**Summary of Conygar Investment Company PLCs Preliminary Results for the Year Ended 30 September 2025**
**Financial Performance**
**Net Asset Value (NAV)** Decreased by £19.5 million to £41.6 million (70.2p per share), primarily due to a £17.5 million write-down in the carrying value of properties at The Island Quarter (TIQ) in Nottingham. However, this does not include the £15.1 million profit from the sale of Rhosgoch land post-balance sheet date, which would add 23.9p per share.
**Cash Deposits** £3.2 million at 30 September 2025, boosted to £21.6 million post-year-end by the Rhosgoch sale proceeds.
**Bank Borrowings** Reduced by £7.8 million to £48.0 million.
**Profits** Realised £5.3 million from property sales, including the Virgin Active gym at TIQ and Holyhead Waterfront.
**Operational Highlights**
**Winfield Court** 81% occupancy, up 27% from the previous year, generating £2.7 million in net operating income.
**TIQ** Transferred operational management of 1 TIQ to Rhubarb Food Design to enhance food, beverage, and events offerings.
**Debt Restructuring** Received credit approval from Barclays to extend the development loan facility until December 2026, supporting further stabilization of Winfield Court.
**Strategic Developments**
**Asset Sales** Sold Rhosgoch land for £18.4 million net, reducing borrowings and providing operational funds.
**Management Agreement** Entered a 10-year agreement with Rhubarb to manage 1 TIQ, expected to reduce costs and improve returns.
**Future Plans** Aiming to expand hospitality offerings at TIQ, including a rooftop terrace and increased event capacity.
**Market Outlook**
**UK Commercial Real Estate** Cautiously positive outlook for 2026, with stabilization and modest recovery expected due to falling inflation, interest rate cuts, and increased demand for quality, sustainable assets.
**Challenges** Persistent market uncertainty and restrictive cash flows, but improving investor confidence and demand for quality assets are expected to create opportunities.
**Conclusion**
Despite a challenging year marked by property write-downs and operational costs, Conygar Investment Company PLC is positioning itself for future growth through strategic asset sales, debt restructuring, and operational enhancements. The company remains optimistic about the potential for improved returns and further development at TIQ, supported by a cautiously positive market outlook.
| Metric | 2025 (£'m) | 2024 (£'m) | Change (£'m) |
|---|---|---|---|
| Net Asset Value (NAV) | 41.6 | 61.1 | (19.5) |
| Properties | 93.1 | 117.9 | (24.8) |
| Cash | 3.2 | 4.7 | (1.5) |
| Borrowings | (48.0) | (55.9) | 7.9 |
| ZDP Shares | (5.6) | (4.9) | (0.7) |
| Other Net Liabilities | (0.8) | (0.4) | (0.4) |
| Bank Borrowings | 48.0 | 55.9 | (7.9) |
| Operating Loss | (14.2) | (33.3) | 19.1 |
| Finance Costs | (5.5) | (1.0) | (4.5) |
| Loss Before Taxation | (19.5) | (33.9) | 14.4 |
Key Debt Metrics:
| Metric | 2025 (£'m) | 2024 (£'m) | Change (£'m) |
|---|---|---|---|
| Bank Borrowings (Barclays) | 42.7 | 44.3 | (1.6) |
| Bank Borrowings (ASK) | 5.4 | 11.6 | (6.2) |
| Total Bank Borrowings | 48.0 | 55.9 | (7.9) |
Notes:
- The NAV decrease of £19.5 million is primarily due to a £17.5 million write-down in the carrying value of properties at The Island Quarter in Nottingham.
- Bank borrowings decreased by £7.8 million, mainly due to repayments from asset sales.
- The operating loss improved by £19.1 million, driven by higher proceeds from property sales and reduced development costs.