Final results for the year ended 30 June 2026

Town Centre Securities PLC

15 October 2026

 

15 October 2026

TOWN CENTRE SECURITIES PLC

(‘TCS’ or the ‘Company’)

Final results for the year ended 30 June 2026

Another stable performance; well positioned for long-term growth

Town Centre Securities PLC, the Leeds, Manchester and London property investment, development, hotel and car parking company, today announces its audited final results for the year ended 30 June 2026.

Commenting on the results, Chairman and Chief Executive Edward Ziff, said:

“This has been another year of stability for Town Centre Securities. The business delivered sound results for the year, despite the volatile macroeconomic backdrop. Emerging positive sentiment in the real estate sector was stalled by the US/Iran conflict, and the effects of increases to employers’ operating costs are still being felt across the UK economy.”

“Highlights of the year include reletting the vacant nightclub unit in the Merrion Centre and progress in the repositioning of our Vicar Lane site in Leeds, where Dishoom has opened its eagerly awaited new restaurant. We have continued to relet and renew leases of existing units, and as a result our void rate is below 5%, compared to 7.4% a year ago. Rent collections remain robust, and our car park division is trading strongly.”

“Adding to our core portfolio, we made two investments in the year: a retail property in Central London and an investment in a US-based fund targeting multi-family residential properties in the Midwest, as a means of diversifying beyond purely UK real estate. We expect that these investments will bring both income and capital growth.”

“We will continue to prioritise generating long-term value from our core property portfolio and car parking operations, applying our financially responsible approach as we evaluate investment decisions and bring forward our development assets when market conditions align with our conservative risk appetite. With our diversified portfolio, robust financial position, talented team, and long-term view, we are well placed to withstand evolving macroeconomic challenges and deliver long-term growth.”

Financial performance

•         Net assets – resilient performance:

–        Like for like portfolio valuation down 1.5% from June 2025 (FY25: down 2.4%)

–        Statutory net assets of £108.8m or 258p per share (FY25: £112.3m, 266p). EPRA net tangible assets (‘NTA’) measure at £107.5m or 255p per share (FY25 equivalent: £109.9m, 261p)

•         Statutory results – reduced loss:

–        Statutory loss after tax of £1.4m (FY25: loss of £3.4m) and statutory loss per share of 3.2p (FY25: loss of 8.2p), reflecting valuation losses and impairments across the portfolio of £3.7m

–        Statutory loss before tax of £0.3m (FY25: loss of £1.1m)

•         EPRA results – encouraging momentum:

–        EPRA earnings before tax of £3.3m (FY25: £2.9m)

–        EPRA earnings per share before tax of 7.8p (FY25: 7.0p)

–        EPRA earnings after tax of £2.9m, up 64% (FY25: £1.8m)

–        EPRA earnings per share of 6.9p (FY25: 4.2p)

•         Loan-to-Value increased to 55.5% (FY25: 53.1%) following the two investments made in the year and the reduction in property values:

–        Total net borrowings of £151.3m (FY25: £139.9m) including £77.1m debenture, the increase reflecting investments and a small debenture buyback

–        Weighted average cost of borrowings at period end of 5.2%, 74.7% at fixed rates

•         Shareholder returns:

–        Proposed final dividend of 2.5p, making the total dividend for the year 5.0p (FY25: 5.0p), equating to 72.1% of EPRA earnings. The final dividend will be paid on 7 January 2027 to shareholders on the register on 18 December 2026

Protecting shareholder value whilst safeguarding the business for the future

Progress delivered under our four key strategic initiatives is as follows:

Actively managing our assets

Our long-standing strategy of active management and redevelopment, to drive income and capital growth, has continued:

•         We have a well diversified portfolio comprising: 35% invested in retail and leisure; 28% offices; 13% car parks; 12% residential; 8% developments; and 4% hotels

•         The portfolio is also very well focused, with 87% located in Leeds and Manchester

•         The void rate across our portfolio decreased to 4.9% at 30 June 2026 (7.4% at 30 June 2025), following a number of key lettings in the year

•         Strong rent collection for the period of over 99% which is comparable to last year

•         Vicar Lane, Leeds repositioned as a prime leisure destination, with Dishoom opening its new restaurant in August 2026 and Sticks’n’Sushi set to open in early 2027, subject to planning

•         The former nightclub unit and a two-floor office unit at the Merrion Centre relet to new leisure occupiers

•         CitiPark gross revenue up 10.2% to £15.4m (FY25: £14.0m), with 99% of the car park portfolio now operating on CitiPark’s own barrierless, ANPR-based parking management system

Maximising available capital

A conservative capital structure, with a mix of short-term and long-term secure financing, has always underpinned our approach:

•         In March 2026 we bought back for cancellation a further £5.3m of debenture stock at an all-in cost of £97.50 per £100 nominal, funded from working capital and a £2m revolving credit facility drawdown, reducing the debenture’s nominal value to £77.1m

•         Handelsbanken revolving credit facility renewed for a further three years to June 2029 and Lloyds facility extended by one year to June 2028; renewal of the NatWest facility which currently expires in December 2027 is in progress

•         Loan to value headroom over our bank facilities of £15.0m based on 30 June 2026 borrowings and valuations, with a further £39.3m of committed revolving credit facilities undrawn

•         Loan to value increased to 55.5% following the investments made in the year and valuation reductions (FY25: 53.1%)

Investing in our development pipeline

TCS’s development pipeline, with an estimated GDV of over £500m, is a valuable and strategic point of difference, which we continue to progress and enhance:

•         Merrion Centre: In December 2025, Leeds City Council issued the planning decision notice for a 1,039-bed purpose-built student accommodation scheme, repurposing the vacant 13-storey Wade House and constructing a new 37-storey tower on the adjacent 100MC site, with an estimated GDV of over £155m, of which  we are focused on progressing the Wade House element

•         Whitehall Riverside: In July 2025 we unveiled ‘Z’, a smart, energy-efficient, best-in-class office development at the heart of a masterplan that also includes a multi-storey car park. We will commit to construction once pre-lets and an appropriate funding structure are secured and investment conditions support it

•         Piccadilly Basin: Our Dale Street and Burlington Street surface car parks are key components of the Piccadilly Basin Strategic Regeneration Framework, which we are working to refresh, for a mixed residential, commercial and car parking scheme with an estimated GDV of over £170m

Acquiring investment assets to diversify the portfolio

We continue to explore opportunities in Leeds, Manchester and London, while retaining robust finances and linking new acquisitions with the recycling of existing capital:

•         In November 2025 we acquired, off-market, a retail-led property on Marylebone High Street, London for £5.6m, comprising two ground and basement retail units let to Ganni and Moscot, and three long-leasehold residential apartments above

•         In August 2025 we made a $5m (£3.8m) investment in a US fund specialising in small multi-family residential units in the Midwest, which is expected to deliver a preferred return of 8% per annum

Outlook – robust financial position

•         Focusing on our core operations and bringing forward our developments when market conditions align with our conservative risk appetite

•         Continuing to explore opportunities both within traditional real estate in Leeds, Manchester and London and in complementary areas that can add value and further diversify risk, funded by recycling existing capital

•         Bringing LTV back towards below 50% through asset recycling, retained earnings and income growth

•         Resilient trading performance has continued into the first half of FY27:

–        Rent collections remain robust with over 99% of amounts invoiced collected

–        Car park and hotel businesses trading in line with our expectations

–        Loan to value headroom of £15.0m on existing bank facilities at the date of this announcement

–        Weighted average cost of borrowings at period end of 5.2%, with 74.7% at fixed rates

-Ends-

For further information, please contact:

Town Centre Securities PLC	www.tcs-plc.co.uk / @TCS_PLC
Edward Ziff, Chairman and Chief Executive Stewart MacNeill, Group Finance Director	0113 222 1234
MHP	[e-mail]
Reg Hoare / Matthew Taylor / Jake Terry	[phone]
Panmure Liberum	www.panmureliberum.com
Jamie Richards / Satbir Kler	020 3100 2123

Chairman & Chief Executive’s Statement

Overview

The business delivered sound results for the year, despite the volatile macroeconomic backdrop. Emerging positive sentiment in the real estate sector was stalled by the US/Iran conflict, and the effects of increases to employers’ operating costs are also being felt across the UK economy.

