Workspace Group PLC — Annual Report 2025

Jun 13, 2025

Workspace Group PLC Annual Report and Accounts 2025 Strategic Report

Our Business Model

Our proprietary, in-house operating platform is a combination of skilled teams, smart systems and actionable data. It enables us to manage a huge volume of customer activity in house, from enquiries and viewings through to lettings, facilities management, billing and lease renewals. We have further invested in technology, working towards the centralisation of our systems and launch of our new CRM system. There is still work to be done to enhance our operating platform. With dynamic systems in place, we will drive further efficiencies and better leverage our business-intelligence capabilities to truly become a data-driven organisation.

HOW WE PRIORITISE OPERATIONAL EXCELLENCE TO MEET CUSTOMER NEEDS

HOW WE CREATE A UNIQUE, HIGH-QUALITY PORTFOLIO FOR LONG-TERM GROWTH

LEADING CUSTOMER PROPOSITION SUPPORTED BY OUR SMART OPERATING PLATFORM

CREATING A UNIQUE PORTFOLIO DELIVERING INCOME AND CAPITAL GROWTH

BUILDING CLIMATE RESILIENCE DELIVERED BY GREAT PEOPLE

CONTINUED HOW SUSTAINABILITY SUPPORTS OUR AIM TO CREATE A FAIRER, FLATTER LONDON

Our buildings are deeply embedded in the communities where we operate. With over four million square feet across 18 London boroughs, our investment and operations directly support local economies, creating employment opportunities and serving the needs of local businesses. By providing high-quality, sustainable and affordable work spaces in emerging areas, we are flattening the working map of London.

HOW SUSTAINABILITY SUPPORTS THE DRIVE FOR OPERATIONAL EXCELLENCE

We embrace a performance-driven mindset, with our sustainability initiatives playing a key role in helping us operate efficiently, reducing both costs and resource use. This focus is increasingly important as our customers themselves are sustainability-driven, and meeting their expectations remains a top priority.

Our employees are the drivers of our success. We have a vibrant, diverse and inclusive culture, underpinned by a clear purpose and set of values, which our staff surveys consistently show are well understood. Our culture helps attract and retain people who align with these values and have a broad range of skills, experience and backgrounds. As a responsible employer, we are committed to widening access to our profession. We do this through apprenticeships, structured career pathways, and meaningful work experience. We are reviewing how we operate as a business to create better accountability, empower our frontline teams and ensure we are delivering a first-class customer experience.

Our properties generate sustainable, long-term income, which we reinvest in the portfolio and return to shareholders as dividends. We prudently manage our balance sheet and are committed to maintaining conservative leverage. This year, we have reviewed our portfolio against minimum standards and cost of capital and will be more clinical in disposing of low conviction assets and recycling capital to invest in further enhancing our conviction properties. Our strategy will deliver occupancy and income growth, and enhance valuations. It is this combination of income and capital value growth that makes Workspace a compelling investment.

SUPPORTING SMES, FUELLING LONDON’S GROWTH

DELIVERING ECONOMIC VALUE

We fuel London’s growth by providing flexible, characterful space, helping some 4,000 SMEs thrive. We believe that in the right space, teams can achieve more. In vibrant environments they can tailor themselves, free from constraint, teams are best able to collaborate, build their culture and realise their potential. Our recent market research 1 shows that creative and innovative SMEs, which make up over 55% of our customer base, are not only outpacing other sectors but leading the charge in London’s economic growth. With the Capital’s SME market continuing to grow faster than the rest of the UK, we remain focused on the most dynamic and robust parts of that market.

• 364 CUSTOMERS EXPANDED INTO LARGER UNITS OVER THE YEAR
• 120 ‘WORKSPACE PRESENTS’ CUSTOMER EVENTS FOSTERED COMMUNITY AND KNOWLEDGE SHARING
• GIVING SOME 4,000 BUSINESSES THE FREEDOM TO GROW

VALUE CREATED

OUR BUSINESS MODEL IN ACTION

1. OC&C research and data analysis from The Data City and Beauhurst, commissioned by Workspace. Photo: Plygrnd, where creativity meets craftmanship. Workspace customer at The Record Hall showcasing their products.

OUR BUSINESS MODEL IN ACTION CONTINUED

BRINGING SMES TOGETHER: OCD STUDIOS AND TICKET TAILOR

Our space and offer are carefully designed to foster collaboration and growth. A great example is the partnership between OCD Studios, a production agency, and Ticket Tailor, an event ticketer, who both met at Mare Street Studios. Attracted by Workspace’s flexibility and scalability, their collaboration grew, with OCD becoming Ticket Tailor’s primary video and content producer. Both companies have since doubled in size, with OCD expanding into a larger space in our newest building, Leroy House in Islington.

• WATCH THE FILM TO SEE HOW THEY COLLABORATE
• 4,010 ATTENDEES AT OUR CUSTOMER NETWORKING EVENTS IN THE YEAR
• 1 in 2 CUSTOMERS SAY BEING WITH WORKSPACE HELPS THEM CONNECT WITH OTHER BUSINESSES

FOSTERING COLLABORATION

Photo: OCD Studios, based at Leroy House, setting up for a podcast recording.

OUR BUSINESS MODEL IN ACTION CONTINUED

MANAGING OUR IMPACT RESPONSIBLY

• 35% REDUCTION IN EMISSIONS SINCE 2020

TRANSITIONING TO A NET ZERO CARBON BUSINESS

BUILDING LONG-TERM RESILIENCE TO CLIMATE RISK

With an inherently sustainable business model, climate-aligned growth is at the heart of our strategy. We are committed to achieving net zero carbon by 2040, in line with the latest guidance from the Science Based Targets initiative. Since 2020, we have reduced our total emissions by 35%, demonstrating consistent progress and a strong foundation for continued momentum. This journey is not only about cutting emissions but also about building long-term resilience to climate risks. The launch of Leroy House, our first net zero carbon building, marks a significant milestone, enabling us to offer our customers a truly sustainable space they can call home.

VALUE CREATED

• 100% RENEWABLE ELECTRICITY PROCURED

Photo: Workspace promotes sustainable transport at Clerkenwell Workshops.

OUR BUSINESS MODEL IN ACTION CONTINUED

OUR FIRST NET ZERO CARBON BUILDING: LEROY HOUSE, ISLINGTON

This year, we launched Leroy House in Islington – our first net zero carbon building. It exemplifies our inherently sustainable business model: breathing new life into existing buildings. Originally constructed in the 1930s as a watchmaker’s factory, it has been transformed into 57,000 sq. ft. of flexible workspace, while retaining over 90% of the original structure. By prioritising reuse and circular design, we significantly reduced the embodied carbon of the project, achieving levels 40% lower than industry best practice. Thoughtful design choices, including maximising natural daylight, installing heat pumps, high-efficiency lighting and smart controls, mean the building is also expected to operate well below the net zero carbon target for operational emissions.

KEY FEATURES

1. Solar power
2. 75m² green and blue biodiverse roof
3. Smart systems and controls
4. High performance windows
5. Sustainable café
6. Powered by green energy
7. Original structure retained
8. Zero waste to landfill
9. Green transport
10. Promoting wellbeing

SUSTAINABILITY CREDENTIALS

• 40% LOWER EMBODIED CARBON COMPARED TO INDUSTRY BEST PRACTICE

• 90% ORIGINAL STRUCTURE RETAINED

• WATCH THE FILM

OUR BUSINESS MODEL IN ACTION CONTINUED

BOOSTING LOCAL EMPLOYMENT AND THE ECONOMY

WORKSPACE’S INTRINSIC SOCIAL IMPACT

Workspace is more than a landlord. We seek to be the catalyst for local prosperity, inclusion and sustainability, helping to shape a fairer, flatter London. Across over 60 eclectic sites, in 18 boroughs, Workspace operates at the heart of key regeneration areas, expanding the working map of the city. Through our strategic investment in these neighbourhoods, we deliver high-quality, sustainable and affordable work spaces that help unlock local employment opportunities and drive economic growth.

• 37% OF OUR CUSTOMERS LIVE LOCALLY – WITHIN 3 MILES

ENABLING A FAIRER, FLATTER LONDON

• £2.2bn GROSS VALUE ADDED ANNUALLY BY OUR LONDON SME CUSTOMERS
• £900k SPEND BY CUSTOMERS IN LOCAL AREAS PER WEEK

INCLUSIVE ACCESS

• 34 CAFES
• 135 MEETING ROOMS
• 16 HEALTH FACILITIES

VALUE CREATED

• £45m ANNUAL BUSINESS RATE CONTRIBUTION

• For calculation methodology, please see social impact report on our website. Photo: Workspace volunteers preparing for a mentoring session with Future Frontiers at Kennington Park.

OUR BUSINESS MODEL IN ACTION CONTINUED

SUPPORTING SME GROWTH

KENNINGTON PARK, LAMBETH

• 17% OF BUSINESSES HAVE EXPANDED IN THE LAST 2 YEARS

AN INCLUSIVE NEIGHBOURHOOD

CANALOT STUDIOS, BRENT

• 55% OF CUSTOMERS LIVE LOCALLY.# OVER 60% OF LOCAL RESIDENTS HAVE A HIGH SENSE OF PRIDE IN THE BUILDING AND ITS CONTRIBUTION TO LOCAL AREA SAFETY CONNECTING THE COMMUNITY PARKHALL, LAMBETH 60% OF CUSTOMERS FEEL A STRONG SENSE OF CONNECTION AND COMMUNITY IN THE BUILDING A THRIVING LOCAL ECONOMY MARE STREET STUDIOS, HACKNEY £10.7K AVERAGE SPEND PER WEEK WITH LOCAL BUSINESSES LOCAL ENVIRONMENTAL STEWARDSHIP LEROY HOUSE, ISLINGTON 40% LOWER EMBODIED CARBON. NET ZERO IN CONSTRUCTION AND NET ZERO READY IN OPERATION 1 3 4 2 5 OUR PRESENCE SPANS GREATER LONDON, INCLUDING AREAS WITH HIGH POTENTIAL FOR REGENERATION OUR IMPACT ACROSS LONDON

Each of our buildings is distinctive and deeply rooted in its local community, thoughtfully designed to meet the needs of local people and businesses. Across our portfolio, we see clear evidence that Workspace delivers tangible value – driving small business growth, championing inclusion, strengthening community connections, and advancing sustainability. Through this, we play a meaningful role in shaping a more equitable London and supporting a vibrant, resilient local economy.

KENNINGTON PARK, LAMBETH
MARE STREET STUDIOS, HACKNEY
CANALOT STUDIOS, BRENT
PARKHALL, LAMBETH
LEROY HOUSE, ISLINGTON
1
2
3
4
5

Details of calculation methodology and sources of data can be found in the social impact report on our website workspace.co.uk/investors/sustainability

Workspace Group PLC Annual Report and Accounts 2025

Strategic Report

Our Governance
Financial Statements
Additional Information

WATCH THE FILM ON HOW WE SEEK TO ENABLE A FAIRER FLATTER LONDON

CHAIR’S STATEMENT

DUNCAN OWEN

I am pleased to write the Chair’s statement for the year ended 31 March 2025. The Company’s resilience has been illustrated again with a solid set of results despite the significant period of change. Indeed, as we reach the end of the first quarter of the 21st century, it is remarkable to reflect on how much the world has changed in the past 25 years. Innovations in technology, shifting global and political dynamics, and evolving markets have reshaped the way we live and work in ways we never could have imagined. The pace of change shows no sign of slowing in 2025 and we are operating in a very challenging climate, with slower economic growth exacerbated by the impact of military conflict and global tariff wars.

It has also been a year of transition for Workspace as we welcomed Lawrence into the role of CEO in November. The business has delivered resilient results, with trading profit at £66.8m and an underlying decrease of 2.4% in the property valuation. As a result, the Board has recommended a final dividend of 19p, taking the full year payout to 28.4p per share. We remain committed to our progressive dividend policy.

Looking forward, there is no doubt that the challenges we’re seeing in the London flexible space market today are intensifying. An increase in supply, coinciding with softer demand driven by macroeconomic factors, has created a more competitive landscape. In uncertain times, businesses must focus on what is certain. So what can we be sure of today?

• London’s population continues to grow and our market research shows a large concentration of growing SMEs in the Capital. Workspace is targeting the most robust parts of that market: the creative and innovative sectors.
• Trust in institutions has fallen and therefore businesses prefer shorter, sustainable supply chains. Brands that prioritise strong customer relationships and focus on providing what customers value will be winners.
• There will be a need to improve productivity. Businesses need to become more efficient within leaner operational structures.
• Businesses which embrace AI – and empower their people to do so – will benefit most from innovation and are more likely to succeed.

28.4p DIVIDEND PER SHARE

£66.8m TRADING PROFIT AFTER INTEREST¹

¹ A reconciliation of basic and diluted earnings to trading profit after interest is in note 8 to the financial statements.

Duncan Owen
Chair

Workspace Group PLC Annual Report and Accounts 2025

Strategic Report

Our Governance
Financial Statements
Additional Information

I would also like to say a special thank you to my fellow Board members. It is an especially cohesive and dynamic group that consistently seeks to add value and proactively shares in thought partnership with the Executive Team. The year has been very busy and the Board’s commitment and focus have once again been steadfast to manage and share an increased workload.

Predicting when market conditions will stabilise is not possible. However, I am confident that we have the right team and are putting the right steps in place to navigate the current challenges and to seize the opportunity ahead, regardless of where we are in the cycle. Our strategy is clear and we are fully equipped to drive a recovery in occupancy, protect and subsequently grow our income and deliver long-term success.

What does this mean for Workspace?

Lawrence and our Executive team, with the Board’s support, have been developing a refreshed strategy which capitalises on what is most certain while confronting and mitigating the uncertainties and risks. Agility is key and our new strategy is based on achieving operational excellence and an evolution of our flexible offer. We need to ensure that Workspace is more able to adapt to the ever-changing conditions in which we operate. Lawrence will expand on this in his Q&A overleaf, with more detail on pages 34 to 58.

This is not about revolution. We will continue to play to our historic strengths with our focus on London, supported by evidence of a structurally robust pool of SMEs. Investment in our unique portfolio of characterful assets, as well as our flexible proposition will support growth in our market share. However, we do need to evolve. We will be more clinical in exiting non-core and low-conviction assets and recycling capital to invest in conviction properties.

The management team, with the support of the Board, are engaged on delivering cost savings and driving efficiencies across the business, with a heightened focus on digital innovation. To deliver all this, we must prioritise operational excellence. We have long talked about our operating platform, built up over nearly 40 years. There is still significant work to be done to optimise and harness the power of our platform before we can, in time, leverage it to drive future growth opportunities. This will require a cultural shift within the business so that our frontline teams are more empowered, with clear accountability at every level.

The Board is clear on its role in embedding this evolving culture and supporting the pursuit for operational excellence. I have really appreciated my quarterly sessions with team members over the past year, each of which has been held in a different Workspace location. The conversations I have enjoyed at these events have revealed some exceptional ideas and demonstrated yet again that we have a highly engaged team at Workspace, who I know are already driving forward the new strategy and are invested in its execution.

FIVE REASONS TO INVEST

• Structural growth of London SMEs
  We know how best to capture growth segments within London’s growing and diverse SME population.
• Embedding operational excellence
  We’re reviewing our structure and enhancing our systems, with more accountability and actions driven by data and insights.
• Clinical approach to capital allocation
  We’re taking a focused and disciplined approach to asset decision-making guided by our Portfolio Lifecycle model.
• Seamless customer experience
  We are constantly enhancing the value of our customer offer to ensure we’re first choice for London’s SMEs.
• A strategy to deliver shareholder value
  Our strategy will drive a recovery in occupancy and earnings, delivering profits and dividends, and creating a strong foundation to capture future growth.

Our Governance

Pages 118 to 234

CHAIR’S STATEMENT CONTINUED

OUR INHERENTLY SUSTAINABLE BUSINESS MODEL ALLOWS US TO DELIVER VALUE

SUSTAINABILITY IN EVERYTHING WE DO

At the heart of Workspace’s strategy sit our historic buildings, which we strive to operate sustainably and preserve for future generations, and our SME customer base, who we support with our flexible offer and services. Pages 4 to 9 demonstrate the differentiated impact we deliver through our business model. Our recently launched social impact programme (page 58) will create more opportunities for Workspace to create pathways into employment for London’s young people, delivering further economic and social impact.

The Board is clear on its role in embedding this evolving culture and supporting the pursuit for operational excellence.

Workspace Group PLC Annual Report and Accounts 2025

Strategic Report

Our Governance
Financial Statements
Additional Information

CHIEF EXECUTIVE’S REVIEW

LAWRENCE HUTCHINGS

A focus on short, medium and long-term outcomes will ensure agility and, by doubling down on operational excellence, we will deliver shareholder value.

Lawrence Hutchings
Chief Executive Officer

Lawrence joined Workspace as CEO in November 2024. We sat down with him to find out his early perceptions of Workspace, discuss what his priorities have been in the first six months and how he’s feeling about the future.

Q What first attracted you to Workspace?

A There was a huge amount to be excited about in joining Workspace. Firstly, its 40-year legacy is hugely impressive, as is the Company’s role as a pioneer in offering space on flexible terms. Workspace has been doing that for so long and, although there have been countless new entrants into the market since then, that history is important. I spoke to a lot of people in the industry before I joined and there is enormous respect for what we do as a business.# Workspace Group PLC Annual Report and Accounts 2025 Strategic Report

Our Governance

Financial Statements

Additional Information

Q&A

Lawrence Hutchings Chief Executive Officer

Q What were your top priorities for Workspace coming into the role and what have been your key takeaways from your first months as CEO?

A My top priorities were to get out and see the assets and meet our teams, both at head office and across our sites around London. Workspace has a fantastic team who truly live by our values, and I’ve been blown away by the dedication and energy of the people I’ve met in our centres and our head office. I made an effort to meet and talk to our customers at every chance I got, to better understand their evolving expectations of us. I also prioritised gaining a deeper understanding of the competitive environment we’re operating in. This is hugely important to know what we’re up against and what our customers are seeing in the market. Back in the office, I spent considerable time looking under the bonnet of our operations and learning about our unique operating platform. One of the first things I discovered was the sheer velocity of the business. Workspace manages a huge amount of activity on its platform on a daily basis. This is exciting because small changes to the platform or proposition can make a big difference.

Q How has Workspace performed during the year and what is the outlook for the coming year?

A The business has delivered a resilient performance this year, despite operating in a tough economic and competitive climate. Net rental income was £122.1m, which drove Trading Profit to £66.8m. We did see a small reduction in the property valuation, largely driven by lower occupancy at our like-for-like properties. It has taken a lot of hard work to deliver these results and I want to take a moment to thank all of our employees for their significant efforts through the year.

Despite the robust performance in 2024/25, we have a more challenging outlook. We are seeing an increase in supply and softer demand due to macroeconomic factors. While we saw some positive signs on demand in the fourth quarter, our business model and flexible offer means that we have visibility on a stock of space coming back to us, which will further impact occupancy. That in turn will work its way through to earnings in 2025/26.

Q How do you plan to navigate the challenges facing the business?

A We have a lot of work to do to mitigate the challenges we’re seeing. It is going to require some tough decisions and discipline as we embed a culture of operational excellence, which sits at the heart of our refreshed strategy. Our number one priority is to recover the occupancy we have lost. To do that, we need to go back to basics and focus on what our customers want from us. I am confident that we have the right strategy to rebuild occupancy but it will take some time to see the impact of our initiatives. We will also be more clinical in recycling capital by disposing of low-conviction assets, identified following a detailed review of our portfolio, and investing in our conviction and high-conviction properties with a keen focus on returns.

Q Where do you see the biggest opportunities for growth?

A We have identified areas where we need to sharpen up operationally to win on the ground once more. There are significant opportunities to enhance our operating platform through a more efficient use of technology and by better leveraging the data and insights we have within the platform. We have already seen the impact of strategic initiatives we put in place in the fourth quarter of 2024/25 on our trading performance. This has demonstrated what can be achieved when we pull together as a team. Over the past few months, we have been piloting a number of projects, which have delivered some exciting outcomes. These have included capital-light refurbishments at selected properties addressing high-touch communal areas in response to customer feedback, more targeted marketing aimed at larger customers and optimisation of our sales process. All of these initiatives can deliver marked improvements in retention and new customer acquisition.

Q What message would you like to share with investors about Workspace’s future?

A The first thing I would say is that there is no fundamental change in our strategy. We will continue to own high-quality London real estate, we will continue to service SMEs and we will remain in the flexible space market. The Board and I remain confident in our franchise and this confidence is based on evidence from significant and thorough market research we have commissioned in the past few months. This research tells us that London is a growth market, the SME market within that is growing – our cohort of creative and innovative businesses is growing faster than the wider market – and flex space is also growing. While our fundamental strategy is not changing, our strategic approach certainly is. A focus on short, medium and long-term outcomes will ensure agility and, by doubling down on operational excellence, we will deliver shareholder value. As a management team, we need to focus on what we can control in this climate, execute our strategy and do the best job of delivering for our customers to drive a recovery in occupancy and income. By enhancing our core business in the short term, we will be able to accelerate income growth in the medium term and innovate to take advantage of opportunities to scale over the longer term.

Lawrence Hutchings Chief Executive Officer

CHIEF EXECUTIVE’S REVIEW CONTINUED

Workspace’s SME-focused offer creates a platform for social mobility in London – we’re supporting young businesses and entrepreneurs and helping them to drive positive economic impact in the Capital. Finally, the nature and quality of the real estate attracted me. These are beautiful, historic, character buildings and it is our responsibility to preserve them for the next generation. The best way to preserve something is to use it and we’re able to use these buildings in a very sympathetic way. This architecture represents an incredible part of London’s history as an industrial leader and now they’re once again housing business leaders of today.

We are adopting a new approach to strategy, with a focus on operational excellence to deliver income growth. This strategy will prioritise agility and ensure we are able to adapt to the changing market conditions in which we operate. We are positioning Workspace to become an income-led business.

A STRATEGY TO DELIVER LONG-TERM SHAREHOLDER VALUE

1. FIX – ENHANCE AND EXPAND THE CORE BUSINESS

• Overview
  This is about enhancing our product and services to support retention and drive new customer acquisition. We will be laser focused on costs and recovering occupancy and income.
• FY25/26 objectives
  • Improve our product
  • Enhance customer experience
  • Launch TV ad campaign
  • Targeted marketing initiatives for specific customer groups
  • Optimisation of sales process
  • Leverage dynamic pricing model

2. ACCELERATE – TRANSFORM AND PREPARE FOR EMERGING OPPORTUNITIES

• Overview
  In the medium term, we’re focused on acceleration and rolling out learnings from pilot projects. We will be more clinical in recycling capital and use technology more effectively to drive results.
• FY25/26 objectives
  • Categorise assets and continue to dispose of low-conviction sites
  • Enhance our offer for customers
  • Roll out pilot initiatives
  • Improve accessibility of data across the business

3. SCALE – INNOVATE TO CREATE FUTURE OPTIONS

• Overview
  Operational excellence will give us the headroom and competitive platform to innovate and scale the business over the longer term.
• FY25/26 objectives
  • Consider opportunities to acquire sites in emerging SME locations
  • Review opportunities to generate more income from existing assets
  • Explore ideas to leverage the platform to expand our footprint

Pages 46-55
Pages 36-45
Pages 56-58

	2025	2026	2027	2028	Duration
Duration
	2025	2026	2027	2028	Duration
Duration
	2025	2026	2027	2028	Duration

OUR STAKEHOLDERS

UNDERSTANDING AND ENGAGING WITH OUR STAKEHOLDERS HAS BEEN MORE CRITICAL THAN EVER THIS YEAR IN OUR WORK TO REVIEW STRATEGY. As we’ve been working on shaping our refreshed strategy this year, we have prioritised stakeholder engagement, whether that’s with investors, customers, our people or our partners. This has ensured that our decision- making remains aligned with the needs and expectations of our stakeholders. Our commitment to our purpose and values strengthens our stakeholder relationships, fostering trust and collaboration.

1. Our customers 16
2. Our people 18
3. Our investors 21
4. Our partners and suppliers 21
5. Our communities 23
6. The environment 25

The Section 172(1) Statement is incorporated by reference into the Strategic Report Pages 139 to 142

Newly refurbished café at The Print Rooms, Southwark.

OUR STAKEHOLDERS CONTINUED

Who they are	How they impact our decision-making	The value we create	Page
London’s brightest businesses – creators, makers and innovators. Fast-growing and established businesses from diverse sectors.	Customer feedback and research-driven insights are critical to how we operate and what we offer.	We provide the right space and the right services to help our customers succeed.	Our customers 16
We have a diverse and talented team at Workspace. Our people are experts in their fields.			Our people 18
			Our investors 21
			Our partners and suppliers 21
			Our communities 23
			The environment 25

CONSIDERATION OF OUR STAKEHOLDERS INFORMS OUR STRATEGY

OUR PEOPLE

Who they are
We give our employees the opportunity to build fulfilling careers with us.

How they impact our decision-making
Our culture prioritises inclusivity and innovation to ensure our people thrive within the business.

The value we create
We are committed to developing our people and creating a positive and supportive work environment.

OUR INVESTORS

Who they are
Our investors are a mix of institutional and private capital, with a keen focus on income growth.

How they impact our decision-making
We are responsible stewards of capital and, as a REIT, we prioritise the distribution of income through the dividend.

The value we create
Our unique business model provides investors with capital and income growth.

OUR PARTNERS AND SUPPLIERS

Who they are
We work with contractors across the property industry, as well as partners in fields such as cleaning, IT, marketing and security.

How they impact our decision-making
Our partners and suppliers are critical to our customer proposition. Many are customers.

The value we create
As a scale business, we can support smaller suppliers and promote ethical practices.

OUR COMMUNITIES

Who they are
Local businesses and residents in the dynamic London locations in which we operate.

How they impact our decision-making
We aim to be a responsible neighbour and open up our centres to the local communities.

The value we create
We invest in the regeneration of local areas, drive footfall and create economic growth.

THE ENVIRONMENT

Why it matters
We recognise the climate emergency and that the built environment contributes to nearly 40% of global carbon emissions.

How it impacts our decision-making
We aim to operate responsibly and reach net zero carbon by 2040.

The value we create
We deliver and operate low-carbon buildings for a more sustainable built environment.

Staying close to our stakeholders

We listen to our stakeholders and the insights we gather directly inform our decision making.

Our strategy
Pages 34 to 58

There are clear links between our stakeholder engagement and our strategy

Workspace Group PLC Annual Report and Accounts 2025
Strategic Report Our Governance Financial Statements Additional Information
15

OUR STAKEHOLDERS CONTINUED

OUR CUSTOMERS

How we engage
We maintain a continuous dialogue with businesses from their initial inquiry through to move-in and beyond. Our centre teams build strong relationships with customers and gather informal feedback, while we gather more formal feedback via our customer survey twice a year. These insights help us improve customer service, building management, and ultimately inform our growth strategy, such as our refurbishment and acquisition decisions.

How the Board engaged
* Met customers during a series of site visits
* Reviewed pilot refurbishment proposals
* Considered results of the customer survey and subsequent action plan
* Reviewed our first TV advertising campaign

Significant topics raised
* Praise for excellent service from centre teams
* Welcoming atmosphere in centres
* Social and environmental sustainability
* Positive feedback on Wi-Fi and connectivity services
* Networking, collaboration and events
* Amenities and breakout space

Activity in the year
* Launched pilot furniture package offer
* Trialled added-value packages, including skills accelerator training and a business connection package
* Refreshed our brand’s look and feel with vibrant colours and a new tagline, ‘It all happens at Workspace’
* Launched new advertising campaigns across Tube panels, social media, digital radio – and our first-ever TV advert
* Launched Founders Forum events for networking and idea-sharing
* Continued London’s Brightest Businesses panel discussions, moderated by renowned enterprise journalists
* Hosted London Design Festival at three centres, celebrating customer creativity

90% CUSTOMER SATISFACTION	96% CENTRE TEAMS’ HELPFULNESS
90% ATMOSPHERE AT CENTRES	80% SATISFACTION WITH WI-FI & CONNECTIVITY SERVICES

CUSTOMER SURVEY

Read more about our stakeholder engagement disclosure in Governance Page 136

Workspace Group PLC Annual Report and Accounts 2025
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OUR STAKEHOLDERS CONTINUED

OUR CUSTOMERS CONTINUED

OUR APPROACH AND ACTIVITY

• Extensive training of all customer-facing teams on sustainability
• Centralised centre management structure to achieve greater consistency in implementation and communication of sustainability initiatives
• 200+ events delivered, focused on various sustainability topics, both environmental and social
• Multi-channel communications strategy to profile sustainability messages and raise awareness
• Three portfolio-wide campaigns, focused on driving action from customers on energy and waste. See case study on the right

Workspace’s brand survey reveals that 90% of London SMEs consider sustainability important to their business, with nearly three-quarters committed to decarbonising their businesses. As home to nearly 4,000 London SMEs, we have an opportunity to leverage this shared commitment to strengthen our collective environmental and social impact.

AMPLIFYING SUSTAINABILITY IMPACT THROUGH CUSTOMER ENGAGEMENT

84% CUSTOMER ESG SCORE 1	200+ SUSTAINABILITY EVENTS
1,950 ENERGY SAVING PLEDGES FROM CUSTOMERS

CASE STUDY: BIG ENERGY RACE

In November, we ran a portfolio-wide Big Energy Race campaign to encourage customers to reduce energy use. The campaign was brought to life by a multi- channel strategy, including a dedicated web page, posters, newsletters, social media, and in-person workshops. The initiative inspired 1,950 energy-saving pledges from customers. Together, we saved over 255,000 kWh of energy, equivalent to powering the London Underground and Overground for two hours. Customers adopted simple sustainable actions including switching off lights, lowering heating, and using appliances in energy-saving mode.

255 MWh ENERGY SAVED DURING THE CAMPAIGN

1. % of customers who agree Workspace is an environmentally and socially responsible business, measured via bi-annual customer survey.

Sustainable roundtable dinner for customers, Kennington Park

Workspace Group PLC Annual Report and Accounts 2025
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OUR STAKEHOLDERS CONTINUED

OUR PEOPLE

How we engage
Employee feedback tells us that our strong culture and set of values are well received by our people, though we know there are always areas where we can improve. In addition to carrying out an annual survey, which saw an 86% response rate, we also gather feedback from a series of face-to-face and virtual events throughout the year.

How the Board engaged
* Chair and Non-Executive Directors hosted three employee engagement sessions with a mix of centre and head office staff
* Reviewed employee survey results
* Supported decision to enhance staff family leave policies
* Board meetings hosted at our sites where the Board met centre teams
* Approved new Employee Handbook and Code of Conduct

Significant topics raised
* Communication from senior leaders
* Centre teams structure
* Introductory CEO communications
* Strategy and vision sessions for senior managers
* Career development and recognition
* Diversity and inclusion

Activity in the year
* 12 Wrap Live town halls – in person and virtual events – including series of introductory sessions with CEO
* Weekly wrap-up email communications from CEO
* Four Strategic Leadership Group workshops
* Weekly intranet and fortnightly newsletters sharing Workspace internal news
* Successful employee competition aimed at boosting productivity, optimising occupancy and generating revenue
* New benefits, including increased maternity and paternity leave, and new BUPA cash plan
* New Workspace Way training to reinforce strong culture and communications
* Coaching and mentoring training for Line Managers to help with people development
* Increased our apprenticeships offering across the business and continued to develop our Career Pathways to assist employees in developing within their teams
* Charity, Wellbeing & Social Committee hosted 15 cultural events, celebrating events such as Diwali, Holi and St Patrick’s Day
* Hosted 47 wellbeing and social events

31% OF OUR TEAM COME FROM NON-BRITISH NATIONALITIES	76% AGREE OUR VALUES MATCH OUR CULTURE
58% OF OUR TEAM ARE WOMEN	30% FIRST GENERATION TO GO TO UNI
8% IDENTIFY AS LGBTQIA+

Read more about how we engage with our people in the Governance section Page 134 to 135

The Chocolate Factory, Wood Green

Workspace Group PLC Annual Report and Accounts 2025
Strategic Report Our Governance Financial Statements Additional Information
18

OUR STAKEHOLDERS CONTINUED

OUR PEOPLE CONTINUED

We value great social skills and those who instinctively build strong relationships. We think hard about how to give back to our communities. Our people embrace and value our diverse and dynamic culture, with 76% believing our values match our culture. We are building on this strong foundation by fostering a cultural shift to empower our frontline teams, ensuring clear accountability at all levels and further breaking down barriers within the business.

LIVING OUR VALUES

A CLEAR FRAMEWORK FOR SUCCESS

We like people who are serious about their subject; those who are open-minded, interested and ask questions. We don’t just react to what customers, colleagues or the market are telling us, we anticipate it. And our focus on technology helps us to do just that.

• FIND A WAY
• KNOW YOUR STUFF
• SHOW YOU CARE
• MAKE IT FUN

Read how our people are driving customer retention Pages 38 to 39

We look for those who are persistent and have the confidence to move things forward even when there are challenges. Flexibility and adaptability are key, but so are focus and determination. We depend on the imagination and creativity of all our people. We like people who thrive on injecting enjoyment and colour into the day-to-day. We believe in nurturing talent from within.# OUR PEOPLE

This year, we’re proud to have promoted 31 incredible team members.
Hasti Patel
Talent Acquisition Manager

STRATEGIC REPORT

OUR STAKEHOLDERS CONTINUED

OUR PEOPLE CONTINUED

13% EMPLOYEE ATTRITION RATE, COMPARED TO A BENCHMARK OF 28% ACROSS SIMILAR SIZE BUSINESSES

Our people are our greatest asset, and attracting and retaining talent is a key priority for us. We aim to provide an environment where our people can thrive. As we strive to be an employer of choice, we invest in their wellbeing, growth and development. Ultimately, ensuring everyone feels valued, supported and included within a diverse and welcoming workplace.

EMPOWERING OUR PEOPLE TO ACHIEVE THEIR BEST

• 14 training hours per FTE, supporting professional and personal development of our people
• 11 people supported with internal progression through our career pathways
• 16 employees joined our apprenticeship programme to build new skills and progress their career
• Benefits review undertaken to ensure continued delivery of best-in-class support for employees
• Collaboration with inclusive recruitment specialists to widen access to roles across the organisation. This year we employed 13 people who were unemployed to work part time in our cafés, offering them a chance to get back into the world of work
• Optimised candidate evaluation process, alongside blind CVs and bias-free language in job postings, helping us widen our talent pool. This year we received over 2,800 applications from a diverse talent pool (56% female, 35% first generation to go to university, 65% diverse ethnic groups and 4% disabled)
• Benchmarked our employee diversity, ensuring we are representative of a diverse city like London
• 728 hours of diversity training delivered and 11 cultural events celebrated to foster a diverse and inclusive culture

OUR APPROACH AND ACTIVITY

We continued to support staff in developing their skills through structured career pathways, enabling individuals to build and evidence targeted competencies aligned with their goals. This year, 11 employees engaged with a career pathway, with 10 achieving promotions. Our Learning and Development team provided tailored support through a diverse and interactive training programme. We also scaled our apprenticeship offering, supporting 16 employees in building new skills and progressing their careers. Our recruitment manager held an open apprenticeship day to help coach candidates with the recruitment process, providing them with useful tips on interview skills and CV writing.

CASE STUDY: SUPPORTING CAREER PROGRESSION

At Workspace, we are deeply committed to fostering the development of our people. Our goal is to create an environment where both current employees and new hires have opportunities to learn, grow and progress in their careers.

1. % of employees who agree Workspace is an environmentally and socially responsible business, measured via annual employee survey.

OUR PARTNERS AND SUPPLIERS

We work closely with our suppliers to maintain high standards of operational excellence. Our approach goes beyond basic compliance, monitored through our Supplier Code of Conduct, to active collaboration aimed at driving wider market transformation, including working together to enhance positive social and environmental impact across our supply chain.

DRIVING MARKET TRANSFORMATION WITH OUR SUPPLIERS

• Supplier onboarding portal embedded, enabling robust vetting and consistent onboarding checks
• Continued commitment to London Living Wage across the supply chain
• Tier 1 suppliers identified to drive bespoke engagement on ESG topics
• Close partnership with suppliers and building contractors to enhance social value through our operational and construction activities, resulting in an indirect social value contribution of £21.7m (see page 85)
• Garnered support from 20 tier 1 suppliers on our supply chain decarbonisation strategy (case study on the right)

OUR APPROACH AND ACTIVITY

This year we evolved our sustainability- focused engagements with our top suppliers to drive targeted impact. This involved gathering data from 13 key suppliers on their scope 1 and 2 emissions, to more accurately report our scope 3 emissions. We also held an engaging workshop where 20 suppliers came together to hear more about Workspace’s sustainability ambitions, learn about carbon reporting, and create a decarbonisation action plan in a collaborative forum.

CASE STUDY: SUPPLY CHAIN DECARBONISATION

CREATING LASTING VALUE FOR OUR COMMUNITIES

– Each of our cluster teams have at least one partnership with a local charity or community organisation to support local needs, such as providing bespoke skills and employability support (see page 84)
– Continued roll out of community accessible amenities to make our buildings more accessible and inclusive
– Long-term partnership with Single Homelessness Project (‘SHP’) to support homeless people in London. See case study on right
– An active volunteering culture, with each employee allocated three days towards volunteering

OUR APPROACH AND ACTIVITY

Workspace’s four-year charity partnership with the Single Homeless Project (‘SHP’) has raised an outstanding £245,022 to support SHP’s mission to prevent homelessness and transform lives across London. Beyond fundraising, Workspace helped raise awareness of homelessness and SHP’s vital work providing housing, mental health support and employment services.

CASE STUDY: SHP PARTNERSHIP

• £340k+ IN KIND SUPPORT
• 1,210 PEOPLE SUPPORTED THROUGH OUR PARTNERSHIP WITH SHP
• 2,578 VOLUNTEERING HOURS
• 240 BENEFICIARIES OF SKILLS AND EMPLOYMENT PROGRAMME

This partnership, marked by lasting impact, demonstrates how business and charity can come together to change lives for the better.

24 Workspace Group PLC Annual Report and Accounts 2025
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How we engage

We recognise the climate emergency and know that the real estate sector contributes to nearly 40% of global carbon emissions. We have pledged to become a net zero carbon business by 2040. Our model of refurbishing existing buildings substantially reduces embodied carbon. Our operating platform enables us to monitor energy usage in real time, ensuring efficiency and responsiveness. By actively engaging with our customers to improve environmental performance, we ultimately drive higher satisfaction scores in our customer survey.

How the Board engaged

• All Board members sit on the ESG Committee (see the ESG Committee Report on pages 186 to 191)
• Approved new net zero targets, in line with latest SBTi guidance
• Reviewed ESG performance, disclosures, feedback and ratings

Significant topics raised

• Emissions reduction plan aiming to achieve net zero carbon by 2040
• Contributing to local biodiversity enhancements
• Purchasing carbon credit to offset emissions from Leroy House’s construction

Activity in the year

• Updated our net zero carbon targets to align with the latest SBTi guidance
• Published our first Nature and Biodiversity Strategy, including measurable targets
• Upgraded a further 8% of our portfolio to EPC A/B standards
• Delivery of energy-reduction campaign ‘The Big Energy Race’ – resulting in over 1,950 customers pledges on energy reduction

THE ENVIRONMENT

OUR STAKEHOLDERS CONTINUED

NET ZERO CARBON BY 2040, IN LINE WITH SBTI

35% REDUCTION IN EMISSIONS SINCE 2020

Leroy House, Islington

25 Workspace Group PLC Annual Report and Accounts 2025
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OUR STAKEHOLDERS CONTINUED

THE ENVIRONMENT CONTINUED

– We transform historic buildings into modern, sustainable workspaces with 40–70% lower embodied carbon than new builds, delivering high-quality spaces while significantly reducing environmental impact. See case study on page 7
– Our robust operational platform enables a granular, building-level approach to resource optimisation. As a result, our portfolio energy intensity is already 15% below the 2030 target for net zero offices. Further detail on page 78
– Our rolling refurbishment programme allows us to continue to upgrade our portfolio at pace, with 60% of portfolio already EPC A/B rated
– As long-term asset owners, we invest in and manage our buildings responsibly to ensure they are sustainable and resilient. Our commitment to nature and biodiversity and our updated net zero target is a key part of this approach

As a large operational business, we recognise our environmental impact and remain committed to ensuring our growth does not come at its expense. Our refurbishment-led model supports the brown-to-green transition of buildings, delivering both environmental and commercial value. Through a highly efficient operational platform, we manage our portfolio responsibly. This year, we’ve deepened our approach by recognising the intrinsic link between climate and nature in our strategy. We have also re-aligned our net zero commitment in line with latest guidance from Science Based Targets initiative, setting a long-term net zero target of 90% reduction in emissions by 2040 (see page 53)

This year, we launched our first Nature and Biodiversity Strategy, Make Space for Nature, outlining our commitment to delivering measurable biodiversity net gains across all new developments and operational assets (see page 117). With implementation already underway, we’ve completed greening projects across 5 buildings, achieving an average biodiversity net gain of 2.4% over a 2024 baseline (calculated as 16.76 Biodiversity Units). These initiatives have been well received by customers, enhancing both the sustainability and appeal of our spaces.

DRIVING ENVIRONMENTAL STEWARDSHIP

CASE STUDY: NATURE STRATEGY

• 5 GREENING PROJECTS DELIVERED

OUR DIFFERENTIATED ENVIRONMENTAL IMPACT

• 15% LOWER ENERGY INTENSITY COMPARED TO 2030 TARGET FOR NET ZERO OFFICES
• 40-70% LOWER EMBODIED CARBON COMPARED TO INDUSTRY BEST PRACTICE

Brickfields, Hoxton

26 Workspace Group PLC Annual Report and Accounts 2025
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OUR MARKET UNDERSTANDING

FOUR KEY TRENDS SHAPING LONDON’S SME MARKET

Our decisions are driven by market insights and direct feedback from our customers. Market research 1 has shown that our serviceable obtainable market in London comprises around 80,000 SMEs, while we have identified a sweet spot market of around 30,000 businesses. With a customer base of around 4,000, we currently serve about 13% of this market. Recent market research confirms we are targeting the most robust parts of the market: London-based, small to medium-sized businesses with a strong emphasis on creativity and innovation. These combined sectors now make up over 55% of our customer base and are outpacing non-creatives in most industries. Our research gives us confidence that there is substantial room to grow our market share. To achieve this, we rely on a deep understanding of evolving market dynamics and the needs of both existing and prospective customers.

Our strategy Pages 34 to 58
Section 172(1) Statement Page 139 to 142

Leroy House, Islington

1. Conducted by OC&C, with data analysis from The Data City and Beauhurst.

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---

	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Number of SMEs (m)
Sole Traders						2,500
1-9 employees						2,000
10-19 employees						1,500
20-49 employees						1,000
50-99 employees						500
100-249 employees						0
%
	2015	2019	2021	2025
	28%	36%	40%
	72%	64%	60%
Growth %
	-0.0%	0.1%	0.2%	0.3%	0.4%	0.5%	0.6%
	-1.0%	-2.0%	-3.0%	-4.0%
	5.0%	4.0%	3.0%	2.0%	1.0%

OUR MARKET CONTINUED

GROWING NUMBER OF OUR TARGET SIZE SMES

We target the fastest growing pool of SMEs, by size

ROOM TO GROW IN OUR SWEET SPOT

Our market share of SME Creators and Innovators is only 12%: plenty of growth to go for

ROBUST SME DEMAND IN LONDON

London SMEs are growing more than the rest of the UK

SUPPLY-DRIVEN COMPETITION

Competition for SMEs has intensified within an increasingly fragmented market

MARKET RESEARCH AT A GLANCE

	LONDON	VS. REST OF UK
14 YEAR CAGR:	3.4%	1.6%
RELATIVELY FASTER GROWING NUMBER OF SMES IN OUR TARGET MARKET, BY SIZE

1. Our ‘Target SMEs’ represent London-based SMEs with 2-100 full time employees, excluding certain non-applicable industries, e.g. restaurants, bars, landlords.
2. Compound average growth rate (CAGR) over a 10-year period (2014-2024).
3. Estimated figures in some cases, e.g. by using BPE and ASL data sources.
4. BPE London sole traders.

Source: ONS, OC&C analysis.

Source: OC&C analysis of multiple data sources.

Source: OC&C, The Data City.

Source: ONS, OC&C.

	Definition	Estimated Number	Current market share based on c.4k customers
Target SMEs	London-based SMEs with 2-100 FTEs	70-90k
Non-target SMEs	London SMEs with 2-100 FTEs	210-230k
Area indicates where SME growth is greater in London than the UK
Size of bubble indicates aggregate number of employees
Creators and Innovators	2-100 FTE Creative and innovative SMEs, 4+ years old, in the same postcode district as a Workspace location	c.12%
Other		c.1%
Pre-Covid: Rapid growth; new market entrants		c.2%
Covid: Lockdown impact		c.4%
Post-Covid: Steady growth across providers
London SMEs, 1-250 FTEs		440-480k
2-100 FTE SMEs		25-35k
2-100 FTE SMEs in same postcode district as a Workspace location
Sweet Spot Target market
London SMEs in our locations
Number of SMEs (m)
Number of sites
London CAGR	2
UK CAGR	2

28 Workspace Group PLC Annual Report and Accounts 2025
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OUR MARKET CONTINUED

• 500 CUSTOMER RENEWALS IN THE YEAR

RELEVANT STRATEGIC HORIZONS

3.2.1. 1. Enhance and expand the core business

What this means for our customers

Nearly half of UK businesses experienced increased supply chain disruptions in the last 12 months, leading many to diversify suppliers and adopt digital. This adaptability has been a consistent trait among our SME customers. In Workspace’s 2025 survey of 300 SME owners and leaders, 87% said they are confident about their future.

Workspace response

With 67 buildings to suit a range of teams and budgets, choice and affordability are central to our offer. In addition to our two-year flexible leases with rolling six-month breaks, customers can also scale up or down as needed.# Workspace Group PLC Annual Report and Accounts 2025 Strategic Report

Our Governance Financial Statements Additional Information

We have a proven record of adapting to economic cycles by adjusting pricing to maintain occupancy during tough times while driving growth in stronger periods. We also hedge against fluctuating energy prices using solar energy. Our strong balance sheet, freehold ownership model and pioneering flexible offer, position us well to rebuild occupancy and weather further market uncertainty. Our strategy (more on pages 34 to 58) will enable us to respond to market shifts, while simultaneously planning for future growth. A series of strategic initiatives are focused on enhancing our product, customer experience and services, while creating a more efficient organisation. In April 2025, the Bank of England warned of heightened risks to the UK economy, citing ‘financial shocks’ and intensifying uncertainty 1 . Political instability, inflation and the ongoing disruptions from tariffs have further destabilised global markets and weakened consumer confidence. While London’s service-based economy is less vulnerable to tariffs, SMEs are facing rising costs and uncertainty. As a result, many are prioritising flexibility to manage risk.

TREND 1. AMIDST UNCERTAINTY, BUSINESSES ARE FOCUSING ON WHAT THEY CAN CONTROL

1. Financial Policy Committee Record, Bank of England, April 2025.

29 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

Customer space at Pall Mall Deposit, Ladbroke Grove

OUR MARKET CONTINUED

RELEVANT STRATEGIC HORIZONS

3.2.1.
1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities

What this means for our customers

Our customers look for environments that reflect their unique company cultures, foster collaboration and help build cohesive teams. In our survey of 300 SME decision-makers, flexibility and character ranked just below affordability and location. Creative and innovative SMEs represent over 55% of our customer base, businesses outpacing other sectors. Many require more than just desk space – whether for podcast studios, retail showrooms or collaborative breakout areas – they need versatile spaces that evolve with their business.

Workspace response

For nearly 40 years, Workspace has offered flexible leases in characterful ‘brown’ buildings – many historical or listed. Our model is centred around improving these buildings with features like collaborative breakout areas, phone booths, terraces, cafés and meeting rooms. As part of our new strategy, we are piloting some projects to refresh the spaces and enhance customer experience. Customers value the unique character of our buildings, run by teams providing a personal touch, offering a home – not hotel – for businesses. They can personalise their space with our blank canvas offer or choose from our new furniture packages. Our focus on integrating sustainability throughout our buildings also sets us apart, elevating both the customer experience and environmental impact. To help differentiate Workspace in a more crowded market, we’ve refreshed our brand identity and launched our first-ever TV ad campaign. We have identified over 95 office operators in London alone. The flexible office market is saturated and there has been an increase in supply of ‘grey’ space – large, plain floorplates. The economic backdrop has intensified competition, forcing providers to reduce prices and, in some cases, compromise on quality.

TREND 2. IN A NOISY MARKET, THOSE PROVIDING QUALITY AND CHARACTER STAND OUT

67 CHARACTERFUL BUILDINGS FOR CUSTOMERS TO CHOOSE FROM

30 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

OUR MARKET CONTINUED

Q What is your role at Workspace?
A It’s my job to understand our market and the constantly evolving needs of our customers. The insights we gather shape our strategic decisions and the customer experience we provide, allowing us to stand out in a competitive market.

Q How does Workspace gather feedback from its customers?
A We maintain a steady dialogue with customers from day one, with our centre teams building strong relationships and capturing feedback in our CRM system. We also conduct regular interviews and short surveys. Increasingly, we’re integrating AI tools into our sales process, tracking customer sentiment during enquiries calls.

Q Why is the customer satisfaction score so high this year?
A A lot of it comes down to the strong relationships our centre teams have with customers. We empower them to act on feedback, working closely with Asset and Facilities teams to address issues speedily. We’ve also made key infrastructure improvements. For example, at China Works, one of our top-scoring centres, we added phone booths and refurbished communal areas based on customer feedback. Long- term initiatives, like the Wi-Fi refresh and simplifying our billing process, are having a positive impact on satisfaction.

Q What is the customer segmentation project?
A Over the past 12 months, we’ve segmented the office market based on businesses’ needs, gathering insights from over 3,000 business leaders. This has helped us refine our sales journey and portfolio planning. By understanding the value of the customers we’re attracting, beyond just industry or size, we can target our efforts more effectively. It’s also prompted us to explore additional support services and products designed for early-stage businesses. Our customer segmentation has meant we truly understand the value of our customers and can target them effectively.

Greg Absalom Customer Insights Lead, Marketing

Q&A

Greg Absalom
Customer Insights Lead, Marketing

31 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

90% CUSTOMER SATISFACTION SCORE

OUR MARKET CONTINUED

RELEVANT STRATEGIC HORIZONS

3.2.1.
1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities

What this means for our customers

In the battle for top talent, businesses need workplaces that feel as inviting and comfortable as home. We know SMEs prioritise space in vibrant, well-connected areas and amenities like cafés, wellness offerings and outdoor spaces. They value more than just flexible leases – they want control and the freedom to express their own identity, making a home for their business.

Workspace response

Our blank canvas offer lets businesses customise their spaces to suit their culture, with each of our 67 unique buildings offering its own personality and community. Our ownership model means we can provide a blank canvas so that customers can tailor their space to how they would like their teams to work, whether that is adding comfy areas, white boards or meeting rooms. This year’s record 90% customer satisfaction score reflects the strong relationships built by our centre teams and the vibrant community within our buildings. Our continual dialogue with customers informs improvements to our offer and buildings, with features like cafés, breakout areas, bike storage, roof terraces, meeting rooms and phone booths. Our extensive events help our customers connect and strengthen their own company cultures. Our roundtables, panel discussions and new Founders Forums have proven extremely popular. 84% of our customers value our commitment to social and environmental responsibility, with participants in our sustainability initiatives reporting higher satisfaction and engagement.

SMEs face significant challenges in recruiting and retaining skilled employees, with many struggling to keep pace in a competitive talent market 1 . A recent survey shows that 39% of UK employees are likely to seek new roles within the next year 2 . Meanwhile, 84% of employees expect the workplace to deliver an experience, rather than simply being a place to complete tasks 3 .

TREND 3. SMES ARE TURNING TO THEIR SPACE TO COMPETE FOR TALENT

1. SME Skills Horizon, Department for Education, 2025.
2. What Workers Want, New Possible, 2025.
3. The Workplace Oooh Study, Claremont, 2024.

AP&Co at Kennington Park, Oval

32 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

OUR MARKET CONTINUED

80% CUSTOMER SATISFACTION WITH CONNECTIVITY – AN UPLIFT OF 15% IN TWO YEARS

RELEVANT STRATEGIC HORIZONS

3.2.1.
2. Transform and prepare for emerging opportunities
3. Innovate to create future options

What this means for our customers

45% of SMEs are already using AI to improve their operations 1 , showing how quickly businesses are embracing technology to stay competitive. Businesses expect work spaces and customer service that are flexible, intelligent and responsive – systems that anticipate needs and adapt seamlessly, with 24/7 support, while still valuing the personal touch from real customer service.

Workspace response

Workspace has always prioritised technology to enhance customer experience. Our buildings are equipped with building-wide superfast Wi-Fi and 5G, giving customers the flexibility to work wherever they choose – whether in the café, breakout areas or on the terrace. When combined with face-to-face service, technology is central to our broader strategy of driving occupancy and retention. We’re piloting AI-driven customer service agents to ensure enquiries are answered and viewings are scheduled 24/7. Our upgraded CRM system will improve our customer insights, communications and targeted marketing. From streamlining energy management to personalising workspace configurations, AI is helping providers create smarter, more responsive environments. It’s also enhancing how landlords identify and engage the right market, offering deeper customer insights and improved targeting.

TREND 4. TECHNOLOGY IS TRANSFORMING HOW REAL ESTATE CATERS TO SMES

1. AI Adoption Rates in UK SMEs, Profile Tree, 2025.# Workspace Group PLC Annual Report and Accounts 2025

Strategic Report

Our Strategy

OUR STRATEGY WILL DELIVER LONG-TERM SHAREHOLDER VALUE, ACCELERATING WORKSPACE’S MOVE TO BECOME AN INCOME-LED BUSINESS.

A NEW APPROACH TO STRATEGY

We are adopting a new approach to strategy. A focus on short, medium and long-term goals will ensure agility and that we are able to adapt to the changing market conditions in which we operate. Work on each strategic goal will run in parallel, although the outcomes will be delivered over different time periods. We will embed operational excellence through the organisation and in everything we do in order to deliver income growth. Our strategy will accelerate progress on our journey to become an income-led business.

1. ACCELERATE
   Transform and prepare for emerging opportunities
   Pages 46-55

2. SCALE
   Innovate to create future options
   Pages 56-58

EMBEDDING OPERATIONAL EXCELLENCE

1. FIX
   Enhance and expand the core business
   Pages 36-45

SUPPORTED BY THE WAY WE DO BUSINESS:

Our purpose
To give businesses the freedom to grow

Our culture
Our culture is one of integrity, transparency and openness and will support the pursuit of operational excellence.

Our values
– Know your stuff
– Find a way
– Show we care
– Make it fun

Learn about our purpose, culture, and values in our Governance report Page 132

GUIDED BY OUR STAKEHOLDER ENGAGEMENT:

Our customers
Our people
Our investors
Our partners & suppliers
Our communities
The environment

Discover more about our stakeholder engagement Pages 14 to 26
Principal risks and uncertainties Pages 86 to 93
Key Performance Indicators Pages 59 to 64

OUR STRATEGIC HORIZONS

Page
1. Enhance and expand the core business 36
2. Transform and prepare for emerging opportunities 46
3. Innovate to create future options 56

Our Strategy Continued

By doubling down on operational excellence, we will create a more efficient organisation that prioritises delivery of a seamless and high quality customer experience. This will give us better scope to boost occupancy, enhance profitability and unlock new growth opportunities in the future.

IN ORDER TO DELIVER ON OUR STRATEGY, WE NEED TO EMBED OPERATIONAL EXCELLENCE

We have identified areas where we can sharpen up operationally to help us win on the ground once more.

Lawrence Hutchings
Chief Executive Officer

WHAT IS OPERATIONAL EXCELLENCE?

We are embedding operational excellence into every part of our organisation as a cultural discipline, driving everything we do. Operational excellence will ensure a more efficient organisation, an enhanced product and a seamless customer experience. In order to deliver this, we will:

– Change the organisation structure
We will rebalance the business by streamlining support functions to create a leaner, faster organisation and enable us to put more people on the ground where it matters, empowered to meet high standards of customer service and achieve our retention goals.

– Enhance our core systems
By centralising and continuing to improve our property management, finance and CRM systems, our data will result in faster and more insight-driven action. Technology and AI will be more effectively leveraged to create a more efficient business, whilst providing an enhanced customer experience.

See our business model Page 2

Strategic Goal 1 – Fix: Enhance and Expand the Core Business

The impact on our business
Drives a recovery in occupancy and earnings, delivering profits and dividends.

FY25/26 outcome
We would expect occupancy to stabilise and start to recover over the course of the year as a result of the strategic measures put in place. We will invest in our product to support both customer retention and drive new customer acquisition.

Relevant KPIs
Financial performance: 1, 2, 3, 4, 5, 6, 7, 8, 9
Non-financial performance: 1, 2, 3, 4, 6, 7, 9

Relevant principal risks and uncertainties
1, 2, 5, 7, 10

Market trends
1, 2, 3

Relevant sustainability priorities
– Sustainable development and operations standard consistently applied, maximising efficiency
– Close management of all ESG risks
– Active tracking and response to customer ESG expectations
– Differentiating Workspace through our ESG credentials

HOW WE ARE ENHANCING AND EXPANDING THE CORE BUSINESS
Page
Ensuring consistency across our portfolio 37
Focus on customer retention 38
Differentiating Workspace 40
More targeted marketing 41
Sustainability is at the core of our business 43

What this means
This is about enhancing our product and services for our core customer base of creative and innovative SMEs. Our priority is to stabilise and rebuild occupancy in the short term.

Why this is important
The workstreams under this strategic goal will support customer retention and drive new customer acquisition, which will ultimately deliver earnings growth and dividends.

How we deliver against it
We will be laser focused on costs and streamline the business, systems and processes to deliver efficiencies. We will run demand generation and customer retention pilot projects to test thinking and deliver quick wins. We will update and roll out guidelines for our ‘brilliant basics’ to ensure our product and customer experience is of a consistently high standard across the portfolio.

Operational excellence
There will be significant attention given to embedding operational excellence in the short-term to support our goal of protecting and expanding the core business. In FY25/26, we would expect to introduce a new organisational structure that clarifies lines of accountability and ensures every team member knows who owns the customer relationship and is responsible for protecting or driving revenue.

Our Strategy Continued

1. Enhance and Expand the Core Business Continued

ENSURING CONSISTENCY ACROSS OUR PORTFOLIO

Delivering the ‘brilliant basics’
In a challenging market and more competitive environment, it is more important than ever that we ensure our product, offer and service are of a consistently high standard. Through our ongoing surveys and market research, we have a very good understanding of what our customers and prospects within the creative and innovative SME market want and what they are willing to pay for. They want us to remove any friction from their search for the perfect space for their business and their teams. Once they’re in, they want a seamless experience that meets all their needs and supports the growth of their business.

34 operational standards
We have identified 34 operational standards, covering building facilities and services, with a further nine standards linked to location and the fabric of the buildings. We are upgrading a set of guidelines for each that will help us achieve operational excellence. These include popular amenities such as cafés, tea points, phone booths and meeting rooms, but also important factors like signage and wayfinding, digital community noticeboards and customer onboarding. Guidelines for our ‘brilliant basics’ will be rolled out across our conviction and high conviction buildings and included in future staff induction and training programmes. We have already started work to implement the guidelines and are trialling some new higher standards at selected pilot sites.

More about our pilot design projects Pages 50 to 51
Categorising our portfolio by conviction Page 48

SUSTAINABLE OPERATIONAL STANDARDS
SUSTAINABILITY IN EVERYTHING WE DO

Meeting customer demand
Sustainability standards are increasingly important to our customers. From comprehensive waste and recycling facilities to energy-efficient systems and smart metering that help reduce consumption, we go above and beyond to meet these expectations. We also support sustainable transport and wellbeing with bike storage, showers and onsite greenery – all designed to promote a greener, healthier way of working.

OUR 34 GUIDING INVESTMENT AND OPERATIONAL STANDARDS

| Noticeboard/ community news | Centre staffing levels | Operational services | Cleaning | Waste & recycling | Energy & utilities | Wi-Fi | Maintenance | SME support centre | Events | Mobile app | Accessibility | HVAC (units & communal areas) | Customer check-ins | Account support services | Customer onboarding & move-in | Customer offboarding & move-out | Security & 24/7 keyless access | Seamless enquiries & sales process (new space enquiries) | Engaged support team & helpdesk signposting customers & OOO support | Operational building services | Tea points | Cafes | Phone booths | Meeting rooms | Toilets | Modern units | Centre team office | Bike store | Post room | Lifts | Showers | External entrances & FOH | Modern communal outdoor areas & car park | Signage | Modern communal indoor areas (breakout spaces, tea points corridors) |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|

Focus on Customer Retention

Workspace has always experienced a certain amount of customer churn and in a strong market, this is helpful as it provides availability of space to attract new customers, as well as the opportunity to drive pricing growth. During periods of high occupancy and strong rental growth, customers vacating supports that opportunity. Given the more competitive market, we have changed our strategic approach and customer retention has become a key focus.

Customer engagement
We have overhauled the way that we engage with customers in order to drive improvements in customer retention. Rather than relying on ad hoc engagement in centres, we have put in place a rigorous contact programme for all our existing customers.# STRATEGIC REPORT CONTINUED

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CASE STUDIES: HOW WE ARE RETAINING CUSTOMERS

Read more about our engagement with customers in the Stakeholders section Pages 16 to 17

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Q Why is customer retention such a focus under the new strategy?

A It is a lot easier, and more cost effective, to retain customers than to bring in new ones. Our net promoter score is +42, which is high for a landlord so we are starting from a very strong base. The majority of our customers are very positive about our buildings and the experience we provide, but in a more competitive market, we need to be absolutely focused on retaining as many customers as we can.

Q What are you doing differently now to retain customers?

A We are working to collect more insight on customers both through centre teams and through our digital platform, to ensure we’re aware of any issues they may have as a business or their growth plans so that we can offer solutions before they hand in notice. In addition, when a customer serves notice, that will now set in motion a process with the single aim of keeping that customer. Centre Managers will contact the customer immediately to understand why they’ve given notice and then work with Sales Managers to find alternative space for them or support them with payment plans if that’s required.

Q What does this mean for centre teams and how they manage relationships with customers?

A Our centre teams remain vital in maintaining strong relationships with our customers. At two pilot sites, we are trialling a new team structure that will enable Centre Managers to focus more on those relationships and on customer retention. We will rebalance resource to put more people on the ground who can provide data and early warning signals that will help maximise revenue, retain customers and drive lettings.

Q How does operational excellence play into customer retention?

A Creating clearer lines of accountability and aligned operational targets is a key part of delivering operational excellence. We are enhancing our organisational structure to ensure everyone is clear on who owns the customers and, as such, who is responsible for retention. In addition, our upgraded ‘brilliant basics’ will ensure we maintain consistently high standards to support customer retention. We are giving Centre Managers more accountability for retention and safeguarding revenue, on top of their roles building strong relationships with customers and being the eyes and ears on the ground for the business.

Claire Dracup
Director of People & Culture

FOCUS ON CUSTOMER RETENTION CONTINUED

Q&A

Claire Dracup
Director of People & Culture

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DIFFERENTIATING WORKSPACE

A full-funnel marketing strategy

We have put in place a full-funnel marketing strategy to differentiate the Workspace brand – from driving demand at the top of the funnel all the way through to cost- effectively converting demand into new lettings, while building strong customer engagement through events and communication to drive retention and customer satisfaction.

Our first-ever TV ad campaign

In April, our first-ever TV ad campaign went live across connected TV, including ITV, C4 and Sky. The campaign will run for an initial 12-week period to bring to life the Workspace proposition and highlight our creative and innovative target audience. The campaign will run across digital, radio and tube car panels on the London Underground, with additional social activity to ensure maximum reach and cut-through.

WATCH OUR TV AD CAMPAIGN HERE

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MORE TARGETED MARKETING

We are sharpening the focus of our marketing to optimise activity and use our segmentation and market insight to appeal to even more of our target customers. As we have a number of larger spaces to let this year, we are also taking a more granular approach to convert demand in specific locations.

Sales optimisation

We have enhanced our data insight and reporting to optimise sales and marketing by location. Our new sales dashboards enable us to take a single view of demand vs. supply and then make adjustments to our own inventory, whether to pricing or other elements of the offer, as well as adjustments to our marketing efforts to improve conversion and overall sales performance.

Larger space marketing

We have implemented a more targeted marketing plan aimed at larger businesses and prospects across multiple channels. This includes social, direct mail, events and outbound enquiries. Our sales team are also reconnecting with previous lost leads to maintain relationships and build a pipeline of target customers.

Workspace Launchpad

Through our segmentation work and customer research we have identified an opportunity to attract more early-stage businesses who were previously choosing a shorter-term, more serviced offer. As a result, we have created a new furnished offer – Workspace Launchpad – on shorter lease terms, to make it easy for early-stage companies to get started quickly. We have identified units across selected locations and will roll out the offer across the portfolio, subject to successful trials. Launchpad provides the opportunity to build relationships with these businesses at the start of their journey and for Workspace to help enable their growth.

ESG CREDENTIALS INCREASINGLY DRIVING DECISION MAKING

SUSTAINABILITY IN EVERYTHING WE DO

Our SME research shows that 90% of London SMEs consider sustainability important for their business, with nearly 30% actively using it as a criterion when selecting work spaces. With strong engagement from sustainability-conscious customers, including B Corp certified businesses, our ESG credentials set us apart in the market. We aim to further enhance this customer acquisition channel through targeted communications and marketing strategies.

The Print Rooms, Southwark

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Q What is your main focus from a brand and marketing perspective this year?

A Our focus, in line with our short-term strategic goal, is to support the business in recovering occupancy. We must build strong engagement with existing customers, adding real value to their experience, and sharpen our focus to attract more new businesses to Workspace. We are operating in an increasingly crowded market in which SMEs face a surplus of choice but a lack of clarity on different solutions. With this in mind, and against a backdrop of continued economic uncertainty, it is essential for Workspace to differentiate from the competition and be clear on who we’re for – the vibrant, creative and innovative, growth segment of the SME market.

Q How does the new strategic approach change what you’re doing?

A The new strategic approach takes a short, medium and long-term perspective and this aligns with our brand and marketing strategy. In the immediate term, our goal is to capture demand to drive occupancy, with a keen focus on certain locations and units, particularly larger spaces. In the medium term, we need to differentiate our brand and focus on our core creative and innovative segments of the SME market. Finally, to drive longer-term performance, we are increasing innovation in how we target those segments and enhance our proposition to add greater value.

Q How are you using AI to support marketing efforts?

A AI forms a central part of our performance marketing and is critical to the targeting and optimisation we run through Google and Meta platforms. In addition, we are using AI across marketing activity internally, from content creation for our website, including building descriptions and unit floorplans, to voice recognition technology used on phone enquiries to feed into our CRM system.# Strategic Report

We have also recently launched an AI enquiries agent to accelerate and improve the first line of response for prospects. We even used AI to create our own sonic branding, the jingle, for our social, radio and TV ads.

Q What does operational excellence look like in marketing?

A The discipline of operational excellence means three things for brand and marketing. We are better leveraging technology to optimise marketing performance and processes, as well as provide a more seamless customer experience through our new customer portal, MyWorkspace. Secondly, we are working more closely with customer-facing teams on the ground to drive conversion at a local level and support our occupancy goals. And thirdly, we are making better use of market and customer data to build greater insight around our target audience to drive new customer acquisition and support retention efforts. We need to differentiate Workspace and be crystal clear on who we’re for – the creative and innovative growth segment of the SME market.

Will Abbott
Chief Customer Officer

Q&A

Will Abbott
Chief Customer Officer

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See our sustainability performance section Pages 74 to 85

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SUSTAINABILITY IS AT THE CORE OF OUR BUSINESS

AN INTEGRATED APPROACH

Sustainability is core to our business model, guiding every decision we make regarding our properties and operations. Our three-pillar sustainability strategy – (1) Delivering a climate-resilient portfolio, (2) Looking after our people, (3) Supporting our communities – allows us to continually improve our environmental and social impact, whilst adding value for all our stakeholders. Each year we review our material sustainability issues (see page 44) to prioritise impact initiatives and drive progress by setting incrementally stretching targets. A full list of targets is included on page 75. In addition, we’ve strategically aligned our objectives and targets with the United Nations Sustainable Development Goals (SDGs). This ensures that our efforts are in harmony with the global ambitions outlined by the SDGs.

GOVERNANCE

The highest level of responsibility for our sustainability strategy lies with our Chief Executive Officer, and together with the rest of the Workspace Board, they act as guardians of the strategy. In addition, we have a Board ESG Committee (refer to page 186) to bolster our sustainability governance and drive further integration across business decisions. The Board is supported by the Executive Committee in setting and delivering our sustainability strategy. At an operational level, we have committees dedicated to both environmental and social issues, comprising of senior representatives from across the business, responsible for implementation and reporting progress to the Board.

BEST PRACTICE DISCLOSURE

Sustainability information is integrated throughout this report, offering clear insights into our approach, alignment with strategy, and performance as measured through key KPIs. The sustainability performance section includes commentary on all our sustainability targets. TCFD and TNFD disclosures are included in the Compliance Statements, along with emissions reporting. Our approach to delivering value for all stakeholders is outlined in the Stakeholder section. With a view to adopting best practice and enhancing the transparency of our disclosures, we report on our environmental and social performance in accordance with the Global Reporting Initiative (GRI) 2021 and in line with the Sustainability Accounting Standards Board (SASB) guidelines (page 110 to 111). We also publish our EPRA sustainability report on our website www.workspace.co.uk/investors/sustainability/our-environmental-performance.

• 84% CUSTOMER ESG SCORE
• £22.8m TOTAL SOCIAL VALUE
• 35% REDUCTION IN EMISSIONS SINCE 2020
• 60% EPC A/B RATED PORTFOLIO

Sustainability is inherent to our business model, enabling us to deliver differentiated environmental and social impact

Sonal Jain
Head of Sustainability

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	Significant IMPACT ON WORKFORCE	Very significant
	IMPORTANCE TO EXTERNAL STAKEHOLDERS	Significant

OUR MATERIALITY MATRIX – KEY SUSTAINABILITY ISSUES

Environmental issue	Social issue	Governance issue	Material move since 2023/24 GRI report
			www.workspace.co.uk/investors/ sustainability/our-environmental/performance

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STEP 1. Identify key stakeholders List material issues

Our materiality assessment helps us understand the issues that matter most to our internal and external stakeholders. We identified and assessed a number of environmental, social and governance issues to refine our approach.

STEP 2. Consult stakeholders

• Employees
• Customers
• Suppliers
• Regulators
• Investors

We consulted with our internal and external stakeholders, including customers and employees through our surveys and ongoing interactions with our suppliers to confirm our material issues, as shown on the matrix.

STEP 3. Analyse consultation outputs, considering:

• Importance to stakeholders
• Significance of impacts
• Ability of the business to influence

Our sustainability strategy covers all issues identified as material to our business. The performance section in the report details how we are positively impacting these issues.

USING MATERIALITY TO DEFINE WHAT MATTERS

While energy and carbon, health and safety, regulatory compliance, and ethical practices remain key priorities, we are also proactively responding to evolving stakeholder expectations by placing greater emphasis on customer engagement, diversity and inclusion, and sustainable procurement. In line with our long-term social impact commitment (see page 58), which focuses on skills and employment, we have elevated this area as a priority. It will now form the central focus of the majority of our charity and community impact initiatives.

• Sustainable transport Page 80
• Water Page 79
• Sustainable procurement Page 79
• Nature and biodiversity Page 26, 77
• Climate adaptation Page 79, 99
• Charitable and community support Page 83, 84
• Skills and employment Page 58, 81, 83
• Customer engagement Page 17, 82
• Diversity and inclusion Page 20, 81
• Risk management Pages 86, 99
• Regulatory change Page 77
• Health and safety Page 97
• Energy and carbon Page 53, 76, 77
• Waste and resources Page 80
• Sustainable building design Page 77
• Ethics, conduct and compliance Page 82, 96
• Wellbeing Page 81
• Transparency Page 43

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ENVIRONMENTAL ISSUES

Through our concerted efforts to drive positive impact across several material environmental issues, we actively contribute to the goals outlined in SDGs 7, 9, 12 and 13. Our procurement of 100% renewable electricity supports the generation of clean energy in the UK, and our energy and carbon management strategy, including the use of energy and water saving technologies, supports innovation within the industry. Our energy and carbon reduction targets, as well as recycling targets, support responsible consumption as well as climate action. Furthermore, our customer engagement programme plays a pivotal role in raising awareness about responsible resource utilisation.

SOCIAL ISSUES

Through our concerted efforts to drive positive impact across several material social issues, we actively contribute to the goals outlined in SDGs 3, 8, 5 and 10. Our customer and employee wellbeing programme directly supports the health and wellbeing of our people. Through our skills and employment focussed programme (Growth Happens at Workspace), we actively contribute to reducing inequalities in London and strive to provide decent work opportunities. We support local economy through the construction and operation of our buildings, boosting local spend and employment. Additionally, our business practices and culture foster diversity and inclusion, addressing gender inequality. Furthermore, our partnership with the Single Homeless Project charity and our place-based support to various local community organisations play a crucial role in combating inequalities within the city.

ALIGNMENT TO SDG

CORRESPONDING KEY MATERIAL ISSUES
Affordable and clean energy	– Energy and carbon reduction – Sustainable procurement
Industry, innovation and infrastructure	– Energy and carbon reduction, water, waste – Sustainable procurement – Sustainable building design – Sustainable transport
Responsible consumption and production	– Energy and carbon reduction, water, waste – Sustainable procurement – Customer engagement
Climate action	– Energy and carbon reduction, water, waste – Sustainable procurement – Sustainable building design – Climate adaptation – Nature and biodiversity
ALIGNMENT TO SDG	CORRESPONDING KEY MATERIAL ISSUES
Good health and wellbeing	– Wellbeing – Health and safety – Risk management
Gender equality	– Skills and employment – Diversity and inclusion
Decent work and economic growth	– Skills and employment – Ethics, conduct and compliance – Charity and community support
Reduced inequality	– Skills and employment – Diversity and inclusion – Ethics, conduct and compliance – Charity and community support

ALIGNING WITH THE SDGS TO MAXIMISE VALUE FOR ALL

Our sustainability strategy aims to maximise value for all our stakeholders: our people, customers, suppliers, investors, and the environment.# STRATEGIC GOAL 2 – ACCELERATE TRANSFORM AND PREPARE FOR EMERGING OPPORTUNITIES

The impact on our business
Delivers income and capital growth, enhanced customer acquisition and increased market penetration.

FY25/26 outcome
Capital recycling from disposal of low conviction assets will continue over the year, with investment into conviction and high conviction assets. If our pilot projects are successful, we will start to roll out initiatives across the portfolio.

Relevant KPIs
Financial performance: 1, 2, 3, 4, 5, 6, 7, 8, 9
Non-financial performance: 1, 2, 3, 4, 5, 6, 7

Relevant principal risks and uncertainties
1, 2, 3, 5, 6, 7, 10

Market trends
2, 3, 4

Relevant sustainability priorities
* Embedding ESG considerations into capital recycling to future-proof the portfolio for the long term
* Accelerating the net zero transition of our core portfolio to maintain competitiveness
* Driving ESG-led innovation to enhance the customer proposition and strengthen our offering

HOW WE ARE TRANSFORMING AND PREPARING FOR EMERGING OPPORTUNITIES

• Page Portfolio review 47
• Enhancing our offer to customers 49
• Pilot sites 50
• Platform and technology 52
• Climate resilience through Net Zero carbon transition 53

What this means
In the medium term, we will transform the business to prepare for and be better able to take advantage of opportunities to drive income and capital growth. This will include work to optimise our portfolio and our platform.

Why this is important
This strategic goal will see the business put in place initiatives to deliver an acceleration in growth in income over the medium term. In order to attract and retain our discerning customer base of creative and innovative SMEs, we need to ensure we have a high performing portfolio of assets. Many of our assets require investment to maintain or return to the high standards of performance we’re targeting and we will dispose of those that do not meet our strict return on investment criteria.

How we deliver against it
We have done a detailed analysis of our portfolio and mapped each building against a lifecycle model, as well as against our ‘brilliant basics’ standards. We will invest in conviction and high conviction assets and dispose of low conviction properties. We will assess customer feedback and roll out learnings from our pilot design and SME proposition projects. To support the optimisation of our platform and enhance our business intelligence capability, we will complete the migration of all our operating systems to the Microsoft Dynamics Cloud.

Operational excellence
There is significant work ongoing to optimise the operational platform to better meet the needs of the business. We have conducted a review of all our systems and processes to understand where efficiency gaps remain following investment and updates over the past two years. The imminent upgrade of our CRM system and migration of the end-to-end sales process to the cloud will help support our pursuit for operational excellence, enhance our communication with customers and drive our efforts to retain and attract new businesses.

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PORTFOLIO REVIEW

As part of strategy, we will be adopting a disciplined and rigorous approach to capital allocation on our properties. We acknowledge the importance of continually investing in our product to ensure our offer remains relevant to customers, while maintaining a keen eye on investment returns.

PORTFOLIO LIFECYCLE

We have conducted a detailed review of our portfolio, mapping each building against our Portfolio Lifecycle analysis, depending on factors including occupancy, pricing growth, capex requirements and adherence to our ‘brilliant basics’ standards. When we get it right, we see consistently higher occupancy, pricing growth and better returns on investment.

BRILLIANT BASICS STANDARDS

We have identified nine standards relating to building fabric and location that guide our capital allocation decisions.

1. METAL BOX FACTORY 95.1%
2. RECORD HALL 92.9%
3. THE FRAMES 92.7%
4. VOX STUDIOS 91.5%
5. EXMOUTH HOUSE 92.1%
6. SHEPHERDS BUILDING 92.0%
7. BRICKFIELDS 91.5%

8. EDINBURGH HOUSE 89.6%

9. Excludes single-let properties.

PORTFOLIO TOP PERFORMERS

We have monitored our top performing properties and measured the relationship between performance and our ‘brilliant basics’. The top performers all benefit from coverage of many or all of the standards.

The top performing properties by occupancy over a 3-year period (average):

• Campuses
• Local amenities & infrastructure
• SMEs
• Nascent regeneration
• Low-rise
• Character buildings
• Floorplate flexibility 50-70k sq. ft.
• Access to transport

Metal Box Factory, Southwark

• CASH FLOW – Growing sustainable recurring income – Maintaining customer proposition – Delivering income returns that comfortably exceed our weighted cost of capital – Investing in subdividing large spaces to capitalise demand
• UPSIDE AND CAPITAL RELEASE – Capex to boost future performance – Explore alternative use potential via planning consent/partnership or divestment – Recycle cash or redeploy into better or higher growth opportunities
• FUTURE INCOME – Nascent SME market and/or assets – Early-stage assets expected to generate returns through lease up – Investment in subdivision and achieving ‘brilliant basics’ standards
• GROWTH – Increasing occupancy, growing rent, creating more small and micro unit space – Investing in customer proposition and benefiting from onflow benefits to valuation

I N C U B A T I O N         R E P O S I T I O N M A T U R I N G     P E R F O R M A N C E

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A CONVICTION APPROACH

Having identified our top performing properties and the factors that drive that performance, we have now analysed the whole portfolio and categorised each site as high conviction, conviction or low conviction. We have looked at several metrics to ascertain where each property should sit, including Capex required to bring the assets in line with our ‘brilliant basics standards’ and the resulting three-year income return and total return. This exercise has identified a disposal pipeline of around £200m worth of low conviction assets to be executed over the next 24 months. Proceeds from disposals will be recycled to fund Capex on our conviction and high conviction properties and maintain prudent levels of gearing.

