Annual financial statement
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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 theyear 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 deliveredsound results for the year, despite the volatile macroeconomic backdrop. Emerging positivesentiment in the real estate sector was stalled by the US/Iran conflict, and the effects ofincreases 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 andprogress in the repositioning of our Vicar Lane site in Leeds, where Dishoom has opened itseagerly 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 collectionsremain robust, and our car park division is trading strongly.” “Adding to our core portfolio, we made two investments in the year: a retail property inCentral London and an investment in a US-based fund targeting multi-family residentialproperties in the Midwest, as a means of diversifying beyond purely UK real estate. We expectthat these investments will bring both income and capital growth.” “We will continue to prioritise generating long-term value from our core property portfolioand car parking operations, applying our financially responsible approach as we evaluateinvestment decisions and bring forward our development assets when market conditions alignwith our conservative risk appetite. With our diversified portfolio, robust financial position,talented team, and long-term view, we are well placed to withstand evolving macroeconomicchallenges 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 nettangible 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 of3.2p (FY25: loss of 8.2p), reflecting valuation losses and impairments across theportfolio 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 inthe year and the reduction in property values: – Total net borrowings of £151.3m (FY25: £139.9m) including £77.1m debenture, theincrease reflecting investments and a small debenture buyback – Weighted average cost of borrowings at period end of 5.2%, 74.7% at fixed rates
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• 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 7January 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 andcapital 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 June2025), 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 itsnew restaurant in August 2026 and Sticks’n’Sushi set to open in early 2027, subject toplanning • The former nightclub unit and a two-floor office unit at the Merrion Centre relet to newleisure occupiers • CitiPark gross revenue up 10.2% to £15.4m (FY25: £14.0m), with 99% of the car parkportfolio now operating on CitiPark’s own barrierless, ANPR-based parking managementsystem Maximising available capital A conservative capital structure, with a mix of short-term and long-term secure financing, hasalways underpinned our approach: • In March 2026 we bought back for cancellation a further £5.3m of debenture stock at anall-in cost of £97.50 per £100 nominal, funded from working capital and a £2m revolvingcredit facility drawdown, reducing the debenture’s nominal value to £77.1m • Handelsbanken revolving credit facility renewed for a further three years to June 2029 andLloyds facility extended by one year to June 2028; renewal of the NatWest facility whichcurrently expires in December 2027 is in progress • Loan to value headroom over our bank facilities of £15.0m based on 30 June 2026borrowings and valuations, with a further £39.3m of committed revolving credit facilitiesundrawn • Loan to value increased to 55.5% following the investments made in the year andvaluation reductions (FY25: 53.1%) Investing in our development pipeline TCS’s development pipeline, with an estimated GDV of over £500m, is a valuable andstrategic point of difference, which we continue to progress and enhance: • Merrion Centre: In December 2025, Leeds City Council issued the planning decisionnotice for a 1,039-bed purpose-built student accommodation scheme, repurposing thevacant 13-storey Wade House and constructing a new 37-storey tower on the adjacent100MC site, with an estimated GDV of over £155m, of which we are focused onprogressing the Wade House element • Whitehall Riverside: In July 2025 we unveiled ‘Z’, a smart, energy-efficient, best-in-classoffice 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 aresecured and investment conditions support it • Piccadilly Basin: Our Dale Street and Burlington Street surface car parks are keycomponents of the Piccadilly Basin Strategic Regeneration Framework, which we areworking to refresh, for a mixed residential, commercial and car parking scheme with anestimated GDV of over £170m Acquiring investment assets to diversify the portfolio
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We continue to explore opportunities in Leeds, Manchester and London, while retaining robustfinances and linking new acquisitions with the recycling of existing capital: • In November 2025 we acquired, off-market, a retail-led property on Marylebone HighStreet, London for £5.6m, comprising two ground and basement retail units let to Ganniand Moscot, and three long-leasehold residential apartments above • In August 2025 we made a $5m (£3.8m) investment in a US fund specialising in smallmulti-family residential units in the Midwest, which is expected to deliver a preferredreturn of 8% per annum Outlook – robust financial position • Focusing on our core operations and bringing forward our developments when marketconditions 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 furtherdiversify risk, funded by recycling existing capital • Bringing LTV back towards below 50% through asset recycling, retained earnings andincome 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 thisannouncement – Weighted average cost of borrowings at period end of 5.2%, with 74.7% at fixedrates -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 tcs@mhpgroup.com Reg Hoare / Matthew Taylor / Jake Terry +44 7831 406117 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 macroeconomicbackdrop. Emerging positive sentiment in the real estate sector was stalled by the US/Iranconflict, and the effects of increases to employers’ operating costs are also being felt across theUK economy. Highlights of the year include reletting the vacant nightclub unit in the Merrion Centre andprogress in the repositioning of our Vicar Lane site in Leeds, where Dishoom has opened itseagerly awaited new restaurant, and Sticks‘n’Sushi is planning to open in early 2027, subjectto planning. Although some parts of retail remain challenging, we have continued to relet andrenew 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 istrading strongly.
