par One Heritage Group Plc (isin : GB00BLF79495)
Zentra Group plc: Unaudited interim report for the six months ended 31 December 2025
Zentra Group plc (ZNT) 23 March 2026
Zentra Group plc (the “Company” or “Zentra”) Unaudited interim report for the six months ended 31 December 2025 Zentra Group PLC, the Manchester based residential developer focused on the North of England, announces its half year results for the six months ended 31 December 2025. Financial highlights
Operational highlights
Post Period Events
Outlook
Contacts Zentra Group plc Nick Courtney Guild Financial Advisory Limited (AQSE Corporate Adviser) Ross Andrews Email: ross.andrews@guildfin.co.uk Tel: +44 (0)7973 839767 Tomas Klaassen Email: tomas.klaassen@guildfin.co.uk
Hybridan LLP (AQSE Corporate Broker) About Zentra Group plc For further information, please visit the Company’s website at www.zentragroup.co.uk.
CHIEF EXECUTIVE’S REVIEW This update provides an overview of our activities for the first six months ended 31 December 2025. During the period, our principal focus has remained on progressing our core development and development management activities, with particular emphasis on completing One Victoria, securing further sales, and advancing New Islington towards commencement of works. As set out in our annual results, the Board remains committed to maintaining a disciplined approach to project selection and delivery, with a focus on generating cash and fee income from our existing projects whilst laying the foundations for future growth. Operational progress and key highlights
One Victoria One Victoria remains the Group’s key near‑term delivery priority. Sales activity has continued to be positive and has remained a central focus, given the importance of securing sales to underpin project de‑risking and funding repayment. 98 sales have been agreed at One Victoria, comprising 90 exchanged contracts and 8 reservations. We continue to focus on securing new sales, converting reservations into exchanged contracts and maintaining momentum through targeted marketing and agent engagement. Construction activity has progressed, however practical completion is now expected at the end of Q2 2026 due to construction delays. Through our Development Agreement, we are working closely with the wider professional team and the contractor to manage programme risk and to prioritise critical path activities, including commissioning and completion of final works, to support timely handover and completion. We will continue to provide updates as key milestones are achieved. Importantly, the level of agreed sales provides the Group with increased visibility on the project’s debt funding coverage. Based on the current level of exchanged contracts, agreed sales are expected to clear the One Victoria development finance facility on completion. This provides a clear pathway to repayment of the Group’s interest, strengthens the overall balance sheet position on completion and supports the Group’s ability to allocate resources to progressing New Islington and selectively adding to the pipeline. One Heritage Tower After the reporting date, the sale of the One Heritage Tower site was completed which represents a significant milestone for the project and demonstrates the value of the Group’s development management expertise. In connection with the successful completion of the sale, the Company is entitled to a £0.35m disposal fee for securing the sale in accordance with the terms of its Development Management Agreement. This fee income is an important contributor to near‑term liquidity and a validation of the Group’s development management model, which provides a revenue stream alongside our owned developments activity. New Islington At New Islington, planning has been secured and the project is progressing through the final stages of design development and the tendering process. Our near‑term priority is to progress procurement in an orderly and disciplined manner, ensuring that the scope, programme and delivery approach are appropriately aligned prior to the appointment of a principal contractor. We intend to provide a further update in Q2 2026 as we move towards appointing a principal contractor and preparing to commence works. In the meantime, the project team remains focused on completing outstanding design and procurement preparation, including engagement with key consultants and supply chain parties, to support a smooth transition into the construction phase. Pipeline and corporate focus Alongside progressing our existing projects, we have continued to assess opportunities to add to our pipeline. Our approach remains selective: we prioritise opportunities where the underlying fundamentals support long‑term demand and where we can structure transactions to balance capital efficiency with attractive returns. We remain focused on maintaining appropriate corporate cost discipline and ensuring that the Group’s resources are directed towards activities that support delivery, sales conversion and value creation. This remains consistent with the operational focus described in our annual results, and we will continue to evaluate the appropriate balance between direct development activity, development management mandates and pipeline expansion. Outlook Looking ahead, our priorities for the next period are clear. First, we will continue to work towards practical completion at One Victoria in line with the revised programme, whilst maintaining sales momentum and progressing remaining sales through to exchange and completion. Second, we will advance New Islington through procurement towards the appointment of a principal contractor, with a further update to be provided in Q2 2026. Third, we will continue to evaluate opportunities to add to the pipeline where they meet the Group’s return and risk criteria. FINANCE REVIEW For the six months ended 31 December 2025, revenue decreased by £1.03m (-52%) to £0.94m (H1 FY25: £1.97m). This primarily reflects reduced activity in development sales and construction services.
