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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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.
This Strategic Report was approved by the Board of Directors on 30 December 2025 and was signed on its behalf by:
Jason David Upton
Company registration number: 12757649
Statement of Directors' Responsibilities
DIRECTORS' RESPONSIBILITIES
The Directors are responsible for preparing the Annual Report and the Group and parent Company financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare Group and parent Company financial statements for each financial year. Under that law they are required to prepare the Company financial statements in accordance with UK adopted international accounting standards in conformity with the requirements of the Companies Act 2006 and applicable law and have elected to prepare the parent Company financial statements in accordance with FRS 101 and applicable law (UK Generally Accepted Accounting Practice), including FRS 101 Reduced Disclosure Framework.
Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and parent Company and of the Group's profit or loss for that period. In preparing each of the Group and parent Company financial statements, the Directors are required to:
- select suitable accounting policies and then apply them consistently; - make judgements and estimates that are reasonable, relevant, and reliable; - for the Group financial statements, state whether they have been prepared in accordance with international
accounting standards in conformity with the requirements of the Companies Act 2006 and, as regards the Group
financial statements, UK adopted international accounting standards; - for the parent Company financial statements, state whether applicable UK accounting standards have been followed,
subject to any material departures disclosed and explained in the financial statements; - assess the Group and parent Company's ability to continue as a going concern, disclosing, as applicable, matters
related to going concern; and - use the going concern basis of accounting unless they either intend to liquidate the Group or the parent Company or
to cease operations or have no realistic alternative but to do so.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the parent Company's transactions and disclose with reasonable accuracy at any time the financial position of the parent Company and enable them to ensure that its financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.
Under applicable law and regulations, the Directors are also responsible for preparing a Strategic Report, Directors' Report, Directors' Remuneration Report and Corporate Governance Statement that complies with that law and those regulations.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
WEBSITE PUBLICATION
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
By order of the Board
Jason Upton
Chief Executive Officer
30 December 2025
FINANCIAL STATEMENTS
Independent Auditor's Report to the Members of Zentra Group PLC
Opinion
We have audited the financial statements of Zentra Group plc (the "Parent Company") and its subsidiaries (the "Group") for the year ended 30 June 2025, which comprise:
-- the Consolidated statement of comprehensive income for the year ended 30 June 2025; -- the Consolidated and parent company statement of financial position as at 30 June 2025; -- the Consolidated statement of cash flows for the year then ended; -- the Consolidated and parent company statements of changes in equity for the year then ended; and -- the notes to the financial statements, including material accounting policies.
The financial reporting framework that has been applied in the preparation of the Group financial statements is applicable law and UK-adopted international accounting standards. The financial reporting framework that has been applied in the preparation of the Parent Company financial statements is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).
In our opinion:
-- the financial statements give a true and fair view of the state of the Group's and of the Parent Company's affairs
as at 30 June 2025 and of the Group's loss for the year then ended; -- the Group financial statements have been properly prepared in accordance with UK-adopted international accounting
standards; -- the Parent Company financial statements have been properly prepared in accordance with United Kingdom Generally
Accepted Accounting Practice; and -- the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group and the Parent Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard as applied to listed entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Material uncertainty related to going concern
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We draw attention to note 3 in the Group financial statements and C1 of the Parent Company financial statements, which indicates that Group and Parent Company are reliant on support from related entities, including OH UK Holdings Limited, which is dependent upon the completion of a number of material transactions within its wider group, including a refinancing and an asset disposal. There is a risk that if these transactions are not completed within expected timeframes the Group and Parent Company may not have sufficient cash balances to meet their liabilities. As stated in note 3, these events or conditions, together with other matters set out therein, indicate that a material uncertainty exists that may cast significant doubt on the Group and Parent Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors' assessment of the Group's and Parent Company's ability to continue to adopt the going concern basis of accounting included:
-- obtaining and agreeing the directors' going concern assessment to the Board approved cash flow forecast; -- obtaining confirmation for the financing facilities including nature of facilities, repayment terms and covenants
to ensure that these facilities remain available; -- testing the model used to prepare the forecasts to ensure that the formulae within the spreadsheet were
arithmetically accurate; -- identifying timing of receipt of revenue and payments as the key assumptions inherent in the plan and considered
whether timing of future revenue receipts were reasonable based on our knowledge of the ongoing activities of the
entity; -- considering the feasibility of identified mitigating actions; -- assessing post year end performance including revenues received and gross margins compared to forecasts; -- assessing the appropriateness of the disclosure in the financial statements relating to the going concern position
of the group, including consideration that there is no material uncertainty identified.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Overview of our audit approach
Materiality
In planning and performing our audit we applied the concept of materiality. An item is considered material if it could reasonably be expected to change the economic decisions of a user of the financial statements. We used the concept of materiality to both focus our testing and to evaluate the impact of misstatements identified.