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Adding to our core portfolio, we made two investments in the reporting period: we acquired aretail property in Central London and invested in a US-based fund targeting multi‐familyresidential properties in the Midwest of the US, as a means of diversifying beyond purely UKreal estate. We expect that these investments will bring both income and capital growth. The volatility in construction costs, the funding environment and uncertainty amongprospective tenants are all presenting issues to commencing development at our key sites, butwe will monitor the situation closely and proceed only when the economics align with ourstrict 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 portfoliovaluation 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 30June 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 30June 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 asof 18 December 2026. Together with the interim dividend of 2.5p paid on 12 June 2026, thisresults in a total dividend of 5.0p for the period, equating to £2.1m, or 72.1% of EPRAearnings. Maintenance of the dividend during a period of economic uncertainty is a reflectionof 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 providea more balanced distribution of security across our financing arrangements. This was fundedfrom 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. Duringthe period we switched to a new business energy provider, focussing exclusively on supplying100% renewable electricity. We are continuing to explore further solar farms on the roofs of allour buildings. Outlook We will continue to prioritise generating long‐term value from our core property portfolio andcar parking operations, applying our financially responsible approach as we evaluateinvestment decisions and bring forward our development assets when market conditions alignwith our conservative risk appetite. With our diversified portfolio, robust financial position, talented team, and long‐term view, weare well placed to withstand evolving macroeconomic challenges and deliver sustainablegrowth. 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
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Passingrent ERV Value % ofportfolio Valuationincr/(decr) Initialyield Reversionaryyield £m £m £m Retail & Leisure (City Centreexcl 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 thesefinancial statements) and car park goodwill of £1.1m arising on individual car parkassets, 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 financialstatements.Note: excludes IFRS 16 adjustments that relate to right-of-use car park assets (£21.7m) as theDirectors do not believe it is appropriate to include in this analysis assets which havefewer 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 thesefinancial statements. The table below reconciles the table to the left to that set out in note 7 of thesefinancial 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 purchasesDuring the financial year ended 30 June 2026 we did not sell any properties and acquired asingle retail property investment. Our continued commitment to asset recycling is clear when opportunities arise. The tablebelow details the £168.4m of disposals made since FY17, of which 71% were retail and leisureassets. Sales Purchases
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£m % retailand leisure £m % retail andleisure 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 LeisureThe Retail and Leisure market has continued to recover and we have seen a 0.5% increase inthe value of our retail and leisure portfolio. In addition we have invested £5.6m in a retail ledMarylebone High Street property during the year. As with last year the key valuation improvements are on the retail and leisure assets outside ofthe Merrion Centre. Renewed interest in our Vicar Lane property following its repositioningas a prime leisure destination is a particular highlight, as well as key lease renewals with M&Sand Pure Gym at our Urban Exchange property in Manchester; these have contributed todouble 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 ofthe Merrion Centre, in order to bring forward redevelopment, has impacted on the underlyingvalues of these retail units. Regional officesThe valuation of our office portfolio has grown by 4% in the year after a number of years ofdecline; this growth reflects resilient demand for quality commercial space despite broadereconomic challenges. The growth is seen in both our Leeds and Manchester based officebuildings. 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 bondmarket rather than the underlying physical asset. If the economy improves we expect thevaluation of this property to also improve. ResidentialOur residential portfolio decreased in value by 6.4% in the year. In May 2026 the Renter’sRights Act 2025 came into force, which brought with it a structural shift in the regulation ofthe 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 yieldmoving out from 5.1% to 5.4% in the year. Car ParksDuring 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 howeverincreased operating costs, in particular business rates and rental charges have negativelyimpacted the underlying values. Developments