	VALUE OF PROPERTIES AS AT 31 MARCH 2025
TOTAL VALUE OF OUR PORTFOLIO	£2.368bn
High conviction	£0.8bn
Conviction	£1.3bn
Low conviction	£0.2bn
TOTAL VALUE OF OUR CONVICTION AND HIGH CONVICTION PROPERTIES	£2.1bn

The Record Hall, Hatton Garden

ENHANCING OUR OFFER TO CUSTOMERS

To support our objectives on recovering occupancy and accelerating income growth, we have looked at how we can enhance our offer to customers. We have considered scalable value-add offers that will help support the success of our customers and their growth at different stages. By broadening our offer in this way, we aim to differentiate Workspace in the market, increase our appeal and support both customer acquisition and retention over time.

Driven by customer needs
We interviewed more than 30 customers to understand the key challenges facing their businesses. Five propositions were tested that complement our core offering and we are piloting two in response to customer feedback. Once the pilots are complete, the aim would be to embed them as part of Workspace’s offer in the MyWorkspace customer portal and roll it out across the portfolio.

PILOT OFFERINGS

SKILLS ACCELERATOR

This provides a mix of expert-led training workshops for customers, helping founders and business leaders to upskill their teams at affordable prices.

The details
* Access for customers to training on topics including Gen A.I. Fundamentals, The Art of Presenting, Resolving Conflict and First Aid
* Bitesize workshops from leading experts saving our customers time and money
* We will measure success by levels of take-up and impact on Workspace recommendation scores

WORKSPACE NAVIGATOR

Aimed at early-stage businesses, this provides a tailored consultation and exclusive access to a range of services and support provided by Workspace’s partner network.

The details
* Helping early-stage businesses identify their needs and navigate barriers to growth
* Providing access to Workspace-vetted partners (many of whom are also customers) in fields including investment, legal, digital and other growth enablers
* We will measure success by the number of customers registering interest and completing consultations, as well as impact on Workspace recommendation scores

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30+ CUSTOMER INTERVIEWS COMPLETED

Connecting with other customers who can provide the services we need, via a guided Workspace Navigator session, has been fantastic. A real value add.# Workspace Group PLC Annual Report and Accounts 2025

Strategic Report

OUR GOVERNANCE

FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

AFTER PILOT SITES

In order to test out some of our strategic initiatives, we decided to pilot a number of changes at two different properties. The sites, Vox Studios and The Leather Market, were selected as they are both high conviction properties but have seen occupancy fall back recently. We ran a detailed analysis of customer feedback at the two properties to understand the most pressing issues, as well as reviewing competition in the local areas. The objective for these pilot projects was to refresh our product, improve viewing to letting conversion and drive occupancy and income.

Areas of focus

The pilots have focused on addressing high impact, first impression areas at the sites, including entrances, external terraces, receptions, breakout areas, cafés, corridors, tea points and bathrooms. The projects have been deliberately capital-light, and delivered to an accelerated timetable. All changes have been centred on improving areas receiving poor customer feedback, such as lighting, acoustics and installing more in-demand phone booths.

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Read about our conviction approach Page 48

75% OCCUPANCY AT VOX STUDIOS 1
86% OCCUPANCY AT THE LEATHER MARKET 1

1. As at 31 March 2025.

VOX STUDIOS, VAUXHALL

Answering the brief

Customer feedback showed that areas that previously let down the user/visitor experience were the dark reception and cafe, corridors and tea points. The space was lacking ‘wow’ factor and the indoor and outdoor furniture could be improved.

Achievements and customer feedback

The main entrance was targeted for a redesign, injecting colour and personality to enhance wayfinding and first impressions for prospects viewing the space. The designers picked up on the history of Vox Studios – the former Marmite factory and before that, a brewery – in the graphics and artwork introduced throughout the project. The atmosphere in the café was improved with more diverse seating areas to encourage connections and the use of acoustic panels to absorb noise. Feedback has been positive with customers noting the vibrant new aesthetic and brighter communual areas.

THE LEATHER MARKET, LONDON BRIDGE

Answering the brief

This site had an underused outdoor courtyard and basement lounge areas that required attention. There was already refurbishment work underway at the site covering flooring, lighting and redecoration so the works were done in tandem.

Achievements and customer feedback

Once again, the design team took inspiration from the property’s history as a tannery, with art showing leatherwork tools and colour palettes drawing from leather. More planting and better seating options were introduced in the courtyard to present a fantastic first impression. The initial reaction from customers has focused on the added wow factor in the sense of arrival and the greater variety of outdoor seating.

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Q Andrea, where did you start in putting together the plan for these pilot projects?
A We’ve centred all our work around customer feedback. We gathered data and insights on the two properties, analysing viewing to letting conversion rates, customer survey responses and our designers even interviewed a number of customers to get specific feedback on the areas we were targeting for upgrades. This ensured maximum impact and more positive customer response to the changes made.

Q Alex, how have you brought teams from across the business together on this project?
A As always in delivering a multi-faceted project like this, we needed to draw on the expertise and skills we have in different teams across the business. So with these pilots, we brought together asset managers, members of the building and development team, as well as, critically, our centre managers on the ground who have the direct relationships with customers. It’s been a real team effort to deliver the project within a tight timeframe.

Q Alex, what’s been your biggest challenge in delivering the pilots?
A As referenced, we’ve completed these works to an accelerated timetable which is always a challenge! But I think the toughest challenge was to plan a schedule of works while minimising disruption to existing customers in the buildings. This meant that much of the redecoration and installation work needed to take place out of normal working hours and at a faster pace!

Q And finally, Andrea, why are spaces like these so important to your customers?
A Our customers are creative and innovative SMEs who want their own, customisable space that reflects the values and culture of their businesses. But they also want a ready-made community of like-minded businesses who they can share ideas and collaborate with. That’s why the spaces outside of their units are so important. A great café, breakout spaces and meeting rooms facilitate connections and networking opportunities and amenities like bike storage and showers help to attract and retain their teams. This is all part of Workspace’s holistic offer to support small business growth. We’ve centred all our work around customer feedback. This ensured maximum impact and a more positive customer response to the changes made.

Andrea Kolokasi
Head of Business Development

WHAT IT LOOKS LIKE WHEN EVERYTHING WE DO COMES TOGETHER FOR OUR CUSTOMERS

Q&A

Andrea Kolokasi
Head of Business Development

Alex Anderson
Senior Project Manager

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PLATFORM AND TECHNOLOGY

Over the last two years, we have made significant investments in technology to upgrade and modernise our systems. As part of our strategic goal to transform the business and prepare for emerging opportunities, we are now accelerating enhancements to our platform. This includes improving the accessibility and presentation of data to the business to support our pursuit of operational excellence. The technology team has been working closer with team leaders in the business to understand their needs and has brought in additional development resource to improve business intelligence and reporting capability across departments.

MYWORKSPACE CUSTOMER PORTAL

In line with the upgrade of our CRM system, we are preparing to relaunch MyWorkspace, our customer portal. This will allow customers to maintain and feed into their records directly, reducing errors and overheads. The enhanced capability of MyWorkspace will see the business managing Wi-Fi access directly, without relying on a third party. Most importantly, it will give us access to every individual working in our centres rather than just the office manager or business owner who signed the lease. For the first time, we’ll be able to engage directly with everyone using our space. MyWorkspace will be a platform for our community to grow, where we can facilitate networking and engagement between customers. It will give us better visibility over how our customers are engaging with our offer and our services and provide valuable feedback and insights.

AI PILOTS

We are using AI in many different ways across the business. As outlined on page 42, the Marketing team are piloting the use of an AI Enquiries agent to be the first line of response for web enquiries. In addition, we are using AI for space planning. This has a dual purpose of speeding up our sales cycle as our Sales Managers can instantly show customers different layouts for larger spaces, while our Investment team are using it to space plan whole buildings when considering acquisitions, saving on time and architect fees.

OUR STRATEGY CONTINUED

2. TRANSFORM AND PREPARE FOR EMERGING OPPORTUNITIES CONTINUED

Our operating platform will provide a single source of truth on our customers, bringing together data and insight from all corners of the business.

Chris Boultwood
Head of Technology

ESG-LED INNOVATION TO ENHANCE CUSTOMER PROPOSITION

SUSTAINABILITY IN EVERYTHING WE DO

To ensure we continue to meet our customers’ expectations around ESG, we are always exploring new and innovative ways to enhance our offering. For example, we are working to integrate our smart BEMS system with the MyWorkspace portal, allowing customers to view their energy consumption in real time. This will empower them to monitor and manage their own emissions more effectively.

ONE CENTRALISED PLATFORM

We have now fully migrated our finance and property management systems to Microsoft Dynamics in the cloud. With the migration of our CRM system later in the year, we will consolidate all the elements of our platform in one cloud location. This centralises our data and ensures we have a single source of truth about our customers, providing more accurate and cleaner reporting. It will provide a 360-degree view of how our customers interact with the business, from how engaged they are with centre teams, which events they attend and whether they pay their rent on time.

Chris Boultwood on our AI-themed discussion panel

CLIMATE RESILIENCE THROUGH NET ZERO CARBON TRANSITION

As a long-term asset owner, future-proofing our portfolio is a key priority. That’s why we made a commitment to net zero carbon. Our agile approach and early action have enabled us to stay ahead of the curve and remain well-prepared for emerging climate risks and opportunities. The following pages outline our net zero carbon commitment and approach.# STRATEGIC REPORT

As a signatory to both the BBP Climate Commitment and the SBTi, we report annually on our progress against our net zero pathway. We disclose our absolute greenhouse gas emissions in line with the GHG Protocol guidelines. See the pie chart on the right for our 2024/25 emissions footprint. While we procure 100% of our electricity from renewable sources, we report Scope 2 emissions using a location-based methodology.

OUR STRATEGY CONTINUED

2. TRANSFORM AND PREPARE FOR EMERGING OPPORTUNITIES CONTINUED

We always consider carbon savings when designing our refurbishment projects, whether large or small.

Alex Anderson
Senior Project Manager

• 100% WORKSPACE-PROCURED ELECTRICITY COMES FROM RENEWABLE SOURCES
• 35% REDUCTION IN GHG EMISSIONS SINCE 2020
• 27% GAS CONSUMPTION REDUCTION
• 13% ELECTRICITY CONSUMPTION REDUCTION

See page 107 for detailed breakdown of emissions and energy

CASE STUDY: ADDING VALUE THROUGH ENERGY EFFICIENT REFURBISHMENTS

Last year we refurbished the 9th and 10th floor at our Mille building in Brentford, delivering 12,370 sq.ft. of high quality sustainable work space. Through our works, we transformed the gas fired heating system to be fully electric by installing heat pumps, which means the space is now entirely powered by our 100% renewable electricity.

Relevant material issue: Energy and Carbon
While refurbishing the space, energy performance was kept front and centre of the project’s objectives. We also installed high-efficiency LED lighting as well as presence detection sensors. The EPC of the space was upgraded from a D rating to an A rating and we witnessed an annual energy saving of 153 MWh in electricity and 141 MWh in gas across the building, equivalent to the annual energy usage of over 70 typical UK homes. The space was also sub-metered to allow for a granular analysis of hourly energy consumption going forward. This project was an opportunity to kick start the installation of our smart BEMS system (Optergy) in the building, which is now being rolled out to all floors.

LOCATION-BASED SCOPE 1, 2, 3 GHG EMISSIONS (tCO 2 e)
Scope 1	1,912
Scope 2	6,259
Scope 3	12,393

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WHOLE BUILDING ENERGY-RELATED EMISSIONS INTENSITY REDUCTION TRAJECTORY (kgCO 2 e/m 2 )
2040 target	1.3
6.2
12.6	2024/25	2019/20 (baseline)

OTHER SCOPE 3 EMISSIONS REDUCTION TRAJECTORY (tCO 2 e)
1 2040 target	1,919
10,702
19,190	2024/25	2019/20 (baseline)

Metal Box Factory

Our net zero carbon pathway
We have a long-standing commitment to achieving net zero carbon, with our initial SBT validated in 2020. However, evolving climate science has made it clear that the pace and scale of action must increase. In response, we have updated our net zero commitment this year to align with the latest SBTi Net-Zero and building sector guidance, committing to fully decarbonise our business by 2040. Our new targets specifically include:

• – 90% reduction in whole building energy-related GHG emissions intensity by 2040 from a 2020 base year (with a 58% interim reduction target by 2030).
• – 90% reduction in absolute scope 3 GHG emissions by 2040 from a 2020 base year (with a 46% interim reduction target by 2030).

Our progress to date has been remarkable, and we have already reduced our carbon emissions by 35% since 2020. The chart above shows our indicative emissions

NET ZERO PATHWAY CARBON EMISSIONS REDUCTION TRAJECTORY (TCO 2 E)

3	5,000	3	0,000	2	5,000
2	0,000	15	,000	1	0,000
5	,000	0
2019/20	2024/25	2040*	2030
Offsetting for 10% residual emissions	-35%	-29%	-78%

reductions trajectory and we intend to continue on our climate transition journey at pace, by focussing on the following key pillars of our net zero carbon pathway.

1. Whole building operational emissions: Ensuring our portfolio is energy efficient and powered by renewables
2. Supply chain emissions: Taking timely action to optimise our procurement and help our suppliers progress on their climate transition.
3. Embodied carbon: Continuing with a refurbishment led ethos to minimise emissions from development and construction activities
4. Offsetting: Investing in high quality removal projects for residual emissions only

The next page further details our net zero pathway and progress made under each pillars.

CASE STUDY: VOLTAGE OPTIMISATION

Unlocking energy savings through technology
Voltage Optimisation (VO) is a technology that reduces the incoming electricity supply from the grid, typically around 245 volts in the UK, to a more efficient level, usually around 222 volts. Most electrical equipment is designed to operate optimally at lower voltages, so this reduction helps cut energy consumption, reduce wear on equipment, and lower emissions. Several buildings across our portfolio have VO systems, and our most recent was installed at Metal Box Factory in November 2024. Through a voltage reduction from 245 volts incoming from the grid to 222 volts delivered to building devices, the building has already saved 16,211 kWh in energy in a four-month period, the equivalent of the annual electricity usage of 5 typical UK households. Following this success, eight more buildings have been identified for rollout.

• 16MWh SAVED IN 4 MONTHS AT METAL BOX FACTORY
• 8 PROPERTIES EARMARKED FOR VOLTAGE OPTIMISATION INSTALLATION

Relevant Material Issue: Energy and Carbon
Our updated science-based targets ensure our net zero carbon trajectory reflects the latest climate-science and sectoral best practice.

Ariane Ephraim
Senior Sustainability Manager

OUR STRATEGY CONTINUED

2. TRANSFORM AND PREPARE FOR EMERGING OPPORTUNITIES CONTINUED

1. Excluding energy directly procured by customers.

54 Workspace Group PLC Annual Report and Accounts 2025
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WHOLE BUILDING OPERATIONAL EMISSIONS (SCOPE 1&2 + CUSTOMER EMISSIONS)	REDUCE SUPPLY-CHAIN EMISSIONS (SCOPE 3)	REDUCE EMBODIED-CARBON EMISSIONS (SCOPE 3)	OFFSETTING RESIDUAL EMISSIONS
OUR NET ZERO CARBON PATHWAY

TIMELINE PROGRESS ON OUR NET ZERO CARBON PATHWAY

1	2	3	4
2019	2019	2021	2023	2025	2040 – NET ZERO CARBON	2020
Relevant UN SDGs	Relevant UN SDGs	Relevant UN SDGs	Relevant UN SDGs

OUR STRATEGY CONTINUED

2. TRANSFORM AND PREPARE FOR EMERGING OPPORTUNITIES CONTINUED

CLIMATE RESILIENCE THROUGH NET ZERO CONTINUED

Goal: Reduce whole building energy-related emissions intensity by 90% by 2040 (2020 baseline)
Progress:
* – 51% reduction in whole building energy- related emissions intensity since 2020
* – 43% reduction in customer-direct emissions
* – Over 60% of portfolio fully electric
* – £10m invested in upgrading our portfolio in 2024/25
* – 100% electricity sourced from renewables

Goal: Reduce embodied carbon of projects, aiming for less than 500 kg CO 2 /m 2 for major projects.
Progress:
* – 56% reduction in embodied carbon emissions since 2020
* – A detailed embodied carbon assessment and reduction plan is created for all projects
* – Leroy House achieved an embodied carbon intensity of 293 kgCO 2 /m 2
* – Estimated embodied carbon of our current projects at The Chocolate Factory and The Biscuit Factory is 291 kgCO 2 /m 2 and 436 kgCO 2 /m 2 respectively

Goal: Reduce emissions from procurement of goods and services (i.e. supply chain emissions) by 90% by 2040 (2020 baseline)
Progress:
* – 29% reduction in supply chain emissions since 2020 through improved data quality and supplier engagement
* – Created a roadmap for supplier decarbonisation, aiming to achieve full compliance with top 50 suppliers. See case study on page 22
* – Enhanced supply chain emissions data quality by gathering supplier-specific GHG emissions data from 13 suppliers

Goal: Invest in permanent removal projects to offset no more than 10% of our emissions from 2040 onwards.
Progress:
* – Created a streamlined carbon offsetting strategy, outlining key criteria for investment
* – Fully offset embodied carbon from Leroy House refurbishment by purchasing 2,500tCO2e high quality carbon credits from a forest management project and a carbon capture technology project. See case study on page 79

• Set out first science-based targets. Published our first net zero carbon pathway. Signed our first power- purchasing agreement with a solar farm in Devon to cover two-thirds of our electricity demand.
• Reset our science-based targets and revised our net zero carbon pathway. Workspace aiming for net zero carbon by 2040 (achieving 90% emissions reduction from a 2020 baseline). Signed a REGO 1 -based green electricity contract to cover 100% of our electricity usage.
• 1. Renewable Energy Guarantees of Origin certificate, providing transparency on the source of electricity.

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STRATEGIC GOAL 3 – SCALE INNOVATE TO CREATE FUTURE OPTIONS

The impact on our business
Radical innovation will deliver opportunities to scale the business over the long term.

FY25/26 outcome
As we recycle capital from the disposal of low conviction assets, we may find opportunities to acquire sites in attractive, emerging SME locations. We will explore partnerships and opportunities to generate more income from existing assets and better leverage our platform.

Relevant KPIs
Financial performance: 1, 5, 6
Non-financial performance: 1, 2, 3, 4, 5, 8

Relevant principal risks and uncertainties
1, 2, 3, 4, 7, 8, 9

Market trends
4

Relevant sustainability priorities
* – Supporting the growth of local communities through our Social Impact Manifesto (page 58)
* – Building new partnerships to help London’s SMEs thrive
* – Driving responsible growth by decoupling business scale from emissions

HOW WE ARE INNOVATING TO CREATE FUTURE OPTIONS

Page
Long-term growth opportunities 57
Unlocking London’s future potential 58

What this means
We are taking a long-term view on innovation in order to take advantage of opportunities to scale the business in the future.# Workspace Group PLC Annual Report and Accounts 2025

Strategic Report

OUR STRATEGY CONTINUED

Why this is important

Although our immediate focus is on rebuilding occupancy and income growth, we are confident there is a compelling growth story for Workspace over the longer-term. As we have outlined, work on each of our strategic goals runs in parallel and we need to put the groundwork in today to be in a position to deliver scale opportunities in the future.

How we deliver against it

We will be opportunistic within our agreed strategic framework to take advantage of acquisition opportunities in some of the emerging SME locations highlighted by our market research. In addition, we will build relationships with potential partners and explore capital-light opportunities to generate more income from our existing assets and leverage the platform.

Operational excellence

Operational excellence will give us the headroom, confidence and competitive platform to innovate and scale the business. Once the discipline of operational excellence is fully embedded across the business, we will be in a position to pursue opportunities to significantly scale the business and income growth.

Pill Box, Bethnal Green

56 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

LONG-TERM GROWTH OPPORTUNITIES

Targeting emerging SME locations, driven by market insights

The market research we have conducted has identified potential growth areas based on their SME populations, intensity of local competition and proximity to good transport links. There is an opportunity for Workspace to return to its origins by entering new urban locations in London ripe for regeneration and driving both capital and income growth over the long term.

OUR STRATEGY CONTINUED

3. INNOVATE TO CREATE FUTURE OPTIONS CONTINUED

Generating more income from our existing assets

We believe there are opportunities to generate more income from our existing portfolio, outside of just driving rents. The nature of our historic, characterful assets and campus locations means they lend themselves well to alternative uses that would complement our existing SME offer. We are building relationships with potential partners and exploring capital-light opportunities, for example offering space to the customers of certain specialist operators. Our scale footprint across London increases our attractiveness to certain operators also looking to grow.

Leveraging the platform

With operational excellence fully embedded and once the work has been done to enhance the platform, we will be able to support, with limited growth in our cost base, a significant increase in our footprint across London. This could include growing through self-funded acquisitions, as well as growing our offer through extracting more value from our platform.

Eventspace, Salisbury House, Moorgate

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CASE STUDY: SUPPORTING YOUNG LONDONERS ACHIEVE THEIR FULL POTENTIAL

UNLOCKING LONDON’S FUTURE POTENTIAL

At Workspace, we believe growth isn’t just something that happens inside our buildings. It reaches beyond them, into communities, careers, and futures. As home to nearly 4,000 of London’s brightest businesses and custodians of over four million square feet of space across London, we’re fully invested in supporting London’s growth and prosperity.

Growth Happens at Workspace

Growth Happens at Workspace is our new flagship social impact programme, supporting young, disadvantaged Londoners into the world of work. With youth unemployment in London among the highest in the UK, through our programme, we’re tackling barriers like confidence, networks and experience. Rooted in our 4,000-strong business community, this is our commitment to building a fairer, more inclusive and prosperous London.

Our unique contribution

As a champion of London’s SMEs, Workspace is well placed to support young people into work. Through our ecosystem of employees, nearly 4,000 customers, and trusted community partners, we are creating meaningful pathways into employment, from early inspiration to real lasting opportunities. Together, we’re unlocking potential and helping businesses grow with London’s diverse talent.

Kicking off the programme this year, we have supported 240 young people through provision of education support, work experience and mentorship. See pages 81 and 83 for further detail on our skills and employment programme activity and case study on the right on our structured mentoring programme, delivered in partnership with Future Frontiers.

OUR SOCIAL IMPACT MANIFESTO

Our goal is to empower thousands of young, disadvantaged Londoners to access and grow in the world of work. By 2030, we aim to:

• SUPPORT 3,000 YOUNG PEOPLE WITH TAILORED EDUCATION, SKILLS DEVELOPMENT, AND EMPLOYMENT OPPORTUNITIES
• DELIVER 100+ BESPOKE TRAINING, SKILLS WORKSHOPS
• PROVIDE 300 YOUNG PEOPLE WITH PROFESSIONAL MENTORING
• OFFER 150 MEANINGFUL WORK EXPERIENCE PLACEMENTS
• FACILITATE 1,000+ CONNECTIONS BETWEEN YOUNG PEOPLE AND A DIVERSE NETWORK OF PROFESSIONALS AND EMPLOYERS
• SUPPORT 100+ YOUNG ENTERPRISES WITH START-UP ADVICE AND BUSINESS MENTORING

OUR STRATEGY CONTINUED

3. INNOVATE TO CREATE FUTURE OPTIONS CONTINUED

See our website https://www.workspace.co.uk/

During 2024, Workspace partnered with education charity Future Frontiers, which helps disadvantaged young people with guidance, networks, and opportunities to help them realise their potential at school and achieve qualifications beyond the age of 16. Workspace hosted 12 year 10 students in our offices, providing a structured mentoring programme. Through our support, the students were able to match their interest and strengths with potential career pathways, whilst boosting their confidence to progress their education journey. The programme proved a success, with every student who participated saying they were clearer on what they needed to do to achieve their ambitions. The Workspace employees who took part all said they found the programme highly rewarding.

The sessions I had with my student were super rewarding; it was a privilege watching them open up and become more confident talking to me, as well as figuring out what it is they are interested in.
Cassie Ferry
Workspace

I can’t fully express my gratitude (otherwise it would be as long as a master’s degree level essay) but thank you for your short but very important time!
Artemis Future Psychologist

58 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

FINANCIAL PERFORMANCE

OUR KEY PERFORMANCE INDICATORS

1. NET RENTAL INCOME	£122.1m	2025 122.1 126.2 116.6 2024 2023	2. TRADING PROFIT AFTER INTEREST
3. EPRA NTA PER SHARE	£7.74	2025 7.74 8.00 9.27 2024 2023	2025 66.8 66.0 60.7 2024 2023

WHY THIS IS IMPORTANT TO WORKSPACE

Net rental income is the rental income receivable after payment of direct property expenses, including service charge costs and other direct unrecoverable property expenses. It is important to Workspace because it measures our operating performance. It is a key driver of trading profit, which in turn determines dividend growth.

WHY THIS IS IMPORTANT TO WORKSPACE

Trading profit after interest is net rental income, less administrative expenses and net finance costs. It is a key measure for Workspace and its investors as it determines dividend growth, and so the returns we provide to our shareholders. It measures the underlying performance of the business. The Executive Directors are incentivised on trading profit after interest. A reconciliation of basic and diluted earnings to trading profit after interest is in note 8 to the financial statements.

WHY THIS IS IMPORTANT TO WORKSPACE

EPRA NTA per share is a definition of net tangible assets as set out by the European Public Real Estate Association. It represents net assets minus any intangible assets and financial derivatives and excluding deferred taxation relating to valuation movements and derivatives, divided by the number of shares in issue. It is important to Workspace as it provides stakeholders with information on our net asset value. It is a key external measure for property companies and is used to benchmark against share price.

MOVEMENT IN 2024/25

Net Rental Income decreased by 3.2% (£4.1m) to £122.1m, following the disposals made in the year. Underlying net rental income which excludes the net impact of acquisitions and disposals in the current and prior year, was down 0.3% to £119.6m.

MOVEMENT IN 2024/25

Trading profit after interest increased by 1.2% (£0.8m) to £66.8m. Total administrative expenses decreased by £2.0m to £23.3m which includes a £0.7m decrease in share-based costs, leaving a £1.3m underlying decrease in administration costs with lower staff costs due to performance in the year and tight control of other costs offsetting inflation. Net finance costs decreased to £32.0m in the year, reflecting the decrease in SONIA during the period and a reduction in net debt.

MOVEMENT IN 2024/25

Our EPRA NTA per share decreased by 3.3% (£0.26p) to £7.74. This was driven by the underlying decrease in the valuation of our portfolio, offset by trading profit in the year.

LINK TO STRATEGY 3.2.1.

1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities
3. Innovate to create future options

LINK TO STRATEGY 3.2.1.

1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities
3. Innovate to create future options

LINK TO STRATEGY 3.2.1.

1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities
3. Innovate to create future options

59 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

4. DIVIDEND PER SHARE

5. LIKE-FOR-LIKE RENT ROLL GROWTH

6.# OUR KEY PERFORMANCE INDICATORS CONTINUED

FINANCIAL PERFORMANCE CONTINUED

60 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

7. PROPERTY VALUATION

	2025	2024	2023
£m	2,368	2,446	2,741

WHY THIS IS IMPORTANT TO WORKSPACE
Our properties are critical to our business and the valuation demonstrates the value we are delivering to our shareholders and a measure of how well we are managing our buildings and driving rental income. The property portfolio is independently valued, currently by CBRE. We aim to enhance the value of our properties through active asset management, including refurbishment and redevelopment schemes. The movement in property valuation is a key driver in our EPRA NTA per share measure.

MOVEMENT IN 2024/25
There was an underlying reduction of 2.4% (£58m) in our property valuation, taking the valuation to £2,368m. This was mainly driven by a continued outward shift in valuation yields due to lower occupancy offset by increases in estimated rental values. See Property Valuation section of the Business Review on pages 68 to 70 for more detail.

LINK TO STRATEGY
3.2.1.
1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities
3. Innovate to create future options

8. TOTAL PROPERTY RETURN

	2025	2024	2023
%	2.91	(4.67)	1.10

WHY THIS IS IMPORTANT TO WORKSPACE
Total Property Return is the return for the year combining the valuation movement on our portfolio and the income achieved in the year. This figure is produced by MSCI, an independent Investment Property Databank (‘IPD’), and is compared to a benchmark group so that we can see how we are performing relative to similar companies. Total Property Return, and performance against the benchmark, form part of the bonus objectives for the Executive Directors and LTIPs for all people in schemes. For schemes post 2022 this metric no longer forms part of performance assessment.

MOVEMENT IN 2024/25
The increase in total returns in the year was driven by a lower valuation decrease compared to last year. Despite the decline in capital values, we outperformed our IPD benchmark demonstrating the resilience of our property portfolio.

LINK TO STRATEGY
3.2.1.
1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities

9. TOTAL SHAREHOLDER RETURN

	2025	2024	2023
%	(15.2)	22.3	(34.0)

WHY THIS IS IMPORTANT TO WORKSPACE
Total Shareholder Return is the return obtained by a shareholder, calculated by combining both share price movements and dividend receipts. This is important to Workspace because it shows the value that our shareholders receive from investing in Workspace shares. We aim to create maximum value for our shareholders, and as such this measure forms part of the performance criteria within our LTIP schemes.

MOVEMENT IN 2024/25
The movement in Total Shareholder Return is due to a decrease in the share price over the year, and offset by increased dividends paid in the year.

LINK TO STRATEGY
3.2.1.
1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities
3. Innovate to create future options

FINANCIAL PERFORMANCE CONTINUED

61 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

OUR KEY PERFORMANCE INDICATORS CONTINUED

NON-FINANCIAL PERFORMANCE

1. CUSTOMER ENQUIRIES (MONTHLY AVERAGE)

	2025	2024	2023
	703	788	798

WHY THIS IS IMPORTANT TO WORKSPACE
Customer enquiries represent the number of enquiries we receive for our space. Enquiries come through our website, via brokers, via phone, from walk-ins or existing customers looking to expand, contract or move locations. Measuring enquiries helps us to assess the customer demand for our product. Our internal marketing platform generates enquiries, and by increasing marketing activity we can drive enquiries, for example around the launch of a new building.

MOVEMENT IN 2024/25
There was an average of 703 enquiries per month over the year, with an average of 796 enquiries per month in the final quarter.

LINK TO STRATEGY
3.2.1.
1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities

2. VIEWINGS (MONTHLY AVERAGE)

	2025	2024	2023
	507	524	518

WHY THIS IS IMPORTANT TO WORKSPACE
This is the number of viewings of individual units by new or existing customers looking for new or additional space. Viewings are important because they provide an opportunity to get customers into our centres to see first-hand the quality of our space, and to drive lettings. It is important to monitor the conversion of enquiries to viewings and then of viewings to offer letters.

MOVEMENT IN 2024/25
There was an average of 507 viewings per month over the year, with a good conversion rate from enquiry to viewing and, as with enquiries, a strong final quarter.

LINK TO STRATEGY
3.2.1.
1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities

3. LETTINGS (MONTHLY AVERAGE)

	2025	2024	2023
	106	103	110

WHY THIS IS IMPORTANT TO WORKSPACE
This is the number of lettings that we complete. It is a key measure for Workspace because lettings drive our net rental income and therefore trading profit. Lettings set the tone for estimated rental values, and so impact our property valuation too.

MOVEMENT IN 2024/25
The average number of lettings completed per month was 106, a level consistent with the prior year.

LINK TO STRATEGY
3.2.1.
1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities

62 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

OUR KEY PERFORMANCE INDICATORS CONTINUED

NON-FINANCIAL PERFORMANCE CONTINUED

4. RENEWALS (MONTHLY AVERAGE)

	2025	2024	2023
	42	59	61

WHY THIS IS IMPORTANT TO WORKSPACE
This is the number of lease renewals we sign with existing customers per month. These are important as they demonstrate how sticky our customers are. We track customer retention and allow us to capture reversion within our portfolio.

LINK TO STRATEGY
3.2.1.
1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities

5. LIKE-FOR-LIKE EMISSIONS REDUCTION (SCOPE 1 AND 2)

	2025	2024	2023
%	7%	12%	11%

WHY THIS IS IMPORTANT TO WORKSPACE
Achieving net zero carbon by 2040 is a key priority for the business, driven by market and legislative expectations. We have a comprehensive net zero pathway to achieve our target of 90% reduction in emissions by 2040. To meet this target, our priority is to significantly reduce our scope 1 and 2 emissions, as these are under our direct control. We have identified key initiatives that will continue to drive year on year reduction in emissions. Notably, ongoing investment in degassing our portfolio and energy optimisation, delivered by our rolling refurbishment programme.

LINK TO STRATEGY
3.2.1.
1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities

6. EPC A/B RATED PORTFOLIO

	2025	2024	2023
%	60%	52%	43%

WHY THIS IS IMPORTANT TO WORKSPACE
We have set an EPC upgrade trajectory, aligned with proposed legislative requirement for all non-exempt properties to be EPC A/B rated by 2030. While the legislation is yet to be confirmed, staying ahead of compliance protects the lettability of our buildings and mitigates the risk of income and value decline as we approach the 2030 deadline. Our rolling refurbishment programme enables us to continue to upgrade our portfolio to EPC A/B rating, aligned with asset level business plans.

LINK TO STRATEGY
3.2.1.
1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities

DIVIDEND PAYMENT PER SHARE

	2025	2024	2023
pence (p)	28.4	28.0	25.8

WHY THIS IS IMPORTANT TO WORKSPACE
This is the dividend payment per share in issue. Dividend per share is a key measure of the returns we are providing to our investors. It is important to Workspace because we aim to provide good returns for our shareholders, and also to work within our REIT requirements for income distribution.

MOVEMENT IN 2024/25
The dividend per share is 28.4p, reflecting the robust performance in the year.

LINK TO STRATEGY
3.2.1.
1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities
3. Innovate to create future options

LIKE-FOR-LIKE RENT ROLL

	2025	2024	2023
£m	28.4	28.4	25.8
%	(0.8)	9.6	7.1

WHY THIS IS IMPORTANT TO WORKSPACE
Like-for-like properties are those with stabilised occupancy, excluding recent acquisitions and disposals and buildings impacted by significant refurbishment or redevelopment activity. Rent roll is the current annualised net rent receivable for occupied units at the date of reporting. Monitoring rent roll growth on the like-for-like portfolio is an important measure of the underlying performance of the business and a key driver of future net rental income. We monitor the like-for-like rent roll on a weekly basis in management meetings and it is also a key performance indicator in our monthly Board reporting.

MOVEMENT IN 2024/25
The like-for-like rent roll has decreased by 0.8% (£0.9m) in the year, driven by a 4.8% uplift in rent per sq. ft. from £45.86 to £48.08, offset by a decrease in occupancy to 83.0%.

LINK TO STRATEGY
3.2.1.
1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities

LIKE-FOR-LIKE OCCUPANCY

	2025	2024	2023
%	83.0	88.1	89.1

WHY THIS IS IMPORTANT TO WORKSPACE
Like-for-like occupancy is the area of let space within the like-for-like portfolio divided by the net lettable area of the like-for-like portfolio. It is important as it gives us vital information on the performance of our core properties. It drives pricing and operational decisions and can be a measure of customer demand for the space. Again, this is monitored on a weekly basis in management meetings and it is also a key performance indicator in our monthly Board reporting.

MOVEMENT IN 2024/25
Like-for-like occupancy decreased to 83.0%, reflecting the higher than usual level of customers vacating in the period.

LINK TO STRATEGY
3.2.1.
1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities# Workspace Group PLC Annual Report and Accounts 2025

Strategic Report

Our Governance

Financial Statements

Additional Information

OUR KEY PERFORMANCE INDICATORS CONTINUED

NON-FINANCIAL PERFORMANCE CONTINUED

7. CUSTOMER ESG SCORE

84%

2025 84
2024 79
2023 70.5

WHY THIS IS IMPORTANT TO WORKSPACE
As key stakeholders in our business, it’s essential that our customers value our ESG approach. Strong customer advocacy of our ESG credentials is closely linked to recommendation levels and overall satisfaction, ultimately driving business value. The metric is captured via our bi-annual customer survey where we ask if customers agree Workspace is an environmentally and socially responsible business. We also seek specific sustainability feedback from our customers to continue to improve our approach.

MOVEMENT IN 2024/25
Year-end customer survey revealed 84% of customers agree Workspace is a socially and environmentally responsible business, up from 79% last year. Details on what drove the enhancement in score can be found on page 17.

LINK TO STRATEGY
3.2.1. 1. Enhance and expand the core business 2. Transform and prepare for emerging opportunities

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8. DIRECT SOCIAL VALUE

£1.02m

2025 £1.02m
2024 827k
2023 604k

WHY THIS IS IMPORTANT TO WORKSPACE
With an inherently sustainable business model, social impact sits at the heart of Workspace’s strategy. For our business, it also serves as a key differentiator for our brand and driver for customer satisfaction. To capture the positive outcomes generated through our sustainability initiatives and direct operations, we adopted social value as a business metric. This enables us to consolidate the impact of a range of initiatives into a single benchmark, supporting consistent measurement and continuous improvement.

MOVEMENT IN 2024/25
£1.02m of direct social value has been generated from our business operations, up from £827k last year. Details on what drove the increase in social value can be found on page 85.

LINK TO STRATEGY
3.2.1. 1. Enhance and expand the core business 2. Transform and prepare for emerging opportunities

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9. EMPLOYEE INCLUSIVITY SCORE

86%

2025 86
2024 85
2023 80

WHY THIS IS IMPORTANT TO WORKSPACE
As a people-focused business, fostering a diverse and inclusive business is a key priority for us and our employees. Diverse experiences and inclusive culture drives business performance. We benchmark our employee diversity figures twice a year and are pleased that our workforce reflects London’s diverse population. The inclusivity score metric is captured via our annual employee survey where we ask our people if they agree Workspace is an inclusive business.

MOVEMENT IN 2024/25
Year-end employee survey revealed an inclusivity score of 86%, maintaining last year’s strong position with a score of 85%. Details on our approach to diversity and inclusion can be found on pages 20 and 81.

LINK TO STRATEGY
3.2.1. 1. Enhance and expand the core business 2. Transform and prepare for emerging opportunities 3. Innovate to create future options

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BUSINESS REVIEW

TOTAL RENT ROLL £139.4m
TRADING PROFIT AFTER INTEREST £66.8m
PROPERTY VALUATION £2,368m

2024/25 PERFORMANCE IN LINE WITH EXPECTATIONS. UNDERLYING RENTAL INCOME GROWTH AND DIVIDEND INCREASED.

We have delivered a solid full year performance in line with expectations, in what has been a challenging macroeconomic and competitive environment. Underlying rental income was up 1.7% and LFL rent per sq. ft. grew 4.8%, helping to balance the fall in LFL occupancy in the year due to the loss of larger customers. These challenges will continue in the coming year, but we now have a very clear, deliverable strategy in place to stabilise and rebuild our occupancy and restore rental growth.

The Chocolate Factory, Wood Green

Our strategy
Pages 34 to 58

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CUSTOMER ACTIVITY

We have seen resilient customer demand with 1,266 lettings completed in the year with a total rental value of £31.8m.

	FY 2024/25	FY 2023/24	Monthly Average Q4 2024/25	Q3 2024/25	Q2 2024/25	Q1 2024/25
Enquiries	703	788	796	628	700	688
Viewings	507	524	585	457	486	499
Lettings	106	103	130	91	99	102

The good level of customer lettings has been offset by a higher than usual level of customer vacations in the period, including a number of larger customers. In line with our strategy, we are subdividing some of these larger spaces into smaller units, for which we see stronger demand and achieve higher pricing, as well as implementing marketing initiatives specifically targeted at larger businesses to drive leasing. Customer demand in the first quarter of 2025/26 is expected to be quieter, impacted by the timing of bank holidays and a more challenging macro environment, with 631 enquiries, 465 viewings and 65 new lettings in April 2025.

Brickfields, Hoxton

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RENT ROLL

Total rent roll, representing the total annualised net rental income at a given date, was down 2.8% (£4.0m) in the year to £139.4m at 31 March 2025.

	£m
At 31 March 2024	143.4
Like-for-like portfolio	(0.9)
Completed projects	0.8
Projects underway and design stage	0.4
South East Office	0.2
Disposals	(4.5)
At 31 March 2025	139.4

The total Estimated Rental Value (ERV) of the portfolio, comprising the ERV of the like-for-like portfolio and those properties currently undergoing refurbishment or redevelopment (but only including properties at the design stage and non-core properties at their current rent roll and occupancy), was £191.9m at 31 March 2025.

Like-for-like portfolio

The like-for-like portfolio represents 77% of the total rent roll as at 31 March 2025. It comprises 39 properties with stabilised occupancy excluding recent acquisitions, buildings impacted by significant refurbishment or redevelopment activity, or contracted for sale. We have continued to move pricing forward across our like-for-like portfolio with rent per sq. ft. increasing by 4.8% in the year to £48.08. Like-for-like occupancy was down by 5.0% to 83.0% in the year, with an overall decrease in like-for-like rent roll of 0.8% (£0.9m) to £107.9m, reflecting the higher than usual level of customer vacations in the period, as noted above. We have seen ERV per sq. ft. increase by 1.0% in the year. If all the like-for-like properties were at 90% occupancy at the CBRE estimated rental values at 31 March 2025, the rent roll would be £125.1m, £17.2m higher than the actual rent roll at 31 March 2025.

Like-for-like	Six Months Ended 31 Mar 2025	30 Sep 2024¹	31 Mar 2024¹
Occupancy	83.0%	84.2%	88.0%
Occupancy change²	(1.2%)	(3.8%)	(0.4%)
Rent per sq. ft.	£48.08	£47.12	£45.86
Rent per sq. ft. change²	2.0%	2.7%	3.4%
Rent roll	£107.9m	£107.1m	£108.8m
Rent roll change	0.7%	(1.6%)	3.0%

1. Restated for the transfer in of Old Dairy, Shoreditch where occupancy is now stabilised post refurbishment, the transfer out of Archer Street Studios, Soho, and Rainbow Industrial Estate (part), Raynes Park, which have been sold, the transfer out of Shaftesbury Centre, Ladbroke Grove to non-core which has been exchanged for sale and the transfer out of The Biscuit Factory site in Bermondsey which is undergoing major refurbishment.
2. Absolute change.

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BUSINESS REVIEW CONTINUED

Completed projects

There are seven projects in the completed projects category. Rent roll increased overall by £0.8m in the year to £7.8m. If the buildings in this category were all at 90% occupancy at the ERVs at 31 March 2025, the rent roll would be £12.3m, an uplift of £4.5m.

Projects underway – refurbishments

We are currently underway on eight larger refurbishment projects that will deliver 509,000 sq. ft. of new and upgraded space. As at 31 March 2025, rent roll was £13.0m, up £0.4m in the year. Assuming 90% occupancy at the ERVs at 31 March 2025, the rent roll at these eight buildings once they are completed would be £23.5m, an uplift of £10.5m.

Projects at design stage

These are properties where we are well advanced in planning a refurbishment or redevelopment that has not yet commenced. As at 31 March 2025, the rent roll at these properties was £2.7m, no change to March 2024.

South East office

As at 31 March 2025, the rent roll of the South East office portfolio, comprising eight buildings, was £7.0m, up £0.2m. Assuming 90% occupancy (or current occupancy if higher) at the ERVs at 31 March 2025, the rent roll would be £9.1m, an uplift of £2.1m.

Non-core

As at 31 March 2025, the rent roll of the non-core portfolio was £1.0m, no change to March 2024.

Disposals

During the year, there was £100.5m in exchanged or completed sales, broadly in line with book values.In aggregate, disposals have delivered £77m of proceeds (net of sales costs) in the year, at a combined net initial yield of 4.2%. In April, we exchanged and completed on the sale of Q West in Brentford for £10.3m, in line with the March 2025 valuation.

PROFIT PERFORMANCE

Trading profit after interest for the year was up 1.2% (£0.8m) on the prior year to £66.8m.

	£m	31 Mar 2025	31 Mar 2024
Underlying rental income		135.5	133.2
Unrecovered service charge costs		(4.2)	(4.7)
Empty rates and other non-recoverable costs		(11.4)	(9.8)
Services, fees, commissions and sundry income		(0.3)	1.3
Underlying net rental income		119.6	120.0
Disposals		2.5	6.2
Net rental income		122.1	126.2
Administrative expenses – underlying		(20.7)	(22.0)
Administrative expenses – share based costs¹		(2.6)	(3.3)
Net finance costs		(32.0)	(34.9)
Trading profit after interest		66.8	66.0
1. These relate to both cash and equity settled costs.

Underlying rental income increased £2.3m to £135.5m, reflecting the increase in average rent per sq. ft. achieved over the last year. Net rental income was down 3.2% (£4.1m) to £122.1m following the disposals made over the last year. Unrecovered service charge costs decreased by £0.5m, with costs tightly controlled and the majority of costs recovered from customers. Empty rates and other non-recoverable costs increased by £1.6m due to lower occupancy, which also impacted net revenue from services, fees, commissions and sundry income together with increased unrecovered energy, hospitality and events costs. Underlying administrative expenses decreased by £1.3m to £20.7m, with lower staff costs reflecting performance in the year and tight control of other costs offsetting inflation. Share-based costs decreased by £0.7m to £2.6m driven by lower vesting levels. Net finance costs decreased by £2.9m to £32.0m in the year reflecting the reduction in average net debt following asset disposals. The average debt balance over the year was £19.0m lower than in the prior year.

Parkhall, Dulwich
Barley Mow, Chiswick

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Profit before tax was £5.4m compared to a loss of £192.8m in the prior year.

	£m	31 Mar 2025	31 Mar 2024
Trading profit after interest		66.8	66.0
Change in fair value of investment properties		(56.3)	(255.3)
Loss on sale of investment properties		(1.5)	(2.3)
Other costs		(3.6)	(1.2)
Profit/(loss) before tax		5.4	(192.8)
Adjusted underlying earnings per share	34.5p	34.1p

The change in fair value of investment properties, including assets held for sale, was a decrease of £56.3m compared to a decrease of £255.3m in the prior year. The loss on sale of investment properties of £1.5m was driven by costs associated with disposals in the year. Other costs include one-off items relating to the replacement of our finance and property management system and CRM system as well as one-off costs relating to the new CEO appointed in the year. Adjusted underlying earnings per share, based on trading profit after interest and calculated on a diluted share basis, was up 1.2% to 34.5p. The calculation of adjusted, basic, diluted and EPRA earnings per share is shown in note 8 to the financial statements.

DIVIDEND

Our dividend policy is based on trading profit after interest, taking into account our investment and acquisition plans and the distribution requirements that we have as a REIT, recognising the importance to our shareholders of paying a regular, growing dividend, whilst ensuring the total dividend per share in each financial year is fully covered by adjusted underlying earnings per share. Based on trading profit performance and confidence in the longer-term prospects of the Company, the Board is recommending a final dividend of 19.0p per share, taking the full year dividend to 28.4p (2024: 28.0p), to be paid on 1 August 2025 to shareholders on the register at 4 July 2025. The dividend will be paid as a REIT Property Income Distribution (PID) net of withholding tax where appropriate.

PROPERTY VALUATION

At 31 March 2025, our property portfolio was independently valued by CBRE at £2,368m, an underlying decrease of 2.4% (£58m) in the year. The main movements in the valuation are set out below:

	£m
Valuation at 31 March 2024	2,446
Capital expenditure	60
Disposals	(80)
Underlying revaluation movement	(58)
Valuation at 31 March 2025	2,368

Leroy House, Islington

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A summary of the full year valuation and revaluation movement by property type is set out below:

	£m	Valuation 31 March 2025	Underlying revaluation decrease
Like-for-like properties		1,764	(29)
Completed projects		175	(4)
Refurbishments		322	(16)
South East office		76	(7)
Non-core		31	(2)
Total		2,368	(58)

Like-for-like properties

There was an 1.6% (£29m) underlying decrease in the valuation of like-for-like properties to £1,764m. This was driven by a 10bps outward shift in equivalent yield (£54m) due to an increased void assumption, offset by a 1.0% increase in the ERV per sq. ft. (£25m). ERV growth has returned to a lower, historically more normal level of annual increase, with pricing at most centres now back at or above pre-Covid levels. We saw stronger growth in ERV for smaller space, which represents the majority of our lettings activity, with an increase of 3.4% in the year for units under 1,000 sq. ft., compared to larger spaces where ERVs decreased by 0.8%. This reflects our approach to implement a wide range of smaller unit refurbishments and subdivisions to align our spaces with customer demand.

	31 Mar 2025	31 Mar 2024	Change
ERV per sq. ft.	£50.85	£50.33	1.0%
Rent per sq. ft.	£48.08	£45.86	4.8%
Equivalent yield	6.8%	6.7%	0.1%¹
Net initial yield	5.6%	5.6%	–
Capital value per sq. ft.	£645	£664	(2.9%)

1. Restated for the transfer in of Old Dairy, Shoreditch where occupancy is now stabilised post refurbishment, the transfer out of Archer Street Studios, Soho, and Rainbow Industrial Estate (part), Raynes Park, which have been sold, the transfer out of Shaftesbury Centre, Ladbroke Grove to non-core which has been exchanged for sale and the transfer out of The Biscuit Factory site in Bermondsey which is undergoing major refurbishment.
2. Absolute change.

A 2.5% increase in ERV per sq. ft. would increase the valuation of like-for-like properties by approximately £46m while a 25bps increase in equivalent yield would decrease the valuation by approximately £61m.

Like-for-like
Refurbishments
Non-core

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Completed projects
There was an underlying decrease of 2.2% (£4m) in the value of the seven completed projects to £175m. This was driven by a 0.6% decrease in the ERV per sq. ft. The overall valuation metrics for completed projects are set out below:

	31 Mar 2025
ERV per sq. ft.	£35.80
Rent per sq. ft.	£31.08
Equivalent yield	6.9%
Net initial yield	4.1%
Capital value per sq. ft.	£459

Current refurbishments

There was an underlying decrease of 4.7% (£16m) in the value of our current refurbishments to £322m. The decreases in respect of refurbishments reflected the combination of an outward movement yields, increase in build costs and reduction in ERVs.

South East office

There was a 8.4% (£7m) underlying decrease in the valuation of the South East office portfolio to £76m with 50bps outward shift in equivalent yield, and a 1.7% decrease in ERV per sq. ft. The overall valuation metrics are set out below:

	31 Mar 2025
ERV per sq. ft.	£28.58
Rent per sq. ft.	£24.13
Equivalent Yield	10.3%
Net Initial Yield	8.9%
Capital Value per sq. ft.	£227

BUSINESS REVIEW CONTINUED

REFURBISHMENT ACTIVITY

A summary of the status of the refurbishment pipeline at 31 March 2025 is set out below:

Projects	Number	Capex spent	Capex to spend	Upgraded and new space (sq. ft.)
Underway	8	£58m	£32m	509,000
Design stage	6	£0m	£335m	520,000
Design stage (without planning)	4	£0m	£113m	222,000

Activity is ongoing at our major refurbishment projects; Chocolate Factory in Wood Green, where we are delivering 45,000 sq. ft. of new and upgraded space with practical completion achieved in May 2025, and The Biscuit Factory in Bermondsey, which will deliver 31,000 sq. ft. of new space towards the end of the year. We have also started on site at The Centro Buildings in Camden, where we are transforming a traditional office building, Atelier House, into a Workspace business centre with 41 units, a café and meeting room, and expect to attain practical completion in October 2025. In addition to these major refurbishment projects, in order to pilot some of our new strategic initiatives, we have undertaken some capital-light refurbishment work at two sites, The Leather Market in London Bridge, and Vox Studios in Vauxhall. The work has addressed high-impact areas including entrances, external and internal breakout spaces, cafes, corridors and bathrooms. All changes have centred on addressing customer feedback and initial customer reactions have been very positive.

The Chocolate Factory, Wood Green
Pill Box, Bethnal Green

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There is a lot of work to do and it will take time to see results, but I am confident that we have a strategy to deliver a market-leading product and experience for our customers.

Lawrence Hutchings
Chief Executive Officer

BUSINESS REVIEW CONTINUED

SUSTAINABILITY

We have an inherently sustainable portfolio, underpinned by our refurbishment led ethos resulting in 40-70% lower emissions, compared to industry best practice, from our development and refurbishment activities and our energy efficient operations.# BUSINESS REVIEW CONTINUED

The average energy intensity of our portfolio is 15% lower than industry best practice for net zero carbon offices, set at 90kWhe/m² 1. Further improving the energy efficiency of our buildings is key in helping us to achieve our target of being a net zero carbon business. The Workspace portfolio is currently 60% EPC A and B rated, an increase of 8% in the year, ensuring our portfolio is future proofed against the proposed regulated trajectory for all commercial buildings to be EPC A/B rated by 2030. We also continue to procure 100% renewable electricity, with two-thirds of this demand being met via our power purchase agreement with a solar plant in Devon. In the year we also achieved a 7% reduction in operational energy intensity across the core portfolio. To ensure we build long-term climate resilience, we have updated our net zero carbon commitment – being the first UK REIT to adopt the latest building sector guidance from science based targets – committing us to a target of 90% emissions reduction by 2040 against our 2020 baseline. We are pleased to report that we have already reduced our emissions by 35% and have strong foundations in place to continue to drive climate action at pace.
¹ https://ukgbc.org/wp-content/uploads/2020/01/UKGBC-Net-Zero-Carbon-Energy-Performance-Targets-for-Offices.pdf

CASH FLOW

A summary of cash flows is set out below:

£m	31 Mar 2025	31 Mar 2024
Net cash from operations after interest¹	77	63
Dividends paid	(56)	(51)
Capital expenditure	(60)	(71)
Property disposals and cash receipts	77	118
Other	(3)	(12)
Net movement	35	47
Opening debt (net of cash)	(855)	(902)
Closing debt (net of cash)	(820)	(855)

¹ Excludes £8.8m of VAT payment (2024) relating to the sale of Riverside included in ‘Other’. There is a reconciliation of net debt in note 16(b) in the financial statements. The overall decrease of £35m in net debt largely reflects the disposals made in the period.

NET ASSETS

Net assets decreased in the year by £46.7m to £1,502m. EPRA net tangible assets (NTA) per share at 31 March 2025 was down 3.3% (£0.26) to £7.74.

EPRA NTA per share £
At 31 March 2024	8.00
Adjusted trading profit after interest	0.34
Property valuation deficit	(0.30)
Dividends paid	(0.28)
Other	(0.02)
At 31 March 2025	7.74

The calculation of EPRA NTA per share is set out in note 9 of the financial statements.

TOTAL ACCOUNTING RETURN

The total accounting return for the year was 0.3% compared to -10.9% in the prior year ended March 2024. The total accounting return comprises the change in absolute EPRA net tangible assets per share plus dividends paid in the year as a percentage of the opening EPRA net tangible assets per share. The calculation of total accounting return is set out in note 9 of the financial statements.

The Print Rooms, Southwark
Leroy House, Islington

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FINANCING

As at 31 March 2025, the Group had £25m of available cash and £235m of undrawn facilities:

	Drawn amount £m	Facility £m	Maturity
Private placement notes	300.0	300.0	2025-2029
Green bond	300.0	300.0	2028
Secured loan	65.0	65.0	2030
Term loan	80.0	80.0	2026
Bank facilities	100.0	335.0	2026-2028
Total	845.0	1,080.0

In May 2025 the terms of the £200m RCF were amended to extend the maturity to 30 June 2029, with options to extend by up to a further two years and an option to increase the facility amount to £300m, subject to lender consent. Following the refinancing, on a pro-forma basis, the average debt facility maturity at 31 March 2025 was 3.1 years (31 March 2024: 3.4 years). In February 2024, £100m of the floating rate bank borrowings were swapped to an all in fixed rate of 6.1% for two years. At 31 March 2025, the Group’s effective interest rate excluding the impact of capitalisation but including amortisation of issue costs and commitment fees was 4.0% based on SONIA at 4.5%, with 91% (£745m) of the debt at fixed or hedged rates. The average interest cost of our fixed-rate borrowings is 3.3% and our un-hedged floating-rate bank borrowings had an average margin of 1.8% over SONIA. A 1% change in SONIA would change the effective interest rate by 0.1% (at current debt levels). At 31 March 2025, loan to value (LTV) was 34% (31 March 2024: 35%) and interest cover, based on net rental income and interest paid over the last 12-month period, was 3.8 times (31 March 2024: 3.7 times), providing good headroom on all facility covenants. Our net debt to earnings ratio (calculated as net debt divided by trading profit before interest, but excluding depreciation and amortisation), improved from 8.3 times to 8.1 times during the year.

FINANCIAL CONSIDERATIONS FOR 2025/26

Looking ahead to our new financial year, recent macroeconomic events combined with slower economic growth and high levels of competition will continue to impact our business in the near term. As announced in our post-close financial update, we expect trading profit headwinds driven by a lower opening rent roll, further large unit vacations, additional costs from higher national insurance and higher living wages and additional refinancing costs due to the repayment of £80m of private placement notes in August. We have already taken a number of tangible actions to stabilise our business, but these will take time to take full effect and we will likely see continued pressure on occupancy in the year ahead, given visibility we have on more large customers vacating in H1. We are also working hard to deliver efficiencies to mitigate cost increases through streamlining our support functions to create a leaner, faster organisation, as well as a focus on non-recoverable property costs and general administrative expenses. We expect capital expenditure to be maintained at a similar level to last year, around £50-60m, as we continue to progress with planned asset management projects, including the refurbishments of Chocolate Factory and The Biscuit Factory, alongside tactical capital-light refurbishments to enhance our offering in conviction and high conviction buildings. This will be offset by recycled capital from asset disposals. As we look further ahead, we have confidence that our strategic plan will ensure we deliver a market-leading product for our rapidly growing client base of creative and innovative SME’s, whilst at the same time delivering long term, enduring value for our shareholders.

The Chocolate Factory, Wood Green

The majority of the Group’s debt comprises long-term fixed rate committed facilities including a £300m green bond, £300m of private placement notes, and a £65m secured loan facility. Shorter term liquidity and flexibility is provided by floating-rate sustainability-linked Revolving Credit Facilities (RCFs) totalling £335m which were £100m drawn as at 31 March 2025. In November, the terms of the £135m RCF were amended to extend the maturity to 30 November 2028, with options to extend by up to a further two years and an option to increase the facility amount to £255m, subject to lender consent. In addition, an £80m term loan facility was agreed with an initial maturity of November 2026 and with the option to extend by up to two further years, subject to lender consent.

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PROPERTY STATISTICS

	Half Year ended 31 Mar 2025	30 Sep 2024	31 Mar 2024	30 Sep 2023
Workspace Portfolio
Property valuation	£2,368m	£2,423m	£2,446m	£2,505m
Number of locations	67	73	77	79
Lettable floorspace (million sq. ft.)	4.3	4.3	4.5	4.7
Number of lettable units	4,744	4,650	4,678	4,718
Rent roll of occupied units	£139.4m	£140.1m	£143.4m	£141.9m
Average rent per sq. ft.	£41.50	£40.27	£38.21	£36.81
Overall occupancy	78.5%	81.5%	83.0%	83.5%
Like-for-like number of properties	39	39	43	42
Like-for-like lettable floor space (million sq. ft.)	2.7	2.7	2.9	2.9
Like-for-like rent roll growth	0.7%	(1.6%)	3.0%	6.4%
Like-for-like rent per sq. ft. growth	2.0%	2.7%	3.4%	6.8%
Like-for-like occupancy movement	(1.2%)	(3.8%)	(0.4%)	(0.6%)

¹ The like-for-like category has been restated in the current financial year for the transfer in of Old Dairy, Shoreditch where occupancy is now stabilised post refurbishment, the transfer out of Archer Street Studios, Soho, and Rainbow Industrial Estate (part), Raynes Park, which have been sold, the transfer out of Shaftesbury Centre, Ladbroke Grove to non-core which has been exchanged for sale and the transfer out of The Biscuit Factory site in Bermondsey which is undergoing major refurbishment.

² Like-for-like statistics for prior years are not restated for the changes made to the like-for-like property portfolio in the current financial year.

³ Overall rent per sq. ft. and occupancy statistics includes the lettable area at like-for-like properties and all refurbishment and redevelopment projects, including those projects recently completed and also properties where we are in the process of obtaining vacant possession.# Strategic Report

The Strategic Report on pages 1 to 117 was approved by the Board of Directors on 4 June 2025 and signed on its behalf by:

Lawrence Hutchings
Chief Executive Officer

Dave Benson
Chief Financial Officer

The Print Rooms, Southwark
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SUSTAINABILITY PERFORMANCE 2025 HIGHLIGHTS

• Real Estate Assessment Score: 84 (2023 rating: 76)
• Development Assessment Score: 92 (2023 rating: 79)
• Public Disclosure Score: A- (2023 rating: A)
• CDP rating: GOLD (2023 rating under review)
• MSCI ESG rating: AA (2023 rating: Negligible Risk)
• Sustainalytics ESG Risk Rating: 7% (2023 rating: 84%)

REDUCTION IN LIKE-FOR-LIKE ENERGY USE

2025: 37.5 GWh

2024: 40.5 GWh
2023: 44.8 GWh

100% WORKSPACE-PROCURED ELECTRICITY COMES FROM RENEWABLE SOURCES

200+ SUSTAINABILITY EVENTS DELIVERED

RECYCLING RATE

2025: 86%

2024: 76%
2023: 79%

CUSTOMER ESG SCORE

2025: 84%

2024: 79%
2023: 70.5%

2,220 CUSTOMERS ATTENDED OUR WELLBEING EVENTS

EMPLOYEE TRAINING HOURS PER FTE: 14 (2023: 16)

PEOPLE ON APPRENTICESHIPS: 100%

OF EMPLOYEES AND SUPPLIERS PAID THE REAL LONDON LIVING WAGE

DIRECT SOCIAL VALUE GENERATED

2025: £1.02m

2024: £827k
2023: £604k

INDIRECT SOCIAL VALUE: £21.7m

EMPLOYEE VOLUNTEERING HOURS

2025: 2,578

2024: 1,560
2023: 620

LOOKING AFTER OUR PEOPLE

SUPPORTING OUR COMMUNITIES

SUSTAINABILITY BENCHMARKS AND RATINGS

DELIVERING CLIMATE RESILIENT PORTFOLIO

1. % of customers who agree Workspace is environmentally and socially responsible.
2. See page 85 for detailed breakdown of social value.

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DRIVING PERFORMANCE THROUGH SUSTAINABILITY

SUSTAINABILITY PERFORMANCE CONTINUED

SUSTAINABILITY PERFORMANCE DASHBOARD

This dashboard summarises our current performance against our long-term goals across three pillars.

Sustainability pillar	Theme	Ambition	Current performance	Goal
DELIVERING A CLIMATE RESILIENT PORTFOLIO	Energy & Carbon	Aim to reduce emissions by 90% by 2040, from a 2020 baseline	35%	90%
	Nature	Aim to achieve 15% Biodiversity Net Gain across the portfolio by 2030	2.4%	15%
	Waste	Continue to divert 100% waste from landfill, aim for 5% annual reduction	Achieving
LOOKING AFTER OUR PEOPLE	Diversity & Inclusion	Maintain a diverse business, representative of London's demographics	Achieving
		Aim for an employee inclusivity score of 90%	86%	90%
	Customer Engagement	Aim for a customer ESG score of 90%	84%	90%
	Supplier Engagement	Engage our top 50 suppliers on climate transition	20 suppliers	50
SUPPORTING OUR COMMUNITIES	Social Value	Aim to deliver £10m of cumulative direct social value by 2030	£2.4m	£10m
	Skills and Employment	Aim to reach 3,000 young people with skills and employment support by 2030	240	3,000

For more information see pages 76 to 80.
For more information see pages 81 to 82.
For more information see pages 83 to 85.

We are committed to a performance-driven strategy where our sustainability initiatives are integral to our operational efficiency. To further strengthen our positive impact, we have set ambitious targets across all of our material sustainability issues, as illustrated on page 44. These targets are fully embedded within our business, with ownership distributed across relevant teams and business units to ensure accountability and integration into day-to-day operations. Progress is monitored closely throughout the year to support continuous improvement and measurable impact. The following pages outline our annual environmental and social targets, along with commentary on year-end performance and achieved outcomes.

Workspace Sustainability Managers, Mel Gooding and Ariane Ephraim

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ADDRESSING OUR MATERIAL ENVIRONMENTAL ISSUES: DELIVERING A CLIMATE RESILIENT PORTFOLIO

Relevant material issue	Workspace response	Status
ENERGY & CARBON	REDUCE SCOPE 1 AND 2 EMISSIONS BY 8-10% ACROSS THE LIKE-FOR-LIKE PORTFOLIO	Partially Achieved
ENERGY & CARBON	REDUCE LIKE-FOR-LIKE ENERGY USE INTENSITY ('EUI') BY 8% MEASURED IN KWHE/M 2	Partially Achieved
ENERGY & CARBON	ROLL OUT SMART BUILDING ENERGY MANAGEMENT SYSTEMS ACROSS THE PORTFOLIO	Ongoing

We achieved a 7% reduction in scope 1 & 2 emissions across like-for-like portfolio since last year, falling slightly short of our target. The reduction was primarily driven by limiting gas use in buildings, rolling out smart Building Energy Management Systems, optimising temperature set points and timing controls and implementing over 50 HVAC upgrade projects. Currently, over 60% of our portfolio is fossil fuel free (all electric or served by district heating). Despite having an active energy and carbon reduction plan in place, the ongoing electrification of our portfolio led to increased electricity consumption, which offset the savings from reduced gas use. As a result, our location-based emissions reduction was slightly lower than expected.

SCOPE 1&2 LOCATION-BASED GHG EMISSION

2024/25: 7,995
2023/24: 8,610
2019/20 (baseline): 10,595

We achieved a 7% reduction in like-for-like Energy Use Intensity ('EUI') across the portfolio, falling slightly short of our target. This was mainly driven by an impressive 12% reduction in gas use across the portfolio, along with a 6% reduction in landlord- procured electricity. This year, we invested over £10m on various energy-efficiency initiatives across the portfolio, including LED lighting, presence-detection sensors, smart- building management systems, secondary glazing and heat pumps. We also ran extensive customer engagement campaigns to reduce whole building energy consumption (see case study on Big Energy Race on page 17). Targeted effort was also made to reduce the EUI at high energy consuming buildings (refer to case study to the right). As noted on the left, electricity demand increased following the phase out of gas boilers which resulted in slightly lower than expected savings.

53 buildings (c.81% of portfolio by area) are now fully enabled with our smart Building Energy Management System (BEMS), Optergy. This not only provides unit-level and equipment-level consumption visibility, but it also enables us to track energy performance in real-time and identify optimisation opportunities in a timely way. We aim to continue with the roll-out to ensure all our buildings are BEMS enabled. Optergy gives us the granular data we need – zone-level usage, runtimes, peak loads, temperature set points – and helps us identify and address energy wastage across the portfolio.

Phil Nartey
Senior Facilities Manager

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DRIVING POSITIVE ENVIRONMENTAL IMPACT

SUSTAINABILITY PERFORMANCE CONTINUED

CASE STUDY: SITE ENERGY AUDITS

Uncovering energy savings through energy audits
This year, we shortlisted 12 of our high energy consuming buildings for energy audits, to identify practical ways to reduce energy. These audits led to the identification of over 70 energy-saving opportunities, many of which have already been put into action. The implemented opportunities contributed towards a 545 MWh reduction in energy use across the 12 selected buildings. The key set of opportunities we implemented included adjusting temperature bands, introducing automated hourly equipment shutdowns, installing LED lighting with presence and lux sensors, and replacing gas-dependent systems with electric alternatives such as point-of-use water heaters and electric showers. These audits are a simple but effective way for us to keep improving how our buildings perform, helping us lower our environmental impact while making spaces more efficient and comfortable for customers. We continue to explore low and zero-cost opportunities to unlock energy savings.

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ADDRESSING OUR MATERIAL ENVIRONMENTAL ISSUES: DELIVERING A CLIMATE RESILIENT PORTFOLIO CONTINUED

Relevant material issue	Workspace response	Status
ENERGY & CARBON	ALL MAJOR PROJECTS DESIGNED TO BE NET ZERO CARBON IN CONSTRUCTION AND OPERATION, BREEAM EXCELLENT AND EPC A (B FOR REFURBISHMENTS)	Achieved
ENERGY & CARBON	SOURCE HIGH-QUALITY RENEWABLE ELECTRICITY	Achieved
ENERGY & CARBON	INCREASE THE % OF ENERGY PERFORMANCE CERTIFICATE ('EPC') A AND B RATED AREAS IN THE PORTFOLIO BY 8%	Achieved
NATURE AND BIODIVERSITY	CREATE A LONG-TERM NATURE AND BIODIVERSITY STRATEGY	Achieved

We continue to implement our Sustainable Development Framework across all major projects. This framework ensures all our projects meet the net zero carbon brief. We undertake whole-life carbon analysis at key design stages to help us assess and reduce embodied carbon by optimising design and material choices. The Leroy House project which we completed this year resulted in embodied carbon emissions of 293 kgCO 2 /m 2 (which were fully offset) and achieved BREEAM Excellent (for the extension) and an EPC A rating. Estimated embodied carbon of current projects are – 436 kgCO 2 /m 2 for the Biscuit Factory and 291 kgCO 2 /m 2 for the Chocolate Factory. Overall, we achieved a 56% reduction in embodied carbon emissions since our 2019/20 base year.# SUSTAINABILITY PERFORMANCE CONTINUED

Our portfolio is 60% A/B rated, with 22 BREEAM certified buildings, and we continue to ensure all projects in the pipeline are being designed to achieve at least an ‘Excellent’ BREEAM certification and A rated EPC (B for refurbishments). We continue to source 100% renewable electricity. Since February 2024, two-thirds of Workspace-procured electricity comes from a solar farm in Devon through a Power Purchase Agreement. We meet the remaining third of our electricity demand by continuing to source renewable electricity through a REGO-backed contract from our utility supplier. 15 sites are equipped with solar panels and generated 218,594 kWh of renewable electricity in the past year. This is equivalent to the annual electricity usage of over 60 typical UK households.

2/3rd OF WORKSPACE PROCURED ELECTRICITY COMES FROM A SOLAR FARM IN DEVON

This year we upgraded 8% of our portfolio (346K sq. ft.) to EPC A/B rating by installing highly efficient lighting and HVAC systems. As a result, 60% of our whole portfolio has an EPC rating of A/B.

EPC BREAKDOWN ACROSS THE PORTFOLIO (BY AREA)

EPC Rating	Percentage
A/B	60%
C	21%
D	15%
E	4%

We have published our first Nature and Biodiversity Strategy 'Make Space for Nature' setting measurable targets for our developments and operational portfolio. This strategy is now under implementation and we delivered 5 greening projects this year, resulting in a 0.4 Biodiversity Unit 1 uplift across the operational portfolio. See page 117 for more information. We have also incorporated the targets in the design brief for development projects and will report performance upon project completion. Retrospective assessments of our live projects, Chocolate Factory and Biscuit Factory, indicate an Urban Greening Factor of 0.18 (0.75 BU/ha) and 0.12 (1.7 BU/ha) respectively (BNG is not applicable due to negligible baselines). We have also published the inaugural edition of our reporting aligned with the Taskforce on Nature-related Financial Disclosure (TNFD). See pages 112 to 117 for more details.

1. Biodiversity Units ('BU') are a measure of habitat provision based on its size, condition and distinctiveness.
2. Biodiversity Net Gain ('BNG') equals = biodiversity units post project (-) biodiversity units pre-project.

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ENERGY USE INTENSITY ACROSS THE PORTFOLIO (kWhe/m 2 INTERNAL AREA)

This graph shows the energy use intensity of all the buildings in the portfolio. The average energy intensity of our portfolio is 75 kWhe/m2 of internal area, which is over 15% lower than the 2030 UKGBC target for net zero carbon offices. At an individual building level, 23 buildings already meet the 2030 target depicted by the yellow line. As explained in page 77, we continue to prioritise high energy use buildings for site audits and energy efficiency investments. As a long-term goal, we are aiming for the vast majority of our buildings to perform below the 2030 net zero carbon target and to achieve an EPC A/B rating (where feasible) by 2030. We project a total investment of £40-50m will be required to meet this goal by 2030 (this is inclusive of the required ongoing annual maintenance CAPEX).

Over the 2024/25 financial year, we invested over £10m of CAPEX across 45 properties to improve the energy efficiency and EPC rating of our buildings, helping us deliver a 7% reduction in energy use intensity, across the like-for-like portfolio. We also upgraded 8% of our portfolio to EPC A/B ratings. A recent refurbishment project at Salisbury House exemplifies our commitment to sustainable upgrades. This year, we refurbished circa 18,000 sq. ft. of space in the building, improving the EPC rating from a C to an A. We installed high efficiency lighting and heat pumps, with minimal disruption to neighbouring units. This refurbishment contributed to the 32% reduction in gas consumption witnessed in the building over the course of the year.

SUSTAINABILITY PERFORMANCE CONTINUED

ADDRESSING OUR MATERIAL ENVIRONMENTAL ISSUES: DELIVERING A CLIMATE RESILIENT PORTFOLIO CONTINUED

Relevant material issue	Workspace response	Status
WATER	TARGET AT LEAST 5% REDUCTION IN POTABLE WATER CONSUMPTION	Achieved
CLIMATE ADAPTATION	ENSURE ACTIVE MANAGEMENT OF CLIMATE RISK ACROSS THE PORTFOLIO	Ongoing
SUSTAINABLE PROCUREMENT	DRIVE EMISSION REDUCTIONS THROUGH PROCUREMENT	Ongoing

We achieved a 8% reduction in absolute water consumption this year as a result of enhanced metering and roll-out of water saving fixtures in showers and toilets. We have nearly 100% visibility of our water consumption and track it monthly. This has also enabled us to accurately benchmark our water consumption and drive material consumption reductions. Our water consumption intensity across the portfolio is 0.5 m 3 /m 2 of lettable area, which is in line with the Real Estate Environmental Benchmark (REEB) for UK offices.

We have a robust understanding of our exposure to physical climate risk and closely monitor impacts of extreme weather events, such as flooding and storms. See our TCFD report (pages 99 to 106). Our mitigation strategy is detailed on pages 104 to 105. One of our main risks is related to flooding on select sites and a dedicated taskforce continues to monitor our flood management plans, including business continuity processes. This taskforce monitors any incidents of flooding and remedial actions being taken. We also continued to roll-out flood risk and drainage management surveys across the portfolio, resulting in no material flood-related damage or business interruption.

On the back of our updated net zero carbon commitment, we conducted a thorough review of our supply chain emissions. This review enabled us to understand the distribution of emissions across key supplier groups. Subsequently, we initiated sustainability-focused engagement with our top suppliers to drive targeted impact. We invited our top 20 suppliers to participate in a sustainability workshop, aimed at gathering their input on our proposed supply chain decarbonisation roadmap. This roadmap requires our suppliers to submit carbon data and to set their own net zero targets by no later than the 2027/28 financial year. We were pleased to receive full support on our roadmap by our key suppliers. As a result, we have taken the decision to roll it out to our top 50 suppliers. A successful implementation will help to ensure we stay on course to achieve our scope 3 emissions reduction target in line with our net zero commitments.

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CASE STUDY: OFFSETTING OUR CONSTRUCTION CARBON FOOTPRINT

Our Leroy House project was completed this year, in compliance with our development net zero carbon brief. To align with UKGBC's Net Zero Carbon Framework criteria for 'net zero carbon – in construction' we took a decision to offset the entirety of the project’s upfront embodied carbon, which amounts to c.2,500tCO 2 e. Carbon credits were sourced from two high quality carbon removal projects:

• 375 tonnes of CO 2 e worth of credits were purchased from a carbon mineralisation project in Leeds, UK. This carbon capture technology ensures long-lived carbon removal and storage and supports sustainable construction by producing carbon negative materials.
• 2,125 tonnes of CO 2 e worth of credits were purchased from the Ejido Tutuaca Improved Forest Management in Mexico, providing high quality carbon removal and storage solution. The project is Sylvera Tier 2 rated and has a 100 years permanence guarantee.

ADDRESSING OUR MATERIAL ENVIRONMENTAL ISSUES: DELIVERING A CLIMATE RESILIENT PORTFOLIO CONTINUED

Relevant material issue	Workspace response	Status
SUSTAINABLE TRANSPORT	ENHANCE SITE-WIDE INFRASTRUCTURE TO ENABLE GREATER UPTAKE OF SUSTAINABLE TRANSPORT MODES	Achieved
WASTE AND RESOURCES	ACHIEVE RECYCLING RATE OF 80% AND DIVERT 100% WASTE FROM LANDFILL	Achieved

We have over 60 EV charging points across the portfolio, which were used over 3,000 times in the past year and helped avoid material amounts of air pollution and fossil fuel consumption from traditional thermal vehicles. We have also upgraded site facilities to encourage green transport and provide over 1,600 secure cycling racks and 90 showers across the portfolio.

We achieved an average recycling rate of 86% across the portfolio and diverted 100% waste from landfill. A total of 2,936 tonnes of waste was generated across the portfolio, comprising of 70% post-consumer waste, 14% general waste, 11% food/composting and 5% bottom ash. We also partnered with CauliBox, a provider of a reusable coffee cup borrowing and returning system.. Their solution is live across two of our sites since March 2025. Within just one month, we were able to avoid 197 single-use coffee cups going to waste from our cafes.# SUSTAINABILITY PERFORMANCE CONTINUED

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LESS SINGLE-USE COFFEE CUPS PER MONTH USED AT OUR LEROY HOUSE AND VOX STUDIOS CAFÉS THANKS TO OUR PARTNERSHIP WITH 'CAULIBOX', A PROVIDER OF REUSABLE CUPS

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WASTE

Waste is a material issue for us and to meet our stretching recycling target, we focused on engaging with our customers on waste management practices. In September 2024, 20 customers and employees took part in a behind-the-scenes tour of the recycling centre where all Workspace’s recycling is sent to be sorted. This eye-opening tour was led by our waste management partner Veolia and showed the technology and process undertaken to sort recycling, in an all-sensory tour. We have also organised two litter picking events to raise awareness of single-use plastics and contribute to improving the cleanliness of the public realm around our centres. We are conscious that signage and waste infrastructure are paramount to enable our customers to recycle. For this reason, we upgraded our waste posters and our customer-facing waste management guidance. We are also trialling new bins and signage at Leroy House, introducing in-unit bins for the first time to improve waste segregation at source. As a large portion of waste is generated at our cafés, we have partnered with CauliBox, a customer at Fleet Street, to bring reusable coffee cups to Leroy House and Vox Studios. This reusable cup scheme has saved 197 single use coffee cups in its first month.

