DJ Zentra Group plc: Full year results for the year ending 30 June 2025
Zentra Group plc (ZNT)
Zentra Group plc: Full year results for the year ending 30 June 2025
31-Dec-2025 / 07:00 GMT/BST
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31 December 2025
ZENTRA GROUP PLC
("Zentra" or "the Company")
Full year results for the year ending 30 June 2025
Zentra Group PLC (AQSE: ZNT), the Manchester-based residential developer, development manager and property manager
focused on the North of England, is pleased to announce its audited results for the year ended 30 June 2025 (FY25).
Financial highlights
-- Reduction in revenue of GBP6.59m, 45% on the prior year, from GBP14.65m to GBP8.06m, driven by a reduction in sales
completions from 52 to 27 during the period.
-- Gross loss of GBP0.29m, down by GBP0.47m or 261% on prior year mainly due to sales completions of plots subject to
impairment in the current and prior years (FY24: gross profit of GBP0.18m).
-- Loss before tax of GBP1.71m, which was GBP1.84m better than the prior year (FY24: loss of GBP3.56m).
-- Basic loss per share of 4.4 pence (FY24: loss of 8.7 pence).
-- Sale of four subsidiaries to a related party for a profit of GBP1.41m.
-- Loans and borrowings of GBP8.55m (FY24: GBP16.98m). The loan note facility was extended for a further 12 months to
March 2026 at reduced interest rate of 6% per annum (FY24: 7%).
-- A new loan facility with a related party of GBP7.94m at an interest rate of 6% per annum (the previous shareholder
loan balance in FY24 was GBP10.98m at an interest rate of 7%). The new loan was extended in the period to December
2026, with the ability to extend for a further 2 years.
-- As part of finalising the annual audit, on 30 December 2025 the Group has:
1. agreed with OH UK Holdings Limited ("OHUK") that OHUK will make available a further amount of GBP3m to the Group
if required, increasing the maximum aggregate funding available under the existing loan agreement to GBP11m; and
2. agreed to further extend the Loan Note due to mature on 14 March 2026 until the Group has recovered the loan
receivable due from the developer of the One Victoria project in Manchester.
Operating highlights
-- Completion of the sale of all remaining 24 houses at Victoria Road, Eccleshill under the new Zentra Homes brand.
-- Continued progress to move away from co-living activity due to uncertainties on returns and drain on operational
capacity.
-- Advancement of construction on the One Victoria project in Manchester, with the completion of the 129 apartment
complex, under the Zentra Living brand, expected in the second quarter of 2026 utilising a fixed-price contract
procurement strategy. Pre-sales of the units are now well progressed.
-- Transition onto the Aquis Real Asset Market ("ARAM") segment of the Aquis stock exchange, which aims to give
issuers a structure that aligns capital formation to individual projects and gives investors clearer visibility of
asset-level economics.
-- Nick Courtney appointed as Finance Director, adding substantial knowledge and experience to the Group's leadership
team and finance function.
Post Period Events
-- Completion of the design phase on the newly acquired New Islington development, with on-site activity expected in
the first half of 2026.
-- Completion of the sale of the land at the rear of Seaton House, Stockport for GBP0.4m.
Outlook
-- The completion of the One Victoria project in Manchester, and commencement of on-site works at the 40 apartment New
Islington development are a core focus heading into calendar 2026.
-- The reorganisation of the financial and operational structures in early FY25 has created a leaner team, but with a
renewed focus on pipeline projects to create lasting value for our shareholders.
The Annual Report and Accounts for the year ended 30 June 2025 is available in full to download from the Company's
website (www.zentragroup.co.uk).
Contacts
Zentra Group plc
Jason Upton
Chief Executive Officer
Email: jason.upton@zentragroup.co.uk
Nick Courtney
Finance Director
Email: nick.courtney@zentragroup.co.uk
Hybridan LLP (AQSE Corporate Adviser and AQSE Corporate Broker)
Claire Louise Noyce
Email: claire.noyce@hybridan.com
Tel: +44 (0)203 764 2341
About Zentra Group plc
Zentra Group is a property development and management company focused on the residential sector, primarily in the North
of England. The Company seeks to unlock value and deliver strong returns for its investors. Zentra is listed on the
ARAM segment of the Aquis Stock Exchange under the ticker ZNT.