Highlights of the year include reletting the vacant nightclub unit in the Merrion Centre and progress in the repositioning of our Vicar Lane site in Leeds, where Dishoom has opened its eagerly awaited new restaurant, and Sticks‘n’Sushi is planning to open in early 2027, subject to planning. Although some parts of retail remain challenging, we have continued to relet and renew leases of existing units; as a result we are delighted that our voids rate is below 5%, compared to 7.4% a year ago. Rent collections remain robust, and our car park division is trading strongly.

Adding to our core portfolio, we made two investments in the reporting period: we acquired a retail property in Central London and invested in a US-based fund targeting multi‐family residential properties in the Midwest of the US, as a means of diversifying beyond purely UK real estate. We expect that these investments will bring both income and capital growth.

The volatility in construction costs, the funding environment and uncertainty among prospective tenants are all presenting issues to commencing development at our key sites, but we will monitor the situation closely and proceed only when the economics align with our strict financial criteria.

Financial performance

• Our statutory loss in the year of £1.4m (2025: £3.4m loss) includes valuation losses and impairments in our property portfolio of £3.7m, with a like-for-like portfolio valuation down 1.5% from June 2025.
• Taking into account the other comprehensive losses in the year totalling £0.1m and £2.1m in dividends paid; net asset value per share was 258p, compared with 266p at 30 June 2025.
• Net borrowings, excluding lease liabilities, increased in the period following the investments highlighted above and stood at £120.8m at 30 June 2026 (£110.4m at 30 June 2025), with 25.3% of this exposed to variable interest rates.
• EPRA earnings per share are 6.9p for the year (2025: 4.2p)
• 99% of all rent and service charge income invoiced in the year was collected.

Dividend and capital allocation

A dividend of 2.5p per share will be paid on 7 January 2027 to shareholders on the register as of 18 December 2026. Together with the interim dividend of 2.5p paid on 12 June 2026, this results in a total dividend of 5.0p for the period, equating to £2.1m, or 72.1% of EPRA earnings. Maintenance of the dividend during a period of economic uncertainty is a reflection of the strength of the Company’s core business and financial position.

In March 2026 we bought back for cancellation a further £5.3m of debenture stock to provide a more balanced distribution of security across our financing arrangements. This was funded from working capital and a £2m drawdown from one of our revolving credit facilities.

Sustainability

Sustainability remains a priority, and 44% of our assets are now rated EPC B or above. During the period we switched to a new business energy provider, focussing exclusively on supplying 100% renewable electricity. We are continuing to explore further solar farms on the roofs of all our buildings.

Outlook

We will continue to prioritise generating long‑term value from our core property portfolio and car parking operations, applying our financially responsible approach as we evaluate investment decisions and bring forward our development assets when market conditions align with our conservative risk appetite.

With our diversified portfolio, robust financial position, talented team, and long‑term view, we are well placed to withstand evolving macroeconomic challenges and deliver sustainable growth.

Portfolio Review

The like-for-like value of our portfolio decreased by 1.5% (£3.7m) after capital expenditure of £8.5m in the year.

The valuation of all of our properties (except two) was carried out by either CBRE or Colliers.

Portfolio overview

	Passing rent	ERV		Value	% of portfolio	Valuation incr/(decr)		Initial yield	Reversionary yield
	£m	£m		£m
Retail & Leisure (City Centre excl Merrion)	0.8	1.9		24.9	10%	15.8%		3.1%	7.0%
Merrion Centre (ex offices)	4.2	4.1		48.5	19%	-9.2%		8.1%	8.1%
Out of town retail	0.5	1.5		15.8	6%	20.8%		3.3%	9.1%
Total Retail and Leisure	5.5	7.5		89.2	35%	0.5%
Offices	5.1	6.6		72.1	28%	4.0%		6.7%	8.6%
Hotels	0.9	0.9		9.5	4%	-6.9%		9.0%	9.0%
Residential	1.6	1.9		32.3	12%	-6.4%		4.8%	5.4%
	13.2	16.9		203.1	79%	0.2%		6.1%	7.8%
Development property				21.0	8%	-12.0%
Car parks				34.8	13%	-3.6%
Portfolio				258.9	100%	-1.5%

Note: includes our share of Merrion House within Offices (£27.5m – see note 8 of these financial statements) and car park goodwill of £1.1m arising on individual car park assets, but specifically excluding goodwill arising from car park operation acquisitions. None of the above is included in the table set out in note 7 of these financial statements.

Note: excludes IFRS 16 adjustments that relate to right-of-use car park assets (£21.7m) as the Directors do not believe it is appropriate to include in this analysis assets which have fewer than 50 years remaining on their lease and the Group does not have full control over these assets. These assets are included in the table set out in note 7 of these financial statements.

The table below reconciles the table to the left to that set out in note 7 of these financial statements:

	FY26	FY25
	£m	£m
Portfolio - as per note 7	252.0	245.8
50% Share in Merrion House	27.5	27.5
Goodwill - Car Parks	1.1	1.7
Less - Right-of-Use Car Parks	(21.7)	(20.9)
As per the table above	258.9	254.1

Sales and purchases

During the financial year ended 30 June 2026 we did not sell any properties and acquired a single retail property investment.

Our continued commitment to asset recycling is clear when opportunities arise. The table below details the £168.4m of disposals made since FY17, of which 71% were retail and leisure assets.

	Sales			Purchases
	£m	% retail and leisure		£m	% retail and leisure
FY17	22.3	88%		4.0	46%
FY18	10.1	95%		9.0	0%
FY19	14	100%		16.0	25%
FY20	2.5	100%		1.7	100%
FY21	48	93%		0.0	0%
FY22	37.9	59%		7.0	100%
FY23	33.4	21%		18.8	0%
FY24	0.2	0%		1.5	0%
FY25	0	0%		0.0	0%
FY26	0	0%		5.6	100%
	168.4	71%		63.6	32%

Retail and Leisure

The Retail and Leisure market has continued to recover and we have seen a 0.5% increase in the value of our retail and leisure portfolio. In addition we have invested £5.6m in a retail led Marylebone High Street property during the year.

As with last year the key valuation improvements are on the retail and leisure assets outside of the Merrion  Centre. Renewed interest in our Vicar Lane property following its repositioning as a prime leisure destination is a particular highlight, as well as key lease renewals with M&S and Pure Gym at our Urban Exchange property in Manchester; these have contributed to double digit valuation increases in both of these subsectors of our retail and leisure portfolio.

The business strategy to retain a short-term flexible approach to parts of the internal mall of the Merrion Centre, in order to bring forward redevelopment, has impacted on the underlying values of these retail units.

Regional offices

The valuation of our office portfolio has grown by 4% in the year after a number of years of decline; this growth reflects resilient demand for quality commercial space despite broader economic challenges. The growth is seen in both our Leeds and Manchester based office buildings.

Our 50% stake in Merrion House has marginally increased in the year. As a relatively long-dated and less risky asset, the valuation of this property is correlated more to the UK bond market rather than the underlying physical asset. If the economy improves we expect the valuation of this property to also improve.

Residential

Our residential portfolio decreased in value by 6.4% in the year. In May 2026 the Renter’s Rights Act 2025 came into force, which brought with it a structural shift in the regulation of the private rented sector in favour of the tenant, and to the detriment of the landlord. This has had an impact on the yields used to value our residential properties with the reversionary yield moving out from 5.1% to 5.4% in the year.

Car Parks

During the year, the Company’s freehold and long leasehold car park assets fell in value by £1.3m, a drop of 3.6%. Occupancy levels across the portfolio remain consistent however increased operating costs, in particular business rates and rental charges have negatively impacted the underlying values.

Developments

The value of the Company’s development sites reduced by £2.7m or 12.0% in the year. The reduction relates to both the Company’s Piccadilly Basin, Manchester and Whitehall Riverside, Leeds development sites. Even though prime office rents are continuing to rise, especially in Leeds, the increases are not sufficient to counteract both escalating build costs and new regulatory expenses; the Building Safety Act and biodiversity net gain requirement to name but two.