Based on our professional judgement, we determined overall materiality for the Group financial statements as a whole to be GBP96,000, based on approximately 1.6% of Group gross assets. Materiality for the Parent Company financial statements as a whole was set at GBP72,000 based on approximately 1.7% of gross assets.
We use a different level of materiality ('performance materiality') to determine the extent of our testing for the audit of the financial statements. Performance materiality is set based on the audit materiality as adjusted for the judgements made as to the entity risk and our evaluation of the specific risk of each audit area having regard to the internal control environment. This is set at GBP67,200 for the group and GBP50,400 for the parent.
Where considered appropriate performance materiality may be reduced to a lower level, such as, for related party transactions and directors' remuneration.
We agreed with the Audit and Risk Committee to report to it all identified errors in excess of GBP4,550. Errors below that threshold would also be reported to it if, in our opinion as auditor, disclosure was required on qualitative grounds.
Overview of the scope of our audit
Our Group audit was scoped by obtaining an understanding of the Group and its environment, including Group-wide controls, and assessing the risks of material misstatement at the Group level.
For one component we performed a full scope audit of the complete financial information. For the remaining components, we performed analytical reviews and other audit procedures on specific accounts within that component that we considered had the potential for the greatest impact on the significant accounts in the financial statements, either because of the size of these accounts or their risk profile. We also performed audit work on the consolidation adjustments.
Our scoping is based on the Group's consolidation structure. Audits of the components were performed at a materiality level calculated by reference to a proportion of Group materiality appropriate to the relative scale of the business concerned. We also audited the consolidation process itself.
The group audit team conducted the audit of all relevant components of the business. No component auditors were used during the audit process.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
In addition to the matter described in the Material uncertainty related to going concern section, we have determined the matter described below to be the key audit matters to be communicated in our report.
This is not a complete list of all risks identified by our audit.
Key audit matter How the scope of our audit addressed the key audit matter
Our work included the following:
-- Comparing the carrying amount of the loan to associate
with the relevant forecasts for the underlying
development properties to identify whether their
financial position supported the carrying amount of the
Recoverability of loan to associate loan and evaluating forecasts in line with our knowledge
of the entity. This procedure was also relevant for our
assessment of going concern.
Loan to associate (as per note 15) amounted to GBP3,507,572
(2024 GBPNil)
-- We have also considered the disclosure of the
The loan to associate represents 60% of the Group's circumstances identified by management in respect of the
assets. Due to its materiality in the context of the carrying value of the investments and intercompany loan
parent Company and Group financial statements, this is receivable from the subsidiary.
considered to be the area that had the greatest effect on
our overall parent Company audit. There is a key
judgement over the recoverability based on the sale of
underlying assets in the associate.
The results of our testing were satisfactory and we found the
carrying value and associated disclosure of the loan to
associate to be acceptable. We concluded that the assessment
of recoverability is not at a high risk of significant
misstatement as the carrying value is supported by the net
asset value of the associate and the profits forecast to be
made on sale of the development properties owned by the
associate.
Other information
The directors are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion based on the work undertaken in the course of our audit
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-- the information given in the strategic report and the directors' report for the financial year for which the
financial statements are prepared is consistent with the financial statements; and -- the directors' report and strategic report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not
been received from branches not visited by us; or -- the parent company financial statements are not in agreement with the accounting records and returns; or -- certain disclosures of directors' remuneration specified by law are not made; or -- we have not received all the information and explanations we require for our audit.
Responsibilities of the directors for the financial statements
As explained more fully in the directors' responsibilities statement [set out on page …], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group's and parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of the legal and regulatory frameworks within which the Group and Parent Company operates. We also considered and obtained an understanding of the UK legal and regulatory framework which we considered in this context were the Companies Act 2006 and UK taxation legislation.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management, misstatement of income and the recoverability of loans from associates. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing of journals. We also reviewed and challenged accounting estimates and assumptions used by management for the going concern assessment, recoverability of loans, existence of revenue and revenue cut off, in order to verify that the calculations and models were reasonable and free of biases. We selected a sample of transactions around the year end to verify that revenue cut off had been applied correctly and also a sample of transactions throughout the period to ensure existence.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.
A further description of our responsibilities is available on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Michael Jayson
(Senior Statutory Auditor)
For and on behalf of
Crowe U.K. LLP
Statutory Auditor
Manchester
30 December 2025
Consolidated statement of comprehensive income
For the year ending 30 June 2025
Year to Year to
GBP unless stated Notes
30 June 2025 30 June 2024
Revenue 6,7 8,059,117 14,650,154
Revenue - developments 8,059,117 14,650,154
Cost of sales (8,351,170) (14,473,775)
Cost of sales - developments (8,204,840) (13,657,663)
Cost of sales - write down of inventory 6 (146,330) (816,112)
Gross profit (292,053) 176,379
Administration expenses 8 (2,394,379) (2,622,935)
Exceptional item 14 1,406,468 -
Operating (loss) for the year (1,279,964) (2,446,556)
Finance expense 10 (948,502) (1,117,234)
Finance income 15 507,572 -
(Loss) before taxation for the year (1,720,894) (3,563,790)
Taxation 11 21,131 184,012
(1,699,763)
(Loss) after taxation and comprehensive income for the year (3,379,778)
Weighted average shares in issue over the period 38,678,333 38,678,333
(Loss) per share (GBpence) (4.4) (8.7)
Diluted (loss) per share (GBpence) (4.4) (8.7)
The accompanying notes on pages 44 to 69 form an integral part of the financial statements.