Notwithstanding the reduction in activity compared to the prior period, developments sales revenue remained the largest contributor to Group revenue, accounting for 43% of total revenue. This revenue was earned from the sale of the remaining land at Seaton House, Stockport for £400,000. Construction services delivered revenue of £0.10m in the period (H1 FY25: £0.23m), reflecting building activity supplied to related parties (predominantly Robin Hood Property Development Ltd) on co-living properties. The reduction in revenue reflects the Group’s continued strategic move away from the provision of co-living and property management services. There was a small reduction in development management fee income of £0.04m to £0.23m (H1 FY25: £0.27m), and this was delivered from two projects: related party projects at One Victoria, Manchester and at One Heritage Tower, Salford. Property Services also saw a decrease over the same period last year of £0.04m to £0.06m (H1 FY25: £0.10m). This revenue relates to property management fees. Gross profit increased by £1.16m to a profit of £0.45m (H1 FY25: loss of £0.71m) as a result of materially lower impairments in the current year. The impairment charge in the period was negative, in the amount of £0.06m (H1 FY25: £0.33m), and relates to a write back of impairment on sale of the land at Seaton House. Administrative expenses were £1.04m in the period (H1 FY25: £1.35m). This represents an overall £0.31m decrease (or almost 23%) in overheads arising from a decrease in staff, consultancy and corporate costs. Whilst this is a positive direction of travel and reflects a key focus during the period on cost control, the Group remains focused on a tight control of overheads, whilst introducing some targeted investment in cost to benefit revenue streams. The Group recorded an operating loss in H1 FY26 of £0.59m (H1 FY25: profit of £0.50m). Whilst this represents a decrease of £1.09m on the prior period, the operating profit in H1 FY25 included an exceptional item of £2.56m from the profit on sale of four entities from the Group. Finance costs were down £0.32m compared to last year at £0.25m (H1 FY25: £0.57m), whilst the group earned £0.20m in interest income as outlined in Note 9 (H1 FY25: Nil). Basic loss per share was 1.6 pence (H1 FY25: 0.2 pence). Inventory in the Consolidated Statement of Financial Position increased by £1.23m to £1.85m compared with the position at 30 June 2025 (30 June 2025: £0.61m), reflecting the acquisition of the development site at New Islington, Manchester. The purchase of this project site also contributed to the rise in current borrowings, which increased by £0.88m to £1.48m (30 June 2025: £0.61m). The Going Concern statement in Note 2 of the interim Financial Statements below updates the Directors’ views on the Group’s ongoing prospects and the key assumptions behind the preparation of the financial statements on a going concern basis. RISK MANAGEMENT AND PRINCIPAL RISKS The ability of the Group to operate effectively and achieve its strategic objectives is subject to a range of potential risks and uncertainties. The Board and the broader management team take a pro-active approach to identifying and assessing internal and external risks. The potential likelihood and impact of each risk is assessed and mitigation policies are set against them that are judged to be appropriate to the risk level. Management constantly updates plans and these are monitored by the Audit and Risk Committee and reported to the Board. The principal risks that the Board sees as impacting the Group in the coming period are divided into six categories, and these are set out below together with how the Group mitigates such risks. 1. Strategy: Government regulation, planning policy and land availability. 2. Delivery: Inadequate controls or failures in compliance will impact the Group’s operational and financial performance. 3. Operations: Availability and cost of raw materials, sub-contractors and suppliers. 4. People & Culture: Attracting and retaining high-calibre employees. 5. Finance & Liquidity: Availability of finance and working capital. 6. External Factors: Economic environment, including housing demand and mortgage availability.