CASE STUDY: RAISING AWARENESS OF WASTE

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SUSTAINABILITY PERFORMANCE CONTINUED

Relevant material issue	Workspace response	Status
WELLBEING	SUPPORT AND ENHANCE THE WELLBEING OF OUR EMPLOYEES AND CUSTOMERS	Achieved
HEALTH AND SAFETY
DIVERSITY AND INCLUSION	FOSTER A DIVERSE AND INCLUSIVE CULTURE	Achieved
SKILLS AND EMPLOYMENT	SUPPORT EMPLOYEE GROWTH THROUGH CAREER DEVELOPMENT AND POSITION WORKSPACE AS AN EMPLOYER OF CHOICE	Achieved
SKILLS AND EMPLOYMENT	ENABLE PEOPLE IN NEED TO BUILD BRIGHTER FUTURES THROUGH TAILORED SKILLS AND EMPLOYMENT PROGRAMMES	Achieved

This year we rolled out an enhanced wellbeing programme for our employees and customers. We facilitated over 20 employee wellbeing events, over 160 employees utilised our health cashback offering, with a total claims value of £12.2k. We also delivered 106 employee hours of mental health training. We received an average employee wellbeing score of 66%, based on our annual employee survey, matching the benchmark for similar sized companies. Our focus this year for customers was on enhancing our wellbeing offering, focusing on hands on experiences. We hosted over 70 sessions including sketch workshops and terrarium building, benefitting over 2,200 customers, and with an average feedback score of 4.9/5.

We continue to monitor and benchmark our workforce diversity metrics twice a year, confirming that we remain closely aligned with the demographic profile of London. A breakdown showing the number of directors, senior managers and all employees by gender is set out on page 166. We recently published our third Gender Pay Gap Report accompanied by a clear action plan. In addition, we delivered 728 hours of diversity training to employees across the organisation.

Inclusive recruitment and career pathways continued to be a key focus for us this year, enabling us to promote social mobility. See case study on page 20. Throughout the year we celebrated 11 different cultural events (eg. Eid, Diwali) and continued our internal network for employees with caring responsibilities. We started our cross-department Diversity Action Group, aiming to drive the diversity and inclusion agenda forward (see detail on page 171). We were also pleased to receive an inclusivity score of 86% in our recent employee survey.

We supported over 10 employees to complete accredited training, such as the Chartered Institute of Personnel and Development and the National Examination Board in Occupational Safety and Health. We also delivered various personal and professional development training sessions, such as a customer service and conflict resolution session. In total we delivered over 4,350 employee hours of professional training (women – 2,693 hours and men – 1,657 hours). We supported 10 employees in their career progression, through our in-house career pathways programme. Out of a total 31 internal promotions this year, 23 were awarded to women. We formed a working group on positioning Workspace as an employer of choice, the group agreed on key targets and conducted a benefits review to ensure our offering remains competitive. Feedback from new recruits has also been implemented to ensure we are meeting expectations on recruitment and onboarding. These initiatives supported us in maintaining a low employee attrition rate of 13%, compared to a benchmark of 28% for businesses of a similar size.

We supported 16 apprenticeships through our programme (15 existing employees and one new recruit). We employed 13 people from Not in Employment, Education or Training ('NEET') backgrounds to work part-time in the Workspace cafés through Sapphire, a specialist recruitment consultancy working with people who have barriers to employment. 12 employees supported 12 pupils from under-privileged backgrounds and completed a total of 68 hours of career coaching as part of a mentorship programme with Future Frontiers. We also hosted 15 pupils for meaningful work experience. See case study on page 58. Throughout the year, we maintained active engagement with our suppliers to promote employment opportunities. We’re pleased to report that four of our suppliers hired a total of 12 apprentices, all of whom gained valuable practical skills and experience by working on Workspace contracts.

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ADDRESSING OUR MATERIAL SOCIAL ISSUES: LOOKING AFTER OUR PEOPLE

DRIVING POSITIVE SOCIAL IMPACT

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SUSTAINABILITY PERFORMANCE CONTINUED

Relevant material issue	Workspace response	Status
CUSTOMER ENGAGEMENT	UPSKILL AND ENGAGE OUR CUSTOMERS TO DRIVE GREATER SUSTAINABLE BEHAVIOURS	Achieved
ETHICS, CONDUCT AND COMPLIANCE
SUSTAINABLE PROCUREMENT	AMPLIFY SOCIAL IMPACT IN COLLABORATION WITH OUR SUPPLIERS	Achieved

We rolled-out a multifaceted customer engagement programme, helping raise awareness of sustainability issues through newsletters, social media, building installations, events and campaigns (see case study on page 17). We hosted eight customer events on sustainability skills, reaching over 60 customers. We also continued our series of sustainability suppers, see more in case study on the right. We are pleased to say that over 84% of our customers agree that Workspace is environmentally and socially responsible. This represents an increase of more than 5% compared to last year.

84% CUSTOMER ESG SCORE

Workspace are an accredited Living Wage employer and 100% of our employees and contractors are paid London Living Wage levels. We conduct an independent verification of our compliance with Real London Living Wage requirements. Workspace’s Supplier Code of Conduct is mandated across all contracts and is formally included in our supplier on-boarding procedure. To drive social impact, Workspace partners with suppliers to gather data and set goals to maximise impact through apprenticeships, local hires, and professional training on Workspace contracts. For instance, Our cleaning partner supports the local economy by employing 144 operatives who live near our centres.

100% OF EMPLOYEES AND CONTRACTORS ARE PAID A LIVING WAGE

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ADDRESSING OUR MATERIAL SOCIAL ISSUES: LOOKING AFTER OUR PEOPLE CONTINUED

This year we continued our sustainability themed supper clubs. We hosted two supper clubs, one about fashion and one about food. The fashion themed supper brought together 40 customers from fashion and creative industries to reflect on The Fashion Revolution Movement, created after the Rana Plaza Disaster in 2013. Eliza Batten, co-founder of the Cirkel, who are based at Workspace's Shepherds Building, gave a key note speech about the rise of the second-hand economy, and sparked discussion around the challenges of our fashion system and ways to solve them including increasing wears per item and championing second-hand clothing. The sustainable food supper brought together 30 customers from the food, beverage and hospitality sectors. The discussion explored how small changes within the circular economy – where resources are reused and waste minimised – can have a huge impact on businesses reducing their waste and carbon footprints. I loved seeing our customers engaging in such a lively, stimulating and meaningful discussion. The evening was very solution-oriented and great connections were made.# Mel Gooding Sustainability Manager 5/5 EVENT RATING FROM CUSTOMERS

CASE STUDY: SUSTAINABLE SUPPER CLUB

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CASE STUDY: INSPIRESME

Relevant material issue SKILLS AND EMPLOYMENT

Relevant material issue SKILLS AND EMPLOYMENT

Workspace response	Workspace response
RUN OUR COMMUNITY SKILLS AND EMPLOYMENT PROGRAMME, INSPIRESME, ACROSS TWELVE CENTRES	WORK IN PARTNERSHIP WITH SHP TO PREVENT HOMELESSNESS IN LONDON
Status: Partially Achieved	Status: Achieved
We successfully delivered InspiresMe, our community skills and employment programme, in partnership with our customers and local schools, across 11 centres, spanning across various London boroughs. Over 200 students were reached through our CV workshops, career sessions and five students completed work placements. A total of 13 customers participated in the InspiresMe programme. The responses from school partners and customers were extremely positive with 100% of the schools who took part agreeing they were keen to continue with this initiative next year. See case study to the right of this page.	We raised over £27,000 for Single Homeless Project (SHP) and also provided funding for the hiring of their full-time employability coordinator. Our support benefitted 1,210 vulnerable people. This year, we had a total of2,578 employee volunteering hours. 1,250of these volunteering hours were spentsupporting SHP throughout the year. This involved refreshing four youth hostels. Our support helped SHP to directly support 851 people during Christmas, a time that can be very isolating.
100% OF SCHOOLS WHO TOOK PART WOULD CONTINUE NEXT YEAR	EMPLOYEE VOLUNTEERING HOURS
	2025 2,578
	2024 1,560
	2023 620

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DRIVING POSITIVE SOCIAL IMPACT

SUSTAINABILITY PERFORMANCE CONTINUED

Third year of InspiresMe

This year we further expanded the InspiresMe programme, our community outreach programme focused on skills and employment. The aim of the programme is to work alongside our customers to provide inspiration, knowledge, support, and experience to young individuals in our communities who are most at risk of becoming NEET and help them to reach their full potential. Through InspiresMe, we facilitate partnerships between local schools and our customers to improve employability skills of under-privileged Londoners. The programme spanned across 11 of our centres. This year we facilitated work placements, CV workshops, speed networking and brought our customers tocareer fairs to equip students with the necessary tools for success and to inspire them. In the last 12 months, we reached over 200 students through collaborative efforts with 13 of our customers.

ADDRESSING OUR MATERIAL SOCIAL ISSUES: SUPPORTING OUR COMMUNITIES

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Relevant material issue CHARITABLE AND COMMUNITY SUPPORT

Relevant material issue CHARITABLE AND COMMUNITY SUPPORT

Workspace response	Workspace response
IMPLEMENT A PLACE-BASED SOCIAL IMPACT INITIATIVE ACROSS ALL CLUSTERS	SUPPORT CHARITIES AND VOLUNTARY, COMMUNITY AND SOCIAL ENTERPRISES (VCSE) THROUGH OUR LETTINGS IN KIND OFFERING
Status: Achieved	Status: Achieved
All 22 clusters, groups of closely located Workspace centres, covering 67 sites, ran either the InspiresMe or a place-based social impact initiative. These initiatives were led by the Centre Managers. Place-based initiatives are a partnership with a local charity or community-oriented organisation. These ranged from sports charities to business improvement districts, from homeless charities to local food kitchens. We supported these initiatives in a range of ways from putting on fundraising events to giving them space for free to host events. Overall, our centre teams volunteered over 600 hours to support charity and community organisations. We also partnered with local organisations to run 42 food bank drives, collecting over 240 tonnes of food.	Workspace provided £299.5k worth of lettings and meeting room bookings as in-kind support to various charities. These charitable organisations are dedicated to a wide array of causes, including homelessness, health, justice, and emergency aid.
240tonnes FOOD DONATIONS	£299.5k IN-KIND SUPPORT

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ADDRESSING OUR MATERIAL SOCIAL ISSUES: SUPPORTING OUR COMMUNITIES CONTINUED

SUSTAINABILITY PERFORMANCE CONTINUED

CASE STUDY: WELLBEING SUPPORT FOR LOCAL COMMUNITIES

CASE STUDY: SUPPORTING FLEET STREET QUARTER

We partnered with Southwark Council to host health screening stations at two of our buildings, aiming to raise awareness of preventative care within local communities. Over the course of seven weeks, 267 individuals accessed the facilities to check key vital indicators and gain insights into their health. In addition, we held a Workspace Wellbeing Fair at two of our West London locations – Barley Mow and The Mille. Delivered in collaboration with local health experts and practitioners, the fair welcomed over 130 attendees. The event received highly positive feedback and served as a valuable platform to raise awareness of health and wellbeing, while also strengthening community connections by opening our doors and encouraging local community participation.

Over the past year, our Fleet Street site has built a strong partnership with the Fleet Street Quarter (FSQ), the local Business Improvement District. As part of this collaboration, we regularly provided event space to support FSQ in its mission to revitalise the area as a vibrant destination for businesses, residents, and visitors. More than 60 members of the local community attended events hosted at our Fleet Street location. Additionally, this partnership has benefited our customers, who have received discounts to attend local events organised by FSQ. One recent example includes discounted access to FSQ’s literacy events programme, further strengthening community ties and enhancing customer benefits.

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SUSTAINABILITY PERFORMANCE CONTINUED

SOCIAL VALUE GENERATED BY WORKSPACE FY2024/25

This is our third year partnering with Social Value Portal to quantify our social value creation. The National Themes, Outcomes and Measures (TOMs) Framework has been used to calculate the financial value associated with each of our initiatives, which is deemed ‘additional’ to business as usual. The table provides a breakdown of various initiatives and social value created by our business activities. A significant proportion of our social value contribution comes from tailored engagement with the beneficiaries which we believe delivers long lasting impact. In addition to our direct social value contribution, we have also calculated the indirect value generated through our collaboration with our suppliers and customers. We have also included our indirect value calculations from our development project, Chocolate Factory.

Strategic focus	Impact beneficiaries	Impact themes	Social initiatives generating direct value	Social initiatives generating indirect value	Direct/indirect impact breakdown
LOOKING AFTER OUR PEOPLE	– Employees	RESPONSIBLE AND INCLUSIVE PRACTICES	DIRECT £422.9k	INDIRECT £14.8m
	– Customers		£73.49k delivered through EDI training – 211 employees received EDI training, 41 received unconscious bias training and 46 received anti-harassment training	£869 delivered through funding 67 weeks of further studies for employees
	– Suppliers		£300.38k delivered through spend with VCSE or hyper-local organisations	£48.17k delivered through upskilling programmes for customers
	– Community			£14.77m delivered through construction spend with local organisations
	– Charity			£49.7k delivered through training
				£270 delivered through recycling specific items
EMPLOYMENT AND SKILLS			DIRECT £39.7k	INDIRECT £6.9m
			£2.12k delivered through 22 weeks of work placement supported by Workspace	£11.64k delivered through 384 weeks of existing apprenticeships training
			£3.14k delivered through 10.1 weeks of new apprenticeships training	£3.14k delivered through 10.1 weeks of new apprenticeships training
			£22.8k delivered through 808 hours of employment for people who were previously Not in Employment, Education, or Training	£162.3k delivered through 537 weeks of apprenticeships
				£6.69m delivered through hiring or retaining 138 local people
				£52k delivered through hiring individuals with disabilities
SUPPORTING OUR COMMUNITIES WELLBEING			DIRECT £140.7k	INDIRECT £6.7k
			£94.54k delivered through investment in wellbeing offering for customers	£6.67k delivered through our building contractors having access to a comprehensive wellbeing programme
			£10.98k delivered through investment in wellbeing campaigns for staff
			£35.2k delivered through all employees having access to a comprehensive wellbeing programme
CHARITY AND COMMUNITY SUPPORT			DIRECT £422.3k	INDIRECT £1.4k
			£41.36k delivered through 389 hours of skilled volunteering	£474 delivered through our building contractor delivering 28 hours of volunteering in local schools
			£27.4k delivered through 1,568 hours of unskilled volunteering	£950 delivered through in-kind donations to local community projects
			£10.84k delivered through centre teams contributing 621 hours to support the local community projects
			£342.73k delivered through total in-kind contributions, including in-kind lettings, to local charities
					DIRECT £1.02m INDIRECT £21.7m

85 Workspace Group PLC Annual Report and Accounts 2025

Strategic Report

Our Governance

Financial Statements

Additional Information

Risk management is an integral part of all Workspace activities. Our culture drives us to consider the risks and opportunities of any new business decision.We focus on key risks which could impact the achievement of our strategic goals and therefore the performance of our business. Risks are considered at every level of the business including when approving corporate transactions, property acquisitions and disposals and whenever undertaking refurbishment and redevelopment projects. We have created a positive culture within Workspace which encourages open communication and engagement. This enables staff from all areas of the business to feel free to raise risks or opportunities, no matter how small, to their managers and teams. This culture means that information is communicated across the business well. We make every effort to engage staff with risk-related issues, particularly those which are new and emerging so that we are managing our lower-level risks as well as the more strategic ones. The Board assesses and monitors the principal risks of the business and considers how these risks could best be mitigated, where possible, through a combination of internal controls and risk management.

EMERGING RISKS

Emerging risks are discussed monthly and are promptly escalated to the Board as required. Emerging risks considered during the year included insolvency of large construction companies, geopolitics including political changes in the US, the Employment Rights Bill and budget changes to national insurance, the ongoing war and instability in Ukraine and the Middle East, an increasing number of our large customers vacating units, the macroeconomic environment, such as inflation, interest rate expectations and the potential impact on property valuations and operating performance.

FINANCIAL POSITION

The Group continued to control costs and manage capital expenditure to protect its strong financial position. Management regularly reviewed performance reports and forecasts to understand the impact on cash flows and debt covenants. During the year we refinanced £135m of our bank debt facilities out to November 2028 and the remaining £200m of bank debt facilities by a further 12 months to December 2026. We also took out an £80m term loan with two of our syndicate banks to cover the repayment of the £80m private placement maturing in August 2025 with no further material debt maturities until August 2027. In May 2025, the £200m bank debt facility was refinanced out to June 2029, further extending our average debt maturity. As of 31 March 2025, the Group had cash and undrawn credit facilities of £260m along with substantial headroom on its financial covenants and met all loan covenants throughout the year.

EMPLOYEES

Employee health, safety and wellbeing remains a top priority. For the majority of our employees, we are able to offer a flexible working environment to enable a healthy work-life balance alongside a competitive benefits package for all.

CLIMATE CHANGE

Workspace recognises that climate change is having, and will continue to have an increasing impact on our business. Similar to other owners of real estate, our properties are at risk from physical climate-related issues including changes in temperature extremes leading to increased cooling and heating loads, changes in precipitation leading to flash flooding, and physical damage to buildings from extreme weather events, which in turn can lead to greater stresses on our properties. It is now widely recognised that climate change issues present a financial risk to the global economy. To improve transparency, the Task Force on Climate-related Financial Disclosures ('TCFD') framework sets out recommendations and recommended disclosures for reporting on climate-related financial risks and opportunities. The Group’s TCFD disclosures can be found on pages 99 to 106. The TCFD framework includes risk management. The Head of Sustainability manages a separate risk register for climate change-related risks. Details of the risks considered are provided on pages 104 to 105. The Taskforce on Nature-related Financial Disclosures ('TNFD') framework sets out recommendations and guidance on disclosures for reporting on nature-related financial risks and opportunities. The Group's first TNFD disclosures can be found pages 112 to 117. The financial year has seen continued risks to the UK economy with political instability, inflation and the ongoing disruption from tariffs weakening consumer confidence and leaving macroeconomic conditions challenging. This has led to softer demand and coincided with an increasing supply of flexible space across London which means the challenges we face are intensifying. Overall however, key risks that could affect the Group’s medium-term performance and the factors that mitigate these risks have not materially changed from those set out in the Group’s Annual Report and Accounts 2024. As a business, we are also at risk from the transition to a net zero carbon economy in the form of increasing regulation and changes in customer demand. We are actively managing our climate change risk and have put in place mitigation measures for the most material impacts. We have included Taskforce on Climate-related Financial Disclosures (TCFD) in the Annual Report on pages 99 to 106 as well as Taskforce on Nature-related Financial Disclosures (TNFD) which can be found on pages 112 to 117. Further details of the risk management framework can be found on page 185.

PRINCIPAL RISKS AND UNCERTAINTIES

PRINCIPAL RISKS

KEY:
PRINCIPAL RISKS	Page
Customer demand	88
Financing	88
Valuation	89
Acquisition pricing	89
Customer payment default	90
Cyber security	90
Resourcing	91
Third-party relationships	92
Regulatory	92
Climate change	93

PROBABILITY SCALE

LIKELIHOOD
Probable	>80%
Possible	50-79%
Low	21-49%
Unlikely	<20%

PROBABILITY (POST-MITIGATION)

	Probable	Unlikely	Possible	Low
IMPACT	Severe
1	2	3	4	5

Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

86

PRINCIPAL RISKS AND UNCERTAINTIES CONTINUED

HOW WE EVALUATE RISK

Risk is measured by using impact and probability within a five-year period. Principal risks are identified and then mapped on the risk matrix. The low, moderate, high risk severity score is determined using the following calculation: Impact x Impact x Probability, which provides a weighted impact scoring. The impact is determined on a scale from 1 (low) to 4 (severe) based on revenue, property valuation, health and safety and reputational consequences. Probability is determined on a scale from 1 (unlikely) to 4 (probable), considering the likelihood of the risk materialising within a five-year period. There has been no significant changes to the principal risks this year. The principal risks are reviewed in detail bi-annually.

IMPACT CRITERIA

IMPACT
1 – LOW	2 – MEDIUM	3 – HIGH	4 – SEVERE
Revenue/Cash
Revenue <£2m Cash <£1m	Revenue £2m-£15m Cash £1m-£5m	Revenue £15m-£25m Cash £5m-£15m	Revenue >£25m Cash >£15m
Property valuation	<2% unexpected reduction	2-5% unexpected reduction	5-10% unexpected reduction
Hazard/Health & Safety	Minor injury/first aid required	Minor reportable injury/ RIDDOR report required	Major reportable injury
Reputational	Third-party communications with no lasting impact on reputation	Adverse local media attention which could lead to a small number of complaints and damage the brand locally	Adverse national publicity resulting in short-term damage to public and/or political confidence

87

Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

IMPACT

Severe
PROBABILITY (POST-MITIGATION)	Unlikely

CHANGE FROM LAST YEAR

No change, with the risk impact from inflation and interest rate rises lower than last year but still remaining elevated compared to recent history

RISK APPETITE

Low

LINK TO STRATEGY

1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities
3. Innovate to create future options

RELEVANT KPIS

• Financial
  • 1. Trading profit after interest
  • 1. Dividend per share
  • 1. Total shareholder return

Principal risk

There may be a reduction in the availability of long-term financing due to an economic recession, which may result in an inability to grow the business and impact Workspace’s ability to deliver services to customers.

• Risk impact – Inability to fund business plans and invest in new opportunities – Increased interest costs as we refinance long term fixed debt – Negative reputational impact amongst lenders and in the investment community
• Mitigation – We regularly review funding requirements for business plans, and we have a wide range of options to fund our forthcoming plans. We also prepare a five-year business plan which is reviewed and updated annually. Further detail is provided in the Viability Statement on pages 94 and 95 – We have a broad range of funding relationships in place and regularly review our refinancing strategy – We maintain a specific interest rate profile via the use of fixed rates on the majority of our debt facilities so that our interest payment profile is broadly stable.# PRINCIPAL RISKS AND UNCERTAINTIES CONTINUED

IMPACT Severe

PROBABILITY (POST-MITIGATION) Possible

CHANGE FROM LAST YEAR No change

RISK APPETITE Medium

LINK TO STRATEGY

1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities

RELEVANT KPIS

• Financial
  1. Net rental income
  2. Trading profit after interest
  3. Like-for-like rent roll growth
  4. Like-for-like occupancy
  5. Property valuation
  6. Total property return
• Non-financial
  1. Customer enquiries
  2. Viewings
  3. Lettings
  4. Renewals

Principal risk

Opportunities for growth could be missed without a clearly differentiated brand positioning strategy and products to meet the evolving demands of target customers. Macroeconomic factors including political instability and geopolitical tensions, weak economic growth, inflationary pressures, and higher interest rates as well as increased supply of flexible space, could also impact our customers.

• Risk impact
  • Fall in occupancy levels at our properties
  • Reduction in rent roll
  • Reduction in property valuation
• Mitigation
  • Broad mix of buildings across London with different space offerings, at various price points to match customer requirements
  • Pipeline of refurbishment and redevelopments to further enhance the portfolio
  • Enhanced market insight, segmentation, data and reporting to track customer trends, optimise sales performance and develop new propositions
  • Increased accountability for centre staff to maintain ongoing relationships with our customers, understand their requirements and implement change to meet their needs
  • Business plans are stress tested to assess the sensitivity of forecasts to reduced levels of demand and implement contingency measures
  • Targeted marketing creates demand for Workspace and drives conversion to viewings, with advertising content and messaging regularly reviewed and updated

CUSTOMER DEMAND

IMPACT High

PROBABILITY (POST-MITIGATION) Possible

CHANGE FROM LAST YEAR No change

RISK APPETITE Medium

LINK TO STRATEGY

1. Transform and prepare for emerging opportunities
2. Innovate to create future options

RELEVANT KPIS

• Financial
  1. EPRA NTA per share
  2. Property valuation
  3. Total property return
  4. Total shareholder return

Principal risk

Inadequate appraisal and due diligence of a new acquisition could lead to paying above market price leading to a negative impact on valuation and rental income targets.

• Risk impact
  • Negative impact on valuation
  • Impact on overall shareholder return
• Mitigation
• We have an acquisition strategy determining key criteria such as location, size and potential for growth. These criteria are based on the many years of knowledge and understanding of our market and customer demand
• A detailed appraisal is prepared for each acquisition and is presented to the Investment Committee for challenge and discussion prior to authorisation by the Board. The acquisition is then subject to thorough due diligence prior to completion, including capital expenditure and risks associated with ESG concerns
  • Workspace will only make acquisitions that are expected to yield a minimum return and will not knowingly overpay for an asset
  • We undertake appropriate property, financial and tax due diligence including a review of ESG when required

ACQUISITION PRICING

IMPACT High

PROBABILITY (POST-MITIGATION) Possible

CHANGE FROM LAST YEAR No change, with the risk impact from inflation and interest rate rises lower than last year but still remaining elevated compared to recent history

RISK APPETITE Medium

LINK TO STRATEGY

1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities
3. Innovate to create future options

RELEVANT KPIS

• Financial
  1. EPRA NTA per share
  2. Like-for-like rent roll growth
  3. Property valuation
  4. Total property return
  5. Total shareholder return

Principal risk

Macroeconomic uncertainty, reductions in occupancy or pricing, or failure to meet ESG legislation targets could have an impact on asset valuations. With a decrease in net income and ERV and an increase in property yield, valuations fall. This may result in a reduction in return on investment and negative impact on covenant testing.

• Risk impact
  • Financing covenants linked to loan to value (‘LTV’) ratio
  • Impact on share price
• Mitigation
• Market-related valuation risk is largely dependent on independent, external factors. We maintain a conservative LTV ratio which can withstand a severe decline in property values without covenant breaches
• We monitor changes in sentiment in the London real estate market, yields and pricing to track possible changes in valuation. CBRE, a leading full-service real estate services and investment organisation, provides twice yearly independent valuations of all our properties
  • We manage and invest in our properties, planning and undertaking upgrades where necessary, to ensure they are compliant with current Minimum Energy Efficiency Standards ('MEES') for EPCs
  • Alternative use opportunities, including mixed-use developments, are actively pursued across the portfolio

VALUATION

IMPACT High

PROBABILITY (POST-MITIGATION) Possible

CHANGE FROM LAST YEAR No change

Principal risk

A cyber attack could lead to a loss of access to Workspace systems or a network disruption for a prolonged period of time. This could damage Workspace’s reputation and inhibit our ability to run the business.

• Risk impact
  • Inability to process new leases and invoice customers
  • Reputational damage
  • Increased operational costs
• Mitigation
• Cyber security risk is managed using a mitigation framework comprising network security, IT security policies and third-party risk assessments. Controls are regularly reviewed and updated and include technology such as next-generation firewalls, multi-layered access control through to people solutions such as user awareness training, mock-phishing emails and cyber attack simulations
  • Assurance over the framework’s performance is gained through an independent maturity assessment, penetration testing and network vulnerability testing, all performed annually
• We are committed to continue the adoption of the NIST Cybersecurity Framework to enhance our cyber security maturity. This adoption will strengthen risk management, improve controls, fortify incident response, and ensure consistent protection and recovery, validated through external independent assessments

CYBER SECURITY

RISK APPETITE Low

LINK TO STRATEGY

1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities

RELEVANT KPIS

• Financial
  1. Trading profit after interest
  2. Dividend per share
  3. Total property return
  4. Total shareholder return
• Non-financial
  1. Customer enquiries
  2. Lettings
  3. Renewals

IMPACT High

PROBABILITY (POST-MITIGATION) Possible

CHANGE FROM LAST YEAR No change

RISK APPETITE Low

LINK TO STRATEGY

1. Enhance and expand the core business

RELEVANT KPIS

• Financial
  1. Net rental income
  2. Trading profit after interest
  3. Dividend per share
  4. Total property return
  5. Total shareholder return

Principal risk

Uncertainty remains around the macroeconomic environment. Although inflation and interest rates have reduced during the period, given the broader geopolitical climate and recent increases to living wage and national insurance costs, there remains a risk of an economic downturn which could put pressure on rent collection figures.

• Risk impact
  • Negative cash flow and increasing interest costs
  • Breach of financial covenants
• Mitigation
  • Rent collection and customer payment levels have remained strong throughout the year, however, the economic environment remains challenging
• The risk continues to be mitigated by strong credit control processes and an experienced team of credit controllers, able to make quick decisions and negotiate with customers for payment. In addition, we hold a three-month deposit for the majority of customers
  • Centre staff maintain relationships with customers and can identify early signs of potential issues

CUSTOMER PAYMENT DEFAULT

IMPACT High

PROBABILITY (POST-MITIGATION) Low

CHANGE FROM LAST YEAR No change

Principal risk

Ineffective succession planning, recruitment and people management could lead to limited resourcing levels and a shortage of suitably skilled individuals to be able to achieve Workspace objectives and grow the business. Inadequate resourcing may also result in management being spread too thinly and a decline in effectiveness.# PRINCIPAL RISKS AND UNCERTAINTIES CONTINUED

RESOURCING

RISK APPETITE Medium
LINK TO STRATEGY
1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities
3. Innovate to create future options

RELEVANT KPIS
Financial
1. Net rental income
2. Trading profit after interest
4. Dividend per share
5. Like-for-like rent roll growth
6. Like-for-like occupancy
8. Total property return
9. Total shareholder return

Non-financial
1. Customer enquiries
2. Viewings
3. Lettings
4. Renewals
9. Inclusivity score

Mitigation
– We have a robust recruitment process to attract new joiners and established interview and evaluation processes with a view to ensuring a good fit with the required skill set and our corporate culture
– We have diversified our recruitment pools, including the launch of a new apprenticeship programme to ensure we have a diverse talent pool
– Various incentive schemes align employee objectives with the strategic objectives of the Group to motivate employees to work in the best interests of the Group and its stakeholders. This is supported by a formal appraisal and review process for all employees
– Our HR and People teams run a broad training and development programme designed to ensure employees are supported and encouraged to progress with learning and study opportunities
– We have an in-house Recruitment Manager who oversees the entire recruitment process and ensures that we have a diverse and wide-ranging talent pool
– The HR team utilises a candidate applicant tracking system to track the source of applications. This allows us to manage the process better and diversify our talent from various application sources. At the same time, we have revised our internal application process for existing employees with 31 individuals being internally promoted during this period and 63% of new starters being recruited directly without recruitment agencies

Risk impact
– Increased costs from high staff turnover
– Delay in growth plans
– Reputational damage

IMPACT High
PROBABILITY (POST-MITIGATION) Low
CHANGE FROM LAST YEAR No change

THIRD-PARTY RELATIONSHIPS

RISK APPETITE Medium
LINK TO STRATEGY
1. Enhance and expand the core business
3. Innovate to create future options

RELEVANT KPIS
Financial
1. Net rental income
2. Trading profit after interest
4. Dividend per share
5. Like-for-like rent roll growth
6. Like-for-like occupancy
8. Total property return
9. Total shareholder return

Non-financial
3. Lettings
4. Renewals

Mitigation
– Workspace has a robust tender and selection process for key contractors and partners. Contracts contain service-level agreements that are monitored regularly, and actions are taken in the case of underperformance
– For key services, Workspace maintains relationships with alternative providers so that other solutions would be available if the main contractor or third party was unable to continue providing their services. Processes are in place to identify key suppliers and understand any specific risks that require further mitigation
– Workspace remains committed to being London Living Wage compliant for all service providers to support our commitment to Health and Safety throughout the business

Principal risk
Poor performance from one of Workspace’s key contractors or third-party partners could result in an interruption to or reduction in the quality of our service offering to customers or could lead to significant disruptions and delays in any refurbishment or redevelopment projects.

Risk impact
– Decline in customer confidence
– Increased project or operational costs
– Fall in customer demand
– Weaker cash flow
– Reputational damage

IMPACT Medium
PROBABILITY (POST-MITIGATION) Low
CHANGE FROM LAST YEAR No change

REGULATORY

RISK APPETITE Low
LINK TO STRATEGY
1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities
3. Innovate to create future options

RELEVANT KPIS
Financial
2. Trading profit after interest
4. Dividend per share
7. Property valuation
9. Total shareholder return

Non-financial
3. Lettings
4. Renewals

Mitigation
– Health and safety is one of our primary concerns, and strong leadership promotes a culture of awareness throughout the business. We have well-developed policies and procedures in place to help ensure that any workers, employees, or visitors on site comply with strict safety guidelines, and we work with well-respected suppliers who share our high-quality standards in health and safety. This year saw the recruitment of a new role (Health and Safety Manager)
– Health and safety management systems are updated in line with changing regulations and regular audits are undertaken to identify any potential improvements
– Sustainability requirements are becoming increasingly important for the Group, and we take this responsibility seriously. We have committed to becoming a net zero carbon business and being climate resilient. We undertake an annual review of all ESG regulations and our policies and procedures to ensure compliance. We also closely monitor and manage physical risk arising from climate change, with details of our mitigation strategy provided on pages 104 to 105
– Workspace has a robust legal framework in place, managed by the Company Secretary and Head of Legal, to ensure full compliance with applicable laws, regulations, and corporate governance

Principal risk
A failure to keep up to date and plan for changing regulations in key areas such as health and safety and sustainability, could lead to fines or reputational damage.

Risk impact
– Increased costs
– Reputational damage

IMPACT Medium
PROBABILITY (POST-MITIGATION) Possible
CHANGE FROM LAST YEAR No change

CLIMATE CHANGE

RISK APPETITE Low
LINK TO STRATEGY
2. Transform and prepare for emerging opportunities

RELEVANT KPIS
Financial
1. Net rental income
2. Trading profit after interest
7. Property valuation
8. Total property return

Non-financial
3. Lettings
5. Emissions reduction
6. EPC A/B rated portfolio
7. Customer ESG score

Mitigation
The inherent risk from climate change is universal, with a high likelihood of risk materialising in the near future resulting in a potentially material impact on businesses in general. For Workspace, our risk is lower when compared to many other real estate businesses, in particular our exposure to physical risk. However, transition risk is an industry-wide risk and is impacting all real estate businesses due to the environmental impact associated with the sector. As a result, the regulatory requirements continue to become more stringent. In response to this, Workspace has been proactively managing its risk exposure. Our mitigation strategy includes:
– Periodic assessment of our climate risk exposure, using climate modelling every time the portfolio changes
– Bi-annual review of control measures and their effectiveness by our Risk Management Group and the Environmental Committee
– Active management of acute physical risks such as floods and storms across the portfolio through emergency preparedness, site maintenance surveys and business continuity planning
– Delivery of net zero carbon and EPC upgrades across the portfolio to manage transition risk
– Embedding of climate-related objectives linked with remuneration, to incentivise focused action
– Active management of our energy and raw materials costs via efficiency measures and design optimisation

Principal risk
Failure to recognise that climate change presents a financial risk to our business, alongside our customers’ increasing expectations for the sustainable operation of our properties, could have a significant impact on the business.

Risk impact
– Loss of rent roll
– Negative impact on value
– Reduced occupancy levels
– Reputational damage

IMPACT Medium
PROBABILITY (POST-MITIGATION) Possible
CHANGE FROM LAST YEAR No change

---

COMPLIANCE STATEMENTS

Assessment of prospects

The Group assesses its prospects primarily through the annual strategic review process. This includes an assessment of the macroeconomic environment, consideration of the Group’s principal risks and a review of the Group’s five-year plan. Particular attention is given to existing refurbishment and redevelopment commitments, long-term financing arrangements, compliance with financing and REIT covenants and key financial metrics of the business. The most recent strategy day was held in September 2024. An updated business plan for the five years to 31 March 2030 was reviewed by the Board in April 2025.

Macroeconomic and geo-political issues, including the impact of US tariffs on UK business, persistent higher levels of inflation and slow growth continue to give rise to concerns around the UK economy meaning there is continuing risk of an economic downturn. Consideration has been given to a number of downside assumptions covering the period to 31 March 2030. We have modelled a severe, yet plausible downside scenario based on the following key assumptions:

– A stalling of the UK economy, with low levels of GDP growth and inflationary pressure, resulting in a reduction in customer demand over the next two years, compared to current levels
– Like-for-like occupancy reduces by c.3% to 80% over the next 18 months, with associated increase in void costs and downward pressure on pricing of new lettings, and thereafter a gradual recovery to c.87% by 31 March 2030

The Group’s activities, strategy and performance are explained in the Strategic Report on pages 1 to 117.# GOING CONCERN VIABILITY STATEMENT

Workspace Group PLC Annual Report and Accounts 2025

Strategic Report

Our Governance

Financial Statements

Additional Information

Further detail on the financial performance and financial position of the Group is provided in the financial statements on pages 243 to 269. The Directors have conducted an extensive review of the appropriateness of adopting the Going Concern basis of accounting. More details can be found on page 246. Following this review and having made appropriate enquiries, the Directors have a reasonable expectation that the Group and the Company have adequate resources and sufficient headroom on the Group’s bank loan facilities to continue for at least the next twelve months. For this reason, the Directors believe that it is appropriate to continue to adopt the Going Concern basis in preparing the Group’s accounts.

– New lettings at below the average price per sq. ft. of vacating customers resulting in an overall reduction in average rent per sq. ft. until like-for-like occupancy levels recover to c.86%
– Elevated levels of counterparty risk, with bad debt significantly higher than pre-pandemic levels
– Elevated levels of cost inflation
– Increased SONIA rate impacting the cost of variable rate borrowings
– Estimated rental value reduction in-line with the decline in average rent per sq. ft. and outward movement in investment yields resulting in a lower property valuation

The Group’s activities, strategy and performance are explained in the Strategic Report on pages 1 to 117, including a description of the Group’s strategy and business model on pages 34 to 58 and 2 to 9.

Assessment of time period

The Board has selected a review period of five years for the following reasons:
a) The Group’s strategic review assesses a five-year forecast period
b) Our current project pipeline spans five years, covering the time for the currently planned major refurbishments and redevelopments to progress from initiation to completion
c) It covers the period to maturity for the majority of the Group’s committed facilities

Although financial performance is assessed over a period of five years, the strategy and business model are considered with the longer-term success of the Group in mind. The Directors believe they have no reason to expect a significant adverse change in the Group’s viability immediately following the end of the five-year assessment period.

Assessment of viability

The Board has considered the key risks and mitigating factors that could impact the Group, details of which can be found on pages 86 to 93. Those risks that could have an impact on the ongoing success of the Group’s strategy, particularly in light of the current geopolitical situation, were identified and the resilience of the Group to the impact of these risks in a severe, yet plausible downside scenario has been evaluated. Sensitivity analyses have been prepared to understand the impact of the identified risks on solvency and liquidity. The specific risks which were evaluated are shown in the following table.

SPECIFIC RISK

RISK CATEGORY	SENSITIVITY ANALYSIS
Demand for space falls dramatically impacting occupancy and pricing levels, or customer default increases leading to a breach of loan covenants – Customer demand	At the point in the scenario modelled where Interest Cover Rates (‘ICR’) is at its lowest, net rental income would need to decrease by 12% compared to the year to 31 March 2025. This represents a 12% reduction from the net rental income included in the severe scenario modelled.
Property values are adversely impacted by the uncertainty in the economy leading to a breach of covenants – Valuation	At the point in the scenario modelled that LTV is at its highest, the property valuation would need to fall by 37% to breach the covenant, compared to the valuation as at 31 March 2025 (adjusted for planned disposals).
Changes in the economic UK environment result in further increases in SONIA rates – Financing	At the point in the scenario modelled where ICR is at its lowest, SONIA rates would need to have increased by 350bps from March 2026 compared to 31 March 2025.
Changes in the economic and regulatory UK environment impact the availability and pricing of debt – Financing	The majority of the Group’s committed facilities will need to be refinanced during the viability assessment period. The Group has successfully completed £335m of debt refinancing over the last twelve months, has a low LTV of 34%, maintains good relationships with funders and is confident in its ability to refinance these facilities as they mature.

Risk sensitivity analyses

The Group benefits from a largely freehold property portfolio and a flexible business model that allows the business to adapt to the changing requirements of its customer base. This, coupled with a strong balance sheet, means the Company can withstand a significant downturn in the economy and demand. In the scenario tested, the most significant impact on the viability of the Group would be on liquidity headroom resulting from an inability to refinance existing debt facilities as they fall due. To mitigate this risk, the Group regularly reviews funding requirements and maintains a close relationship with existing and potential funding partners to facilitate the continuing availability of debt finance. The maturity of debt facilities is spread over a number of years to avoid a concentration of risk in one period and gearing is relatively low with LTV of 34% as at 31 March 2025. There are a number of mitigating factors that were not considered in the scenarios tested but which could be actioned if required:

– Additional asset disposals
– Cancellation or significant reduction in dividend
– Reduction in refurbishment capex programme

Conclusion

The sensitivity and stress analyses outlined above indicate that the Group will have adequate means to maintain headroom in its facilities and covenants to continue operations for the period under review. On this basis, the Directors have a reasonable expectation that the Group will be able to continue in operation and meet its liabilities as they fall due over the five-year period to 31 March 2030.

COMPLIANCE STATEMENTS CONTINUED

RISK SENSITIVITY ANALYSES

Workspace Group PLC Annual Report and Accounts 2025

Strategic Report

Our Governance

Financial Statements

Additional Information

As we have fewer than 500 employees, the non-financial and sustainability information statement (‘NFSIS’) requirements contained in Sections 414CA and 414CB of the Companies Act 2006 do not apply to us. However, due to our commitment to promoting transparency in our reporting and business practices, we have elected to provide further information in the table below. The time periods for reporting on the matters set out below have been informed by applicable law and prevailing market practice, taking into account the Group’s particular circumstances and the nature of its business. The description of our business model can be found on pages 2 to 9 and the description of our non-financial key performance indicators can be found on pages 62 to 64. Many of the policies referenced below can be found at: https://www.workspace.co.uk/investors/sustainability/our-policies.

POLICIES	OUTCOMES OF POLICIES AND IMPACTS OF ACTIVITIES RELATED PRINCIPAL RISKS (Pages 86 to 93)
CLIMATE AND ENVIRONMENTAL MATTERS – Environmental Policy – Climate Change Policy – Net zero carbon pathway – Green Finance Framework and allocation report – TCFD Report – pages 99 to 106 – TNFD Report – pages 112 to 117 – SECR disclosure – pages 107 to 109 – Climate and environmental activities during the year – pages 76 to 80 and 186 to 191 – Climate-related financial disclosures – pages 99 to 106	Risk 10 – Climate change
SOCIAL MATTERS – Social Impact Strategy – Real Living Wage Commitment – Social-related activities during the year – pages 81 to 85 – Social Impact programme – page 58	Social matters are not deemed to be a principal risk for the Group; however, we are continuing to focus on social matters through our Social Impact Strategy
EMPLOYEES – Employee Code of Conduct – Equal Opportunities and Dignity at Work Policy – Sexual Harassment Policy – Hybrid Working Policy – Parental Leave policies – Carer’s Leave Policy – Diversity and inclusion – pages 162 to 171 – Training & development – pages 20 and 168 – Employee wellbeing – page 81 – Employee engagement – pages 18 to 20 and 134 to 135	Risk 7 – Resourcing
HEALTH & SAFETY – Health & Safety Policy – Our Health and Safety Policy was formally reviewed in January 2025 – The Group’s Health & Safety Committee meets twice per year – The Board receives regular reports and reviews our health and safety processes at least annually, and the Executive Committee receives monthly reports – Workspace continues to invest in our Computer Aided Facilities Management (‘CAFM’) systems. All planned and reactive work is recorded in our CAFM system – We train our employees so that they are competent and confident to carry out their jobs in a safe and professional manner.

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POLICIES OUTCOMES OF POLICIES AND IMPACTS OF ACTIVITIES RELATED PRINCIPAL RISKS (Pages 86 to 93)

HUMAN RIGHTS AND MODERN SLAVERY

• Human Rights Policy
• Anti-Slavery Policy
• Modern Slavery Statement

• Supplier Code of Conduct

• We take a zero-tolerance approach to modern slavery and other breaches of fundamental human rights (as stated in the UN Universal Declaration of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work).

• No incidences of human rights abuse or modern slavery have been identified (2024: Nil).

Risk 7 – Resourcing Risk 8 – Third-Party Relationships Risk 9 – Regulatory

ANTI-BRIBERY AND CORRUPTION

• Anti-Bribery and Corruption Policy
• Gifts and Hospitality Policy
• Conflicts of Interest Policy
• Anti-facilitation of Tax Evasion Policy

• Supplier Code of Conduct

• We take a zero-tolerance approach to bribery and corruption and we are committed to implementing and to enforcing effective systems to counter bribery.

• No incidences of bribery or corruption have been identified (2024: Nil).
• All conflicts of interest are recorded on a central register and we have procedures in place for managing conflicts of interest.
• During the year, no Director had any beneficial interest in a contract significant to the Group’s business, other than contract of employment (2024: Nil).

Risk 9 – Regulatory

POLITICAL AND CHARITABLE DONATIONS AND EXPENDITURE

• Our policy is not to make any political donations or incur any political expenditure.
• We only make charitable donations that are legal and ethical.
• The Group did not make any political donations or incur any political expenditure during the year (2024: Nil).

Risk 9 – Regulatory

DATA PRIVACY

• Data Protection Policy
• CCTV Policy
• Data Breach Policy
• Subject Rights Policy

• Data Protection Impact Assessment Policy (‘DPIA’)

• Regular reports are provided to the Executive Committee and the Board.

• Mandatory data protection training is provided to all staff at induction and annual online refresher training is conducted via the learning management portal.
• More tailored, role-specific training is provided to staff where appropriate (for example, training for the marketing team on direct marketing rules).
• Data privacy is a key consideration whenever new projects are contemplated or changes to existing arrangements are proposed.

Risk 9 – Regulatory

WHISTLEBLOWING

• Whistleblowing Policy
• An open and transparent culture means any concerns are raised directly to the HR team or members of the Executive Committee.
• Employees also have access to a telephone line for anonymous reporting of concerns.
• During the year under review, we did not receive any whistleblowing messages to the telephone line (2024: Nil).
• The Board receives an annual update each year confirming the number of whistleblowing reports received (if any).

Risk 7 – Resourcing Risk 9 – Regulatory

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Workspace considers climate change to be a principal risk and a material issue. In line with the ‘Task Force on Climate-Related Financial Disclosures’ (‘TCFD’) recommendations, we have provided information to our stakeholders on our climate-related risks and opportunities, in turn helping them to make informed decisions. We have assessed our material climate risks and opportunities, and their potential impact using a number of climate change scenarios. This assessment has provided us with an in-depth view of the levels of risks across the portfolio and helped us test the resilience of our strategy. We also have a more robust understanding of the opportunities to Workspace, arising from the transition to a low-carbon economy. We have used the findings of this assessment to update our approach to risk management, implement a strategy to mitigate material risks and maximise the opportunity. Aligned to this is our net zero carbon target, which ensures we are closely managing our transition risks and building resilience.

The following section includes our climate-related financial disclosures for purposes of the UK Listing Rules, including details on climate change scenarios and how they may affect our business in the short, medium and long term. As required by the UK Listing Rules (UKLR 6.6.6R), we confirm that this report is consistent with all of the TCFD recommendations and recommended disclosures, taking into account Section C of the TCFD Annex entitled ‘Guidance for All Sectors’ and (where appropriate) Section E of the TCFD Annex entitled ‘Supplemental Guidance for Non-Financial Groups’.

| TCFD PILLAR AND RECOMMENDATION | RECOMMENDED DISCLOSURES | COMPLIANCE STATUS | PROGRESS TO DATE # TCFD

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The role of the Board

Our Chief Executive Officer has the highest level of responsibility for climate-related risks and opportunities and, together with the rest of the Workspace Board, ensures we maintain close oversight of climate-related issues. Climate-related issues are regularly considered by the Board as part of broader decision-making processes regarding strategy, risk management, budgeting, business planning and overseeing the Group’s performance objectives. To do this effectively, the Board has set up an ESG Committee comprising of all members of the Board – the Board Chair, the five independent Non-Executive Directors, the Chief Executive Officer and the Chief Financial Officer. The ESG Committee receives a detailed update on our sustainability and climate-related goals three times a year, from members of the Executive Committee and the Head of Sustainability.

During the year, the ESG Committee considered the following climate-related issues: approved the proposal to update net zero targets in line with latest SBTi guidance, approved interim emissions reduction milestones and inclusion of relevant KPIs as performance targets for Executive Directors, endorsed the launch of Leroy House as our first net zero building and reviewed the effectiveness of our climate-related policies. See page 189 for further details of climate- related responsibilities of the Board and its Committees (including the Audit and Remuneration Committees). The Board also received a technical briefing on three topics as part of the ongoing upskilling drive, including net zero carbon, nature and biodiversity and evolving sustainability legislative requirements.

Climate change risk and opportunity

As a responsible business, we consider climate-related risks and opportunities across our portfolio and business wide activities. We have identified the physical and transition risks arising from climate change and are committed to actively managing these risks. Due to the nature of our business model, Workspace is also in a position to capture several opportunities arising from the transition to a low-carbon economy.

Since 2022, we have worked with Willis Towers Watson (‘WTW’) to identify and assess the impact of climate-related risks through quantitative and qualitative scenario analysis, considering short (current, 2025), medium-term (2025-2030) and long-term (to 2050 and beyond) time horizons. These short-term and medium-term time horizons align with our portfolio strategy and financial planning. Our portfolio strategy categorises projects that are live and will be completed in the short term (1 year) and a medium-term development pipeline that extends out to 2030. We accordingly do our budgeting for short and medium term. Aligned to this strategy, we are aiming to decarbonise our portfolio by 2030, where feasible. Anything beyond 2030 is considered long term given the regulatory and market uncertainty involved.

The assessment we have conducted is based on two pre-defined climate scenarios – a 4°C global temperature rise scenario in line with the Intergovernmental Panel on Climate Change (‘IPCC’) Representative Concentration Pathway (‘RCP 8.5’) and a 1.5°C global temperature rise scenario in line with RCP 2.6.

Climate risk remained a principal business risk this year and the Board reviewed the mitigation strategy and effectiveness of controls as part of the principal risk register review. This information is provided to the Board and the Executive Committee via the Risk Management Group, comprising of senior members from different parts of the business. The Risk Management Group meets monthly and is responsible for monitoring and implementing risk management activities, including climate risk. We have also linked climate-related performance measures to the Executive Directors’ LTIP grants this year, accounting for 25% of weighting. These targets are also incorporated into wider team objectives. The Board received regular reports tracking progress against these goals. See pages 186 to 191 for further details.

Management responsibility

The Head of Portfolio Management was nominated as the Executive owner of our climate strategy and reports to the Board ESG Committee on all climate-related issues. They are supported by the Head of Sustainability and members of the Environmental Committee in the day-to-day management and delivery of climate-related initiatives. The Environmental Committee is made up of cross-functional members who head up various business departments, such as development, asset management, facilities management, investment and support functions. The Committee includes a number of other Executive Committee members, which ensures senior level ownership and oversight of implementation plans and also streamlines communication to the wider Executive team and the Board. The Environmental Committee meets bi-monthly and is responsible for operationalising our climate-related objectives, and hence is well positioned to manage, report, communicate and inform our approach on climate-related issues.

The 4°C warming scenario assumes that markets, governments and society will continue business as usual with increasing adoption of energy and resource intensive lifestyles and abundant exploitation of fossil fuels. There will be limited action taken to mitigate climate change in this scenario and hence as a result in the period after 2030, the physical effects of climate change will begin to intensify rapidly. The 1.5°C warming scenario assumes proactive and sustained action to reduce carbon emissions over the next 30 years to build a low-carbon economy, in the form of stringent Government policies on stricter energy efficiency building codes and carbon taxes. There will also likely be significant public and private sector investment in low emissions technologies to help the global economy achieve net zero goals by 2050. Overall, this scenario would result in higher transition risk in the short and medium term. Given the warming over pre-industrial levels is going to be limited, the extent of physical risk will only be slightly higher than it is today.

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1. GOVERNANCE

2. STRATEGY

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Our assessment considered all plausible climate-related risks and opportunities that are applicable for real estate businesses. These are identified in the table below. The impact of physical risks is mainly in the form of direct damage to property, business interruption or supply chain disruption. Impact of transition risks is mainly in the form of increased cost of business, property obsolescence or failure to meet customer expectations.

RISKS RELATED TO THE PHYSICAL IMPACTS OF CLIMATE

ACUTE CLIMATE RISKS	CHRONIC CLIMATE RISKS
Winter storm	Heat stress
Tornado	Precipitation
River flood	Drought
Flash flood	Fire weather
Coastal flood	Sea level rise
Hailstorm	Lightning

RISKS AND OPPORTUNITIES RELATED TO THE TRANSITION TO A LOWER-CARBON ECONOMY

POLICY AND LEGAL RISKS/OPPORTUNITIES

• Pricing of GHG emissions
• Proposed MEES requirements (EPC B by 2030)
• Climate Change litigation
• Enhanced emissions reporting obligations
• Increasingly stringent planning requirements

TECHNOLOGY RISKS/OPPORTUNITIES

• Substitution of existing technology to lower emissions options

MARKET RISKS/OPPORTUNITIES

• Change in customer demands
• Increased cost of raw materials
• Increased cost and availability of electricity
• Cost of capital
• Emissions offset

REPUTATION RISKS/OPPORTUNITIES

• Investment risk
• Employee risk

We have worked with WTW since 2022 to conduct an asset by asset exposure analysis for a range of climate risks (as shown in the table to the left) at the present day, as well as for future years under the selected scenarios. This analysis was last repeated in 2023 as we had a significant change in portfolio during that time. Data used for the analysis includes state of the art models and databases within the insurance industry (including WTW Global Peril Diagnostic, MunichRe hazard database, SwissRe CatNet amongst others), climate models, published research and information from IPCC. The assessment was further supplemented with local information and data that we hold on the assets. To assess the transition risks, we conducted scenario analysis using the guidance issued by TCFD. The scenario used for the analysis aligns with projections to keep global warming below 1.5°C above pre-industrial temperatures and it was constructed based on a variety of sources including RCP 2.6 scenario from IPCC, International Energy Agency (‘IEA’) and the Network for Greening the Financial System (‘NGFS’). NGFS has also been used as a primary source for carbon price estimates. Potential transition risks to Workspace were identified and articulated using academic research and discussions with Workspace teams (as shown in the table on the bottom left).# COMPLIANCE STATEMENTS CONTINUED

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The table below shows the summary of material risks and opportunities, applicable to Workspace, across the various time horizons and considering the two warming scenarios.

| | CURRENT / SHORT TERM (2025) # COMPLIANCE STATEMENTS CONTINUED

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Strategic Report

Our sustainable business model, whereby our carbon and energy intensity is lower compared to the industry average and our focus on repurposing older buildings to meet high sustainability standards ensures we are building resilience across the business in the near to medium term. Our robust operational platform allows us to proactively manage environmental performance of our assets and mitigate both physical and transition risks. Given our long-term ownership of buildings, coupled with our flexible lease model which allows us to invest across our portfolio in a timely manner and actively address climate risks, we are confident that our strategy is resilient against plausible climate scenarios. Further, our pathway to become net zero carbon (see pages 53 to 55), ensures we are aligning our business to a 1.5°C warming scenario and mitigating any potential risks. Our updated net zero targets, aligned with latest SBTi guidance, ensure we actively mitigate any potential transition risk.

Identifying and assessing risk

We have an established Risk Management Framework in place to help us capture, document and manage risks facing our business, including climate-related risks. The Audit Committee along with the full Board have overall responsibility for risk management. See our Risk Management Framework on page 185 along with our criteria for determining risk scoring. We identify risks across two key areas: Principal Business (Strategic) risks and Operational risks. Climate-related risks have been factored in to both these categories. The scenario analysis conducted with WTW helped us assess the level of exposure to climate risk, its likelihood (taking into account both existing and emerging regulatory and market risks), and determine its financial materiality using a structured template (see impact criteria on page 87) to capture any impact on revenue, costs or property valuation. This allowed us to map our risk levels as low, moderate or high, using our risk scoring matrix (page 87). In our case, we observed no significant change in risk profile between various time horizons and hence the mitigation strategy is focused on short to medium-term actions, covering our response out to 2030, including delivery of our net zero carbon commitment. Depending on the extent of planned mitigation measures in place, as already captured in our net zero pathway and existing business processes, we were able to narrow down the material risks which had a level of residual impact that we will continue to manage effectively. These are captured in the tables on pages 104 to 105 along with current mitigation strategy for the two climate scenarios we have assessed.

Our Governance

Financial Statements

Additional Information

RISK EVALUATION OF RESIDUAL RISK MITIGATION STRATEGY

TRANSITION RISKS AND OPPORTUNITIES IN THE CURRENT/SHORT AND MEDIUM TERM – 1.5°C WARMING SCENARIO

POLICY AND LEGAL	EPC RATING REQUIREMENTS
Risk: 21% of the Workspace portfolio is rated C and 19% is rated D and E. Additional investment of £40-50m will be required to meet EPC A/B across the portfolio by 2030 (c.£8-10m annually) – However, taking into account the annual maintenance capex for ongoing refurbishments throughout the year, the actual additional investment required will be much lower than c.£4-5m annually	Opportunity: There will be an opportunity arising from higher operational savings due to upgraded environmental performance
Mitigation Strategy: Target set to upgrade a significant proportion of the portfolio to EPC A/B each year. We successfully upgraded 8% of the portfolio to EPC A/B this year – A rolling programme of EPC and net zero audits is being undertaken to identify asset level upgrade plans and a process is in place to upgrade a unit once vacant – A detailed investment plan is created for annual budgeting purposes – Central register created to track EPC compliance status monthly

POLICY AND LEGAL	INCREASINGLY STRINGENT PLANNING REQUIREMENTS
Risk: Workspace is able to meet London Plan requirement of 35% emissions reduction over Part L, of the building regulations – If the requirements were to get more stringent in future (say 50% reduction or inclusion of offsetting for upfront carbon at planning stage), we would need to design buildings differently, which could raise project costs	Opportunity: By implementing our net zero design brief, we are able to achieve 35% reduction at minimal incremental cost
Mitigation Strategy: Continual tracking of planning requirements to inform our design brief – Strategy in place to minimise whole life carbon through responsible design and material choices

MARKET	CHANGE IN CUSTOMER DEMANDS
Risk: Based on a recent survey, over 25% of London SMEs factor in sustainability as one of the top five criteria in their choice of office space – We are rapidly decarbonising our portfolio in line with our net zero pathway, ensuring we are well placed to meet changing customer expectations and capture more market share by being ahead of our peers. In the interim, there is some risk to our older properties which are not in the top tier of energy/ carbon performance and are awaiting upgrades	Opportunity: There will also be an opportunity from increased customer demands (i.e. successful lettings, high occupancy) for our newly refurbished or developed buildings that meet high sustainability standards
Mitigation Strategy: Our net zero pathway ensures we continue to enhance our portfolio to meet changing customer demands – Through continual collection of customer preferences and data, we intend to proactively manage customer expectations – Improved communications with customers on our sustainability efforts further strengthen customer satisfaction

MARKET	INCREASED COST OF RAW MATERIALS
Risk: We expect the costs of carbon intensive raw materials (such as cement, steel) will increase in the future – The resulting impact will depend on our build activity in a year and the percentage of cost passed on by suppliers	Opportunity: Our focus on repurposing limits our exposure to raw materials and associated cost increased
Mitigation Strategy: Continued efforts to explore new materials and technologies will help further reduce embodied carbon of our developments

MARKET	EMISSIONS OFFSET
Risk: Our current emissions are around 20,565 tonnes of CO 2 e. In line with our net zero pathway, we expect to reduce our emissions by 90% by 2040 from a 2020 baseline (31,631 tonnes of CO 2 e) – Applying UCL projected cost of carbon at $100 per tonne 1 worst case scenario, this could cost us up to £240k annually from the point we achieve our net zero carbon target	Opportunity:
Mitigation Strategy: Continue to drive progress on our net zero pathway by upgrading our properties to eliminate scope 1 and 2 emissions – Continue efforts to explore new materials and technologies to reduce embodied carbon of our developments, driving our scope 3 emissions down – Continue engaging with tier 1 suppliers to implement the newly established supply chain decarbonisation roadmap, requiring top 50 suppliers to report carbon data annually and setting their own net zero targets

1. Source: https://www.ucl.ac.uk/news/2021/jun/ten-fold-increase-carbon-offset-cost-predicted.

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RISK EVALUATION OF RESIDUAL RISK MITIGATION STRATEGY

PHYSICAL RISKS IN THE CURRENT/SHORT AND MEDIUM TERM – 1.5°C WARMING SCENARIO

PHYSICAL RISKS	WINDSTORM
Risk: Most of our buildings could be exposed to risk of windstorm and missile impact from flying debris. However, given the solid façade and relatively lower height of our buildings, we estimate level of impact in property damages and business interruption to be low (less than £1m, assuming worst case scenario). The risk profile will likely remain within the current levels of variability, with changing temperatures	Opportunity:
Mitigation Strategy: Business continuity and emergency response planning measures in place to minimise potential impact in case of storm warnings – Protection against portable and not secured items in building vicinity is being incorporated

PHYSICAL RISKS	RIVER FLOOD
Risk: Flood defences provide an adequate level of protection however, there are some local areas at risk which exposes three of our buildings. The impacts could be water ingress, damage in lower floor and some level of interruption to the business. Taking into account our flood mitigation strategy and emergency preparedness plans, we estimate level of impact in property damages and business interruption to be low (less than £2m, assuming worst case scenario). The risk profile only moderately changes with time or changing temperatures	Opportunity:
Mitigation Strategy: Comprehensive flood risk management plans created for exposed assets – Business continuity and emergency response planning measures put in place in case of flooding – Flood mitigation measures being incorporated in design of new projects – Insurance protection in place in case of physical damage or interruption

PHYSICAL RISKS	LOCALISED FLASH FLOODING
Risk: Whilst the precipitation stress due to heavy rainfall is likely to stay the same, 10 of our buildings could be exposed to localised flash flooding due to local terrain features which could cause water ingress and damage in lower floors. A deeper dive of these buildings has revealed lower vulnerability to localised flash flooding and hence we estimate level of impact in property damages and business interruption to be low (less than £1m, assuming worst case scenario).	Opportunity:
Mitigation Strategy:
## TCFD CONTINUED

The risk profile is not likely to change with time or changing temperatures – Comprehensive flash flood risk assessment being undertaken across the portfolio – Business continuity and emergency response planning measures put in place to minimise impact in case of high precipitation warning – Regular drainage survey being undertaken across select buildings to ensure sufficient water attenuation on site – Flood mitigation measures being incorporated in design of new projects, including blue roofs and rain water harvesting systems

PHYSICAL RISKS IN THE LONG TERM – 4°C WARMING SCENARIO

DROUGHT

– Under this climate scenario, London and the South East of the UK could be exposed to drought stress, affecting all our properties in the long term. Whilst our water consumption is not material, this would result in slightly increased utility costs and impact on green areas
– We are installing water efficient fittings across our buildings
– Our landscaping has been designed to bear warmer climates in mind

HEAT STRESS

– In this scenario, by the end of the century, London and the South East of the UK could be exposed to medium level of exposure to heat stress resulting in the number of heatwave days increasing to 20 days per year, thereby affecting all our properties. On average, there will be an increase in our cooling demand. The scenario will also result in milder winters, which would in turn reduce our heating demand on average. In the current/short term, heat stress will not be a significant issue despite slight increase in heatwave days
– A rolling programme of air conditioning is being implemented across the portfolio to ensure customers are comfortable in high temperatures
– Additional measures such as outdoor greenery and shade being incorporated to provide ‘refuges’ in hotter weather conditions
– Review of current heating and cooling usage being undertaken to ensure we continue to optimise consumption, in response to outdoor temperatures

1. Note: Under the 4°C warming scenario – windstorm, flood risk and flash flood risk will exist as well, and potentially could edge further. However, the risk profile will not change significantly. The mitigation strategy listed above will continue to be effective.

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Additional Information

Metrics used to assess climate-related risks and opportunities

To understand our climate-related impact and performance we report on a wide range of consumption and intensity metrics relating to energy, carbon, waste and water, such as:
– Total energy consumption (page 107).
– Total electricity consumption, including proportion generated from renewables (page 107).
– Proportion of electricity sourced from renewable sources (page 110).
– Total fuel consumed on site (page 107).
– Building emissions intensity by floor area (page 107).
– Total emissions from water consumption (page 107).
– Total emissions from waste, waste recycled and diverted from landfill (page 107).
– EPC split of the portfolio by floor area (page 77).
– Number of buildings with sustainability certification (page 77).
– Number of energy efficiency projects implemented and associated capital expenditure (page 108).
– Number of buildings exposed to flooding (page 105).
– ESG metrics linked to remuneration and performance against these (pages 63, 64, 221).
– Internal carbon price of $100/tonne (page 104).

Pages 75 to 80 provide further detail on targets we have set against all climate-related metrics and progress made to date.

Scope 1, 2, 3 GHG emissions and related risks

Carbon emissions represent one of our largest environmental impacts and we are actively working to reduce our sources of carbon where possible (see our net zero carbon pathway on page 54). Significant contributors to our operational carbon emissions are the electricity and gas consumed within our buildings and by improving the energy efficiency of our buildings and electrifying the heating systems we aim to reduce our overall carbon footprint.

Following an in-depth analysis of our scope 3 emissions, we now have a much better understanding of the emissions associated with our development and refurbishment activities which make up a significant portion of our scope 3 emissions. We are also implementing a supply chain decarbonisation roadmap to accurately assess and reduce our supply chain emissions. Refer to page 107 for our scope 1, 2 and 3 greenhouse gas emissions data and year-on-year changes (calculated using GHG protocol).

Targets used to manage climate-related risks and opportunities

To reduce our carbon emissions, we continue to focus on designing low-carbon buildings and implementing energy efficiency initiatives throughout the portfolio, whilst actively engaging our customers and suppliers to reduce scope 3 emissions. Our main goal is to significantly decarbonise our business (see pages 54 to 55 for the scope of our net zero carbon commitment, aligned to latest SBTi guidance). This is underpinned by the following emissions reduction targets:
– Aim to reduce our total greenhouse gas emissions by 90% by 2040, from a 2020 baseline.
– Aim to significantly decarbonise heating from our portfolio by 2030 where feasible.
– Aim to source 100% energy from renewable sources.
– Undertake whole life carbon assessment of all development and refurbishment projects.

We use the following KPIs to assess progress against these targets:
– Reduction in scope 1 and 2 emissions.
– % of our property portfolio that is EPC A/B rated. See page 63 for further details.

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90% REDUCTION IN TOTAL GREENHOUSE GAS EMISSIONS BY 2040, FROM 2020 BASELINE

4. METRICS AND TARGETS

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GREENHOUSE GAS (‘GHG’) EMISSIONS AND ENERGY USE DATA FOR STREAMLINED ENERGY & CARBON REPORTING (‘SECR’)

Source of emissions	2019/20	LfL 2023/24	2023/24	LfL 2024/25	2024/25	2024/25 vs 2023/24 % change	LfL 2024/25 vs 2023/24 % change	2024/25 vs 2019/20 % change
Scope 1 (Direct)	3,451	2,248	2,118	1,912	1,883	-15%	-11%	-45%
Gas (tCO 2 e)	2,620	1,711	2	1,645	1,473	-14%	-12%	-44%
Fugitive Emissions (tCO 2 e)	828	537	473	438	438	-18%	-7%	-47%
Vehicle Emissions (tCO 2 e)	3	0	0	0	0	N/A	N /A	-86%
Scope 2 Location-based (Energy Indirect)	7,144	6,470	6,492	6,259	6,112	-3%	-6%	-12%
Scope 2 Market-based (Energy Indirect)	123	166	166	179	179	8%	8%	45%
Electricity (Location-based) (tCO 2 e)	7,021	6,304	6,326	6,080	5,933	-4%	-6%	-13%
Electricity (Market-based) (tCO 2 e)	0	0	0	0	0	0%	0%	0%
Purchased Heat (Location-based) (tCO 2 e)	123	166	166	179	179	8%	8%	45%
Purchased Heat (Market-based) (tCO 2 e)	123	166	166	179	179	8%	8%	45%
Vehicle Emissions (tCO 2 e) – Location-based	0	0.3	0.3	0.4	0.4	29%	29%	NA
Vehicle Emissions (tCO 2 e) – Market-based	0	0.3	0.3	0.4	0.4	29%	29%	NA
Total Scope 1 & 2 (Location-based)	10,595	8,718	8,610	8,171	7,995	-6%	-7%	-23%
Energy consumption used to calculate above emissions (kWh)	42,429,912	40,721,536	40,462,672	38,415,694	37,546,760	-6%	-7%	-9%
Intensity Ratio: Net Lettable Area tCO 2 e/sq. ft.	0.00268	0.00168	0.00194	0.00175	0.00180	5%	-7%	-35%
Intensity Ratio: Gross Internal Area tCO 2 e/sq. ft.	0.00191	0.00123	0.00138	0.00125	0.00128	2%	-7%	-35%
Scope 3 (Other Indirect)	21,036	15,251	N/A	12,393	N/A	-19%	N/A	-41%
Fuel and Energy-Related Activities (tCO 2 e)	961	3	868	3	N/A	823	N/A	-5%
Customer Direct Energy (tCO 2 e)	2,928	2,760	1,678	1,683	1,588	-39%	-5%	-43%
Water Supply (tCO 2 e)	91	44	N /A	33	N /A	-25%	N /A	-64%
Water Treatment (tCO 2 e)	187	51	N /A	40	N /A	-20%	N /A	-78%
Waste Management (tCO 2 e)	82	56	N /A	20	N /A	-65%	N /A	-76%
Embodied carbon in development projects (tCO 2 e)	8,982	4,495	N/A	3,974	N/A	-12%	N/A	-56%
Purchased goods and services (tCO 2 e)	7,647	6,574	N/A	5,396	N/A	-18%	N/A	-29%
Employee Commuting (tCO 2 e)	84	374	N /A	394	N/A	5%	N /A	369%
Business Travel (tCO 2 e)	74	29	N /A	30	N/A	4%	N /A	-59%
Total Scope 1, 2 & 3 (tCO 2 e)	31,631	23,969	N/A	20,565	N/A	-14%	N/A	-35%
Total energy consumption – whole building (kWh)	55,120,583	53,935,038	50,158,529	45,680,866	47,028,144	-15%	-6%	-17%
Total gas use – whole building (kWh)	15,617,931	10,626,937	11,628,536	8,167,827	10,626,937	-23%	-9%	-48%
Total electricity use – whole building (kWh)	38,801,849	42,386,431	37,608,323	36,518,439	35,406,607	-14%	-6%	-6%
Total purchased heat – whole building (kWh)	700,803	921,670	921,670	994,600	994,600	8%	8%	42%
Self-generated renewable electricity (kWh)	129,533	217,782	217,782	218,594	218,594	0.4%	0.4%	69%

1. Note: All figures reported relate to emissions and energy consumed in the United Kingdom.
2. The gas figure for FY 23/24 has been restated, as noted in page 109.
3. Figure restated due to inclusion of well to tank emissions from gas and heat use.

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Financial Statements
Additional Information

Reporting period: 1 April 2024 – 31 March 2025
Reporting Frequency – Annual, aligned with financial reporting
Regulatory: Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008
Boundary: Our GHG emissions have been prepared using the ‘operational control’ approach, in compliance with the Greenhouse Gas Protocol guidance. Scope 1 and 2 emissions include customer consumption where we procure gas, electricity or heat on their behalf. Where electricity is directly purchased by our customers (c.28% of NLA as at April 2024), we have estimated usage and corresponding emissions have been included under our scope 3 reporting. In cases where a property has been acquired or sold during the reporting period, we report its greenhouse gas emissions up to the sale date or from the acquisition date.We exclude properties from greenhouse gas reporting for the duration of any major refurbishment or construction project.

Reporting standards:
* World Resources Institute/World Business Council for Sustainable Development Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard, Revised Edition (the GHG Protocol).
* World Resources Institute/World Business Council for Sustainable Development Greenhouse Gas Protocol: Corporate Value Chain (scope 3).

We have also aligned our reporting with:
* EPRA ‘Sustainability Best Practice Recommendations’ (‘SBPR’). Published in the sustainability performance section of our investor website.
* Sustainability Accounting Standards Board (‘SASB’) real estate metrics. Pages 110 to 111.
* Global Reporting Initiative (‘GRI’) 2021 Standard. Published in the sustainability performance section of our investor website.

Verification:
Bureau Veritas were appointed for independent third-party verification of our carbon data. The verification has been performed to the international standard ISAE3410 Specification. Limited level of assurance, based upon a 5% materiality threshold has been carried out. The full assurance statement can be found in the sustainability performance section of our investor website.

Further, our social value data has been verified by Social Value Portal.

Other:
When reporting totals, the location-based emissions are used. All our portfolio market- based emissions are backed by Renewable Energy Guarantees of Origin (‘REGOs’).

Any questions about the reported information, please contact: info@workspace.co.uk

Performance against targets and KPIs

We achieved a 6% reduction in scope 1 and scope 2 emissions across the portfolio compared to FY 23/24. This is underpinned by a 6% reduction in Workspace procured energy consumption (14% reduction in gas and 4% reduction in electricity). On a like-for-like basis, which only includes properties that have been owned for the entirety of the April 2023 to March 2025 period, we achieved a 7% reduction in scope 1 and 2 emissions. The reduction in energy use was driven by investment in high efficiency heat pump installation across a number of properties and optimisation of controls and setpoints. We also rolled out a number of energy efficiency upgrades across the portfolio such as LED lighting, presence detection sensors, a smart Building Energy Management System (‘BEMS’) and ran several energy awareness sessions with customers. In addition, granular energy data enabled us to monitor and optimise real time energy demand.

In line with common practice in the property sector, we use a carbon intensity metric of tCO$_{2}$e/sq. ft. This year, we have delivered savings of 7% in our emissions per sq. ft. of Net Lettable Area (‘NLA’), across the like-for-like portfolio. It is worth noting that on an absolute basis we witnessed a 5% increase in emissions per sq. ft. NLA, due to the sale of several assets on FRI leases which didn’t contribute to scope 1 and 2 emissions. Our market-based electricity figure is zero because all of the electricity we purchase for our portfolio is now on a renewable energy contract backed by Renewable Energy Guarantees of Origin (‘REGOs’), including the power purchase agreement with a solar plant in Devon.

Energy efficiency actions taken during 2024/25

We have proactively identified and delivered a range of energy efficiency projects across our portfolio (invested £10m across 45 properties), such as LED and PIR lighting upgrades, installation of secondary glazing and a rolling programme of high efficiency heat pumps. We have also benefited from improved data management and customer engagement initiatives across a number of our buildings. We have continued to roll out our BEMS, Optergy, which is a smart metering technology that has enabled real-time energy monitoring at the building level right down to individual plant equipment. The data provided by the BEMS is used by our in-house Facilities Management teams to improve energy management practices and reduce GHG emissions. The Optergy portal is now fully enabled at 53 sites and enables us to view and monitor our energy consumption profiles, down to the unit level. See the case study on page 53 for further details on energy efficiency measures implemented during the year.

Method for data collection

We collect utility data across our portfolio from manual meters, automated meters and invoices, which are all collated on our energy reporting and billing platform. Our site teams are responsible for reading manual meters and log consumption data onto our energy and billing platform on a monthly basis. To remove reliance on manual meter reading, we continuously look at upgrading to automatic meters, which are currently in place across the majority of our main incomers. Our in-house energy analyst reviews the accuracy of energy data and analyses monthly performance trends to help prioritise properties for energy efficiency improvements.

COMPLIANCE STATEMENTS CONTINUED

REPORTING FRAMEWORK

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We estimate electricity consumption data where customers have their own utility supplier. Where this relates to units in a building where we otherwise have access to energy consumption, we estimate ‘Customer direct’ electricity usage based on the energy usage of the rest of the building, using a floor area pro-rating method. Where this relates to a FRI building, energy consumption is estimated based on the average energy usage of the building type in the portfolio. Whilst our ‘Customer direct’ gas consumption is very low, we have included estimations for gas consumption where we have been made aware of customer managed gas supplies. GHG emissions calculated from ‘Customer direct’ electricity and gas consumption are included in our scope 3 reporting. Every time a unit becomes vacant and we take over the ‘Customer direct’ supply, we transition the associated energy use to our scope 1 and 2 emissions.

This year, we made the decision to restate our 2023/24 emissions data, specifically gas usage and renewable energy generation following significant improvements in the accuracy of our historical data. We have also restated emissions from fuel and energy related activities for FY 23/24 and FY 2019/20, to account for well-to-tank emissions associated with gas and heat.

On page 107, we have also reported like-for-like figures, which include properties that have been owned for the entirety of the April 2023 to March 2025 period. Given we took over a significant number of ‘customer direct’ supplies during the course of the year, the data for these meters have been back dated for the 2023/24 period to enable a like-for-like comparison.

On page 107, we present the energy use intensity for each building in our portfolio. The energy use is normalised by the total internal area of each asset, revealing the relative performance of individual buildings and allowing us to benchmark it against industry best practice. This normalisation using total internal area allows us to take into account extensive usage of common areas provided as amenity spaces for our customers, ensuring a comprehensive assessment of energy performance of our buildings.

Fugitive emissions stem from the use of refrigerants and have been calculated based on refrigerant leak event schedules provided by our air conditioning contractors. Vehicle emissions are calculated from the use of our company cab. Waste data is captured by our waste contractor, who weighs recycled and general waste across the portfolio at each waste collection and provides us with a monthly tonnage report.

Embodied carbon in development projects relates to GHG emissions stemming from our construction and refurbishment activities. Since 2021, we systematically carry out whole-life carbon analysis for all developments and major refurbishment projects, and therefore have project specific embodied carbon data on our most recent projects. Whilst there is no standardised carbon emission factor for calculating embodied carbon emissions from smaller refurbishment projects, embodied carbon factors advised by our consultant’s research team have allowed us to estimate embodied carbon emissions for small projects, representative of standard market practice (196 kgCO${2}$e/m$^{2}$ for office retrofits involving heat decarbonisation, 77kgCO${2}$e/m$^{2}$ for light office retrofits).

Purchased goods and services relate to the upstream emissions from the business’ use of products and services. Emissions were calculated using a combination of spend- based and activity-based method, applying carbon factors from the BEIS database and supplier reported emissions, respectively. We intend to continue to move towards an activity-based method for our upstream emissions as more supply chain data becomes available. This will provide greater accuracy of the purchased goods and services emissions.

Business travel data includes flights and car mileage claimed for business purposes by our employees. Emissions from commuting include carbon emissions from homeworking in addition to office commuting. For this year’s reporting, we assumed the Head Office employees to be working in the office three days a week and at home two days a week. All site employees are assumed to be working on-site five days a week. Assumption on modes of transportation used by commuters came from the Department of Transport statistics.

On advice of our sustainability consultants, we have expanded the scope of our Fuel and Energy Related emissions to include well-to-tank emissions from gas, heat, business travel and employee commuting. This information has been back dated to previous years as well.