Divisional review – Property

Overview

Our diverse portfolio, long-term approach and financial position have remained core strengths in the context of geopolitical volatility and macroeconomic uncertainty.

Our assets continue to perform well, reflected in a low void rate. We completed one acquisition during the reporting period and remain open to opportunities that meet our investment criteria. Rent collection has stayed strong.

We have also advanced our development projects, while keeping a close watch on the economic landscape and sentiment to guide our decision‑making.

Performance by segment

Our office assets have been well let, and the speculative refurbishment we have undertaken between tenancies has been positively received. The wider sector is seeing greater caution among prospective occupiers, particularly in the new build segment, as they assess the potential impact of AI on their space requirements, adding to hesitancy related to energy and other operating costs. This is leading to some occupiers erring towards smaller spaces as they evaluate their longer-term occupational needs. On the supply side, a challenging funding environment and inflationary pressures have limited the development pipeline of new build properties in attractive locations with strong sustainability credentials, accentuating disparities in rental levels compared with high quality refurbished space.

Our leisure portfolio has performed strongly. The positioning of our Vicar Lane scheme in Leeds has continued to attract high profile operators. Dishoom’s newest restaurant opened in August 2026, Sticks’n’Sushi is set to add its 18th UK outlet there in early 2027, subject to planning, and Acai & The Tribe is another recent let. The Merrion Centre has seen a number of lease renewals among retail and leisure occupiers, as well as agreements with new operators. These included the completion in May of the lease for the nightclub unit, whose evolved offer, including plans for live music and private hire, is set to open in the autumn. Our Urban Exchange retail warehouse in Manchester saw renewals with PureGym and M&S. In London, we added to our portfolio with the £5.6m acquisition in November of a site on Marylebone High Street, which includes two retail units and three long leasehold residential units on the upper floors.

In the residential segment, our assets in Leeds, Manchester and Glasgow have continued to see high occupancy and rental levels.

Development pipeline

Challenging market conditions have limited development activity across the sector. We have attractive assets and development schemes at Whitehall Riverside and the Merrion Centre in Leeds, and in the Piccadilly Basin in Manchester, but will take a conservative approach to physical development until investment yields improve.

In December 2025 we received the planning approval decision notice from Leeds City Council for a student accommodation scheme at the Merrion Centre. However, several factors have impacted the viability of the 37-storey 100MC site, including a fall in the number of international students, delivery of other purpose-built student accommodation schemes in the area, a rebasing of rents for affordability reasons, investor appetite, increased costs relating to the Building Safety Act, and higher interest rates. We are therefore focused on the Wade House element and are working towards a gateway to application.

Outlook

Our long history has taught us that, while presenting challenges, evolving market dynamics also create opportunities. We look ahead with cautious optimism, underpinned by our diversified portfolio, robust finances, and the deep, cross-sector expertise of our colleagues. Our primary focus will remain on managing our existing assets and on progressing our development pipeline as and when the economic climate makes this viable. Any further accretive investments will be assessed carefully and funded from reinvestment of existing capital following the disposal of non-core assets.

Divisional review - CitiPark

CitiPark performed well during the year, and overall utilisation was high.

In Leeds, our weekday promotion offering all‑day parking at the Merrion Centre for £5 has seen a strong take-up. Originally intended as a short trial, we have continued the initiative due to its success in attracting new customers and encouraging people to return to the workplace on more days, which has helped offset the loss of several large occupiers in the surrounding area. Our Whitehall Riverside site continues to operate as a surface car park, and we will monitor the viability of this site as a temporary car park whilst considering the longer‑term development of the site.

Elsewhere, Manchester and London continued to trade well, although leased sites in Watford, London and Ilford faced challenges from upward-only rent reviews. In Watford, we responded by exercising the break clause to exit our lease, allowing us to renegotiate a three‑year agreement with the incoming owner on a reduced and capped rent while they progress their redevelopment plans.

With the majority of our portfolio owner‑operated, we have avoided the burden of over‑rented assets that has affected others in the sector. The changing landscape of the UK parking market, including the difficulties faced by some operators, may indeed create opportunities for us, for example to acquire new freehold sites.

There were only modest changes to the portfolio during the year and we did not enter any new car park management agreements. In Manchester, we exited the management agreement at New Jackson and extended our agreement with the AO Arena for a further two years, installing our barrierless parking management system.

Across the portfolio, while seeking to drive profitable revenue growth we also continued to focus on cost mitigation, including targeted work with specialist advisers to reduce liabilities by appealing business rates increases and seeking transitional relief where possible.

Technology and innovation

We continued to invest in technology to enhance the customer experience and improve operational efficiency. 99% of the portfolio now operates on CitiPark’s parking management system, integrated with our app and upgraded payment machines. The app and pre‑booking platform were refreshed during the year to enhance the customer journey.

We are leveraging AI in several ways and are exploring further opportunities. For example, we have deployed AI‑driven route planning for our operations team, to optimise branch visits, taking into account journey times, fuel consumption and site utilisation data. We are also using AI to enhance customer support, through live‑chat signposting to first‑touch resolutions. In addition, AI tools are helping us monitor local market dynamics more efficiently, supporting more informed decision-making.

Utilisation of EV charging continues to grow, and we remain committed to investing in charging infrastructure where this is supported by data on customer demand. We will evaluate further opportunities to manage third‑party charging assets.

In an example of our innovative approach to maximising space utilisation, we submitted a planning application for a padel court facility on the roof of the Merrion Centre car park.

Outlook

CitiPark is well positioned for the year ahead and beyond, rooted in our talented team, extensive sector knowledge, and criteria for assessing opportunities that balance financial prudence with our growth ambitions. We will continue to evaluate investments that meet our requirements, seeking high‑quality management agreements and selective freehold acquisitions, and upgrading some older sites with targeted capital expenditure where needed.

Financial Review

The financial performance of the Company during the year ended 30 June 2026 shows underlying EPRA earnings after tax of £2.9m (compared to £1.8m in FY25). The statutory profit of the year is again affected by both reductions in investment property values and impairments to the Group car parking portfolio, as real estate investor and market sentiment across these segments remain subdued.

The statutory loss for the year was £1.4m, compared to a loss of £3.4m in the previous year.

EPRA Earnings were a profit of £2.9m in the year, and increase of 64% compared to a profit of £1.8m in the prior year.

The Board is recommending the payment of a final dividend for the year of 2.5p, giving a full-year dividend of 5.0p, which is consistent with dividends declared in the previous year.

Net borrowings have increased from £110.4m to £120.8m in the year. Net borrowings represent total financial borrowings of £152.2m less cash balances of £0.9m, less lease liabilities of £30.5m.

Income statement

The Statutory loss for the year ended 30 June 2026 was £1.4m.

£000s		FY26		FY25		YOY
Gross Revenue		34,201		32,692		4.6%
Property Expenses		(18,305)		(17,826)		2.7%
Net Revenue		15,896		14,866		6.9%
Other Income / JV Profit		2,187		2,994		(27.0%)
Revaluations/impairments/profit on disposals		(3,809)		(4,008)		-
Administrative Expenses		(7,138)		(7,512)		(5.0%)
Operating Profit		7,136		6,340		12.6%
Net Finance Costs		(7,481)		(7,405)		1.0%
Taxation		(1,015)		(2,381)		-
Statutory Earnings		(1,360)		(3,446)		(60.5%)
EPRA - Property Adjustments		3,809		4,008		(5.0%)
EPRA - Other Adjustments		(159)		0		-
EPRA -Tax Adjustments		633		1,216		(47.9%)
EPRA Earnings		2,923		1,778		64.4%
Segmental		FY26		FY25		YOY
Property
Net Revenue		9,228		8,777		5.1%
Operating Profit		4,282		3,773		13.5%
CitiPark
Net Revenue		6,237		5,534		12.7%
Operating Profit		2,522		2,056		22.7%
ibis Styles Hotel
Net Revenue		431		555		(22.3%)
Operating Profit		431		555		(22.3%)
Investments
Other income and operating profit		(99)		(44)		125.0%

Statutory loss

On a statutory basis the reported loss for the year was £1.4m.

