Further re: Trading Update

In response to shareholder enquiries, the Company provides further detail relating to the Trading Update announced on 3 May 2024.

On 3 May 2024 the Company provided guidance that its profit before taxation for the year ended 30 April 2024 would be in the range of two to three times higher than the profit before taxation of £192,000 which it reported for the year ended 30 April 2023.

The increase in profitability largely resulted from the completion of a number of transactions (the "Transactions") in the period immediately prior to the year end. The Transactions were all within the Company's ordinary course of business. As stated in previous announcements, such transactions are difficult to predict in terms of timing, outcome, and fee implication. Timings are to a large extent outside the control of the Company and it was therefore especially pleasing to finalise these Transactions just before the year-end.

The Company's investment team has worked hard to secure deals in a market that has remained cautious throughout the year. The number of deals completed has been relatively low but this has been compensated by a higher than normal average deal size.

The Company has continued to focus on improving non-transactional fees from the core service of property and asset management. Some additional instructions have been won during the year further improving recurring revenue under contract.

The Company's valuation team has grown to meet the increased volume of instructions from the major high street banks and this has translated into improved recurring fee income in this area.

There has been a noticeable improvement in the engagement of the Valuation Office Agency ("VOA") in settling rating appeals and this has helped to generate increased fee income in this area of business. We hope that this increased engagement will continue in subsequent periods and allow for timely settlement of appeals.

As announced on 21 December 2023 in the Interim Statement, a new planning service commenced in November 2023 and this has started very positively with some good fee income.

One of the investment transactions was the sale of the underlying property in the SHIPS 16 Syndicate, in which the Company had a co-investment and acted as adviser. The property had been revalued downwards over the last few years, with the revaluations reflected in the Report and Accounts, and the property was sold at almost exactly the value of the most recent valuation. Whilst it is disappointing to crystalise a loss on this property, it reflects the changing office market in a post-covid world.

The Company remains well supported by a strong balance sheet with no debt, providing optionality for investment activity including co-investment in in-house property syndicates and any value accretive corporate opportunities.

The Directors will carefully consider the level of dividend to recommend to shareholders based on the audited final results. The Company has a track record of distributing profits and the final dividend can therefore be expected to be higher than last year.

As announced previously, the Company expects to announce Final Results for the year ended 30 April 2024 before the end of August 2024.