity holders in the period:

	2025 £'000	2024 £'000
Interim dividend for the year ended 31 December 2025 of 6p per share (2024: 6p per share)	1,042	1,046
Final dividend for the year ended 31 December 2024 of 6p per share (2023: 6p per share)	1,042	1,047
Special dividend for the year ended 31 December 2025 of 10p per share	1,735	-
	3,819	2,093

The Directors recommend a payment of a final dividend for the year ended 31 December 2025 of 6p per share, following an interim dividend of 6p per share and a special dividend of 10p per share, both paid on 29 October 2025.  The final dividend of 6p per share will be payable on 15 July 2026 to shareholders on the register at the close of business on 26 June 2026 (Ex dividend on 25 June 2026).

The total dividend for the year ended 31 December 2025 is therefore anticipated to be 22p per share, subject to shareholder approval, being the 6p interim per share and 10p special per share paid and the recommended final dividend of 6p per share.

3.   Earnings per ordinary share (basic and diluted) The calculation of profit per ordinary share is based on the profit, being a profit of £4,253,000 (2024 - £6,687,000) and on 17,361,429 ordinary shares being the weighted average number of ordinary shares in issue during the year excluding treasury shares (2024 - 17,420,429).  There are no potential ordinary shares in existence. The Company holds 393,000 (2024 - 378,000) ordinary shares in treasury.

4.   Investment properties

	Investment properties
	£'000
Fair value
At 1 January 2024	185,169
Additions	308
Disposals	(4,195)
Fair value adjustment on investment properties held on leases	(378)
Revaluation increase	1,300
At 1 January 2025	182,204
Additions	261
Disposals	(3,919)
Fair value adjustment on investment properties held on leases	(306)
Revaluation increase	3,209
At 31 December 2025	181,449
Carrying amount
At 31 December 2025	181,449
At 31 December 2024	182,204

5.   Bank loans

	2025	2024
	£'000	£'000
Bank loans due within one year	375	-
(within current liabilities)
Bank loans due after more than one year	56,126	61,401
(within non-current liabilities)
Total bank loans	56,501	64,101

	2025	2025	2025	2024
Analysis of debt maturity	£'000	£'000	£'000	£'000
	Interest*	Capital	Total	Total
Bank loans repayable
On demand or within one year	3,289	375	3,664	4,241
In the second year	3,263	500	3,763	4,603
In the third year to the fifth year	810	55,626	56,436	70,416
	7,362	56,501	63,863	79,260

*based on the 3 month SONIA floating rate charged in Dec 25 - 3.54%. 

On 28 March 2024, the Group refinanced by completing a new facility of £68 million, split between a £55 million term loan and a £13 million revolving facility. The new facility has a four-year term (with a further one-year option to extend subject to credit approval). The interest rate payable is 2.3 per cent. over three month SONIA with a ratchet that can take it to 2.5 per cent over three month SONIA in certain circumstances. 

HSBC and Santander remain as the joint providers of the new facility.

The bank loans are secured by first fixed charges on the properties held within the Group and floating asset over all the assets of the Company.  The lenders have also taken fixed security over the shares held in the Group undertakings.

The estimate of interest payable is based on current interest rates and as such, is subject to change.

The Directors estimate the fair value of the Group's borrowings, by discounting their future cash flows at the market rate (in relation to the prevailing market rate for a debt instrument with similar terms).  The fair value of bank loans is not considered to be materially different to the book value.  Bank loans are financial liabilities.

The fair value of the loan held at amortised cost at 31 December 2025 was £56,501,000 (2024 - £64,101,000). The Group has the following bank covenants that are reported for the quarters to 1 March, 1 June, 1 September and 1 December:

6.   Derivative financial instruments

The main risks arising from the Group's financial instruments are those related to interest rate movements. Whilst there are no formal procedures for managing exposure to interest rate fluctuations, the Board continually reviews the situation and makes decisions accordingly. Hence, the Company will, as far as possible, enter into fixed interest rate swap arrangements. The purpose of such transactions is to manage the cash flow risks associated with a rise in interest rates but does expose it to fair value risk.

	2025		2024
Bank loans	£'000		£'000
Interest is charged as to:		Rate		Rate
Fixed/ Hedged
HSBC Bank plc*	35,000	5.70%	35,000	5.70%
HSBC Bank plc*	25,000	4.31%	25,000	4.31%
Unamortised loan arrangement fees	(444)		(644)
Floating element
HSBC Bank plc	(3,055)		2,045
	56,501		61,401

Bank loans totalling £60,000,000 (2024 - £60,000,000) are fixed using interest rate swaps removing the Group's exposure to fair value interest rate risk. Other borrowings are arranged at floating rates, thus exposing the Group to cash flow interest rate risk.

Financial instruments for Group and Company

	Hedged amount	Average rate	Duration of contract remaining	2025 Fair value	2024 Fair value
	£'000		'years'	£'000	£'000
Derivative Financial Asset/ (Liability)
Interest rate swap	35,000	3.40%	12.69	2,499	2,867
Interest rate swap	25,000	2.01%	6.92	2,196	2,903
				4,695	5,770
Net fair value (loss)/gain on derivative financial assets				(1,075)	3,265

*The rates shown includes a 2.3% margin (2024 - 2.3%). Neither contracts include break options in the term but are repayable on a cessation of lending.

7.   Events after the reporting date

In February 2026 the Group purchased 50,000 of its own ordinary shares, through the market, to be held in treasury.  42,500 of these shares were purchased from related parties.

In March 2026 the Group restructured its financial derivative with HSBC, having a nominal value of £35,000,000 providing a fixed interest rate of 3.40%, via the cancellation of the existing contract and entering into a new contract, so that this interest rate swap will now end on 1 September 2031 rather than the original end date of 1 September 2038. This has resulted in a cash settlement of £2.06 million being received by the Group.

In March 2026 the Group paid back £1,945,000 of the loan facility (using disposal proceeds), these funds can be redrawn.

In April 2026 the Group completed on the disposal of two shops in Widnes to two different parties - sold at Public Auction.  This generated cash on the disposals of £284,000 before costs resulting in a circa £80,000 profit on book value.  One of the shops was purchased by a related party.

In April 2026 the Group announced that Peter Kellner and Bryan Galan, Non-Executive Directors, would retire as directors on 17 June 2026.

8.   Copies of the full set of Report and Accounts

Copies of the Company's report and accounts for the year ended 31 December 2025, which will be posted to shareholders shortly, will be available from the Company's registered office at Unicorn House, Station Close, Potters Bar, Hertfordshire, EN6 1TL and will be available for download on the Group's website www.pantherplc.com.

The 92^nd Annual General Meeting of Panther Securities P.L.C. is planned to be held on 17 June 2026 in the Oslo Court, Charlbert Street, St John's Wood, NW8 7EN at 11.15 am.

Panther Securities PLC	[phone]
Andrew Perloff, Chairman
Simon Peters, CEO & Finance Director

Allenby Capital Limited                                                                          [phone]

(Nominated Adviser and Joint Broker)

Alex Brearley

 

END