The statutory loss reflects the EPRA Earnings of £2.9m less £3.6m of non-cash valuation and impairment movements, less the loss on disposal of £0.3m on investment properties and investments sold in the year, plus a gain on the repurchase of debenture stock of £0.2m, less £0.6m of deferred taxation on valuation movements in the year.

Gross revenue

Gross revenue was up £1.5m or 4.6% year-on-year, with key drivers being:

• Gross property revenue during the year was £0.1m ahead of the previous period with one investment property acquisition in the year.
• CitiPark revenues have continued to grow in the year, with gross revenue across the portfolio increasing by 10.2% from £14.0m to £15.4m. Growth in both casual daily takings and enforcement income underpinned this performance.
• Income from the ibis Styles hotel was consistent with last year at £3.3m.

Property Expenses

Property expenses have increased by 2.7% year-on-year with increases to both hotel and car park property costs – respectively £0.1m and £0.7m (in particular increases to business rates) offset by savings to direct costs in the property business of £0.4m resulting from the reduced void rate.

Other/JV income

Total Other/JV income was down 27% or £0.8m year-on-year, with reduced dilapidation and surrender premia received during the year compared to the prior year.

Administrative expenses

Administrative costs were £0.4m or 5.0% lower year-on-year. This reduction was not specifically in relation to any one cost heading, but more an amalgamation of savings to staff costs, computer repairs and maintenance and legal fees.

Finance costs

Finance costs were 1.0% or £0.1m higher year-on-year as a result of the increase in the Company’s bank borrowings which were primarily used to fund the investments made by the Company in the year.

Taxation

Taxation was significantly down year-on-year following the release of an adjustment in relation to prior periods (both current and deferred tax) of £0.5m made in the year ended 30 June 2026.

Balance sheet

The below table shows the year-end balance sheet as reported.

£m	FY26		FY25		vs FY25
Freehold and Right to Use Investment Properties	168.9		160.5		5.2%
Development Properties	21.0		22.6		(7.1%)
Car Park related Assets, Goodwill and Investments	53.8		54.9		(2.0%)
Hotel Operations	9.5		10.2		(6.9%)
	253.2		248.2		2.0%
Joint Ventures	6.6		5.6		17.9%
Listed Investments	3.1		2.6		19.2%
Unlisted Investments	4.0		0.7		471.4%
Deferred tax	0.0		0.9		(100.0%)
Other Non-Current Assets	1.5		1.6		(6.3%)
Total Non-Current Assets	268.4		259.6		3.4%
Borrowings	(151.3)		(139.9)		8.1%
Other Assets/(Liabilities)	(8.3)		(7.4)		12.2%
Statutory NAV	108.8		112.3		(3.1%)
Statutory NAV per Share	258p		266p		(3.1%)
EPRA Net Tangible Assets (NTA)	107.5		109.9		(2.2%)
EPRA NTA per Share	255p		261p		(2.2%)

Non-current assets:

Our total non-current assets (including investments in JVs) of £268.4m (2025: £259.6m) have increased by £8.8m during the year, this movement is made up of the following:

• Capital expenditure of £12.7m (Investment Property Addition: £5.6m, other Investment Property additions: £2.9m, US Investment: £3.7m and Fixed Asset additions: £0.5m);
• Disposals of £(0.4m)
• Depreciation charge of £(2.2m)
• Revaluation uplift/reversal of impairments totalling £(3.7m)
• IFRS16 lease reassessments following rent reviews of £2.6m
• Operating profits generated and retained in JV entities and other movements including deferred tax movement £(0.2m)

Borrowings:

During the year our borrowings have increased by £11.4m, from £139.9m as at 30 June 2025 to £151.3m at the year-end. This increase was primarily due to the two investments made by the Company in the year, but also included increases to lease liabilities following rent reviews concluded within the year.

We have recently extended our existing Lloyds revolving credit facility by one year; it is now due to expire in June 2028. It is our intention in January 2028 to begin the process of renewing this facility for a new three year term, subject to bank consent.

We have renewed our Handelsbanken revolving credit facility by a further three years during the year; it is now due to expire in June 2029. Our NatWest credit facility expires in December 2027. We are in the process of renewing this facility, subject to bank consent.

Loan-to-value has been increased to 55.5%, up from 53.1% a year ago, primarily due to the additional investments made by the Company In the year, but also taking into account the decrease in property values. Note the calculation of loan-to-value includes both the finance lease assets and liabilities.

EPRA net asset reporting

We focus primarily on the measure of Net Tangible Assets (‘NTA’). The below table reconciles IFRS net assets to NTA, and the other EPRA measures.

There are three EPRA Net Asset Valuation metrics, namely EPRA Net Reinstatement Value (‘NRV’), EPRA Net Tangible Assets (‘NTA’) and EPRA Net Disposal Value (‘NDV’).

The EPRA NRV scenario, aims to represent the value required to rebuild the entity and assumes that no selling of assets takes place. The EPRA NTA is focused on reflecting a company’s tangible assets. EPRA NDV aims to represent the Shareholders’ value under an orderly sale of business, where, for example, financial instruments are calculated to the full extent of their liability. All three NAV metrics share the same starting point, namely IFRS Equity attributable to shareholders.

					FY26		FY25
£m	FY26		FY25		p per share		p per share
IFRS reported NAV	108.8		112.3		258		266
Purchasers Costs 1	18.6		18.0
EPRA Net Reinstatement Value	127.4		130.3		302		309
Remove Purchasers Costs	(18.6)		(18.0)
Remove Goodwill and Intangible Assets 2	(1.3)		(2.4)
EPRA Net Tangible Assets	107.5		109.9		255		261
Fair value of fixed interest rate debt 3	11.9		15.4
EPRA Net Disposal Value	119.4		125.3		283		297

1 Estimated purchasers’ costs including fees and stamp duty and related taxes.

2 Removal of goodwill as per the IFRS Balance Sheet – relates predominantly to goodwill paid to acquire two long-term car park leaseholds in London.

3 Represents the adjustment to fair value (market price) of the 2031 5.375% debenture and the single asset facility.

Future financial considerations

Future P&L pressure

The wider economy and underlying property values are still struggling, with uncertainty around office-based working and shopping habits continuing.

In terms of our own specific business, once you exclude the impact of valuation movements we have seen recoveries in all segments, with the consolidated EPRA profit of the Group increasing from £1.8m to £2.9m. As mentioned previously, we have resumed a more normal dividend cycle of an interim dividend of 2.5p per share and a proposed final dividend of 2.5p per share.

Future balance sheet

As identified in the Risk Report, we have highlighted the continued pressure on retail and office investment properties and development sites to be a significant risk to the business. As part of the going concern and viability statement review process, the Company has prepared consolidated forecasts and identified a number of mitigating factors to ensure that the ongoing viability of the business is not threatened.

Going concern and headroom

One of the most critical judgements for the Board is the headroom in the Group’s debt facilities. This is calculated as the maximum amount that could be borrowed, taking into account the properties secured to the funders and the facilities in place.

The total headroom at 30 June 2026 was £15.0m (2025: £24.6m), which was considered to be sufficient to support our going-concern conclusion. The properties secured under the Group’s debt facilities would need to fall 20.1% in value before this headroom number was breached.

In assessing both the viability and going-concern status of the Company, the Board reviewed detailed projections including various different scenarios. A summary of the approach and the findings is set out in the Risk Report, forming part of the Strategic Report of these financial statements.

Total shareholder return and total property return

Total shareholder return of (11.6)% (2025: 3.3%) was calculated as the total of dividends paid during the financial year of 5.0p (2025: 2.5p) and the movement in the share price between 30 June 2025 (135.5p) and 30 June 2026 (115.0p), assuming reinvestment of dividends. This compares with the FTSE All Share REIT Index at 7.3% (2025: 1.3%) for the same period.

The Company’s share price continues to trade at a significant discount to its NAV, impacting total Shareholder return.