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The value of the Company’s development sites reduced by £2.7m or 12.0% in the year. Thereduction relates to both the Company’s Piccadilly Basin, Manchester and WhitehallRiverside, 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 costsand new regulatory expenses; the Building Safety Act and biodiversity net gain requirement toname but two. Divisional review – Property Overview Our diverse portfolio, long-term approach and financial position have remained core strengthsin the context of geopolitical volatility and macroeconomic uncertainty. Our assets continue to perform well, reflected in a low void rate. We completed oneacquisition during the reporting period and remain open to opportunities that meet ourinvestment criteria. Rent collection has stayed strong. We have also advanced our development projects, while keeping a close watch on theeconomic landscape and sentiment to guide our decision‐making. Performance by segment Our office assets have been well let, and the speculative refurbishment we have undertakenbetween tenancies has been positively received. The wider sector is seeing greater cautionamong prospective occupiers, particularly in the new build segment, as they assess thepotential impact of AI on their space requirements, adding to hesitancy related to energy andother operating costs. This is leading to some occupiers erring towards smaller spaces as theyevaluate their longer-term occupational needs. On the supply side, a challenging fundingenvironment and inflationary pressures have limited the development pipeline of new buildproperties in attractive locations with strong sustainability credentials, accentuating disparitiesin rental levels compared with high quality refurbished space. Our leisure portfolio has performed strongly. The positioning of our Vicar Lane scheme inLeeds 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 toplanning, and Acai & The Tribe is another recent let. The Merrion Centre has seen a number oflease 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 UrbanExchange 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 MaryleboneHigh Street, which includes two retail units and three long leasehold residential units on theupper floors. In the residential segment, our assets in Leeds, Manchester and Glasgow have continued to seehigh occupancy and rental levels. Development pipeline Challenging market conditions have limited development activity across the sector. We haveattractive assets and development schemes at Whitehall Riverside and the Merrion Centre inLeeds, and in the Piccadilly Basin in Manchester, but will take a conservative approach tophysical development until investment yields improve. In December 2025 we received the planning approval decision notice from Leeds City Councilfor a student accommodation scheme at the Merrion Centre. However, several factors haveimpacted the viability of the 37-storey 100MC site, including a fall in the number ofinternational students, delivery of other purpose-built student accommodation schemes in thearea, a rebasing of rents for affordability reasons, investor appetite, increased costs relating tothe Building Safety Act, and higher interest rates. We are therefore focused on the Wade Houseelement and are working towards a gateway to application. Outlook Our long history has taught us that, while presenting challenges, evolving market dynamicsalso create opportunities. We look ahead with cautious optimism, underpinned by ourdiversified 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
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development pipeline as and when the economic climate makes this viable. Any furtheraccretive investments will be assessed carefully and funded from reinvestment of existingcapital 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 hasseen a strong take-up. Originally intended as a short trial, we have continued the initiative dueto its success in attracting new customers and encouraging people to return to the workplaceon more days, which has helped offset the loss of several large occupiers in the surroundingarea. Our Whitehall Riverside site continues to operate as a surface car park, and we willmonitor the viability of this site as a temporary car park whilst considering the longer‐termdevelopment 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 respondedby exercising the break clause to exit our lease, allowing us to renegotiate a three‐yearagreement with the incoming owner on a reduced and capped rent while they progress theirredevelopment plans. With the majority of our portfolio owner‐operated, we have avoided the burden of over‐rentedassets 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, forexample to acquire new freehold sites. There were only modest changes to the portfolio during the year and we did not enter any newcar park management agreements. In Manchester, we exited the management agreement atNew 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 tofocus on cost mitigation, including targeted work with specialist advisers to reduce liabilitiesby 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 improveoperational efficiency. 