For further information, please visit the Company's website at www.zentragroup.co.uk.
References to page numbers throughout this announcement relates to the page numbers within the Annual Report of the
Company for the year ended 30 June 2025.
STRATEGIC REPORT
Chairman's statement
The year to 30 June 2025 was one of decisive progress for Zentra. The Board's principal aim has been to complete the
strategic reset we set in motion last year and to position the Group for the next stage of its journey. In November and
December 2024, we executed a package of actions that strengthened the balance sheet and sharpened the focus of the
business. We sold a portfolio of completed residential and commercial properties at market value, reduced and
refinanced our core borrowings at a lower rate, and agreed a loan waiver. Together these measures reduced net debt and
inventory and improved the Group's financial outlook, as discussed in the interim results.
The reset was the natural extension of the strategic realignment announced last year. We withdrew from co-living and
from self-delivery. We then focused the business on two clear propositions; namely Zentra Living which delivers modern
city centre apartments and Zentra Homes which delivers high quality family housing in the communities where we operate.
Post the year end, we completed the transfer of our listing to the Aquis Real Asset Market (ARAM) becoming, in the
process, the first company admitted to this segment. We chose ARAM because it has been developed for real asset backed
businesses and because it allows us to present value more clearly at the level where it is created, namely the asset.
Becoming an early adopter underlines our intent to remain agile and forward looking. ARAM should give us a better
framework to align equity and debt to the timings of our projects and to broaden investor engagement as the pipeline
grows.
The Board's role through this period has been to set direction, ensure proper governance and allocate capital with
discipline. We are pleased that during the year all 24 homes at Eccleshill were sold to a registered housing provider,
making a tangible contribution in the local community.
The Board also oversaw a material simplification of the organisation to better reflect what Zentra does today. The
headcount has been reduced to 14 full time equivalents (FTEs) from 28 FTEs (July 2024), as a result of the cessation of
co-living activity, the exit from construction services, the reduction of property management activity and the
completion of our projects. The Interim Results also recorded lower administrative expenses as the cost base was
tightened.
Looking forward, the principal objective is to translate our simplified business model into delivery and value. The
Group is now a leaner developer with a focused portfolio, a more resilient financial base and a "capital markets home"
that better suits the way we operate - a move from the Main Market of the London Stock Exchange to the Access Segment
of the AQSE Growth Market and then on to ARAM. The management team is building a pipeline that looks beyond the limited
size ready-to-go schemes of prior years, towards larger projects that require careful planning, structuring and patient
execution and, at the same time, exploring development management opportunities with a variety of land owners and end
users. The Board will continue to support this work through disciplined oversight of risk, returns and capital. On
behalf of the Board, I would like to thank our shareholders, colleagues and partners for their support over an
important year for Zentra.
David Izett
Chairman
30 December 2025
Chief Executive's statement
This has been a year of action. We set out to simplify Zentra, de-risk delivery and concentrate the portfolio around
the places and products where we can create the most value. We executed a restructuring which included selling a
portfolio of completed properties, refinancing our shareholder loan at a lower interest rate, securing a loan waiver
and putting in place additional liquidity. By 31 December 2024 net debt had reduced by roughly a third and inventory
had reduced over GBP7 million, giving us a cleaner base for delivery. The interim results set out these movements and the
detail of the property transactions and facilities.
Our operational model is now firmly in sync with our revised strategy. We have exited co-living operations and in house
construction and have moved fully to fixed price third party delivery. We have focused the business on two clear
propositions. Zentra Living is our city apartment platform and Zentra Homes is our family housing platform. The rebrand
to Zentra last year was the precursor of this change. We have also reduced our overheads to align with our narrower
range of activities. Headcount has been realigned to 14 from 28 (July 2024) and administrative expenses moved lower in
the year as we re-aligned our overall cost base.
Performance against strategic objectives
1. Deliver the projects already in our pipeline. Zentra Homes delivered its first scheme to completion at One Meadow
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in Eccleshill during the year. This demonstrates our capability in family housing and our ability to work with
partners who provide much needed homes in their communities.
