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 2024.

Financial highlights  

• Revenue of £1.97m (H1 FY24 for the six-month period to 31 December 2023: £9.15m). This primarily reflects a reduction in development sales and construction service activity.
• Gross loss increased by £0.87m to £0.71m (H1 FY24: profit £0.16m) as a result of increased impairments in the current year with the strategy to market bulk sales of some inventory, with a charge of £1.0m (H1 FY24: £0.33m) being recognised in the period. However, the Group recorded a smaller loss before tax of £0.07m (H1 FY24: loss £1.94m) following the disposal of four entities during the period.
• Basic loss per share (pence) of 0.2 (H1 FY24: 5.2).
• Net debt of £11.24m (H2 FY24: £16.98m) a decrease of £5.74m reflecting the disposal of entities with debt obligations and a £2.1m shareholder debt waiver.
• Inventory reduced in the period by £7.42m to £5.85m (H2 FY24: £13.27m) reflecting completed sales and entity disposals.

Operational highlights 

• Significant debt reduction and restructuring, including the writing off of £2.1m in shareholder debt (as well as securing a lower interest rate) has strengthened our balance sheet, reducing financial risk, and increasing investment capacity for future developments.
• Expanding our development pipeline with the £3 million investment in One Victoria, Manchester, a high-profile development project.
• Transitioned from the Main Market of the London Stock Exchange to the Access Segment of AQUIS Stock Exchange.

Post Period Events

• Sale of 19 of the 24 plots at One Meadow, Eccleshill to a Registered Housing Provider for £4.0m.
• Contract exchange on the acquisition of a parcel of land at Old Mill St, Manchester for £1.4m.
• Extended a £0.5m unsecured loan to 15th March 2026 at a reduced interest rate of 6% (previously 8%).
• Securing a sale at auction of land at Churchgate, Leicester for £0.25m.

Outlook 

• On track to continue to sell down of inventory in FY25, including 5 plots at One Meadow, Eccleshill and land at Seaton House, Stockport.
• Continued development management of the 129-unit One Victoria project in Manchester and commencement of a project in New Islington, Manchester.
• With a determined focus on finding good development and development management opportunities, we are cautiously exploring several promising options in core city centre locations for apartments, as well as high-demand areas for new build housing projects.

Commenting on the Group’s performance, Jason Upton, Chief Executive Officer said:

“This has been a pivotal period for the Group, marked not only by significant operational and financial progress but also by our successful rebranding as Zentra and our transition to the Aquis Stock Exchange. These changes reflect our ambition to create a more focused, agile, and opportunity-driven business, positioning us for the next phase of growth.

We have materially strengthened our balance sheet through asset disposals, debt reduction, and the waiver of shareholder loans, giving us a stronger foundation and greater financial flexibility. While the decision to actively market some inventory has impacted short-term margins, it has been the right step in aligning the Group for sustainable value creation.

The expansion of our pipeline, including the investment into One Victoria in Manchester and New Islington, underlines our commitment to delivering high-quality developments in city centre and high-demand housing locations across the North. With a revitalised brand, an experienced team, and a clearer strategic direction, we are well-placed to capitalise on future opportunities and deliver long-term shareholder value.“