With the exception of embodied carbon and purchased goods and services, GHG emissions were calculated using DEFRA (Department for Environment, Food & Rural Affairs) 2024 factors.# COMPLIANCE STATEMENTS CONTINUED

SASB SUSTAINABILITY ACCOUNTING STANDARD – REAL ESTATE

| TOPIC | ACCOUNTING METRIC | CODE | COMMENT # COMPLIANCE STATEMENTS CONTINUED

TNFD CONTINUED

Description of targets (and performance monitoring) to manage dependencies, impacts, risks and opportunities

Partially aligned

INTRODUCTION

Workspace considers nature and biodiversity to be a material issue, intrinsically linked to several of our other priority areas, including climate resilience, customer expectations, wellbeing, and regulatory compliance. Recognising the growing urgency of nature loss and its implications for our business and stakeholders, we are committed to understanding and addressing our nature- related impacts and dependencies. In line with the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD), we are pleased to present our inaugural TNFD report. This disclosure provides transparency on the nature-related risks and opportunities we face, supporting stakeholders in making informed decisions. We intend to build on this foundation, refining and expanding our approach annually as we deepen our assessment of nature-related issues and embed them more fully into our strategic planning and risk management processes.

The need for action is clear. Globally, wildlife populations have declined by nearly 70% over the past 50 years (Source: WWF’s living planet report). In the UK, one in six species is now at risk of extinction (Source: State of nature report 2023). London is not immune to these pressures. Urban development and rising temperatures are straining natural habitats, with far-reaching consequences for public health, community resilience, and quality of life. As the owner and manager of 67 sites across 18 London boroughs and the South East, Workspace is well-positioned to enhance access to green space, improve local biodiversity, and deliver positive outcomes for communities. In recognition of this opportunity, we have launched our first Nature and Biodiversity Strategy, Make Space for Nature, available on our website.

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Through this strategy, we are setting ambitious, measurable targets to enhance the ecological value of our operational and development portfolios—ensuring nature is a core consideration in the design, construction, and management of our spaces. With a portfolio comprising of 4.2m sq. ft. of space, Workspace is uniquely positioned to support local biodiversity and increase access to nature in the city.

Ariane Ephraim
Senior Sustainability Manager

Board Oversight

Our Chief Executive Officer has the highest level of responsibility for nature-related risks and opportunities and together with the rest of the Workspace Board, ensures we maintain oversight of nature-related issues. The Board ESG Committee, comprising of our Chair, five Non-Executive Directors, Non-Executive Directors, our CEO and CFO receives a detailed update three times a year on our sustainability strategy, including nature-related issues, from members of the Executive Committee and the Head of Sustainability. This year, the Board ESG Committee reviewed and approved Workspace’s first nature and biodiversity strategy, taking into account our nature-related dependencies, impacts, risks and opportunities. The strategy includes measurable targets for our developments and existing portfolio, which are now fully integrated into key performance metrics, and monitored by the Board ESG Committee annually. The Committee also received a detailed ESG regulatory update from the Executive Committee and Head of Sustainability during the year, including changes to national and local nature-related regulations.

Management’s Role

The Head of Portfolio Management was nominated the Executive owner of our nature strategy and reports to the Board ESG Committee on all nature-related issues. They are supported by the Head of Sustainability and members of the Environmental Committee in setting our nature and biodiversity strategy and mobilising delivery. Nature-related targets set out in our strategy are now fully embedded into the objectives of relevant team members. To ensure effective learning from the outset, a smaller group within the Environmental Committee has formed a dedicated Biodiversity Taskforce. Meeting monthly, the taskforce includes representatives from asset management, facilities management, and development, providing focused oversight of nature enhancement projects and tracking progress against our nature and biodiversity goals as outlined in the Make Space for Nature strategy.

Human rights and engagement

As a property business, we recognise that nature-related impacts often intersect with the rights and wellbeing of local communities. We integrate human rights considerations into our governance of nature-related risks, particularly when developing or managing properties that may affect local ecosystems, contribute to deforestation, or limit public access to natural assets. We engage with customers, suppliers, and local stakeholders to identify and address all risks, ensuring our activities support equitable and sustainable development in line with international human rights and environmental standards.

1. GOVERNANCE

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Nature-related Dependencies and Impacts

Workspace recognises the vital connection between a thriving natural environment and the long-term success of its business. As a provider of flexible workspaces across a densely urbanised city, we both depend on and impact key ecosystem services, including climate regulation, stormwater management, and air purification. Our reliance on nature’s provisioning services is especially pronounced in our value chain, notably in construction, which demands significant volumes of natural raw materials.

Shifting regulatory and market expectations present both risks and opportunities. Increasingly, local and national regulations require greater attention to greening and biodiversity in development projects. At the same time, evolving customer expectations are a key driver of action. Our recent London SME survey revealed that access to greenery is a significant factor in office space selection. We’ve seen highly positive responses to the greening of our sites, highlighting a clear opportunity to expand this across our portfolio and enhance customer satisfaction.

In collaboration with nature and biodiversity experts, and through engagement with internal teams, we have undertaken an initial mapping of our nature-related risks and opportunities associated with our direct operations. Building on this foundation, we plan to conduct a comprehensive double materiality assessment of our direct and indirect impacts, dependencies, risks, and opportunities related to nature. This will be guided by the TNFD’s LEAP (Locate– Evaluate–Assess–Prepare) approach.

1. STRATEGY

NATURE-RELATED RISKS AND OPPORTUNITIES

CATEGORY	NATURE-RELATED RISKS / OPPORTUNITY	DESCRIPTION	EFFECT ON BUSINESS MODEL, VALUE CHAIN, STRATEGY AND FINANCIAL PLANNING
IMPACT	Physical Risk Biodiversity degradation near urban sites	Reduced ecosystem services (e.g. pollination, shading, air quality) impacting customer wellbeing and quality of life	Diminished attractiveness of our portfolio
	Physical Risk Climate stress from loss of natural safeguards	Lack of green space exacerbates urban heat island effect and flood risk	High operational costs due to heat stress and flood damage remediation
	Physical Risk Drought risk	Water scarcity causing operational issues	High operational costs
	Transition Risk Regulatory compliance (e.g., Biodiversity Net Gain, local planning requirements, nature-related disclosure)	Additional planning restrictions, cost increases, or delays for non-compliance	Compliance risk, development cost increase due to delays
	Transition Risk Stakeholder expectation misalignment	Reputational risk due to lack of appropriate response to nature degradation	Reduced brand attractiveness and customer recommendation levels
	Transition Risk Access to capital	Increased scrutiny on nature and biodiversity KPIs as part of lending requirements	Increase cost of capital
	Transition Risk Cost of raw materials	Degraded provision of ecosystem services causing lack in supply of raw materials, such as timber.	Construction cost increase
OPPORTUNITY	Enhanced asset value from green spaces	Nature-enhanced assets may command higher rents and customer retention	Increased and sustained rental income
	Customer wellbeing and productivity	Access to nature linked to improved customer satisfaction and wellness	Reputational benefits and increased tenant retention and attraction
	Alignment with urban planning and resilience strategies	Supporting local climate/nature goals can streamline approvals and community goodwill	Facilitating planning approvals and portfolio growth

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While we have mapped our operational portfolio against priority biodiversity locations - confirming that none of our sites fall within designated areas – we have not yet conducted a comprehensive assessment of our broader value chain. This is a priority we intend to address in due course. Similarly, we have not undertaken dedicated nature- related scenario analysis, primarily due to the current lack of robust and widely accepted methodologies. However, several risks and opportunities identified through our existing TCFD climate scenarios are directly linked to nature, such as surface water flooding.# ADDRESSING OUR NATURE-RELATED IMPACTS, DEPENDENCIES, RISKS AND OPPORTUNITIES

Our ‘Make Space for Nature’ strategy aims to address our nature-related risks and opportunities via three primary objectives:

1. Achieve ambitious Biodiversity Net Gain
   The statutory metric (BNG) provides a quantifiable and verifiable method to assess our habitat creation efforts and environmental impact, which also helps to meet regulatory requirements. The aim is to achieve quantifiable biodiversity net gains, which exceed minimum compliance standards, for all new developments, major refurbishments and existing assets. This includes enhancing habitats for priority species and implementing green infrastructure across all assets where opportunity exists. Quantifying habitat enhancement and creation also allows us to incorporate nature and biodiversity performance consideration into financial planning both at design stage of development/refurbishment projects and into annual asset management budgeting.

2. Health and wellbeing engagement
   The increase in urban density can constitute a barrier to accessing nature, a crucial contributor to physical and mental health. As an actor of urban transformation, Workspace recognises that people’s connection to nature is essential to their wellbeing and needs to be preserved. By creating sizeable and inviting green spaces as part of each project, we are committed to meeting our customers’ expectations and enhancing their wellbeing and that of local communities.

3. Ecosystem service provision and resilience
   We recognise that the evolving climate presents low to moderate risks to our business, manifesting as extreme weather events such as flooding, and chronic challenges like heat and drought stress. By integrating nature-based solutions into the design of our buildings effectively help to mitigate against these risks. The creation of blue and green spaces contribute to reducing the Urban Heat Island effect, and outdoor greenery offers shaded spaces that help mitigate the effects of heat stress. Green infrastructure on site also helps managing surface water by increasing the amount of permeable ground across our properties. To measure our progress, we have baselined our contribution to local biodiversity and set measurable targets (see Metrics and Targets on page 117).

2. STRATEGY CONTINUED

15% AIM FOR BIODIVERSITY NET GAIN BY 2030, AGAINST 2024 BASELINE

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Given the central role of nature-based solutions in climate change adaptation and mitigation, nature and climate-related risks are deeply interdependent. As such, Workspace integrates nature-related risks into its broader climate risk management approach through its enterprise risk management framework (see page 103 in the TCFD section for further detail).

As outlined in the Strategy section, the three objectives of our ‘Make Space for Nature’ strategy (biodiversity net gain, wellbeing, climate resilience) together address our direct nature-related risks and opportunities. To mitigate against the risks, we have incorporated the strategy, along with clear action plans, into the objectives of relevant teams, both for our operational portfolio and development projects.

Operational portfolio: Following a comprehensive biodiversity baselining exercise of our portfolio, we have identified enhancement opportunities across our operational portfolio and created a pipeline of greening projects which were prioritised based on site needs, customer expectations and space availability. To ensure any enhancement or addition of green spaces across our portfolio addresses our three strategic objectives, we have developed a Biodiversity Design Guide to inform and support decision making. This guide provides clear green infrastructure specifications, including species selection and is used by both our asset management and development teams to inform project specification. This guidance also includes maintenance regimen, horticultural best practice, cost estimations and links to ecosystem service provision.

Developments: Our Sustainable Development Framework has guided our development teams in translating Workspace’s sustainability ambitions consistently into project designs. Building on this existing process, we have incorporated our latest nature-specific targets into the Framework to ensure meaningful and measurable contributions to local biodiversity are achieved at project level (exceeding the minimum compliance requirements), whilst maximising customer wellbeing. This also places nature-based solutions at the heart of our climate-related adaptation and mitigation strategy.

The table on the right outlines our mitigation strategy against each of the nature-related risks.

3. RISK MANAGEMENT

MITIGATING STRATEGY FOR NATURE-RELATED RISKS

CATEGORY	NATURE-RELATED RISKS/OPPORTUNITY:	MITIGATION STRATEGY
Physical Risk	Biodiversity degradation near urban sites > Reduced ecosystem services (e.g. pollination, shading, air quality) impacting customer wellbeing and quality of life	– Rolling programme of greening projects, informed by Biodiversity Design Guide, to enhance onsite biodiversity – All major projects incorporate a minimum BNG target, exceeding minimum compliance requirements
Physical Risk	Climate stress from loss of natural safeguards > Lack of green space exacerbates urban heat island effect and flood risk	– Biodiversity Design Guide encourages implementation of sustainable drainage systems and enhancement in vegetative cover, including tree planting
Physical Risk	Drought risk > Water scarcity causing operational issues	– Specification of drought resistant planting and water efficient fittings to minimise our water consumption
Transition Risk	Regulatory compliance > Additional planning restrictions, cost increases, or delays for non-compliance	– All major projects incorporate a minimum BNG target, exceeding minimum compliance requirements
Transition Risk	Stakeholder expectation misalignment > Reputational risk due to lack of appropriate response to nature degradation	– ‘Make Space for Nature’ strategy communicated to all stakeholders with public reporting of progress and TNFD disclosure to ensure our approach and response is widely understood
Transition Risk	Access to capital > Increased scrutiny on nature and biodiversity KPIs as part of lending requirements	– Incorporation of BNG target as a key sustainability KPI, with a long term measurable goal – TNFD disclosure ensures lenders are informed of progress being made
Transition Risk	Cost of raw materials > Degraded provision of ecosystem services causing lack in supply of raw materials, such as timber	– Focus on refurbishment minimises reliance on raw materials – Plans to update procurement policies to take into account nature-related considerations

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4. METRICS AND TARGETS

To measure our nature-related impact and dependency, we are now tracking and reporting on a number of metrics such as:

• Biodiversity Net Gain achieved on each development project ³
• Urban Greening Factor achieved on new development project ³
• Number of ecosystem services uplifted on new development project ³
• Annual Biodiversity Net Gain uplift across our operational portfolio (page 117)
• Number of additional greening projects or greenery condition improvement projects carried our annually (page 77)
• Number of customer and employee nature awareness events delivered (page 117)
• Instances of surface flooding affecting our buildings (page 79)
• Waste generated and disposal (page 107)
• Water use (page 107)

The table on the right provides further detail on targets we have set against nature-related risks and opportunities.

SMALL PROJECTS MAKE BIG WINS

This year we delivered external greening projects across 5 buildings, carefully designing the space to enhance local biodiversity and access to nature. These projects resulted in a biodiversity net gain of 0.4 Biodiversity Units – a 2.4% increase from our baseline of 16.76 Biodiveristy Units. We intend to continue to drive progress at pace, in line with our 2030 target.

STAKEHOLDER ENGAGEMENT ON NATURE

Meeting customer expectations around nature is a key driver of our strategy. Just as importantly, we believe that fostering awareness and connection to the natural environment will deepen the impact and long-term success of our approach. To mark the launch of our ‘Make Space for Nature’ strategy and involve our customers from the outset, we hosted a bulb planting workshop at our Kennington Park centre. Fifteen customers took part, learning planting techniques and creating their own planters, which are now proudly displayed on the shared terraces.

1. Where the baseline value of site is one biodiversity unit or above.
2. Where the baseline value of site is less than one biodiversity unit.
3. Nature and Biodiversity metrics for new developments (see table to the right) are not reported this year as no new development project has been designed since the publication of the ‘Make Space for Nature’ strategy.

NATURE & BIODIVERSITY TARGETS

TARGET	PROCESS
Existing portfolio	1. Achieve 15% BNG across the operational portfolio (based on habitat units) by 2030 from a 2023/24 baseline. – We will seek to green our buildings where feasible. – We will implement adequate ‘biodiversity actions’ (such as planters, trees, etc) where feasible. – We aim to monitor and report against the targets every two years including verification from a third party.
New Developments	1. Achieve 25% BNG, for sites with existing greening 1 OR achieve 2 BU/ha, for dense urban sites with little greening 2 . 2. Achieve a Urban Greening Factor (‘UGF’) of 0.3.

Strategic Report

Our Governance

Financial Statements

Additional Information

IN THIS SECTION

OVERVIEW

Governance highlights in 2024/25

Chair’s introduction to Governance

UK Corporate Governance Code 2018

BOARD LEADERSHIP AND COMPANY PURPOSE

CEO introduction

Our Board

Board activities 2024/25

Section 172(1) statement

DIVISION OF RESPONSIBILITIES

Company Secretary introduction

Board roles and responsibilities

Our governance framework

How we govern

COMPOSITION, SUCCESSION AND EVALUATION

Chair of the Nominations Committee introduction

Nominations Committee Chair’s letter

The role of the Nominations Committee

Nominations Committee activities in 2024/25

Diversity and inclusion

AUDIT, RISK AND INTERNAL CONTROL

Chair of the Audit Committee introduction

Audit Committee Chair’s letter

The role of the Audit Committee

Significant matters considered by the Committee

External audit

Risk management and internal controls

ESG COMMITTEE REPORT

Chair of the ESG Committee introduction

ESG Committee Chair’s letter

ESG policies, procedures and related assurance

REMUNERATION

Chair of the Remuneration Committee introduction

Remuneration Committee Chair’s letter

Summary of Executive Directors’ Total Remuneration

Consideration of the experience of our stakeholders

Aligning our remuneration principles with our purpose and strategy and the experience of all our stakeholders

Our Remuneration Policy

Annual report on remuneration

DIRECTORS REPORT AND RESPONSIBILITY STATEMENT

Report of the Directors

Statement of Directors’ responsibilities in respect of the annual report and the financial statements

STRONG GOVERNANCE IS A STRATEGIC ENABLER, WHILE OUR INCLUSIVE CULTURE IS A CATALYST FOR INNOVATION, TRUST AND COLLABORATION, FORMING THE FOUNDATION FOR LONG-TERM VALUE CREATION FOR ALL OUR STAKEHOLDERS.

Embedding and monitoring our culture
Pages 122 to 123

Diversity and inclusion
Pages 162 to 171

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GOVERNANCE HIGHLIGHTS IN 2024/25

EMBEDDING AND MONITORING CULTURE

Through ongoing employee surveys, we gather the feedback necessary to continuously monitor and embed our culture. By nurturing a stronger culture, the Board has aimed to create an environment where every employee feels seen, supported and driven by a shared sense of purpose and values.

Duncan Owen Non-Executive Chair

Lawrence Hutchings was appointed as CEO on 18 November 2024, succeeding Graham Clemett, who retired from the role of CEO on the same date but remained on the Board as an Executive Director until his retirement on 31 January 2025.
Read more about the transition Page 157

DIVIDEND

28.4p

REFINANCING

£215m REFINANCED CREDIT FACILITIES
Read more about the refinancing Pages 142

CREATING SOCIAL VALUE

£1.02m OF SOCIAL VALUE GENERATED

	2025	2024	2023
	1.02m	827k	604k

REDUCING OUR IMPACT

-7% REDUCTION IN SCOPE 1 AND 2 EMISSIONS IN THE LIKE-FOR-LIKE PORTFOLIO COMPARED TO FY 23/24
Read more about embedding and monitoring our culture Pages 122 to 123
Read more about how we create social value Page 85

76% STAFF AGREE OUR VALUES MATCH OUR CULTURE (2025 STAFF SURVEY)

CEO TRANSITION

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CHAIR’S INTRODUCTION TO GOVERNANCE

Robust governance provides the discipline and direction behind our strategy, while our inclusive culture accelerates innovation, strengthens trust, and enhances collaboration. Together, they are key drivers of long-term performance and value for all our stakeholders.

Duncan Owen
Non-Executive Chair

QUICK LINKS

Page
Chair’s introduction to governance 120
Board leadership and company purpose 126
Division of responsibilities 143
Composition, succession and evaluation 153
Audit, risk and internal control 172
ESG Committee report 186
Remuneration 192
Report of the Directors 231
Statement of Directors’ responsibilities 234

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CHAIR’S INTRODUCTION TO GOVERNANCE CONTINUED

Dear shareholder,

I am pleased to present Workspace’s corporate governance report for the 2024/25 year. The Board and I recognise that strong governance is fundamental to building trust and driving long-term value for both our shareholders and our people. This year, we were proud to see our efforts acknowledged through several industry accolades, including Reporting in the FTSE 350 and Remuneration Reporting in the FTSE 350 at the PwC Building Trust Awards. These achievements reflect our commitment to transparency, accountability, and high performance, and we remain focused on maintaining these standards.

Board changes and succession planning

One of the Board’s key priorities this year has been to ensure a smooth and effective CEO transition. On 18 November 2024, we were pleased to welcome Lawrence Hutchings as our new Chief Executive Officer. Lawrence has already brought fresh perspectives and energy to Workspace, delivering resilient results, with trading profit at £66.8m, and developing a refreshed strategy. We look forward to working closely with him as we continue to deliver on our strategic ambitions.
Read more about Lawrence on page 127.

Graham Clemett retired as CEO on 18 November 2024, remaining on the Board as an Executive Director until 31 January 2025 to support a seamless handover. On behalf of the Board, I would like to sincerely thank Graham for his significant contribution to Workspace over the years and wish him all the best in his retirement.

I’m also pleased to welcome Jess Berney to the Executive Committee, who will take on the role of Head of Portfolio Management from 1 July 2025. Jess has a strong track record from her senior management role at Schroders Capital, and we look forward to the expertise and leadership she will bring to this important position.

Focus on strategy

During the year, the Executive Committee, led by Lawrence and supported by the Board, have been developing a revised strategy, based on operational excellence and an evolution of our flexible offer. The new approach prioritises agility and our ability to adapt to changing market conditions.
Read more about our refreshed strategy on pages 34 to 58.

Embedding culture

We are committed to setting the tone from the top, championing a culture that is open, inclusive, and aligned with our values. The Board plays an active role in embedding this culture by engaging directly with employees through Chair engagement lunches, reviewing insights from employee surveys, and listening to feedback across the organisation. These insights are central to shaping how we understand, communicate, and embed our culture at every level of the business.

Sustainability

In addition to launching our first net zero carbon building, we introduced a new social impact programme, designed to enhance skills and create employment opportunities within our local communities.
Read more on pages 58 and 187.

The Board discussed the updated target – setting criteria issued by the Science Based Target initiative, which requires a 90% reduction in greenhouse gas emissions in order to claim net zero, and approved a change in the Company’s targets to align with the new criteria.
Read more on page 54.

Diversity & inclusion

We are proud of our diverse and inclusive workforce and in support of our ongoing commitment to inclusivity, we established a Diversity Action Group during the year, a dedicated staff forum aimed at promoting dialogue and progress across all aspects of diversity. This is chaired by Richard Swayne, our Investment Director, and attended by employees from across the business, and its remit is to suggest and drive forward employee led initiatives.
Read more on page 171.

Internal Board performance review

Following the external Board performance review conducted by Fidelio last year, the Board conducted an internal performance review this year. It concluded that the Board and its Committees remain effective, delivering strong oversight through informed decision making, strategic input, and consistent support for the Executive team.
Read more about the internal performance review on pages 159 to 160.

New Corporate Governance Code

During the year, we considered the forthcoming amendments contained in the UK Corporate Governance Code 2024, which applies to Workspace for financial years starting from 1 April 2025 (except for provision 29 in relation to risk management and internal controls, which will be effective from 1 April 2026).

We were pleased to be recognised at this year’s PwC Building Trust Awards with the judges highlighting our visually engaging stakeholder led disclosures, affirming our commitment to clear, transparent and impactful reporting.# Workspace Group PLC Annual Report and Accounts 2025

Strategic Report

Our Governance

Financial Statements

Additional Information

Q&A

EMBEDDING AND MONITORING OUR CULTURE

WHY WE DO IT

An engaged and motivated workforce helps us deliver value.

HOW WE DO IT

The Board uses a variety of methods to monitor our culture and how it is embedded.

CHAIR’S INTRODUCTION TO GOVERNANCE CONTINUED

IN CONVERSATION WITH OUR NON-EXECUTIVE DIRECTORS

Q Why is culture so important to the Board and how do you set our culture?

Lesley-Ann Nash (Lesley-Ann)
Fostering the right culture is vital to ensuring Workspace delivers value to its stakeholders. As a collective, the Board is aligned on wanting an open and inclusive culture at Workspace, where all staff are motivated and aware of the value their work brings to delivering our economic, environmental and social value.

Rosie Shapland (Rosie)
Promoting an inclusive workplace begins with setting clear expectations around conduct and behaviour. As a Board, we regularly review and approve the Group’s core employment and compliance policies to ensure they remain robust and aligned with our values. We recently approved an updated and consolidated Employee Handbook and Code of Conduct, which was communicated to all employees. We also reviewed the Group’s new Sexual Harassment Policy, which sets out the clear steps the Company will take to protect employees and uphold a zero-tolerance approach to harassment in the workplace.

Q How does diversity & inclusion fit in with culture?

Nick Mackenzie (Nick)
A diverse workforce plays a vital role in shaping a positive, inclusive, and high-performing culture. By bringing together a rich variety of backgrounds, experiences and perspectives, it not only drives creativity and innovation but also supports more well-rounded, effective decision-making across the organisation.

David Stevenson (David)
An inclusive environment helps employees feel respected and valued, which strengthens engagement, enhances collaboration, and contributes to a stronger, more cohesive team performance throughout the Company.

Q How does the Board directly monitor our culture and make sure it is embedded?

Manju Malhotra (Manju)
Our two Executive Board members, our CEO and CFO, are at the heart of the business day-in and day-out. They set the ‘tone from the top’ and constantly see our culture in action. We hear from them at every Board meeting and it is always invaluable for us to hear their perspectives on Workspace’s culture and the feedback they have received.

Rosie
As Non-Executive Directors, we believe it’s essential to step out of the boardroom and engage directly with staff to gain firsthand insights. Duncan, our Chair, takes his role as the designated Director for Employee Engagement very seriously. He has been particularly committed to ensuring that all Board members have the opportunity to hear directly from staff. This year, several of us Non-Executive Directors have joined Duncan at staff lunch sessions, which have proven to be an invaluable way for us to monitor and understand the company culture.

Q Why are the lunchtime sessions so valuable?

Rosie
The lunchtime sessions allow us to speak to staff in a relaxed environment, without the formality they might feel in a meeting at head office. It fosters an atmosphere where staff can freely speak.

David
I attended my first lunch session in October 2024 and I was immediately struck by the knowledge our staff have of the business and our customers, and the many ideas they have for improvements. One theme in the session I attended was a clear desire to hear and understand more about the Company’s strategy. Following this, the Executive Committee have started holding regular sessions with senior managers and their wider teams to update them on strategy discussions.

Q How do you make sure that the Board is engaging with our centre teams as well as head office teams?

David
As part of my induction as a new Non-Executive Director, I met with several members of staff at our head office, and visited a number of our sites where I was able to speak to the centre teams on-site and hear their perspectives. I saw first-hand the impact that our centre teams make on customer experience.

Nick
We’ve made a conscious effort to ensure that the Board’s focus extends beyond our headquarters in Kennington. This year, we held Board meetings at Centro Buildings, The Print Rooms and Salisbury House, giving us the chance to observe our teams in action and engage with them while enjoying our morning coffee. These visits provide valuable opportunities to connect with staff and gain a deeper understanding of their roles and interactions with customers.

Lesley-Ann
And of course, the staff lunch sessions are held at various locations to give every member of staff the opportunity to attend one that is convenient for them.

Q Do you hear the results of the annual staff survey?

Manju
Yes we do! The annual staff survey is one of our most important opportunities to hear the honest views of Workspace staff. The survey is always anonymous because we understand some staff may not feel comfortable giving feedback directly, especially constructive feedback.

Nick
Once the survey results are in, we receive an in-depth presentation of the results from the Director of People & Culture and discuss them in detail. We also review and discuss the proposed actions that come out of the survey and then we regularly invite the Director of People & Culture back to the boardroom to update us on progress.

Lesley-Ann
One of the focus areas of the annual survey is always remuneration and benefits. As Chair of the Remuneration Committee, I am particularly conscious of our responsibility to consider the remuneration of the wider workforce when setting Executive pay, especially given the continual increase in the cost of living. Feedback from the survey on the remuneration and benefits was a key reason for the decision to enhance our family leave policies and introduce a new scheme which allows staff to buy extra annual leave.

Q How else do you monitor culture?

Lesley-Ann
We make sure that we communicate regularly with all members of the Executive Committee. Sometimes the informal feedback that our Executive Committee members hear day-to-day can be the most insightful and give us a really good barometer of how staff are feeling.

Manju
One of the ways the Executive Committee receive feedback is the online staff suggestion box that was introduced a few years ago. One of the suggestions received from a centre manager was to send out an end-of-year newsletter to customers summarising what key events and achievements took place in their centre that year. This excellent idea was implemented in March 2025.

Nick
We’ve heard that one of the things staff value most is the ‘town hall’ style events, held several times a year and hosted by members of the Executive Committee and other senior leaders in the business. This gives staff the chance to get together and hear business updates in a communal setting. Questions from staff are always encouraged (anonymously or not!) and as a Board we hear feedback from the Executive Committee on the questions asked and thoughts raised.

David
One of the themes raised this year, in common with the matters discussed at staff lunches, was communication about strategy.

Q Do you think Workspace has a culture where staff feel able to raise concerns about misconduct?

Rosie
It’s vital that staff are able to let us know if they are concerned about any misconduct at work. Each year the Audit Committee reviews Workspace’s Whistleblowing Policy to ensure it continues to reflect best practice. In particular, we ensure that there is a way for staff to report matters anonymously if they feel they need to.

Manju
One of the most important parts of the Whistleblowing Policy is the section on ‘no reprisals’, where we reassure staff that no-one who makes a genuine report will be subject to any negative consequences as a result. This is reinforced in an annual reminder that is sent to all staff.

Q What more do you want to do in the coming year?

Manju
In the coming year, the Board is committed to actively monitoring and responding to the insights gathered from the recent staff survey. The results, which were presented to the Board in April, highlighted key areas where we can improve and strengthen our culture and employee experience. As a result, the Board will closely monitor progress on initiatives aimed at addressing these areas, including enhancing communication, promoting professional development opportunities, and ensuring that our work environment continues to be inclusive and supportive. We remain dedicated to listening to our staff and fostering a workplace where every employee feels valued and empowered to contribute to the Company’s success.

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Duncan Owen
Non-Executive Chair
4 June 2025# RESPONDING TO STAFF FEEDBACK IN 2024/25

| What did we hear? | Where did we hear it? | What action have we taken? |
| :---At its core, Workspace is a provider of flexible workspace solutions. We offer a range of services designed to meet the evolving needs of businesses, from start-ups to established enterprises. Our primary focus is on creating environments that foster productivity, collaboration, and well-being.

Our Services

Workspace provides a comprehensive suite of services, including:

• Serviced Offices: Fully equipped and managed office spaces that offer flexibility and scalability.
• Co-working Spaces: Shared office environments that encourage networking and a sense of community.
• Meeting Rooms & Event Spaces: Professional and well-appointed spaces for meetings, presentations, and events.
• Virtual Offices: Business addresses and mail handling services for companies needing a professional presence without a physical office.
• Business Support Services: A range of administrative and technical support to help businesses operate smoothly.

Our Approach

Workspace is committed to a people-centric approach. We believe that the success of any business is intrinsically linked to the well-being and productivity of its employees. Therefore, we strive to create inspiring and supportive environments where individuals and teams can thrive. Our core values emphasize:

• Flexibility: Adapting to the changing needs of our clients.
• Community: Fostering connections and collaboration among our members.
• Innovation: Continuously seeking new ways to enhance the workspace experience.
• Sustainability: Operating with environmental responsibility and social consciousness.
• Service Excellence: Providing outstanding support and amenities to our clients.

Governance and Compliance

Workspace is committed to upholding the highest standards of corporate governance and ethical conduct. We operate in accordance with applicable laws and regulations, and we strive to be transparent in all our dealings. We adhere to the principles of good corporate governance, ensuring accountability, fairness, and responsibility in our operations.

UK Corporate Governance Code 2018

The Board confirms that, for the year ended 31 March 2025, we have complied with all of the provisions of the UK Corporate Governance Code 2018 other than Provision 32 of the Code.

Explanation for Non-Compliance with Provision 32:

Lesley-Ann Nash was appointed as Chair of the Remuneration Committee with effect from 10 September 2021 and on appointment had served nine months as a member of the Remuneration Committee. While we note the requirement of Provision 32 that remuneration committee chairs should have served on a remuneration committee for at least 12 months prior to their appointment, Lesley-Ann has now served on the Remuneration Committee for over three years and the Board continues to have every confidence that Lesley-Ann has the skills and experience to carry out the role.

The application of the Code’s Principles is evidenced throughout the Annual Report and the tables to the right and below show how the Governance section has been structured around the Code Principles (A to R). Further information on the Code can be found on the Financial Reporting Council’s website at www.frc.org.uk.

During the year, the Board and its Committees have spent time reviewing the UK Corporate Governance Code 2024, the majority of which will apply to Workspace from 1 April 2025 (except for Provision 29 in relation to risk management and internal controls, which will be effective from 1 April 2026). A programme of work to ensure our continuing compliance was progressed during the year.

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BOARD LEADERSHIP AND COMPANY PURPOSE

Pages 126 to 142

The Board provides the essential leadership needed to drive sustained and resilient performance.

• Lawrence Hutchings
  • Chief Executive Officer

Principle A: A successful company is led by an effective and entrepreneurial board, whose role is to promote the long-term sustainable success of the company, generating value for shareholders and contributing to wider society.

• Our Board: Pages 127 to 129
• CEO transition: Page 157
• Board performance review: Pages 159 to 161

Principle B: The board should establish the company’s purpose, values and strategy, and satisfy itself that these and its culture are aligned. All directors must act with integrity, lead by example and promote the desired culture.

• Purpose, values and culture: Page 132
• Strategy: Page 34
• Business model: Page 2

Principle C: The board should ensure that the necessary resources are in place for the company to meet its objectives and measure performance against them. The board should also establish a framework of prudent and effective controls, which enable risk to be assessed and managed.

• Our governance framework: Page 146
• Risk management and internal controls: Page 184
• Principal risks and uncertainties: Page 86

Principle D: In order for the company to meet its responsibilities to shareholders and stakeholders, the board should ensure effective engagement with, and encourage participation from, these parties.

• Our stakeholders: Pages 14 to 26 and 133 to 136
• Section 172(1) statement: Pages 139 to 142

Principle E: The board should ensure that workforce policies and practices are consistent with the company’s values and support its long-term sustainable success. The workforce should be able to raise any matters of concern.

• Purpose, values and culture: Page 132
• Employee engagement: Pages 18 to 20, 134 and 214
• Whistleblowing Policy: Page 98

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DIVISION OF RESPONSIBILITIES

Pages 143 to 152

Clear separation of roles enables us to maintain the highest standards of integrity and governance.

• Carmelina Carfora
  • Company Secretary

Principle F: The chair leads the board and is responsible for its overall effectiveness in directing the company. The chair should demonstrate objective judgement throughout their tenure and they should promote a culture of openness and debate. In addition, the chair facilitates constructive board relations and the effective contribution of all non-executive directors, and the chair ensures that directors receive accurate, timely and clear information.

• Board roles and responsibilities: Page 144
• Chair’s introduction to governance: Page 120
• Board performance review: Pages 159 to 161

Principle G: The board should include an appropriate combination of executive and non-executive (and, in particular, independent non-executive) directors, such that no one individual or small group of individuals dominates the board’s decision making. There should be a clear division of responsibilities between the leadership of the board and the executive leadership of the company’s business.

• Board roles and responsibilities: Page 144
• Non-Executive Directors: Page 147
• The relationship between the Board and the Executive Committee: Page 149

Principle H: Non-executive directors should have sufficient time to meet their board responsibilities. They should provide constructive challenge, strategic guidance, offer specialist advice and hold management to account.

• Board roles and responsibilities: Page 144
• Non-Executive Directors: Page 147

Principle I: The board, supported by the company secretary, should ensure that it has the policies, processes, information, time and resources it needs in order to function effectively and efficiently.

• Our governance framework: Page 146
• Information flow to the Board: Page 151

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CHAIR’S INTRODUCTION TO GOVERNANCE CONTINUED

124 Workspace Group PLC Annual Report and Accounts 2025

• Strategic Report
• Our Governance
• Financial Statements
• Additional Information

REMUNERATION

Pages 192 to 230

Our purpose is to design remuneration arrangements that not only align with the Company’s goals and objectives but also reflect our culture and core values.

• Lesley-Ann Nash
  • Chair of the Remuneration Committee

Principle P: Remuneration policies and practices should be designed to support strategy and promote long-term sustainable success. Executive remuneration should be aligned to company purpose and values, and be clearly linked to the successful delivery of the company’s long-term strategy.

• Remuneration Committee Chair’s letter: Page 195
• Remuneration at a glance: Page 199
• Our remuneration policy: Page 206

Principle Q: A formal and transparent procedure for developing policy on executive remuneration and determining director and senior management remuneration should be established. No director should be involved in deciding their own remuneration outcome.

• Remuneration Committee Chair’s letter: Page 195
• Our remuneration policy: Page 206

Principle R: Directors should exercise independent judgement and discretion when authorising remuneration outcomes, taking account of company and individual performance, and wider circumstances.

• Remuneration Committee Chair’s letter: Page 195
• Our approach to fairness and wider workforce considerations: Page 214

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AUDIT, RISK AND INTERNAL CONTROL

Pages 172 to 185

The Committee has maintained its focus on overseeing the Group’s financial reporting, external audit, internal controls and risk management.

• Rosie Shapland
  • Chair of the Audit Committee

Principle M: The board should establish formal and transparent policies and procedures to ensure the independence and the effectiveness of internal and external audit functions. The board should satisfy itself on the integrity of financial and narrative statements.

• Audit Committee Report: Page 172

Principle N: The board should present a fair, balanced and understandable assessment of the company’s position and its prospects.

• Fair, balanced and understandable reporting: Page 182

Principle O: The board should establish procedures to manage risk, to oversee the internal control framework, and to determine the nature and the extent of the principal risks the company is willing to take in order to achieve its long-term strategic objectives.

• Our governance framework: Page 146
• Risk management and internal controls: Page 184
• Principal risks and uncertainties: Page 86

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COMPOSITION, SUCCESSION AND EVALUATION

Pages 153 to 171

We are committed to cultivating a diverse mix on the Board, ensuring a balanced approach that supports sustainable long-term success.

• Duncan Owen
  • Chair of the Nominations Committee

Principle J: Appointments to the board should be subject to a formal, rigorous and transparent procedure, and an effective succession plan should be maintained by the board and by senior management. Both appointments and succession plans should be based on merit and objective criteria and, within this context, should promote diversity of gender, social and ethnic backgrounds, cognitive and personal strengths.

• CEO transition: Page 157
• Diversity and inclusion: Page 162

Principle K: The board and its committees should have a combination of skills, experience and knowledge. Consideration should be given to the length of service of the board as a whole and membership regularly refreshed.

• Board composition: Page 158

Principle L: Annual evaluation of the board should consider its composition, diversity and how effectively members work together to achieve objectives.# Workspace Group PLC Annual Report and Accounts 2025 Strategic Report

Our Governance

Financial Statements

Additional Information

Individual evaluation should demonstrate whether each director continues to contribute effectively. Board performance review Pages 159 to 161 £2.368bn PROPERTY VALUATION 6% DECREASE IN MEDIAN HOURLY GENDER PAY GAP COMPARED TO 2023 13% ETHNIC MINORITIES IN EXECUTIVE AND SENIOR MANAGEMENT AS AT 31 MARCH 2025 125

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Our Governance

Financial Statements

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CHAIR’S INTRODUCTION TO GOVERNANCE CONTINUED

UK CORPORATE GOVERNANCE CODE 2018 CONTINUED

BOARD LEADERSHIP AND COMPANY PURPOSE

QUICK LINKS	Page
Our Board	127
Board and Committee meeting attendance	129

The Board provides the strong leadership required for Workspace to deliver resilient performance for its stakeholders.

Lawrence Hutchings
Chief Executive Officer

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BOARD LEADERSHIP AND COMPANY PURPOSE CONTINUED

DUNCAN OWEN

Non-Executive Chair

Appointed Board: July 2021. Chair: July 2023

Current external appointments
Duncan is Chair of Link PLC, Asia’s largest REIT. He is Chair of their Nominations Committee and the Finance and Investment Committee as well as a member of the Remuneration and Sustainability Committees. He is currently Chair of Sellar, the large-scale London developer and asset manager of schemes such as the Shard andPaddington Square, and he will be stepping down from this role in November 2025. Duncan isalso chair of the Oxford Science Park Ltd.

Relevant skills, business experience and contribution
Duncan has over 35 years’ of global experience in the real estate investment and development sector. He has a deep understanding of the central London Office sector and listed capital markets, including leadership of IPO and corporate acquisitions. He was previously a director of LaSalle Investment Management, on the board of Insight Investment, co-founder of Gatehouse Investment Management Limited, CEO of Invista Real Estate Investment Management plc and Global Head of Real Estate at Schroders PLC. Up until 2023, he was also CEO of Immobel Capital Partners. He was previously a member of the Board of Governors of the Church Commissioners and Chair of its Real Assets Investment Committee, and is a council member of the Royal College of Music. He is a member of the Royal Institution of Chartered Surveyors, sat on the policy committee of the BPF (British Property Federation) for 14 years and studied at INSEAD.

LAWRENCE HUTCHINGS

Chief Executive Officer

Appointed November 2024

Current external appointments
Lawrence does not have any current external appointments.

Relevant skills, business experience and contribution
Lawrence was Chief Executive Officer at Capital & Regional PLC from 2017-2024. Prior to that, hewas an Advisor and then Managing Director at Blackstone in Australia for five years, Managing Director, UK Retail at Hammerson PLC and Director (Property) European Retail at Henderson Global Investors. Lawrence brings an extensive background in all facets of property management, development, leasing, asset and fund management combined with corporate experience spanning his 30-year career, the majority of which has been spent in the UK and Europe.

DAVE BENSON

Chief Financial Officer

Appointed April 2020

Current external appointments
Dave does not have any current external appointments.

Relevant skills, business experience and contribution
Prior to joining Workspace, Dave was the Corporate Finance Director of Whitbread PLC. He previously held senior finance roles at Kier Group plc and Keller Group plc, having qualified as a Chartered Accountant with Deloitte. He has strong financial skills, having gained experience in a series of dynamic businesses as well as agood understanding of technology and itscommercial applications plus strong communication and leadership skills. He has experience in strategy development, infrastructure and development projects, corporate transactions, acquisitions and integrations, investor relations and detailed knowledge of risk management and internal control systems.

EXECUTIVE DIRECTOR

EXECUTIVE DIRECTOR

NON-EXECUTIVE CHAIR

Board meeting attendance
Page 129

Composition, skills and diversity of the Board
Page 163

R N G E
I D G E I D

OUR BOARD

Led by our Chair, Duncan Owen, the Board provides strategic leadership and direction for the Company. Collectively accountable to shareholders, the Board oversees the Company’s long-term success, ensuring alignment with our purpose, values, culture, strategy, and governance. It is responsible for setting the Company’s strategic aims, providing the leadership to put them into effect, supervising the management of the business, and reporting to shareholders on their stewardship. Details of individual attendance at Board meetings held during the year are set out on page 129. More information on the skills and the experience of the Board members can be found on page 163.

Committee membership key
E Executive
A Audit
R Remuneration
N Nominations
G ESG
I Investment
D Disclosure
Denotes chair of a committee

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ROSIE SHAPLAND

Senior Independent Non-Executive Director

Appointed November 2020
1 Appointed Senior Independent Director in February 2022 and Chair of the Audit Committee in July 2021.

Current external appointments
Rosie is a Non-Executive Director at Foxtons Group plc, where she is Senior Non-Executive Director, Chair of their Audit Committee, and a member of their Remuneration, Nomination and ESG Committees. She is a Non-Executive Director at PayPoint plc, where she is Chair of their Audit Committee and a member of their Nomination and Remuneration Committees.

Relevant skills, business experience and contribution
Rosie is a Chartered Accountant and was previously an audit partner at PwC. She has many years’ experience of operating within the finance sector as well as a broad range of public company board experience, in addition to experience of governance, risk management, investment and corporate transactions and strong financial skills.

LESLEY-ANN NASH

Independent Non-Executive Director

Appointed January 2021
1 Lesley-Ann was appointed Chair of the Remuneration Committee in September 2021.

Current external appointments
Lesley-Ann is a Non-Executive Director on the board of Homes England where she chairs their Nominations and Remuneration Committee, anda Non-Executive Director on the board oftheConfederation of British Industry.

Relevant skills, business experience and contribution
Lesley-Ann was previously a Director in the Cabinet Office of HM Government and a Managing Director at Morgan Stanley, as well ashaving previously worked at UBS and Midland Bank. She has deep global capital markets experience on both buy and sell sides, extensive knowledge of central and local government and experience of policy development, procurement and major programme delivery and a track record of promoting inclusion and diversity and delivering meaningful cultural change, as well as public company board experience. She also has deep financial fluency gained as a fellow of the Chartered Institute of Management Accountants (CIMA). She was also previously on the board of BusinessLDN, a Non-Executive Director of St. James’s Place plc and on the board of North London Hospice.

MANJU MALHOTRA

Independent Non-Executive Director

Appointed January 2022
1 Manju was appointed Chair of the ESG Committee on 1 April 2024.

Current external appointments
Manju is a Non-Executive Director at abrdn UK Smaller Companies Growth Trust plc, where she is Audit Committee Chair and a member of their Nomination Committee and a Non-Executive Director atSmiths News plc, on their Audit, Nominations and Remuneration Committees. She is also a Non-Executive Director at London & Partners, an international trade and investment agency for London.

Relevant skills, business experience and contribution
Manju was CEO at Harvey Nichols until 31 December 2023. Manju joined Harvey Nichols in 1998 and progressed through various roles, including CFO and co-COO, before her appointment as CEO. She has extensive experience in customer-focus, developing a values-led culture, strategy, operations, finance and technology. She is a Chartered Accountant.

NICK MACKENZIE

Independent Non-Executive Director

Appointed January 2022

Current external appointments
Nick is CEO at Greene King, the pub retailer and brewer.

Relevant skills, business experience and contribution
Prior to joining Greene King, Nick spent 17 years at Merlin Entertainments plc, having started his career in pubs at Bass plc and Allied Domecq. He was also previously a Non-Executive Director at Daniel Thwaites plc. He has significant expertise in strategy, real estate and business development and experience of public company boards. Nick is Chair of British Beer & Pub Association, on the advisory board of WiHTL and has sat on various Government councils representing the pub and hospitality sector.

NON-EXECUTIVE DIRECTOR
NON-EXECUTIVE DIRECTOR
NON-EXECUTIVE DIRECTOR
SENIOR INDEPENDENT NON-EXECUTIVE DIRECTOR

R N A G
R N A G
N A G
N G

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DAVID STEVENSON

Independent Non-Executive Director

Appointed June 2024

Current external appointments
David is a Non-Executive Director at listed funds Gresham House Energy Storage, Aurora and Castelnau. He is also a director at investor relations specialist Doceo.tv.# Relevant skills, business experience and contribution

David has been an investment columnist for the Financial Times for over 15 years and also writes regular columns for Citywire and Moneyweek, as well as for Investment Week and the Investor’s Chronicle in previous years. In addition, David has built up a number of media businesses, including corporate comms business The Rocket Science Group, fintech news service AltFi and most recently, www.etfstream.com, a fast-growing brand focused on the ETF industry.

BOARD MEMBERS MEETING ATTENDANCE

	Board	Audit	Remuneration	Nominations	ESG
Duncan Owen	7/7	–	5/5	1/1	4/4
Lawrence Hutchings	1 2/2	–	–	–	2/2
Graham Clemett	2 5/6	–	–	–	2/4
Dave Benson	7/7	–	–	–	4/4
Rosie Shapland	5 7/7	4/4	4	4/5	1/1
Lesley-Ann Nash	7/7	4/4	4	5/5	1/1
Manju Malhotra	7/7	4/4	4	–	1/1
Nick Mackenzie	7/7	–	–	1/1	4/4
David Stevenson	3 5/5	–	–	0/0	3/3

1. Lawrence Hutchings was appointed CEO with effect from 18 November 2024.
2. Graham Clemett stepped down as CEO on 18 November 2024 and stepped down from the Board on 31 January 2025. Graham did not attend the Board or ESG Committee meetings in January 2025.
3. David Stevenson was appointed as a Non-Executive Director with effect from 1 June 2024.
4. The Audit Committee meeting in January 2025 was a joint meeting with the ESG Committee.
5. Rosie Shapland was unable to attend one of the Remuneration Committee meetings due to personal reasons.

Appointed March 2010

Carmelina is Secretary to the Board and its Nominations, Remuneration, Audit and ESG Committees. She monitors compliance with procedures and provides advice on governance matters. At the direction of the Chair, she is responsible for making sure the Board receives accurate, timely and relevant information. She also coordinates the induction of new Board members and the provision of ongoing training and development of the Board. Carmelina’s other responsibilities include corporate governance, compliance with legislation and the administration of share schemes.

NON-EXECUTIVE DIRECTOR CARMELINA CARFORA Company Secretary

N G Workspace’s governance framework forms the foundation of all Board decisions, including our approach to strategic planning, risk management and operational execution. It ensures transparency, accountability and alignment with our long-term goals.

Carmelina Carfora
Company Secretary

Diversity and Inclusion at Workspace Pages 162 to 171

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Our Governance
Financial Statements
Additional Information

BOARD LEADERSHIP AND COMPANY PURPOSE CONTINUED
OUR BOARD CONTINUED

STRATEGY
ANNUAL STRATEGIC REVIEW

Relevant stakeholders
* CUSTOMERS
* PEOPLE
* INVESTORS
* PARTNERS AND SUPPLIERS
* COMMUNITIES
* ENVIRONMENT

The Board held its annual strategic review in September 2024. Members of the Executive Committee participated in the session, and external speakers were invited to present on selected topics of interest. The review covered elements of the Group’s strategy including brand communications and the composition of the investment portfolio.

APPROVAL OF REFRESHED STRATEGY

Relevant stakeholders
* CUSTOMERS
* PEOPLE
* INVESTORS
* PARTNERS AND SUPPLIERS
* COMMUNITIES
* ENVIRONMENT

Following Lawrence Hutchings’ appointment as CEO in November 2024, Lawrence and the Executive Committee held a series of workshops and meetings to review the Group’s strategy and consider potential improvements or refinements. The outcomes of these discussions were presented to the Board in March 2025. The refreshed strategy was formally approved by the Board and was shared with the market alongside the year-end results on 5 June 2025.

7

BOARD MEETINGS

Our strategy Pages 34 to 58

Page
Strategy 130
Operations 131
Purpose, values and culture 132
Stakeholders 133
Finance 137
Reporting 137
Risks 137
Succession 138
Governance 138

BOARD ACTIVITIES 2024/25

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BOARD LEADERSHIP AND COMPANY PURPOSE CONTINUED
STRATEGY CONTINUED

ASSET MANAGEMENT

Relevant stakeholders
* CUSTOMERS
* INVESTORS
* PARTNERS AND SUPPLIERS

The Board receives regular updates on asset management and leasing activity across the portfolio. This year, there has been a particular focus on targeted initiatives to enhance the customer experience. Read more about our customer engagement on pages 16 to 17 and 49.

PORTFOLIO VALUATION

Relevant stakeholders
* INVESTORS

The Board reviewed and approved the full and half-year valuations of the Group’s property portfolio in May and November 2024 respectively.

VALUER ROTATION

Relevant stakeholders
* INVESTORS

The Board reviewed and approved the appointment of Knight Frank as one of Workspace’s valuers. In line with the RICS policy on valuer rotation, Knight Frank will work alongside CBRE and, subject to a successful onboarding process, Knight Frank will begin formal valuations on a portion of the portfolio as part of the half year results in October 2025.

PORTFOLIO MANAGEMENT

Relevant stakeholders
* CUSTOMERS
* PEOPLE
* INVESTORS
* PARTNERS AND SUPPLIERS
* COMMUNITIES
* ENVIRONMENT

The Board has been kept informed on planned refurbishment and development projects across the portfolio. This year, key development projects have included Leroy House, The Biscuit Factory and The Chocolate Factory. Read more about these projects on pages 7 and 70. During the year the Board also approved the disposals of a number of non-core assets.

OPERATIONS
Sustainability performance Pages 74 to 85

SUSTAINABILITY AGENDA

Relevant stakeholders
* CUSTOMERS
* PEOPLE
* INVESTORS
* PARTNERS AND SUPPLIERS
* COMMUNITIES
* ENVIRONMENT

The Board ESG Committee serves as a dedicated forum for oversight and discussion of environmental, social and governance matters. This year, the Committee’s agenda included the launch of Leroy House, progress against the Group’s science- based targets on the path to net zero carbon, social value creation and a review of upcoming ESG-related laws and regulations. Throughout the year, the Board received regular updates from the sustainability team on the Group’s sustainability initiatives and reviewed assurance plans relating to ESG policies and procedures.

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BOARD LEADERSHIP AND COMPANY PURPOSE CONTINUED
BOARD ACTIVITIES 2024/25 CONTINUED

PURPOSE, VALUES AND CULTURE
PURPOSE

Relevant stakeholders
* CUSTOMERS
* PEOPLE
* INVESTORS
* PARTNERS AND SUPPLIERS
* COMMUNITIES
* ENVIRONMENT

Our purpose is to give businesses the freedom to grow. The Board sets the Group’s strategy, makes decisions and engages with stakeholders through the lens of our purpose. The Board has continued to monitor how our purpose is articulated and understood by our stakeholders. This is achieved through regular engagement using surveys, town halls and other means, more information on which can be found on pages 122 to 123. The Board also approves the Group’s key policies and practices to ensure they align with and support our purpose. The Executive Committee is responsible for communicating and embedding these policies throughout the business.

VALUES

Relevant stakeholders
* CUSTOMERS
* PEOPLE
* INVESTORS
* PARTNERS AND SUPPLIERS
* COMMUNITIES
* ENVIRONMENT

Our purpose informs our values: ‘know your stuff’, ‘show we care’, ‘find a way’ and ‘make it fun’. The Board encourages all employees to live our values in their day-to-day work, especially in how they interact with one another and with our stakeholders. Our CEO, Lawrence Hutchings, is part of the judging panel for our employee recognition programmes, such as the Workspace Winners, where employees are celebrated and rewarded for demonstrating one or more of our core values. This year, employees were awarded for going above and beyond to resolve issues for customers or help other teams during busy periods.

CULTURE

Relevant stakeholders
* CUSTOMERS
* PEOPLE
* INVESTORS
* PARTNERS AND SUPPLIERS
* COMMUNITIES
* ENVIRONMENT

Our culture is built on integrity, transparency, and openness, encouraging independent thinking and initiative. The Board recognises the vital role our culture plays in the Group’s success and sets the ‘tone from the top’ by modelling and promoting values-driven behaviour. It also oversees how the Executive Committee is embedding this culture throughout the organisation. Read more about how we monitor and embed culture on pages 122 to 123.

Our values Page 19

During a particularly busy period, I stepped in to support our energy team, working closely with them to identify some £40,000 of potential rebates. It was a great example of cross-team collaboration and gave me the opportunity to learn more about their work while providing meaningful support when it was needed most.

Aoife Murphy
Company Secretarial Assistant

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BOARD LEADERSHIP AND COMPANY PURPOSE CONTINUED
BOARD ACTIVITIES 2024/25 CONTINUED

STAKEHOLDERS
INVESTOR RELATIONS CALENDAR OF EVENTS 2024/2025

	Investor events	Investor meetings	Investor tours
2024 April	–	–	0
May	–	Kempen European real estate conference	6
June	–	Full-year results – Investor roadshow – Morgan Stanley European real estate conference	27
July	–	AGM & Q1 update	4
August	–	–	24
September	–	–	4
October	–	Q2 business update – Half-year results – Investor roadshow	2
December	–	–	4
2025 January	–	Q3 business update – Global real estate conference	8
February	–	–	2
March	–	Global real estate conference	11

INVESTOR ENGAGEMENT

Relevant stakeholders
* INVESTORS

Market engagement
We regularly engage with existing and prospective shareholders through an active investor relations programme.# BOARD LEADERSHIP AND COMPANY PURPOSE CONTINUED

BOARD ACTIVITIES 2024/25 CONTINUED

STAKEHOLDERS CONTINUED

The Board reviews a detailed bi-monthly investor relations report which includes notable views expressed by shareholders and wider market participants, alongside share register movements, broader sector and peer news and progress on various investor relations initiatives. Our Investor Relations team manages a comprehensive calendar of engagement. This includes formal announcements, the AGM, results presentations and roadshows, ad hoc equity and debt investor meetings (including institutional, private client and retail investors), equity sales team meetings, conferences, analyst and investor site tours, Capital Markets Days, business media outreach, and industry events. In addition, we maintain ad hoc contact with stakeholders to ensure our strategy and approach to value creation are well understood by the market and wider stakeholder community. See page 21 for details of the topics raised by investors. During 2024/25, we engaged with 215 institutional investors via one-to-one and group meetings; most were held in person, supplemented by virtual meetings. Investor meetings are attended by various senior executives, including the CEO, CFO, Chair and Executive Committee members, as well as the Corporate Communications and Investor Relations team and Group Financial Controller. Key investor engagement during the year included the following:
– 89 investor meetings (in-person and virtual)
– Eight sell-side analyst and buy-side investor site tours
– 13 real estate conferences attended globally
– AGM

Following his appointment as CEO, Lawrence Hutchings undertook a programme of engagement with our major shareholders to introduce himself and understand their views on the Company and its strategy. Duncan Owen has regularly engaged with shareholders following his appointment as Chair. All Committee Chairs are available to engage with shareholders as appropriate. If shareholders have any concerns, which cannot be resolved through the usual channels of communication with the CEO, CFO or Chair, or where such contact may be inappropriate, then our Senior Independent Director, Rosie Shapland, is available to address them. Contact details for our Investor Relations team, Company Secretary and Company Registrars can be found at the back of this Report as well as on our website.

Annual Report and Website

The Company’s Annual Report is available to all shareholders. Shareholders can opt to receive a printed copy by post or a PDF version via email, or to access it directly from our website. Shareholders who hold their shares through a nominee account and experience difficulty obtaining the Annual Report from their nominee provider, may contact the Company Secretary to request a copy. Our investor website is www.workspace.co.uk/investors. It contains our Annual Reports, half and full-year results presentations and our financial and dividend calendar for the upcoming year. Our website also outlines our company strategy, business model, property portfolio and it has a detailed section covering our ESG activities.

AGM

Our 2024 AGM was held on 25 July 2024 and all resolutions passed with over 95% of votes in favour. Our 2025 AGM will be held at the Company’s Eventspace venue at Salisbury House, 114 London Wall, EC2M 5QD on Wednesday 16 July 2025 at 11.00am and we look forward to welcoming our shareholders there. The Notice of Meeting, together with an explanation of the business to be dealt with at the Meeting, is included as a separate document sent to shareholders who have elected to receive hard copies of shareholder information and it is also available on the Company’s website.

Following shareholder engagement, since 2019 we have sought approval for a resolution authorising political donations up to £20,000 in aggregate. This year we are again proposing a resolution with an upper limit of £20,000 in aggregate. This resolution is proposed as a precaution to prevent the Company’s normal business activities being inadvertently caught by the broad definitions used in the relevant provisions of the Companies Act 2006. It remains the Company’s policy not to make political donations or incur political expenditure within the ordinary meaning of those terms and the Board has no intention of using the authority for that purpose.

In addition, and in line with the resolution approved at last year’s AGM, the Directors are again proposing a single resolution disapplying pre-emption rights for the 2025 Annual General Meeting that would apply only in very limited circumstances. The proposed disapplication resolution is limited to allotments and/or sales:
(i) in connection with pre-emptive offers and offers to holders of equity securities other than ordinary shares (if required by the rights of those securities or as the Directors otherwise consider necessary); and
(ii) in connection with the terms of any employees’ share scheme.

EMPLOYEE ENGAGEMENT

Relevant stakeholders • PEOPLE

The Board recognises the critical role our employees play in the success of the Group. By actively listening to our people, we not only support their needs and wellbeing, but also gain valuable insights into our customers. Throughout the year the Board engages with a broad range of employees across the business and reviews feedback, including the results of our annual employee survey. The Board and the Executive Committee review and approve key policies, practices and strategic decisions, making sure that they reflect our culture and align to the Group’s key values and purpose. See pages 122 to 123 for further details of how the Board monitors and embeds our culture.

Duncan Owen is our designated Non-Executive Director responsible for employee engagement, as the Board considers this the most effective method to ensure the employee voice is heard at the very top of the organisation. This year, we held three lunch sessions with employees. Duncan attends these sessions with one or more additional Non-Executive Directors. See pages 18 and 135 for further details of the Chair lunch sessions and topics raised. Duncan and the other Non-Executive Directors in attendance report back to the Board after every session to ensure the feedback gained from our staff is effectively communicated to the Board as a whole.

Throughout the year, the Board holds its meetings across the Company’s portfolio. The Strategy Day in September 2024 was held at The Print Rooms, the Board meeting in April was held at Centro Buildings and the Board meeting in July was held at Salisbury House.

• Employee engagement Pages 18 to 20
• Investor engagement Page 21

LISTENING TO THE EMPLOYEE VOICE

WHY WE DO IT

Our people deal with our customers on a daily basis so their perspective is invaluable.

HOW WE DO IT

Our staff lunch sessions with the Non-Executive Directors are an important opportunity for members of the Board to hear directly from employees. Our staff lunch sessions are an invaluable opportunity for me and my fellow Non-Executive Directors to engage directly with colleagues in an informal, open setting. These conversations allow us to better understand the views and experiences of our people and help to demystify the role of the Board and Non-Executive Directors. This year, we heard a clear interest from staff in learning more about our strategy. We shared that feedback with the Board and Executive Committee, and it was encouraging to hear that staff have since felt communication has improved. I always value the diverse perspectives our employees bring – each one offers a unique insight into life at Workspace.

Duncan Owen
Non-Executive Chair

I joined the lunch with Duncan Owen and Rosie Shapland at Leather Market in March 2025. The small group and relaxed setting made it much easier for me to speak up than I would have at a larger or more formal event – it felt more like a chat. I was able to share insights on what I am seeing in the market, and we discussed what prospective customers are looking for. It genuinely made me feel that the Board values my perspective and the views of all staff.

George Rawlings
Sales Manager

• Embedding and monitoring our culture Pages 122 to 123

BUSINESS RELATIONSHIP ENGAGEMENT

Relevant stakeholders • CUSTOMERS • PARTNERS AND SUPPLIERS

Positive relationships with our customers, suppliers and other business partners are essential to the Group’s ongoing success. Customer-facing teams provide daily feedback from customers while views from suppliers and partners are captured by dialogue with the relevant business team. These views are collated and fed back to the Board, and incorporated into decision making.

COMMUNITY AND ENVIRONMENT ENGAGEMENT

Relevant stakeholders • COMMUNITIES • ENVIRONMENT

All new Board members undergo an induction to understand the Group’s commitment to sustainability. Our Board-level ESG Committee creates a dedicated space for discussions on our progress towards sustainability goals and for reviewing key updates from the sustainability team. Additionally, the Board is regularly informed about our wellbeing initiatives, community impact projects, and fundraising efforts for our charity partners, which, during the year, was Single Homeless Project (SHP).

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133 Workspace Group PLC Annual Report and Accounts 2025
Strategic Report Our Governance Financial Statements Additional Information

89 Investor meetings

134 Workspace Group PLC Annual Report and Accounts 2025
Strategic Report Our Governance Financial Statements Additional Information

135 Workspace Group PLC Annual Report and Accounts 2025
Strategic Report Our Governance Financial Statements Additional Information# Workspace Group PLC Annual Report and Accounts 2025

Strategic Report

Our Governance

BOARD LEADERSHIP AND COMPANY PURPOSE CONTINUED

BOARD ACTIVITIES 2024/25 CONTINUED

FINANCE

STRUCTURE, FORECASTS, BUDGETS

• Relevant stakeholders: • INVESTORS
• The Board regularly reviews the Group’s financial structure and rolling forecasts, as well as discussing monthly performance information at each Board meeting. In April 2024, the Board approved the Group’s 2024/25 budget.

DIVIDEND PAYMENTS

• Relevant stakeholders: • INVESTORS
• The Board recommended the payment of the final dividend which was distributed to shareholders in August 2024 and also approved the payment of the interim dividend paid to shareholders in February 2025.

FINANCING

• Relevant stakeholders: • INVESTORS
• The Board discussed arrangements relating to the refinancing of the Group’s RCF and term loan. See page 72 for further details.

REPORTING RISKS

PRINCIPAL RISKS

• Relevant stakeholders: • CUSTOMERS • PEOPLE • INVESTORS • PARTNERS AND SUPPLIERS • COMMUNITIES • ENVIRONMENT
• The Board discussed the Group’s principal risks that could affect the implementation of the Group’s strategy and requested updates from the Chair of the Audit Committee on the key risk areas discussed during the year.
• Principal risks Page 86

EMERGING RISKS

• Relevant stakeholders: • CUSTOMERS • PEOPLE • INVESTORS • PARTNERS AND SUPPLIERS • COMMUNITIES • ENVIRONMENT
• The Board heard updates in November 2024 and March 2025 from the Chair of the Audit Committee and the CFO on emerging risks which have been highlighted and debated during meetings of the Audit Committee, including any new controls that have been identified and introduced to mitigate them.

FULL, HALF-YEAR AND TRADING STATEMENTS

• Relevant stakeholders: • INVESTORS
• The Board considered and approved the full and half-year results and trading statements. The Board also reviews the Annual Report, and in particular considers whether the Report as a whole is fair, balanced and understandable.

VIABILITY AND GOING CONCERN STATEMENTS

• Relevant stakeholders: • INVESTORS
• The Board reviewed the Company’s viability over the next five years and approved both the viability and going concern statements.
• Viability statement Pages 94 to 95
• Going concern statement Page 94

BOARD ACTIVITIES 2024/25 CONTINUED

SUCCESSION

• Relevant stakeholders: • CUSTOMERS • PEOPLE • INVESTORS • PARTNERS AND SUPPLIERS • COMMUNITIES • ENVIRONMENT
• Lawrence Hutchings joined the Board as CEO on 18 November 2024. On the same date, Graham Clemett stepped down as CEO, but continued to serve as an Executive Director until 31 January 2025 to facilitate a smooth transition.
• CEO SUCCESSION

INTERNAL PERFORMANCE REVIEW

• Relevant stakeholders: • CUSTOMERS • PEOPLE • INVESTORS • PARTNERS AND SUPPLIERS • COMMUNITIES • ENVIRONMENT
• The Board participated in an internal Board performance review, assisted by Fidelio. Read more on page 159.

NED FEES

• During the year, the Nominations Committee reviewed the fees payable to Non-Executive Directors. Following careful consideration, the Committee concluded that there should be no increase in Non-Executive Director fees this year. More details can be found on page 227.

DIVERSITY & INCLUSION

• Relevant stakeholders: • PEOPLE • INVESTORS
• The Board discussed and approved the Company’s gender pay gap report, which was published in March 2025 and can be found at https://www.workspace.co.uk/investors/about-us/governance/our-policies/gender-pay-gap-report. This year, our median hourly pay gap decreased by 6% to 21.01% and our mean hourly pay gap decreased by 5.2% to 29.39%.
• The Board reviewed and discussed the Company’s progress towards achieving its target of 16% ethnic diversity among the individuals within its Executive Committee and senior managers, by December 2027, in line with the Parker Review. See page 166 for more detail.
• The Board also discussed the formation of the Group’s new Diversity Action Group. See page 171 for more details.
• Diversity and inclusion Pages 162 to 171

REGULATORY AND LEGAL UPDATES

• Relevant stakeholders: • INVESTORS
• The Company’s legal advisers attended a meeting of the Board to provide an update on recent regulatory developments, which the Board discussed and considered. They will continue to attend Board meetings as required to provide relevant legal and regulatory updates.
• The Board also received regular legal and governance updates from the Company Secretary, including briefings on the amendments to the UK Listing Regime, the new UK Corporate Governance Code 2024, the new duty to prevent sexual harassment in the workplace and the forthcoming introduction of the new corporate offence of failure to prevent fraud.
• The sustainability team provided the Board with updates including, briefings on upcoming ESG-related regulatory changes.

COMMITTEE MEMBERSHIP AND TERMS OF REFERENCE

• Relevant stakeholders: • INVESTORS
• During the year, the Board considered the structure of its Committees as part of the Board performance review. The Board also considered the schedule of matters reserved to the Board (see page 149) and the terms of reference applicable to each Committee.

WORKFORCE POLICIES AND PRACTICES

• Relevant stakeholders: • PEOPLE
• The Board is responsible for approving all key policies and practices that may affect our employees and shape organisational behaviour. As part of this process, policies are regularly reviewed to ensure they align with the Group’s purpose, culture and values. The Board recently reviewed and approved a refreshed version of the Employee Handbook and Code of Conduct, which consolidates key policies and procedures applicable to all staff and reinforces the standards of behaviour expected across the business. The updated Handbook and Code of Conduct were distributed to employees in 2025.
• The Board recognises that effective and honest communication is essential to maintain our business values, and we encourage our employees to speak out if they witness any wrongdoing. This stance is reinforced in our whistleblowing procedures. Further information on the Group’s key compliance policies can be found on pages 96 to 98. All policies are available to employees on the Group’s intranet. All new employees are provided with training on our policies at induction sessions and we provide annual refresher training to all staff in key areas such as anti-bribery, data protection and cyber security.

SECTION 172(1) STATEMENT

The Board of Workspace Group PLC (‘the Board’) is required to act in good faith to promote the long-term success of the Company (and its Group) for the benefit of its shareholders, while having due regard to the matters set out in Section 172(1) of the Companies Act 2006. The Board has identified the Company’s key stakeholders to be its shareholders, employees, customers, suppliers, and local communities. The Board also considers the impact of operations on the environment to be of key importance.

The likely consequences of any decision in the long term
A. The need to act fairly as between members of the Company
B. The desirability of the Company maintaining a reputation for high standards of business conduct
C. The impact of the Company’s operations on the community and the environment
D. The need to foster the Company’s business relationships with suppliers, customers and others
E. The interests of the Company’s employees
F. The likely consequences of any decision in the long term

Key Board decisions Pages 141 to 142
Community and environment engagement Pages 23 to 26
Sustainability performance Pages 74 to 85
TCFD Pages 99 to 106
TNFD Pages 112 to 117
Employee engagement Pages 18 to 20 and 134 to 135
Diversity and inclusion Pages 162 to 171
Customer proposition Page 3
Customer and supplier engagement Pages 16 to 17, 21 to 22 and 136
Anti-bribery & corruption and modern slavery Page 98
Purpose, values and culture Pages 2, 19 and 122 to 123
Our business model Pages 2 to 9
Our strategy Pages 34 to 58
Dividend Page 68
Compliance policies Pages 96 to 98
Purpose, culture and values Pages 2, 19 and 122 to 123
Whistleblowing Page 98
Risk management and internal controls Pages 184 to 185
Shareholder engagement Pages 21 and 133 to 134
AGM Page 134

BOARD INFORMATION

BOARD DISCUSSION AND DECISION MAKING

• MONITORING – All members of the Board are aware of the Board’s responsibilities and their individual duties as Directors and the need to consider Section 172(1) factors, which are embedded in the Matters Reserved to the Board and Committee terms of reference.
• – The Board receives regular updates from the sustainability team on ESG matters (see pages 186 to 191).
• – The Board engages directly with employees and investors, and also receives feedback from the CEO and CFO on their meetings with investors, analysts and debt finance providers (see pages 133 to 134).

Our fundraising efforts for SHP have raised almost £245,000 over four years, a fantastic achievement that we’re incredibly proud of. This year, we reviewed and approved the Company’s new social impact strategy. For more details see page 58. Workspace staff litter picking in Kennington Park Truly hearing and understanding the views of our local communities is the foundation of building meaningful and lasting social value for all. Sonal Jain Head of Sustainability Community engagement Page 23 to 26 Business relationship engagement Pages 16 to 17 and 21 to 22 136 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information BOARD LEADERSHIP AND COMPANY PURPOSE CONTINUED BOARD ACTIVITIES 2024/25 CONTINUED FINANCE STRUCTURE, FORECASTS, BUDGETS DIVIDEND PAYMENTS Relevant stakeholders • INVESTORS The Board regularly reviews the Group’s financial structure and rolling forecasts, as well as discussing monthly performance information at each Board meeting. In April 2024, the Board approved the Group’s 2024/25 budget. Relevant stakeholders • INVESTORS The Board recommended the payment of the final dividend which was distributed to shareholders in August 2024 and also approved the payment of the interim dividend paid to shareholders in February 2025. FINANCING Relevant stakeholders • INVESTORS The Board discussed arrangements relating to the refinancing of the Group’s RCF and term loan. See page 72 for further details. REPORTING RISKS PRINCIPAL RISKS Relevant stakeholders • CUSTOMERS • PEOPLE • INVESTORS • PARTNERS AND SUPPLIERS • COMMUNITIES • ENVIRONMENT The Board discussed the Group’s principal risks that could affect the implementation of the Group’s strategy and requested updates from the Chair of the Audit Committee on the key risk areas discussed during the year. EMERGING RISKS Relevant stakeholders • CUSTOMERS • PEOPLE • INVESTORS • PARTNERS AND SUPPLIERS • COMMUNITIES • ENVIRONMENT The Board heard updates in November 2024 and March 2025 from the Chair of the Audit Committee and the CFO on emerging risks which have been highlighted and debated during meetings of the Audit Committee, including any new controls that have been identified and introduced to mitigate them. FULL, HALF-YEAR AND TRADING STATEMENTS VIABILITY AND GOING CONCERN STATEMENTS Relevant stakeholders • INVESTORS The Board considered and approved the full and half-year results and trading statements. The Board also reviews the Annual Report, and in particular considers whether the Report as a whole is fair, balanced and understandable. Relevant stakeholders • INVESTORS The Board reviewed the Company’s viability over the next five years and approved both the viability and going concern statements. Viability statement Pages 94 to 95 Going concern statement Page 94 Principal risks Page 86 137 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information BOARD LEADERSHIP AND COMPANY PURPOSE CONTINUED BOARD ACTIVITIES 2024/25 CONTINUED SUCCESSION INTERNAL PERFORMANCE REVIEW Relevant stakeholders • CUSTOMERS • PEOPLE • INVESTORS • PARTNERS AND SUPPLIERS • COMMUNITIES • ENVIRONMENT The Board participated in an internal Board performance review, assisted by Fidelio. Read more on page 159. NED FEES During the year, the Nominations Committee reviewed the fees payable to Non-Executive Directors. Following careful consideration, the Committee concluded that there should be no increase in Non-Executive Director fees this year. More details can be found on page 227. DIVERSITY & INCLUSION Relevant stakeholders • PEOPLE • INVESTORS The Board discussed and approved the Company’s gender pay gap report, which was published in March 2025 and can be found at https://www. workspace.co.uk/investors/ about-us/governance/ our-policies/gender-pay- gap-report. This year, our median hourly pay gap decreased by 6% to 21.01% and our mean hourly pay gap decreased by 5.2% to 29.39%. The Board reviewed and discussed the Company’s progress towards achieving its target of 16% ethnic diversity among the individuals within its Executive Committee and senior managers, by December 2027, in line with the Parker Review. See page 166 for more detail. The Board also discussed the formation of the Group’s new Diversity Action Group. See page 171 for more details. REGULATORY AND LEGAL UPDATES Relevant stakeholders • INVESTORS The Company’s legal advisers attended a meeting of the Board to provide an update on recent regulatory developments, which the Board discussed and considered. They will continue to attend Board meetings as required to provide relevant legal and regulatory updates. The Board also received regular legal and governance updates from the Company Secretary, including briefings on the amendments to the UK Listing Regime, the new UK Corporate Governance Code 2024, the new duty to prevent sexual harassment in the workplace and the forthcoming introduction of the new corporate offence of failure to prevent fraud. The sustainability team provided the Board with updates including, briefings on upcoming ESG-related regulatory changes. COMMITTEE MEMBERSHIP AND TERMS OF REFERENCE Relevant stakeholders • INVESTORS During the year, the Board considered the structure of its Committees as part of the Board performance review. The Board also considered the schedule of matters reserved to the Board (see page 149) and the terms of reference applicable to each Committee. WORKFORCE POLICIES AND PRACTICES Relevant stakeholders • PEOPLE The Board is responsible for approving all key policies and practices that may affect our employees and shape organisational behaviour. As part of this process, policies are regularly reviewed to ensure they align with the Group’s purpose, culture and values. The Board recently reviewed and approved a refreshed version of the Employee Handbook and Code of Conduct, which consolidates key policies and procedures applicable to all staff and reinforces the standards of behaviour expected across the business. The updated Handbook andCode of Conduct were distributed to employees in2025. The Board recognises that effective and honest communication is essential to maintain our business values, and we encourage our employees to speak out if they witness any wrongdoing. This stance is reinforced in our whistleblowing procedures. Further information on the Group’s key compliance policies can be found on pages 96 to 98. All policies are available to employees on the Group’s intranet. All new employees are provided with training on our policies at induction sessions and we provide annual refresher training to all staff in key areas such as anti-bribery, data protection and cyber security. GOVERNANCE CEO SUCCESSION Relevant stakeholders • CUSTOMERS • PEOPLE • INVESTORS • PARTNERS AND SUPPLIERS • COMMUNITIES • ENVIRONMENT Lawrence Hutchings joined the Board as CEO on 18 November 2024. On the same date, Graham Clemett stepped down as CEO, but continued to serve as an Executive Director until 31 January 2025 to facilitate a smooth transition. Diversity and inclusion Pages 162 to 171 138 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information BOARD LEADERSHIP AND COMPANY PURPOSE CONTINUED BOARD ACTIVITIES 2024/25 CONTINUED The need to act fairly as between members of the Company The desirability of the Company maintaining a reputation for high standards of business conduct The impact of the Company’s operations on the community and the environment The need to foster the Company’s business relationships with suppliers, customers and others The interests of the Company’s employees The likely consequences of any decision in the long term SECTION 172(1) STATEMENT The Board of Workspace Group PLC (‘the Board’) is required to act in good faith to promote the long-term success of the Company (and its Group) for the benefit of itsshareholders, while having due regard to the matters set out in Section 172(1) of the Companies Act 2006. The Board has identified the Company’s key stakeholders to be its shareholders, employees, customers, suppliers, and local communities. The Board also considers the impact of operations on the environment tobe of key importance. Key Board decisions Pages 141 to 142 A. B. C. D. E. F. Community and environment engagement Pages 23 to 26 Sustainability performance Pages 74 to 85 TCFD Pages 99 to 106 TNFD Pages 112 to 117 Employee engagement Pages 18 to 20 and 134 to 135 Diversity and inclusion Pages 162 to 171 Customer proposition Page 3 Customer and supplier engagement Pages 16 to 17, 21 to 22 and 136 Anti-bribery & corruption and modern slavery Page 98 Purpose, values and culture Pages 2, 19 and 122 to 123 Our business model Pages 2 to 9 Our strategy Pages 34 to 58 Dividend Page 68 Compliance policies Pages 96 to 98 Purpose, culture and values Pages 2, 19 and 122 to 123 Whistleblowing Page 98 Risk management and internal controls Pages 184 to 185 Shareholder engagement Pages 21 and 133 to 134 AGM Page 134 139 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information BOARD LEADERSHIP AND COMPANY PURPOSE CONTINUED BOARD INFORMATION BOARD DISCUSSION AND DECISION MAKING MONITORING – All members of the Board are aware of the Board’s responsibilities and their individual duties as Directors and the need to consider Section 172(1) factors, which are embedded in the Matters Reserved to the Board and Committee terms ofreference. – The Board receives regular updates from the sustainability team on ESG matters (see pages 186 to 191). – The Board engages directly with employees and investors, and also receives feedback from the CEO and CFO on their meetings with investors, analysts and debt finance providers (see pages 133 to 134).# SECTION 172(1) STATEMENT CONTINUED

BOARD LEADERSHIP AND COMPANY PURPOSE CONTINUED

Regular updates are provided to the Board by the Executive Committee and external advisers on engagement with a broader range of stakeholders including shareholders, customers, suppliers and the wider community (see page 133 to 136). Duncan Owen, Chair of the Board, alongside other Non-Executive Directors, holds focus groups with employees in his role as the designated Non-Executive Director for employee engagement (see page 135). A stakeholder impact analysis is conducted for key strategic decisions, outlining the anticipated effects on different stakeholder groups and identifying measures to mitigate any potential negative impacts. This analysis informs the Board’s discussions and decision-making process. Board decision making is supported by a range of inputs, including information presented to the Board, the knowledge and experience of its members, and regular updates from executive management and external advisers. The Board holds an annual strategy day focused on the Group’s long-term direction, emerging opportunities and risks, market trends, and strategic priorities. Where relevant, external speakers are invited to provide expert insight and context on specific topics. This session supports informed, forward-looking discussion and alignment. Further details can be found on page 130. The Board regularly considers the Company’s purpose, values and policies related to business conduct (see page 132). The Board and the Audit Committee oversee the Company’s risk management framework and the actions that are in place to mitigate risk in the short, medium and long term (see pages 184 to 185). The Board considers stakeholder interests when determining the level of dividend. The Board monitors the short, medium and long-term impact of key decisions through regular updates from the Executive Committee. Feedback and engagement from stakeholder groups is collated and used to inform future decision making.