1. Strategy: Government regulation, planning policy and land availability A risk exists that changes in the regulatory environment may affect the conditions and time taken to obtain planning approval and technical requirements including changes to Building Regulations or Environmental Regulations, increasing the challenge of providing quality homes where they are most needed. Such changes may also impact our ability to meet our margin or site return on capital employed (ROCE) hurdle rates (this ratio can help to understand how well a company is generating profits from its capital as it is put to use). An inability to secure sufficient consented land and strategic land options at appropriate cost and quality in the right locations to enhance communities, could affect our ability to grow sales volumes and/or meet our margin and site ROCE hurdle rates. The Group mitigates against these risks by liaising regularly with experts and officials to understand where and when changes may occur. In addition, the Group monitors proposals by Government to ensure that planning consents meet local requirements and exceed current and expected statutory requirements. The Group regularly reviews land currently owned, committed and pipeline prospects, underpinned with robust key business control where all land acquisitions are subject to formal appraisal and approved by the senior executive team.
2. Delivery: Inadequate controls or failures in compliance will impact the Group’s operational and financial performance A risk exists of failure to achieve excellence in construction, such as design and construction defects, deviation from environmental standards, or through an inability to develop and implement new and innovative construction methods. This could increase costs, expose the Group to future remediation liabilities, and result in poor product quality, reduced selling prices and reduced sales volumes. To mitigate this, the Group liaises with technical experts to ensure compliance with all regulations around design and materials, along with external engineers through approved panels. It also has detailed build programmes supported by a robust quality assurance.
3. Operations: Availability and cost of raw materials, sub-contractors, and suppliers A risk exists that not adequately responding to shortages or increased costs of materials and skilled labour or the failure of a key supplier, may lead to increased costs and delays in construction. It may also impact our ability to achieve disciplined growth in the provision of high-quality homes. The Group no-longer participates in in-house construction of residential development projects. It is reducing its exposure to providing services for the development of Co-Living projects for related parties and has also chosen an approach to the delivery of our development projects by appointing a principal contractor after a period of due diligence, which we believe will deliver the best shareholder value through cost certainty.
4. People and culture: Attracting and retaining high-calibre employees A risk exists that increasing competition for skills may mean we are unable to recruit and/or retain the best people. Having sufficient skilled employees is critical to delivery of the Company’s strategy, whilst maintaining excellence in all of our other strategic priorities. To mitigate this the Company has a number of People Strategy programmes which include development, training and succession planning, remuneration benchmarking against competitors, and monitoring of employee turnover, absence statistics and feedback from exit interviews.
5. Finance & Liquidity: Availability of finance and working capital A risk exists that lack of sufficient borrowing and surety facilities to settle liabilities and/or an ability to manage working capital, may mean that we are unable to respond to changes in the economic environment, and take advantage of appropriate land buying and operational opportunities to deliver strategic priorities. To minimise this risk, the Group has a disciplined operating framework with an appropriate capital structure together with forecasting of working capital and external funding requirements. Management has stress tested the Group’s resilience to ensure the funding available is sufficient. This process has regular management and Board attention to review the most appropriate funding strategy to drive the Company’s growth ambitions. We have regular Treasury updates, and we gain market intelligence and the availability of finance from in-house and experienced sector Treasury advisers.
6. External Factors: Economic environment, including housing demand and mortgage availability A risk exists that changes in the world and UK macroeconomic environment may lead to falling demand or tightened mortgage availability, upon which most of our customers are reliant, thus potentially reducing the affordability of our homes. This could result in reduced sales volumes and affect our ability to deliver targeted returns. To mitigate this risk, the Group partners with a network of overseas agents, tapping into overseas investor and private individual demand and in particular in Hong Kong, China and Singapore with the majority of overseas purchasers being cash buyers. The Group continually monitors the market at Board, Executive Committee, and team levels, leading to amendments in the Group’s forecasts and planning, as necessary. In addition, there are comprehensive sales policies, regular reviews of pricing in local markets and the development of good relationships with mortgage lenders. This is underpinned by a disciplined operating framework with an appropriate capital structure.
in respect of the half-yearly financial report
We confirm that to the best of our knowledge:
The Directors of Zentra Group PLC are listed on the company website, www.zentragroup.co.uk
By order of the Board Jason Upton Chief Executive Officer 20 March 2026
FINANCIAL STATEMENTS Consolidated statement of comprehensive income For the six months ended 31 December 2025
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