CHAIRMAN'S STATEMENT

I am pleased to report on a transformational year for Parkmead in 2025.

Building upon our experience and detailed understanding of the challenges and uncertainty facing the future of the UK offshore oil & gas industry, the Board's strategy of diversifying our asset base has proven its worth. Our UK onshore renewables portfolio has provided a platform for the Group to drive forward, despite the political headwinds faced by the upstream E&P sector. Renewable energy is growing to become a more substantial part of our overall revenue, totalling 15% in FY25 compared with 12% in the prior year. This growth in green energy complements our low carbon, natural gas production in the Netherlands.

Through focused management, the Group has delivered a 39% increase in earnings per share of 6.72p and profit after tax of £7.35 million. The key component of this was the successful sale of Parkmead's wholly owned subsidiary Parkmead (E&P) Limited. Through this innovative deal we will receive £14 million of firm cash consideration and also retain significant upside relating to each of the two offshore exploration licences we sold. Up to a further £120 million may become payable to Parkmead, should field development plans be approved in the future.

Our strong financial position and broad asset base positions Parkmead extremely well, with no material capital commitments. Our natural gas fields in the Netherlands provide ongoing production and opportunities for organic growth via further drilling for additional reserves.

Parkmead is now very well placed to exploit new growth opportunities during the next phase of the Company's development, as we look to build value from renewable energies and natural gas.

Strong Financial Performance

Parkmead has delivered a record profit after tax of £7.35m (FY24: £4.94m) due to the large gain realised from the disposal of Parkmead (E&P) Limited, coupled with strong operating performance. This is equivalent to earnings per share of 6.72p (FY24: 4.52p).

Group turnover for the year was £4.1m (FY24: £5.7m). The year-on-year decrease was due to a reduction in gas volumes as a result of some maintenance shut downs and natural decline. The average realised gas price in the period increased to €40.1/MWh (FY24: €34.2/MWh). Electricity generation at Kempstone Hill increased to 2,717MWh (FY24: 2,570 MWh).

Operating costs have remained very tightly controlled at £2.2m (FY24: £2.3m) contributing to a strong operating profit for the period of £7.5m (FY24: £1.3m).

Parkmead continued to build a strong balance sheet with net assets increasing by 38% to £27.0m equivalent to 25 pence per share (FY24: £19.6m). Cash and cash equivalents in the year rose 39% to £13.2m (FY24: £9.5m).

Our modest financial debt has continued to reduce with £0.7m outstanding at 30th June 2025 (FY24: £0.8m). This small debt was inherited as a result of the acquisition of Kempstone Hill Wind Energy Limited.

Strategic Divestment of Parkmead (E&P) Limited

Parkmead carefully considered the outlook for its UK North Sea oil licences and the major capital requirements that would be needed were they to be progressed through drilling, appraisal and development. The offshore sector has serious difficulties in the form of high and rising costs and the current negative political environment towards UK oil & gas, with the focus of the UK Government on its net-zero strategy. In this context, Parkmead believes that the opportunity to progress these offshore UK licences is best served within the portfolio of a larger, North Sea focused company.

Parkmead remains exposed to the large upside on both the Skerryvore and Fynn licences, but without any capital requirements, through contingent payments of up to £30m and £90m respectively, should Skerryvore or Fynn reach field development plan (FDP) approval.

Post completion, the Skerryvore joint venture received an 18 month extension on the licence to 31 March 2027 to allow time for the drilling of the commitment well.

Netherlands Gas Assets Expanding

Parkmead's portfolio of onshore natural gas fields in the Netherlands has continued to perform in line with expectation. Gross production across the portfolio was 2.1kboepd (thousands of barrels of oil equivalent per day).

The outlook for the Drenthe VI concession is particularly exciting, with numerous attractive prospects being analysed. Parkmead has also agreed the unitisation of the neighbouring VDW-A prospect, which sits partially on its Drenthe VI concession, ahead of a potential Final Investment Decision being taken by the partnership.

At the Company's important Papekop field development, work is ongoing with detailed surface, well and pipeline work scheduled for 2026.

At Drenthe V plans are continuing to prepare well design and long lead requirements for a GSB-02 well in 2026. This includes targeting new gas reserves which are now understood to be separated from, and therefore additional to, the rest of the field. Recent technical work has calculated that significant in-place gas volumes of 157Bcf remain at Geesbrug and Geesbrug-02.

UK Renewable Energy Portfolio is Growing

Kempstone Hill Wind Farm

Our operated wind farm at Kempstone Hill has continued to perform well during the year, generating 2,717MWh (FY24: 2,570MWh) of electricity. Excellent uptime has been achieved, allowing for more power to be generated in the period, with average uptime of 98% during the year (FY24: 90%). Shut downs for routine maintenance in the prior period reduced uptime.