Total Shareholder returns % (CAGR)

Total Shareholder returns	1 Year	10 Years	20 Years
Town Centre Securities	(11.6%)	(4.4%)	(3.1%)
FTSE All Share REIT Index	7.3%	1.8%	(0.7%)

Total Property Return is calculated as the net operating profit and gains / losses from property sales and valuations as a percentage of the opening investment properties. Total Property Return for the business for the reported 12 months was 6.0% (2025: 6.2%).

Consolidated income statement

for the year ended 30 June 2026

		2026	2025
	Notes	£000	£000
Gross revenue (excluding service charge income)	1	31,139	29,757
Service charge income	1	3,062	2,935
Gross revenue	1	34,201	32,692
Service charge expenses	1	(4,319)	(4,310)
Property expenses	1	(13,986)	(13,516)
Net revenue		15,896	14,866
Administrative expenses	2	(7,138)	(7,512)
Other income	3	1,102	1,937
Valuation movement on investment properties	7	(1,504)	(2,214)
Impairment of car parking assets	7	(1,074)	(2,697)
Impairment of goodwill		(979)	(772)
Loss on disposal of investments		(145)	(87)
Loss on disposal of investment properties		(132)	-
Profit on disposal of freehold and leasehold properties	7(B)	-	1,762
Share of post-tax profits from joint ventures	8	1,110	1,057
Operating profit		7,136	6,340
Finance costs		(7,481)	(7,423)
Finance income		-	18
Loss before taxation		(345)	(1,065)
Taxation	4	(1,015)	(2,381)
Loss for the year attributable to owners of the Parent		(1,360)	(3,446)
Earnings per share
Basic and diluted	6	(3.2p)	(8.2p)
EPRA (non-GAAP measure)	6	6.9p	4.2p
Dividends per share
Paid during the year	5	5.0p	2.5p
Proposed	5	2.5p	2.5p

Consolidated statement of comprehensive income

for the year ended 30 June 2026

		2026	2025
		£000	£000
Loss for the year		(1,360)	(3,446)
Items that will not be subsequently reclassified to profit or loss
Revaluation losses on car parking assets	7	(154)	(656)
Revaluation (losses)/gains on hotel assets	7	(458)	542
Revaluation gains/(losses) on other investments		489	(706)
Deferred tax on freehold car park valuation losses		50	178
Total other comprehensive loss		(73)	(642)
Total comprehensive loss for the year		(1,433)	(4,088)

Consolidated balance sheet

as at 30 June 2026

		2026	2025
	Notes	£000	£000
Non-current assets
Property rental
Investment properties	7	189,896	183,092
Investments in joint ventures	8	6,573	5,636
		196,469	188,728
Car park activities
Freehold and leasehold properties	7	52,557	52,470
Goodwill and intangible assets		1,289	2,430
		53,846	54,900
Hotel operations
Freehold properties	7	9,500	10,200
		9,500	10,200
Fixtures, equipment and motor vehicles	7	1,501	1,613
Investments	9	7,132	3,259
Deferred tax assets	10	-	939
Total non-current assets		268,448	259,639
Current assets
Trade and other receivables		4,815	3,802
Cash and cash equivalents		16,214	17,990
Total current assets		21,029	21,792
Total assets		289,477	281,431
Current liabilities
Trade and other payables		(13,215)	(11,229)
Bank overdrafts		(15,303)	(18,375)
Borrowings and lease liabilities		(29,041)	(12,620)
Total current liabilities		(57,559)	(42,224)
Non-current liabilities
Borrowings and lease liabilities		(123,150)	(126,905)
Deferred tax liabilities		(7)	-
Total non-current liabilities		(123,157)	(126,905)
Total liabilities		(180,716)	(169,129)
Net assets		108,761	112,302
Equity attributable to the owners of the Parent
Called up share capital	11	10,540	10,540
Share premium account		200	200
Capital redemption reserve		3,309	3,309
Revaluation reserve		3,686	4,248
Retained earnings		91,026	94,005
Total equity		108,761	112,302
Net asset value per share	13	258p	266p

Consolidated statement of Changes in Equity

for the year ended 30 June 2026

	Called up share capital	Share premium account	Capital redemption reserve	Revaluation reserve	Retained earnings	Total equity
	£000	£000	£000	£000	£000	£000
Balance at 30 June 2024	10,540	200	3,309	4,184	99,211	117,444
Comprehensive income for the year
Loss for the year	-	-	-	-	(3,446)	(3,446)
Other comprehensive loss	-	-	-	64	(706)	(642)
Total comprehensive loss for the year	-	-	-	64	(4,152)	(4,088)
Contributions by and distributions to owners
Interim dividend relating to the year ended 30 June 2025	-	-	-	-	(1,054)	(1,054)
Balance at 30 June 2025	10,540	200	3,309	4,248	94,005	112,302
Comprehensive income for the year
Loss for the year	-	-	-	-	(1,360)	(1,360)
Other comprehensive (loss)/income	-	-	-	(562)	489	(73)
Total comprehensive loss for the year	-	-	-	(562)	(871)	(1,433)
Contributions by and distributions to owners
Final dividend relating to the year ended 30 June 2025	-	-	-	-	(1,054)	(1,054)
Interim dividend relating to the year ended 30 June 2026	-	-	-	-	(1,054)	(1,054)
Balance at 30 June 2026	10,540	200	3,309	3,686	91,026	108,761

Consolidated cash flow statement

for the year ended 30 June 2026

		2026			2025
	Notes	£000	£000		£000	£000
Cash flows from operating activities
Cash generated from operations	12	12,681			9,471
Interest received		-			18
Interest paid		(6,419)			(6,186)
Corporation tax paid	4	(19)			(59)
Net cash generated from operating activities			6,243			3,244
Cash flows from investing activities
Purchase and construction of investment properties	7	(5,571)			-
Refurbishment of investment, freehold and leasehold properties	7	(2,918)			(4,183)
Purchases of fixtures, equipment and motor vehicles	7(D)	(462)			(645)
Proceeds from sale of investments	9	48			3,095
Proceeds from sale of fixtures, equipment and motor vehicles	7(D)	-			131
Distributions received from joint ventures	8	173			173
Purchase of investments		(3,769)			-
Purchase of subsidiary, net of cash acquired		-			(496)
Net cash used in investing activities			(12,499)			(1,925)
Cash flows from financing activities
Proceeds from non-current borrowings		17,000			-
Repayment of non-current borrowings		(5,401)			(100)
Arrangement fees paid		(231)			(163)
Principal element of lease payments		(1,707)			(1,780)
Dividends paid to Shareholders	5	(2,108)			(1,054)
Net cash generated from/(used in) financing activities			7,553			(3,097)
Net increase/(decrease) in cash and cash equivalents			1,297			(1,778)
Cash and cash equivalents at beginning of the year			(386)			1,392
Cash and cash equivalents at end of the year			911			(386)
Cash and cash equivalents at the year end are comprised of the following:
Cash balances			16,214			17,989
Overdrawn balances			(15,303)			(18,375)
			911			(386)
The Consolidated Cash Flow Statement should be read in conjunction with Note 12.

Audited preliminary results announcements

The financial information for the year ended 30 June 2026 and the year ended 30 June 2025 does not constitute the company's statutory accounts for those years.

Statutory accounts for the year ended 30 June 2025 have been delivered to the Registrar of Companies.

The statutory accounts for the year ended 30 June 2026 will be delivered to the Registrar of Companies following the Company's Annual General Meeting.

The auditors' reports on the accounts for 30 June 2026 and 30 June 2025 were unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

1. Segmental information

The chief operating decision-maker has been identified as the Board. The Board reviews the Group’s internal reporting in order to assess performance and allocate resources. Management has determined the Group’s operating segments based on these reports.