Consolidated statement of financial position
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As at 30 June 2025
30 June 2025
GBP unless stated Notes 30 June 2024
ASSETS
Non-current assets
Property, plant and equipment 12 103,006 177,204
Intangible assets - 1,680
103,006 178,884
Current assets
Inventory - developments 13 610,395 13,273,743
Investment in associate 15 3,507,572 -
Trade and other receivables 16 722,772 1,312,476
Cash and cash equivalents 947,351 88,161
5,788,090 14,674,380
TOTAL ASSETS 5,891,096 14,853,264
LIABILITIES
Non-current liabilities
Borrowings 18 7,941,713 11,097,615
7,941,713 11,097,615
Current liabilities
Trade and other payables 19 899,950 1,826,470
Borrowings 18 605,347 5,877,673
1,505,297 7,704,143
TOTAL LIABILITIES 9,447,010 18,801,758
EQUITY
Share capital 22 386,783 386,783
Share premium 22 4,753,325 4,753,325
Capital Contribution Reserve 18 2,092,343 -
Retained earnings (10,788,365) (9,088,602)
TOTAL EQUITY (3,555,914) (3,948,494)
TOTAL LIABILITIES AND EQUITY 5,891,096 14,853,264
These financial statements were approved by the Board of Directors on 30 December 2025 and were signed on its behalf by:
Jason David Upton
Company registration number: 12757649
The accompanying notes on pages 44 to 69 form an integral part of the financial statements.
Consolidated statement of cash flows
For the year ending 30 June 2025
Year to
Year to
GBP unless stated Notes 30 June 2025
30 June 2024
Cash flows from operating activities
Operating loss for the year before tax (1,279,964) (2,446,556)
Adjustments for:
Profit on disposal of subsidiaries 14 (1,406,468) -
Loss on disposal of fixed assets 8,732 1,002
Depreciation of property, plant and equipment 8, 12 68,841 104,750
Amortisation of intangible asset 8 1,680 411
Movement in working capital:
Decrease/(increase) in trade and other receivables (237,165) 787,693
Decrease/(increase) in inventories 6,704,686 3,667,813
(Decrease)/Increase in trade and other payables (70,264) (502,261)
(Decrease)/Increase in third party borrowings 18 (2,011,178) -
(Decrease)/Increase in related party borrowings 1,734,382 -
Cash inflow/ (outflow) from operations 3,513,282 1,612,852
Taxation received/(paid) 21,131 (66,934)
Net cash generated from/(used in operating) activities 3,534,413 1,545,918
Cash flows from investing activities
Purchases of property, plant and equipment 12 (3,375) (4,284)
Net cash used in investing activities (3,375) (4,284)
Cash flows from financing activities
Interest paid 10, 18 (285,688) (1,482,411)
Proceeds from third party borrowings 18 688,248 5,572,200
Repayment of third party borrowings 18 (3,968,120) (4,559,386)
Proceeds of related party borrowing 18 2,514,637 10,149,165
Repayment of related party borrowings 18 (1,534,302) (11,350,234)
Payments made in relation to lease liabilities 12 (86,623) (86,623)
Net cash (used in)/generated from financing activities (2,671,848) (1,757,289)
Net change in cash and cash equivalents 859,190 (215,655)
Opening cash and cash equivalents 88,161 303,816
Closing cash and cash equivalents 947,351 88,161
The accompanying notes on pages 44 to 69 form an integral part of the financial statements.
Consolidated statement of changes in equity
For the year ending 30 June 2025
Share Share Retained Total
Capital contribution
GBP unless stated reserve
capital premium earnings Equity
Balance at 01 July 2024 386,783 4,753,325 - (9,088,602) (3,948,494)
Loss for the period - - - (1,699,763) (1,699,763)
Total comprehensive loss for the - (1,699,763) (1,699,763)
year
Loan waiver - - 2,092,343 - 2,092,343
Balance at 30 June 2025 386,783 4,753,325 2,092,343 (10,788,365) (3,555,914)
For the year ended 30 June 2024
Share Share Retained Total
Capital contribution
GBP unless stated reserve
capital premium earnings Equity
Balance at 01 July 2023 386,783 4,753,325 - (5,708,824) (568,716)
Loss for the period - - - (3,379,778) (3,379,778)
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