Following the year end, the Group successfully negotiated an updated Purchase Price Agreement covering Kempstone for the twelve month period ending 30 September 2026 at an average export price of £87.6/MWh.

Pitreadie Wind and Solar Projects

Parkmead is in advanced commercial discussions with a major renewable energy developer, Galileo Empower, regarding a potential joint venture whereby Parkmead would participate in a significant renewable energy development of up to 98 MW of generation via 14 wind turbines, 20MW of solar photovoltaics (PV) and 30MW of battery energy storage system (BESS). Together these three projects at Pitreadie form the Glenskinnan Renewable Energy Park.

Initial public consultation was completed in 2025 and over the coming months further consultations are scheduled before a Section 36 planning application is lodged.   

Parkmead's owned land at Pitreadie is expected to accommodate over 50% of the combined installed capacity proposed in the planning application, making it a central component of the development.

Brachmont Solar Opportunity

Parkmead's renewable energy team is examining a number of further solar power opportunities. Studies include the technical merits and commercial potential to develop a solar energy farm in the Brachmont area of Aberdeenshire, where conditions appear favourable.

Outlook

We are in a position of relative financial strength due to our Netherlands gas and UK renewable income streams, our healthy cash balances and carefully controlled costs. In addition, the Group has exposure to significant upside potential from future contingent payments of up to £120m should FDP approvals occur on the Skerryvore and Fynn Beauly UK offshore licences.

As set out above, we believe that there is an opportunity to deliver significant shareholder value from the groundwork we have done to date. Parkmead continues to progress its attractive hopper of organic growth initiatives, such as the Glenskinnan Renewable Energy Park development opportunity, whilst expanding our portfolio of natural gas targets in the Netherlands. We are also focused on complementing our organic growth by exploring opportunities to build upon the Group's asset base through carefully selected acquisitions.

Oil and gas will continue to play an important role in the global energy mix and we are continuing to assess international E&P investment in lower cost environments than the UK North Sea.

Beyond these opportunities, we are also targeting the acquisition of further cashflow generating renewable energy assets onshore UK to deliver additional value for our shareholders.

Tom Cross

Executive Chairman

24 November 2025    

Group statement of profit or loss and other comprehensive income

for the year ended 30 June 2025

Group statement of financial position

as at 30 June 2025

Group statement of changes in equity

for the year ended 30 June 2025

Group statement of cashflows

for the year ended 30 June 2025

Notes to the financial information for the year ended 30 June 2025

1.   Basis of preparation of the financial information

The financial information set out in this announcement does not comprise the Group and Company's statutory accounts for the years ended 30 June 2025 or 30 June 2024.

The financial information has been extracted from the audited statutory accounts for the years ended 30 June 2025 and 30 June 2024. The auditors reported on those accounts; their reports were unqualified and did not contain a statement under either Section 498 (2) or Section 498 (3) of the Companies Act 2006 and did not include references to any matters to which the auditor drew attention by way of emphasis.

The statutory accounts for the year ended 30 June 2024 have been delivered to the Registrar of Companies. The

statutory accounts for the year ended 30 June 2025 will be delivered to the Registrar of Companies following the

Company's Annual General Meeting.

The accounting policies are consistent with those applied in the preparation of the interim results for the period ended 31 December 2024 and the statutory accounts for the year ended 30 June 2024 and have been prepared in accordance with UK-adopted International Accounting Standards ("IFRS").

2.   Administrative expenses

Administrative expenses include a charge in respect of a non-cash revaluation of share appreciation rights (SARs) and share based payments totalling £32,000 (2024: credit £661,000). The SARs may be settled via shares or cash and are therefore revalued with the movement in share price. The valuation was impacted by the increase in share price between 30 June 2024 and 30 June 2025.

3.   Profit / (loss) per share

Profit/(loss) per share attributable to equity holders of the Company arise from continuing and discontinued operations as follows:

The calculations were based on the following information:

Profit/(loss) per share is calculated by dividing the profit/(loss) for the year by the weighted average number of ordinary shares outstanding during the year.

Diluted profit/(loss) per share

Profit/(loss) per share requires presentation of diluted profit/(loss) per share when a company could be called upon to issue shares that would decrease net profit or net loss per share. When the group makes a loss the outstanding share options are therefore anti-dilutive and so are not included in dilutive potential ordinary shares.

4.   Notes to the statement of cashflows

Reconciliation of operating profit to net cash flow from continuing operations

5.   Approval of this preliminary announcement

This announcement was approved by the Board of Directors on 24 November 2025.

6.   Publication of annual report and accounts

Copies of the Annual Report and Accounts will be made available shortly on the Company's website www.parkmeadgroup.com, along with a copy of this announcement.