(A) Segmental assets and liabilities	2026	2025
	£000	£000
Assets
Property rental	198,498	193,698
Car park activities	57,140	56,284
Hotel operations	10,493	10,200
Investments	7,132	3,259
Unallocated	16,214	17,990
Total assets	289,477	281,431
Liabilities
Property rental	(10,225)	(8,740)
Car park activities	(32,838)	(31,277)
Hotel operations	(684)	(704)
Investments	-	-
Unallocated	(136,969)	(128,408)
Total liabilities	(180,716)	(169,129)
Net assets	108,761	112,302

Unallocated assets primarily represent cash held in various bank accounts that are pooled across the group and aren’t allocated to a specific segment. These have been reclassified from the Property Rental segment in the 2025 figures.

(B) Segmental results

			2026								2025
	Property	Car park		Hotel				Property	Car park	Hotel
	rental	activities		operations	Investments	Total		rental	activities	operations		Investments	Total
	£000	£000		£000	£000	£000		£000	£000	£000		£000	£000
Gross revenue (excl service charge income)	12,397	15,398		3,344	-	31,139		12,442	13,978	3,337		-	29,757
Service charge income	3,062	-		-	-	3,062		2,935	-	-		-	2,935
Gross revenue	15,459	15,398		3,344	-	34,201		15,377	13,978	3,337		-	32,692
Service charge expenses	(4,319)	-		-	-	(4,319)		(4,310)	-	-		-	(4,310)
Property expenses	(1,912)	(9,161)		(2,913)	-	(13,986)		(2,290)	(8,444)	(2,782)		-	(13,516)
Net revenue	9,228	6,237		431	-	15,896		8,777	5,534	555		-	14,866
Administrative expenses	(5,469)	(1,669)		-	-	(7,138)		(5,711)	(1,801)	-		-	(7,512)
Other income	1,049	7		-	46	1,102		1,864	30			43	1,937
Share of post-tax profits from joint ventures	1,085	-		-	-	1,085		1,057	-	-		-	1,057
Operating profit before valuation movements	5,893	4,575		431	46	10,945		5,987	3,763	555		43	10,348
Valuation movement on investment properties	(1,504)	-		-	-	(1,504)		(2,214)	-	-		-	(2,214)
Impairment of car parking assets	-	(1,074)		-	-	(1,074)		-	(2,697)	-		-	(2,697)
Impairment of goodwill	-	(979)		-	-	(979)		-	(772)	-		-	(772)
Loss on disposal of investments	-	-		-	(145)	(145)		-	-	-		(87)	(87)
Loss on disposal of investment properties	(132)	-		-	-	(132)		-	-	-		-	-
Profit on disposal of freehold and leasehold properties	-	-		-	-	-		-	1,762	-		-	1,762
Valuation movement on joint venture properties	25	-		-	-	25		-	-	-		-	-
Operating profit/(loss)	4,282	2,522		431	(99)	7,136		3,773	2,056	555		(44)	6,340
Finance costs						(7,481)							(7,423)
Finance income						-							18
Loss before taxation						(345)							(1,065)
Taxation						(1,015)							(2,381)
Loss for the year						(1,360)							(3,446)

All results are derived from activities conducted in the United Kingdom.

There are no individual customers that account for more than 10% of revenue.

The car park results include car park income from sites that are held for future development. The value of these sites has been determined based on their development value and therefore the total value of these assets has been included within the assets of the property rental business.

The net revenue at the development sites for the year ended 30 June 2026, arising from car park operations, was £1,520,000. After allowing for an allocation of administrative expenses, the operating profit at these sites was £1,065,000.

Revenue received within the car park activities’ segment and hotel operations’ segment as well as other income in the property rental segment is the only revenue recognised on a contract basis under IFRS 15.  All other revenue within the property rental segment comes from rental lease agreements.

2. Administrative expenses
	2026	2025
	£000	£000
Employee benefits	4,278	4,427
Depreciation	194	172
Charitable donations	66	86
Other	2,600	2,827
	7,138	7,512

Depreciation charged to the Consolidated Income Statement as an administrative expense relates to depreciation on central office equipment, including fixtures and fittings, computer equipment and motor vehicles. Depreciation on operational equipment and Right-of-use assets within both the car park and hotel businesses  are charged as direct property expenses within the Consolidated Income Statement.

3. Other income
	2026	2025
Other income	£000	£000
Commission received	123	196
Dividends received	46	43
Service charge management fees	303	280
Development management fees	122	227
Dilapidations receipts and income relating to surrender premiums	408	1,019
Profit on sale of fixed assets	-	55
Other	100	117
	1,102	1,937

4. Taxation

	2026	2025
	£000	£000
Current
Current year	-	-
Adjustments in respect of prior years	19	59
	19	59
Deferred tax
Utilisation of trading losses	871	967
Origination and reversal of timing differences	633	1,355
Adjustments in respect of prior periods	(508)	-
	996	2,322
	1,015	2,381

Taxation for the year is higher (2025: higher) than the standard rate of corporation tax in the United Kingdom of 25% (2025: 25%). The differences are explained below:
	2026	2025
	£000	£000
Loss before taxation	(345)	(1,065)
Loss on ordinary activities multiplied by rate of corporation tax in the United Kingdom of 25% (2025: 25%)	(86)	(266)
Effects of:
– Valuation movements on which deferred tax is not recognised	1,590	2,344
– Expenses not deductible for tax purposes	-	244
– Adjustments in respect of prior years	(489)	59
Total taxation charge	1,015	2,381

The Company left the REIT regime with effect from 1 July 2023. The results of the Company and the Group have subsequently been subject to corporation tax.

5. Dividends
	2026	2025
	£000	£000
2025 interim paid: 2.5p per share	-	1,054
2025 final paid: 2.5p per share	1,054	-
2026 interim paid: 2.5p per share	1,054	-
	2,108	1,054

An interim dividend in respect of the year ended 30 June 2026 of 2.5p per Ordinary Share was paid to Shareholders on 12 June 2026.

A final dividend in respect of the year ended 30 June 2026 of 2.5p per Ordinary Share is proposed. This dividend, based on the shares in issue at 13 October 2026, amounts to £1.054m which has not been reflected in these accounts and will be paid on 7 January 2027 to shareholders on the register on 18 December 2026.

6. Earnings per share

The calculation of basic earnings per share has been based on the loss for the year, divided by the weighted average number of Ordinary Shares in issue. The weighted average number of shares in issue during the year was 42,162,679 (2025: 42,162,679).

	2026				2025
			Earnings				Earnings
	Earnings		per share		Earnings		per share
	£000		p		£000		p
Loss for the year and earnings per share	(1,360)		(3.2)		(3,446)		(8.2)
Valuation movement on investment properties	1,504		3.6		2,214		5.3
Impairment of car parking assets	1,074		2.5		2,697		6.4
Impairment of goodwill	979		2.3		772		1.8
Valuation movement on properties held in joint ventures	(25)		-		-		-
Loss on disposal of investment properties	132		0.3		-		-
Profit on disposal of freehold and leasehold properties	-		-		(1,762)		(4.2)
Loss on disposal of investments	145		0.3		87		0.2
Gain on repurchase of debenture stock	(159)		(0.4)		-		-
Deferred tax on the above	633		1.5		1,216		2.9
EPRA earnings and EPRA earnings per share	2,923		6.9		1,778		4.2

There is no difference between basic and diluted earnings per share.

There is no difference between basic and diluted EPRA earnings per share.

7. Non-current assets

(A) Investment properties

	Freehold	Right-of-use asset	Development	Total
	£000	£000	£000	£000
Valuation at 30 June 2024	151,410	5,116	24,451	180,977
Other capital expenditure	2,405	17	1,760	4,182
Disposals	-	-	-	-
Movement in tenant lease incentives	147	-	-	147
Valuation movement	1,528	(87)	(3,655)	(2,214)
Valuation at 30 June 2025	155,490	5,046	22,556	183,092
Additions at cost	5,571	-	-	5,571
Other capital expenditure	1,793	-	1,125	2,918
Movement in tenant lease incentives	(181)	-	-	(181)
Valuation movement	1,687	(485)	(2,706)	(1,504)
Valuation at 30 June 2026	164,360	4,561	20,975	189,896

At 30 June 2026, investment property valued at £185,160,000 (2025: £178,095,000) was held as security against the Group’s borrowings.

Right-of-use investment property assets include leasehold property interests.

