Palace Capital (PCA) Transition period summary

Executive summary

• Adjusted loss before tax of £0.1m for the six months to 31 March 2026, compared to a £1.5m profit in the prior year, reflecting lower income after asset disposals and reduced rental and interest income.

• IFRS loss before tax was £5.4m, mainly due to a £5.5m fair value loss on investment properties and a £0.5m impairment on trading properties.

• NAV per share decreased by 14% to 210p, driven by property revaluation losses, trading property impairments, and dividends paid in excess of adjusted earnings.

• Portfolio reduced to five properties valued at £31.3m, with significant declines in leisure and office asset values.

• Company remains debt-free with £12.8m cash at period end, following major property disposals.

Financial highlights

• Gross property income fell to £2.0m from £3.1m year-over-year, with net rental income dropping to £0.7m from £2.1m.

• Recurring administrative expenses reduced by £0.2m, trending towards an annualised run rate below £0.8m.

• Dividends paid totaled 7.5p per share, unchanged from the prior period.

• Total property portfolio valuation decreased by 16% like-for-like from September 2025.

• Cash increased to £12.8m from £4.6m at September 2025, mainly from property sales.

Outlook and guidance

• Board prioritises share buybacks over further dividends, with distributable reserves at £6.9m post-period end.

• Dividends paid in the last 12 months exceed unaudited property rental profits and adjusted earnings.

• Board will consider reintroducing dividends after completion of share buybacks.