Palace Capital swings to annual profit on smaller investment loss

(Alliance News) - Palace Capital PLC on Thursday announced a swing to profit as it said it continued to make "good progress" with its asset management activities.

The London-based property investor reported a pretax profit of GBP1.4 million for the financial year ended March 31, swung from a GBP9.3 million loss the year before.

Basic earnings per share were 4.5 pence, compared with loss per share of 23.7p.

EPRA net tangible asset per share fell 4.2% to 251p as at March 31 from 262p a year prior.

Revenue declined 32% to GBP13.2 million from GBP19.6 million. Gross property income decreased to GBP6.9 million from GBP12.1 million. Net rental income dropped 50% to GBP4.8 million from GBP9.6 million.

Cost of sales came down 20% to GBP7.9 million from GBP9.8 million, while administrative costs reduced 28% to GBP2.9 million from GBP4.0 million.

Pertinently, Palace Capital reported a loss on the revaluation of investment property portfolio of GBP2.9 million in financial 2025, sharply lower than GBP15.4 million in financial 2024.

Dividends during the year totalled 15.0p per share, unchanged on-year.

"During the financial year...we made further progress on our strategy to return capital to shareholders through the disposal of investment and residential properties. This was achieved through the sale of GBP35.0 million of assets at 6.0% above the 31 March 2024 valuation and returning cash of GBP21.7 million to shareholders by way of a successful, oversubscribed tender offer in July 2024," Executive Chair Steven Owen said.

He continued: "The success of our disposal strategy since July 2022 means that the company is now debt free and the remaining portfolio is unencumbered...It is therefore anticipated that the company will return further cash to shareholders by way of a tender offer expected to be in July once the disposal of its property at Leamington Spa has been completed."

Furthermore, Owen said the company continued to make good progress with its asset management activities, aimed at enabling the remaining properties to be ready for sale.

Palace Capital shares were 2.0% higher at 225.42 pence each on Thursday afternoon in London.

By Tom Budszus, Alliance News slot editor

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