HOW THE BOARD CONSIDERS SECTION 172(1) MATTERS

140 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information BOARD LEADERSHIP AND COMPANY PURPOSE CONTINUED SECTION 172(1) STATEMENT CONTINUED

KEY BOARD DECISIONS IN 2024/25

STRATEGY

DECISION
The Board approved the Group’s refreshed strategy in April 2025. The strategy targets operational excellence, with a focus on agility and adaptation to changing market conditions, to ensure Workspace can prepare for emerging opportunities to drive income and capital growth.

RELEVANT S172(1) DECISION CRITERIA
A F E D C B

RELEVANT STAKEHOLDERS
• EMPLOYEES
• CUSTOMERS
• SUPPLIERS
• INVESTORS
• COMMUNITIES

BALANCING STAKEHOLDER IMPACTS
The Board considered all stakeholders when discussing and approving the new strategy. The refreshed approach focuses first on customer retention and acquisition, driving occupancy and building a competitive platform that will allow the business to scale over the long term.

LINK TO STRATEGY
3.2.1.
1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities
3. Innovate to create future options

Read more on page 34

APPRENTICESHIPS

DECISION
We made the decision to support 16 apprenticeships during the year, reinforcing our commitment to fostering the growth and development of emerging talent. By investing in these opportunities, we are not only helping individuals build valuable skills but also contributing to the future of our industry.

RELEVANT S172(1) DECISION CRITERIA
A F E D C B

RELEVANT STAKEHOLDERS
• EMPLOYEES
• COMMUNITIES
• INVESTORS

BALANCING STAKEHOLDER IMPACTS
The initial investment needed for apprenticeships and training is far outweighed by the long-term benefits it brings to stakeholders. It creates development opportunities for current employees and supports our local communities by encouraging applications from a broader range of backgrounds. Over time, a diverse, skilled and motivated workforce will enable us to better serve our customers and generate greater social value.

LINK TO STRATEGY
3.2.1.
1. Enhance and expand the core business

Read more on page 81

ROTATION OF VALUERS

DECISION
The Board is committed to ensuring the Group remains in line with legal and regulatory requirements and guidance. In line with the RICS policy on valuer rotation, this year the Board approved the appointment of Knight Frank as Workspace’s valuer, alongside CBRE.

RELEVANT S172(1) DECISION CRITERIA
A F E D C B

RELEVANT STAKEHOLDERS
• INVESTORS

BALANCING STAKEHOLDER IMPACTS
In assessing the results of the tender process, the Board concluded that including Knight Frank on our panel of valuers achieved the appropriate balance between providing assurance to investors on the integrity and robustness of our valuation, while retaining CBRE who have an extensive understanding of the business.

LINK TO STRATEGY
3.2.1.
1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities

Read more on page 131

The likely consequences of any decision in the long term.
B The interests of the Company’s employees.
C The need to foster the Company’s business relationships with suppliers, customers and others.
D The impact of the Company’s operations on the community and the environment.
E The desirability of the Company maintaining a reputation for high standards of business conduct.
F The need to act fairly as between members of the Company.

Some of the key decisions considered by the Board in 2024/25, and how the Board had regard to Section 172(1) matters when discussing them, are outlined to the right and on the following page.

141 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information BOARD LEADERSHIP AND COMPANY PURPOSE CONTINUED

REFINANCING

DECISION
The Board is focused on ensuring that the Group maintains the appropriate level of debt financing to achieve its strategy. This informed the Board decision this year to approve the refinancing of our £135m revolving credit facility and £80m term loan.

RELEVANT S172(1) DECISION CRITERIA
A F E D C B

RELEVANT STAKEHOLDERS
• INVESTORS
• DEBT FINANCE PROVIDERS
• EMPLOYEES
• CUSTOMERS
• SUPPLIERS

BALANCING STAKEHOLDER IMPACTS
The refinancing provided additional liquidity to fund our strategy for the benefit of all stakeholders as well as increasing the average maturity of debt. The loans continue to have an ESG-linked margin adjustment, re-affirming our commitment to sustainable growth.

LINK TO STRATEGY
3.2.1.
1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities

DISPOSALS

DECISION
Maintaining the right mix of buildings in the portfolio is vital to ensuring we meet the needs of our customers. Throughout the year, the Board approved the sale of several low conviction assets.

RELEVANT S172(1) DECISION CRITERIA
A F E D C B

RELEVANT STAKEHOLDERS
• INVESTORS
• COMMUNITIES

BALANCING STAKEHOLDER IMPACTS
This decision balanced the impacts of a change of ownership on staff, customers, and suppliers at those sites, with the overall benefit to all stakeholders of investing in our higher conviction properties and maintaining an optimal mix of buildings in our portfolio.

LINK TO STRATEGY
3.2.1.
2. Transform and prepare for emerging opportunities

IN-DEPTH: LEROY HOUSE

DECISION
The Board supports the Group’s net zero carbon pathway. The launch of Leroy House this year, our first net zero carbon building, demonstrates the Board’s commitment to this target.

RELEVANT S172(1) DECISION CRITERIA
A F E D C B

RELEVANT STAKEHOLDERS
• EMPLOYEES
• CUSTOMERS
• SUPPLIERS
• INVESTORS
• COMMUNITIES

LINK TO STRATEGY
3.2.1.
2. Transform and prepare for emerging opportunities

SUSTAINABILITY IN EVERYTHING WE DO

FOCUS ON NET ZERO

Developing Leroy House as a Net Zero building

Developing a fully net zero building involved a greater degree of investment than other buildings, but the Board were clear that Leroy House would be likely to have a significant positive impact on our stakeholders in the long term.

BALANCING STAKEHOLDER IMPACTS

• Environment – By opting to retrofit rather than rebuild, and making thoughtful choices in design and materials, the project reduced embodied carbon by 40% compared to industry best practices. As a result, Leroy House is a net-zero carbon in construction building, demonstrating our commitment to sustainability and environmental responsibility.
• Customers – Preserving 90% of the existing structure, the development allowed the architectural heritage and character to be blended with the modern space our customers want. 90% of our customers view sustainability as key to their business and over 75% have set their own emissions reduction targets. The customer-led design of Leroy House harnesses natural ventilation to reduce energy consumption and enhance temperature control for customer comfort, while the smart building energy management system and well planned waste management system allows customers to actively manage their energy consumption and eliminate single-use items.
• Suppliers – Over 25% of the project spend was directed to local suppliers.
• Communities – Leroy House is designed to be a vibrant community hub, with a large public amenity space and café, which is open to both customers and members of the local community. A collaboration with The eXceL Project charity delivered a community upskilling programme which included youth work provisions, mentoring and job readiness training.
• Investors – Given how key sustainability is to Workspace’s customers, Leroy House is designed to meet customer demand and occupancy for the long term.# Workspace Group PLC Annual Report and Accounts 2025

Strategic Report

Our Governance

Financial Statements

Additional Information

BOARD LEADERSHIP AND COMPANY PURPOSE CONTINUED

KEY BOARD DECISIONS IN 2024/25 CONTINUED

DIVISION OF RESPONSIBILITIES

The clear separation of executive and non-executive roles is a key pillar of our governance framework. It ensures independent oversight at Board level, while also creating space for the voices of employees to be heard. This structure supports well-informed, balanced decision making and helps us maintain the highest standards of integrity, transparency and governance.

Carmelina Carfora
Company Secretary

QUICK LINKS
* Page
* Board roles and responsibilities 144
* Our governance framework 146
* How we govern 147

BOARD ROLES AND RESPONSIBILITIES

BOARD OF DIRECTORS

• Duncan Owen
  • Non-Executive Chair
• Lawrence Hutchings
  • Chief Executive Officer
• Dave Benson
  • Chief Financial Officer
• Rosie Shapland
  • Non-Executive Director
• Lesley-Ann Nash
  • Non-Executive Director
• Manju Malhotra
  • Non-Executive Director
• Nick Mackenzie
  • Non-Executive Director
• David Stevenson
  • Non-Executive Director
• Carmelina Carfora
  • Company Secretary

Board of Director’s biographies Pages 127 to 129

NON-EXECUTIVE CHAIR: DUNCAN OWEN

• Leading the effective operation and governance of the Board.
• Setting agendas which support efficient and balanced decision making.
• Ensuring the Board plays a full and constructive part in the development of the Group’s strategy and making sure that there is sufficient time for boardroom discussion.
• Ensuring effective Board relationships and fostering a culture that supports constructive debate.
• Facilitating the effective contribution of the Non-Executive Directors and monitoring that all Directors receive accurate, timely and clear information.
• Overseeing the annual Board performance review and identifying key actions required.
• With the Nominations Committee, ensuring the Board remains appropriately balanced to deliver the Group’s strategic objectives and confirming that the Nominations Committee meets the requirements of good corporate governance.
• Promoting effective engagement with the Group’s shareholders and other key stakeholders.
• Leading initiatives to assess the culture across Workspace and ensuring that the Board sets the correct tone.
• Reviewing, with the Board, diversity and inclusion initiatives.
• The Chair is not involved in an executive capacity with any of the Group’s activities.

DESIGNATED NON-EXECUTIVE DIRECTOR FOR EMPLOYEE ENGAGEMENT: DUNCAN OWEN

• Representing the Board, alongside other Non-Executive Directors, in discussions with employees and communicating Board decisions on specific matters.
• Developing, implementing and reporting back on employee engagement initiatives in conjunction with management.
• Communicating to employees the outcomes and the developments made by the Board on specific matters.

SENIOR INDEPENDENT DIRECTOR: ROSIE SHAPLAND

• Providing an alternative communication channel for shareholders and other stakeholders, if required, and being available to meet with investors on request.
• Providing a sounding board for the Chair.
• If necessary, deputises for the Chair in his absence and counsels all Board colleagues.
• Acts as an intermediary for Non-Executive Directors when necessary.
• At least annually, leads a meeting of the Non-Executive Directors without the Chair present, to appraise the Chair’s performance and to address any other matters which the Directors might wish to raise. The outcomes of these discussions are then conveyed to the Chair.

INDEPENDENT NON-EXECUTIVE DIRECTORS: ROSIE SHAPLAND, LESLEY-ANN NASH, MANJU MALHOTRA, NICK MACKENZIE AND DAVID STEVENSON

• Constructively challenging and assisting in the development of strategy.
• Scrutinising, measuring and reviewing the performance of the Executive Directors and senior management against agreed performance objectives.
• Promoting the highest standards of integrity and corporate governance.
• Reviewing the succession plans for the Board and key members of senior management.
• Determining appropriate levels of remuneration for the senior executives.
• Reviewing the integrity of financial reporting and the effectiveness of risk management systems and internal controls.
• Serving on or chairing various Committees of the Board.

DIVISION OF RESPONSIBILITIES CONTINUED

BOARD ROLES AND RESPONSIBILITIES

The roles and responsibilities of the Chair and the Chief Executive Officer are separate, with a clear division of responsibilities between them. The Chair is responsible for the leadership of the Board, and the Chief Executive Officer manages and leads the business. Our governance framework can be found on page 146. In addition, the role specifications described on the following pages set out the clear division of responsibility between Executive and Non-Executive members of the Board.

EXECUTIVE

CHIEF EXECUTIVE OFFICER: LAWRENCE HUTCHINGS

• Proposing and directing the delivery of strategy, as agreed by the Board, through leadership of the Group’s Executive Committee.
• Responsible for leading and managing the business and accountable to the Board for the financial and operational performance of the Group.
• Leading the Group’s Executive Committee in the day-to-day running of the Group’s business in order to execute objectives successfully.
• Reviewing the Group’s organisational structure and recommending changes as appropriate.
• Setting overall policies for recruitment, management, staff development and succession planning and providing updates to the Remuneration Committee.
• Overseeing employee initiatives, diversity and inclusion, and employee wellbeing.
• Together with the Chair and the CFO, representing the Company to its customers, suppliers, shareholders and other stakeholders.
• Leading on the Group’s sustainability strategy and the Group’s net zero carbon pathway.
• Corporate communications and the IR strategy.

CHIEF FINANCIAL OFFICER: DAVE BENSON

• Supports the CEO in developing the strategic direction of the Group and works closely with the CEO and the Board to develop and implement the Group’s strategy.
• Provides financial leadership to the Group and aligns the Group’s business and financial strategy and management of the Company’s capital structure.
• Responsible for financial planning and analysis, treasury and tax.
• Leads and monitors the effectiveness of the key finance functions and facilitates the appropriate development of the finance team.
• Responsible for the IT function and coordinates and delivers IT projects to support the growth and strategic priorities of the Group.

COMPANY SECRETARY: CARMELINA CARFORA

• Secretary to the Board and to the Board’s Committees.
• Responsible for ensuring compliance with Board procedures and for supporting the Chair.
• Advising and keeping the Board updated on corporate governance developments.
• Ensuring that the Board has high-quality information, adequate time and the appropriate resources.
• Considering the Board’s effectiveness in conjunction with the Chair.
• Facilitating the Directors’ induction programmes and assisting with their professional development.
• Providing advice, services and support to all Directors as and when required.
• Responsible for organising the Annual General Meeting.

DIVISION OF RESPONSIBILITIES CONTINUED

BOARD ROLES AND RESPONSIBILITIES CONTINUED

Executive Committee

Pages 150

The Executive Committee is accountable for executing the Company’s strategy and the day-to-day management of the business.

KEY RESPONSIBILITIES:

• Reviews succession plans for the Board and its Committees and considers its structure, size, composition and diversity
• Supports the development of an inclusive and diverse talent pipeline, and reviews supporting initiatives to increase diversity
• Monitors that the Board has the appropriate knowledge, skills and experience to operate effectively and deliver our strategy
• Recommends to the Board the appointment of a Non-Executive Director for employee engagement

KEY RESPONSIBILITIES:

• Oversees the Group’s financial reporting
• Maintains and manages the relationship with the External Auditor, including monitoring their performance and reappointment
• Reviews and monitors management of risks other than those related to real estate, development and valuation, which are reviewed by the Board

KEY RESPONSIBILITIES:

• Oversees the Group’s ESG strategy
• Monitors ESG risk and opportunities
• Sets ESG objectives and monitors progress against the objectives
• Ensures reporting of ESG issues is in line with market best practice
• Evaluates the establishment and effectiveness of appropriate ESG-related policies and procedures
• Informs the workings of other Board Committees with ESG considerations

KEY RESPONSIBILITIES:

• Determines the Remuneration Policy for Executive Board Directors and considers whether there is a clear link between performance and remuneration
• Considers senior management remuneration presented by the CEO
• Reviews workforce remuneration and related policies
• Reviews remuneration policies and practices to ensure they support clarity, simplicity, transparency and alignment with culture

Pages 153 to 171
Pages 172 to 185
Pages 186 to 191
Pages 192 to 230

The terms of reference of each Board Committee are available on the Company’s website at www.workspace.co.uk/investors/about-us/governance/committee-terms-of-reference.# HOW WE GOVERN

The Group’s governance framework supports the development of good governance practices across the Group. The Board has overall responsibility for governance within the Group. The Board delegates certain of its responsibilities to its Nominations, Audit, ESG and Remuneration Committees. Further details of the work, composition, role and responsibilities of these Committees are provided in separate reports on pages 153, 172, 186 and 192. Each of the Committees has terms of reference which were reviewed by the Committees and the Board during the year. The performance of each of the Committees is assessed annually as part of the performance review process described later in this report. The Board delegates responsibility for day-to-day operational matters to the Executive Committee, except for matters specifically reserved to the Board. The schedule of matters reserved for the Board is reviewed at least annually and is available on the Company website at https://www.workspace.co.uk/investors/about-us/governance/board-responsibilities. Further information on the matters reserved and the relationship between the Board and the Executive Committee can be found on page 149.

OUR GOVERNANCE FRAMEWORK

Nominations Committee

Chaired by Duncan Owen
MEMBERSHIP: 6 Non-Executive Directors

Audit Committee

Chaired by Rosie Shapland
MEMBERSHIP: 3 Non-Executive Directors

ESG Committee

Chaired by Manju Malhotra
MEMBERSHIP: 8 Directors

Remuneration Committee

Chaired by Lesley-Ann Nash
MEMBERSHIP: 3 Non-Executive Directors

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NON-EXECUTIVE DIRECTORS

The Non-Executive Directors have a broad mix of business skills, knowledge and experience gained across a range of businesses. This diverse expertise enables them to provide independent and external perspectives to Board discussions. The Non-Executive Directors play a vital role in providing constructive challenge to the Executive team. They actively contribute to shaping the Company’s strategy and play a key role in monitoring performance, ensuring accountability and alignment with long-term objectives.

Independence of Non-Executive Directors

During the year, the Board considered the independence of all the Non-Executive Directors, save for the Chair who was deemed independent by the Board at the date of his appointment. The Board has reconfirmed that the Non-Executive Directors remain independent from executive management and that the Non-Executive Directors are free from any business or other relationship which could materially interfere with the exercise of their independent judgement. This independence is protected by a number of mechanisms including:

• Meetings between the Chair and the Non-Executive Directors, individually and collectively, without the Executive Directors being present. These meetings are typically held before each Board meeting and they are used to discuss areas relevant to the operation of the Board and the Group in a more private setting. This year, seven of these meetings were held.
• Separate and clearly defined roles for the Chair, as head of the Board, and the Chief Executive Officer, as head of executive management, as set out on pages 144 to 145.

Time commitment and external appointments

The expected time commitment of the Chair and the Non-Executive Directors is agreed and set out in writing in the letter of appointment to the position. At the time of appointment the existing external demands on an individual’s time are assessed to confirm that individual’s capacity to take on the role. Further appointments which could impair the ability to meet the expected time commitment (including appointments to other public company boards) can only be accepted following approval of the Board. When evaluating additional public company directorships that a Non-Executive Director may wish to take on, the Board considers the number of existing public company directorships held by the individual and the anticipated time commitment for those roles (see pages 127 to 129).

Board biographies

Pages 127 to 129

DIVISION OF RESPONSIBILITIES CONTINUED

NON-EXECUTIVE DIRECTORS CONTINUED

ELECTION AND RE-ELECTION OF DIRECTORS

Executive Directors may accept a non-executive role at another company with the approval of the Board. In both cases, the Board considers guidance published by institutional investors and proxy advisers as to the maximum number of public appointments which can be managed both effectively and efficiently. The Board is satisfied that each of the Non-Executive Directors can devote sufficient time to the Company’s business to discharge their responsibilities effectively. The Non-Executive Directors offer strategic guidance to Board discussions and they provide independent input to their respective Board and Committee duties (see the table on page 129 for Board meeting attendance).

In accordance with the Code, all of the Directors will submit themselves for election or re-election at the AGM on 16 July 2025. Following the Board performance review, detailed on pages 159 to 160, and taking into account the Directors’ skills and experience (set out on page 163) and the reasons why their contributions are important for the Company’s long-term sustainable success, the Board believes that the election or re-election (as applicable) of the Directors is in the best interests of the Company. The Board has considered their commitments and it has concluded that the Non-Executive Directors have sufficient time to meet their Board responsibilities. The explanatory notes in the Notice of Meeting for the AGM also state the reasons why the Board believes that the Directors proposed for election or re-election at the AGM should be reappointed.

Mr Hutchings and Mr Benson each have service contracts, details of which can be found on page 228. None of the Non-Executive Directors have service contracts. The Non-Executive Directors are given letters of appointment. The appointments of Rosie Shapland, Lesley-Ann Nash, Manju Malhotra, Nick Mackenzie and David Stevenson may be terminated by either the Company, or any one of them, giving three months’ notice in writing. The appointment of Duncan Owen may be terminated by either him or the Company giving six months’ notice in writing. The terms and conditions of appointment of the Non-Executive Directors, including the expected time commitment, are available for inspection at the Company’s registered office.

Annual General Meeting
Page 134

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DIVISION OF RESPONSIBILITIES CONTINUED

HOW WE GOVERN CONTINUED

BOARD OF DIRECTORS

The Board is responsible for contemplating market trends and their impact on our strategy, assessing appropriate levels of risk and setting the objectives for the business, including the approach to ESG matters.

KEY RESPONSIBILITIES:

• Review and approval of the Group’s strategy, business objectives and annual budgets.
• Approval of the Group’s dividend policy and the payment and recommendation of interim and final dividends.
• On the advice of the Audit Committee, approval of full-year and half-year results, including the review and approval of the going concern basis of accounting and the viability assessment.
• Review of the health and safety performance across the Group.
• On the advice of the Nominations Committee, reviewing succession plans for the Board and the senior management team.
• Review and approval of corporate transactions.
• Setting the Group’s purpose, values and standards.
• Approval of decisions likely to have a material impact on the Company or Group from any perspective, including, but not limited to, financial, operational, strategic or reputational.
• Setting the risk appetite and tolerance of the Group.

THE EXECUTIVE COMMITTEE

The Executive Committee is responsible for managing the business, making day-to-day operational decisions and delivering the strategy set by the Board.

KEY RESPONSIBILITIES:

• Develop the Group’s strategy and budget for approval by the Board.
• Receive regular feedback from centre staff and take responsibility for implementing suggestions for improvements.
• Collectively responsible for the day-to-day running of the business.
• Analyse and review initiatives of particular interest to the Group and present these to the Board as appropriate.
• Monitor operational and financial results against plans and budgets.
• Review and approve capital expenditure within the authorities delegated by the Board.

HOW WE GOVERN CONTINUED

DIVISION OF RESPONSIBILITIES CONTINUED

62.5% INDEPENDENT NON-EXECUTIVE DIRECTORS

Page
Non-Executive Directors
147

Election and re-election of Directors
148

Relationship between the Board and the Executive Committee
149

Composition of the Executive Committee
150

Information and support to the Board
151

Workspace Group PLC Annual Report and Accounts 2025
Strategic Report | Our Governance | Financial Statements | Additional Information

The Disclosure Committee identifies and controls inside information or information that could become inside information and determines how and when that information is disclosed in accordance with applicable legal and regulatory requirements.

Supporting Committees
The Executive Committee operates a number of operational and supporting Committees that provide oversight on key business activities and risks, ensuring effective governance and strategic decision making.

Board of Directors
The role of the Board is to drive the long-term success of Workspace by defining a clear purpose and setting the Group’s strategy to deliver sustained value to our shareholders and other stakeholders. The Board delegates certain matters to its four principal Committees:

Our governance framework supports the development of good governance practices across the Group. The Board has overall responsibility for governance within the Group. The Board delegates certain of its responsibilities to its Nominations, Audit, ESG and Remuneration Committees. Further details of the work, composition, role and responsibilities of these Committees are provided in separate reports on pages 153, 172, 186 and 192. Each of the Committees has terms of reference which were reviewed by the Committees and the Board during the year. The performance of each of the Committees is assessed annually as part of the performance review process described later in this report. The Board delegates responsibility for day to day operational matters to the Executive Committee, except for matters specifically reserved to the Board. The schedule of matters reserved for the Board is reviewed at least annually and is available on the Company website at https://www.workspace. co.uk/investors/about-us/ governance/board- responsibilities. Further information on the matters reserved and the relationship between the Board and the Executive Committee can be found on page 149.

Workspace Group PLC Annual Report and Accounts 2025

Strategic Report

Our Governance

DIVISION OF RESPONSIBILITIES CONTINUED

HOW WE GOVERN CONTINUED

THE RELATIONSHIP BETWEEN THE BOARD AND THE EXECUTIVE COMMITTEE

The Board considers there to be an appropriate balance between Executive and Non-Executive Directors required to lead the business and safeguard the interests of shareholders. As at 31 March 2025, the Board comprised the Chair, five Non-Executive Directors (all of whom are independent) and two Executive Directors. This composition meets the requirement of the Code for at least half the Board, excluding the Chair, to be independent Non-Executive Directors.

The Board delegates all operational matters to the Executive Committee except for the matters reserved to the Board.

Executive Committee – managing the business

Chaired by Lawrence Hutchings, the Executive Committee supports the Board by overseeing the implementation of Workspace’s strategy and managing the Group’s day-to-day operations. This structure ensures effective execution of strategic objectives and operational efficiency. The Executive Committee is accountable to the Board for implementation of the agreed strategy.

OUR STRATEGY

Pages 34 to 58

AS AT THE DATE OF THIS REPORT, THE BOARD COMPRISES EIGHT PEOPLE

The Chair, five Non-Executive Directors and two Executive Directors

EMBEDDING OPERATIONAL EXCELLENCE

1. Enhance and expand the core business Pages 36-45
2. Transform and prepare for emerging opportunities Pages 46-55
3. Innovate to create future options Pages 56-58

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DIVISION OF RESPONSIBILITIES CONTINUED

HOW WE GOVERN CONTINUED

| | \

BOARD SKILLS AND DIVERSITY

Page 163

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BOARD PRESENTATIONS

Employees below Board level are regularly invited to present to the Board on operational topics. This year, this included:

• Presentations on the Group’s strategy, presented by the Head of Portfolio Management, Director of Strategy and Corporate Development and Chief Customer Officer;
• A number of updates on investor relations by our Director of Strategy & Corporate Development;
• Updates on our brand strategy from our Chief Customer Officer;
• Updates on our social impact programme from the Director of People & Culture;
• Feedback from our annual customer survey, presented by our Customer Insight Manager;
• Sustainability updates from our Head of Sustainability; and
• Updates on IT systems and cyber security.

EMPLOYEE ENGAGEMENT

The Chair, alongside other Non-Executive Directors, held several meetings with staff as part of his role as Non-Executive Director responsible for employee engagement. Our annual employee survey also collected feedback from staff during the year, and the Executive Committee reported to the Board on key themes. Further details on these and the Group’s other employee engagement initiatives during the year can be found on pages 18, 134 to 135 and 214. Feedback from these initiatives was then presented to the Board. The CEO also sends out weekly emails to all staff, providing updates on initiatives and activity across the Company.

DIVISION OF RESPONSIBILITIES CONTINUED

HOW WE GOVERN CONTINUED

Information and support to the Board

The Board and its Committees receive comprehensive papers in a timely manner, ensuring members are well prepared for formal meetings and other key discussions. The CEO and CFO keep the Board appraised of business matters relating to the Group on a timely basis. They provide various updates to the Board on many aspects of the business, ranging from trading performance, progress being made on our refurbishment and redevelopment projects, the rationale for acquisitions and disposals and how these are aligned to strategy. The CEO and CFO also inform the Board on the discussions held with analysts, investors and other stakeholders.

The Chair of each Committee separately engages with Executive Committee members and other staff relevant to their roles, and relevant external advisers. The Company Secretary and external advisers periodically update the Board on regulatory changes. This year, these have included implementation of the new 2024 UK Corporate Governance Code, amendments to the UK Listing Rules, the new duty to prevent sexual harassment of employees and the new corporate offence of failure to prevent fraud, as well as updates on forthcoming ESG laws, regulations and guidance. Slaughter and May also provided an update to the Board in March 2025 on several matters including cyber security and the market abuse regime.

The Board utilises an electronic Board paper system which provides immediate and secure access to Board papers and materials. Prior to each Board meeting, the Directors receive the agenda and supporting papers through this system meaning that they have the latest and most relevant information in advance of the meeting. After each Board meeting, the Company Secretary operates a comprehensive follow-up procedure to enable actions to be completed as agreed.

The Directors have access to the advice of the Company Secretary, Carmelina Carfora. Her biography can be found on page 129. At the direction of the Chair, Carmelina is responsible for advising the Board on matters of corporate governance and compliance with Board procedures.

SENIOR MANAGEMENT MEETINGS SCHEDULED BOARD INPUTS 2024/2025

One-to-one meetings are held between new Directors and senior management as part of the induction process. The CEO and the CFO also regularly meet with senior management individually and at team meetings to discuss operations and performance, after which the CEO and/or the CFO will report back to the Board on matters that require discussion.

• 7 Board meetings
• 12 Presentations
• 3 Staff breakfast and lunch sessions

INFORMATION FLOW TO THE BOARD

AD HOC BOARD INPUTS IN 2024/25

Presentations from brokers | Updates on strategy development | Updates from legal advisers

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The Board discharges its responsibilities through an annual programme of Board and Committee meetings which are scheduled throughout the year, with main meetings timed around the Group’s financial calendar. Additional meetings are convened to consider an annual cycle of topics, including the annual strategy day, key management and financial updates, review of risk as well as the approval of acquisitions and refurbishment programmes. In the year ended 31 March 2025, the Board met formally on eight occasions, including a strategy day in September 2024. Supplementary meetings or conference calls are held between formal Board meetings as required.

THE EXECUTIVE COMMITTEE

| | | # HOW WE GOVERN CONTINUED

During the year, the Board engaged with the Group’s advisers. Presentations were delivered by the Group’s brokers Stifel in July 2024 and JP Morgan in September 2024. In addition, the Group’s corporate legal advisers, Slaughter and May, provided an update on key trends and developments in March 2025. The Group’s property valuer, CBRE, presented to the Board in May 2024 and November 2024. The CBRE presentation covered the valuation of the property portfolio and the wider market in which the Group operates. Directors are expected to attend all meetings of the Board, the Committees on which they serve and the AGM. They are also expected to dedicate sufficient time to the Group’s affairs, to enable them to effectively discharge their responsibilities as Directors. Should the Directors be unable to attend meetings, they would be provided with papers to allow them to make their views known to the Chair ahead of that meeting. Prior to each Board meeting, and periodically, the Chair meets the Non-Executive Directors without the Executive Directors present, and maintains regular contact with the CEO, CFO and other members of the management team. If any Director has concerns regarding the running of the Group or any proposed actions that cannot be resolved, these concerns are documented in the Board minutes. No such concerns were raised during the year under review.

DIVISION OF RESPONSIBILITIES CONTINUED

With the ever-changing environment in which Workspace operates, it is important that the Board maintains a good working knowledge of the property industry and how the Group operates within its sector, as well as remaining aware of recent and upcoming developments in the wider legal and regulatory environment. Directors attend external seminars and briefings in areas considered appropriate for their own professional development. This training is designed to build upon the diverse range of experience that each Director brings to the Board. The Company Secretary provides regular updates on legal, regulatory and corporate governance matters. As required, Workspace invites external professional advisers to provide training and updates on their specialist areas. Updates and training are not solely reserved for legislative developments but they aim to cover a range of issues including, but not limited to, market trends, the economic and political environment, ESG, technology and social considerations. The Directors are invited to identify areas in which they would like additional information or training, following which the Company Secretary will arrange for the necessary resources to be put in place. The resulting sessions may be internally or externally facilitated. Over the course of this year, the Directors have been provided with updates on the following areas:

• Governance and regulatory developments, including the new Corporate Governance Code 2024, the amended UK Listing Rules, the new duty to prevent sexual harassment of employees and the new corporate offence of failure to prevent fraud.
• Cyber security, digital resilience and data privacy regulation.
• Executive remuneration trends and best practice, including ESG in remuneration.
• Diversity and inclusion.
• Conflicts of interest.
• Emerging market developments and industry trends.

HOW THE BOARD DISCHARGES ITS RESPONSIBILITIES

TRAINING AND DEVELOPMENT

Directors are committed to attending all Board meetings and dedicating the necessary time to the Group’s affairs, ensuring they can effectively discharge their responsibilities and contribute to the Group’s strategic objectives and long-term growth.

Carmelina Carfora
Company Secretary

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10 BOARD TRAINING SESSIONS AND UPDATES IN 2024/25

COMPOSITION, SUCCESSION AND EVALUATION

QUICK LINKS

Page
Membership and attendance at Nominations Committee meetings
Chair’s letter
Role of the Nominations Committee
Nominations Committee activities in 2024/25
Diversity and Inclusion

Our focus is on cultivating a mix of expertise and insight, ensuring the Board is forward looking, agile and aligned with the Group’s evolving strategic ambitions.

Duncan Owen
Chair of the Nominations Committee

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MEMBER	SINCE	MEETINGS ATTENDED
Duncan Owen (Chair)	2021	1/1
Rosie Shapland	2020	1/1
Lesley-Ann Nash	2021	1/1
Manju Malhotra	2022	1/1
Nick Mackenzie	2022	1/1
David Stevenson 1	2024	0/0

1. David Stevenson joined the Board and became a member of the Nominations Committee on 1 June 2024.
   More information on the skills and experience of all Committee members Pages 127 to 129
   Board skills and diversity Page 163

MEMBERSHIP AND ATTENDANCE AT NOMINATIONS COMMITTEE MEETINGS

KEY TOPICS CONSIDERED BY THE COMMITTEE DURING THE YEAR

COMPOSITION, SUCCESSION AND EVALUATION CONTINUED

| KEY TOPIC | ACTIVITY # Strategic Report

Our Governance

Financial Statements

Additional Information

We have also continued to advance our inclusivity initiatives across the wider organisation. As reported last year, we are targeting 16% ethnic minority representation within our Executive Committee and senior management team by December 2027, in line with the Parker Review recommendations. We are pleased to report progress, with representation increasing from 12.5% in March 2024 to 13% in March 2025. As part of our three-year Board performance review cycle, an internal evaluation was carried out this year, with a particular focus on the Board’s strategic contribution and oversight of culture. The review concluded that the Board and its Committees continue to operate effectively. Additional information is available on pages 159 to 161. Looking ahead, the Committee remains focused on robust succession planning at both Board and senior leadership levels, to ensure Workspace is equipped with the right capabilities to support long-term growth and deliver on its strategic ambitions.

Duncan Owen
Chair of the Nominations Committee
4 June 2025

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The Nominations Committee

The Nominations Committee plays a key role in ensuring that the Board, its Committees and Workspace’s senior leadership team collectively bring the right blend of skills, experience and business insight – both to meet the demands of today and to steer the organisation successfully into the future.

The Role of the Nominations Committee

The Nominations Committee delivers its role through robust succession planning, proactive talent development, and a clear understanding of the evolving skills and capabilities required to support the Group’s strategy, purpose, vision, culture, and values. Details of how the current Board composition reflects this approach can be found on page 158.

The Committee plays a key role in advancing inclusion and diversity across Workspace, and the Board was pleased with the progress made this year in furthering initiatives in this area. Notable achievements include the continued success of our diversity hiring and apprenticeship programmes, which have contributed to a more balanced and representative employee population. In addition, the Committee was pleased with progress on the Group’s initiatives to enhance unconscious bias training across the business, ensuring that inclusion remains a key focus at all levels of the organisation. During the year, the Board and the Committee reviewed the effectiveness of these initiatives and explored new ways to deepen our commitment to creating an inclusive culture where all employees feel valued and empowered.

The Committee is also responsible for recommending candidates for the role of Non-Executive Director designated for employee engagement. To further strengthen employee engagement, the Committee introduced a practice where an additional Non-Executive Director joins the Chair at these sessions. This initiative not only increases the Board’s visibility within the organisation but also fosters stronger relationships and deeper understanding between the Board and employees, providing mutual insight and enhancing communication.

While all Directors are seasoned professionals who take ownership of their own development, the Committee recognises that specific areas of training may be more relevant depending on the individual’s role and the contribution they make to the overall effectiveness of the Board. Directors are encouraged to pursue training in areas that align with their responsibilities, ensuring that each Director continues to grow in ways that best support their contribution to the Board’s work. Nonetheless, all Directors receive the same core training throughout the year, with programmes coordinated by the Company Secretary to ensure consistency in knowledge across the Board.

How the Committee Operates

The Committee held one meeting during the year, focused primarily on supporting the CEO transition. This meeting also included a review of the executive leadership assessment. In addition, the Board appointed Fidelio Partners to support the internal Board performance evaluation and subsequently reviewed the outcomes of that review at its Board meeting in March 2025. This provided an opportunity for collective reflection on Board effectiveness, strategic contribution and oversight of culture. The meetings are usually held immediately prior to or following a Board meeting, although the Committee also meets on other occasions on an ad hoc basis, as required.

Only members of the Committee have the right to attend meetings. However, an invitation to attend Committee meetings is, on occasion, extended to the Chief Executive Officer, in order to understand his views, particularly on key talent within the business. All Directors can, for the purpose of discharging their duties, obtain independent professional advice at the Company’s expense. No Director had reason to use this facility during the year.

Nominations Committee Responsibilities

The Nominations Committee is responsible for reviewing the structure, size, and composition of the Board, its Committees, and the Executive Committee. It also plays a key role in assessing the overall effectiveness and performance of the Board. In relation to senior leadership, the Committee receives input from the CEO on key roles within the business, including members of the Executive Committee and other individuals regarded as part of the senior management team. The Committee’s responsibilities include:

• Leading the process for new Board appointments and reviewing succession for Directors and senior management.
• Regularly reviewing the structure, size and composition of the Board and its Committees, including the Executive Committee.
• Facilitating a performance review of the Board, its Committees and Directors.
• Reviewing the time commitment expected from the Chair and Non-Executive Directors.
• Recommending the election and re-election by shareholders of the Directors, having due regard to their performance and ability to continue to contribute to the Board, taking into consideration the skill, experience and knowledge required along with the need for progressive refreshing of the Board and alignment to strategic objectives of the business.

COMPOSITION, SUCCESSION AND EVALUATION CONTINUED

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CEO transition
157
Performance of the Nominations Committee
158
Board composition
158
Board performance review
159

NOMINATIONS COMMITTEE ACTIVITIES IN 2024/25

Lawrence Hutchings joined the Company as CEO on 18 November 2024. On the same date, Graham Clemett stepped down as CEO but remained with the Company as an Executive Director until 31 January 2025 to support a well-managed transition. This planned crossover period enabled a comprehensive and effective handover process. In addition, Lawrence completed a thorough induction programme, details of which can be found below.

CEO Transition

Lawrence Hutchings’ induction commenced shortly after he joined the Company as CEO on 18 November 2024, and encompassed the following key elements:

• One-to-one meetings with the Chair, each of the Non-Executive Directors, the CFO and each member of the Executive Committee, providing a comprehensive overview of the Group’s strategy, operational and financial performance and other business priorities.
• Briefings led by the Company Secretary and Head of Corporate Communications covering legal governance matters and shareholder relations. These were followed up by in depth sessions with the Company’s brokers and external advisers to provide further context and insight.
• Briefings from senior managers across key areas of the business and operations, including marketing, asset management, investment, brand development, ESG and technology.
• Access to a suite of reference materials including key information on the Group’s governance framework, recent financial performance, investor relations and the Group’s business practices, including share dealing policies, the conflicts of interest procedure and Director’s duties.
• Tours of properties within the portfolio with the relevant asset management teams.

Induction of Lawrence Hutchings

Each newly appointed Director participates in a comprehensive induction programme, carefully designed to provide a thorough understanding of the business and its operations, as well as their duties and responsibilities as a member of the Board.

COMPOSITION, SUCCESSION AND EVALUATION CONTINUED

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COMPOSITION, SUCCESSION AND EVALUATION CONTINUED

NOMINATIONS COMMITTEE ACTIVITIES IN 2024/25 CONTINUED

The performance of the Nominations Committee was evaluated during the year as part of the internal Board performance review, supported by Fidelio. The feedback received confirmed that the Committee is operating effectively and fulfilling its responsibilities appropriately. See pages 159 to 161 for further details of the internal Board performance review.

Reviewing the Board and Committee Composition

As part of the Board’s annual performance review, described on pages 159 to 161, the Committee considers the composition of the Board and its Committees in terms of balance of skills, experience, length of service and wider diversity considerations. While no changes to the Board’s composition are expected to arise directly from the 2024/2025 performance review, the Nominations Committee will draw on feedback received to inform its broader approach to Non-Executive Director succession planning. The Board and its Committees continue to benefit from a strong mix of experience, from individuals who bring external perspectives, and provide constructive challenge in reviewing the Group’s strategy.# COMPOSITION, SUCCESSION AND EVALUATION CONTINUED

NOMINATIONS COMMITTEE ACTIVITIES IN 2024/25 CONTINUED

The Nominations Committee is satisfied that each Director continues to make an effective contribution to the Board and remains committed to promoting the success of the Company. Furthermore, the respective skills of the Directors were found to be complementary, enhancing the overall effectiveness of the Board. The Board has carefully considered the guidance criteria regarding the composition of the Board under the UK Corporate Governance Code. In the opinion of the Board, the Chair and all the Non- Executive Directors bring independence of judgement and character, a wealth and diversity of experience and knowledge, and the appropriate balance of skills. The Directors give sufficient time to enable them to carry out effectively their responsibilities and duties to the Board and the Committees on which they sit. They are sufficiently independent of management and are free from any other circumstances or relationships that could interfere with the exercise of their judgement. With effect from the close of the 2025 AGM, no Non-Executive Directors will have been on the Board for more than six years. As at 31 March 2025, the Board comprised of the Chair, two Executive Directors and five Non-Executive Directors. Further details on the independence of the Directors and their election and re-election can be found on pages 147 to 148 and on pages 3 to 4 of the 2025 Notice of Annual General Meeting. In accordance with the Code, all the Directors will retire and offer themselves for election or re-election by shareholders at the 2025 Annual General Meeting. The biographies of all members of the Board, outlining the skills and experience they bring to their roles, are set out on pages 127 to 129.

Time commitments

The Directors have demonstrated a strong commitment to their roles on the Board and its Committees. The Directors attended meetings of the Board and Committees scheduled in 2024/25 as well as additional ad hoc Board meetings as required. For further details of attendance at meetings see page 129. The Non-Executive Directors also meet with the Executive Directors and members of senior management during the year. The Directors have carefully considered their external commitments to ensure they are able to dedicate sufficient time to their roles on the Board. For each of the Directors, the Board considers that the time commitment that he or she is required to devote to those external roles does not compromise their role at Workspace. The Nominations Committee reviews Directors’ time commitments and confirmed that they were fully satisfied with the amount of time each Director devoted to the business. The Committee recognises the value Non-Executive Directors can gain from holding positions on other boards, whether in executive or non-executive roles, as such experience can broaden their perspectives and enhance their contributions to the Board. During the year, the Nominations Committee considered Manju Malhotra’s proposed appointment as a Non-Executive Director of Smiths News plc, and concluded that the role would not conflict with or compromise her role at Workspace.

PERFORMANCE OF THE NOMINATIONS COMMITTEE

BOARD COMPOSITION

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NOMINATIONS COMMITTEE ACTIVITIES IN 2024/25 CONTINUED

As part of our three-year Board performance review cycle, an internal review of Board performance was conducted for the 2025 reporting year. This followed an externally facilitated review by Fidelio in 2024 and an internal review in 2023. The outcomes of these reviews are detailed on pages 160 to 161. Having facilitated the external performance review in 2024, as well as the internal reviews in 2023 and 2022, Fidelio were appointed to support this year’s internal performance review. Fidelio are accredited by the FTSE Women Leaders Review and are signatories of the Standard Voluntary Code of Conduct. The performance review assessed the overall effectiveness of the Board, with a particular focus on its contribution to strategy and oversight of culture. The Board evaluated its performance positively, concluding that is continues to operate effectively. Fidelio have no other connection with the Company or individual Directors save for in connection with certain director recruitment activities (see page 164).

AN ESTABLISHED REVIEW CYCLE WITH INCREMENTAL IMPROVEMENTS MADE EACH YEAR

This internal performance review covered the effectiveness of the Workspace Board, and how this had developed over the preceding year. Looking ahead, it had a clear focus on the Board’s contribution to strategy and horizon-scanning. The 2023/24 external Board performance review was conducted against the backdrop of a new Board Chair. The external performance review focused on Board oversight in the development of the leadership team and implementation of the Company’s strategy. This internal performance review assessed the overall effectiveness of the Board, with particular focus on the recent CEO transition in November 2024. Key themes included the Board’s contribution to strategy and oversight of culture. This year’s internal Board performance review confirmed that the Board continues to operate effectively, with members demonstrating strong engagement, robust oversight and a clear focus on long-term value creation and organisational success.

	2022/2023	2023/2024	2024/2025
BOARD PERFORMANCE REVIEW	INTERNAL BOARD PERFORMANCE REVIEW	EXTERNAL BOARD PERFORMANCE REVIEW	INTERNAL BOARD PERFORMANCE REVIEW

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NOMINATIONS COMMITTEE ACTIVITIES IN 2024/25 CONTINUED

BOARD INTERNAL PERFORMANCE REVIEW PROCESS

TIMELINE: NOVEMBER 2024

• A discussion was held by the Board to consider key subject areas for this internal review

TIMELINE: JANUARY-FEBRUARY 2025

• Fidelio developed a tailored survey reflecting all aspects of the work of the Board

TIMELINE: MARCH 2025

• Findings presented to the Board and implementation plan agreed

TIMELINE: MARCH 2025

• Key outcomes agreed

Key questions:

• What more can the Board do to assess, challenge and enhance its own performance?
• What is the Board’s role in ensuring that Workspace has and implements a compelling strategy and how can the strategy process be further strengthened?
• How effective is the Board at overseeing culture within Workspace and how does it know the culture has been embedded?
• What is the quality of the Board’s dynamic and communication?
• How well does the Board carry out its role in shareholder engagement?

Focus areas:

• The quantitative section of the questionnaire enabled the Board to provide feedback across all key areas of its work. The results were broadly comparable with previous internal reviews and offered an opportunity to monitor progress over time.
• The qualitative section of the questionnaire enabled a deep dive on three key areas:
  • Board performance;
  • strategy; and
  • culture.
• The format was broadly in line with previous reviews and the overall positive scoring indicated that the Board saw good progress.

Discussion points:

• The Board discussed the points raised by the review.
• It was noted that particular strengths were the Board’s grasp of accountability and governance, the quality of the Board’s dynamic and communication as well as the role of the Chair.
• The Board agreed that the key areas for further development included the role of the designated Non-Executive Director for employee engagement and the quality of the Board’s oversight of the people agenda.

Development themes:

• Continue to enhance Board focus on the Company’s performance.
• Agree criteria by which Board performance can be measured after meetings, including the quality and type of challenge, individual contribution and allocation of Board time.
• Develop clear alignment between the Board and Executive Committee in the strategy process.
• Review whether the current framework of employee engagement provides the Board with the insights and understanding it requires.
• Consider whether the Board’s understanding and insight into Executive culture provides a good means of ensuring that culture cascades through the business.

BOARD DISCUSSION

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NOMINATIONS COMMITTEE ACTIVITIES IN 2024/25 CONTINUED

PROGRESS AGAINST THE EXTERNAL BOARD EFFECTIVENESS REVIEW CONDUCTED IN 2024

ITEM DISCUSSED BY THE BOARD	FOCUS AREA	PROGRESS
STRATEGY		Continue to maintain the focus and pace of the strategy process. The Board continues to consider the Group strategy at each Board meeting. An annual strategy day was held in September 2024 and this was attended by members of the Executive Committee and external presenters. Actions from the strategy day were then circulated to the Board, followed by further presentations by members of the Executive Committee to develop our strategy. The Board reviewed progress on the strategy development at its meeting in March 2025, and approved the refreshed strategy in April 2025. Read more about the development of the strategy on page 130.
BOARD COMPOSITION		Continue to align Board composition to the needs of the business. Following last year’s external Board performance review which highlighted the need for additional expertise in capital markets and digital capabilities, David Stevenson was appointed as a Non-Executive Director in June 2024 to help strengthen the Board in these areas.
EXECUTIVE DEVELOPMENT		Support the executive development programme.

Strategic Report

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COMPOSITION, SUCCESSION AND EVALUATION CONTINUED

DIVERSITY AND INCLUSION AT WORKSPACE

WHY WE DO IT

A diverse workforce will contribute to our long-term success and help us achieve our strategy.

HOW WE DO IT

Read all about our diversity initiatives on the following pages.

OVERVIEW

We embrace diversity in all its forms and strive to foster an environment where talented individuals can excel, regardless of gender, gender reassignment, race, ethnicity, age, religious or spiritual beliefs, sexual orientation, marital or civil partnership status, disability, education, or social background. A diverse organisation gains from the varied perspectives and inclusivity these differences bring, along with a range of skills, industry experience and personalities. Workspace’s purpose is to give businesses freedom to grow. We recognise that having a Board, Executive Committee, and workforce with diverse backgrounds and experiences is crucial to deliver our strategy and make sure It All Happens at Workspace for the long term. Our Equal Opportunities and Dignity at Work Policy is applicable to the Board, its Committees, and the broader business. We also have a Board-specific diversity and inclusion policy, outlined on page 164. With a rich mix of perspectives across our Board, Executive Committee and workforce, Workspace is set to deliver lasting impact and shape a successful future.

Achieving a diverse and inclusive pipeline
Pages 167 to 171

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DIVERSITY AND INCLUSION AT WORKSPACE CONTINUED

BOARD DIVERSITY

BOARD AND COMMITTEE SKILLS AND EXPERIENCE

31 MARCH 2025

Category	Number of Directors
Executive leadership
Property and Real Estate
Financial
Corporate governance
Customer and Marketing
People
ESG

BOARD INDEPENDENCE

31 MARCH 2025

Role	Number of Directors
Non-Executive Chair	1
Executive Directors	2
Independent Non-Executive Directors	5

LENGTH OF TENURE FOR THE BOARD

31 MARCH 2025

Tenure	Number of Directors
3.1 years (Average Tenure)

GENDER DIVERSITY OF THE BOARD

31 MARCH 2025

Gender	Percentage
Men (including those self-identifying as men)	62.5%
Women (including those self-identifying as women)	37.5%

AGE DIVERSITY OF THE BOARD

31 MARCH 2025

Age Range	Number of Directors
50-59	8

ETHNIC DIVERSITY OF THE BOARD

31 MARCH 2025

Ethnicity	Percentage
Identify as ethnic minority	25%
Do not identify as ethnic minority	75%

Workspace is committed to Board-level diversity, recognising that varied perspectives strengthen corporate culture and drive improved performance.

BOARD EVOLUTION

2020
2021
2022
2023
2024
2025

Executive Directors
Lawrence Hutchings
Dave Benson

Non-Executive Directors
Duncan Owen
Rosie Shapland
Lesley-Ann Nash
Manju Malhotra
Nick Mackenzie
David Stevenson

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BOARD DIVERSITY CONTINUED

PRINCIPLES AND PROGRESS

PRINCIPLES	IMPLEMENTATION	PROGRESS AGAINST OBJECTIVES
Ensure the Board comprises an appropriate balance of skills and diverse characteristics including gender, ethnicity, skills, experience, cognitive diversity and background. This diversity helps bring fresh perspectives, enriches our business and contributes to our long-term success.	Ensure the recruitment process, including advertisements and use of recruitment agencies, allows for a diverse group of potential candidates to be identified. The Board and Nominations Committee will only engage with executive search firms that have signed up to the Standard Voluntary Code of Conduct for Executive Search Firms.	Board attention and focus is given to initiatives designed to develop a pipeline of talented, high potential employees and senior managers from a diverse range of backgrounds including in terms of gender, ethnicity, skills, experience and background.
The diversity of the Board, in its broadest sense, is regularly reviewed by the Nominations Committee throughout the year, and at least annually by the full Board as part of its yearly performance review. This ensures the Board maintains a diverse balance of perspectives and experience.	The Board places importance on ensuring the recruitment process is fair and is based solely on individual merit. The Board instructs executive search firms to assist with sourcing the best candidates for the role. When instructing an executive search firm, the Board will explicitly request that a diverse mix of individuals is identified for the role. The Board will continue to engage executive search firms that have signed up to the Standard Voluntary Code of Conduct.	The HR team has been tasked with continuing to progress our existing initiatives to support development of a diverse pipeline of talent (see page 170 for further details) as well as delivering the new initiatives detailed on pages 167 to 169.
As always, diversity formed an important part of the discussion of this year’s internal Board performance review, conducted in February 2025. No concerns were raised in connection with the diversity of the Board. For more information on the outcomes of the internal Board performance review, please see page 160.	As at 31 March 2025, there is 37.5% female representation on our Board (2024: 42.9%) and 25% ethnic minority (2024: 28.6%). We recognise that, due to the appointment of David Stevenson in June 2024, female representation on our Board has fallen slightly below the 40% target set by the UK Listing Rules and FTSE Women Leaders Review. Gender diversity will be a consideration of the Nominations Committee when considering future appointments.	This year saw the appointment of David Stevenson as a new Non-Executive Director, and Lawrence Hutchings as the Group’s new CEO. David and Lawrence both bring different experience and skills to the Board from their backgrounds in capital markets and customer-centric real estate respectively. A thorough recruitment and selection process was undertaken for each and the executive search firms involved were instructed to identify a diverse mix of individuals to be considered for each role. During 2023/24 and 2024/25, Heidrick & Struggles and Fidelio were each engaged by the Board as executive search firms (for Lawrence Hutchings and David Stevenson respectively). Both Heidrick & Struggles and Fidelio are signatories to the Standard Voluntary Code of Conduct. Heidrick & Struggles have no other connection with the Company or individual Directors. Fidelio provided support for the 2024/25 Board performance review but have no other connection with the Company or individual Directors. During the year, we continued to introduce and progress a number of initiatives aimed at achieving a diverse and inclusive pipeline of talent. See page 169 for more details on the progress on our diversity initiatives during this year.

This year, the Board was updated on, and discussed, the appointment of a new member of the Executive Committee, Jess Berney. Jess will join the Company as Head of Portfolio Management, with effect from 1 July 2025. Jess will bring a fresh perspective and additional skills to the Executive Committee with her extensive property experience.

PEOPLE

Increase focus on the people agenda and continue focus on effective workforce engagement. During the year, the Board continued with a programme of events outside of Board meetings at which members of the Board and the Executive Committee can build relationships on a more informal basis. The Chair also held feedback meetings with staff during the year. This year, other Non-Executive Directors joined the Chair at these meetings. Further details can be found on pages 122 to 123 and 134 to 135. The CEO provides the Board with oversight of the broader people agenda, including succession planning, staff development and workforce changes across the business. This includes updates from town hall meetings, including analysis of results, and action plans developed, from the annual staff survey.

INVESTOR ENGAGEMENT

Ensure firm understanding of the shareholder perspective. At the Board strategy day in September 2024, the Board discussed and outlined a clear plan for how strategy and the Company’s differentiated model are communicated to stakeholders. The Board also discusses regular updates on investor sentiment.

BOARD LEARNING

Continuous learning for Board members to enhance understanding of the Company and the business it operates in. The Board strategy day offers an opportunity for members of the Board to hear from internal and external speakers on a variety of topics, including market trends and developments as well as strategic planning across areas of the business. The Board also takes part in regular site visits where they are able to engage with centre staff and see our buildings. This year, the Board visited The Print Rooms, Salisbury House and Centro Buildings. Whilst the approach to Board learning will be kept under review, we shall continue to develop a dynamic programme of relevant subject areas to be covered that reflect strategic priorities or challenges. Regular Board updates on compliance and regulatory matters will also continue, as appropriate. Board members also have a responsibility to stay up to date in their relevant areas of expertise.

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Additional Information# COMPOSITION, SUCCESSION AND EVALUATION CONTINUED

DIVERSITY AND INCLUSION AT WORKSPACE CONTINUED

In particular, this year saw the formation of our new Diversity Action Group, a forum formed of twelve employees and chaired by our Investment Director, Richard Swayne. Read more on page 171.

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GENDER AND ETHNIC DIVERSITY OF THE BOARD AND THE EXECUTIVE COMMITTEE AS AT 31 MARCH 2025

The Board continues to support the recommendations of both the FTSE Women Leaders Review and the Parker Review, and of the targets set out in UKLR 6.6.6R(9). A group that is diverse in nature, across gender, ethnicity, skills, experience and background, brings a range of perspectives that enrich debate and strengthen decision making. The tables to the right set out the numerical data required to be disclosed in accordance with UKLR 6.6.6R(9), as at 31 March 2025.

The Board is aware that as of 31 March 2025, the Company is just short of the target of 40% female representation, with 37.5% of the Board being women. Board positions are, by their nature, limited in number meaning vacancies are less common, but when vacancies do become available the Board will continue to recruit in a manner which attracts a diverse mix of candidates and to shortlist an equal number of men and women wherever possible.

The data contained in the disclosures to the right were self-reported by members of the Board and Executive Committee. The Executive Committee were asked to specify their gender identity and ethnic origin via our HR system, with each question using a dropdown menu with options to select. The Board were separately each asked the same questions with the same options. Lawrence Hutchings and Dave Benson are members of both the Board and the Executive Committee and therefore are included in both the calculations relating to the Board and those relating to executive management.

PROGRESS AGAINST UKLR 6.6.6R(9) TARGETS AS AT 31 MARCH 2025

• At least one of the senior Board positions should be held by a woman
  • Status: Achieved
  • ROSIE SHAPLAND IS SENIOR INDEPENDENT DIRECTOR
• At least one member of the Board should be from an ethnic minority
  • Status: Achieved
  • 2 MEMBERS OF THE WORKSPACE BOARD ARE FROM A MINORITY BACKGROUND
• At least 40% of individuals on the Board should be women
  • Status: Not currently met
  • 37.5% OF THE WORKSPACE BOARD ARE WOMEN

GENDER	Number of Board members	Percentage of the Board	Number of senior positions on the Board (CEO, CFO, SID and Chair)	Number in executive management	Percentage of executive management
Men (including those self-identifying as men)	5	62.5%	3	6	75%
Women (including those self-identifying as women)	3	37.5%	1	2	25%
Non-binary	0	0%	0	0	0%
Not specified/prefer not to say	0	0%	0	0	0%

ETHNICITY	Number of Board members	Percentage of the Board	Number of senior positions on the Board (CEO, CFO, SID and Chair)	Number in executive management	Percentage of executive management
White British or other White (including minority-white groups)	6	75.0%	4	8	100%
Mixed/Multiple Ethnic Groups	0	0%	0	0	0%
Asian/Asian British	1	12.5%	0	0	0%
Black/African/Caribbean/ Black British	1	12.5%	0	0	0%
Other ethnic group	0	0%	0	0	0%
Not specified/prefer not to say	0	0%	0	0	0%

Further information on the composition of the Board can be found on pages 127 to 129 and on the composition of the Executive Committee on page 150

EXECUTIVE COMMITTEE EVOLUTION

5 years

AVERAGE TENURE AS OF 31 MARCH 2025

BOARD AND EXECUTIVE COMMITTEE DIVERSITY

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COMPOSITION, SUCCESSION AND EVALUATION CONTINUED

DIVERSITY AND INCLUSION AT WORKSPACE CONTINUED

The tables below set out the gender and ethnic diversity of the individuals comprising our Executive Committee and senior managers. In line with the FTSE Women Leaders Review and the Parker Review, we consider senior managers to be those employees deemed to be senior managers of the Group who report directly to an Executive Committee member. In respect of the UK Corporate Governance Code 2018 (which was the version of the Code applicable to the Company during the year under review), we consider the Executive Committee to be our ‘senior management’ as defined by the Code.

GENDER DIVERSITY OF EXECUTIVE COMMITTEE AND SENIOR MANAGERS AS AT 31 MARCH 2025

PARKER REVIEW TARGET

In line with the guidance published by the Parker Review, in the 2024/25 financial year the Board set a target of 16% minority ethnic representation within the group comprising our Executive Committee and senior managers, as defined by the Parker Review, by 31 December 2027.

GENDER DIVERSITY OF ALL EMPLOYEES AS AT 31 MARCH 2025

The charts below show the gender, ethnicity and age diversity of all our employees. This disclosure is made in accordance with section 414C(8)(c)(iii) of the Companies Act 2006. The Board breakdown required by section 414C(8)(c)(i) of the Companies Act 2006 is set out on page 163. In addition, for the purposes of disclosure under section 414C(8)(c)(ii) of the Companies Act 2006, the Group had four male and two female senior managers as at 31 March 2025, calculated in accordance with sections 414C(9) and (10)(b) of the Companies Act 2006.

AGE DIVERSITY OF ALL EMPLOYEES AS AT 31 MARCH 2025

ETHNIC DIVERSITY OF ALL EMPLOYEES AS AT 31 MARCH 2025

ETHNIC DIVERSITY OF EXECUTIVE COMMITTEE AND SENIOR MANAGERS AS AT 31 MARCH 2025

	2025
Female	183 56.8%
Male	139 43.2%
18–29	98 30.4%
30–39	115 35.7%
40–49	72 22.4%
50–59	24 7.5%
60–69	13 4.0%
70–79	0 0%
Female	39.1%
Male	60.9%
Minority ethnic	13.0%
White	87.0%
White:	230 71.4%
English/Welsh/Scottish/Northern Irish/British	47.5%
White – Irish	3.1%
White – Other	20.8%
Black:	22 6.8%
Black/African/Caribbean/Black British – Caribbean	3.4%
Black/African/Caribbean/Black British – African	2.8%
Black/African/Caribbean/Black British – Other	0.6%
Asian:	40 12.4%
Asian/Asian British – Indian	5.0%
Asian/Asian British – Bangladeshi	1.2%
Asian/Asian British – Pakistani	1.2%
Asian/Asian British – Chinese	1.0%
Asian/Asian British – Other	4.0%
Mixed:	26 8.1%
Mixed – White and Black Caribbean	1.2%
Mixed – White and Black African	1.6%
Mixed – White and Asian	1.0%
Mixed – Other	4.0%
Mixed	0.3%
Other ethnic group:	4 1.2%

EXECUTIVE COMMITTEE AND SENIOR MANAGER DIVERSITY

WIDER WORKFORCE DIVERSITY

13.0% MINORITY ETHNIC REPRESENTATION WITHIN THE GROUP COMPRISING OUR EXECUTIVE COMMITTEE AND SENIOR MANAGERS AS OF 31 MARCH 2025

PROGRESS AGAINST PARKER REVIEW TARGET

	31 MARCH 2024	31 MARCH 2025	TARGET 31 DECEMBER 2O27
	12.5%	13.0%	16%

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COMPOSITION, SUCCESSION AND EVALUATION CONTINUED

DIVERSITY AND INCLUSION AT WORKSPACE CONTINUED

– Every employee has the right to be treated with respect and dignity throughout their employment with us and not to be discriminated against. We have a zero tolerance attitude to bullying, harassment or victimisation of any kind. This year we introduced a new Sexual Harassment Policy to reinforce our zero tolerance approach to unprofessional or inappropriate behaviour from our staff and from third parties who interact with our business.

– Our recruitment and selection, training and development, performance reviews and promotion processes are all based solely on individual merit and are free from bias. The HR team oversee these processes to ensure that they remain fit for purpose and eliminate bias.

– We monitor and analyse the diversity of our employees so that we can track and progress our diversity initiatives.

– Our Board and Executive Committee are regularly updated on our progress with diversity initiatives and external guidance and recommendations for improving diversity.

– We offer flexible working options (including hybrid working) to support employees with family and/or caring commitments.

– We have an employee support network aiming to provide a forum for parents and carers, including how Workspace can better support them.

– We provide training for all employees and line managers on areas such as unconscious bias and harassment to ensure that our values and standards are understood. This year we introduced neurodiversity training for managers and staff.

Diversity at all levels of our organisation is crucial to providing a variety of thoughts, skills and experiences that will support the achievement of our long-term strategy by fostering innovation and better decision making. While it remains our policy to appoint the best person for each role, we are committed to ensuring that our processes and initiatives actively encourage a diverse group of candidates for roles at all levels and build a diverse pipeline of talent for senior positions. Our initiatives to achieve this are detailed to the right and overleaf, and further details on Board and Executive level succession planning can be found on page 155.

ACHIEVING A DIVERSE AND INCLUSIVE PIPELINE

• 31 INTERNAL PROMOTIONS IN 2024/25
• 7 DAG MEETINGS IN 2024/25
• 16 APPRENTICES SUPPORTED IN 2024/25
• 17 NEURODIVERSITY TRAINING SESSIONS IN 2024/25

CULTURE
Innovation thrives on diverstiy. It is the unique perspectives, experiences and voices at the table that spark bold ideas and meaningful progress.

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DIVERSITY AND INCLUSION AT WORKSPACE CONTINUED

– We promote progressive career development through encouraging lateral job moves where opportunities arise.

– We hold bi-monthly meetings between the HR team and senior managers with a view to identifying opportunities for staff development.# COMPOSITION, SUCCESSION AND EVALUATION CONTINUED

DIVERSITY AND INCLUSION AT WORKSPACE CONTINUED

OUR PROGRESS FROM LAST YEAR

WHAT WE SAID WE WOULD FOCUS ON	OUR PROGRESS
Continue to widen the pool of candidates from which we recruit by introducing apprenticeship schemes, encouraging staff recommendations, and working with job centres, charities and universities to reach candidates that may not come through more traditional recruitment methods.	– We started working with Sapphire Recruitment, a charity that has individuals from disadvantaged backgrounds, and throughout this year they have helped us with finding candidates for certain roles. We have also partnered with the White Ensign Association, an organisation that helps military veterans find employment, other charities and social enterprises such as Spear Lambeth and London & Partners, and the Job Centre to help promote our vacancies to those who are not currently employed. – We promote our vacancies through these channels and will continue to explore ways to enhance our engagement with these or similar minded organisations. – In October 2024 we launched the apprenticeship scheme business wide. We have also expanded the range of apprenticeships we offer across the business. All junior roles that become available will now be advertised as apprenticeships wherever appropriate. In the year under review, we supported 16 apprentices.
Use our new recruitment software to produce and analyse more detailed information, and to implement new recruitment initiatives such as standardising language used in job adverts and anonymising CVs.	– Our new recruitment system has enabled us to anonymise CVs, promote vacancies to a wider audience and gain more detailed insights into the recruitment experience, including how our candidates have learned about the roles. – We have also enhanced our recruitment experience to ensure we continue to attract and retain the best talent, and we have started conducting on-boarding surveys to obtain feedback from new starters to enable us to improve and ease the process of on-boarding.
Continue our focus on internal development and promotions, including further development of our career progression pathways and implementing a new learning management system to enhance our training and development provision.	– Last year, we continued our efforts in relation to internal development opportunities and promotions. We had 34 internal movements across the business. We also continue to offer career development pathways within our Customer Experience and Facilities Management Teams. We will continue to explore with other teams as to whether we can expand our career pathways further. – Our new learning management system launched in February 2024 and this year we have launched six learning courses to staff via the new system.
Continue to improve awareness of diversity at all levels, by rolling out enhanced diversity and inclusion training for the Executive Committee, hiring managers and all staff and increasing the use of external speakers to bring different perspectives.	– Throughout the course of the year, we have rolled out specific training for both employees and line managers. New courses around mental health and neurodiversity awareness have been trialled. – We have also run awareness sessions on menopause and breast cancer for our employees and our employee network ‘Supporting Others’ continues to meet regularly.
Introduce a diversity working group to provide a forum for discussion of ideas with staff representatives from across the organisation, with feedback to be elevated to the Executive Committee.	– We launched the Diversity Action Group (DAG) in July 2024. The DAG is chaired by Richard Swayne, our Investment Director, and comprises twelve representatives from different areas of the business. The DAG reports into the Group’s Social Sustainability Committee, which in turn reports to the Executive Committee. Read more on page 171.
Implementing recommended changes to our parental leave policies following completion of our benchmarking exercise this year.	– Following a benchmarking exercise, we have enhanced our family friendly leave entitlements. Employees may now receive up to 26 weeks full pay for maternity, adoption or shared parental leave, depending on length of service. For paternity leave, up to four weeks of full pay is also available, subject to service eligibility.

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TRAINING AND DEVELOPMENT

– During our annual appraisal process, we identify employees who have strong potential for development, and put training and development plans in place for them.
– We provide a Group-wide internal training programme to offer employees opportunities to learn and develop skills such as organisation, people management and managing difficult situations.
– We offer Institute of Leadership & Management training for line managers and are developing training for managing difficult conversations.
– We support employee development by sponsoring external learning and further study opportunities where appropriate.
– We have implemented ‘career pathways’, for our centre team roles and facilities management team roles, to make it clearer to staff how they can progress their careers at Workspace.
– We have introduced apprenticeship programmes to widen access to the professions within our organisation.

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RECRUITMENT AND SELECTION

– Our Recruitment team oversees all recruitment activities and processes in accordance with our policy, which ensures fair, transparent and consistent hiring practices.
– We review and change job titles where appropriate, and we review job specifications to ensure we consistently use inclusive language that encourages both male and female candidates.
– We use software to track the sources of candidate applications and implement CV anonymisation to help eliminate unconscious bias in the recruitment process.
– We provide all hiring managers with training in unconscious bias and interview skills to support fair and effective recruitment practices.
– Guidance and support notes are provided to hiring managers to promote fair and thorough processes.
– We advertise all vacancies internally before undertaking any external advertisement, to encourage internal applications.
– When we do advertise externally, we have increased our use of social media and other direct recruitment methods in order to reach a wider pool of talent, including encouraging applications from people who may be returning to work and from local communities via local job centres, universities and schools. We also partner with organisations such as Sapphire Partners and the White Ensign Association to promote social mobility.
– Where recruitment agencies are engaged, we ensure they demonstrate a strong commitment to diversity and a proven track record in diverse appointments.
– When a senior role becomes available, we actively encourage applications from diverse candidates and aim to shortlist an equal number of men and women wherever possible.

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OUR FUTURE PLANS

Our key aims for next year include:

– Continue to focus on ensuring job adverts use non-discriminatory language, in particular by making use of AI tools.
– Minimise reliance on recruitment agencies and broaden our talent pool by actively encouraging apprenticeship hires for junior roles.
– Focus on employee retention and development by implementing career pathways for additional roles within the business.
– Sign the Armed Forces Covenant to demonstrate our commitment to supporting former members of the Armed Forces.
– Enhance the awareness of Workspace among potential job applicants by showcasing employee stories and our internal culture via our social media channels.
– Issue updated best practice guidelines and provide regular updates to line managers, encouraging them to engage in regular check-ins and career conversations with their teams.
– Design and launch a paid internship programme for individuals aged 16 and over.
– Further promote our newly introduced policy on buying additional annual leave and how it can be used to split the cost of unpaid leave over a longer period, in particular to employees with caring commitments.
– Externally benchmark our employee benefits to ensure they remain competitive.
– We continue to actively promote our ‘Supporting Others’ network and encourage the development of additional employee networks, for example BAME or LGBT+ networks.
– Implement a series of ‘lunch and learn’ sessions to help line managers and staff to better understand different perspectives.
– Enhance the functionality of our Learning Management System to expand and improve our training and development opportunities.

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DIVERSITY AND INCLUSION AT WORKSPACE CONTINUED

Q What prompted the formation of the DAG as a forum comprising staff members?

A Our best ideas often come from our people, and we believe diversity and inclusion is no exception. In the same way that our Board benefits from diversity of skills, experiences and backgrounds in order to achieve Workspace’s overall strategy, the same applies to achieving our diversity and inclusion aims and initiatives. We have also heard from past employee surveys that it is something very important to our staff. The DAG comprises twelve members of staff from a range of teams and role levels and with diverse backgrounds. All DAG members are passionate about diversity and inclusion and bring the energy needed to contribute new ideas.# AUDIT, RISK AND INTERNAL CONTROL CONTINUED

AUDIT COMMITTEE CHAIR’S LETTER CONTINUED

We also considered, as we do on a regular basis, the potential for fraud in revenue recognition, scope for management override of controls and compliance with regulations. We found no concerns arising from this review. A description of the material issues that the Committee considered during the year can be found on page 179 to 182.

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Cyber security

During the year the Company conducted two table top exercises focused on responding to cyber attacks. Insights gained from these exercises have been incorporated into the Company’s processes.

Viability and going concern statements

The Committee considered the going concern statements in the interim statement and the Annual Report, and the viability statement in the Annual Report. This included reviewing the work undertaken by management, which considered plausible downside scenarios factoring in the Group’s principal risks and potential uncertainties, and assessing the appropriateness of the five-year viability assessment period. Following this review, we were satisfied that management had conducted robust viability and going concern assessments and recommended approval of these to the Board.

See our viability and going concern statements on pages 94 to 95.

2025 Annual Report

After reviewing the reports from management, and following discussions with the External Auditor and valuers, the Committee is satisfied that:

• the process used to determine the property valuation was satisfactory.
• the financial statements appropriately address the key judgements and the key estimates.
• the Group has adopted appropriate accounting policies.
• both the External Auditor and the property valuers remain independent and objective in their work.

The Board as a whole is responsible for assessing the Group’s position, performance, business model and strategy. The Committee has a key role in checking that the Group’s narrative reporting gives a fair, balanced and understandable assessment of the Group’s position and prospects. This assessment is covered on page 182. For the year ended 31 March 2025, the Committee confirmed to the Board it was satisfied that the Annual Report and Accounts was fair, balanced and understandable.

Challenging management’s assumptions

The Committee reviews and, where necessary, challenges key management assumptions and estimates, ensuring they are robust, well reasoned, and supported by appropriate evidence. This oversight forms a core part of the Committee’s role in maintaining the integrity of the Group’s financial reporting.

Committee effectiveness

The performance of the Audit Committee was assessed this year through an internal performance review. I am pleased that this concluded we continue to operate effectively.

Risk, control and assurance

The Group has a range of processes in place to support effective internal control. These include self-certification of controls by risk owners, reviews of fraud, anti-bribery and whistleblowing policies and a risk management framework through which controls and their effectiveness are monitored and assessed.

SUSTAINABILITY IN EVERYTHING WE DO

BUILDING RESILIENCE IN THE FACE OF CLIMATE CHANGE

Incorporating sustainability across the business means we need to build resilience in the face of climate change

The Group recognises that climate change will continue to have an increasing impact on our business and so it is one of our principal risks. More detail can be found on page 93.

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We do not have a formal internal audit function, a matter which is kept under review by the Audit Committee. However, the Head of Security and Risk Management provides the Committee with updates on the assurance reviews conducted across the business. The Committee is aware of the changes to the UK Corporate Governance Code and has been considering our approach to address the new provision 29 requirements relating to the effectiveness of material controls, with a view to ensuring that appropriate processes are in place and documented in advance of the new provision becoming effective for the Group for its financial year commencing 1 April 2026. This has included discussions with the management team regarding the process of identifying and agreeing our material controls in line with these requirements.

I hope that you find this report informative and can take assurance from the work undertaken by the Committee during the year to deliver its key responsibilities.

Rosie Shapland
Chair of the Audit Committee
4 June 2025

During the year the Committee reviewed an update on the post-implementation controls review conducted by Grant Thornton on the Group’s new finance and property management system, as reported previously. The Committee noted that the majority of actions identified have been addressed, with plans in place to complete the remaining items. The Committee discussed recommendations from BDO relating to the Group’s Information Technology General Controls (ITGCs), which were highlighted as part of their work in their first year as the Group’s new auditors, and noted that management had implemented plans to address these recommendations prior to the financial year end. Together with the Board, the Audit Committee has reviewed the effectiveness of the Group’s risk management and internal control systems and have not identified any significant failings or weaknesses.

In January 2025, the Audit Committee held a joint meeting with the ESG Committee. During this meeting, both Committees reviewed the Company’s policies and procedures supporting the implementation of our ESG strategy, as well as the assurance programme being undertaken to ensure the effectiveness of these policies and procedures. Both Committees were satisfied that the Company’s policies and procedures in this area are operating effectively, and that appropriate assurance procedures are in place.

• Continue to monitor the Group’s risk management and internal control framework, particularly with regard to the new UK Corporate Governance Code on risk management and the effectiveness of material controls.
• Continue to review management’s progress in addressing recommendations from BDO and Grant Thornton in relation to IT general controls and the new finance system.
• Focus on the Company’s protection against cyber threats.
• Continue to focus on climate change and its potential impact on the financial statements and review mitigation strategies. This includes monitoring of climate-related risks across business decisions and seeking assurance from Bureau Veritas on our carbon emissions disclosures. See page 108 for more details.

MONITORING FUTURE DEVELOPMENTS

Fair, balanced and understandable reporting

Page 182

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AUDIT COMMITTEE CHAIR’S LETTER CONTINUED

THE ROLE OF THE AUDIT COMMITTEE

The Audit Committee reviews and monitors the integrity of the Group’s financial reporting in advance of its consideration by the Board. The Committee oversees the relationship with the External Auditor in order to assess the effectiveness of the audit and to annually assess their independence and objectivity. The Audit Committee also reviews and monitors the Group’s risk management and internal controls framework.

HOW THE COMMITTEE OPERATES

• The Audit Committee is composed solely of independent Non-Executive Directors, with a wide diversity of experience. Rosie Shapland, as a Chartered Accountant and former audit partner with over 30 years of audit experience across multiple sectors, satisfies the requirement of having appropriate recent and relevant financial experience. The Committee as a whole has competence in the sector in which the Group operates.
• Meetings of the Audit Committee coincide with key dates in the financial reporting and audit cycle. During the year, the Committee met on four occasions, in May and November 2024 and in January and March 2025.
• The meeting in January was a joint meeting with the ESG Committee to review the Group’s ESG related policies and procedures that support the implementation of our ESG strategy.
• There was a further meeting in May 2025 when matters relating to the 2025 Annual Report & Accounts were discussed.
• A forward plan of agenda items guides the business to be considered at each meeting and is regularly reviewed and developed. This pre-planning facilitates the work of the Committee, enabling it to give thorough consideration to matters of particular importance to the Group.
• The Committee receives information in advance of its meetings including information from management and detailed reports from the External Auditor including the audit report. The Committee meets privately with the External Auditor, at least annually, and it liaises with Company management in considering areas for review.

FORWARD PLANNING

Subjects include management’s response to control recommendations and reviewing and responding to changes in the UK Corporate Governance Code

AUDIT COMMITTEE

Assess and discuss topics with senior management and the External Auditor

Regular inputs received from: Workspace management and the External Auditor

The Audit Committee is committed to ensuring the integrity of our financial reporting, internal controls and risk management systems.# AUDIT COMMITTEE RESPONSIBILITIES

AUDIT, RISK AND INTERNAL CONTROL CONTINUED

THE ROLE OF THE AUDIT COMMITTEE CONTINUED

– The Committee regularly invites the External Audit lead partner, the Chair of the Board, the Chief Executive Officer (CEO), the Chief Financial Officer (CFO), the Group Financial Controller, the Head of Technology and the Head of Security and Risk Management to attend Committee meetings. Representatives from our external valuers, CBRE, attend Board meetings twice per year to present the half and full-year valuation reports.
– Meetings of the Committee are held in advance of the Board meetings to allow the Committee Chair to provide a report on the key matters discussed to the Board, and for the Board to consider any recommendations made.
– The Chair of the Committee also meets regularly with the External Audit partner, CFO, Group Financial Controller and Head of Security and Risk Management during the year, and specifically before Committee meetings.
– All of this, along with ongoing challenge, debate and engagement, allows the Committee to discharge its responsibilities effectively.