Zentra Living's One Victoria in Manchester - where the Group acts as development manager and holds a 30% interest -
continued to progress on site. The façade, glazing and internal works moved forward and the show apartment supported
marketing. Practical completion is expected in the second quarter of 2026 following an energisation delay (supplying
electricity to the property) and contractor disruption.
2. Secure sales. During the period we sold more than GBP7 million of inventory and completed the bulk sale of 24 homes
at One Meadow, Eccleshill, to a registered housing provider for more than GBP5 million. We resolved a Rights of Light
issue on our landholding in Churchgate, Leicester and completed the sale in March 2025 for GBP0.25 million. At Seaton
House, Stockport, we completed the disposal of the land to the rear of the property on 5 December 2025 for GBP0.4
million having sold the building in July 2024 for GBP0.6 million. Together with the restructuring, these actions
simplify the portfolio and allow capital and management time to be focused on higher-return activity.
Pre-sales at One Victoria remain strong. As at 19 December 2025, 72 apartments had exchanged, a further 5 had been
reserved, and 52remained available. Our priority is to secure additional pre-sales so we reach handover with a robust
sold position.
3. Expand the pipeline. On July 11, after the year-end we completed the acquisition at New Islington. The scheme is
planned to deliver forty apartments and one commercial unit. Design, procurement and sales preparation are
advancing and our intention is to commence on site in the second quarter of 2026. In parallel, we are progressing a
select pipeline in our core markets where planning, cost and sales fundamentals meet our hurdles.
Delivery strategy
Post the year-end in July 2025 we transferred our listing to the Aquis Real Asset Market (ARAM) and became the first
company to trade on the new segment. ARAM is a dedicated part of the Aquis Growth Market designed for listing and
trading real asset backed securities, including both equity and debt at the company and asset level. It aims to give
issuers a structure that aligns capital formation to individual projects and gives investors clearer visibility of
asset-level economics. We chose ARAM because it better matches how our developments are funded and how we intend to
communicate value as our pipeline grows.
Our future progress is not fully dependent on generating sales revenue from equity-funded developments. We have moved
to a diversified delivery strategy that uses the most appropriate route for each scheme. That includes private sale,
bulk sale and partnering where it strengthens delivery, and it includes working with registered housing providers and
local authorities where this helps address housing need. The strategy diversifies tenure, broadens funding routes and
allows us to bring forward larger, longer-duration projects with the right structure for each asset. ARAM sits
alongside this strategy by offering a market framework for asset-level equity or debt where that is the best fit, but
public-sector partnering is driven by delivery logic rather than by our listing venue.
Environment, Social, Governance (ESG)
During the year, we became a Member of the Greater Manchester Good Employment Charter (GMGEC), which recognises
employers that meet evidence-based criteria across seven characteristics of good employment, including secure and
flexible work, paying the Real Living Wage, employee voice, fair recruitment, people management, and health and
wellbeing. Membership sits above Supporter status and reflects independently assessed practice rather than an intention
to improve, which is why it is regarded as a meaningful badge in the region.
We are also an accredited Real Living Wage Employer, a voluntary commitment overseen by the Living Wage Foundation to
pay rates calculated to cover the actual cost of living rather than the statutory minimum.
Our social impact is felt locally through what we deliver and who we deliver for. The sale of 24 homes at Eccleshill to
a registered housing provider ensured those homes serve the local need for affordable housing, and we will continue to
use a mix of private sale, bulk sale and, where appropriate, partnerships with registered providers and local
authorities on future projects. We are preparing to enhance scheme-level ESG disclosure as projects reach key
milestones, beginning with New Islington.
On governance, we apply a recognised corporate governance code and disclose compliance on our website. We adopt version
2 of the 2023 QCA Code, and we use that framework for Board oversight of risk and controls.
Priorities for the year ahead
Our priorities are simple and measurable:
1. Complete and sell One Victoria, targeting a high level of exchanged contracts ahead of practical completion in the
first quarter of 2026 and a smooth handover thereafter.