The Company occupies an office suite in part of the Merrion Centre and one floor of an investment property in London. The Directors do not consider these elements to be material.

(B) Freehold and leasehold properties – car park activities

	Freehold	Right-of-use asset	Total
	£000	£000	£000
Valuation at 30 June 2024	26,600	31,403	58,003
Disposals	-	(2,098)	(2,098)
IFRS 16 adjustment	-	(95)	(95)
Depreciation	(287)	(1,164)	(1,451)
Valuation movement recognised in Other Comprehensive Income	(656)	-	(656)
Oher movements – lease reassessments	-	1,464	1,464
Impairment	(1,107)	(1,590)	(2,697)
Valuation at 30 June 2025	24,550	27,920	52,470
Depreciation	(267)	(1,067)	(1,334)
Valuation movement recognised in Other Comprehensive Income	(154)	-	(154)
Oher movements – lease reassessments	-	2,649	2,649
Impairment	(769)	(305)	(1,074)
Valuation at 30 June 2026	23,360	29,197	52,557

The lease assessments movement of £2,649,000 (2025: £1,464,000) represents the impact of rent reviews on leasehold assets.

The historical cost of freehold properties and Right-of-use assets relating to car park activities is £30,153,000 (2025: £30,153,000).

At 30 June 2026, freehold properties and Right-of-use assets relating to car park activities valued at £32,763,000 (2025: £33,424,000) were held as security against the Group’s borrowings.

(C) Freehold properties – hotel operations

	Freehold
	£000
Valuation at 30 June 2024	9,900
Depreciation	(242)
Valuation movement recognised in Other Comprehensive Income	542
Valuation at 30 June 2025	10,200
Depreciation	(242)
Valuation movement recognised in Other Comprehensive Income	(458)
Valuation at 30 June 2026	9,500

At 30 June 2026, freehold property relating to hotel operations valued at £9,500,000 (2025: £10,200,000) was held as security against the Group’s borrowings.

The fair value of the Group’s portfolio of investment and development properties, freehold car park properties and freehold hotel properties have been determined principally by independent, appropriately qualified external valuers CBRE and Colliers. The remainder of the portfolio has been valued by the Directors.

Valuations are performed bi-annually and are performed consistently across the Group’s whole portfolio of properties. At each reporting date appropriately qualified employees verify all significant inputs and review computational outputs. The external valuers submit and present summary reports to the Property Director and the Board on the outcome of each valuation round.

Valuation methodology for all properties (excluding the development properties)

Valuations take into account tenure, lease terms and structural condition. The inputs underlying the valuations include market rents or business profitability, incentives offered to tenants, forecast growth rates, market yields and discount rates and selling costs including stamp duty.

There is one residential investment property that is valued at £1.75m based on an assumption of vacant possession. This property is currently subject to an Assured Short-term Tenancy agreement.

Valuation method for the development properties

The development properties principally comprise land in Leeds and Manchester. These have also been valued by appropriately qualified external valuers CBRE, taking into account an assessment of their realisable value in their existing state and condition based on market evidence of comparable transactions and residual value calculations.

Property income, values and yields as at 30 June 2026 are set out by category in the table below.

	Passing rent	ERV	Value	Initial yield	Reversionary yield
	£000	£000	£000	%	%
Retail and Leisure	807	1,851	24,940	3.1%	7.0%
Merrion Centre (excluding offices)	4,157	4,147	48,479	8.1%	8.1%
Offices	3,290	4,932	44,541	7.0%	10.5%
Hotels	900	900	9,500	9.0%	9.0%
Out of town retail	543	1,513	15,800	3.3%	9.1%
Residential	1,647	1,853	32,350	4.8%	5.4%
	11,344	15,196	175,610	6.1%	8.2%
Development properties			20,975
Car parks			24,855
IFRS 16 – Right-of-use assets held within car park activities			29,197
IFRS 16 - Right-of-use assets held within investment property			1,316
			251,953

Car parks above include £1.495m of a car park categorised as an investment property in the Consolidated Balance Sheet.

Property income, values and yields have been set out by category as at 30 June 2025 in the table below.

	Passing rent	ERV	Value	Initial yield	Reversionary yield
	£000	£000	£000	%	%
Retail and Leisure	393	1,544	15,890	2.3%	9.2%
Merrion Centre (excluding offices)	4,029	4,662	48,079	7.9%	9.2%
Offices	3,097	4,800	46,196	6.3%	9.8%
Hotels	913	913	10,200	8.5%	8.5%
Out of town retail	1,050	1,341	13,075	7.6%	9.7%
Residential	1,688	1,852	34,500	4.6%	5.1%
	11,170	15,113	167,940	6.3%	8.5%
Development property			22,556
Car parks			26,030
IFRS 16 – Right-of-use assets held within car park activities			27,920
IFRS 16 - Right-of-use assets held within investment property			1,316
			245,762

Investment properties (freehold and Right-of-use), freehold properties (PPE) and hotel operations.

The effect on the total valuation (excluding development properties, car parks and right-of-use assets) of £175.6m of applying a different weighted average yield and a different weighted average ERV would be as follows:

Valuation in the Consolidated Balance Sheet at a net initial yield of 5.1% - £210.0m, Valuation at 7.1% - £150.9m.

Valuation in the Consolidated Balance Sheet at a reversionary yield of 7.2% - £200.1m, Valuation at 9.2% - £156.5m.

Investment properties (development properties)

The key unobservable inputs in the valuation of one of the Group’s development properties of £15.2m is the assumed per acre or per unit land value. The effect on the valuation of this development property of applying a different assumed per acre or per unit land value would be as follows:

Valuation in the Consolidated Balance Sheet if there was a 5% increase in the per acre or per unit value - £16.0m, 5% decrease in the per acre or per unit value - £14.4m.

The other key development property in the Group is valued on a per acre development land value basis, the effect on the valuation of this development property of applying reasonable sensitivities would not be material.

Freehold car park activities

The effect on the total valuation of the Group’s freehold car park properties of £23.4m in applying a different yield/discount rate (valuation based on a 8.1% net initial yield) and a different assumed rental value/net income (valuation based on £1.9m) would be as follows:

Valuation in the Consolidated Balance Sheet based on a 1% decrease in the yield/discount rate - £26.7m, 1% increase in the yield/discount rate - £20.8m

Valuation in the Consolidated Balance Sheet based on a 5% increase in the assumed rental value/net income - £24.6m, 5% decrease in the assumed rental value/net income - £22.2m

Right-of-use car park activities

The effect on the total valuation of the Group’s Right-of-use car park properties of £29.2m in applying a different discount rate (valuation based on 12%) and a different growth rate (valuation based on 1%) would be as follows:

		Growth rate
	£m	0%	1%	2%
Discount rate	11%	28.0	31.2	35.0
	12%	26.4	29.2	32.4
	13%	25.0	27.5	30.3

Property valuations can be reconciled to the carrying value of the properties in the Consolidated Balance Sheet as follows:

	Investment Properties	Car park activities - freehold and leasehold properties	Hotel operations- freehold properties	Total
	£000	£000	£000	£000
Externally valued by CBRE	128,405	5,560	-	133,965
Externally valued by Colliers	58,250	17,800	9,500	85,550
Investment properties valued by the Directors	1,925	-	-	1,925
Properties held at valuation	188,580	23,360	9,500	221,440
IFRS 16 Right-of-use assets held at depreciated cost	1,316	29,197	-	30,513
	189,896	52,557	9,500	251,953

Valuation of investment properties (freehold and Right-of-use), freehold properties (PPE) and hotel operations at fair value

All investment properties, freehold properties held in property plant and equipment, hotel operations and assets held for sale are measured at fair value in the consolidated balance sheet and are categorised as level 3 in the fair value hierarchy as defined in IFRS13 as one or more inputs to the valuation are partly based on unobservable market data. In arriving at their valuation for each property (as in prior years) both the independent external valuers and the Directors have used the actual rent passing and have also formed an opinion as to the two significant unobservable inputs being the market rental for that property and the yield (i.e. the discount rate) which a potential purchaser would apply in arriving at the market value. Both these inputs are arrived at using market comparables for the type, location and condition of the property.