99% of the portfolio now operates on CitiPark’s parking managementsystem, integrated with our app and upgraded payment machines. The app and pre‐bookingplatform were refreshed during the year to enhance the customer journey. We are leveraging AI in several ways and are exploring further opportunities. For example, wehave 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 usingAI to enhance customer support, through live‐chat signposting to first‐touch resolutions. Inaddition, AI tools are helping us monitor local market dynamics more efficiently, supportingmore informed decision-making. Utilisation of EV charging continues to grow, and we remain committed to investing incharging infrastructure where this is supported by data on customer demand. We will evaluatefurther opportunities to manage third‐party charging assets. In an example of our innovative approach to maximising space utilisation, we submitted aplanning 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 financialprudence with our growth ambitions. We will continue to evaluate investments that meet ourrequirements, seeking high‐quality management agreements and selective freeholdacquisitions, 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 showsunderlying EPRA earnings after tax of £2.9m (compared to £1.8m in FY25). The statutory
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profit of the year is again affected by both reductions in investment property values andimpairments to the Group car parking portfolio, as real estate investor and market sentimentacross 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 profitof £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 leaseliabilities 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 ondisposals (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
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Other income and operating profit (99) (44) 125.0% Statutory lossOn 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 andimpairment 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 revenueGross 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 dailytakings and enforcement income underpinned this performance. Income from the ibis Styles hotel was consistent with last year at £3.3m. Property ExpensesProperty 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 reducedvoid rate. Other/JV income Total Other/JV income was down 27% or £0.8m year-on-year, with reduced dilapidation andsurrender premia received during the year compared to the prior year. Administrative expensesAdministrative 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 staffcosts, computer repairs and maintenance and legal fees. Finance costsFinance 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 theCompany in the year. TaxationTaxation 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 30June 2026. Balance sheetThe below table shows the year-end balance sheet as reported. £m FY26 FY25 vs FY25 Freehold and Right to Use Investment Properties168.9 160.5 5.2% Development Properties 21.0 22.6 (7.1%) Car Park related Assets, Goodwill and Investments53.8 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%
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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) haveincreased 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 2025to £151.3m at the year-end. This increase was primarily due to the two investments made bythe Company in the year, but also included increases to lease liabilities following rent reviewsconcluded within the year. We have recently extended our existing Lloyds revolving credit facility by one year; it is nowdue to expire in June 2028. It is our intention in January 2028 to begin the process of renewingthis facility for a new three year term, subject to bank consent. We have renewed our Handelsbanken revolving credit facility by a further three years duringthe year; it is now due to expire in June 2029. Our NatWest credit facility expiresin 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 thedecrease in property values. Note the calculation of loan-to-value includes both the financelease assets and liabilities. EPRA net asset reporting We focus primarily on the measure of Net Tangible Assets (‘NTA’). The below table reconcilesIFRS 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 andassumes that no selling of assets takes place. The EPRA NTA is focused on reflecting acompany’s tangible assets. EPRA NDV aims to represent the Shareholders’ value under anorderly 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 IFRSEquity attributable to shareholders.