2. Commence on site at New Islington in the second quarter of 2026 with a disciplined pre sales or exit plan.
3. Build our development pipeline. The pipeline is intended to be diversified in terms of delivery strategy and
funding approach so that our progress is not dependent on equity generated from sales at the corporate level.
Outlook
Zentra has evolved over the last few years and is a very different company to the one it was 12 months ago. The
restructuring completed in late 2024, the sell down of completed inventory, refinancing at a lower cost and the rebrand
have created a simpler base and a clearer route to value.
The move to AQSE Growth Market from the Main Market and then subsequently to ARAM signals our intent to remain agile
and to align our capital approach with the way our projects are delivered.
We have an expert and experienced team, a sound operating model and a growing pipeline that balances private sale with
opportunities to support the public sector through partnerships with registered housing providers and local
authorities. As such, Zentra is well placed for the next phase of its journey.
Jason Upton
Chief Executive
30 December 2025
Group's Financial Review
Trading
For the twelve months ended 30 June 2025, revenue decreased by GBP6.59m (45%) to GBP8.06m (FY24: GBP14.65m). This primarily
reflects a reduction in development sales, a wind-down of in-house construction services and a reduction in the
provision of property management services.
FY25 FY24 Change Change
Revenue
GBPm GBPm GBPm %
Development sales 6.65 8.97 (2.32) (26)%
Co-Living project management fee 0.07 0.87 (0.80) (92)%
Construction 0.33 4.02 (3.69) (92)%
Development management fee 0.75 0.36 0.39 108%
Property services 0.15 0.32 (0.17) (53)%
Corporate 0.11 0.11 - -
TOTAL 8.06 14.65 (6.59) (45)%
Development sales revenue from legal completions remained the largest contributor to Group revenue, accounting for 83% (FY24: 61%) of total revenue. Overall, there was a reduction in legal completions from 52 in FY24 to 27 in FY25, as well as sales of the building at Seaton House, Stockport and land at Churchgate, Leicester. Victoria Road Eccleshill delivered GBP5.08m from 24 legal completions in a bulk sale to a registered housing provider, Oscar House Manchester delivered GBP0.47m from 2 legal completions, St Petersgate Stockport legally completed 1 sale for GBP0.15m and the building at Seaton House Stockport generated revenue of GBP0.6m.
Co-Living project management relates to the construction works undertaken on Co-Living properties where the Group receives a 5.0% cost plus margin on all works undertaken and generated revenue of GBP0.07m (FY24: GBP0.87m). In addition, construction services generated revenue of GBP0.33m in the period (FY24: GBP4.02m) from the management of construction activity at the Group's development sites as well as on behalf of a related parties.
There was an increase in development management fee income to GBP0.75m (FY24: GBP0.36m) and this relates to management services provided on One Victoria Manchester, One Heritage Tower Salford, Bee Kitchens Salford and the OH UK Holdings group of companies (many of which were disposed of by the Group in FY25).
Property services delivered revenue of GBP0.15m (FY24: GBP0.32m). This was driven by management fees and transaction fees.
FY25 FY24 Change Change
Statement of Comprehensive Income
GBPm GBPm GBPm %
Revenue 8.06 14.65 (6.59) (45%)
Cost of sales (8.20) (13.65) 5.45 (40%)
Cost of sales - Impairment (0.15) (0.82) 0.67 (82%)
Gross Profit (0.29) 0.18 (0.47) (261%)
Gross margin (3.60)% 1.23% (393%)
Administration costs (2.39) (2.62) (0.23) (9%)
Exceptional item 1.41 - 1.41
Operating Loss (1.27) (2.44) 1.16 (48%)
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Finance expense (0.95) (1.12) 0.17 (15%) Finance income 0.51 - 0.51 (Loss) before taxation (1.71) (3.56) 1.84 (52%) (Loss) per share (pence) (4.4) (8.7) 4.30 (49%)
The gross profit declined by GBP0.47m to a gross loss of GBP0.29m (FY24: profit GBP0.18m) due mainly to pursuing a bulk sale of the development at Victoria Road, Eccleshill. The impairment charge in the period was GBP0.15m (FY24: GBP0.82m) with the majority of the charge arising from the Oscar House and St Petersgate developments prior to their disposal from the Group.