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Financial reporting

– Review the year end and interim financial statements and monitor the reporting process, including key judgements, estimates and assumptions and the presentation of significant transactions. Information on significant matters in relation to the financial statements that were considered by the Committee can be found on page 179.
– Review the appropriateness of accounting policies and practices.
– Review the Group’s internal controls in relation to the financial reporting process. Further detail on our risk management and internal controls processes can be found on pages 184 to 185.
– Advise the Board on the Group’s viability and going concern statements including the assumptions in plans, key risks considered, and the sensitivities tested. More information on the Committee’s assessment of the Group’s viability and going concern status can be found on pages 94 to 95.
– Review the content of the Annual Report and Accounts and advise the Board on whether, taken as a whole, they are fair, balanced and understandable and provide the information necessary for shareholders to assess performance, the business model and strategy. The Group’s strategy and business model are explained on pages 34 to 58 and 2 to 9 respectively.

External audit

– Assess the work of the External Auditor in relation to significant financial judgements and estimates made by management. More information is available on pages 182 to 183.
– Assess the effectiveness of the external audit process and the ongoing relationship with the External Auditor. This is done by considering their approach to the audit and understanding of our business, discussing their reporting and any issues identified and obtaining the views of management.
– Review and monitor the objectivity and the independence of the External Auditor, including our policy governing the provision of non-audit services. Refer to page 183 for more information on our process for maintaining their independence.
– Agree the remuneration of the External Auditors.
– Complete a robust audit tender process when required, in line with the Minimum Standard for Audit Committees.

Portfolio valuation

– Review the External Auditor’s assessment of the valuation, including an explanation as to how the valuation is audited.
– Consider, alongside the Board, the objectivity and independence of the external valuers.
– Review and challenge, along with the Board, the methodology, assumptions and judgements used by the external valuers to ensure they are appropriate.

Internal controls and risk management

– Review the adequacy and effectiveness of the Group’s overall risk management processes that inform the Board’s decision making, including the design, implementation and effectiveness of those processes.
– Review the Company’s statement on internal control systems and risk management prior to endorsement by the Board
– Review the effectiveness of the Group’s control environment, including the adequacy of key financial controls.
– Review whistleblowing arrangements whereby employees may, in confidence, raise concerns about possible improprieties in financial reporting or other matters, to receive assurance that there are proportionate and independent procedures in place. See page 98 for more information on our Whistleblowing Policy.
– Review the Group’s procedures for preventing and/or detecting fraud.
– Review the Group’s procedures for the prevention and detection of bribery and monitor the reports generated by such procedures. See page 98 for more information on our Anti-Bribery Policy.
– Consider whether the Group should have an internal audit function.

Governance, best practice and development

– Keep up to date with changes to the UK Corporate Governance Code, specifically regarding the effectiveness of the internal control environment.
– Keep up to date on investor, shareholder and market sentiment (with advice from the Company’s brokers).
– Keep up to date with regulatory and legislative matters relevant to the Group including developments in accounting standards.
– Consider ESG matters in all decision making.
– Develop and approve the Committee timetable and planner which detail the areas of focus for the Committee each year.
– Discuss the assessment of the effectiveness of the Committee.
– Review and approve changes to the Committee’s terms of reference.

Internal controls

Pages 184 to 185

AUDIT COMMITTEE RESPONSIBILITIES
AUDIT, RISK AND INTERNAL CONTROL CONTINUED
THE ROLE OF THE AUDIT COMMITTEE CONTINUED

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Page
Valuation of the investment property portfolio
179
Developing a robust viability statement
181
Fair, balanced and understandable reporting
182

SIGNIFICANT MATTERS CONSIDERED BY THE COMMITTEE

Our properties are critical to our business and the valuation demonstrates the value that we are delivering to our shareholders. It is a measure of how well we are managing our buildings and driving rental income. Furthermore, the valuation is a major component of Total Property Return, which is a key performance indicator. The valuation of the investment property portfolio is inherently subjective, requiring significant judgement. The valuation is conducted externally by independent valuers, CBRE, one of the world’s largest commercial real estate services firms. Given its significance, management, the Board and the Committee monitor the objectivity and independence of the valuers, and review the methodology and outcomes of the valuation, challenging the key assumptions and judgements. BDO met with the valuers and they presented their views on the valuation to the Committee, as well as an explanation of how the valuation is audited. The Board and Committee were satisfied that the methodology, assumptions and judgements used by the valuers were appropriate, that the valuations were suitable for inclusion in the financial statements and the work of the External Auditor was appropriate. A number of meetings are held between key management and CBRE ahead of the valuation at which the inputs and methodology of the valuation are discussed. Key discussions include:
– London commercial property market: current trends and circumstances expected to affect the market are discussed.
– comparable market evidence: recent transactions are considered and compared to assumptions made in valuing our portfolio.
– development projects: we provide CBRE with any updates to ongoing or future schemes and we discuss the assumptions CBRE has made, particularly for more complex schemes where more significant levels of judgement are required.
– estimated rental values: the estimated rental values proposed by CBRE are discussed and reviewed, with management ensuring that these are in line with our recent rental activity.
– property information: we provide CBRE with information on any changes to properties that may affect the valuation.
– other inputs used by the valuers are reviewed and discussed.

VALUATION OF THE INVESTMENT PROPERTY PORTFOLIO

AUDIT, RISK AND INTERNAL CONTROL CONTINUED

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Strategic Report
Our Governance
Financial Statements
Additional Information

The Committee considers all financial information published in the full and interim financial statements and considers accounting policies adopted by the Group, presentation and disclosure of the financial information. The Committee challenges the key judgements and estimates made by management in preparing the financial statements. The Committee pays close attention to matters it considers to be important by virtue of their impact on the Group’s results, or the level of complexity, judgement or estimation involved in their application on the consolidated financial statements.

AUDIT, RISK AND INTERNAL CONTROL CONTINUED
SIGNIFICANT MATTERS CONSIDERED BY THE COMMITTEE CONTINUED

The Committee reviewed a number of other key matters which have been considered by management and discussed with BDO, including uncertainties relating to the collection of trade receivables, the classification of assets held for sale and accounting for disposals made during the year.

£2.368bn
PROPERTY VALUATION

67
LOCATIONS

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Strategic Report
Our Governance
Financial Statements
Additional Information

RESPONSIBILITY

Risk Management

Group Executive Committee
Heads of Department

The strategic and operational risks were reviewed to identify the principal risks to viability over the period under consideration. The risks that would impact solvency and liquidity, either individually or in combination with other risks, were considered.# AUDIT, RISK AND INTERNAL CONTROL CONTINUED

SIGNIFICANT MATTERS CONSIDERED BY THE COMMITTEE CONTINUED

DEVELOPING A ROBUST VIABILITY STATEMENT

THE PROCESS WE FOLLOWED:

STAGE 1: RISK IDENTIFICATION

STAGE 2: SCENARIO SENSITIVITY ANALYSIS

STAGE 3: RISK ASSESSMENT CONCLUSIONS

STAGE 4:

For each risk, the following factors were considered:
– our risk appetite (the level of risk the Board is willing to take);
– the controls in place to mitigate the risk; and
– the quantum of risk.

For those risks identified as being severe enough to impact the viability of the Group, sensitivity analysis was performed to understand the potential impact on liquidity and financial ratios.

The Audit Committee considered the findings from this analysis and made their recommendations to the Board, who were given the opportunity to question the process and the findings.

As part of the Group’s Viability Statement, the following factors were considered:
– the Group’s current financial and operational position and the current economic outlook;
– the Group’s cash flows, financing headroom and financial ratios; and
– reassessment of key risks and their potential impact on the business model.

On behalf of the Board, the Committee has considered whether, in its opinion, this Annual Report and Accounts, taken as a whole, is fair, balanced and understandable and whether it provides the information necessary for shareholders to assess the Group’s position, performance, business model and strategy.

FAIR, BALANCED AND UNDERSTANDABLE REPORTING

COMMITTEE REVIEW

Audit Committee review
The Committee reviewed the Annual Report at an early stage, and throughout the process, to enable sufficient time for comment and review and to check overall balance and consistency.

REPORT

Report from the CFO and Group Financial Controller
The Committee discussed a report from the CFO and the Group Financial Controller covering the financial statements within the Annual Report and Accounts: this highlighted the significant changes and the areas of focus in the financial statements and commented on any new accounting standards in the period.

ASSESS

Fair, balanced and understandable assessment
A fair, balanced and understandable assessment looking at the Annual Report and Accounts as a whole was prepared by the management team and circulated to the Committee. This assessment highlights factors which support the responsibility of the Committee.

EXTERNAL REVIEW

External Audit Review
The External Auditor presented the results of its audit work to the Committee.

RECOMMEND

Recommendation to Board and Board’s conclusion
The Directors consider the Annual Report and Accounts, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Group’s position and performance, business model and strategy.

EXTERNAL AUDIT

Following a competitive tender process, BDO were appointed by the shareholders as the Workspace External Auditor for the financial year ended 31 March 2025.

Fees payable to the External Auditor for audit and non-audit services are set out in note 2 on page 251. This year, the non-audit services performed by BDO included the review of the Group’s half-year results.

Audit quality
An important part of the Committee’s work consists of overseeing the relationship with, and performance of, the External Auditor, in particular with regards to the independence, quality, rigour and challenge of the external audit process. The Committee reviews the effectiveness of the audit throughout the year taking into account:
– the detailed audit strategy for the year including scope of work and coverage of any risks;
– the quality, knowledge and expertise of the audit engagement team;
– insight around the key accounting and audit judgements;
– the External Auditor’s mindset, objectivity and approach to challenging management’s assumptions and judgements where necessary;
– the quality of reporting and discussions at the Audit Committee meetings; and
– the outcome of the review of effectiveness of the External Auditor and the audit process discussed below.

The Committee discussed with BDO the risks to audit quality that they identified and how these have been addressed, including the key audit firm and network level controls they relied on. The Committee also enquired about the findings from internal and external inspections of their audit and their audit firm. Annually, the Committee assesses the qualifications, expertise, resources and independence of the Group’s External Auditor, as well as the effectiveness of the audit process. This includes reviewing the FRC AQR results for BDO as part of the audit strategy discussion. The Chair of the Committee also meets with the audit partner during the year and specifically, ahead of Audit Committee meetings.

The Committee reviewed the content of the External Auditor’s reporting, incorporating internal control recommendations, and other communications with the Audit Committee and it concluded it is based on a good understanding of the Company’s business. The Committee considers that the External Auditor demonstrates professional scepticism by critically assessing information provided by the Group, assessing the reasonableness of management assumptions and seeking corroborative evidence where necessary. The External Auditor raised challenges to management’s assumptions and estimates during the audit, including those detailed on page 179.

Audit plan
During the year, the Committee considered the audit plan created by BDO and were satisfied that the plan included appropriate responses to the risks which had been identified. At the Audit Committee in May 2025, the Committee reviewed whether the External Auditor had met the agreed audit plan and to understand the reasons for any changes, including changes in perceived audit risks and the work undertaken by the External Auditors to address those risks. BDO did not make any specific commitments during the tender process in 2023/24 which required review by the Committee. There were no additional areas that the Committee required BDO to consider other than the key audit matters, detailed on page 236 to 237.

181 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

EXTERNAL AUDIT CONTINUED

As noted above, BDO was appointed at the start of the year following a competitive tender process, as detailed in the 2024 Annual Report, and provided external audit services to the Group for this financial year. The Committee has discussed the quality of the audit work provided by BDO since their appointment. A preliminary view has been reached that the Committee is satisfied with their level of competence and professional scepticism applied in challenging the Group’s policies and assumptions and the overall quality of work. Following the external audit for this financial year, a full review will be undertaken of the audit process and feedback discussed with BDO.

THE EFFECTIVENESS OF EXTERNAL AUDIT

In addition to reviewing effectiveness, the Committee considered the independence and objectivity of the External Auditor through a combination of assurances provided by the External Auditor on the safeguards in place to maintain independence; oversight of the Non-Audit Services Policy and fees paid. BDO have confirmed to the Committee that:
– the audit of the consolidated financial statements is undertaken in accordance with the UK firm’s internal policies and procedures;
– they have internal procedures in place to identify any aspects of non-audit work which could compromise their role as auditor and to ensure the objectivity of their audit report;
– they believe that, in their professional judgement, the safeguards they have in place sufficiently guard against the threats to independence;
– the total fees paid by the Group during the year do not represent a material part of the firm’s fee income; and
– they consider that they have maintained audit independence throughout the year.

The Committee is satisfied that the External Auditor is independent. The Audit Committee will continue to review the effectiveness and the independence of the External Auditor each year.

The Group has complied with the Competition and Markets Authority’s Statutory Audit Services Order 2014 relating to audit tendering and the provision of non-audit services during the financial year ended 31 March 2025. It is the Group’s intention to put the audit out to tender at least every ten years. The external audit was last tendered in 2023 following which the External Auditor changed from KPMG LLP to BDO with effect from the audit in respect of the financial year ended 31 March 2025. There are no contractual obligations which restrict the Committee’s choice of External Auditor or which put in place a minimum period for their tenure.

AUDITOR INDEPENDENCE AND OBJECTIVITY

The full review will focus on areas such as the effectiveness of the audit, the delivery and execution of the external audit process, the efficiency and performance of the audit team, communication and engagement with the management team and the quality and regularity of contact.

182 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

Our strategy Pages 34 to 58# AUDIT, RISK AND INTERNAL CONTROL CONTINUED

Having considered the quality of the external audit and the effectiveness and independence of the External Auditor, the Audit Committee has recommended to the Board that BDO be reappointed as the Company’s External Auditor for the financial year ended 31 March 2026 and the Board has accepted the recommendation. A resolution proposing BDO’s reappointment will be put forward to shareholders at the AGM to be held on 16 July 2025. As required by the Code, the Audit Committee has a formal policy governing the engagement of our External Auditor to supply non-audit services and to assess the threats of self-review, self-interest, advocacy, familiarity and management. If the External Auditor is to be considered for the provision of non-audit services, the scope of work and the fees must be approved in advance by the Chief Financial Officer, the Company Secretary and the Chair of the Audit Committee. For larger assignments, in excess of £100,000, this would involve a competitive tender process, unless there are compelling commercial or timescale reasons to use the External Auditor or another specific accountancy firm.

SAFEGUARDING AUDITOR INDEPENDENCE

AUDIT AND NON-AUDIT FEES (BDO) 2024–2025

Item	Amount
Audit	£570k
Non-Audit	£67k

AUDIT AND NON-AUDIT FEES (KPMG) 2023–2024

Item	Amount
Audit	£714k
Non-Audit	£97k

AUDIT AND NON-AUDIT FEES (KPMG) 2022–2023

Item	Amount
Audit	£440k
Non-Audit	£70k

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Strategic Report Our Governance Financial Statements Additional Information

AUDIT, RISK AND INTERNAL CONTROL CONTINUED

The Committee, on behalf of the Board, keeps under review the effectiveness of the Group’s risk management and internal control systems through management updates and output from the Group’s Risk Management Group to ensure that the controls in place are effective. This framework is designed to manage rather than eliminate business risks and to provide reasonable assurance against material misstatement in the financial statements. On the basis of the processes outlined on this page and having regard to the ‘Guidance on Risk Management, Internal Control and Related Financial and Business Reporting’ issued by the FRC in September 2014, the Board, supported by the Audit Committee, has reviewed the effectiveness of the risk management and internal control systems. No significant control failings or weaknesses were identified during the period under review. As noted on page 176, a post-implementation review of our new finance and property management system by Grant Thornton identified a number of opportunities to enhance our processes and control environment in relation to the new system. In addition, as also noted on page 176, BDO highlighted a number of recommendations relating to the Company’s IT General Controls, identified during the course of their audit. The majority of their recommendations have been implemented, and there is a plan in place to remediate the remaining items. The Committee is satisfied that appropriate mitigating, monitoring and review controls exist and a comprehensive action plan is in place to deliver these enhancements. The Directors confirm that the processes described below have been in place during the 2024/25 financial year and up to the date of approval of the Annual Report and Accounts.

Audit Committee

The Audit Committee has a key role in developing appropriate governance and challenge around risk management and considering processes and assurance. It also sets the tone and culture within the organisation regarding risk management and internal control.

The Board

The Board has defined its risk appetite for strategic and operational risks. A standard methodology for risk assessment is applied across the Group to assist with monitoring inherent and residual risk and to assist with comparing residual risk against target risk. The Group had the following key procedures and monitoring processes in place during the year to provide effective internal control:

• an ongoing process to identify, evaluate and manage risks, including the self-certification of controls by risk owners, which is monitored and regularly reviewed by the Risk Management Group and Executive team. Significant issues are presented to the Board and Audit Committee;
• the Group’s key controls include appropriate segregation of duties that are embedded across the organisation;
• on behalf of the Board, the Audit Committee reviews fraud and anti-bribery policies and procedures and annual anti-bribery training is in place for all employees. There have been no reported instances of bribery or corruption during the period under review;
• the Group has in place a monthly process for, reporting and reviewing financial performance, against its business plan;
• monthly performance packs, including those used to prepare annual and half-year statements, are approved by the CEO and distributed to the Board;
• on behalf of the Board, the ESG Committee reviews the Group’s environmental and social related risks;
• the Audit and ESG Committees met jointly in January 2025 to discuss policies, procedures and assurance; and
• the Audit Committee reviews technology risks including IT systems and cyber risk, to ensure that the Group’s IT function effectively implements preventative and detective controls to monitor and to mitigate risk.

As required by the Code, the Board, through the Audit Committee has carried out a robust assessment of the principal and emerging risks facing the Group, including those that could threaten its business model, future performance, solvency or liquidity.

Corporate Governance Code 2024

The Committee has discussed the changes to the UK Corporate Governance Code, the majority of which apply to the Group from the financial year commencing 1 April 2025. In particular, the Committee discussed provision 29 relating to the effectiveness of risk management and internal controls, which will apply for the Group’s financial year commencing 1 April 2026. The Risk Management Group is in the process of identifying our material controls, with a view to ensuring that these are agreed with the Committee along with the relevant processes to document their effectiveness, well in advance of the new provision 29 becoming effective.

RISK MANAGEMENT AND INTERNAL CONTROLS

This assessment is further described in the Strategic Report Pages 86 to 93

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Strategic Report Our Governance Financial Statements Additional Information

OUR RISK MANAGEMENT FRAMEWORK

The Audit Committee oversees the Group’s risk management framework with the Board retaining overall responsibility for risk appetite and strategy, in particular for risks relating to valuation, development and real estate. The overall risk management framework is reflected below.

• Risk owners
  • Each risk identified by the Group is assigned a Risk Owner.
  • Risk Owners are responsible for monitoring, managing and reporting on their risks, as well as identifying any emerging risks.
• Risk Management Group
  • Chaired by the Head of Security and Risk Management and responsible for the implementation and embedding of risk management activities.
  • Reviews and challenges the risk information provided by Risk Owners.
  • Reports to the Executive Committee, although the Audit Committee has the power to request attendance or reports from the Risk Management Group directly if it is felt this is necessary.
• Executive Committee
  • Oversees and manages the Group’s day-to-day risk management procedures.
  • Reports to the Audit Committee on the operation and effectiveness of controls.
• Audit Committee
  • Oversees the Group’s risk management framework.
  • Reviews the Company’s annual report disclosures on internal control systems and risk management prior to endorsement by the Board.
• Board of Directors
  • Sets the Group’s overall risk appetite, tolerance and strategy.
  • Oversees the Group’s principal risks, including property valuation, development and real estate risks.
  • Receives advice and recommendations from the Audit Committee and Executive Committee.

AUDIT, RISK AND INTERNAL CONTROL CONTINUED

RISK MANAGEMENT AND INTERNAL CONTROLS CONTINUED

Due to its size and lack of complexity, the Group does not have an internal audit function, a matter reviewed by the Audit Committee during the year. The Committee has advised the Board that, currently, it considers there to be no need for an internal audit function. The External Auditor has confirmed this currently has no impact on their audit approach. The Group has a Head of Security and Risk Management whose responsibilities include chairing our Risk Management Group and the ongoing maintenance of our risk management and control processes. As part of our evolving internal assurance processes, the Head of Security and Risk Management has continued with a series of departmental control reviews across the business with 10 completed during the year. No significant issues were identified from these reviews. To supplement reviews of risk management and internal control, a programme of operational, facilities management and health and safety reviews are undertaken across our properties by qualified senior head office personnel. Any significant findings will then be reported to the Audit Committee. In addition, all key controls are recorded on a central register and, every six months, control owners are required to certify the effectiveness of controls for which they are responsible and to provide details of further actions to address any identified ineffectiveness. No significant issues were identified during the year.

INTERNAL AUDIT

Whistleblowing policy Page 98

OUR RISK MANAGEMENT PROCESS

• Identification
  • Risks are identified when projects are being considered or through being raised organically by members of staff.
  • Identified risks are captured in Risk Registers.
  • A Risk Owner is assigned to each risk and has responsibility for assessing and monitoring that risk.# ESG COMMITTEE REPORT

QUICK LINKS

• Membership and attendance at ESG Committee meetings
• Chair’s letter
• Governance of ESG matters at Workspace
• Spotlight on sustainable refurbishment
• ESG policies, procedures and related assurance

Sustainability is central to Workspace’s strategy and a key driver of value. Despite wider ESG headwinds, our commitment remains strong. The ESG Committee is focused on ensuring Workspace continues to lead the way, deliver meaningful impact, and build long-term resilience.

Manju Malhotra
Chair of the ESG Committee

ESG COMMITTEE REPORT CONTINUED

KEY TOPIC	ACTIVITY	OUTCOME
CREDIBLE CLIMATE LEADERSHIP	– Approved the proposal to reset SBTi aligned net zero targets. – Assessed the suitability of interim emission reduction milestones and the inclusion of key KPIs as performance targets for Executive Directors. – Endorsed the launch of Leroy House as our first net zero carbon building, with upfront embodied carbon offset using high-quality, credible credits. – Reviewed nature and climate interdependencies and approved the introduction of Workspace’s nature strategy.	Workspace is committed to climate transition, moving at pace. The business continues to take a proactive approach to managing nature-related risks and strengthening resilience to both climate and nature challenges.
LONG-LASTING SOCIAL IMPACT	– Reviewed Workspace’s strategy for delivering social impact and supported the decision to develop a flagship social impact programme aligned with the business model. – Evaluated the methodology for measuring and reporting social impact from direct corporate activities and across the value chain. – Assessed the suitability of incorporating the social value metric and diversity and inclusion goals into Executive Directors’ targets along with the Remuneration Committee. – Reviewed Workspace’s approach to stakeholder engagement on ESG, identifying key priorities for the year to enhance value creation.	Doubling down on the commitment to generate value for all stakeholders. Positioned to amplify impact and value creation through the flagship social impact programme.
BUILDING LONG-TERM RESILIENCE	– Evaluated the materiality of various ESG issues, weighing risks and opportunities for Workspace to identify priorities. – Assessed the effectiveness of climate risk management and internal controls. – Received a briefing on upcoming regulatory changes and evaluated compliance readiness.	A future-focused business approach that is resilient to evolving regulatory and market risks, supported by a materiality review that identified and prioritised key areas of opportunity.
LEADING THE WAY ON CORPORATE GOVERNANCE AND REPORTING	– Proposed ESG objectives for Executive Directors to the Remuneration Committee and assessed outcomes at year end. – Collaborated with the Audit Committee to review all ESG policies and assurance programmes for effectiveness. – Reviewed and approved ESG disclosures, along with feedback received, to identify opportunities for enhancing transparency in our reporting.	A robust governance framework for sustainability matters, with business-wide accountability in delivering strategic priorities. Reaffirmation of business commitment to transparent practices, by championing adoption of best practice sustainability disclosure.

MEMBERSHIP AND ATTENDANCE AT ESG COMMITTEE MEETINGS

MEMBER	SINCE	MEETINGS ATTENDED
Manju Malhotra (Chair)	2022	4/4
Duncan Owen	2022	4/4
Rosie Shapland	2022	4/4
Lesley-Ann Nash	2022	4/4
Nick Mackenzie	2022	4/4
Graham Clemett	2022	2/4
Dave Benson	2022	4/4
Lawrence Hutchings	2024	2/2
David Stevenson	2024	3/3

1. There were two ESG Committees held in January 2025. One meeting was a joint meeting with the Audit Committee.
2. Graham Clemett was unable to attend the ESG Committee meetings in January 2025, and stepped down from the Board on 31 January 2025.
3. Lawrence Hutchings joined the Board and the ESG Committee on 18 November 2024.
4. David Stevenson joined the Board and the ESG Committee on 1 June 2024.

As at 31 March 2025, the Committee consisted of the Board Chair, the five non independent Non-Executive Directors, the Chief Executive Officer and the Chief Financial Officer (biographies are available on pages 127 to 129). At the request of the Committee, members of the Executive Committee, the senior management team and/or external advisers may be invited to attend all or part of any meeting, as and when appropriate.

Meetings of the ESG Committee

During the year under review, the Committee held four meetings. These took place in April 2024, September 2024, January 2025 and a joint ESG and Audit Committee meeting was held in January 2025.

CHAIR’S LETTER

Dear shareholder,

I am pleased to present the ESG Committee Report for the year ended 31 March 2025. Since its formation in April 2022, the ESG Committee has played a central role in reinforcing the Board’s oversight of environmental and social matters. Our commitment to ESG is core to Workspace’s strategy and success. We view ESG and business priorities as one and the same. Our focus on the sustainability of our business model means that Workspace is well positioned to lead with purpose, drive meaningful impact, and capture the opportunities a forward-thinking ESG approach provides.

The Committee’s work is guided by four strategic themes: (i) Credible climate leadership; (ii) Long-lasting social impact; (iii) Building long-term resilience; and (iv) Leading the way on corporate governance and reporting. Through these themes Workspace has continued to deepen the alignment between ESG and core business strategy.

At a time when broader sentiment around ESG is softening, we remain resolute. We believe that delaying action is not an option. In fact, we see a narrowing window to capitalise on the early mover advantage, and we remain committed to lead from the front. This year, the Committee has played a pivotal role in shaping and supporting several key outcomes across all four themes: Accelerating our climate transition and deepening nature resilience, advancing meaningful and long-lasting social impact, strengthening stakeholder value creation and upholding high standards of ESG governance and risk management. Further details on these activities can be found on page 187.

Driving environmental stewardship

As part of our commitment to climate action, Workspace joined the Better Buildings Partnership (BBP) Climate Commitment in 2019, pledging to deliver a net zero carbon real estate portfolio. To reinforce this ambition and align with the 1.5°C pathway, the business has committed to Science-Based Targets (recently updated to reflect the latest Net Zero Standard) committing to reduce emissions by 90% by 2040, against 2020 baseline. This goal demands transformation across our entire business, and we are making real progress. I’m pleased to report that Workspace has reduced its emissions by 35% since 2020 baseline year, driven by a strong focus on operational excellence. A major milestone this year was the launch of Leroy House, our first net zero building, offering a tangible example of climate leadership in action (see page 7).

Recognising the intrinsic link between climate and nature, the Committee also reviewed Workspace’s dependencies and impacts on nature. As part of this work, the business launched its ‘Make Space for Nature’ strategy, which focuses on enhancing biodiversity and building long-term resilience for the business (see page 26, 117).

Delivering meaningful social impact

The ‘S’ in ESG is a vital value driver for Workspace. As home to around 4,000 of London’s brightest businesses and as custodians of over four million square feet across London, Workspace is deeply rooted in the communities it serves. This year, Workspace delivered over £22.8m in social value across its operations and supply chain.

As Chair of the ESG Committee, my focus is on ensuring Workspace remains at the forefront of ESG and creates value for all stakeholders. This can only be achieved through the true integration of environmental and social impact within our business strategy.# GOVERNANCE OF ESG MATTERS AT WORKSPACE

BOARD OF DIRECTORS

ESG COMMITTEE

Chaired by Manju Malhotra
Key responsibilities:
– Ensuring requisite strength of Board ESG expertise
– Ensuring adequate resource
– Driving Board focus on ESG

NOMINATIONS COMMITTEE

Chaired by Duncan Owen
Key responsibilities:
– Integrity of ESG disclosures and targets
– Strategic risk management, including reputational risk

REMUNERATION COMMITTEE

Chaired by Lesley-Ann Nash
Key responsibilities:
– Detailed scrutiny and oversight of ESG
– Aligning compensation with ESG goals
– Ensuring clarity of ESG metrics and KPIs

AUDIT COMMITTEE

Chaired by Rosie Shapland
Key responsibilities:
– (Implicitly linked to ESG through joint meetings and assurance reviews)

The role of the Board

The role of the Board is to maintain close oversight of the ESG programme, ensuring long-term sustainable success of the business. An ESG Committee has been set up comprising of all the members of the Board – the Board Chair, the five independent Non-Executive Directors, the Chief Executive Officer and the Chief Financial Officer, to ensure ESG considerations are effectively integrated in business strategy and decision making. The ESG Committee receives detailed update on Workspace’s sustainability strategy and targets three times a year, from members of the Executive Committee and the Head of Sustainability. The ESG Committee also informs the working of other Board Committees with ESG considerations as it pertains to remuneration, nominations and audit functions.

Management responsibility

The Executive Committee is responsible for creating a sustainability strategy for the business and individual Executive Committee members are responsible for leading on the delivery of environmental and social programmes. The Executive Committee receives monthly updates on ESG matters, including progress against the annual ESG targets. At an operational level, the day-to-day management of ESG initiatives is managed by the members of the Environmental and Social Sustainability Committees, cross-function groups comprising heads of departments who are responsible for individual workstreams. Both these Committees include several Executive Committee members, which ensures senior level ownership and oversight of implementation plans and streamlines communication to the wider Executive Committee and the Board.

Ownership and accountability

ESG considerations are embedded across the business, ensuring there is clear oversight and accountability at each level – at Board level, at Executive level and at operational delivery level. Further, the core ESG targets for the business have been translated into performance objectives for relevant teams and are linked to their remuneration.

Terms of Reference

The Committee’s role and responsibilities are set out in the terms of reference, the latest version of which are available on the Company’s website at www.workspace.co.uk/investors/about-us/governance/board- committees.

Performance of the ESG Committee

As part of this year’s Board effectiveness review, the performance of the ESG Committee was assessed through an internal evaluation. The review concluded that the Committee is operating effectively. The broad scope of environmental and social issues considered at Committee meetings was recognised, reflecting the growing emphasis in ensuring long-term business resilience, deepening understanding of organisational culture, and aligning ESG priorities more closely with overall business strategy.

ESG COMMITTEE REPORT CONTINUED

ESG COMMITTEE CHAIR’S LETTER CONTINUED

To deepen this impact, the Committee steered the development of Workspace’s flagship social impact programme, Growth Happens at Workspace, with a focus on skills and employment (see page 58). This programme aligns closely with our core business and positions Workspace as a genuine leader in social impact.

Embedding ESG into the workings of other Committees

To ensure the ESG agenda is not siloed, we also identified ways in which ESG considerations are embedded within the workings of other Committees. We held a joint meeting with the Audit Committee to review the ESG policies and effectiveness of the assurance programme in place. The Committee worked closely with the Remuneration Committee to set ESG linked performance targets that are aligned to core business priorities. ESG input also informed discussions at the Nominations Committee regarding requisite expertise at Board level.

Looking forward

Workspace’s ambition to grow with impact remains unwavering. As a Committee, we will continue to guide the business to ensure ESG remains deeply embedded and its impact closely measured. We will also continue to assess key value drivers to ensure every sustainability opportunity is explored, strengthening Workspace’s position as a leader and enhancing long-term business resilience.

Manju Malhotra
Chair of the ESG Committee
4 June 2025

Workspace Group PLC Annual Report and Accounts 2025
Strategic Report | Our Governance | Financial Statements | Additional Information

Workspace is proud to be at the forefront of sustainable development in London, championing a refurbishment-led approach. By transforming existing buildings into high-quality work spaces, we significantly reduce our environmental impact while enhancing long-term value. This approach cuts emissions by 40–70% compared to new builds. A standout example is Leroy House in Islington – our first net-zero building. Originally a 1930s watchmaker’s factory, 90% of its structure was retained in its transformation into a modern hub for London’s creative community – blending heritage with innovation.

1.2m sq.ft. SUSTAINABLE REFURBISHMENTS DELIVERED OVER THE LAST 10 YEARS

We take great pride in our refurbishment-led ethos at Workspace. Leroy House is evidence that retrofitting, not rebuilding, delivers the best outcomes for our customers, the community and the environment.

Lawrence Hutchings
Chief Executive Officer

ESG COMMITTEE REPORT CONTINUED

SPOTLIGHT ON REFURBISHMENT- LED APPROACH

Workspace Group PLC Annual Report and Accounts 2025
Strategic Report | Our Governance | Financial Statements | Additional Information

Workspace holds an annual joint meeting of the Audit Committee and ESG Committee to review and approve a comprehensive assurance programme that assesses the effectiveness of ESG-related policies and processes. The table opposite outlines the policies and procedures that support the execution of Workspace’s ESG strategy. These policies are designed to guide the Company in conducting business in an environmentally and socially responsible manner, ensuring that sustainability is fully integrated into the Company’s operations and decision making. Following a detailed review, both Committees confirmed that all ESG policies are being effectively implemented and are supported by a robust assurance framework.

ESG COMMITTEE REPORT CONTINUED

ESG POLICIES, PROCEDURES AND RELATED ASSURANCE

KEY TOPIC	ACTIVITY	OUTCOME
ENVIRONMENTAL
Environmental and climate change policy	Ensures that we conduct our business in an environmentally and climate responsible way.
Net zero pathway	Ensures that we have quantifiable emission reduction targets and a clear plan to achieve net zero carbon in alignment with a 1.5°C future.
Sustainable development brief	Sets minimum requirements for our development and refurbishment projects on energy, carbon, waste, water, materials, nature and wellbeing.
Green finance framework	A framework used by Workspace to issue a green debt instrument including green bonds, private placement, and green loans.
Climate risk register and disclosure	A climate risk register to ensure the business has a robust process to assess and manage climate risk. The document is published externally in the form of Task Force on Climate-related Financial Disclosures (TCFD) in the annual report.
Nature and biodiversity strategy	Ensure the business effectively manages its impact and dependency on nature and biodiversity, while remaining resilient to the challenges posed by the climate and nature emergencies.
SOCIAL
Health and safety policy	Ensures the business meets its obligations under Health and Safety legislation, reduces accidents and controls health and safety risks to employees and others who may be affected by our activities.
Supplier code of conduct	Sets out Workspace’s principles for ethical conduct and behaviour in business practices. The Supplier Code of Conduct also ensures that our suppliers, contractors, service providers and representatives live up to our values and standards.
Modern slavery statement	Sets out a zero-tolerance stance towards slavery and human trafficking for Workspace’s operations and amongst its suppliers.
Social impact framework	Sets out Workspace’s strategy for delivering positive stakeholder impact. The framework is published externally in the Annual Report.
Equal opportunities and dignity at work policy	Sets out Workspace’s expectations and standards regarding equal opportunities and dignity at work. The policy also outlines managerial and staff responsibilities to ensure the business’ principles are observed.
Diversity and inclusion	Ensures the business is committed to supporting diversity and creating an inclusive culture.
Sexual harassment policy	Ensures the business provides a safe environment for all Workspace employees, free from discrimination on any ground and from harassment at work including sexual harassment.
Human rights policy	Sets out Workspace’s commitment to respecting fundamental human rights, including as defined by the United Nations Universal Declaration of Human Rights and the International Labour Organisation’s Declaration on Fundamental Principles and Rights at Work.
GOVERNANCE
ESG-linked remuneration	Ensures ESG is treated as a strategic priority for the business, with leadership accountability.

Membership and attendance at Remuneration Committee meetings

Our aim is to ensure remuneration is closely aligned with the Company’s purpose, culture and values thereby maintaining a remuneration approach that motivates our people, supports our strategic goals, as well as fulfilling our duties to our shareholders and all other stakeholders

Lesley-Ann Nash
Chair of the Remuneration Committee

The Committee consists of Non-Executive Directors and is chaired by Lesley-Ann Nash. Details of individual attendance at the meetings held during the year are set out above. More information on the skills and experience of all Committee members can be found on page 163.

Support for the Remuneration Committee

During the year, the Committee sought external support from PwC and internal support from the CEO and CFO, who attended Committee meetings by invitation from the Chair, to advise on specific matters raised by the Committee, particularly those relating to the performance and remuneration of the senior management team. The Company Secretary attended each meeting as Secretary to the Committee. No Director was present for any discussions that related directly to their own remuneration.

MEMBERS	SINCE	MEETINGS ATTENDED
Lesley-Ann Nash (Chair)	2021	5/5
Duncan Owen	2023	5/5
Rosie Shapland 1	2020	4/5

1. Rosie Shapland was unable to attend one meeting of the Committee due to personal reasons.

KEY TOPICS CONSIDERED BY THE COMMITTEE DURING THE YEAR

| KEY TOPIC | ACTIVITY # Lesley-Ann Nash Chair of the Remuneration Committee

Workspace Group PLC Annual Report and Accounts 2025

Strategic Report

Our Governance

Financial Statements

Additional Information

The Committee has spent time ensuring that our remuneration arrangements support the performance of the business during the year and continues to be guided by its key principles which are detailed on page 202 and our approved Directors’ Remuneration Policy. The Committee intends to conduct a more detailed review of the alignment of our Policy to our strategy during the year to ensure it remains fit for purpose ahead of submitting it for renewal at our 2026 AGM.

Business performance and experience of our stakeholders

Against the backdrop of an uncertain and challenging macroeconomic environment, which impacted customer activity throughout the year, the Company has delivered a resilient set of results. Our trading profit for the year was £66.8m and we have continued progress on capital recycling from the disposal of non-core assets. However, occupancy has been down, and a key part of our evolving strategy is centred on ensuring we attract and retain our customers. Our focus on operational excellence and business-wide accountability on sustainability continues to drive significant progress. We have continued to execute our rolling pipeline of refurbishment and redevelopment projects, and our balance sheet remains strong with £260m of cash and undrawn facilities. We are also continuing to deliver a climate-resilient portfolio, evidenced by the reduction in our energy consumption, whilst also scaling our social impact through our lettings in kind programme and ongoing InspiresMe programme, providing work experience and careers advice for students and disadvantaged young people in our communities.

The Board is proposing a final dividend of 19.0p, resulting in a total dividend for the year of 28.4p. However, the Board is acutely aware of our share price performance over the past 12 months and remains committed to delivering returns to shareholders and believes our evolved strategy positions us strongly to deliver long-term success.

In reviewing the outcomes for 2024/25 remuneration for our Executive Directors, the Committee actively considered the wider context, including the experience of all the Company’s stakeholders during the year, such as our shareholders, employees, customers and suppliers. A more detailed summary of how the remuneration outcomes align with the experience of our other stakeholders is set on page 202.

Remuneration outcomes in 2024/25

The 2024/25 Annual Bonus was assessed against financial objectives (70% of maximum opportunity) and sustainability, operational efficiency and customer satisfaction targets (30% of maximum opportunity). The strategic financial objectives relating to reducing our large voids and our capital recycling target were met. We also made progress against our sustainability and operational efficiency objectives, and met our customer satisfaction targets. However, given the macroeconomic challenges facing the Company, 98% of the stretching threshold target set for the trading profit measure was achieved, meaning no payout under this element. The formulaic outcome under the bonus was therefore 43.3% of maximum.

In line with our Policy, the Committee reviewed the outcome of each measure and also undertook a holistic view of the outturn versus underlying performance and value delivered to our shareholders. We have also considered the treatment of bonus payments across the organisation. As a result of this review, and in light of the trading-profit target for the year not being met and the misalignment between the achievement

99.8% SUPPORT FOR OUR DIRECTORS’ REMUNERATION POLICY AT THE 2023 AGM
99.3% SUPPORT WE RECEIVED FOR OUR 2024 DIRECTORS’ REMUNERATION REPORT

REMUNERATION CONTINUED

Workspace Group PLC Annual Report and Accounts 2025

Strategic Report Our Governance Financial Statements Additional Information

of financial and non-financial objectives, the Committee has decided to exercise its discretion to reduce the bonus outcome of 43.3% by 35% for each of the Executive Directors. This therefore means a bonus outturn of 28% of maximum. The Committee is comfortable this approach is fair and proportionate in the context of the Company’s underlying performance. Further details on the attainment of applicable performance conditions can be found on page 218.

Lawrence’s eligibility to participate in the Company’s Annual Bonus Plan was at the discretion of the Committee. It was agreed that he should participate, with his opportunity pro-rated to reflect the proportion of 2024/25 he was employed. He was subject to the same performance conditions which applied to the other Executive Directors, and the downwards adjustment of the bonus outcome.

Vesting of 2022 LTIP

The LTIP awards granted to Executive Directors in 2022 were subject to performance conditions measured over the three financial years from 1 April 2022 to 31 March 2025. The vesting of 50% of this award was subject to Total Shareholder Return (TSR) performance relative to FTSE 350 Real Estate companies (excluding agencies), with the remaining 50% subject to Total Property Return (TPR) versus IPD Benchmark. Having tested the performance conditions, TPR performance was above upper quartile, meaning this element vested in full. TSR performance, however, was below median meaning that this element did not pay out. Therefore, the overall formulaic outcome was 50%. As per our Policy, a performance underpin applies to the LTIP which allows the Committee to reduce vesting if the outturn is inconsistent with the overall performance of the business.

In reviewing this, the Committee considered a range of factors, including a decline in the Company’s share price over the performance period and misalignment in outcomes under the two LTIP measures. As a result, the Committee has decided to exercise its discretion to reduce the vesting outcome, resulting in an outcome of 25% of maximum. The Committee believes this adjustment is appropriate, particularly as this is above the LTIP’s 20% vesting threshold.

SUMMARY OF EXECUTIVE DIRECTORS’ TOTAL REMUNERATION

The tables below set out a single figure for the total remuneration received by each Executive Board Director for the year ended 31 March 2025. The full table can be found on pages 217.

	2024/25 £000
Fixed pay
Base salary	208.9
Pension 1	12.5
Benefits 2	1.2
Total fixed	222.6
Variable pay
Annual bonus 3	88.2
LTIP 4,5	NIL
Other (SAYE, SIP, Buyouts)	250.0
Total variable	338.2
Total	560.8
of which share price growth	0
Fixed pay
Base salary	463.7
Pension 1	46.4
Benefits 2	18.2
Total fixed	528.3
Variable pay
Annual bonus 3	195.8
LTIP 4,5	188.4
Other (SAYE, SIP)	NIL
Total variable	384.2
Total	912.5
of which share price growth	0
Fixed pay
Base salary	400.0
Pension 1	40.0
Benefits 2	NIL
Total fixed	440.0
Variable pay
Annual bonus 3	135.1
LTIP 4,5	149.3
Other (SAYE, SIP)	NIL
Total variable	284.3
Total	724.3
of which share price growth	0
Lawrence Hutchings 6		Chief Executive Officer (Joined 18 November 2024)
Graham Clemett 7		Outgoing Chief Executive Officer and Director (1 April 2024 to 31 January 2025)
Dave Benson		Chief Financial Officer

1. Pension: During 2024/25 each of Messrs Hutchings, Clemett and Benson received a cash allowance in lieu of pension contribution.
2. Benefits: Taxable value of benefits received in the year by Executive Directors includes a car allowance, private health insurance and death in service cover.
3. This is the total bonus earned in respect of performance during the relevant year. For 2024/25, the Committee set a minimum deferral requirement of 33% of the bonus earned. This deferral was equivalent to £29,108 for Mr Hutchings, £64,607 for Mr Clemett and £44,573 for Mr Benson. For Messrs Hutchings and Clemett their respective bonus amount have been pro-rated for time served during the year ended 31 March 2025.
4. None of the LTIP single figure is attributable to share price growth.
5. The 2024/25 figure includes the estimated value of 25% of the 2022 LTIP shares that vested based on performance to 31 March 2025 and the application of the Remuneration Committee’s discretion. The share price used is the three-month average to 31 March 2025 of £4.47. This will be updated in next year’s report to reflect the share price on the date of vesting. As allowable under the relevant plan rules and approved Policy, the Committee determined that dividend equivalents are payable under the 2022 LTIP award – this figure therefore includes the value of dividend equivalents accrued on the shares that are vesting over the relevant performance period.
6. Mr Hutchings joined the Company on 18 November 2024, with a total salary of £208,889 earned up to 31 March 2025.
7. Mr Clemett retired from the Company on 31 January 2025; his total salary earned up to that date was £463,667.
8. Mr Hutchings was granted a buyout award upon joining the Company, to compensate for incentives forfeited from his previous employer. The value shown in the table above relates to the first tranche of this award, which is subject to a continued employment requirement throughout the vesting period. Further details are set out on page 223.

Proposed implementation of policy for 2025/26

The Director’s Remuneration Policy was last tabled to shareholders in July 2023 and this received overwhelmingly strong support. In light of our evolving strategy, we are making some immediate changes to our annual bonus and LTIP measures to improve the alignment between our strategic priorities and remuneration, and will conduct a further review over the course of the year before putting a revised Policy to vote at our 2026 AGM, in line with the regulatory requirement to do so.

Base salary

The CEO and CFO will not receive a base salary increase for the upcoming year.# REMUNERATION CONTINUED

Annual Bonus 2025/26

During the year, the Committee undertook a review of our annual bonus measures within the context of our evolved strategy. As a result, it was determined that the weighting of the operational efficiency measure be increased to 12.5% and the sustainability objective measure be reduced to 7.5%. Targets for the annual bonus are set at the beginning of the year and will be disclosed in full at the end of the performance year. See page 224 for further details.

Workspace Group PLC Annual Report and Accounts 2025
Strategic Report | Our Governance | Financial Statements | Additional Information

2025 LTIP

The Committee also reviewed the LTIP performance measures and determined that these measures continue to remain fit for purpose. However, we are proposing to change the weighting of the Total Accounting Return (TAR) and Environmental, Social and Governance (ESG) metrics. Therefore, the measures that will apply to the 2025 LTIP award are as follows: Total Shareholder Return (TSR) relative to FTSE 350 Real Estate companies (excluding agencies) (25%), TAR (35%), Earnings Per Share Growth (EPS) (25%) and Environmental, Social and Governance (ESG) metrics (15%). We have chosen to increase the weighting on the TAR measure as it is a core measure of the successful execution of our strategy, representing the value we have created for shareholders in the form of dividends paid and growth in net asset value. Sustainability remains important to how we design and operate our buildings, as well as support our people and local communities, and therefore the Committee agreed that a meaningful proportion of the LTIP should continue to be assessed against ESG metrics. Sustainability remains a key competitive advantage for us, with businesses increasingly willing to pay more for highly rated sustainable space, which in turn delivers value to shareholders. As with previous awards, a performance underpin applies to this award which allows the Committee to reduce vesting if the outturn is inconsistent with the overall performance of the business, individual performance or wider considerations. The Committee will review the impact of any windfall gains on vesting of the 2025 LTIP Award. Further details of the 2025 LTIP are on page 225.

Chief Executive Officer (CEO) Succession

In January 2024, we announced Graham Clemett’s intention to retire from his role as Chief Executive Officer and I would like to thank him for his dedication and commitment in this role. On 8 May 2024, we were pleased to announce that Lawrence Hutchings would become the new CEO and he took-up the role and joined the Board on 18 November 2024. The remuneration arrangements of the incoming and the outgoing CEO are in line with our Directors’ Remuneration Policy approved by shareholders. On appointment, Lawrence Hutchings’ base salary was set at £560,000. The Committee believes that this salary level is representative of Lawrence’s skills, experience and the scope of the role. Lawrence will receive a cash allowance in lieu of pension of 6% of salary for the first year of employment and 10% of salary thereafter. The incentive opportunities remain unchanged from the levels awarded to the outgoing CEO: a maximum Annual Bonus opportunity of 150% of base salary and a maximum LTIP award of 200% of base salary. Lawrence also received a buyout award to the value of £500,000 in respect of outstanding incentives that he forfeited on leaving his former employer. Further details may be found on page 223. As Graham Clemett retired, the Committee confirmed good leaver status. He was paid his contractual salary and benefits until he retired on 31 January 2025, providing transitional support to Lawrence during this time. He remained eligible for the 2024/25 Annual Bonus, subject to Committee discretion, which will be pro-rated for time served and subject to deferral in line with our Policy. All unvested Deferred Bonus Awards will continue to vest based on their original vesting dates. Unvested LTIP Awards will vest on their normal vesting dates, subject to performance and time pro-rating. Graham will also be subject to post-cessation shareholding requirements, and he is required to hold shares equivalent to 200% of salary for two years post-departure.

Remuneration Committee Performance Review

During the financial year, the Company was required to undertake an internal Board performance review to identify opportunities to further strengthen Board performance and contribution. Fidelio Partners assisted with the internal Board performance review and presented their findings to the Board in March 2025. As part of the process, Fidelio has produced specific feedback for the Remuneration Committee, highlighting areas in which the Committee operates strongly and we are responding to areas identified for improvement. Overall it was confirmed that the Committee continued to operate effectively.

Concluding remarks

There remains much uncertainty in the market but I am confident that our refreshed strategy positions us well to respond to the challenges and seize the opportunities. The changes we are making to the implementation of our Policy this year, specifically in relation to the performance conditions in our incentives, are intended to ensure our approach to remuneration better supports the delivery of our strategy and align incentive outcomes with those of our shareholders. I am looking forward to reviewing our Policy in further detail over the next 12 months to ensure it remains fit for purpose. I welcome the opportunity to consult with our shareholders on the outcomes of the review and the new Policy, which will be submitted for approval at the 2026 AGM. In the meantime, I want to thank you for your ongoing support in the year and I hope you will join the Board in supporting our Directors’ Remuneration Report at the upcoming 2025 AGM.

Lesley-Ann Nash
Chair of the Remuneration Committee
4 June 2025

Workspace’s Remuneration Report was the winner of PwC’s 2024 Building Trust Award for remuneration reporting in the FTSE 350.

Workspace Group PLC Annual Report and Accounts 2025
Strategic Report | Our Governance | Financial Statements | Additional Information

1. REMUNERATION AT A GLANCE

EXECUTIVE PAY IS STRUCTURED TO ALIGN WITH AND INCENTIVISE THE SUCCESSFUL EXECUTION OF OUR STRATEGY, WHILE ACTIVELY SUPPORTING THE PROMOTION OF OUR CORE VALUES. IN THIS SECTION

Section	Page
1. Consideration of our stakeholders	200
2. Fair Pay at Workspace	200
3. Aligning remuneration to our purpose and strategy	200

INCENTIVISING AT ALL LEVELS

Page 204

How remuneration cascades down the organisation

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Strategic Report | Our Governance | Financial Statements | Additional Information

OUR PURPOSE, STRATEGY AND STAKEHOLDERS

Our people

Employee engagement and wellbeing are reflected in our sustainability objectives and are directly linked to the bonus outcomes for our Executive Directors and members of the Executive Committee. In addition, the Committee set objectives to enhance our overall social value contribution, with a target of generating £1m during the year. We delivered a range of initiatives focused on employee skills, including career pathways and professional development and training. This year we continued to expand our apprenticeship programme, supporting 16 apprentices across the business. We continued to strengthen our commitment to diversity and inclusion, rolling out several initiatives including over 700 hours of employee time dedicated to diversity and inclusion training. We are also working towards achieving gender balance across all professional training and internal promotion opportunities. Notably 86% of employees agreed that Workspace is an inclusive employer in our most recent year-end survey.

Stakeholder experiences in 2025
Pages 200 to 201

CONSIDERATION OF THE EXPERIENCE OF OUR STAKEHOLDERS

FAIR PAY AT WORKSPACE

• Market competitive
  The pay of our people is reflective of their skills, role and function and the external market. Salary benchmarking is conducted for all roles across the business on a regular basis and we actively manage any who fall below the market competitive range.

• Free from discrimination
  When hiring for new roles, the HR team use a recruitment software which anonymises CVs to remove bias and we conduct equal pay audits to ensure any issues are identified and addressed.

• Ensure a good standard of living
  We have recently enhanced our approach to wellbeing support including 24/7 access to our employee assistance programme.

• Share in our success
  All employees have the chance to join our SAYE scheme to share in the success of the Company.

• Provide benefits for all
  A variety of benefits are offered to all staff including a cashplan offering, purchasing annual leave and family-friendly policies.

• Open and transparent
  The Company Secretary hosted a town hall-style event in February 2025, attended by 135 employees both in person and virtually. The session focused on the Company’s overall approach to remuneration, with particular emphasis on pay structures, how remuneration cascades throughout the organisation, and the employee share schemes, including the Save As You Earn (SAYE) plan. More information is on page 214.

Workspace Group PLC Annual Report and Accounts 2025
Strategic Report | Our Governance | Financial Statements | Additional Information

Our customers

Our customers are at the heart of our business and customer satisfaction remains a key performance metric within the annual bonus for our Executive Directors. We are continually improving and refining the customer experience and this year saw further upgrades to communal areas, cafés and meeting rooms, along with the addition of phone booths at 16 sites.

Workspace Group PLC Annual Report and Accounts 2025
Strategic Report | Our Governance | Financial Statements | Additional Information# REMUNERATION CONTINUED

REMUNERATION AT A GLANCE CONTINUED

We also expanded our events programme, delivering a vibrant calendar focused on wellbeing and networking. We are proud that customer satisfaction remains strong, with 89% of customers stating that they are likely or very likely to recommend Workspace.

Our communities

Creating a more inclusive and equitable London lies at the heart of our strategy. Our high-quality space brings employment opportunities to local communities and helps foster vibrant, connected neighbourhood hubs. We are committed to supporting the communities where we operate and firmly believe in giving back. This year, we provided employment support to disadvantaged young people through partnerships with 11 local schools, delivering skills and employability workshops that reached over 200 participants. Additionally, we collaborated with our customers to offer work placements to five students, helping them gain valuable real-world experience. As part of our annual bonus sustainability metrics, we prioritised a range of social impact initiatives. These included the promotion of responsible business practices, wellbeing programmes, skills development, and activities focused on employment and community engagement. Over the course of the year, our employees contributed more than 2,000 hours of volunteer time. Through these efforts, we generated £1.02 million in social value, exceeding our target of £1 million for the year. See pages 85 where further details of these initiatives can be found.

The environment

We recognise the climate emergency and know that the real estate sector contributes to nearly 40% of global carbon emissions. That is why sustainability is integrated across the business, and this is reflected in incentives for our Executive Directors. In 2023, the Committee approved the introduction of ESG metrics for the LTIP. The measures have continued to include key objectives which directly support and deliver our strategy to reduce our energy consumption and carbon emissions. Sustainability objectives are also part of our annual bonus, which ensures a focus on our commitments to diversity & inclusion and social value contribution. In addition, we held a number of engagement initiatives such as the Big Energy Race campaign (case study on page 17), sustainability supper series and eight sustainability master classes for our customers to drive sustainable behaviours and supported them with their own sustainability aspirations. Increased awareness on the topic has positively impacted energy consumption across the like-for-like portfolio, delivering over 7% reduction in energy use compared to last year. Our sustainability engagement continues to be positively received by our customers, with 84% of customers agreeing that Workspace is a socially and environmentally responsible business, up from 79% last year.

Our investors

We are committed to maintaining an open dialogue with our investors. The Committee values open, two-way engagement on all aspects of remuneration. In the latter part of 2025, the Committee will begin a comprehensive review of the Remuneration Policy, ahead of presenting a revised policy to shareholders at the 2026 AGM. As part of this process, we will engage with our shareholders and the investor bodies.

Our partners and suppliers

We collaborate with a diverse network of long-term partners and have a strong track record of refurbishments and redevelopments, where maintaining positive relationships with local authorities, communities and contractors is essential. We require all partners and suppliers to meet rigorous ethical and sustainability standards. As an accredited Living Wage employer, we are committed to ensuring that our suppliers and partners working on Workspace premises are paid at least the Real London Living Wage. We also ask our suppliers to adhere to our Supplier Code of Conduct, which sets clear expectations for ethical behaviour and sustainable practices. Throughout the year we continued our engagement with our suppliers on sustainability, specifically on employment related initiatives. We are pleased to see that four companies in our supply chain hired a total of 16 apprentices, who worked on a Workspace contract. We also engaged with 20 key suppliers on climate transition plans, encouraging sector wide transformation to more sustainable practices. We held workshops with these suppliers on Workspace’s sustainability ambitions, carbon reporting and to create a decarbonisation action place, see page 22 for more information.

SUSTAINABILITY IN EVERYTHING WE DO

ALIGNING REMUNERATION TO SUSTAINABILITY HELPS US TO MEET OUR GOALS

Over the year, we achieved a 7% reduction in energy use intensity across our like-for-like portfolio compared to the previous year. This was primarily driven by a 12% reduction in gas consumption across the portfolio, compared to the same period last year, largely due to ongoing electrification efforts and operational efficiencies. Additionally, 60% of the portfolio has now been upgraded to an EPC A/B rating.

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Additional Information

OUR PURPOSE

OUR PURPOSE IS TO GIVE BUSINESS THE FREEDOM TO GROW

EMBEDDING OPERATIONAL EXCELLENCE

1. Innovate to create future options
2. Transform and prepare for emerging opportunities
3. Enhance and expand the core business
   Pages 36-45
   Pages 46-55
   Pages 56-58

OUR STRATEGY DELIVERS OUR PURPOSE

OUR STRATEGY

OUR KEY REMUNERATION PRINCIPLES

ALIGNMENT WITH OUR STRATEGY AND PURPOSE

Workspace has worked hard to articulate and define our purpose, alongside our established values and corporate strategy. Our remuneration is aligned with the Group’s objectives and long-term strategy through a mix of short and long-term performance metrics. This aligns with the ‘alignment to culture’ principle under Provision 40 of the UK Corporate Governance Code.

A FOCUS ON RISK

We design our measures to incentivise the right behaviours, that are consistent with our strategy. Performance measures applicable to the 2025 LTIP grant have been reviewed and are based on a combination of financial, share price, ESG and strategic measures aligned with the Company’s strategic plan. Both the annual bonus and LTIP are subject to malus and clawback provisions. This aligns with the ‘risk’ and ‘proportionality’ principles under the UK Corporate Governance Code.

ACTING IN A SUSTAINABLE WAY

Incorporating ESG into our incentive arrangements reinforces the importance of sustainability across the business. Keeping sustainability at the core of our business and delivering on our net zero carbon commitments is a fundamental part of Workspace’s long-term strategy. This aligns with the ‘alignment to culture’ principle under Provision 40 of the UK Corporate Governance Code.

TRANSPARENCY AND SIMPLICITY FOR THE BENEFIT OF ALL OUR STAKEHOLDERS

The Committee ensures that the implementation of Executive remuneration is simple and transparent. The remuneration structure is easy for both participants and shareholders to understand, and is directly aligned with our strategic priorities. This helps to ensure employees understand how their remuneration is aligned with performance. This approach aligns with the ‘clarity’, ‘simplicity’ and ‘predictability’ principles under Provision 40 of the UK Corporate Governance Code.

CONSISTENCY OF APPLICATION

Both short-term and long-term incentive plans, implemented across the organisation, are designed to directly reward the achievement of the business strategy. A significant portion of these rewards is delivered in equity, ensuring that Executives are closely aligned with shareholders. Additionally, Executives are required to build substantial shareholdings in Workspace. This aligns with the ‘risk’ principle outlined in Provision 40 of the UK Corporate Governance Code.

Stakeholder experiences in 2025
Pages 200 to 201

ALIGNING OUR REMUNERATION PRINCIPLES WITH OUR PURPOSE AND STRATEGY AND THE EXPERIENCE OF ALL OUR STAKEHOLDERS

OUR PURPOSE, STRATEGY AND STAKEHOLDERS

Our remuneration approach is aligned to our purpose, values and strategy, thereby incentivising the creation of long-term value for all of our stakeholders.

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OUR STAKEHOLDERS

CONSIDERATION OF OUR STAKEHOLDERS INFORMS OUR STRATEGY

Page
Our Customers 16
Our People 18
Our Investors 21
Our Partners and suppliers 21
Our Communities 23
The Environment 25

HOW OUR VARIABLE PAY ALIGNS TO OUR STRATEGIC PILLARS

Our annual bonus and LTIP are closely aligned to our strategic priorities. They each demonstrate a clear focus on operational performance, customers and the environment.

ELEMENT OF REMUNERATION	WHY IT IS IMPORTANT TO DELIVER OUR STRATEGIC PRIORITIES AND SUPPORT OUR STAKEHOLDERS	LINK TO DIFFERENT STAKEHOLDERS	2025/26 ANNUAL BONUS	LINK TO STRATEGY	2025 LTIP MEASURES (% of award)
Financial measures Trading profit after interest	Trading profit after interest is a key measure for Workspace and determines dividend growth, and also the returns we provide to our shareholders.	– Our investors – Our partners & suppliers	50%	Strategic financial	20%
Strategic financial	Strategic financial objectives allow us to cover key drivers of our commercial success that would otherwise not be captured under trading profit after interest.	1. Enhance and expand the core business
Operational efficiency	Optimising value and service is an important part of our business and a key part of our strategic pillar to deliver operational excellence.	1. Enhance and expand the core business 2. Transform and prepare for emerging opportunities 3.	12.5%	Operational efficiency

REMUNERATION AT A GLANCE CONTINUED

203 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

WORKSPACE’S APPROACH TO REMUNERATION AND HOW WE INCENTIVISE AT ALL LEVELS WITHIN THE COMPANY

Salaries are set to reflect the market value of each role and to support both recruitment and retention. Employees are eligible for a 2:1 match on employee pension contributions of 3% or 5% of salary. Payments are made through salary sacrifice. We are committed to fostering a workplace environment that promotes healthy behaviours and supports the overall wellbeing of our employees. All staff, regardless of level, are eligible for Company-funded healthcare, an enhanced sick pay scheme, and the option to purchase up to five additional days of annual leave each year. Employees also have access to a medical advice and information services designed to support their health and wellbeing needs. Our Employee Assistance Programme is available 24/7 at no cost, offering confidential counselling and support to employees and their household members. In addition, all colleagues have received mental health awareness training, and we actively guide them toward appropriate support services whenever needed. All colleagues have access to a wide range of voluntary benefits tailored to suit different lifestyles. We have introduced two new benefits to replace our previous employee cash plans, offering staff access to annual health checks as well as mental health and nutritional consultations. In addition, colleagues can choose from a range of deals and discounts all year round, and have the option to donate to their chosen charities directly from their pay. All colleagues are eligible to take part in the annual bonus scheme, which is designed to reward the achievement of targets and objectives aligned with the Group’s financial and strategic performance each year. As part of our appraisal process, each employee agrees on individual objectives with their head of department to ensure consistency and alignment across the business. The deferral of a portion of the bonus into shares helps to reinforce long-term alignment between Executive Directors and shareholders by encouraging sustained focus on the Company’s performance and value creation over time. Not applicable. Discretionary annual share awards are granted, vesting after three years subject to continued employment and the achievement of specified performance conditions. Any shares that vest are then subject to a further two-year holding period. Not applicable. The bonus deferral arrangement applies exclusively to the Executive Directors, reflecting the specific structure of their remuneration and the level of responsibility associated with their roles. Executive Directors are not eligible to receive Restricted Share Awards (RSAs), as they participate in the Company’s Long Term Incentive Plan (LTIP). Offering the opportunity to participate in our Save As You Earn (SAYE) scheme promotes employee engagement and supports our strong performance culture. It enables all employees to share in the Company’s long-term success, while aligning their interests with those of our shareholders. This scheme allows employees to purchase shares in Workspace at a discounted price after completing a three or five-year savings period. The Company will award a number of shares based on an agreed value. In September 2021, the Company offered a free share award of £2,000 to all employees. RSAs are awarded to certain senior staff and other members of staff at the discretion of the Committee. RSA Awards ensure that senior staff are incentivised and remunerated for delivering our strategy and creating value for stakeholders through direct alignment with our share price.

REMUNERATION ELEMENT	ANNUAL BONUS	SHARE OWNERSHIP	BENEFITS	PENSION	Health and wellbeing benefits	Flexible benefits	Cash	Deferral	LTIP	Restricted Share Awards (RSAs)	Save As You Earn (SAYE)	Share Incentive Plan (SIP)
Rest of employees	1 320
Executive Directors	1

1. Lawrence Hutchings joined as CEO on 18 November 2024. Graham Clemett remained as an Executive Director until his retirement on 31 January 2025. Consequently, there were two Executive Directors as at 31 March 2025.
ALL EMPLOYEES
ALL EMPLOYEES
ALL EMPLOYEES
ALL EMPLOYEES
ALL EMPLOYEES
ALL EMPLOYEES
ALL EMPLOYEES
EXECUTIVE DIRECTORS ONLY
EXECUTIVE DIRECTORS ONLY
EXECUTIVE DIRECTORS DO NOT RECEIVE AN RSA
CERTAIN SENIOR STAFF AND OTHER STAFF MEMBERS
REST OF EMPLOYEES

204 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

SUMMARY OF DIRECTORS’ REMUNERATION POLICY

A SUMMARY OF OUR CURRENT DIRECTORS’ REMUNERATION POLICY FOR EXECUTIVE DIRECTORS AS APPROVED BY SHAREHOLDERS AT OUR 2023 AGM.

IN THIS SECTION

1. Fixed components of executive pay
   206
2. Variable components of executive pay
   207
3. Possible payouts under the policy
   210

SINGLE FIGURE SCENARIOS

210

Potential remuneration to be earned by Directors under the Policy
205 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

This section outlines the key components of the Remuneration Policy for Executive Directors, as approved by shareholders at the 2023 Annual General Meeting. It also details the operation of the Policy during the 2024/25 financial year, which was in accordance with its intended framework, and sets out how the Policy is expected to be applied in 2025/26. You can find the full policy at www.workspace.co.uk

OUR REMUNERATION POLICY

REMUNERATION POLICY TABLE

The table below describes the Policy in relation to the components of remuneration for Executive Directors.

KEY ELEMENT	OPERATION IN THE YEAR ENDED 31 MARCH 2025	OPERATION IN THE YEAR ENDING 31 MARCH 2026
BASE SALARY	Salary: Lawrence Hutchings (CEO): £560,000 Graham Clemett (Outgoing CEO): £556,400 Dave Benson (CFO): £400,000	Proposed salary: CEO: £560,000 CFO: £400,000
BENEFITS	No change. Includes car allowance, private health insurance and other benefits.	Benefits typically include car allowance, private health insurance, and death in service cover. Where appropriate, other benefits may be offered including allowances for relocation.
PENSION	CEO: Lawrence Hutchings joined as CEO on 18 November 2024. He will receive a cash allowance in lieu of pension of 6% of salary for the first year of employment, and 10% thereafter. Graham Clemett (Outgoing CEO): 10% of salary Dave Benson (CFO): 10% of salary	Directors participate in a defined contribution pension scheme or may receive a cash allowance in lieu of pension contribution.
	Salaries are normally reviewed annually. Salary levels take account of: – Role, performance and experience. – Business performance and the external economic environment. – Salary levels for similar roles at relevant comparators. – Salary increases across the Group.
	To provide market competitive pensions.	To provide market competitive pensions.
	To reflect market value of the role and an individual’s experience, performance and contribution.	To reflect market value of the role and an individual’s experience, performance and contribution.
	To provide market competitive benefits.	To provide market competitive benefits.
	In addition, Directors are eligible to participate in all employee share plans, currently the SAYE and SIP.	In addition, Directors are eligible to participate in all employee share plans, currently the SAYE and SIP.
	Lawrence Hutchings (CEO): 6% cash allowance in lieu of pension
	Graham Clemett (Outgoing CEO): 10% of salary
	Dave Benson (CFO): 10% of salary
## SUMMARY OF DIRECTORS’ REMUNERATION POLICY CONTINUED

Neither Lawrence Hutchings nor Dave Benson received a car allowance during the year.

FIXED COMPONENTS OF EXECUTIVE PAY

Increases are applied in line with the outcome of the review. There is no prescribed maximum. Increases for Executive Board Directors will typically be in line with those of the wider workforce. Up to 10% of salary. For individuals with less than a year’s service with Workspace, this will be 6% of salary. Benefits may vary by role and individual circumstance and are reviewed periodically. There is no overall maximum.

206 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

REMUNERATION POLICY TABLE CONTINUED

Performance is measured relative to financial, operational and strategic objectives in the year aligned with the Company’s strategic plan. Performance measures and weightings are reviewed each year to ensure they remain appropriate and reinforce the business strategy. At least 60% of the total bonus will be based on financial measures. Bonus awards are at the Committee’s discretion and the Committee will consider the Company’s performance in the round. The Committee may override the formulaic bonus outcome within the limits of the plan where it believes the outcome is not reflective of performance, to ensure fairness to both shareholders and participants. The annual bonus opportunity for Graham Clemett proceeded on the usual timetable and was pro-rated to reflect the proportion of FY25 that was spent in employment. Lawrence Hutchings eligibility to participate in the Company’s Annual Bonus Plan was at the discretion of the Committee, and was subject to the attainment of the same performance conditions applicable to other Executive Directors. The bonus opportunity for Lawrence has been time pro-rated to reflect the proportion of FY25 in which he is employed.

KEY ELEMENT: ANNUAL BONUS

To reinforce and reward delivery of annual strategic business priorities, based on performance measures relating to both Group and individual performance.

Bonus deferral provides alignment with shareholder interests. A portion of the annual bonus is deferred into shares for a period of three years. The deferral is 33% of bonus earned. Dividend equivalents may be accrued on deferred shares. The Committee may apply malus and clawback in circumstances of gross misconduct, material misstatement of the Group’s results, an error in calculation, serious reputational damage, and corporate failure up tothe end of the deferral period.

Maximum Opportunity:
* Lawrence Hutchings (CEO): Up to 150% of salary (Pro rated for time served)
* Graham Clemett (Outgoing CEO): Up to 150% of salary (Pro rated for time served)
* Dave Benson (CFO): Up to 120% of salary

Performance conditions and weightings: (As % of award)
* Trading Profit (50%)
* Strategic Financial (20%)
* Sustainability (10%)
* Operational efficiency (10%)
* Customer satisfaction (10%)

Executive Directors awarded bonuses (reflecting the Committee’s discretion) of:
* Lawrence Hutchings (CEO): 42.2% of salary
* Graham Clemett (Outgoing CEO): 42.2% of salary
* Dave Benson (CFO): 33.8% of salary

Deferral of 33% of bonus earned

See page 218 for further details on bonus outcomes

Maximum Opportunity:
* Lawrence Hutchings (CEO): Up to 150% of salary
* Dave Benson (CFO): Up to 120% of salary

Performance conditions and weightings: (As a % of award)
* Trading Profit (50%)
* Strategic Financial (20%)
* Operational efficiency (12.5%)
* Customer satisfaction (10%)
* Sustainability (7.5%)

See page 224 for more details.

The Committee is of the opinion that the targets used for the annual bonus are commercially sensitive and willbe disclosed in next year’s Annual Report. Actual targets, performance achieved and awards made are published at the end of the financial year so shareholders can fully assess the basis for any payouts.

OPERATION FOR 2024/25	OPERATION IN THE YEAR ENDED 31 MARCH 2025	PERFORMANCE METRICS 2024–2025	2025–2026	2026–2027	2027–2028	2028–2029
OPERATION	OPERATION IN YEAR ENDING 31 MARCH 2026

207 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

REMUNERATION CONTINUED

SUMMARY OF DIRECTORS’ REMUNERATION POLICY CONTINUED

VARIABLE COMPONENTS OF EXECUTIVE PAY CONTINUED

KEY ELEMENT	2024–2025	2025–2026	2026–2027	2027–2028	2028–2029
LONG TERM INCENTIVE PLAN (LTIP)

To reward and align to the delivery of sustained long-term performance and to align the interests of participants with those of shareholders.

The Committee may grant annual awards of Performance Shares which vest after three years, subject to performance conditions. Vested shares are subject to a further two-year holding period. The Committee has discretion to apply malus and clawback (in circumstances listed in the annual bonus column above), up to the end of the holding period. Dividend equivalents may be accrued on shares in respect of the performance and holding period.

Maximum Opportunity:
* Lawrence Hutchings first ordinary course grant of an award under the Company’s LTIP will take place in FY26. During the year, he was granted a buyout award, split into two tranches, each to the value of £250,000, granted under the rules of the Company’s LTIP. Further details are set out on page 223.
* Graham Clemett (Outgoing CEO): 200% of salary
* Dave Benson (CFO): 200% of salary

Performance conditions and weightings for the 2024 LTIP:
* 25% Total Shareholder Return (TSR) relative to FTSE 350 Real Estate companies (excluding agencies)
* 25% Total Accounting Return (TAR)
* 25% Earnings Per Share (EPS) Growth
* 25% Environmental Social and Governance (ESG).

The 2021 LTIP vested in the year at 50% of the award.

Grant sizes for:
* Lawrence Hutchings (CEO): 200% of salary
* Dave Benson (CFO): 200% of salary

No change to maximum LTIP opportunities or the performance conditions. However, we are proposing to change the weighting of the TAR and ESG metrics. Therefore, the measures that will apply to the 2025 LTIP award are as follows: TSR relative to FTSE 350 Real Estate companies (excluding agencies) (25%), TAR (35%), EPS (25%) and ESG metrics (15%) to strengthen the alignment of the LTIP measures with our refreshed strategy.

OPERATION	IMPLEMENTATION FOR 2025/26	OPERATION FOR 2024/25	PERFORMANCE METRICS	OPPORTUNITY
			Normal maximum award of up to 200% of salary per annum. An award of 300% of salary per annum may be made in exceptional circumstances. Awards will be based on a combination of financial, share price and strategic measures aligned with the Company’s strategic plan. A performance underpin will apply which allows the Committee to reduce vesting if performance is inconsistent with the overall performance of the business. The Committee may, in the context of the underlying business strategy, use different measures and/or vary the weightings of the measures. The Committee would consult with major shareholders prior to making any significant changes.

208 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

REMUNERATION CONTINUED

SUMMARY OF DIRECTORS’ REMUNERATION POLICY CONTINUED

VARIABLE COMPONENTS OF EXECUTIVE PAY CONTINUED

2024–2025	2025–2026	2026–2027	2027–2028	2028–2029

REMUNERATION POLICY TABLE CONTINUED

CURRENT SHAREHOLDINGS

1 SHAREHOLDING REQUIREMENT
Shareholding guideline for Executive Directors of 200% of salary. Post-cessation shareholding requirement of 200% of salary for two years post-departure. In the event that a leaver has not met the relevant shareholding requirement at the point of cessation of employment, they would be required to retain their full pre-cessation shareholding for the two-year period.

• Lawrence Hutchings (CEO): 22% of salary. Lawrence, who joined as CEO in November 2024, will be expected to build up and maintain a shareholding in the Company with shares equivalent to 200% of basic salary.
• Dave Benson (CFO): 162% of salary.

• Graham Clemett’s shareholding at the date of leaving was 244% of salary. Graham Clemett’s post-cessation shareholding requirement will comply with the Policy.

• Based on a share price of £5.42 being the average share price over the year to 31 March 2025, and based on a salary of £560,000 for Lawrence Hutchings and £400,000 for Dave Benson. Graham Clemett’s shareholding has been based on a price of £5.06 being the 3-month average share price to 31 January 2025 and a salary of £556,400.

209 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

Based on our proposed Remuneration Policy, we set out to the right scenarios for the potential remuneration to be earned by our Executive Directors under the Policy for various performance assumptions. In line with the Companies (Miscellaneous Reporting) Regulations 2018, we have included the impact of a potential scenario of a 50% share price appreciation on the LTIP. A high proportion of the Executive Board Directors’ packages are made up of shares, supporting the alignment of executive pay with the interests of our shareholders. The increased value in remuneration from share price appreciation is beneficial for both Executive Directors and shareholders.

POSSIBLE PAYOUTS UNDER POLICY

SINGLE FIGURE SCENARIOS

Lawrence Hutchings, CEO

• Salary as at 1 April 2025.
• Current contribution rate of 6% cash allowance in lieu of pension, increasing to 10% with effect from 18 November 2025 in line with our Policy.
• As provided in the single figure table on page 197.

Dave Benson, CFO

• Salary as at 1 April 2025.
• Current contribution rate of 10% of salary.
• As provided in the single figure table on page 197.# ANNUAL REPORT ON REMUNERATION

This section sets out the Annual Report on Remuneration. An advisory shareholder resolution to approve this section, together with the Chair’s statement on pages 195 to 198 will be put forward at the 2025 AGM of the Company on 16 July 2025.

WHAT WE PAID OUR DIRECTORS IN 2024/25

TOTAL TARGET COMPENSATION COMPARED TO OUR PEERS

Chart A below shows the relative position of target total compensation for our Executive Directors compared to our peers. In setting the target total compensation for the Executive Directors, one of the factors the Committee considers is the competitive market for our Executive Directors, which we believe is the FTSE 250 constituents and FTSE 350 Real Estate companies, and the size of the Company compared to these peers.

CHART A

	Bottom quartile	Third quartile	Second quartile	Top quartile
FTSE 350 Real Estate
FTSE 250
FTSE 350 Real Estate
FTSE 250

LAWRENCE HUTCHINGS

CHIEF EXECUTIVE OFFICER
Positioning of total remuneration of the Company relative to market benchmarks.

DAVE BENSON

CHIEF FINANCIAL OFFICER
Positioning of total remuneration of the Company relative to market benchmarks.

Performance-related pay is a key element of our reward framework, and setting stretching targets remains a core priority for the Committee. Each year, we conduct a thorough review to ensure that our targets are appropriately challenging, taking into account both external market conditions and our internal performance ambitions. The Committee reviews and sets targets at two dedicated Remuneration Committee meetings annually.

Step 1
In January, the Committee reviews the wider market context and is receives an early indication of how performance is tracking in the current year. The Committee’s independent remuneration advisers are invited to provide the Committee with a broader assessment of the pay and governance landscapes across the markets in which Workspace operates.

Step 2
At its April meeting, the Committee has a first look at possible targets for the forthcoming year and provides feedback, taking into account a number of factors, including:
– The strategic plan
– Brokers’ earnings estimates
– Wider economic expectations
– Our key competitors’ earnings estimates from several peer groups.

Step 3
By the time the Committee convenes in May, the Board will have approved the budgets for the upcoming year, and the performance outcomes for the current year have been reviewed by our auditor. The Committee takes both of these factors into account when determining final outcomes for the prior year and conducting its final review and approval of targets for the year ahead.

HOW WE SET THE BONUS TARGETS

Minimum – no bonus payable; On-target – 50% of maximum potential bonus; Maximum – maximum potential bonus.
Minimum – no LTIP vesting; On-target – 20% of maximum (threshold vesting); Maximum – maximum LTIP vesting.

Impact of 50% share price appreciation over three years (on the LTIP).

