Executive Chairman's Statement

For the six-month period to 30 September 2021

Results and Financial position

Profit before taxation for the six month period to 30 September 2021 was £0.327m compared to £0.058m for the comparative period to 30 September 2020 and £0.281m for the period to 30 September 2019. This demonstrates strong recovery by the Company since the disruption caused by three national lockdowns ordered by the UK Government to contain the spread of Covid-19 during our trading year to 31 March 2021.

As at 30 September 2021, net assets were £50.835m (39.1pence per share), up from £47.153m (40.7pence per share) at 31 March 2021. The increase reflects the issuance of 14 million new ordinary shares which raised £3.5m of new equity capital in August 2021. There has been no revaluation of assets during the reporting period, with the next external independent valuation due to be undertaken at the financial year end.

Net Debt has fallen to £24.905m, £1.969m less than the position at 31 March 2021 of £26,874 net debt. Debt reduced following the equity raise in August 2021, however purchase of some strategic land, ongoing costs associated with active development projects and autumn being a lower point in the Group's annual cash cycle (as rents and berthing fee receipts peak between November and April) have utilised some of the funds raised. As at 30 September 2021 gearing stood at 49.0% down from 57.0% as at 31 March 2021.

Trading Report

The Group's trading businesses have proved resilient during the first half year with marina berthing revenues up 19% on the previous year, despite no increase in prices, car park revenues back to 2019 levels and rent incomes restored with agreed deferred payments being honoured. Trading at Plymouth Fisheries has continued to be slow and slightly trailing its pre- Covid level.

The exceptional growth in marina revenues results from the capacity occupation at Sutton Harbour Marina and 95% occupation at King Point Marina. Leisure boating in the UK has experienced a resurgence in popularity since the Covid crisis and the current outlook for this sector remains robust. Some minor alterations will be made to some berths at King Point Marina over the coming winter to accommodate the larger vessels of boat-owners currently on our waiting list.

Trading at the car parks was re-established quickly during the first quarter and continued strongly throughout the second quarter as the area attracted good visitor footfall and local bars, restaurants and other attractions were visibly busy.

Performance of the investment property estate has remained steady, with little vacant space to let. The lease of Old Barbican Market to Edinburgh Woollen Mill expired in May 2021 and the Group recovered vacant possession of the building. Planning consent has now been granted to partition the 7,500 sq ft floorplate into three 2,500 sq ft units, two of which are already reserved to national covenant tenants. The 3^rd unit is being actively marketed. Overall, once fully let, the property will achieve c. 50% more rent than under the previous tenancy. During the first half year the Group sold a small investment property, which was not regarded as a part of the core Sutton Harbour estate, at a profit.

The slowing trend in landings at Plymouth Fisheries has been consistent for a few years. With the current Fisheries Complex now 27 years old, the Group is working together with Plymouth City Council and other stakeholders on a plan to gain public funding for a modern Fishery Complex better suited to the needs of the industry now and into the future.

Regeneration

The Group is pleased to report that it has started the preliminary site works on the 14 apartment Harbour Arch Quay scheme. The year-long construction programme will commence in January 2022 with marketing of the apartments to start early in the New Year. The building is financed by separate lending secured on the development with part to be funded from the recent equity raise. The Group has submitted variations to the original plans for both the Sugar Quay and Sutton Road East residential schemes, which between them will provide c. 300 new homes, for planning determination in early 2022. Changes to the Sutton Road East design followed the acquisition of an adjoining site in September 2021 which allowed improvements to pedestrian and vehicular access and circulation through the development.

Summary

With the staged relaxation of UK Government imposed measures to manage the Covid pandemic, the Group has accelerated its efforts to start its first development project around Sutton Harbour in over a decade. During the first half year, the Group has made encouraging progress with its trading business activities and with the pipeline of development projects which it now intends to bring forward in accordance with its strategic vision. The Board was delighted to see the broad base of shareholders who participated in the recent 'Open Offer' equity raise.

Philip Beinhaker

EXECUTIVE CHAIRMAN