Administrative expenses were GBP2.39m in the period (FY24: GBP2.62m). This represents a decrease of GBP0.23m in overheads arising from a number of factors: a lower salary cost driven by a decrease in average headcount to 21 employees (FY24: 30), a decrease in professional and consultancy costs and reductions in travelling and entertainment costs. A review of overheads was undertaken at the beginning of FY25 which resulted in a series of redundancies with headcount realigned to a more sustainable position in terms of revenue streams.
The operating loss decreased by GBP1.16m to a loss of GBP1.28m (FY24: loss of GBP2.44m). This was largely due to the GBP1.41m profit on sale of the four entities disposed of during the year as outlined below. Finance costs were GBP0.95m (FY24: GBP1.12m) whilst finance income was GBP0.51m (FY24: nil). The decrease in finance costs is attributable to the disposal of Oscar House and the repayment of the facility on the bulk sale of plots at Victoria Road, Eccleshill. The finance income was generated on the investment in associate at the One Victoria Manchester development. The pre taxation loss amounts to GBP1.72m which is a reduction of the loss by GBP1.84 (FY24: GBP3.56m). The basic loss per share was 4.4 pence (FY24: loss 8.7 pence).
Balance Sheet
Development inventory has decreased by GBP12.67m from GBP13.27m to GBP0.61m. The key balances remaining are GBP0.38m at Seaton House and some pre-acquisition costs on the New Islington site purchased following the end of the financial year. Whilst there were almost GBP7m of development inventory sales in the year, the reduction was magnified by the sale to OH UK Holdings Limited ("OHUK") - a related party - of One Heritage Oscar House Ltd, One Heritage Bank Street Ltd, One Heritage Lincoln House Ltd and One Heritage St Petersgate Ltd in November 2024, which together had residential and commercial properties valued at approximately GBP7m.
As part of that restructuring, the parent loan ("Previous Facility") from One Heritage Property Development in Hong Kong (OHPD) was repaid in full and terminated, and a new related party loan ("New Facility") was entered into with OHUK at a reduced interest rate of 6% (down from 7%). The loan has a repayment date of 31 December 2026, with an option to extend for up to 24 months. OHUK is a related party, sharing the same majority shareholders as the Company and OHPD. GBP6.7m of this new loan was drawn down on completion and used to partially repay the Previous Facility. The balance of GBP2.1m on the Previous Facility was then waived (as a capital contribution) by OHPD as part of the restructuring. OHUK also agreed to provide access to an additional GBP1.0m of funding (on the same terms as the New Facility) for a period up to 18 months to support the Group with short-term liquidity whilst development inventory was realised.
Simultaneous to the entity disposals, the Group's balance sheet has been strengthened by the acquisition of a 30% stake in the entity that owns the One Victoria Manchester project by purchasing debt and shares to the value of GBP4.1m. The acquisition was funded by drawing down GBP3.0m from the Previous Facility.
The Group's negative equity position has decreased slightly by GBP0.35m from GBP3.95m to negative equity of GBP3.60m. No dividends have been declared in this year due to a continuing loss-making position.
Liquidity
The focus has been on a restructure of the Group and realising development inventory assets.
Net Debt has decreased significantly from GBP16.99m to GBP8.55m. This movement includes:
-- Interest payment of GBP1.02m; -- Repayment in full of the facility on the development assets at Victoria Road, Eccleshill; -- The sale of One Heritage Oscar House Limited including a loan of GBP1.97m; and -- Repayment and termination of the shareholder loan with OHPD and a new facility with OHUK of GBP7m with an additional
GBP1m of working capital funding. This new loan has an improved debt servicing cost of 6%.
Net Cash inflow from operating activities was GBP3.5m, primarily due to the cashing in of stock inventory, albeit at nominal profit.
In summary, the Company's operational and financial performance will improve as it recycles cash into new developments such as the New Islington acquisition and future development and development management opportunities which will be carefully sourced and managed to improve operational efficiency. The operational and financial restructures which have taken place during the year have accelerated this strategy and put the Group on a stronger financial footing.
The Going Concern statement on page 21 outlines 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, including their views on the material uncertainty contained within that statement.
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 Company 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 and 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.
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