	BASE SALARY	PENSION BENEFITS	ANNUAL BONUS	LTIP	SHARE PRICE GROWTH
					Fixed pay
					£000
					0

OVERALL LINK TO REMUNERATION AND EQUITY OF THE EXECUTIVE DIRECTORS

Table A below sets out the single figure for 2024/25, the number of shares held by the Director at the beginning and end of the financial year, and the impact on the value of these shares taking the opening price and closing price for the year.

TABLE A

	Lawrence Hutchings	Graham Clemett¹	Dave Benson²
2024/25 single figure (£000)	560.8	912.5	724.3
Shares held at start of year	0	189,322	64,988
Shares held at end of year	0	224,077	88,903
Value of shares at start of year (£000)²	0	971.2	333.3
Value of shares at end of year (£000)³	0	929.9	368.9
Difference (£000)	0	41.3	35.6

1. Graham Clemett retired from the Company on 31 January 2025, with a shareholding of 224,077, and he is subject to a post cessation shareholding requirement.
2. Based on a closing share price on 31 March 2024 of £5.13.
3. Based on a closing share price on 31 March 2025 of £4.15.

OUR SHAREHOLDING REQUIREMENTS (AUDITED)

Our Executive Directors are encouraged to hold a high number of shares in order to align their interests to those of the shareholders, and to encourage a long-term view of the sustainable performance of the Company. As such, our Directors are impacted by the share price over the year in the same way as our shareholders.

Chart B below shows that, during the year, Graham Clemett, the outgoing CEO, met his minimum shareholding requirements. In accordance with the Policy, he will be subject to a two-year post-cessation shareholding requirement of 200% of salary. The incoming CEO, Lawrence Hutchings, who joined as CEO on 18 November 2024, is expected to build up and maintain a shareholding in the Company equivalent to 200% of basic salary. Dave Benson, the CFO joined in April 2020 and continues to build his shareholding in the Company.

1. All shares that are either unvested and not subject to performance or subject to performance have been included on a net of tax basis (i.e. at a 50% discount).
2. This is based on a share price of £5.42 being the average share price over the year to 31 March 2025 and salaries of, £560,000 and £400,000 for Lawrence Hutchings and Dave Benson respectively. Graham Clemett’s shareholding has been based on a price of £5.06 being the 3-month average share price to 31 January 2025 and a salary of £556,400.

CHART B

	Owned outright or vested.	Unvested and not subject to performance.	Subject to performance.
CEO
OUTGOING CEO
CFO
% of salary	0	100%	200%
MINIMUM SHAREHOLDING REQUIREMENT

OUR APPROACH TO FAIRNESS AND WIDER WORKFORCE CONSIDERATIONS

When determining remuneration for Executive Board Directors, the Committee considers the pay structures, policies, and practices across the wider Group. We receive regular updates from the Executive Board Directors and actively monitor data on bonus payout and share awards. In this section, we outline the context of Executive Board Director remuneration by detailing our employee policies, our commitment to fairness, and the ratio of CEO pay to that of the broader workforce.

Communication and engagement with employees

The Board remains committed to maintaining open and transparent dialogue with employees on a broad range of matters. Our Chair, Duncan Owen, serves as the designated Non-Executive Director responsible for overseeing employee engagement. During the year, Duncan held three dedicated employee engagement meetings, which were also attended by Manju Malhotra, David Stevenson and Rosie Shapland. These sessions provided valuable opportunities for open dialogue and direct engagement with members of the Board. Employees are kept informed throughout the financial year about key activities, business performance, and the impact of strategic initiatives introduced in the fourth quarter of 2024/25. Further details are available in the CEO’s Review on page 12. A variety of communication channels supported ongoing engagement, including the circulation of corporate announcements, regular updates, and staff briefings. Lawrence Hutchings, the new CEO, now sends a weekly email to all staff, every Friday to provide updates on activity across the business. In addition, the CEO and other members of the Executive team hosted town hall (‘Wrap Live’) events, offering employees insight into business performance and strategic priorities. In February 2025, the Company Secretary hosted a Wrap Live event, focusing on elements of the remuneration structure at Workspace, including how Executive Director remuneration aligns with the broader Company pay policies. The session also provided staff with a clear explanation of the Save as You Earn Scheme (‘SAYE’), outlining how they can make monthly savings and potentially benefit from share ownership in the Company. Further information can be found in the case study on the right.

Share schemes

Share schemes are a long-established and successful part of our total reward package, encouraging and supporting employee share ownership. In particular, all employees are invited to participate in the Company’s SAYE and the Share Incentive Plan.# Equal Opportunities

Workspace is committed to an active Equal Opportunities Policy from recruitment and selection, through training and development and in performance reviews and promotion. All decisions relating to employment practices are objective, free from bias and based solely upon work criteria and individual merit. We consider the needs of all employees, customers and the community. We are committed to recognising and leveraging the talents and abilities of all individuals, actively valuing diversity in our workforce. The Company is dedicated to ensuring that recruitment and promotion practices are fair, inclusive, and objective. We promote continuous learning and development, offering equal opportunities for all employees. This year, we introduced career pathways to support employee progression, and helped 8 employees to further develop their skills. Further information can be found on pages 20.

Retirement benefits

The Company offers pension benefits for the majority of its employees. In line with previous years, pension contributions range from 6% to 10% of an employee’s salary. The scheme is available to all employees in accordance with the Government auto-enrolment regulations.

Family Friendly policies

During the year, the Company conducted a review of its family friendly leave entitlements, including maternity and paternity policies. As a result, these policies were updated, effective from 1 July 2024, to increase the level of maternity and paternity pay for employees. The new entitlements have been introduced to allow individuals to take time off work to spend with their families. These revised benefits were benchmarked against similarly sized organisations and are designed to reflect best practices, enhance employee wellbeing and promote a healthy work-life balance.

Wider benefits

The Company also reviewed the wider benefits offered to employees for example, sick pay and annual leave entitlements. A buying annual leave policy was introduced from 1 July 2024 along with an updated Company sick pay policy.

This year, the Company Secretary hosted a Wrap Live event, with input from the Chair of the Committee, which focused on the Company’s approach to remuneration and how it is applied throughout the business. The event was held at Vox Studios and saw strong attendance, with 135 employees attending both in person and virtually. Employees were actively encouraged to ask questions, and topics raised included specific aspects of the SAYE scheme and the Company’s approach to benchmarking pay. The event received positive feedback, and a summary of the discussion was made available on the Company’s intranet. Given the strong engagement and positive response, the Company Secretary intends to hold similar events in the future with the Chair of the Committee, to continue to foster transparency and employee engagement.

HOW WE ENGAGED WITH OUR EMPLOYEES

REMUNERATION CONTINUED

ANNUAL REPORT ON REMUNERATION CONTINUED

214 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

THE YEAR ON YEAR CHANGE IN OUR DIRECTORS’ REMUNERATION

TABLE B

Director	Salary/ fees	Taxable benefits	Annual variable	Salary/ fees	Taxable benefits	Annual variable	Salary/ fees	Taxable benefits	Annual variable	Salary/ fees	Taxable benefits	Annual variable	Salary/fees	Taxable benefits	Annual variable
2025	2024	2023	2022	2021
Executive Directors
Lawrence Hutchings 1	100%	100%	100%	n/a	n/a	–	n/a	n/a	–	n/a	n/a	–	n/a	n/a	n/a
Graham Clemett 2	-13%	-16%	-64%	3%	-3%	20%	3%	4%	-11%	2%	1%	157%	9%	-15%	-54%
Dave Benson	9%	n/a	-54%	3%	n/a	-22%	3%	n/a	10%	2%	n/a	157%	n/a	n/a	n/a
Non-Executive Directors
Duncan Owen 3	25%	n/a	–	172%	n/a	–	73%	n/a	–	n/a	n/a	–	n/a	n/a	–
Rosie Shapland	3%	n/a	–	0%	n/a	–	31%	n/a	–	194%	n/a	–	n/a	n/a	–
Lesley-Ann Nash	3%	n/a	–	0%	n/a	–	15%	n/a	–	345%	n/a	–	n/a	n/a	–
Nick Mackenzie 4	4%	n/a	–	0%	n/a	–	491%	n/a	–	n/a	n/a	–	n/a	n/a	–
Manju Malhotra 4	24%	n/a	–	0%	n/a	–	491%	n/a	–	n/a	n/a	–	n/a	n/a	–
David Stevenson 5	100%	n/a	–	n/a	n/a	–	n/a	n/a	–	n/a	n/a	–	n/a	n/a	–
All other employees 6	1%	10%	-28%	-7%	-20%	-6%	19%	-4%	-11%	5%	-24%	58%	5%	-5%	-5%

1. Lawrence Hutchings joined as CEO in November 2024 and therefore the above information reflects his time in role.
2. Graham Clemett retired as CEO in November 2024 and stepped down from the Board in January 2025.
3. Duncan Owen joined the Board in July 2021 and assumed the role of Chair in July 2023.
4. Nick Mackenzie and Manju Malhotra joined the Board in January 2022, and therefore were paid a partial fee in the prior year.
5. David Stevenon joined the Board in June 2024.
6. The 2024 and 2023 figures have been impacted by the acquisition of McKay.

The table below outlines the year on year changes between Director pay and average employee pay. In line with our Policy, salary increases for Executive Directors are typically aligned with those awarded to the wider workforce. Table B below shows the percentage change in Director remuneration, comprising salary, taxable benefits and annual bonus, and comparable data for the average of employees within the Company. The comparator group is based on all employees (excluding the CEO, CFO and Non-Executive Directors), normalised for joiners and leavers during the year. The average number of people employed by the Company during the year was 335 (2024: 311). All employees are eligible to be considered for an annual bonus.

REMUNERATION CONTINUED

ANNUAL REPORT ON REMUNERATION CONTINUED

215 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

PAY COMPARISONS

CHART C

CEO single figure

CEO single figure of total remuneration	31 Mar 2015	31 Mar 2016	31 Mar 2017	31 Mar 2018	31 Mar 2019	31 Mar 2020	31 Mar 2021	31 Mar 2022	31 Mar 2023	31 Mar 2024	31 Mar 2025
£000
Lawrence Hutchings 1	–	–	–	–	–	–	–	–	–	–	560.8
Graham Clemett 2	–	–	–	–	–	1,349.9	764.4	1,080.0	1,440.3	1,495.7	912.5
Jamie Hopkins 3	3,533.1	2,262.7	2,205.6	1,674.2	1,728.2	490.9	–	–	–	–	–
Annual bonus payout
Lawrence Hutchings (% of maximum opportunity)	–	–	–	–	–	–	–	–	–	–	28%
Graham Clemett (% of maximum opportunity)	–	–	–	–	–	–	33%	83%	72%	67.1%	28%
Jamie Hopkins (% of maximum opportunity)	97.2%	95.3%	100%	100%	95.8%	–	–	–	–	–	–
LTIP vesting
Lawrence Hutchings (% of maximum opportunity)	–	–	–	–	–	–	–	–	–	–	-
Graham Clemett (% of maximum opportunity)	–	–	–	–	–	87.24%	0%	0%	50%	50%	25%
Jamie Hopkins (% of maximum opportunity)	100%	100%	88.7%	62.7%	50.7%	87.24%	–	–	–	–	–
Ratio of single total remuneration figure shown to employees as a whole
to employee lower quartile	–	–	–	–	53x	47x	23x	32x	43x	40x	39x
to employee median	128x	79x	72x	48x	33x	43x	15x	23x	29x	29x	28x
to employee upper quartile	–	–	–	–	23x	23x	11x	15x	20x	18x	17x

1. Mr Hutchings was appointed as CEO on 18 November 2024.
2. Mr Clemett assumed the role of Interim CEO on 1 June 2019 and was appointed CEO on 24 September 2019. He stepped down as CEO on 18 November 2024, and as a Director of the Company on 31 January 2025.
3. Mr Hopkins was appointed as an Executive Director on 12 March 2012 and stepped down from the Board on 31 May 2019.
4. See next page for details on calculation.

CHART C

REMUNERATION CONTINUED

ANNUAL REPORT ON REMUNERATION CONTINUED

216 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

PAY COMPARISONS CONTINUED

SINGLE FIGURE OF EXECUTIVE DIRECTORS (AUDITED)

Chief Executive’s Pay Ratio

The table below compares the single total figure of remuneration for the CEO with that of the Group employees who are paid at the 25th percentile (lower quartile), 50th percentile (median) and 75th percentile (upper quartile) of its employee population. Despite voluntarily disclosing the ratio of CEO pay to workforce pay in previous years (see page 216), this is the third year in which Workspace meets the requirement regarding employee numbers as per the Companies (Miscellaneous Reporting) Regulations 2018.

Year	Methodology	25th percentile ratio	50th percentile ratio	75th percentile ratio
2025	Option A	39:1	28:1	17:1
2024	Option A	40:1	29:1	18:1
2023	Option A	43:1	29:1	20:1

Option A, as set out under the reporting regulations, was used to calculate remuneration for 2025, as well as 2024 and 2023. In line with the regulatory requirement, we have used the sum of Lawrence and Graham's Single Figure as the CEO figure for the purposes of the calculation. The UK employees included are those employed on 31 March 2025 and remuneration figures are determined with reference to the financial year ended on 31 March 2025. We have chosen Option A as we believe that it is the most robust methodology for calculating these figures. The value of each employee’s total pay and benefits was calculated using the single figure methodology consistent with the CEO. No elements of pay have been omitted. Where required, remuneration was approximately adjusted to be full-time and full-year equivalent basis based on the employee’s average full-time equivalent hours for the year and the proportion of the year they were employed. No other adjustments were made.

The table below sets out the salary and total pay and benefits of the employee at the lower quartile, median and upper quartile for the 2024/25 financial year.

	25th percentile	50th percentile	75th percentile
Salary	£36,660	£48,000	£67,252
Total pay and benefits	£39,626	£56,038	£90,452

The median pay ratio is broadly consistent with the previous year.There is significant volatility in this ratio, caused by the following:

• Our CEO pay was made up of a higher proportion of incentive pay than that of our employees, in line with shareholder expectations. This introduces a higher degree of variability in his pay each year versus that of our employees.
• Long-term incentives, which made up a significant proportion of our CEO’s pay, are provided in shares, and their value on vesting, included in his single figure, reflects the movement in share price over the three years prior to vesting. This outcome can add significant volatility to the CEO’s pay and this is reflected in the ratio.

For these reasons, we believe the median pay ratio this year is consistent with pay, reward and progression policies for UK colleagues.

The illustrations below set out a single figure for the total remuneration received by each Executive Board Director for the year ended 31 March 2025 and the prior year.

	Lawrence Hutchings CEO		Graham Clemett Outgoing CEO		Dave Benson CFO
	2024/25 £000	2023/24 £000	2024/25 £000	2023/24 £000	2024/25 £000	2023/24 £000
Fixed pay
Base salary	208.9	–	463.7	535.0	400.0	368.0
Pension	1 12.5	–	46.4	53.5	40.0	36.8
Benefits	2 1.2	–	18.2	21.8	0	0
Total fixed	222.6	–	528.3	610.3	440.0	404.8
Variable pay
Annual bonus	3 88.2	–	195.8	538.5	135.1	296.3
LTIP	4,5 NIL	–	188.4	385.9	149.3	265.6
Other – SAYE, SIP BUYOUT	6 250.0	–	NIL	4.5	NIL	4.5
Total variable	338.2	–	384.2	928.9	284.3	566.4
Total	560.8	912.5	1,539.2	724.3	971.2
Of which share price growth	7 0	–	0	0	0	0

1. Pension: During 2024/25 each of Messrs Hutchings, Clemett and Benson received a cash allowance in lieu of pension contribution.
2. Benefits: Taxable value of benefits received in the year by Executive Directors includes a car allowance (not for Mr Hutchings or Mr Benson), private health insurance and death in service cover.
3. Annual bonus: This is the total bonus earned in respect of performance during the relevant year, and for Messrs Hutchings and Clemett pro-rated for time served during the performance period. For 2023/24 and 2024/25, the Committee set a minimum deferral requirement of 33% of the bonus earned. For 2024/25, this deferral was equivalent to £29,108 for Mr Hutchings, £64,607 for Mr Clemett and £44,573 for Mr Benson. Deferred shares are subject to continued service only.
4. The 2024/25 figure includes the estimated value of 25% of the 2022 LTIP shares that vested based on performance to 31 March 2025 and the application of the Remuneration Committee’s discretion. The share price used is the three-month average to 31 March 2025 of £4.47. This will be updated in next year’s report to reflect the share price on the date of vesting. As allowable under the relevant plan rules and approved Policy, the Committee determine that dividend equivalents are payable under the 2022 LTIP award – this figure includes accrued dividends on vested shares.
5. With regards to the 2021 LTIP which vested on 24 June 2024, the 2023/2024 figures have been updated to reflect the share price on the date of vesting on 24 June 2024 of £5.854221.
6. Mr Hutchings was granted a buyout award on joining the Company to compensate him for awards forfeited at his previous employer. The value set out in the table above relates to the portion of his buyout award that is subject to a requirement to remain in employment throughout the vesting period. Further details are set out on page 223.
7. The Committee did not exercise any discretion in relation to share price movement over the performance period.

REMUNERATION CONTINUED
ANNUAL REPORT ON REMUNERATION CONTINUED
217

Workspace Group PLC Annual Report and Accounts 2025
Strategic Report
Our Governance
Financial Statements
Additional Information

For 2024/25 the maximum bonus opportunity for the Executive Directors was 150% of salary for the CEO and 120% of salary for the CFO. Payouts are subject to the assessment of performance against stretching financial, strategic and business performance targets, and are calculated on a straight-line basis from 0% at threshold to 100% at maximum performance. Lawrence Hutchings, Graham Clemett and Dave Benson are required to defer 33% of their bonus into Company shares for three years. The targets are set based on our budgeting process, which takes account of market expectations, planned acquisitions and disposals of assets, and aspirations around Company growth. The performance measures, targets and outcomes for each measure are shown to the right.

ANNUAL BONUS PAYOUT IN RESPECT OF 2024/25 (AUDITED)

ANNUAL BONUS PAYOUT IN RESPECT OF 2024/25

ANNUAL BONUS OUTCOMES UNDER THE 2024/25 ANNUAL BONUS

Measure:	Threshold (0% payable)	Maximum (100% payable)	Formulaic outcome and opportunity as a % of award
Financial objectives
Trading Profit	£68.0m	£71.5m	0%
Strategic Financial	0%	100%	18.75%
Sustainability, operational and customer objectives
Sustainability	0%	100%	10%
Operational Efficiency	0%	100%	4.55%
Customer Satisfaction	80%	86%	10%
Total			43.3%
Discretionary reduction applied to outturn of			35%
			28.1%

	Outcome (£000)		Outcome (£000)		Outcome (£000)
Lawrence Hutchings, CEO	Outturn £88.2	£29.1 of which is deferred bonus
Graham Clemett, Outgoing CEO			Outturn £195.8	£64.6 of which is deferred bonus
Dave Benson, CFO					Outturn £135.1	£44.6 of which is deferred bonus

1. Lawrence joined as CEO on 18 November 2024. His bonus has been pro-rated to reflect his time in office.
2. Graham retired as an Executive Director on 31 January 2025 and so his bonus has been pro-rated to reflect the period he was on the Board during the performance year.

REMUNERATION CONTINUED
ANNUAL REPORT ON REMUNERATION CONTINUED
218

Workspace Group PLC Annual Report and Accounts 2025
Strategic Report
Our Governance
Financial Statements
Additional Information

A summary of the strategic financial, operational efficiency and sustainability objectives is shown below. Full details for each performance measure are set out on pages 220 and 221.

STRATEGIC FINANCIAL, OPERATIONAL EFFICIENCY, SUSTAINABILITY OBJECTIVES (AUDITED)

Reduction in the large voids	Capital recycling	Raise brand awareness and familiarity	MyWorkspace rollout
Yavica Optimisation	Improved customer facilities	Employee Engagement	Reduce operational energy intensity
Increase in percentage of EPC A/B rated space	Improve customer advocacy of our sustainability credentials	Increase our social value contribution	Champion diversity and inclusion
Strategic financial objectives	Operational efficiency objectives	Sustainability objectives
18.75%	4.55%	10%
20%	10%	10%
Page 220	Page 220	Page 221

STRATEGIC FINANCIAL, OPERATIONAL EFFICIENCY AND SUSTAINABILITY OBJECTIVES 2024/25

| Objectives | Activity # REMUNERATION CONTINUED

ANNUAL REPORT ON REMUNERATION CONTINUED

LTIP AWARD VESTING IN RESPECT OF 2024/25 (AUDITED)

The 2022 LTIP awards measured performance over the period 1 April 2022 to 31 March 2025. Details of the performance targets and achievement against them are set out below. On this basis, the overall formulaic outcome of the 2022 LTIP is 50%. As per our Policy, a performance underpin applies to the LTIP, allowing the Committee to reduce vesting if performance is inconsistent with the overall performance of the business. The Committee reviewed this outcome, considering a range of factors, including the decline in the Company’s share price performance over the performance period. The Committee has decided to exercise discretion to reduce the vesting outcome, resulting in an outcome of 25% of maximum.

TABLE D	Threshold (20% payable)	Maximum (100% payable)	Actual Formulaic outcome (% of award)
Total shareholder return (TSR) relative to FTSE 350 Real Estate companies (excluding agencies)	MEDIAN	UPPER QUARTILE	24th Percentile 0%/50%
Total property return (TPR) versus IPD	MEDIAN	UPPER QUARTILE	50%/50%
LTI P (% maximum) vesting	50%/100%
Discretionary reduction of 50% applied to LTIP (% maximum) vesting	25%/100%

Graham Clemett (Retired as an Executive Director on 31 January 2025)
* Number of shares vesting (audited): 35,911

Dave Benson (CFO)
* Number of shares vesting (audited): 28,447

1. Vested awards have been pro-rated to 31 January 2025, the date on which Graham Clemett retired as an Executive Director.

Under the current Policy, conditional share awards under the LTIP are granted to a maximum of 200% of salary. Awards under the 2024 LTIP are subject to the performance conditions detailed in Table E below measured over the period 1 April 2024 to 31 March 2027.

TABLE E

	Weighting (% of award)	Threshold (20% vesting)	Maximum (100% vesting)
Total Shareholder Return relative to FTSE 350 Real Estate companies (excluding agencies)	25%	Median 5% p.a.	Upper Quartile 10% p.a.
Earnings Per Share (EPS) Growth	25%	4% p.a.	8% p.a.
Total Accounting Return (TAR)	25%	See below	See below
Environmental, Social and Governance (ESG)	25%

A holding period of two years will apply to any net vested shares under the LTIP. To allow any payouts to be fully reflective of underlying performance, the LTIP underpin allows the Committee to reduce vesting should the Committee believe that the performance is inconsistent with the overall performance of the business.

ESG LTIP THREE-YEAR TARGETS

Environmental, Social and Governance (ESG)	Weighting	Threshold (20% vesting)	Maximum (100% vesting)
Increase in percentage of EPC A or B rated space	50%	18%	24%
Reduction in total Scope 1 and 2 emissions	50%	24%	30%

The following awards were granted during the year under the 2024 LTIP:

Performance share award

Director	Date of grant	Market price at date of award 1	Number of shares	Face value £	% of salary
Graham Clemett 2	21 June 2024	£5.787	192,293	1,112,800	200%
Dave Benson	21 June 2024	£5.787	138,240	799,995	200%

1. The share price for calculating the levels of awards was £5.787, the average mid-market closing price over the three dealing days 18, 19 and 20 June 2024, in accordance with the LTIP rules.
2. At vesting, Mr Clemett’s awards will be pro-rated to 31 January 2025, the date on which he retired as an Executive Director.

LTIP AWARDS MADE DURING THE 2024/25 FINANCIAL YEAR (AUDITED) CONTINUED

On leaving his current employer, Lawrence Hutchings forfeited various incentive awards. As a consequence, the Company, in accordance with the Director’s Remuneration Policy, made a ‘buy-out’ award (under the rules of the LTIP), to compensate Lawrence for the loss of his awards, granted on 28 November 2024. The buy-out award is structured as follows:

A) An award of 44,907 shares, the value of £250,000 as at the grant date of 28 November 2024. The award is subject to a vesting period of three years from the date of commencement of employment, 18 November 2024, and is subject to a requirement to remain in employment throughout the vesting period until 18 November 2027.

B) An award of 44,907 shares, the value of £250,000 as at the grant date of 28 November 2024. The award is subject to a vesting period of three years from the date of commencement of employment, 18 November 2024. Vesting would be subject to a requirement to remain in employment throughout the vesting period until 18 November 2027, and to the same performance conditions that apply to awards made under the Company’s ordinary course LTIP grant to Executive Directors for the financial year ending 2025.

LTIP AWARDS MADE DURING THE 2024/25 FINANCIAL YEAR (AUDITED) CONTINUED

Director	Date of grant	Market price at date of award 1	Number of shares	Face Value £
Lawrence Hutchings	28 November 2024	£5.567	44,907	250,000
Lawrence Hutchings	28 November 2024	£5.567	44,907	250,000

1. The market price at grant was £5.567 and calculated by reference to the average mid market closing price over the three dealing days of 25, 26 and 27 November 2024 in accordance with the LTIP rules.

Deferred shares were granted (as conditional share awards) under the 2023/24 bonus of 30,692 shares to Mr Clemett and 16,888 shares to Mr Benson (33% of bonus awarded) on 26 June 2024. The share price on the date of grant was £5.79 which represented the average mid-market closing price.

Director	Basis of award	Face value of award 1	Number of shares granted	End of deferral period
Graham Clemett	33% of bonus	£177.7	30,692	26/06/2027
Dave Benson	33% of bonus	£97.8	16,888	26/06/2027

1. The share price on the date of grant was £5.79 which represented the average mid-market closing price.

HOW WE WILL APPLY THE POLICY IN 2025/26

BASE SALARY

The CEO and CFO will not receive a base salary increase. Salaries will be as follows:

• CEO: £560,000
• CFO: £400,000

PENSION

In line with the proposed Policy set out in this report, the Executive Directors will receive a contribution to a defined contribution plan or a cash allowance in lieu of contribution of 10% of salary respectively. Lawrence Hutchings will receive a cash allowance in lieu of pension of 6% of salary for the first year of employment and will receive 10% of salary thereafter.

ANNUAL BONUS

There is no change to the annual bonus maximum potential in 2025/26, and this will continue to be 150% of salary for the CEO and 120% of salary for the CFO. 33% of the total bonus paid will be deferred into shares for three years. Dividend equivalents may be accrued on deferred shares.

Whilst the Committee is of the opinion that the targets used for the annual bonus are commercially sensitive, we remain committed to best practice disclosure. We therefore set out below some examples of the objectives that the Committee will consider in respect of evaluating the strategic financial and operational efficiency and sustainability objectives. Operational efficiency objectives will include elements which optimise value and service such as the deployment of capital and employee engagement. Strategic financial targets will cover key drivers of our commercial success including capital management. ESG metrics will continue to align to our core sustainability focus including increasing our social value impact and championing an inclusive culture. Full disclosure on the targets, performance achieved and resulting bonus payouts for 2025/26 will be provided in next year’s report.

2025/26 ANNUAL BONUS AND LINK TO STRATEGY

• Measure: Financial objectives (Trading profit after interest (50%), Strategic financial (20%))
• Measure: Operational efficiency (12.5%)
• Measure: Customer satisfaction (10%)
• Measure: Sustainability (7.# 224 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

2025 PERFORMANCE MEASURES AND LINK TO STRATEGY

• Measure: Total Accounting Return (TAR)
• Measure: Total Shareholder Return (TSR) relative to FTSE 350 Real Estate companies (excluding agencies)
• Measure: Earnings Per Share (EPS) Growth
• Measure: Environmental, Social and Governance (ESG) metrics

REMUNERATION CONTINUED

ANNUAL REPORT ON REMUNERATION CONTINUED

LONG-TERM INCENTIVE PLAN (LTIP)

Following careful consideration, the performance measures of the 2025 LTIP remain unchanged, but we have decided to amend the weightings of award for the ESG and TAR elements. We have chosen to increase the weighting on the TAR measure as it is a core measure of our success and execution of our strategy, representing the value we have created for shareholders in the form of dividends paid and growth in net asset value. Sustainability remains important to how we design and operate our buildings, as well as support our people and local communities and therefore the Committee agreed that a meaningful proportion of the LTIP should continue to be assessed against ESG metrics.

Maximum award 200% of salary. The performance measures and targets for the four elements are as follows:

	Weighting (% of award)	Threshold (20% vesting)	Maximum (100% vesting)
Total Accounting Return (TAR)	35%	4% p.a.	8% p.a.
Earnings Per Share (EPS) Growth	25%	4% p.a.	8% p.a.
Total Shareholder Return relative to FTSE 350 Real Estate companies (excluding agencies)	25%	Median	Upper Quartile
Environmental, Social and Governance (ESG)	15%	See below	See below

A holding period of two years will apply to any net vested shares under the LTIP. To allow any payouts to be fully reflective of underlying performance, the LTIP underpin allows the Committee to reduce vesting should the Committee believe that the performance is inconsistent with the overall performance of the business.

ESG LTIP THREE-YEAR TARGETS

	Weighting (15%)	Threshold (20% vesting)	Maximum (100% vesting)
Increase in percentage of EPC A or B rated space	5%	15%	20%
Reduction in whole building energy related emissions intensity (scope 1 and 2)	10%	14%	27%

HOW WE WILL APPLY THE POLICY IN 2025/26 CONTINUED

LINK TO STRATEGY 3.2.1.

1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities
3. Innovate to create future options

WEIGHTING 35%

LINK TO STRATEGY 3.2.1.

1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities
3. Innovate to create future options

WEIGHTING 25%

LINK TO STRATEGY 3.2.1.

1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities

WEIGHTING 25%

LINK TO STRATEGY 3.2.1.

1. Enhance and expand the core business
2. Transform and prepare for emerging opportunities
3. Innovate to create future options

WEIGHTING 15%

225 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

SHARE OWNERSHIP AND SHARE INTERESTS (AUDITED)

The table below shows the interests of the Directors and connected persons in shares (owned outright or vested). There have been no changes in the interests in the period between 31 March 2025 and 4 June 2025.

TABLE G

	31 March 2025	31 March 2024
Chair
Duncan Owen	20,010	20,010
Executive Directors
Lawrence Hutchings	Nil	Nil
Dave Benson	88,903	64,988
Non-Executive Directors
Rosie Shapland	Nil	Nil
Lesley-Ann Nash	Nil	Nil
Nick Mackenzie	16,900	12,400
Manju Malhotra	Nil	Nil
David Stevenson	1,248	Nil
Past Directors
Graham Clemett	See note 1	189,322

1. Graham Clemett stepped down from the Board on 31 January 2025. As at date of leaving, Graham Clemett held 224,077 shares.

REMUNERATION CONTINUED

ANNUAL REPORT ON REMUNERATION CONTINUED

SINGLE FIGURE FOR NON-EXECUTIVE DIRECTORS (AUDITED)

Table F below sets out a single figure for the total remuneration received by each Non-Executive Director for the year ended 31 March 2025 and the prior year:

TABLE F

Non-Executive Director	2024/25 £000	2023/24 £000	2024/25 £000	2023/24 £000	2024/25 £000	2023/24 £000	2024/25 £000	2023/24 £000	2024/25 £000	2023/24 £000	2024/25 £000	2023/24 £000	2024/25 £000	2023/24 £000
	Duncan Owen		Stephen Hubbard		Nick Mackenzie		Rosie Shapland		Lesley-Ann Nash		Manju Malhotra		David Stevenson
Base fee	208.0	163.8	–	66.7	57.2	55.0	57.2	55.0	57.2	55.0	57.2	55.0	47.7	–
Additional fees	–	2.8	–	–	–	–	21.6	21.6	10.8	10.8	10.8	–	–	–
Total	208.0	166.6	–	66.7	57.2	55.0	78.8	76.6	68.0	65.8	68.0	55.0	47.7	–

1. Expenses incurred by Non-Executive Directors represent the cost to the Group, being gross of taxation. In 2024/25 Nick Mackenzie, Manju Malhotra, Lesley-Ann Nash, David Stevenson and Rosie Shapland were reimbursed for out of pocket expenses incurred in attending meetings, in connection with the discharge of their duties of £103.60, £96.70, £379.96 and £272.45 and £177.00 respectively.
2. Additional fees were paid during the year to Non-Executive Directors serving as Chairs of the Remuneration, Audit and ESG Committees. An additional fee is also paid to the Senior Independent Non-Executive Director.

226 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

ADDITIONAL INFORMATION

External appointments

It is the Board’s policy to allow Executive Directors to take up one Non-Executive position on the board of another company, subject to the prior approval of the Board. Any fee earned in relation to outside appointments is retained by the Executive Director. Currently, none of the Executive Directors hold any external appointments.

Relative importance of spend on pay

Chart D below shows the Company’s actual expenditure on shareholder distributions (including dividends and share buybacks) and total employee pay expenditure for the financial years ended 31 March 2024 and 31 March 2025.

CHART D

	EMPLOYEE REMUNERATION		DISTRIBUTION TO SHAREHOLDERS
	2025	2024	2025	2024
	£34.7m	£54.5m	£34.0m	£53.8m
	+2.1%	+1.3%

The estimated total dividend as reported in the financial statements for the year to 31 March 2025 was £54.5m.

NON-EXECUTIVE DIRECTOR FEES

REMUNERATION CONTINUED

ANNUAL REPORT ON REMUNERATION CONTINUED

SHARE OWNERSHIP AND SHARE INTERESTS (AUDITED) CONTINUED

TABLE H

Executive Director	Type	Owned outright or vested 2	Unvested and not subject to performance 3	Subject to performance 4	Total
Lawrence Hutchings	Shares	Nil	44,907	44,907	89,914
	Market value options 1	Nil	Nil	Nil	Nil
Graham Clemett	Shares	224,077	123,978	409,043	757,098
	Market value options 1	Nil	4,556	Nil	4,556
Dave Benson	Shares	88,903	89,913	287,428	466,244
	Market value options 1	Nil	4,556	Nil	4,556

1. Market value options include SAYE options outstanding and not yet matured as at 31 March 2025. The exercise price of these was set at 80% (in accordance with HMRC and the plan rules) of the market value of a share at the invitation date.
2. The total shares owned outright or vested. This includes any shares held by connected persons or spouse.
3. This figure includes the deferred bonus shares awarded in 2022, 2023 and 2024. For Mr Clemett, the total number of deferred bonus shares is 88,067 and for Mr Benson the total number is 61,466. For Mr Clemett and Mr Benson, it also includes the number shares vesting pursuant to the 2022 LTIP. Following Committee discretion, 25% of the 2022 LTIP will vest. These have been pro-rated for Graham Clemett to the 31 January 2025. The remaining in-flight LTIP awards for Mr Clemett will be prorated on the date of vesting. The interest in shares of 44,907 for Mr Hutchings relates to the first tranche of his buyout award which, as set out on page 223, is subject to the requirement to remain in employment during the vesting period.
4. The interest in shares of 44,907 relates to the second tranche of Mr Hutchings buyout award that is subject to the same performance conditions applicable to the 2024 LTIP grant made to the Executive Directors. For Mr Clemett, this consists of 411,043 LTIP awards made in 2023 and 2024 and for Mr Benson, the interest in shares of 287,428 consists of LTIP awards made in 2023 and 2024. Graham’s post cessation shareholding requirement will apply in line with the policy.

The fees for Non-Executive Directors were reviewed and found to be significantly below market. There will be no increases to these fees this year, but these will be considered as part of the Policy review ahead of the 2026 AGM. The fees, which are effective from 1 April 2025, are set out in the table below.

	2025/26 fee	2024/25 fee	% change
Chair	£208,000	£208,000	0%
NED base fee	£57,200	£57,200	0%
Chair of Audit Committee fee	£10,800	£10,800	0%
Chair of Remuneration Committee fee	£10,800	£10,800	0%
Chair of ESG Committee fee	£10,800	£10,800	0%
Senior Independent Director fee	£10,800	£10,800	0%

227 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

ADDITIONAL INFORMATION CONTINUED

Service contracts of Directors serving in the year

Executive Directors are employed under contracts of employment with Workspace Group PLC. The principal terms of the Executive Directors’ service contracts are as follows.# REMUNERATION CONTINUED

ANNUAL REPORT ON REMUNERATION CONTINUED

Notice period

Executive Director	Position	Effective date of contract	Notice period From Company	Notice period From Director
Lawrence Hutchings	Chief Executive Officer	18 November 2024	12 months	12 months
Dave Benson	Chief Financial Officer	1 April 2020	12 months	12 months

Graham Clemett retired as CEO on 18 November 2024, and stepped down from the Board as an Executive Director on 31 January 2025.

The Chair and Non-Executive Directors have letters of appointment. Dates of the Directors’ letters of appointment are set out below:

Name	Date of original appointment (date of reappointment)	Date of appointment/ last reappointment at AGM	Notice period
Duncan Owen	22 July 2021 (6 July 2023)	2024	6 months
Rosie Shapland	6 November 2020 (6 November 2023)	2024	3 months
Lesley-Ann Nash	1 January 2021 (1 January 2024)	2024	3 months
Manju Malhotra	26 January 2022 (26 January 2025)	2024	3 months
Nick Mackenzie	26 January 2022 (26 January 2025)	2024	3 months
David Stevenson	1 June 2024 (n/a)	2024	3 months

The Directors are subject to annual re-election at the AGM. Non-Executive Directors’ letters of appointment and Executive Directors’ contracts are available to view at the Company’s registered office. Mr Owen, as Chair designate, signed a new letter of appointment dated 27 February 2023, confirming his appointment for a further period of three years, which became effective at the conclusion of the AGM on 6 July 2023. Reappointment letters for each of Nick Mackenzie and Manju Malhotra were both dated 22 January 2025 and both took effect from 26 January 2025. David Stevenson was appointed as a Director with effect from 1 June 2024. David was subject to election by shareholders at the 2024 AGM.

REMUNERATION CONTINUED

ANNUAL REPORT ON REMUNERATION CONTINUED

Payments for loss of office (audited)

The retirement arrangements for Mr Clemett are as follows. Having served his full 12 months’ notice, Mr Clemett received salary, benefits and pension allowance in the normal way up until 31 January 2025 when his employment ended. The Committee has, in its discretion, determined that Mr Clemett should be treated as a good leaver in relation to annual bonus and outstanding LTIP awards. Mr Clemett was paid £12,840 in respect of unused holiday during the financial year in which he retired. Mr Clemett is eligible to receive a pro-rated bonus in respect of time spent in employment for the financial year ended 31 March 2025. He will be paid an annual bonus of £195,780 in respect of the year ended 31 March 2025 (see page 218 for more details). In accordance with the Remuneration Policy, 33% of the bonus will be deferred into shares for three years and the remainder will be paid on the normal bonus payment date. Mr Clemett’s outstanding LTIP awards will vest on the normal vesting dates, subject to satisfaction of the relevant performance conditions (measured over the full performance period) and time pro-rating. In accordance with the rules of the LTIP, the net number of any vested shares will also be subject to holding periods which end on the second anniversary of vesting or if earlier, two years from the date that employment ends (or 31 January 2027, if earlier). Mr Clemett’s outstanding deferred bonus share awards will vest in full on the normal vesting dates in accordance with the plan rules and the Remuneration Policy. Malus and clawback provisions will continue to apply to annual bonus, deferred bonus and LTIP awards. Outstanding SAYE options and shares held under the SIP will be treated in accordance with the terms of the plan rules. Mr Clemett will be subject to a post-employment shareholding requirement of 200% of salary for two years following the date of cessation of employment. Shares subject to these requirements will be held by a nominee until the end of the applicable holding periods.

Payments to past directors (audited)

There have not been any payments made to past directors.

228 Workspace Group PLC Annual Report and Accounts 2025

Strategic Report

Our Governance

Financial Statements

Additional Information

ADDITIONAL INFORMATION CONTINUED

Share based awards and dilution

The Company’s share schemes are funded through a combination of shares purchased in the market and new-issue shares, as appropriate. The Company monitors the number of shares issued under these schemes and their impact on dilution limits. The Company’s usage of shares compared to the relevant dilution limits set by the Investment Association in respect of all-share plans (10% in any rolling ten-year period) as at 31 March 2025 is detailed below. Despite the Investment Association removing the limit on executive share plans (5% in any rolling ten-year period), this continues to apply to the Company as part of the Remuneration Policy. As of 31 March 2025, around 2.0% and 1.7% of shares have been, or may be, issued to settle awards made in the previous ten years in connection with all-share schemes and executive share schemes respectively. Awards that are made but then lapse or are forfeited are excluded from the calculations.

	Limit	Actual		Limit	Actual
EXECUTIVE SHARE PLANS		1.7%		5%
ALL-SHARE PLANS		2.0%		10%

REMUNERATION CONTINUED

ANNUAL REPORT ON REMUNERATION CONTINUED

Committee advisers

During the year, PwC LLP acted as independent adviser to the Committee. PwC LLP was appointed by the Committee in 2018 following a selection process. PwC LLP is a founding member of the Remuneration Consultants Group and voluntarily operates under the Code of Conduct in relation to Executive remuneration consulting in the UK. The Committee is satisfied that the PwC LLP engagement partner and team, which provide remuneration advice to the Committee, do not have connections with the Group that may impair their objectivity and independence. The fees charged by PwC LLP for the provision of independent advice to the Committee during the year were £88,250 (based on hourly rates). PwC LLP provided no other services during the financial year.

Voting at the Company’s AGM

The table below sets out the results of the most recent shareholder votes on the Policy Report at the 2023 AGM, and the advisory vote on the 2023/24 Annual Report on Remuneration at the 2024 AGM on 25 July 2024. The Committee views this level of shareholder support as a strong endorsement of the Company’s Policy and its implementation.

	Percentage of votes cast	Number of votes cast
	For and Discretion Against	For and Discretion
1 Policy Report (2023 AGM)	99.77% 0.23%	168,571,004
Annual Report on Remuneration (2024 AGM)	99.31% 0.69%	168,353,446
1. A withheld vote is not a vote in law and is not counted in the calculation of the proportion of votes cast for and against a resolution.

229 Workspace Group PLC Annual Report and Accounts 2025

Strategic Report

Our Governance

Financial Statements

Additional Information

Share options

The following table shows, for the Directors who served during the year, the interests in outstanding awards under the HMRC-approved Savings Related Share Option Plan and SIP Awards.

Executive Director	At 01/04/2024	Granted during the year	Lapsed during the year	Vested in year	At 31/03/2025	Exercise price	Normal exercise date
Lawrence Hutchings	–	–	–	–	–
Graham Clemett	292	–	–	–	292	£3.95	31.01.25
	107				107		18.09.18
	228				228		30.08.20
	233				233		05.09.22
	235				235		29.09.24
	4,556				4,556		01.07.25
Dave Benson	235	–	–	–	235	£3.95	01.09.26
	4,556				4,556		01.03.27

1. As at 31 January 2025 for Mr Clemett, which was the point he ceased to be an employee.
2. Mr Hutchings was appointed as a Director on 18 November 2024.
3. Mr Clemett was granted awards under the Share Incentive Plan on 26 March 2013 (292) 18 September 2015 (107); 30 August 2017 (228); 5 September 2019 (233) and 29 September 2021 (235).
4. Mr Benson was granted an award under the Share Incentive Plan on 29 September 2021 (235).

There have been no changes in Directors’ interests over options in the period between the balance sheet date and 4 June 2025.

The Directors’ Remuneration Report has been approved by the Board of Workspace Group PLC.

By order of the Board

Lesley-Ann Nash
Chair of the Remuneration Committee

4 June 2025

ADDITIONAL INFORMATION CONTINUED

REMUNERATION CONTINUED

ANNUAL REPORT ON REMUNERATION CONTINUED

Outstanding LTIP awards

Details of current awards outstanding to Graham Clemett and Dave Benson are detailed below.

Executive Director	At 1 April 2024	Performance	Lapsed during the year	Performance	Vested during the year	Performance	Exercised during the year	Performance	At 31 March 2025	Performance
Lawrence Hutchings	5	28/11/2024	–	–	–	–	–	–	44,907	28/11/2024
Graham Clemett	2	24/06/2021	117,043	58,521	58,521	–	–	–
									165,350	24/06/2022
									216,750	22/06/2023
									192,293	21/06/2024
Dave Benson		24/06/2021	80,541	40,270	40,270	–	–	–
									113,789	24/06/2022
									149,188	22/06/2023
									138,240	21/06/2024

1. Awards will vest subject to the satisfaction of performance conditions detailed on page 222 over the three-year performance period.
2. Mr Clemett retired as an employee with the agreement of the Company on 31 January 2025. As a result, Graham’s in-flight LTIP (Long Term Incentive Plan) awards will continue and vest on the original vesting dates, subject to performance assessment and pro-rating in accordance with the LTIP rules.
3. LTIP awards made to the Executive Directors in June 2021, 2022, 2023 and 2024 awards were in respect of 200% of salary, based on a share price at date of award of £8.6117, £6.2800, £4.9347 and £5.787 respectively. The 2022 LTIP awards vested at 25% following Committee discretion.
4. On 21 June 2024, LTIP awards of 192,293 and 138,240 were granted to Mr Clemett and Mr Benson respectively.
   5.# REPORT OF THE DIRECTORS

The Directors present their report on the affairs of the Group together with the audited financial statements for the year ended 31 March 2025.

Workspace Group PLC is incorporated in the UK and registered as a public limited company in England and Wales with company number 02041612 and registered office at Canterbury Court, Kennington Park, 1-3 Brixton Road, London SW9 6DE. It is listed on the main market of the London Stock Exchange. It is the ultimate holding company of the Group. A full list of its subsidiaries is set out in note 27 to the financial statements on page 269.

Where reference is made in this Directors’ Report to other sections of the Annual Report, those sections are incorporated by reference into this Directors’ Report. Certain disclosures required to be contained in the Directors’ Report have been incorporated into the Strategic Report as set out in ‘Other information’ below.

Dividends

An interim dividend of 9.4 pence was paid in February 2025 (2024: 9.0 pence) and the Board is recommending the payment of a final dividend of 19.0 pence (2024: 19.0 pence) per share to be paid on 1 August 2025 to shareholders whose names are on the Register of Members at the close of business on 4 July 2025. This makes a total dividend of 28.4 pence (2024: 28.0 pence) for the year.

Disclosure of information to auditors

The Directors who held office at the date of approval of this Directors’ Report confirm that, so far as they are each aware, there is no relevant audit information of which the Company’s auditor is unaware; and each Director has taken all the steps that they ought to have taken as a Director to make themselves aware of any relevant audit information and to establish that the Company’s auditor is aware of that information.

Directors’ indemnities

Under the Company’s Articles of Association the Company may, to the extent permitted by law, indemnify any Director, Secretary or other Officer of the Company against any liability and the Company may also purchase and maintain insurance against such liability. The Board considers that the provision of such indemnification is in keeping with current market practice and the Board believes that it is in the best interest of the Company to provide such indemnities in order to attract and to retain high-calibre Directors and Officers. The Company purchased and maintained Directors’ and Officers’ liability insurance during the year under review and at the date of approval of the Directors’ Report. Qualifying third-party indemnity provisions (as defined by Section 234 of the Companies Act 2006) were in force during the period and these provisions remain in force in relation to certain losses and liabilities which the Directors may incur to third parties in the course of acting as Directors or employees of the Company or of any associated company.

Employment policies

Workspace recognises that a diversity of skills and experiences in our workforce will provide a competitive advantage. The Company has various employment policies, including in relation to recruitment, diversity & inclusion, health & safety and wellbeing. We monitor these practices to ensure that they are fair and objective. This includes giving full and fair consideration to applications from prospective employees who are disabled, having regard to their aptitudes and abilities, and not discriminating against employees under any circumstances (including in relation to applications, training, career development and promotion) on the grounds of any disability. In the event that an employee, worker or contractor becomes disabled in the course of their employment or engagement, Workspace aims to ensure that reasonable steps are taken to accommodate their disability by making reasonable adjustments to their existing employment or engagement.

Further detail on our employment policies and how we invest in our workforce can be found on pages 81 to 82 and 167 to 168. Details of how we reward our employees can be found on pages 200 and 204 and in notes 22 and 23 to the financial statements.

Share capital

As at 31 March 2025, the Company’s issued share capital comprised a single class of 192,143,004 ordinary shares of £1.00 each. Details of the Company’s issued share capital are set out on page 265.

Restrictions on transfer of shares

There are no restrictions on the transfer of ordinary shares in the Company other than restrictions that are imposed by law or regulation (for example, insider trading laws). In addition, pursuant to the Company’s Dealing Code, Directors and certain employees of the Group require the approval of the Company to deal in ordinary shares of the Company. The Company is not aware of any agreements between shareholders that may result in restrictions on the transfer of securities.

Substantial shareholdings in the Company

As at 31 March 2025 and 23 May 2025, the following interests in voting rights over the issued share capital of the Company had been notified:

Shareholder	31 March 2025	23 May 2025
	Number of shares	Percentage held
The London & Amsterdam Trust Company Limited	55,045,439	28.65%
BlackRock, Inc.	23,166,428	12.06%
Ameriprise/Threadneedle	9,554,960	4.97%
Janus Henderson Investors	7,777,806	4.05%
The Vanguard Group Inc	7,715,231	4.02%
Artemis Fund Managers Ltd	7,277,715	3.79%
Man Group	6,500,318	3.38%
Aberforth Partners LLP	6,043,560	3.15%

Articles of Association

The following description summarises certain provisions of the Company’s Articles of Association and applicable English law concerning companies. Any amendment to the Articles of Association of the Company may be made in accordance with the provisions of the Companies Act 2006, by way of special resolution.

Directors

Unless otherwise determined by ordinary resolution of the Company, the Board shall be comprised of not less than two or more than ten Directors. The Board may exercise all powers of the Company, subject to the Company’s Articles of Association, the Companies Act 2006 and other applicable legislation. Directors may be elected by the members in a general meeting or appointed by the Board. The Company’s Articles of Association require any new Directors to stand for election at the next AGM following their appointment. The Articles of Association also require each Director to stand for re-election every three years following their election. However, in accordance with the UK Corporate Governance Code and the Company’s current practice, all continuing Directors will offer themselves for election or re-election (as applicable) at the AGM on 16 July 2025. In addition to any power of removal conferred by the Companies Act 2006, the Company may by ordinary resolution remove any Director before the expiry of their period of office.

Voting and other rights

Subject to the provisions of the Companies Act 2006, to any special terms on which shares may have been issued or to any suspension or abrogation of voting rights pursuant to the Articles of Association, every member who is present in person shall have one vote on a show of hands or, on a poll, one vote for each share of which they are a holder. The Company is not aware of any agreements between shareholders that may result in restrictions on voting rights.

The Company may, by ordinary resolution, declare dividends but no dividend shall exceed the amount recommended by the Board. Subject to the provisions of the Companies Act 2006, the Board may also declare and pay such interim dividends as appears to the Board to be justified by the profits of the Company available for distribution. Except as otherwise provided by the rights attached to shares, all dividends shall be paid to shareholders according to the amounts paid up on the shares on which the dividend is paid. Subject to the terms of allotment of shares, the Board may only make calls on shareholders in respect of any amounts unpaid on the shares held by them. All shares are fully paid.

Purchase of own shares and issuing shares

Under the Company’s Articles of Association, the Company may purchase any of its own shares. The Company was granted authority at the 2024 Annual General Meeting to make market purchases of its own ordinary shares. This authority will expire at the conclusion of the 2025 Annual General Meeting and a resolution will be proposed to renew this authority. No ordinary shares were purchased under this authority during the year.

The Company was granted authority at the 2024 Annual General Meeting to allot and/or grant rights to subscribe for, or convert securities into, shares in the Company up to an aggregate nominal amount as set out in the Notice of Annual General Meeting 2024. This authority will expire at the conclusion of the 2025 Annual General Meeting and a resolution will be proposed to renew this authority.# REPORT OF THE DIRECTORS CONTINUED

Significant agreements on change of control
The Group’s borrowing facilities and other financial instruments (details of which can be found in note 16 to the financial statements) are agreements that could allow counterparties to terminate or to alter those arrangements in the event of a change of control of the Company.

Compensation for loss of office in the event of a takeover
There are no agreements in place between the Company and its employees or Directors for compensation for loss of office or employment that occur because of a takeover bid.

Employee Share Trusts
The Company operates an Employee Share Ownership Trust (‘ESOT’) and a trust for the Share Incentive Plan (‘SIP’). The trusts are used to purchase Company shares in the market from time to time and hold them for the benefit of employees, including for satisfying awards that vest under the Company’s various share incentive plans. The ESOT also holds some Company shares in particular accounts for specific employees who have options over such shares vest under the Company’s share incentive plans but have not yet exercised those options. The trustee of the ESOT may vote the shares it holds in the Company at its discretion, but where it holds any shares in an account for particular employees it will seek their instructions on how it exercises the votes attached to those shares. The trustee of the SIP trust does not vote the rights attached to shares held in the trust.

Information required under UKLR 6.6.1R
* Interest capitalised: Note 4 to the financial statements
* Details of long-term incentive schemes: Remuneration Report, pages 203 and 222

There is no further information required to be disclosed under UKLR 6.6.1R.

REPORT OF THE DIRECTORS CONTINUED
232 Workspace Group PLC Annual Report and Accounts 2025
Strategic Report | Our Governance | Financial Statements | Additional Information

Other information
Other information relevant to the Directors’ Report may be found in the following sections of the Annual Report:

Information	Location in Annual Report
Corporate governance statement, prepared in accordance with rule 7.2 of the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules	Corporate Governance Report, pages 118 to 230
Principal risks and uncertainties	pages 86 to 93
Culture, purpose, values and strategy	Strategic Report, pages 34 to 58; Corporate Governance Report, pages 122 to 123 and 132
Directors	Directors’ biographies, pages 127 to 129; Our Board, pages 126 to 129
Diversity & inclusion	Corporate Governance Report, pages 162 to 171
Employee share schemes	Note 23 to the financial statements
Engagement with employees	Strategic Report, pages 18 to 20; Our stakeholders, pages 134 to 135; Section 172(1) Statement, pages 139 to 140
Engagement with suppliers, customers and others	Strategic Report, pages 15 to 17 and 21 to 26; Our stakeholders, page 136; Section 172(1) Statement, pages 139 to 140
Financial risk management	Note 18 to the financial statements; Principal risks and uncertainties, pages 86 to 93
Future developments	Chair’s Statement, page 10 to 11; Chief Executive’s Review, page 12 to 13; Our business model, pages 2 to 9; Our strategy, pages 34 to 58; Going Concern, page 94
Greenhouse gas emissions and energy consumption	GHG/SECR Emissions, page 107
Political donations and expenditure	Compliance Statements, page 94
Post balance sheet events	Note 29 to the financial statements
Principal risks and uncertainties	Principal risks and uncertainties, pages 86 to 93
Research and development	The Company does not undertake research and development activities

The Directors’ Report has been approved by the Board of Directors and signed on its behalf by

Carmelina Carfora
Company Secretary
4 June 2025

REPORT OF THE DIRECTORS CONTINUED
233 Workspace Group PLC Annual Report and Accounts 2025
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STATEMENT OF DIRECTORS’ RESPONSIBILITIES IN RESPECT OF THE ANNUAL REPORT AND THE FINANCIAL STATEMENTS

The Directors are responsible for preparing the Annual Report and the Group and Parent Company financial statements in accordance with applicable law and regulations. Company law requires the Directors to prepare Group and Parent Company financial statements for each financial year. Under that law they are required to prepare the Group financial statements in accordance with UK-adopted international accounting standards and applicable law and have elected to prepare the Parent Company financial statements in accordance with UK accounting standards and applicable law, including FRS 101 Reduced Disclosure Framework.

Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and Parent Company and of the Group’s profit or loss for that period.

In preparing each of the Group and Parent Company financial statements, the Directors are required to:
* select suitable accounting policies and then apply them consistently;
* make judgements and estimates that are reasonable, relevant and reliable and, in respect of the Parent Company financial statements only, prudent;
* for the Group financial statements, state whether they have been prepared in accordance with UK-adopted international accounting standards;
* for the Parent Company financial statements, state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the Parent Company financial statements;
* assess the Group and Parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
* use the going concern basis of accounting unless they either intend to liquidate the Group or the Parent Company or to cease operations or have no realistic alternative but to do so.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Parent Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Parent Company and enable them to ensure that its financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.

Under applicable law and regulations, the Directors are also responsible for preparing a Strategic Report, Directors’ Report, Directors’ Remuneration Report and Corporate Governance Statement that complies with that law and those regulations. The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

In accordance with Disclosure Guidance and Transparency Rule (‘DTR’) 4.1.16R, the financial statements will form part of the annual financial report prepared under DTR 4.1.17R and 4.1.18R. The auditor’s report on these financial statements provides no assurance over whether the annual financial report has been prepared in accordance with those requirements.

Responsibility statement of the Directors in respect of the annual financial report
We confirm that to the best of our knowledge:
* the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group and the undertakings included in the consolidation taken as a whole; and
* the Annual Report includes a fair review of the development and performance of the business and the position of the Group and Company including the undertakings of the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.

Signed on behalf of the Board on 4 June 2025 by:

Lawrence Hutchings
Chief Executive Officer

Dave Benson
Chief Financial Officer

234 Workspace Group PLC Annual Report and Accounts 2025
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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WORKSPACE GROUP PLC

OPINION ON THE FINANCIAL STATEMENTS
In our opinion:
* the financial statements give a true and fair view of the state of the Group’s and of the Parent Company’s affairs as at 31 March 2025 and of the Group’s profit for the year then ended;
* the Group financial statements have been properly prepared in accordance with UK adopted international accounting standards;
* the Parent Company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
* the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements of Workspace Group PLC (the ‘Parent Company’) and its subsidiaries (the ‘Group’) for the year ended 31 March 2025 which comprise the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Consolidated Statement of Changes in Equity, the Consolidated Statement of Cash Flows, the Parent Company Balance sheet, the Parent Company Statement of Changes in Equity and notes to the financial statements and notes to the parent company financial statements, including material accounting policy information. The financial reporting framework that has been applied in the preparation of the Group financial statements is applicable law and UK adopted international accounting standards.# INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WORKSPACE GROUP PLC

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Our audit opinion is consistent with the additional report to the audit committee.

Independence

Following the recommendation of the Audit Committee, we were appointed by the Board of Directors on 25 July 2024 to audit the financial statements for the year ended 31 March 2025 and subsequent financial periods. The period of total uninterrupted engagement including retenders and reappointments is less than one year, covering the year ended 31 March 2025.

We remain independent of the Group and the Parent Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard as applied to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. The non-audit services prohibited by that standard were not provided to the Group or the Parent Company.

Conclusions Relating to Going Concern

In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Our evaluation of the Directors’ assessment of the Group and the Parent Company’s ability to continue to adopt the going concern basis of accounting included:

• Using our knowledge of the Group and its market sector together with the current general economic environment to assess the Directors’ identification of the inherent risks to the Group’s business. This covered how these might impact the Group and the Parent Company’s ability to remain a going concern for the going concern period, being the period to 30 June 2026, which is at least 12 months from when the financial statements are authorised for issue;
• Obtaining the Directors’ going concern assessment and obtaining an understanding of the Directors’ process for assessing going concern including an understanding of the key assumptions used;
• Assessing the Group’s forecast cash flows with reference to historic performance and challenging the Directors’ forecast assumptions in comparison to the current performance of the Group;
• Testing the inputs into the forecasts for reasonableness based on historic performance and corroboration to contractual agreements where available;
• Agreeing the Group’s available borrowing facilities and the related terms and covenants to loan agreements;
• Considering the Group’s plans regarding loans which are due for repayment within the going concern assessment period;
• Obtaining covenant calculations and forecast calculations to test for any potential future covenant breaches. We also considered the covenant compliance headroom for sensitivity to both future changes in property valuations and the Group’s future financial performance;
• Considering board minutes and evidence obtained through the audit and challenging the Directors on the identification of any contradictory information in the forecast cash flows and the resulting impact on the going concern assessment;
• Analysing the Directors’ stress testing calculations and challenging the assumptions made using our knowledge of the business and of the current economic climate to assess the reasonableness of the downside scenarios selected; and
• Reviewing the disclosures in the financial statements relating to going concern to check that the disclosure is consistent with the Directors’ going concern assessment.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group and the Parent Company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Strategic Report

Our Governance

Financial Statements

Additional Information

In relation to the Parent Company’s reporting on how it has applied the UK Corporate Governance Code, we have nothing material to add or draw attention to in relation to the Directors’ statement in the financial statements about whether the Directors considered it appropriate to adopt the going concern basis of accounting. Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.

OVERVIEW

Key Audit Matters

KAM 2025	Materiality
Valuation of investment properties	Group financial statements as a whole £24.7m based on 1% of Total Assets

AN OVERVIEW OF THE SCOPE OF OUR AUDIT

Our audit was scoped by obtaining an understanding of the Group and its environment, the applicable financial reporting framework and the Group’s system of internal control. On the basis of this, we identified and assessed the risks of material misstatement in the financial statements. We also addressed the risk of management override of internal controls, including whether there was evidence of bias by the Directors that may have represented a risk of material misstatement.

The Group has just a single component as it invests only in investment properties in and around London and the South East of England, with a single finance team and a common financial reporting system and internal control framework. The audit approach included undertaking audit work on the key risks of material misstatement identified for the Group across the single component.

The Group audit team performed all the work necessary to issue the Group and Parent Company audit opinion. The audit procedures performed by the Group audit team in respect of the Parent Company audit opinion were completed to a lower level of materiality as set out below.

Climate Change

Our work on the assessment of potential impacts on climate-related risks on the Group’s operations and financial statements included:

• Enquiries and challenge of management to understand the actions they have taken to identify climate-related risks and their potential impacts on the financial statements and adequately disclose climate-related risks within the annual report;
• Our own qualitative risk assessment taking into consideration the sector in which the Group operates and how climate change affects the investment property sector;
• Review of the minutes of Board, ESG and Audit Committee meetings and other papers related to climate change to determine if there were any climate related matters affecting the financial statements which we are not already aware of, and evaluating the impact of these, if any; and
• We challenged the extent to which climate-related considerations, including the expected cash flows from the initiatives and commitments have been reflected, where appropriate, in management’s going concern assessment and in management’s judgements and estimates in relation to the investment property valuation.

We also assessed the consistency of management’s disclosures included as Other Information on page 99 with the financial statements and with our knowledge obtained from the audit.

Based on our risk assessment procedures, we did not identify there to be any Key Audit Matters that were materially affected by climate-related risks.

KEY AUDIT MATTER

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit, and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WORKSPACE GROUP PLC CONTINUED

KEY AUDIT MATTERS CONTINUED

| Key audit matter | How the scope of our audit addressed the key audit matter # INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WORKSPACE GROUP PLC CONTINUED

There is also a risk that the Directors may unduly influence the significant judgements and estimates in respect of property valuations in order to achieve property valuation or other performance or financial targets or to meet market expectations. This matter has required significant auditor attention, as a result of which we consider the valuation of the investment properties to be a key audit matter. Our audit work included, but was not restricted to, the following:

Group’s controls relating to the valuation of investment properties – We evaluated the design, implementation and appropriateness of the Group’s controls relating to the valuation of investment properties, including the processes by which the Group ensures that accurate data is provided to the external valuer. In doing so, we performed a walkthrough of the relevant controls by obtaining evidence for the design and implementation of the controls.

Assessment of the valuer and relevance of their work
– We assessed the competency, qualifications, independence and objectivity of the independent external valuer engaged by the Group and reviewed the terms of their engagement for any unusual arrangements, limitations in the scope of their work or evidence of management bias.
– Together with our internal RICS qualified auditor’s experts we read the valuation reports and confirmed that all valuations had been prepared in accordance with applicable valuation guidelines and were therefore appropriate for determining the carrying value in the Group’s financial statements.

Data provided to the valuer – We corroborated the underlying data provided to the valuer by management, which included observable inputs such as passing rent and lease term, by agreeing a sample to executed lease agreements as part of our audit work.

Assumptions and estimates used by the valuer
With assistance from our internal RICS qualified auditor’s experts we performed the following procedures:
– Developed yield expectations for each property using available independent industry data and reports and comparable transactions in the market around the year end.
– Attended meetings with the valuers and discussed the assumptions used and the valuation movement in the period with the valuers.
– Where the valuation yield or market rental values, or movements in the period relating to the above, were outside of our expected ranges, we challenged the valuer on specific assumptions and reasoning for the yields and/or market rents applied and corroborated their explanations where relevant, including agreeing to third-party documentation and/or market comparisons.
– Evaluated the other key valuation assumptions, being the market rental values, taking into account factors such as the location and specifics of each property.
– Checked the data provided to the valuers by the Group to determine whether it was consistent with the information that we audited.

Related disclosures in the financial statements – We reviewed the appropriateness of the Group’s disclosures within the financial statements in relation to valuation methodology, key valuation assumptions and valuation sensitivity by checking that these adhere to the disclosure requirements of the reporting framework used.

Key observations
Based on our work we have not noted any material instance which may indicate that the assumptions adopted by the Directors in the valuation were not reasonable or that the methodology applied was inappropriate in the context of our audit of the financial statements as a whole.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WORKSPACE GROUP PLC CONTINUED

OUR APPLICATION OF MATERIALITY

We apply the concept of materiality both in planning and performing our audit, and in evaluating the effect of misstatements. We consider materiality to be the magnitude by which misstatements, including omissions, could influence the economic decisions of reasonable users that are taken on the basis of the financial statements. In order to reduce to an appropriately low level the probability that any misstatements exceed materiality, we use a lower materiality level, performance materiality, to determine the extent of testing needed. Importantly, misstatements below these levels will not necessarily be evaluated as immaterial as we also take account of the nature of identified misstatements, and the particular circumstances of their occurrence, when evaluating their effect on the financial statements as a whole.

Based on our professional judgement, we determined materiality for the financial statements as a whole and performance materiality as follows:

	Group financial statements 2025	Parent Company financial statements 2025
Materiality	£24.7m	£16.0m
Basis for determining materiality	Materiality for the Group and Parent Company’s financial statements was set at 1% of total assets. This provides a basis for determining the nature and extent of our risk assessment procedures, identifying and assessing the risk of material misstatement and determining the nature and extent of further audit procedures.
Rationale for the benchmark applied	We determined that the benchmark of total assets would be the most appropriate basis for determining overall materiality because we consider it to be the principal consideration for the users of the financial statements in assessing the financial performance of the Group.
Performance materiality	£14.8m	£9.6m
Basis for determining performance materiality	Performance materiality is set at an amount to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality. On the basis of our risk assessment, together with our assessment of the Group’s control environment, our judgement was that performance materiality for the Group should be 60% of materiality. We determined that the same measure as the Group was appropriate for the Parent Company.
Rationale for the percentage applied for performance materiality	We determined that 60% of materiality would be appropriate based on our risk assessment, together with our assessment of the Group’s control environment, the low number of components, the low value of brought forward adjustments impacting the current year, while also acknowledging that as it is our first year auditing the Group our understanding of the Group is likely to be less than it otherwise would be.

Specific materiality
We also determined that for other account balances and classes of transactions that impact the measurement of Trading Profit after Interest a misstatement of less than materiality for the financial statements as a whole, specific materiality, could influence the economic decisions of users. Trading Profit after Interest comprises net rental income, administrative expenses and net finance costs. We consider this to be a key performance measure of the Group. As a result, we determined materiality for these items based on 5% of Trading Profit after Interest. We further applied a performance materiality level of 60% of specific materiality to ensure that the risk of errors exceeding specific materiality was appropriately mitigated.

Reporting threshold
We agreed with the Audit Committee that we would report to them all individual audit differences impacting the Group in excess of £0.98m and for those items impacting the measurement of Trading Profit after Interest, all individual audit differences in excess of £0.13m. Regarding the Parent Company, we agreed that we would report all audit differences in excess of £0.64m. We also agreed to report differences below this threshold that, in our view, warranted reporting on qualitative grounds.

OTHER INFORMATION

The directors are responsible for the other information. The other information comprises the information included in the document entitled ‘Annual Report and Accounts 2025’ other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WORKSPACE GROUP PLC CONTINUED

CORPORATE GOVERNANCE STATEMENT

The UK Listing Rules require us to review the Directors’ statement in relation to going concern, longer-term viability and that part of the Corporate Governance Statement relating to the Parent Company’s compliance with the provisions of the UK Corporate Governance Code specified for our review. Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate Governance Statement is materially consistent with the financial statements or our knowledge obtained during the audit.# Going concern and longer-term viability

– The Directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any material uncertainties identified set out on page 94;
– The Directors’ explanation as to their assessment of the Group’s prospects, the period this assessment covers and why the period is appropriate set out on page 94; and
– The Directors’ statement on whether they have a reasonable expectation that the group will be able to continue in operation and meet its liabilities set out on page 94.

Other Code provisions

– Directors’ statement on fair, balanced and understandable set out on page 182;
– Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on page 184;
– The section of the annual report that describes the review of effectiveness of risk management and internal control systems set out on pages 184 to 185; and
– The section describing the work of the audit committee set out on pages 183 to 185.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WORKSPACE GROUP PLC CONTINUED

OTHER COMPANIES ACT 2006 REPORTING

Based on the responsibilities described below and our work performed during the course of the audit, we are required by the Companies Act 2006 and ISAs (UK) to report on certain opinions and matters as described below.

Strategic report and Directors’ report

In our opinion, based on the work undertaken in the course of the audit:
– the information given in the Strategic report and the Directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
– the Strategic report and the Directors’ report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the Group and Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the Directors’ report.

Directors’ remuneration

In our opinion, the part of the Directors’ remuneration report to be audited has been properly prepared in accordance with the Companies Act 2006.

Corporate governance statement

In our opinion, based on the work undertaken in the course of the audit the information about internal control and risk management systems in relation to financial reporting processes and about share capital structures, given in compliance with rules 7.2.5 and 7.2.6 in the Disclosure Guidance and Transparency Rules sourcebook made by the Financial Conduct Authority (the FCA Rules), is consistent with the financial statements and has been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in this information.

In our opinion, based on the work undertaken in the course of the audit information about the Parent Company’s corporate governance code and practices and about its administrative, management and supervisory bodies and their committees complies with rules 7.2.2, 7.2.3 and 7.2.7 of the FCA Rules.

We have nothing to report arising from our responsibility to report if a corporate governance statement has not been prepared by the Parent Company.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
– adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
– the Parent Company financial statements and the part of the Directors’ remuneration report to be audited are not in agreement with the accounting records and returns; or
– certain disclosures of Directors’ remuneration specified by law are not made; or
– we have not received all the information and explanations we require for our audit.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WORKSPACE GROUP PLC CONTINUED

RESPONSIBILITIES OF DIRECTORS

As explained more fully in the Directors’ responsibility statement, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Directors are responsible for assessing the Group’s and the Parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Non-compliance with laws and regulations

Based on:
– Our understanding of the Group and the industry in which it operates;
– Discussion with management, those charged with governance, legal counsel and the Audit Committee;
– Obtaining an understanding of the Group’s policies and procedures regarding compliance with laws and regulations;

we considered the significant laws and regulations to be UK-adopted international accounting standards, UK Listing Rules and applicable tax regulations (including compliance with the UK REIT regime). The Group is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be VAT Regulations, employment law, environmental regulations and the Health and Safety Act.

Our procedures in respect of the above included:
– Review of minutes of meetings of those charged with governance for any instances of non-compliance with laws and regulations;
– Involvement of tax experts in the audit;
– Review of correspondence with regulatory and tax authorities for any instances of non-compliance with laws and regulations;
– Review of financial statement disclosures and agreeing to supporting documentation; and
– Review of legal expenditure accounts to understand the nature of expenditure incurred.

Fraud

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:
– Enquiry with management, those charged with governance and the Audit Committee regarding any known or suspected instances of fraud;
– Obtaining an understanding of the Group’s policies and procedures relating to:
– Detecting and responding to the risks of fraud; and
– Internal controls established to mitigate risks related to fraud.
– Review of minutes of meetings of those charged with governance for any known or suspected instances of fraud;
– Discussion amongst the engagement team as to how and where fraud might occur in the financial statements;
– Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and
– Considering remuneration incentive schemes and performance targets and the related financial statement areas impacted by these.

Based on our risk assessment, we considered the areas most susceptible to fraud to be the inputs to the valuation of the investment properties, management override of controls, the manipulation of revenue recognition through journal postings and the capitalisation of property expenditure.

Our procedures in respect of the above included:

Addressing the risk of management override of controls and manipulation of revenue recognition through journal postings by:
– Testing a sample of journal entries throughout the year which met defined risk criteria (including those specifically relating to revenue), as well as testing a sample of the residual journal population, by agreeing to supporting documentation and evaluating whether there was evidence of bias by management or the Directors that represented a risk of material misstatement due to fraud; and
– Assessing significant estimates made by management for bias on key audit matters.# INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WORKSPACE GROUP PLC

Our responses to the valuation of investment properties are set out in the key audit matters section above. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members who were all deemed to have appropriate competence and capabilities and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

USE OF OUR REPORT

This report is made solely to the Parent Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Parent Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Parent Company and the Parent Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Richard Levy (Senior Statutory Auditor)
for and on behalf of BDO LLP, Statutory Auditor
London, UK
4 June 2025

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 2025

		2025	2024
Notes		£m	£m
Revenue	1	185.2	184.3
Direct costs	1	(63.1)	(58.1)
Net rental income	1	122.1	126.2
Administrative expenses	2	(23.3)	(25.3)
Trading profit		98.8	100.9
Loss on disposal of investment properties and assets held for sale	3(a)	(1.5)	(2.3)
Other expenses	3(b)	(3.6)	(1.2)
Change in fair value of investment properties	10	(55.9)	(251.2)
Impairment of assets held for sale		(0.4)	(4.1)
Operating profit/(loss)	3	7.4	(157.9)
Finance costs	4	(32.0)	(34.9)
Profit/(loss) before tax	5	5.4	(192.8)
Taxation	6	–	0.3
Profit/(loss) for the financial year after tax		5.4	(192.5)
Basic earnings/(loss) per share	8	2.8p	(100.4p)
Diluted earnings/(loss) per share	8	2.8p	(100.4p)

1. Direct costs in 2025 includes impairment of receivables of £1.0m (2024: £0.8m). See note 1 for additional information.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2025

		2025	2024
Notes		£m	£m
Profit/(loss) for the financial year		5.4	(192.5)
Other comprehensive income:
Items that will not be reclassified to profit or loss:
Change in fair value of other investments	12	0.1	1.1
Items that may be reclassified subsequently to profit or loss:
Change in fair value of derivatives		(0.3)	0.2
Other comprehensive (loss)/income in the year		(0.2)	1.3
Total comprehensive income/(loss) for the year		5.2	(191.2)

The notes on pages 246 to 268 form part of these financial statements.

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2025

		2025	2024
Non-current assets	Notes	£m	£m
Investment properties	10	2,351.7	2,408.5
Intangible assets		1.1	2.2
Property, plant and equipment	11	3.4	3.0
Other investments	12	3.3	3.2
Derivative financial instruments	16(e)	–	0.2
Deferred tax		0.3	0.3
		2,359.8	2,417.4
Current assets
Trade and other receivables	13	32.8	36.7
Assets held for sale	10	45.2	65.7
Cash and cash equivalents	14	32.7	11.6
		110.7	114.0
Total assets		2,470.5	2,531.4
Current liabilities
Trade and other payables	15	(92.2)	(93.0)
Borrowings	16(a)	(79.9)	–
Derivative financial instruments	16(e)	(0.1)	–
		(172.2)	(93.0)
Non-current liabilities
Borrowings	16(a)	(761.4)	(854.8)
Lease obligations	17	(34.7)	(34.7)
		(796.1)	(889.5)
Total liabilities		(968.3)	(982.5)
Net assets		1,502.2	1,548.9
Shareholders’ equity	Notes	£m	£m
Share capital	20	192.1	191.9
Share premium	20	295.6	296.6
Investment in own shares	22	(0.3)	(9.9)
Other reserves	21	71.2	93.0
Retained earnings		943.6	977.3
Total shareholders’ equity		1,502.2	1,548.9

The notes on pages 246 to 268 form part of these financial statements.

The financial statements on pages 243 to 268 were approved and authorised for issue by the Board of Directors on 4 June 2025 and signed on its behalf by:

Lawrence Hutchings
Director

Dave Benson
Director

Company registration number: 02041612

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2025

	Attributable to owners of the Parent
	Total	Investment share-	Share	Share	Other	Retained
	holders’	capital	premium	in own	reserves	earnings
	equity			shares
Notes	£m	£m	£m	£m	£m	£m
Balance at 31 March 2023	1,787.7	191.6	295.5	(9.9)	91.0	1,219.5
Loss for the financial year	(192.5)	–	–	–	–	(192.5)
Other comprehensive income for the year	1.3	–	–	–	1.3	–
Total comprehensive income/(loss)	(191.2)	–	–	–	1.3	(192.5)
Transactions with owners:
Dividends paid	(50.6)	–	–	–	–	(50.6)
Share-based payments	3.0	0.3	1.1	0.7	–	–
Balance at 31 March 2024	1,548.9	191.9	296.6	(9.9)	93.0	977.3
Profit for the financial year	5.4	–	–	–	–	5.4
Other comprehensive loss for the year	(0.2)	–	–	–	(0.2)	–
Total comprehensive (loss)/income	5.2	–	–	–	(0.2)	5.4
Transactions with owners:
Dividends paid	(54.5)	–	–	–	–	(54.5)
Own shares transferred in prior years 2	–	–	–	9.3	–	(9.3)
Cost of shares awarded to employees	0.3	–	–	0.3	–	–
Share-based payments	2.3	0.2	(1.0)	1	(0.4)	–
Share options lapsed in prior years 3	–	–	–	(21.2)	21.2	–
Balance at 31 March 2025	1,502.2	192.1	295.6	(0.3)	71.2	943.6

1. The movement in the year on share premium relates to the excess between the nominal value and the vested share price on awarded shares to employees in the previous year. This has been reclassified to retained earnings in the current year.
2. In the year the Group transferred the excess amounts held in the investment in own shares reserve to retained earnings in accordance with the carrying value of the remaining shares held. The transfer should have been made prior to the date of the opening comparative period, but was omitted. The error is not considered material and hence it is being corrected in the current year.
3. In the year the Group transferred amounts held in the share-based payment reserve to retained earnings In relation to share options that had lapsed in prior years. The transfer should have been made prior to the date of the opening comparative period, but was omitted. The error is not considered material and hence it is being corrected in the current year.

The notes on pages 246 to 268 form part of these financial statements.