(D) Fixtures, equipment and motor vehicles
				Cost	Depreciation
				£000	£000
At 1 July 2024				6,095	4,649
Additions				645	-
Disposals				(135)	(59)
Depreciation				-	402
At 30 June 2025				6,605	4,992
Net book value at 30 June 2025					1,613
At 1 July 2025				6,605	4,992
Additions				462	-
Depreciation				-	574
At 30 June 2026				7,067	5,566
Net book value at 30 June 2026					1,501

8. Investments in joint ventures

	2026	2025
	£000	£000
At the start of the year	5,636	4,752
Valuation movement on investment properties	25	-
Share of post-tax profits from joint ventures before valuation movements	1,085	1,057
Distributions	(173)	(173)
At the end of the year	6,573	5,636

The full amount of investments in joint ventures relates to an equity investment in Merrion House LLP.

Merrion House LLP owns a long leasehold interest over a property that is let to the Group’s joint venture partner, Leeds City Council (‘LCC’). The interest in the joint venture for each partner is an equal 50% share, regardless of the level of overall contributions from each partner. The investment property held within this partnership has been externally valued by CBRE at each reporting date.

The assets and liabilities of Merrion House LLP for the current and previous year are as stated below:

	2026	2025
	£000	£000
Non-current assets	55,100	55,050
Cash and cash equivalents	708	274
Receivables and prepayments	2	1,028
Trade and other payables	(640)	(1,217)
Current financial liabilities	(1,990)	(1,839)
Non-current financial liabilities	(40,034)	(42,024)
Net assets	13,146	11,272

The profits of Merrion House LLP for the current and previous year are as stated below:

	2026	2025
	£000	£000
Revenue	3,674	3,674
Expenses	(16)	(10)
Finance costs	(1,489)	(1,551)
Valuation movement on investment properties	50	-
Net profit	2,219	2,113

The joint venture has no significant contingent liabilities to which the Group is exposed nor has the Group any significant contingent liabilities in relation to its interest in the joint venture.

9. Investments

	2026	2025
	£000	£000
Non-Current Assets
Listed investments	3,088	2,599
Non-Listed investments	4,044	660
	7,132	3,259

Listed investments

	2026	2025
	£000	£000
At start of the year	2,599	3,305
Increase/(decrease) in value of investments	489	(706)
At the end of the year	3,088	2,599

Listed investments relate to an equity shareholding in a company listed on the London Stock Exchange. This is stated at market value in the table above and has a historic cost of £875,000 (2025: £875,000).

Listed investments are measured at fair value in the consolidated balance sheet and are categorised as level 1 in the fair value hierarchy as defined in IFRS13 as the inputs to the valuation are based on quoted market prices.

The maximum risk exposure at the reporting date is the fair value of the investments.

Non-listed investments

	2026	2025
	£000	£000
At the start of the year	660	660
Additions	3,769	-
Disposals	(385)	-
At the end of the year	4,044	660

Non-listed investments primarily relate to an investment in a managed real estate fund, based in the United States of America. The Company has access to regular management information and the Directors have determined the fair value based on the underlying performance of the fund. The Directors of the Company believe this to be the most reasonable approach, based on their knowledge of the real estate sector, but also considering relevant macroeconomic factors.

There are no other material non-listed investments held by the Company, that would require an external valuation.

The Non-listed investments are categorised as level 3 in the fair value hierarchy as defined in IFRS 13 as the inputs to the valuation are based on unobservable inputs.

10. Deferred tax assets and liabilities

	2026	2025
	£000	£000
Assets
Carried forward losses	355	718
IFRS 16 lease liabilities	7,633	7,373
	7,988	8,091
Liabilities
IFRS 16 right-of-use assets	5,452	5,223
Investment property and freehold car park revaluation gains	2,543	1,929
	7,995	7,152
Net deferred tax (liability)/asset	(7)	939

The Company left the REIT regime with effect from 1 July 2023, therefore the profits of the Company and the Group are now subject to corporation tax. This has resulted in the recognition of a deferred tax asset, primarily relating to trading losses from previous periods that are available to offset taxation on future profits. In assessing the recognition of a deferred tax asset with respect to losses, management has first reviewed the type of losses, the period in which they arose and then the future profitability of the group or, where relevant, individual corporate entities.

The Group also has various non-trading losses and surplus management expenses from previous periods, however the associated deferred tax assets have not been recognised as there is insufficient evidence to show that their future utilization is probable. The total value of losses not included within the deferred tax asset is £1,367,000 (2025: £1,328,000).

In addition the Group has uncrystallized capital losses of £37,737,000 (2025: £32,246,000) on investment property and car park valuation losses that have not been recognised.

The total net deferred tax balance as at 30 June 2026 comprises the charge to the Consolidated Income Statement of £996,000 (2025: £2,381,000) less the reduction in deferred tax liabilities arising in the year on revaluation movements recognised in the Consolidated Statement of Comprehensive Income of £50,000 (30 June 2025: £178,000).

11. Called up share capital

Authorised

The authorised share capital of the company as at 30 June 2026 is 164,879,000 (2025: 164,879,000) Ordinary Shares of 25p each. The nominal value of authorised share capital at that date is £41,219,750 (2025: £41,219,750).

Issued and fully paid up

	Number  of shares	Nominal value
	000	£000
At 30 June 2025 and 30 June 2026	42,163	10,540

The Company has only one type of Ordinary Share class in issue. All shares have equal entitlement to voting rights and dividend distributions.

At the year end the Company had authority to buy back for cancellation a further 6,324,402 Ordinary Shares.

12. Cash flows from operating activities

	2026	2025
	£000	£000
Loss before tax	(345)	(1,065)
Adjustments for:
Depreciation	2,150	2,095
Amortisation	162	186
Profit on disposal of fixed assets	(9)	(55)
Loss on disposal of investment properties	132	-
Profit on disposal of freehold and leasehold properties	-	(1,762)
Loss on disposal of investments	145	87
Finance costs	7,481	7,423
Finance income	-	(18)
Share of post tax profits from joint ventures	(1,110)	(1,057)
Valuation movement on investment properties	1,504	2,214
Movement in tenant lease incentives	181	(147)
Impairment of car parking assets	1,074	2,697
Impairment of goodwill	979	772
(Increase)/decrease in receivables	(820)	193
Increase/(decrease) in payables	1,157	(2,092)
Cash generated from operations	12,681	9,471

13. Net asset value per share

The Basic and diluted net asset per share values are the same, as set out in the table below.

	2026	2025
	£000	£000
Net assets at 30 June	108,761	112,302
Shares in issue (000)	42,163	42,163
Basic and diluted net asset value per share	258p	266p

Directors’ responsibilities in respect of the Financial Statements

Each of the Directors confirm that to the best of their knowledge:

• The Financial Statements, prepared in accordance with the relevant financial reporting framework, give a true and fair view of the assets, liabilities, financial position and profit of the Company and undertakings included in the consolidation taken as a whole.

• The Management Report in the Annual Report and Accounts, comprising the Strategic Report and the relevant parts of the Directors’ Report, includes a fair review of the development and performance of the business and the position of the Company and undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.

• The Annual Report and Accounts, taken as a whole, is fair, balanced and understandable and provides the information necessary for Shareholders to assess the Company’s position, performance, business model and strategy.

Forward-Looking Statements

This announcement contains certain statements that are forward-looking statements. They appear in a number of places throughout this announcement and include statements regarding our intentions, beliefs or current expectations and those of our officers, directors and employees concerning, amongst other things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the business we operate. By their nature, these statements involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. The forward-looking statements reflect knowledge and information available at the date of preparation of this update and, unless otherwise required by applicable law, TCS undertakes no obligation to update or revise these forward-looking statements. Nothing in this update should be construed as a profit forecast. TCS and its Directors accept no liability to third parties in respect of this update save as would arise under English law.

Any forward-looking statements in this update speak only at the date of this document and TCS undertakes no obligation to update publicly or review any forward-looking statement to reflect new information or events, circumstances or developments after the date of this document.

 

END