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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 togoodwill 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% debentureand the single asset facility. Future financial considerationsFuture P&L pressureThe 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 movementswe have seen recoveries in all segments, with the consolidated EPRA profit of the Groupincreasing 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 2.5pper share. Future balance sheetAs 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. Aspart of the going concern and viability statement review process, the Company has preparedconsolidated forecasts and identified a number of mitigating factors to ensure that the ongoingviability of the business is not threatened. Going concern and headroomOne of the most critical judgements for the Board is the headroom in the Group’s debtfacilities. This is calculated as the maximum amount that could be borrowed, taking intoaccount 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 besufficient to support our going-concern conclusion. The properties secured under the Group’sdebt 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 thefindings is set out in the Risk Report, forming part of the Strategic Report of thesefinancial statements. Total shareholder return and total property return Total shareholder return of (11.6)% (2025: 3.3%) was calculated as the total of dividends paidduring the financial year of 5.0p (2025: 2.5p) and the movement in the share price between
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30 June 2025 (135.5p) and 30 June 2026 (115.0p), assuming reinvestment of dividends. Thiscompares 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, impactingtotal Shareholder return. Total Shareholder returns % (CAGR) Total Shareholderreturns 1 Year10Years20Years 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 propertysales and valuations as a percentage of the opening investment properties. Total PropertyReturn for the business for the reported 12 months was 6.0% (2025: 6.2%). Consolidated income statementfor 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 properties7(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
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Proposed 5 2.5p 2.5p Consolidated statement of comprehensive incomefor 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 sheetas 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)
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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
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Consolidated statement of Changes in Equityfor the year ended 30 June 2026 Called upsharecapital Share premiumaccount Capitalredemptionreserve Revaluationreserve Retainedearnings 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
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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 properties7 (5,571) - Refurbishment of investment, freehold and leaseholdproperties 7 (2,918) (4,183) Purchases of fixtures, equipment and motor vehicles7(D) (462) (645) Proceeds from sale of investments 9 48 3,095 Proceeds from sale of fixtures, equipment and motorvehicles 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.
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Audited preliminary results announcements The financial information for the year ended 30 June 2026 and the year ended 30 June 2025 does not constitutethe 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 followingthe Company's Annual General Meeting. The auditors' reports on the accounts for 30 June 2026 and 30 June 2025 were unqualified, did not draw attentionto any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act2006. 1. Segmental information The chief operating decision-maker has been identified as the Board. The Board reviews the Group’s internalreporting in order to assess performance and allocate resources. Management has determined the Group’soperating 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 andaren’t allocated to a specific segment. These have been reclassified from the Property Rental segment in the 2025figures. (B) Segmental results 2026 2025 Property Car park Hotel Property Car park Hotel rental activities operations Investments Total rental activities operations Investments To £000 £000 £000 £000 £000 £000 £000 £000 £000 £00 Gross revenue(excl servicecharge income)12,39715,398 3,344 - 31,139 12,442 13,978 3,337 - 29,75 Service chargeincome 3,062 - - - 3,062 2,935 - - - 2,93 Gross revenue 15,45915,398 3,344 - 34,201 15,377 13,978 3,337 - 32,69 Service chargeexpenses (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 - 14,86 Administrativeexpenses (5,469)(1,669) - - (7,138) (5,711) (1,801) - - (7,512
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Other income 1,049 7 - 46 1,102 1,864 30 43 1,93 Share of post-taxprofits from jointventures 1,085 - - - 1,085 1,057 - - - 1,05 Operating profitbefore valuationmovements 5,893 4,575 431 46 10,945 5,987 3,763 555 43 10,34 Valuationmovement oninvestmentproperties (1,504) - - - (1,504) (2,214) - - - (2,214 Impairment of carparking assets - (1,074) - - (1,074) - (2,697) - - (2,697 Impairment ofgoodwill - (979) - - (979) - (772) - - (772 Loss on disposal ofinvestments - - - (145) (145) - - - (87) (87 Loss on disposal ofinvestmentproperties (132) - - - (132) - - - - Profit on disposalof freehold andleaseholdproperties - - - - - - 1,762 - - 1,76 Valuationmovement on jointventure properties25 - - - 25 - - - - Operatingprofit/(loss) 4,282 2,522 431 (99) 7,136 3,773 2,056 555 (44) 6,34 Finance costs (7,481) (7,423 Finance income - 1 Loss beforetaxation (345) (1,065 Taxation (1,015) (2,38 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 thesesites has been determined based on their development value and therefore the total value of these assets hasbeen 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 inthe property rental segment is the only revenue recognised on a contract basis under IFRS 15. All other revenuewithin 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 depreciationon central office equipment, including fixtures and fittings, computer equipment and motor vehicles. Depreciationon operational equipment and Right-of-use assets within both the car park and hotel businesses are charged asdirect property expenses within the Consolidated Income Statement.
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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 surrenderpremiums 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 of25% (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 taxin the United Kingdom of 25% (2025: 25%) (86) (266) Effects of: – Valuation movements on which deferred tax is notrecognised 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 havesubsequently been subject to corporation tax. 5. Dividends
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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 toShareholders 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 theseaccounts 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 weightedaverage number of Ordinary Shares in issue. The weighted average number of shares in issue during the yearwas 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 properties1,504 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 incentives147 - - 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)
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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 againstthe 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 inLondon. 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 OtherComprehensive 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 OtherComprehensive 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 onleasehold 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 heldas security against the Group’s borrowings. The fair value of the Group’s portfolio of investment and development properties, freehold car park properties andfreehold hotel properties have been determined principally by independent, appropriately qualified external valuersCBRE and Colliers. The remainder of the portfolio has been valued by the Directors.
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Valuations are performed bi-annually and are performed consistently across the Group’s whole portfolio ofproperties. At each reporting date appropriately qualified employees verify all significant inputs and reviewcomputational outputs. The external valuers submit and present summary reports to the Property Director and theBoard 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 valuationsinclude market rents or business profitability, incentives offered to tenants, forecast growth rates, market yieldsand 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 vacantpossession. 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 byappropriately qualified external valuers CBRE, taking into account an assessment of their realisable value in theirexisting 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 Reversionaryyield £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 activities29,197 IFRS 16 - Right-of-use assets held within investment property1,316 251,953 Car parks above include £1.495m of a car park categorised as an investment property in the ConsolidatedBalance 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 Reversionaryyield £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 activities27,920 IFRS 16 - Right-of-use assets held within investment property1,316
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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 £175.6mof 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 theassumed per acre or per unit land value. The effect on the valuation of this development property of applying adifferent 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 effecton 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 differentyield/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 differentdiscount rate (valuation based on 12%) and a different growth rate (valuation based on 1%) would be as follows: Growth rate £m 0% 1% 2% 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 asfollows: Car parkactivities -freehold andleaseholdproperties Hoteloperations-freeholdproperties Discount rate
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InvestmentProperties 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 Directors1,925 - - 1,925 Properties held at valuation 188,580 23,360 9,500 221,440 IFRS 16 Right-of-use assets held at depreciatedcost 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 hoteloperations at fair valueAll investment properties, freehold properties held in property plant and equipment, hotel operations and assetsheld for sale are measured at fair value in the consolidated balance sheet and are categorised as level 3 in the fairvalue hierarchy as defined in IFRS13 as one or more inputs to the valuation are partly based on unobservablemarket data. In arriving at their valuation for each property (as in prior years) both the independent externalvaluers and the Directors have used the actual rent passing and have also formed an opinion as to the twosignificant unobservable inputs being the market rental for that property and the yield (i.e. the discount rate) whicha potential purchaser would apply in arriving at the market value. Both these inputs are arrived at using marketcomparables 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 movements1,085 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 ofthe level of overall contributions from each partner. The investment property held within this partnership has beenexternally 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
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£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 anysignificant 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 isstated 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 inthe 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
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£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 Statesof America. The Company has access to regular management information and the Directors have determined thefair value based on the underlying performance of the fund. The Directors of the Company believe this to be themost reasonable approach, based on their knowledge of the real estate sector, but also considering relevantmacroeconomic 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 theinputs 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 parkrevaluation 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 theGroup are now subject to corporation tax. This has resulted in the recognition of a deferred tax asset, primarilyrelating to trading losses from previous periods that are available to offset taxation on future profits. In assessingthe 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 corporateentities. 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 showthat 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 propertyand 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 IncomeStatement of £996,000 (2025: £2,381,000) less the reduction in deferred tax liabilities arising in the year onrevaluation movements recognised in the Consolidated Statement of Comprehensive Income of £50,000 (30 June2025: £178,000).
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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) OrdinaryShares 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 Nominalvalue 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 votingrights 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
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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 andundertakings 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 ofthe 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 andprovides 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 andthe 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. Theforward-looking statements reflect knowledge and information available at the date of preparation ofthis 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 profitforecast. 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 TCSundertakes 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.
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