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025

	Notes	2025	2024
		£m	£m
Cash flows from operating activities
Cash generated from operations	19	105.1	87.7
Interest paid		(28.5)	(33.8)
Net cash inflow from operating activities		76.6	53.9
Cash flows from investing activities
Capital expenditure on investment properties		(58.9)	(71.7)
Proceeds from government grant		0.7	1.5
Proceeds from disposal of investment properties (net of sale costs)		36.5	22.3
Proceeds from disposal of assets held for sale (net of sale costs)		40.4	96.2
Purchase of intangible assets		(0.4)	(0.8)
Purchase of property, plant and equipment		(1.8)	(0.4)
Other expenses		–	(1.2)
Net cash inflow from investing activities		16.5	45.9
Cash flows from financing activities
Finance costs for new/amended borrowing facilities		(1.3)	(0.8)
Repayment of bank borrowings	16(h)	(355.5)	(211.0)
Draw down of bank borrowings	16(h)	341.5	156.0
Settlement of share schemes		(0.4)	(0.2)
Dividends paid	7	(56.3)	(50.7)
Net cash outflow from financing activities		(72.0)	(106.7)
Net Increase/(decrease) in cash and cash equivalents		21.1	(6.9)
Cash and cash equivalents at start of year	14	11.6	18.5
Cash and cash equivalents at end of year	14	32.7	11.6

The notes on pages 246 to 268 form part of these financial statements.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

Workspace Group PLC (the ‘Company’) and its subsidiaries (together ‘the Group’) are engaged in property investment in the form of letting of high-quality business accommodation to businesses in and around London and the South East. The Company is a public limited company, limited by shares, which is listed on the London Stock Exchange and is incorporated and domiciled in England and Wales. The registered address of the Company is Canterbury Court, Kennington Park, 1–3 Brixton Road London SW9 6DE. The registered number of the Company is 02041612.# BASIS OF PREPARATION

These financial statements are presented in Sterling, which is the Company’s functional currency and the Group’s presentation currency, and have been prepared and approved by the Directors on a going concern basis, in accordance with UK-adopted international accounting standards. The Company has elected to prepare its Parent Company financial statements in accordance with FRS101; these are presented on pages 269 to 272.

The Board is required to assess the appropriateness of applying the going concern basis in the preparation of the financial statements. Macroeconomic and geo-political issues, including the impact of US tariffs on UK businesses and their supply chains, have heightened wider concerns around the UK economy and mean there is a continuing risk of an economic downturn. In this context, the Directors have fully considered the business activities and principal risks of the Group. Further details of the principal risks can be found on pages 86 to 93.

In preparing the assessment of going concern, the Board has reviewed a number of different scenarios over the 12-month period from the date of signing of these financial statements. These scenarios include a severe, but realistically possible, scenario which includes the following key assumptions:

• A reduction in occupancy, reflecting weaker customer demand for office space.
• A reduction in the pricing of new lettings, resulting in a reduction in average rent per sq. ft..
• Elevated levels of counterparty risk, with bad debt significantly higher than pre-pandemic levels.
• Continued elevated levels of cost inflation.
• Further increases in SONIA rates impacting the cost of variable rate borrowings.
• Estimated rental value reduction in-line with the decline in average rent per sq. ft. and outward movement in investment yields resulting in a lower property valuation.

The appropriateness of the going concern basis is reliant on the continued availability of borrowings, sufficient liquidity and compliance with loan covenants. All borrowings require compliance with LTV and Interest Cover covenants. As at the tightest test date in the scenarios modelled, the Group could withstand a reduction in Net Rental Income of 12% compared to the March 2025 Net Rental Income and a fall in the asset valuation of 37% compared to 31 March 2025 before these covenants are breached, assuming no mitigating actions are taken.

As at 31 March 2025, the Company had significant headroom with £260m of cash and undrawn facilities. The majority of the Group’s debt is long-term fixed-rate committed facilities comprising a £300m green bond, £300m of private placement notes, a £65m secured loan facility and an £80m term loan. Shorter-term liquidity and flexibility is provided by floating-rate bank facilities which comprise of £335m of sustainability-linked revolving credit facilities (RCFs) made up of £135m which was renewed in November 2024 to November 2028 and £200m which was renewed in May 2025 at the current rate to June 2029. Both facilities include the potential to be extended by a further two years subject to lender consent. The £135m has the option to increase the facility amount by up to £120m and the £200m RCF has the option to increase the facility amount by up to £100m, both subject to lender consent. For the full period of assessment under the scenario tested, the Group maintains sufficient headroom in its cash and loan facilities. Consequently, the Directors have a reasonable expectation that the Group and Company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore the financial statements have been prepared on a going concern basis.

Consideration of climate change

In preparing the financial statements, the Directors have considered the impact of climate change, particularly in the context of the risks identified in the TCFD disclosure on pages 99 to 106 this year. There has been no material impact identified on the financial reporting judgements and estimates. In particular, the Directors considered the impact of climate change in respect of the following areas:

• the potential impact on the valuation of our investment properties due to transition risks;
• going concern and viability of the Group over the next three years; and
• the capital expenditure required to upgrade our assets’ EPC ratings and deliver our net zero targets.

Whilst there is currently minimal medium-term impact expected from climate change, the Directors are aware of the ever-changing risks attached to climate change and will regularly assess these risks against judgements and estimates made in the preparation of the Group’s financial statements.

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246 Workspace Group PLC Annual Report and Accounts 2025

Strategic Report | Our Governance | Financial Statements | Additional Information

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NEW ACCOUNTING STANDARDS, AMENDMENTS AND GUIDANCE

a) During the year to 31 March 2025 the Group adopted the following accounting standards and guidance:

• IAS 1 (amended) Classification of Liabilities as Current or Non-Current; Non-Current Liabilities with Covenants; Deferral of Effective Date Amendment
• IAS 7 and IFRS 7 Disclosures – Supplier Finance Arrangements
• IFRS 16 (amended) Lease Liability in a Sale and Leaseback

There was no material impact from the adoption of these accounting standards and amendments on the financial statements.

b) The following accounting standards and guidance are not yet effective but are not expected to have a significant impact on the Group’s financial statements or result in changes to presentation and disclosure only. They have not been adopted early by the Group:

• IAS 21 (amended) Lack of Exchangeability
• IFRS 9 and IFRS 7 (amended) Amendments to the Classification and Measurement of Financial Instruments
• IFRS 18 Presentation and Disclosure in Financial Statements
• IFRS 19 Subsidiaries without Public Accountability: Disclosures

SIGNIFICANT JUDGEMENTS AND CRITICAL ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles requires the use of estimates and judgements that affect the reported amounts of assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on management’s best knowledge of the amount, event or actions, actual results ultimately may differ from those estimates.

The Group’s material accounting policies are stated below. Not all of these accounting policies require management to make subjective or complex judgements or significant estimates. The following is intended to provide an understanding of the significant estimates within the accounting policies that management consider critical because of the assumptions or estimation involved in their application and their impact on the consolidated financial statements.

Critical Estimate: Investment property valuation

The Group uses the valuation performed by its independent valuer as the fair value of its investment properties. The valuation is based upon the key external assumptions of estimated rental values (ERV) and market-based yields. Whilst occupancy is one of several indicators considered in arriving at the appropriate ERV, it is calculated at the valuation date based on actual vacant units at that time and is therefore not subject to material estimation uncertainty. With regard to redevelopments and refurbishments, future development costs and an appropriate discount rate are also used. In determining fair value, the valuers make reference to market evidence and recent transaction prices for similar properties. Management consider the significant assumptions to the valuation of investment properties to be estimated rental values and market-based yields. Sensitivities on these assumptions are provided in note 10.

MATERIAL ACCOUNTING POLICIES

The material accounting policies adopted in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all years presented unless stated otherwise.

Basis of consolidation

The consolidated financial statements include the financial statements of the Company and all its subsidiary undertakings up to 31 March 2025. Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group until the date that control ceases. A list of subsidiaries has been disclosed in note 27. Inter-company transactions, balances and unrealised gains from intra-group transactions are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

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247 Workspace Group PLC Annual Report and Accounts 2025

Strategic Report | Our Governance | Financial Statements | Additional Information

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NOTES TO THE FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

Investment properties

Investment properties are those properties owned or leased by the Group that are held either to earn rental income or for capital appreciation, or both, and are not occupied by the Company or subsidiaries of the Group. Investment property is measured initially at cost, including related transaction costs. After initial recognition, investment property is held at fair value based on a valuation by an independent professional external valuer at each reporting date. The valuation methods and key assumptions applied are explained in note 10. Changes in fair value of investment property at each reporting date are recorded in the consolidated income statement.# Investment Properties

Investment properties acquired under leases are capitalised at the lease’s commencement at the lower of the fair value of the leased property and the net present value of the minimum lease payments. The investment properties acquired under leases are subsequently carried at fair value plus an adjustment for the carrying amount of the lease obligation. The corresponding rental obligations, net of finance charges, are included in current and non-current borrowings. Each lease payment is allocated between liability and finance charges so as to achieve a constant rate on the outstanding finance balance. The interest element of the finance cost is charged to the consolidated income statement.

Properties are treated as acquired at the point which the Group assumes the significant risks and rewards of ownership and are treated as disposed when they are transferred outside of the Group’s control. Existing investment properties which undergo redevelopment and refurbishment for continued future use remain as investment property where the purpose of holding the property continues to meet the definition of investment property as defined above. Subsequent expenditure is charged to the asset’s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Group, and the cost of each item can be reliably measured. Certain internal staff costs directly attributable to capital/redevelopment projects are capitalised. All other repairs and maintenance costs are charged to the consolidated income statement during the period in which they are incurred. Capitalised interest on refurbishment/redevelopment expenditure is added to the asset’s carrying amount. Capitalised borrowing costs are calculated by reference to the actual interest rate payable on borrowings or, if financed out of general borrowings, by reference to the average rate payable on funding the assets employed by the Group and applied to the direct redevelopment expenditure. Interest is capitalised from the date of commencement of the redevelopment activity until the date when all the activities necessary to prepare the asset for its intended use are substantially complete.

Investment properties are recognised as ‘assets held for sale’ when it is considered highly probable that sale completion will take place within 12 months. This is assumed when the property has been actively marketed for a buyer, supported by either the exchange of a contract or agreement of terms with a buyer by the balance sheet date and it is highly probable that its carrying amount will be recovered within one year.

Income from the sale of assets is recognised when the control has been transferred to the buyer. In the case of sales of properties this is generally taken on completion of the contract. In the case of a part disposal agreement, the part of the asset being disposed will be derecognised from investment property when completion is reached or when a lease agreement is signed (i.e. when the risks and rewards of this part of the site transfer to the developer). Profit or loss on disposal is calculated as the consideration receivable (net of costs) less the latest valuation (net book value) and is shown in profit/loss on disposal of assets. Consideration can take the form of cash, new commercial buildings and a right to future overage (generally being a share in the proceeds of any future sale of the residential development to be constructed by the developer). Revenue is recognised in the period when all relevant criteria in IFRS 15 are met under the five-step model. Consideration (including overage) is measured at the fair value of the consideration received/ receivable. Commercial property to be received is fair valued as described in note 10 and is included in investment property. Changes in fair value are recognised through the consolidated income statement in accordance with IAS 40. Overage is only recognised once an agreement has been signed with a residential developer. Overage represents a financial asset and is designated as a financial asset at fair value through profit or loss upon initial recognition. The carrying value of overage is assessed at each period end and changes in fair value are taken to other income/expenses.

Acquisitions

An acquisition is recognised when the control has been transferred, usually on completion of the transaction. The acquisition method measures assets based on purchase price, which is allocated to the property assets on a fair value basis, and includes directly related acquisition costs. Business combinations are accounted for using the acquisition method. Any gain or bargain purchase or acquisition-related costs are recognised in the consolidated income statement.

Intangible Assets

Intangible assets are stated at historical cost, less accumulated amortisation. Acquired on-premise computer software licences and external costs of implementing or developing computer software programmes and websites are capitalised. These costs are amortised over the asset’s estimated useful life of five years on a straight-line basis. Costs associated with maintaining computer software programmes including Software as a Service (‘SaaS’) are recognised as an expense as they fall due.

248 Workspace Group PLC Annual Report and Accounts 2025

Strategic Report

Our Governance

Financial Statements

Additional Information

NOTES TO THE FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 MARCH 2025

Property, Plant and Equipment

Equipment and fixtures are stated at historical purchase cost less accumulated depreciation and impairment. Historical cost includes the original purchase price of the asset and the costs attributable to bringing the asset to working condition for its intended use. Subsequent expenditure is charged to the asset’s carrying amount or recognised as a separate asset only when it is probable that future economic benefits associated with the expenditure will flow to the Group and the cost of each item can be reliably measured. All other repairs and maintenance costs are charged to the consolidated income statement during the period in which they are incurred. Depreciation is provided using the straight-line method to allocate the cost less estimated residual value over the assets’ estimated useful lives which range from four to ten years. The assets’ residual values and useful lives are reviewed and adjusted, if appropriate, at least at each financial year end. An asset’s carrying amount is written down immediately to its recoverable amount if its carrying amount is greater than its estimated recoverable amount.

Other Investments

Investments in unlisted shares are accounted for under IFRS 9 at fair value, using a valuation multiple and financial information. Changes in fair value are shown in the consolidated statement of comprehensive income.

Trade and Other Receivables

Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost less provision for impairment based on the expected credit loss, which uses a lifetime expected loss allowance for all trade receivables based on the individual occupier’s circumstance. The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows. The provision is recorded in the consolidated income statement. Deferred consideration on the disposal of investment properties is included within trade and other receivables. It is fair valued on recognition and at each year end with any movement taken to other income/expenses.

Trade and Other Payables

Trade and other payables are initially recognised at fair value and subsequently held at amortised cost.

Cash and Cash Equivalents

Cash is represented by cash in hand, restricted cash in the form of tenants’ deposit deeds and deposits held on call with banks and money market funds. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. Bank overdrafts are included in current liabilities but within cash and cash equivalents for the purpose of the consolidated cash flow statement.

Borrowings

Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost, with any difference between the initial amount (net of transaction costs) and the redemption value being recognised in the income statement over the period of the borrowings, using the effective interest method, except for interest capitalised on redevelopments.

Derivative Financial Instruments and Hedge Accounting

The Group enters into derivative transactions in order to manage its exposure to interest rate risks. Financial derivatives are recorded at fair value calculated by valuation techniques based on market prices, estimated future cash flows and forward interest rates. The Group applies hedge accounting for certain derivatives that are designated and effective as hedges of future cash flows (cash flow hedges). The Group documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. The fair values of various derivative instruments used for hedging purposes are disclosed in note 16(e). Movements on the hedging reserve in other comprehensive income are shown in note 21.# NOTES TO THE FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 MARCH 2025

Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker is the person or group that allocates resources to and assesses the performance of the operating segments of an entity. The Group has determined that its chief operating decision maker is the Executive Committee of the Company. As at 31 March 2025, the Group considers that it has only one operating segment, being a single portfolio of commercial property providing business accommodation for rent in and around London.

Revenue recognition

Revenue comprises rental income, service charges and other sums receivable from the Group’s investment properties. Other sums comprise supplies of utilities, premia associated with surrender of tenancies, commissions, fees and other sundry income. All the Group’s properties are leased out under operating leases and are included in investment property in the consolidated balance sheet. In accordance with IFRS 16, rental income from leases is recognised in the consolidated income statement on a straight-line basis over the lease term. Rent received in advance is deferred in the consolidated balance sheet and recognised in the period to which it relates. If the Group provides significant incentives to its customers the incentives are recognised over the lease term on a straight-line basis. Service charges and other sums receivable from tenants are recognised on an accruals basis by reference to the stage of completion of the relevant service or transactions at the reporting date. These services generally relate to a 12-month period.

Direct costs

Direct costs comprise service charges and other costs directly recoverable from tenants and non-recoverable costs directly attributable to investment properties and other revenue streams.

Exceptional items

Exceptional items are those items that, in the Directors’ view, are required to be separately disclosed by virtue of their size or incidence and the nature of the costs being one off to enable a full understanding of the Group’s financial performance.

Share-based payments

The Group operates a number of share schemes under which the Group receives services from employees as consideration for equity instruments of the Company. The fair value of the employee services received in exchange for the grant of share awards and options is recognised as an expense over the vesting period. Fair value is measured by the use of Monte-Carlo valuation and Black-Scholes modelling techniques. In valuing equity-settled transactions, assessment is made of any vesting conditions to categorise these into market performance conditions, non-market performance conditions and service conditions.

Pensions

The Group operates a defined contribution pension scheme. Contributions are charged to the consolidated income statement on an accruals basis.

Taxation

Current income tax is tax payable on the taxable income for the year and any prior year adjustment, and is calculated using tax rates that are relevant to the financial year. Deferred tax is provided in full on temporary differences between the tax base of an asset or liability and its carrying amount in the balance sheet. Deferred tax is determined using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised when it is probable that taxable profits will be available against which the deferred tax asset can be utilised.

Compliance with the Real Estate Investment Trust (‘REIT’) taxation regime

The Group is a REIT and is thereby exempt from tax on both rental profits and chargeable gains from its UK property rental business. In order to retain REIT status, certain ongoing criteria must be maintained. The main criteria are as follows:
– at the start of each accounting period, the assets of the tax-exempt business must be at least 75% of the total value of the Group’s assets;
– at least 75% of the Group’s total profits must arise from the tax-exempt business; and
– at least 90% of the tax-exempt business earnings must be distributed.

Dividend distributions

Final dividend distributions to the Company’s shareholders are recognised as a liability in the Group’s financial statements in the period in which the dividends are approved, while interim dividends are recognised when paid.

1. ANALYSIS OF NET RENTAL INCOME AND SEGMENTAL INFORMATION

	2025		2025	2024		2024
	Direct	Net	rental	Direct	Net	rental
	Revenue	costs 1	income	Revenue	costs 1	income
	£m	£m	£m	£m	£m	£m
Rental income	144.9	(6.7)	138.2	145.0	(4.9)	140.1
Service charges	33.2	(37.4)	(4.2)	32.6	(37.5)	(4.9)
Empty rates and other non-recoverable costs	–	(11.5)	(11.5)	–	(10.2)	(10.2)
Services, fees, commissions and sundry income	7.1	(7.5)	(0.4)	6.7	(5.5)	1.2
	185.2	(63.1)	122.1	184.3	(58.1)	126.2

1. There was one property within the current period (prior period: two) that were non-rent producing. Direct costs relating to investment properties that did not generate any rental income were nil (2024: nil). Included within direct costs for rental income is a charge of £1.0m (2024: £0.8m) for expected credit losses in respect of receivables from customers in the period. All of the properties within the portfolio are geographically close to each other and have similar economic features and risks. Management information utilised by the Executive Committee to monitor and review performance is presented as one portfolio. As a result, for the year ended 31 March 2025, management have determined that the Group operates a single operating segment providing business accommodation for rent in and around London.

2. OPERATING PROFIT/(LOSS)

The following items have been charged in arriving at operating profit/(loss):

	2025 £m	2024 £m
Depreciation 1 (note 11)	1.4	1.7
Staff costs (including share-based payment costs) 1 (note 5)	31.9	30.5
Repairs and maintenance expenditure on investment properties	5.3	3.7
Trade receivables impairment (note 13)	1.0	0.8
Amortisation of intangibles 2	1.5	0.6
Audit fees payable to the Company’s Auditor	0.6	0.8

1. Charged to direct costs and administrative expenses based on the underlying nature of the expenses.
2. During the year the amortisation charge was expensed to administrative costs and other expenses following a change in the expected useful life of the assets (2024: amortisation charge was expensed to administrative costs).

Auditor’s remuneration: services provided by the Company’s Auditor and its associates

	2025 £000	2024 £000
Audit fees:
Audit of Parent Company and consolidated financial statements	457	507
Audit of subsidiary financial statements	46	110
	503	617
Fees for other services:
Audit-related assurance services 1	67	97
Total fees payable to Auditor	570	714

1. Audit-related assurance services consist of £67k for half year review (2024: £97k).

	2025 £m	2024 £m
Total administrative expenses are analysed below:
Staff costs	13.8	14.8
Equity-settled share-based payments	2.4	3.1
Cash-settled share-based payments	0.2	0.2
Other	6.9	7.2
Total administrative expenses	23.3	25.3

3(a). LOSS ON DISPOSAL OF INVESTMENT PROPERTIES AND ASSETS HELD FOR SALE

	2025 £m	2024 £m
Proceeds from sale of investment properties (net of sale costs)	38.4	12.3
Proceeds from sale of assets held for sale (net of sale costs)	40.4	96.2
Book value at time of sale	(80.3)	(110.8)
Loss on disposal	(1.5)	(2.3)

3(b). OTHER EXPENSES

	2025 £m	2024 £m
Other expenses	(3.6)	(1.2)

Other expenses include exceptional one-off costs relating to the replacement of our finance and property management system and CRM system of £2.7m (2024: £1.2m), which brings the cumulative spend to date to £5.7m with a forecast spend in the next financial year of £1.2m in relation to the CRM system with an expected go live date in the second half of the year. There are also one-off costs relating to the new CEO appointed in the year of £0.9m (2024: £nil). These costs are outside the Group’s normal trading activities.

4.# NOTES TO THE FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

4. NET FINANCE COSTS

	2025	2024
£m	£m	£m
Interest payable on bank loans and overdrafts	(12.8)	(15.0)
Interest payable on other borrowings	(19.3)	(19.3)
Amortisation of issue costs of borrowings	(1.8)	(1.7)
Interest payable on leases	(2.1)	(2.1)
Interest capitalised on property refurbishments (note 10)	3.4	3.0
Interest receivable	0.6	0.2
Total net finance costs	(32.0)	(34.9)

All finance costs have been calculated in accordance with IFRS 9, re-estimating the cash flows based on the original effective interest rate with any adjustment being taken through the consolidated income statement, with the exception of interest payable on leases which is calculated in accordance with IFRS 16.

5. EMPLOYEES AND DIRECTORS

£m	2025	2024
Staff costs for the Group during the year were:
Wages and salaries	27.5	26.2
Social security costs	3.2	3.4
Other pension costs (note 24)	1.4	1.3
Equity-settled share-based costs (note 23)	2.6	3.1
	34.7	34.0
Less costs capitalised	(2.8)	(3.5)
	31.9	30.5

Number	2025	2024
The monthly average number of people employed during the year was:
Head office staff (including Directors)	173	166
Estates and property management staff	162	152
	335	318

The emoluments and pension benefits of the Directors are determined by the Remuneration Committee of the Board and are set out in detail in the Directors’ Remuneration Report on pages 192 to 230. Total Directors’ emoluments for the financial year were £2.4m (2024: £2.9m), comprising of £2.1m (2024: £2.2m) of Directors’ remuneration, £0.3m (2024: £0.6m) gain on exercise of share options and £0.1m (2024: £0.1m) of cash contributions in lieu of pension in respect of three Directors (2024: two).

6. TAXATION

£m	2025	2024
Current tax:
UK corporation tax	–	–
Adjustments to tax in respect of previous periods	–	–
	–	–
Deferred tax:
On origination and reversal of temporary differences	–	(0.3)
	–	(0.3)
Total taxation credit	–	(0.3)

The tax on the Group’s profit/(loss) for the year differs from the standard applicable corporation tax rate in the UK of 25% (2024: 25%). The differences are explained below:

£m	2025	2024
Profit/(loss) before taxation	5.4	(192.8)
Tax at standard rate of corporation tax in the UK of 25% (2024: 25%)	1.4	(48.2)
Effects of:
REIT exempt income	(17.2)	(19.2)
Changes in fair value not subject to tax as a REIT	14.3	63.8
Share-based payment adjustments	0.2	0.5
Unrecognised losses carried forward	1.0	2.7
Other non-taxable expenses	0.3	0.1
Total taxation credit	–	(0.3)

The Group is a Real Estate Investment Trust (‘REIT’). The Group’s UK property rental business (both income and capital gains) is exempt from UK corporation tax. The Group estimates that as the majority of its future profits will be exempt from tax, future tax charges are likely to be low. Profits arising from any residual business activities (e.g. trading activities and interest income), after the utilisation of tax losses, are subject to corporation tax at the main rate of 25% for the period. The Group currently has an unrecognised asset in relation to tax losses from the non-REIT business carried forward of £8.6m (2024: £8.9m) calculated at a corporation tax rate of 25% (2024: 25%).

252 Workspace Group PLC Annual Report and Accounts 2025
Strategic Report Our Governance Financial Statements Additional Information

NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR ENDED 31 MARCH 2025

7. DIVIDENDS

Payment date	Per share	£m	£m
		2025	2024
For the year ended 31 March 2023:
Final dividend	August 2023	17.4p	–
For the year ended 31 March 2024:
Interim dividend	February 2024	9.0p	–
Final dividend	August 2024	19.0p	36.5
For the year ended 31 March 2025:
Interim dividend	February 2025	9.4p	18.0
Dividends for the year		54.5	50.6
Timing difference on payment of withholding tax		1.8	0.1
Dividends cash paid		56.3	50.7

The Directors are proposing a final dividend in respect of the financial year ended 31 March 2025 of 19.0 pence per ordinary share, which will absorb an estimated £36.5m of retained earnings and cash. If approved by the shareholders at the AGM, it will be paid on 1 August 2025 to shareholders who are on the register of members on 4 July 2025. The dividend will be paid as a REIT Property Income Distribution (‘PID’) net of withholding tax where appropriate.

8. EARNINGS PER SHARE (Restated)

Earnings used for calculating earnings per share:	£m	£m	£m
	2025	2024	2024
Basic and diluted earnings	5.4	(192.5)	(192.5)
Decrease in fair value of investment properties	55.9	251.2	251.2
Impairment of assets held for sale	0.4	4.1	4.1
Loss on disposal of investment properties	1.5	2.3	2.3
Other expenses (note 3(b))	3.6	1.2	–
EPRA earnings	66.8	66.3	65.1
Adjustment for non-trading items:
Other expenses (note 3(b))	–	–	1.2
Taxation	–	(0.3)	(0.3)
Trading profit after interest	66.8	66.0	66.0

Earnings have been adjusted to derive an earnings per share measure as defined by the European Public Real Estate Association (‘EPRA’) and an adjusted underlying earnings per share measure. (Restated)

Number of shares used for calculating earnings per share:	Number	Number	Number
	2025	2024	2024
Weighted average number of shares (excluding own shares held in trust)	191,997,294	191,676,994	191,676,994
Dilution due to share option schemes	1,770,841	1,537,856	1,537,856
Weighted average number of shares for diluted earnings per share	193,768,135	193,214,850	193,214,850

In pence:

	2025	2024	2024
		(Restated)
Basic earnings/(loss) per share	2.8p	(100.4p)	(100.4p)
Diluted earnings/(loss) per share	2.8p	(100.4p)	(100.4p)
EPRA earnings per share	34.8p	34.6p	34.0p
Diluted EPRA earnings per share	34.5p	34.3p	34.0p
Adjusted underlying earnings per share ¹	34.5p	34.1p	34.1p
Adjusted underlying earnings per share (basic)	34.8p	34.4p	34.4p

1. Adjusted underlying earnings per share is calculated by dividing trading profit after interest by the diluted weighted average number of shares of 193,768,135 (2024: 193,214,850).
2. The EPRA Best Practice Guidelines were updated in 2024, the new guidelines have been adopted and applied for the year ended 31 March 2025. To ensure comparability, EPRA earnings as at 31 March 2024 have been restated in line with the new guidelines. The key change in the guidelines is to include an additional adjustment to EPRA earnings for non-operating and exceptional items. Other expenses (see note 3(b)) are now considered to be adjusting items for this reason. The diluted loss per share for the period to 31 March 2024 has been restricted to a loss of 100.4p per share, as the loss per share cannot be reduced by dilution in accordance with IAS 33 Earnings per Share.

253 Workspace Group PLC Annual Report and Accounts 2025
Strategic Report Our Governance Financial Statements Additional Information

NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR ENDED 31 MARCH 2025

9. NET ASSETS PER SHARE AND TOTAL ACCOUNTING RETURN

Number of shares used for calculating net assets per share:	Number	Number
	2025	2024
Shares in issue at year end	192,143,004	191,910,392
Less own shares held in trust at year end	(57,524)	(139,649)
Dilution due to share option schemes	1,871,843	1,637,759
Number of shares for calculating diluted adjusted net assets per share	193,957,323	193,408,502

EPRA Net Asset Value Metrics

The Group measures financial position with reference to EPRA Net Tangible Assets (‘NTA’), Net Reinvestment Value (‘NRV’) and Net Disposal Value (‘NDV’).

	March 2025	March 2025	March 2025	March 2024	March 2024	March 2024
	EPRA NRV	EPRA NTA	EPRA NDV	EPRA NRV	EPRA NTA	EPRA NDV
£m	£m	£m	£m	£m	£m	£m
IFRS Equity attributable to shareholders	1,502.2	1,502.2	1,502.2	1,548.9	1,548.9	1,548.9
Fair value of derivative financial instruments	0.1	0.1	–	(0.2)	(0.2)	–
Intangibles per IFRS balance sheet	–	(1.1)	–	–	(2.2)	–
Excess of book value of debt over fair value	–	–	39.9	–	–	59.3
Purchasers’ costs	161.0	–	–	166.4	–	–
EPRA measure	1,663.3	1,501.2	1,542.1	1,715.1	1,546.5	1,608.2
EPRA measure per share	£8.58	£7.74	£7.95	£8.87	£8.00	£8.32

Total accounting return

	2025	2024
£	£	£
Opening EPRA net tangible assets per share (A)	8.00	9.27
Closing EPRA net tangible assets per share	7.74	8.00
Decrease in EPRA net tangible assets per share	(0.26)	(1.27)
Ordinary dividends paid in the year	0.28	0.26
Total return (B)	0.02	(1.01)
Total accounting return (B/A)	0.3%	(10.9%)

The total accounting return for the year comprises the movement in absolute EPRA net tangible assets per share plus dividends paid in the year as a percentage of the opening EPRA net tangible assets per share. The total return for the year ended 31 March 2025 was 0.3% (31 March 2024: – 10.9%).

10. INVESTMENT PROPERTIES

	2025	2024
£m	£m	£m
Balance at 1 April	2,408.5	2,643.3
Capital expenditure	54.3	68.4
Capitalised interest on refurbishments (note 4)	3.4	3.0
Disposals during the year	(38.5)	(12.5)
Change in fair value of investment properties	(55.9)	(251.2)
Disposed properties tenant incentives recognised in advance under IFRS 16	0.2	1.4
Less: Classified as assets held for sale	(20.3)	(43.9)
Balance at 31 March	2,351.7	2,408.5

Investment properties represent a single class of property, being business accommodation for rent in and around London. Investment properties include buildings with a carrying amount of £291.9m (2024: £317.2m) for which there are lease obligations of £34.7m (2024: £34.7m). Investment property lease commitment details are shown in note 17. Disposed properties tenant incentives relate to disposed properties during the year, where there were tenant lease incentives accounted for under IFRS 16. Capitalised interest is included at a rate of capitalisation of 6.7% (2024: 6.8%). The total amount of capitalised interest included in investment properties is £21.5m (2024: £18.1m). The change in fair value of investment properties is recognised in the consolidated income statement.# NOTES TO THE FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

10. INVESTMENT PROPERTIES CONTINUED

Valuation

The Group’s investment properties are held at fair value and were revalued at 31 March 2025 by the external valuer, CBRE Limited, a firm of independent qualified valuers, in accordance with the Royal Institution of Chartered Surveyors Valuation – Global Standards. All the properties are revalued at period end regardless of the date of acquisition.

In line with IFRS 13, all investment properties are valued on the basis of their highest and best use. For like-for-like properties, their current use equates to the highest and best use. For properties undergoing refurbishment or redevelopment, most of these are still being used for business accommodation in their current state. However, the valuation at the balance sheet date includes the impact of the potential refurbishment and redevelopment as this represents the highest and best use.

The Executive Committee and the Board both conduct a detailed review of the property valuation to assess whether appropriate assumptions have been applied and that valuations are appropriate. Meetings are held with the valuers to discuss and challenge the valuations, to confirm that they have considered all relevant information.

The valuation of like-for-like properties (which are not undergoing significant refurbishment or redevelopment) is based on the income capitalisation method which applies market-based yields to the Estimated Rental Values (‘ERVs’) of each of the properties. Yields are based on current market expectations depending on the location and use of the property. ERVs are based on estimated rental potential considering current rental streams and market comparatives whilst also considering the occupancy and timing of rent reviews at each property. Although occupancy and rent review timings are known, and there is market evidence for transaction prices for similar properties, there is still a significant element of estimation and judgement in estimating ERVs. The ERVs include assumptions about future occupancy levels, these are primarily derived from current occupancy levels adjusted as considered necessary by the valuer. As a result of adjustments made to market observable data, the significant inputs are deemed unobservable under IFRS 13.

When valuing properties where Workspace is carrying out a major refurbishment, the residual value method is used. The completed value of the refurbishment is determined as for like-for-like properties above. This is then adjusted for costs to complete and developers’ profit margin. A discount factor is applied to reflect the time period to complete construction and make allowance for construction and market risk to arrive at the residual value of the property. The discount factor used is the property yield that is also applied to the estimated rental value to determine the value of the completed building. Other risks such as unexpected time delays relating to planned capital expenditure are assessed on a project-by-project basis, looking at market comparable data where possible and the complexity of the proposed scheme.

Redevelopment properties are also valued using the residual value method. The proposed redevelopment which would be undertaken by a residential developer is valued based on the market value for similar sites and then adjusted for costs to complete, developer’s profit margin and a time discount factor. Allowance is also made for planning and construction risk depending on the stage of the redevelopment. If a contract is agreed for the sale/redevelopment of the site, the property is valued based on agreed consideration.

For all methods, the valuer is provided with information on tenure, letting, town planning and the repair of the buildings and sites.

The reconciliation of the valuation report total to the amount shown in the consolidated balance sheet as non-current assets, investment properties, is as follows:

	2025	2024
	£m	£m
Total per CBRE valuation report	2,367.8	2,446.5
Deferred consideration on sale of property	(0.6)	(0.6)
Head leases treated as leases under IFRS 16	34.7	34.7
Tenant incentives recognised under IFRS 16	(5.0)	(6.4)
Less: Reclassified as assets held for sale	(45.2)	(65.7)
Total investment properties per balance sheet	2,351.7	2,408.5

The Group’s investment properties are carried at fair value and under IFRS 13 are required to be analysed by level depending on the valuation method adopted. The different valuation methods are as follows:

• Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.
• Level 2 – Use of a model with inputs (other than quoted prices included in Level 1) that are directly or indirectly observable market data.
• Level 3 – Use of a model with inputs that are not based on observable market data.

As noted in the significant judgements and critical estimates section, property valuations are complex and involve data which is not publicly available and involve a degree of judgement. All the investment properties are classified as Level 3, due to the fact that one or more significant inputs to the valuation are not based on observable market data.

CBRE have made enquiries to ascertain any sustainability factors which are likely to impact on value, consistent with the scope of their terms of engagement. Sustainability encompasses a wide range of physical, social, environmental, and economic factors that can affect the value of an asset, even if not explicitly recognised. This includes key environmental risks; such as flooding, energy efficiency, climate, design, legislation and management considerations – as well as current and historic land use. Where CBRE recognise the value impacts of sustainability, they reflect their understanding of how market participants include sustainability factors in their decisions and the consequential impact on market valuations.

The following table summarises the valuation techniques and inputs used in the determination of the property valuation at 31 March 2025.

Property category	Valuation £m	technique	ERVs – per sq. ft. Range	Weighted average	Equivalent yields Range	Weighted average
Like-for-like	1,755.8	A	£24-£84	£51	5.9%-8.6%	6.8%
Completed projects	167.8	A	£25-£55	£37	4.9%-7.6%	6.9%
Refurbishments	322.6	A/B	£23-£75	£36	5.3%-10.2%	7.2%
South East Office	75.8	A	£25-£35	£29	8.4%-12.5%	10.3%
Tenant incentives	(5.0)	N/A	–	–	–	–
Head leases	34.7	N/A	–	–	–	–
Total	2,351.7

A = Income capitalisation method. B = Residual value method. See appendices for breakdown of properties by category.

A key unobservable input for redevelopments at planning stage and refurbishments is developer’s profit. The range is 0%–15% with a weighted average of 3%. Costs to complete are not considered to be a significant unobservable input for refurbishments due to the high percentage of costs that are fixed.

Sensitivity analysis: A +/- 10% movement in ERVs or a +/- 25 basis points movement in yields would result in the following increase/decrease in the valuation.

	+/- 10% in ERVs	+/- 25 bps in yields
Like-for-like	+176/-176	-62/+67
Completed projects	+17/-17	-6/+6
Refurbishments	+37/-37	-13/+14
South East Office	+8/-8	-2/+2

The following table summarises the valuation techniques and inputs used in the determination of the property valuation at 31 March 2024.

Property category	Valuation £m	technique	ERVs – per sq. ft. Range	Weighted average	Equivalent yields Range	Weighted average
Like-for-like	1,833.2	A	£24-£81	£49	4.9%-8.4%	7.0%
Completed projects	137.4	A	£25-£53	£35	6.6%-7.2%	7.3%
Refurbishments	318.5	A/B	£24-£75	£38	5.0%-9.9%	7.3%
Redevelopments	18.9	A/B	£18-£30	£19	4.8%-8.7%	7.4%
South East Office	72.2	A	£25-£40	£30	8.0%-11.4%	10.4%
Tenant incentives	(6.4)	N/A	–	–	–	–
Head leases	34.7	N/A	–	–	–	–
Total	2,408.5

A = Income capitalisation method. B = Residual value method.

A key unobservable input for redevelopments at planning stage and refurbishments is developer’s profit. The range is 10%–19% with a weighted average of 15%. Costs to complete is a key unobservable input for redevelopments at planning stage with a range of £273-£416 per sq. ft. and a weighted average of £325 per sq. ft. Costs to complete are not considered to be a significant unobservable input for refurbishments due to the high percentage of costs that are fixed.

Sensitivity analysis: A +/- 10% movement in ERVs or a +/- 25 basis points movement in yields would result in the following increase/decrease in the valuation.

	+/- 10% in ERVs	+/- 25 bps in yields
Like-for-like	+183/-183	-63/+70
Completed projects	+14/-14	-5/+5
Refurbishments	+32/-32	-11/+12
Redevelopments	+2/-2	0/0
South East Office	+7/-7	-2/+2
## FOR THE YEAR ENDED 31 MARCH 2025

11. PROPERTY, PLANT AND EQUIPMENT

Equipment and fixtures
	£m
1 April 2023	12.5
Additions during the year	0.5
Disposals during the year	(4.8)
Balance at 31 March 2024	8.2
Additions during the year	1.9
Disposals during the year	(0.2)
Balance at 31 March 2025	9.9
Accumulated depreciation
1 April 2023	8.1
Charge for the year	1.7
Disposals during the year	(4.6)
Balance at 31 March 2024	5.2
Charge for the year	1.4
Disposals during the year	(0.1)
Balance at 31 March 2025	6.5
Net book amount at 31 March 2025	3.4
Net book amount at 31 March 2024	3.0

12. OTHER INVESTMENTS

The Group holds the following investments:

	2025 £m	2024 £m
2.0% of share capital of Wavenet Limited	3.3	3.2
	3.3	3.2

In accordance with IFRS 9 the shares in Wavenet Limited have been valued at fair value, resulting in £0.1m movement in the financial year (2024: £1.1m), recognised in the consolidated statement of comprehensive income.

13. TRADE AND OTHER RECEIVABLES

	2025 £m	2024 £m
Current trade and other receivables
Trade receivables	19.2	22.6
Less provision for impairment of receivables	(3.5)	(3.9)
Trade receivables – net	15.7	18.7
Prepayments, other receivables and accrued income	14.0	16.9
Deferred consideration on sale of investment properties	3.1	1.1
	32.8	36.7

Receivables at fair value

Included within deferred consideration on sale of investment properties is £0.6m (2024: £0.6m) of overage which is held at fair value through profit and loss. As the amounts receivable are expected within the following 12 months they have been classified as current receivables. The deferred consideration arising on the sale of investment properties relates to cash and overage. The overage has been fair valued by CBRE Limited using appropriate discount rates, and will be revalued on a regular basis. This is a Level 3 valuation of a financial asset, as defined by IFRS 13. The change in fair value recorded in the consolidated income statement was £nil (31 March 2024: £nil).

	2025 £m	2024 £m
Deferred consideration on sale of investment properties
Balance at 1 April	1.1	11.2
Cash received	–	(10.1)
Additions	2.0	–
Balance at 31 March	3.1	1.1

Receivables at amortised cost

The remaining receivables are held at amortised cost. There is no material difference between the above amounts and their fair values due to the short-term nature of the receivables. Trade receivables are impaired when there is evidence that the amounts may not be collectable under the original terms of the receivable. All the Group’s trade and other receivables are denominated in Sterling. Movements on the provision for impairment of trade receivables are shown below:

	2025 £m	2024 £m
Balance at 1 April	3.9	4.6
Increase in provision for impairment of trade receivables	1.0	0.8
Receivables written off during the year	(1.4)	(1.5)
Balance at 31 March	3.5	3.9

14. CASH AND CASH EQUIVALENTS

	2025 £m	2024 £m
Cash at bank and in hand	25.3	4.1
Restricted cash	7.4	7.5
	32.7	11.6

£7.2m (2024: £6.7m) of the restricted cash relates to tenants’ deposit deeds which represent returnable cash security deposits received from tenants which are held in ring-fenced bank accounts in accordance with the terms of the individual lease contracts. The remaining balance relates to restricted cash under terms of development projects’ funding.

15. TRADE AND OTHER PAYABLES

	2025 £m	2024 £m
Trade payables	6.8	7.4
Other tax and social security payable	3.2	4.8
Tenants’ deposit deeds	7.3	8.2
Tenants’ deposits	32.1	32.0
Accrued expenses	31.7	28.5
Deferred income – rent and service charges	11.1	12.1
	92.2	93.0

There is no material difference between the above amounts and their fair values due to the short-term nature of the payables.

16. BORROWINGS

(a) Balances

	2025 £m	2024 £m
Current
3.07% Senior Notes (unsecured)	79.9	–
Non-current
Bank loans (unsecured)	178.2	192.3
Other loans (secured)	64.3	64.1
3.07% Senior Notes (unsecured)	–	79.9
3.19% Senior Notes (unsecured)	119.9	119.9
3.6% Senior Notes (unsecured)	99.9	99.9
Green Bond (unsecured)	299.1	298.7
	761.4	854.8
Total borrowings	841.3	854.8

(b) Net debt

	2025 £m	2024 £m
Borrowings per (a) above	841.3	854.8
Adjust for:
Cost of raising finance unamortised	3.7	4.2
	845.0	859.0
Cash at bank and in hand (note 14)	(25.3)	(4.1)
Net debt	819.7	854.9

At 31 March 2025, the Group had £235.0m (2024: £141.0m) of undrawn bank facilities, a £2.0m overdraft facility (2024: £2.0m) and £25.3m of unrestricted cash (2024: £4.1m). The Group has a loan to value covenant applicable to the Bank Loans and Senior Debt Borrowings of 60%, Green Bond of 65% and Aviva Loan of 55%. Loan to value at 31 March 2025 was 34% (31 March 2024: 35%). The Group also has an interest cover covenant of 2.0x applicable to the Bank Loan and Senior Debt Borrowings, 1.75x applicable for the Green Bond and 2.25x applicable for the Aviva Loan. This is calculated as net rental income divided by interest payable on loans and other borrowings. At 31 March 2025 interest cover was 3.8x (31 March 2024: 3.7x).

(c) Maturity

	2025 £m	2024 £m
Repayable within one year	80.0	–
Repayable between one and two years	80.0	80.0
Repayable between two and three years	420.0	194.0
Repayable between three years and four years	200.0	420.0
Repayable between four years and five years	–	100.0
Repayable in five years or more	65.0	65.0
	845.0	859.0
Cost of raising finance	(3.7)	(4.2)
Total	841.3	854.8

(d) Interest rate and repayment profile

Principal at period end £m	Interest rate	Interest payable	Repayable
Current
Bank overdraft due within one year or on demand	–	Base + 2.25%	Variable
Private Placement Notes:
3.07% Senior Notes	80.0	3.07%	Half yearly
Non-current
Private Placement Notes:
3.19% Senior Notes	120.0	3.19%	Half yearly
3.6% Senior Notes	100.0	3.60%	Half yearly
Bank Loan – SONIA + 1.77%¹		Variable	December 2026
Bank Loan	100.0	SONIA + 1.82%¹	Variable
Bank Loan	80.0	SONIA + 1.80%¹	Half yearly
Other Loan (Secured)	65.0	4.02%	Quarterly
Green Bond	300.0	2.25%	Yearly
	845.0

¹ The base margin is dependent upon the LTV as reported in the client certificate, which is submitted twice a year. The base margin can be adjusted further by up to 4.5bps dependent upon achievement of three ESG-linked metrics.

(e) Derivative financial instruments

The Group uses a mixture of fixed rate and variable rate facilities to manage its interest rate exposure appropriately to provide operational and budget certainty. To manage the interest rate risk arising on variable rate debt, £100m of the debt has been swapped to fixed rate GBP using an interest rate swap. The hedged item is designated as the variability of the cash flows of the specific debt instrument arising from future changes in the SONIA rate, which is an eligible hedged item. Hedge effectiveness is assessed on critical terms (amount, interest rate, interest settlement dates, currency and maturity date). The critical terms of this hedging relationship perfectly matched at origination, so for the prospective assessment of effectiveness a qualitative assessment was performed. The interest rate swap creates an equal and opposite interest receipt and a fixed interest payment, therefore creating an exact offset for this transaction resulting in a net fixed interest payable. Potential sources of hedge ineffectiveness include significant change in the credit risk of either party or a reduction in the hedged item as such will impact the economic relationship between the fair value changes of the hedged item and the swap. The effects of the interest rate swap hedging relationship is as follows:

	2025	2024
Carrying amount of derivative	(0.1)	0.2
Change in fair value of designated hedging instrument	(0.3)	0.2
Notional amount £m	100	100
Rate payable (%)	4.285	4.285
Maturity	31 January 2026	31 January 2026
Hedge ratio	1:1	1:1

(f) Financial instruments and fair values

	2025 Book value £m	2025 Fair value £m	2024 Book value £m	2024 Fair value £m
Financial liabilities held at amortised cost
Bank loans	178.2	178.2	192.3	192.3
Other loans	64.3	61.5	64.1	61.6
Private Placement Notes	299.7	290.5	299.6	285.4
Lease obligations	34.7	34.7	34.7	34.7
Green Bond	299.1	271.2	298.7	256.1
	876.0	836.1	889.4	830.1
Financial assets/(liabilities) at fair value through other comprehensive income
Financial derivative	(0.1)	(0.1)	0.2	0.2
Other investments	3.3	3.3	3.2	3.2
	3.2	3.2	3.4	3.4
Financial assets at fair value through profit or loss
Deferred consideration (including overage)	3.1	3.1	1.1	1.1
	3.1	3.1	1.1	1.1

In accordance with IFRS 13, disclosure is required for financial instruments that are carried or disclosed in the financial statements at fair value. The fair values of all the Group’s bank loans and Private Placement Notes have been determined by reference to market prices and discounted expected cash flows at prevailing interest rates and are Level 2 valuations.# NOTES TO THE FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

16. BORROWINGS CONTINUED

The Green bond is listed on the Irish stock exchange and is measured at the quoted price using Level 1 valuations. There have been no transfers between levels in the year. The different levels of valuation hierarchy as defined by IFRS 13 are set out in note 10.

(g) Financial instruments by category

Assets	2025 £m	2024 £m
a) Assets at fair value through profit or loss
Deferred consideration (overage)	0.6	0.6
	0.6	0.6
b) Loans and receivables
Cash and cash equivalents	32.7	11.6
Trade and other receivables excluding prepayments	23.5	27.4
	56.2	39.0
c) Assets/(liabilities) at value through other comprehensive income
Financial derivative	(0.1)	0.2
Other investments	3.3	3.2
	3.2	3.4
Total	60.0	43.0

Liabilities	2025 £m	2024 £m
Other financial liabilities at amortised cost
Borrowings	841.3	854.8
Lease liabilities	34.7	34.7
Trade and other payables excluding non-financial liabilities	77.9	76.1
	953.9	965.6

1. Trade and other receivables exclude prepayments of £5.9m (2024: £5.0m), accrued income of £2.8m (2024: £3.7) and non-cash deferred consideration of £0.6m (2024: £0.6m).
2. Trade and other payables exclude other tax and social security of £3.2m (2024: £4.8m) and deferred income of £11.1m (2024: £12.1m).

260 Workspace Group PLC Annual Report and Accounts 2025
Strategic Report Our Governance Financial Statements Additional Information

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

16. BORROWINGS CONTINUED

(h) Changes in liabilities from financing activities

	Bank loans and borrowings £m	Lease liabilities £m
Balance at 1 April 2024	854.8	34.7
Changes from financing cash flows:
Proceeds from bank borrowings	341.5	–
Repayment of bank borrowings	(355.5)	–
Finance costs for new/amended borrowing facilities	(1.3)	–
Total changes from cash flows	(15.3)	–
Amortisation of issue costs of borrowing	1.8	–
Total other changes	1.8	–
Balance at 31 March 2025	841.3	34.7

	Bank loans and borrowings £m	Lease liabilities £m
Balance at 1 April 2023	908.9	34.7
Changes from financing cash flows:
Proceeds from bank borrowings	156.0	–
Repayment of bank borrowings	(211.0)	–
Finance costs for new/amended borrowing facilities	(0.8)	–
Total changes from cash flows	(55.8)	–
Amortisation of issue costs of borrowing	1.7	–
Total other changes	1.7	–
Balance at 31 March 2024	854.8	34.7

17. LEASE OBLIGATIONS

Lease liabilities are in respect of leased investment property. Minimum lease payments under leases fall due as follows:

	2025 £m	2024 £m
Within one year	2.1	2.1
Between one and five years	8.4	8.4
Between five and fifteen years	20.9	17.2
Beyond fifteen years	174.8	180.5
	206.2	208.2
Future finance charges on leases	(171.5)	(173.5)
Present value of lease liabilities	34.7	34.7

Following the adoption of IFRS 16, lease obligations are shown separately on the face of the balance sheet. The balance represents a non-current liability as the payment shown within one year of £2.1m (2024: £2.1m) is offset by future finance charges on leases of £2.1m (2024: £2.1m). All lease obligations are long leaseholds, therefore, the majority of the obligations fall beyond fifteen years.

261 Workspace Group PLC Annual Report and Accounts 2025
Strategic Report Our Governance Financial Statements Additional Information

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

18. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICY

The Group has identified exposure to the following financial risks:
– Market risk
– Credit risk
– Liquidity risk
– Capital risk management

The policies for managing each of these risks and the principal effects of these policies on the results for the year are summarised below:

(a) Market risk

Market risk is the risk that changes in market conditions will affect the Group’s interest rates. Borrowings at variable rates expose the Group to cash flow interest rate risk. Borrowings at fixed rates expose the Group to fair value interest rate risk. The Group finances its operations through a mixture of retained profits and borrowings. The Group borrows at both fixed and floating rates of interest. At 31 March 2025, 91% (2024: 89%) of Group borrowings were fixed. All transactions entered into are approved by the Board and are in accordance with the Group’s treasury policy. The Board also monitors variances on interest rates to budget and forecast rates to ensure that the risk relating to interest rates is being sufficiently safeguarded. As at year end, a reasonably possible interest rate movement of +/-1.0% would have increased or decreased net interest payable by £0.8m (2024: £0.9m). The interest cover covenant in relation to Group borrowings is a ratio of 2.0x and the Group targets a minimum cover of 2.5x. For the year ended 31 March 2025 interest cover was 3.8x. Interest cover is calculated as net rental income divided by interest payable on loans and other borrowings.

(b) Credit risk

The Group’s main financial assets are cash and cash equivalents, deposits with financial institutions and trade and other receivables. Credit risk is the risk of financial loss if a tenant or a counterparty to a financial instrument fails to meet its contractual obligations. The Group’s exposure to this principal risk relates to the receivables from tenants, deferred consideration on the sale of investment property and cash and cash equivalent balances held with counterparties. The Group’s exposure to credit risk in relation to receivables from tenants is influenced mainly by the characteristics of individual tenants occupying its rental properties. The Group has around 4,744 lettable units at 67 properties with overall occupancy of 79%. The largest 10 single tenants generate around 10.4% of net rent roll. As such, the credit risk attributable to individual tenants is relatively low. The Group’s credit risk in relation to tenants is further mitigated by requiring that tenants provide a deposit equivalent to three months’ rent on inception of lease as security against default. Total tenant deposits held are £39.4m (2024: £40.2m). The Group monitors aged debt balances and any potential bad debts every week, the information being reported to the Executive Committee every month as part of the performance monitoring process. Deferred consideration (cash and overage) on the sale of investment properties is contractual and valued regularly by the external valuer based on current and future market factors. Cash and cash equivalents and financial derivatives are held with major UK high street banks and strict counterparty limits are operated on deposits. The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was:

	2025 £m	2024 £m
Cash and cash equivalents (note 14)	32.7	11.6
Trade receivables – current (note 13)	15.7	18.7
Deferred consideration – current (note 13)	3.1	1.1
	51.5	31.4

(c) Liquidity risk

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach to managing liquidity is to target a minimum headroom on loan facilities of £50.0m, so as to have sufficient funds to meet financial obligations as they fall due. This is performed via a variety of methods including daily cash flow review and forecasting, monthly monitoring of the maturity profile of debt and the regular review of borrowing facilities in relation to the Group’s requirements and strategy. The Board reviews compliance with loan covenants which include agreed interest cover and loan to value ratios, alongside review of available headroom on loan facilities.

262 Workspace Group PLC Annual Report and Accounts 2025
Strategic Report Our Governance Financial Statements Additional Information

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

18. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICY CONTINUED

(c) Liquidity risk continued

To manage its liquidity effectively, the Group has an overdraft facility of £2.0m (2024: £2.0m), two revolving loan facilities totalling £335.0m (2024: £335.0m). At 31 March 2025 headroom excluding overdraft and cash was £235.0m (31 March 2024: £141.0m). The following is an analysis of the contractual undiscounted cash flows payable under financial liabilities, derivative financial instruments and trade and other payables existing at the balance sheet date. Contracted cash flows are based upon the loan balances and applicable interest rates payable on these at each year end.

31 March 2025

	Due within 1 year £m	Due between 1 and 2 years £m	Due between 2 and 3 years £m	Due beyond 3 years £m	Total contracted cash flows £m	Carrying amount £m
Financial liabilities
Private Placement Notes	300.0	88.4	7.4	125.0	102.9	323.7
Bank loan	100.0	6.2	6.2	6.2	104.1	122.7
Term loan	80.0	5.0	83.3	–	–	88.3
Green Bond	300.0	6.8	6.8	–	306.4	320.0
Other loans	65.0	2.6	2.6	2.6	70.5	78.3
Lease liabilities	34.7	2.1	2.1	2.1	199.9	206.2
Trade and other payables ¹	77.9	–	–	–	77.9	77.9
	957.6	108.4	108.4	442.3	477.4	1,217.1

31 March 2024

	Due within 1 year £m	Due between 1 and 2 years £m	Due between 2 and 3 years £m	Due beyond 3 years £m	Total contracted cash flows £m	Carrying amount £m
Financial liabilities
Private Placement Notes	300.0	9.9	88.3	7.4	227.2	332.8
Bank loan	125.0	4.4	4.4	–	131.1	139.9
Bank loan	69.0	4.8	4.8	–	69.2	78.8
Green Bond	300.0	6.8	6.8	6.8	306.3	326.7
Other loans	65.0	2.6	2.6	2.6	72.8	80.6
Lease liabilities	34.7	2.1	2.1	2.1	201.9	208.2
Trade and other payables ¹	76.1	–	–	–	76.1	76.1
	969.8	106.7	109.0	219.2	808.2	1,243.1

1. Trade and other payables exclude other tax and social security of £3.2m (2024: £4.8m) and deferred income of £11.1m (2024: £12.1m).
2. Excludes unamortised borrowing costs.

(d) Capital risk management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern, and monitor an appropriate mix of debt and equity financing.# NOTES TO THE FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

Equity comprises issued share capital, reserves and retained earnings as disclosed in the consolidated statement of changes in equity. Debt comprises the Green Bond, a secured loan, a Term Loan, two Revolving Credit Facilities from banks and Private Placement Notes less cash at bank and in hand. At 31 March 2025, Group equity was £1,502.2m (2024: £1,548.9m) and Group net debt (debt less cash at bank and in hand) was £819.7m (2024: £854.9m). Group gearing at 31 March 2025 was 55% (2024: 55%). The Group’s borrowings are all unsecured apart from £65.0m. The details of each loan and the covenants are disclosed in the borrowing note 16 and the loan covenants applicable to these borrowings are being met comfortably. Loan to value is calculated using the total CBRE investment property valuation (as per note 10) and the current net debt (as per note 16(b)). Our target is to maintain loan to value below 30%. This may from time-to-time be exceeded up to a maximum of 40% as steps are taken to reduce loan to value back below 30%. Under the terms of the debt agreements the covenants are calculated at the end of each annual and interim reporting period. There are no indications that the Group would have difficulties complying with the covenants when they will next be tested.

19. NOTES TO CASH FLOW STATEMENT

Reconciliation of profit/(loss) for the year to cash generated from operations:

	2025	2024
	£m	£m
Profit/(Loss) before tax	5.4	(192.8)
Depreciation	1.4	1.7
Amortisation of intangibles	0.9	0.6
Letting fees amortisation	0.6	0.3
Loss on disposal of investment properties	1.5	2.3
Other expenses	0.7	1.2
Net loss from change in fair value of investment property	55.9	251.2
Impairment of assets held for sale	0.4	4.1
Equity-settled share-based payments	2.7	3.3
Finance costs	32.0	34.9
Changes in working capital:
Decrease/(Increase) in trade and other receivables	5.7	(2.9)
Decrease in trade and other payables	(2.1)	(16.2)
Cash generated from operations	105.1	87.7

For the purposes of the cash flow statement, cash and cash equivalents include restricted cash – tenants’ deposit deeds (note 14).

263 Workspace Group PLC Annual Report and Accounts 2025
Strategic Report Our Governance Financial Statements Additional Information

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

20. SHARE CAPITAL AND SHARE PREMIUM

	2025	2024
	£m	£m
Issued: Fully paid ordinary shares of £1 each	192.1	191.9

	2025	2024
	Number	Number
Number of shares at 1 April	191,910,392	191,638,357
Issue of shares	232,612	272,035
Number of shares at 31 March	192,143,004	191,910,392

In the year, the Group issued 232,612 shares in relation to share schemes with net proceeds £nil (31 March 2024: 272,035 share scheme options issued with £nil net proceeds).

Share capital	2025	2024	Share premium	2025	2024
	£m	£m		£m	£m
Balance at 1 April	191.9	191.6		296.6	295.5
Issue of shares	0.2	0.3		–	1.1
Reduction of shares	–	–		(1.0)	–
Balance at 31 March	192.1	191.9		295.6	296.6

The movement in the year on share premium relates to the excess between the nominal value and the vested share price on awarded shares to employees in the previous year. This has been recycled to retained earnings in the current year.

21. OTHER RESERVES

	Equity	Other investment	Hedging	Share-based payments reserve	Merger reserve	Total
	£m	£m	£m	£m	£m	£m
Balance at 1 April 2023	0.4	–	25.3	65.3	–	91.0
Share-based payments	–	–	0.7	–	–	0.7
Change in fair value of other investment (note 12)	1.1	–	–	–	–	1.1
Change in fair value of derivative financial instruments (cash flow hedge)	–	0.2	–	–	–	0.2
Balance at 31 March 2024	1.5	0.2	26.0	65.3	–	93.0
Share-based payments	–	–	(0.4)	–	–	(0.4)
Share options lapsed in prior years	1	–	–	(21.2)	–	(21.2)
Change in fair value of other investment (note 12)	0.1	–	–	–	–	0.1
Change in fair value of derivative financial instruments (cash flow hedge)	–	(0.3)	–	–	–	(0.3)
Balance at 31 March 2025	1.6	(0.1)	4.4	65.3	–	71.2

1. In the year the Group transferred amounts held in the share-based payment reserve to retained earnings In relation to share options that had lapsed in prior years. The transfer should have been made prior to the date of the opening comparative period, but was omitted. The error is not considered material and hence it is being corrected in the current year.

22. INVESTMENT IN OWN SHARES

The Company has an Employee Share Ownership Trust (‘ESOT’) and a trust for the Share Incentive Plan (‘SIP’). Shares are purchased in the market for distribution at a later date in accordance with the terms of the various share schemes. The shares are held by independent trustees. At 31 March 2025, the number of shares held by the ESOT totalled 36,886 (2024: 84,466). The SIP is governed by HMRC rules (note 23). At 31 March 2025, the number of shares held for the SIP totalled 20,638 (2024: 50,290). In the year the Group transferred the excess amounts held in the investment in own shares reserve to retained earnings in accordance with the carrying value of the remaining shares held. The transfer should have been made prior to the date of the opening comparative period, but was omitted. The error is not considered material and hence it is being corrected in the current year.

264 Workspace Group PLC Annual Report and Accounts 2025
Strategic Report Our Governance Financial Statements Additional Information

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

23. SHARE-BASED PAYMENTS

The Group operates a number of share schemes:

(a) Long Term Incentive Plan (‘LTIP’) and Restricted Share Awards (‘RSA’)

The LTIP scheme is a performance award scheme whereby shares are issued against Group performance measures which are assessed over the three-year vesting period. The performance measures for the 2022 scheme are:

• Relative Total Shareholder Return (‘TSR’)
• Total Property Return compared to the IPD benchmark

The performance measures for the 2023 and 2024 schemes are:

• Relative Total Shareholder Return (‘TSR’)
• Relative Earnings per share (‘EPS’) growth
• Relative ESG metrics
• Relative Total Accounting Return (‘TAR’)

The shares are issued at nil cost to the individuals provided the performance conditions are met. Under the 2024 LTIP scheme, 330,533 performance shares and 412,923 restricted shares were awarded in June 2024 and 89,814 performance shares in November 2024 to Directors and Senior Management (2023 LTIP scheme: 365,938 performance shares and 430,962 restricted shares were awarded in June 2023). Details of the movements for the LTIP and RSA scheme during the year were as follows:

LTIP & RSA	Number
At 1 April 2023	1,764,188
Granted (‘LTIP ’)	365,938
Granted (‘RSA’)	430,962
Exercised	(259,497)
Lapsed	(276,699)
At 31 March 2024	2,024,892
Granted (‘LTIP ’)	420,347
Granted (‘RSA’)	412,923
Exercised	(232,612)
Lapsed	(670,902)
At 31 March 2025	1,954,648

1. Included within the lapse figure in the year are 274,992 in relation to curtailment of service for the former CEO.

For the 2021 LTIP scheme, which vested in June 2024, the average closing share price at the date of exercise of shares exercised during the year was £5.85 (2020 LTIP scheme: £5.30). A binomial model was used to determine the fair value of the LTIP grant for the Relative TSR element of the schemes. Assumptions used in the model were as follows:

	November 2024	June 2024	November 2023	June 2023	November 2022	June 2022
	LTI P	LTI P	LTI P	LTI P	LTI P	LTI P
Share price at grant	562p	589p	470p	642p	841p	842p
Exercise price	Nil	Nil	Nil	Nil	Nil	Nil
Average expected life (years)	3	3	3	3	3	3
Risk-free rate	4.09%	4.09%	4.95%	1.96%	0.49%	0.16%
Average share price volatility	31.2%	32.3%	33.9%	41.5%	42.6%	39.5%
Correlation	68%	65%	52%	46%	47%	45%
TSR starting factor	1.14	1.15	0.96	0.85	1.14	1.11
Fair value per option – Relative TSR element	375p	383p	294p	333p	446p	475p

The fair value of the 2024 RSA Scheme and the additional three new measures (EPS growth, ESG metrics and TAR) for the 2024 LTIP Scheme are all measured at the grant date share price. The Total Property Return compared to the IPD benchmark is a non-market-based condition and the intrinsic value is therefore the share price at date of grant. At each balance sheet date, the Directors will assess the likelihood of meeting the conditions under this element of the scheme. The impact of the revision to original estimates, if any, is recognised in the income statement with a corresponding adjustment to equity. There is no Total Property Return element for the 2024 or 2023 LTIP schemes, (LTIP 2022: 50% of the Total Property Return element will vest). The assessment at year end for the performance measures included in the 2024 LTIP schemes were 50% of the relative EPS growth element will vest (LTIP 2023: 50%); 50% of the relative ESG metrics element will vest (LTIP 2023: 50%); and 50% of the relative TAR element will vest (LTIP 2023: 50%). The expected Workspace share price volatility was determined by taking account of the daily share price movement over a three-year period. The respective FTSE 250 Real Estate share price volatility and correlations were also determined over the same period. Assessment is made of any vesting conditions to categorise these into market performance conditions, non-market performance conditions and service conditions to value equity-settled transactions. The risk-free rate has been determined from market yield curves for government zero-coupon bonds with outstanding terms equal to the average expected term to exercise for each relevant grant.

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

23. SHARE-BASED PAYMENTS CONTINUED

(b) Employee share option schemes

The Group operates a Save As You Earn (‘SAYE’) share option scheme. Grants under the SAYE scheme are normally exercisable after three or five years’ saving.# NOTES TO THE FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

23. SHARE-BASED PAYMENTS CONTINUED

In accordance with UK practice, the majority of options under the SAYE schemes are granted at a price 20% below the market price ruling at the date of grant. Details of the movements for the SAYE schemes during the year were as follows:

SAYE Schemes	Weighted average exercise price	Options outstanding
At 1 April 2023	£5.56	286,907
Options granted	£4.79	390,739
Options exercised	£5.31	(12,538)
Options lapsed	£5.44	(226,668)
At 31 March 2024	£4.94	438,440
Options granted	£4.66	89,629
Options lapsed	£4.14	(91,606)
At 31 March 2025	£4.85	436,463

No SAYE share options were exercised during the year (for the three-year 2021 and the five-year 2019 schemes) and therefore, there was no average closing share price at the date of exercise (2024: £5.31).

The fair value has been calculated using the Black-Scholes model. Inputs to the model are summarised as follows:

	2025 SAYE 3 year	2025 SAYE 5 year	2024 SAYE 3 year	2024 SAYE 5 year
Weighted average share price at grant	604p	604p	479p	479p
Exercise price	466p	466p	395p	395p
Expected volatility	32%	32%	34%	36%
Average expected life (years)	3	5	3	5
Risk free rate	4%	4%	5%	4%
Expected dividend yield	5%	5%	5%	5%
Possibility of ceasing employment before vesting	20%	20%	25%	25%

The expected life is the average expected period to exercise. The risk free rate of return is the yield on zero-coupon UK Government bonds of a term consistent with the assumed option life. The expected dividend yield is based on the present value of expected future dividend payments to expiry.

Fair values per share of these options were:

	2025 Grant date	2025 Fair value of award	2024 Grant date	2024 Fair value of award
SAYE – three year	23 July 2024	168p	18 July 2023	125p
SAYE – five year	23 July 2024	174p	18 July 2023	133p

(c) Share Incentive Plan (‘SIP’)

All staff were granted £2,000 in August 2017, £2,000 in September 2019 and £2,000 in September 2021. These shares are held in trust under an HMRC-approved SIP. The shares can be exercised following three years of employment but must be held for a further two years in order to qualify for tax advantages.

No shares were granted in the year (2024: nil), 21,110 (2024: 5,400) shares were exercised in the year and 705 (2024: 3,290) shares lapsed.

(d) Year-end summary

At 31 March 2025, in total there were 2,391,110 (2024: 2,498,583) share awards/options exercisable on the Company’s ordinary share capital. These are analysed below:

Ordinary shares	Exercise price	Date of grant	Number exercisable	Exercisable between
LTI P	–	24 June 2022	676,635	–
24.06.2025				22.06.2026
(‘LTIP’)
–	265,671	22 June 2023	–	22.06.2026
(‘RSA’)
–	375,098	22 June 2023	–	22.06.2026
–	177,401	21 June 2024	–	21.06.2027
(‘LTIP’)
–	370,028	21 June 2024	–	21.06.2027
(‘RSA’)
–	89,814	28 November 2024	–	18.11.2027
(‘LTIP’)
SAYE	five year	27 July 2020	£5.31	1,467
SAYE	five year	23 July 2021	£6.70	447
SAYE	three year	27 July 2022	£5.08	40,088
SAYE	five year	27 July 2022	£5.08	472
SAYE	three year	18 July 2023	£3.95	276,826
SAYE	five year	18 July 2023	£3.95	39,943
SAYE	three year	24 July 2024	£4.66	70,440
SAYE	five year	24 July 2024	£4.66	6,780
Total			2,391,110	–

266 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

23. SHARE-BASED PAYMENTS CONTINUED

The share awards/options outstanding at 31 March 2025 had a weighted average remaining contractual life of: LTIP – 1.2 years (2024: 1.4 years), SAYE – 2.0 years (2024: 2.4 years), SIP – 0 years (2024: 0.2 years). The weighted average for the SIP scheme includes the unallocated and exercisable shares from previous awards.

(e) Cash-settled share-based payments

National Insurance payments due on the exercise of non-approved ESOS options and shares from the LTIP are considered cash-settled share-based payments. The estimated fair value of the National Insurance cash-settled share-based payments have been calculated using the share price at the balance sheet date. At each balance sheet date, the Group revises its estimate of the number of options that are expected to vest. It recognises the impact of the revision to original estimates, if any, in the income statement.

(f) Share-based payment charges

The Group recognised a total charge in relation to share-based payments as follows:

	2025 £m	2024 £m
Equity-settled share-based payments	2.4	3.1
Cash-settled share-based payments	0.2	0.2
Total	2.6	3.3

The total liability at the end of the year in respect of cash-settled share-based schemes was £0.5m (2024: £0.5m).

24. PENSIONS

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge for this scheme in the year was £1.4m (2024: £1.3m) representing contributions payable by the Group to the fund and is charged through trading profit. The Group’s commitment with regard to pension contributions, ranges from 6.0% to 10.0% (2024: 6.0% to 10.0%) of an employee’s salary. The pension scheme is open to every employee in accordance with the Government’s auto-enrolment rules. The number of employees, including Directors, in the scheme at the year end was 290 (2024: 291).

25. RELATED PARTY TRANSACTIONS

Key management for the purposes of related party disclosure under IAS 24 are taken to be the Executive Board Directors, the non-Board Executive Directors and the Non-Executive Directors. Key management compensation is set out below:

Key management compensation:	2025 £m	2024 £m
Short-term employee benefits	4.0	4.5
Post-employment benefits	0.3	0.2
Other long-term benefits	–	–
Termination benefits	–	–
Share-based payment benefits	0.4	1.0
Total	4.7	5.7

26. CAPITAL COMMITMENTS

At the year end the estimated amounts of contractual commitments for future capital expenditure not provided for were:

	2025 £m	2024 £m
Investment property construction	24.1	18.8

For both current and prior periods, there were no material obligations for the repair or maintenance of investment properties. All material contracts for enhancement are included in the capital commitments.

267 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

27. SUBSIDIARY AND OTHER RELATED UNDERTAKINGS

The Company’s subsidiary and other related undertakings at 31 March 2025, and up to the date of signing the financial statements, are listed below. Except where indicated otherwise, the Company owns 100% of the ordinary share capital of the following subsidiary undertakings incorporated and operating in the UK, all of which are consolidated in the Group’s financial statements.

UK subsidiaries

The registered address of all UK subsidiaries is Canterbury Court, Kennington Park, 1-3 Brixton Road, London SW9 6DE.

Name	Company Number	Nature of business
Workspace 12 Limited	05764838	Property Investment
Workspace 13 Limited	05834824	Property Investment
Workspace 14 Limited	05834831	Property Investment
Omnibus Workspace Limited	1,2,3 01444827	Non-trading
United Workspace Limited	1,2,3 01749661	Non-trading
Workspace Holdings Limited	2 03729646	Dormant
Busworks Limited	1,2,3 04108036	Holding Company
LI Property Services Limited	2,3 02134039	Insurance Agents
Workspace Management Limited	02841232	Property Management
Workspace 1 Limited	03726272	Dormant
Workspace 10 Limited	3 02985018	Dormant
McKay Securities Limited	00421479	Property Investment
Baldwin House Limited	1,2,3 00692181	Non-trading
Workspace Projects (KP) Limited	14186009	Property Investment
Glebe Three Limited	4 05830231	Non-trading

1. 100% of the ordinary share capital of this subsidiary is held by other Group companies.
2. These following subsidiary undertakings are exempt from the Companies Act 2006 requirements relating to the audit of their individual accounts by virtue of Section 479A of the Act as Workspace Group PLC has guaranteed the subsidiary companies under Section 479C of the Act.
3. Proceedings for dissolution of these subsidiary companies were commenced before the Balance Sheet date.
4. A court restoration was effective from 16 April 2025 for Glebe Three Limited.

Non-UK subsidiaries

Name	Country of incorporation	Registered address	Nature of business
Workspace 17 (Jersey) Limited	Jersey	44 Esplanade, St Helier, Jersey JE4 9WQ	Holding Company
Workspace Salisbury Limited	Jersey	44 Esplanade, St Helier, Jersey JE4 9WQ	Property Investment
Centro Property Limited	Guernsey	Martello Court, Admiral Park, St Peter Port, Guernsey GY1 3HB	Dissolved
Stamfordham Road (IOM) Limited	Isle of Man	33-37 Athol Street, Douglas, Isle of Man, IM1 1LB	Non-trading

1. This subsidiary company was dissolved in the year ended 31 March 2025.
2. This subsidiary was dissolved after the Balance Sheet date.

28. LEASES

The majority of the Group’s tenant leases are granted with a rolling six-month tenant break clause, although property acquisitions have included customer leases which are much longer, with fewer break clauses. The future minimum rental income under leases granted to tenants are shown below.

Land and buildings:	2025 £m	2024 £m
Within one year	84.8	86.7
Between one and two years	28.6	21.0
Between two and three years	15.7	12.6
Between three and four years	6.3	9.8
Between four and five years	3.1	5.5
Beyond five years	7.3	12.2
Total	145.8	147.8

29. POST BALANCE SHEET EVENTS

The Group completed the sale of Q West in April 2025, for a total consideration of £10.3m, the sales price is in line with the 31 March 2025 valuation.

267 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information# NOTES TO THE FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

Notes

	2025 £m	2024 £m
Fixed assets
Investments	1,058.3	1,189.6
	1,058.3	1,189.6
Current assets
Debtors: amounts falling due within one year	531.7	407.6
Cash and cash equivalents	24.7	2.5
	556.4	410.1
Total assets	1,614.7	1,599.7
Current liabilities
Creditors: amounts falling due within one year	(73.1)	(149.1)
Borrowings	(79.9)	–
	(153.0)	(149.1)
Creditors: amounts falling due after more than one year
Borrowings	(697.1)	(722.2)
Total liabilities	(850.1)	(871.3)
Net assets	764.6	728.4
Capital and reserves
Share capital	192.1	191.9
Share premium	295.6	296.6
Investment in own shares	(0.3)	(9.9)
Other reserves	69.7	91.3
Retained earnings	207.5	158.5
Total shareholders’ equity	764.6	728.4

1. Retained earnings for the Company include profit for the year of £109.3m (2024: £53.6m loss).

The notes on pages 270 to 272 form part of these financial statements.

The financial statements on pages 269 to 272 were approved by the Board of Directors on 4 June 2025 and signed on its behalf by:

Lawrence Hutchings
Director

Dave Benson
Director

Workspace Group PLC
Registered number: 02041612

PARENT COMPANY BALANCE SHEET AS AT 31 MARCH 2025

Strategic Report Our Governance Financial Statements Additional Information

A. ACCOUNTING POLICIES

These financial statements were prepared in accordance with Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (‘FRS 101’).

Basis of accounting

The financial statements are prepared and approved by the Directors on a going concern basis under the historical cost convention and in accordance with Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (‘FRS 101’). In preparing these financial statements, the Company applies the recognition, measurement and disclosure requirements of UK-adopted international accounting standards (‘Adopted IFRSs’), but makes amendments where necessary in order to comply with Companies Act 2006 and has set out below where advantage of the FRS 101 disclosure exemptions has been taken. The financial statements are presented in Sterling.

a) The requirements of IAS 7 to provide a statement of cash flows and related notes for the year.
b) The requirements of IAS 1 to provide a statement of compliance with IFRS.
c) The requirements of IAS 1 to disclose information on the management of capital.
d) The requirements of paragraphs 30 and 31 of IAS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’ to disclose new IFRSs that have been issued but are not yet effective.
e) The requirements in IAS 24 ‘Related Party Disclosures’ to disclose related party transactions entered into between two or more members of a Group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.
f) The requirements of IFRS 7 on financial instruments disclosures.
g) The requirements of paragraphs 91-99 of IFRS 13 ‘Fair Value Measurement’ to disclose information of fair value valuation techniques and inputs.

The above disclosure exemptions are allowed because equivalent disclosures are included in the Group’s consolidated financial statements.

Significant judgements and critical estimates

As a result of a reduction in the valuation of investment properties owned by certain of its subsidiaries in the year to March 2025, the Directors performed an impairment assessment and recognised an impairment of £9.6m in the value of its investment in subsidiaries (2024: £121.4m).

NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

Notes	Share capital £m	Share premium £m	Investment in own shares £m	Other reserves £m	Retained earnings £m	Total shareholders’ equity £m
Balance at 31 March 2023	191.6	295.6	(9.9)	90.6	261.8	829.7
Loss for the year	–	–	–	–	(53.6)	(53.6)
Total comprehensive loss	–	–	–	–	(53.6)	(53.6)
Transactions with owners:
Dividends paid	–	–	–	–	(50.6)	(50.6)
Share-based payments	0.3	1.0	–	0.7	0.9	2.9
Balance at 31 March 2024	191.9	296.6	(9.9)	91.3	158.5	728.4
Profit for the year	–	–	–	–	109.3	109.3
Total comprehensive profit	–	–	–	–	109.3	109.3
Transactions with owners:
Dividends paid	–	–	–	–	(54.5)	(54.5)
Own shares transferred in prior years	2	–	–	9.3	–	(9.3)
Cost of shares awarded to employees	–	–	0.3	–	–	0.3
Share-based payments	0.2	(1.0)	1	–	(0.4)	3.5
Share options lapsed in prior years	3 G	–	–	(21.2)	–	(21.2)
Balance at 31 March 2025	192.1	295.6	(0.3)	69.7	207.5	764.6

1. The movement in the year on share premium relates to the excess between the nominal value and the vested share price on awarded shares to employees in the previous year. This has been reclassified to retained earnings in the current year.
2. In the year the Company transferred the excess amounts held in the investment in own shares reserve to retained earnings in accordance with the carrying value of the remaining shares held. The transfer should have been made prior to the date of the opening comparative period, but was omitted. The error is not considered material and hence it is being corrected in the current year.
3. In the year the Company reversed amounts held in the share-based payment reserve in relation to share options that had lapsed in prior years. The corresponding amounts held in investment in subsidiaries have also been reversed. The reversal should have been made prior to the date of the opening comparative period, but was omitted. The error is not considered material and hence it is being corrected in the current year.

The notes on pages 270 to 272 form part of these financial statements.

PARENT COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2025

Strategic Report Our Governance Financial Statements Additional Information

B. PROFIT/(LOSS) FOR THE YEAR

As permitted by the exemption in Section 408 of the Companies Act 2006, the profit and loss account of the Company is not presented as part of these financial statements. The profit attributable to shareholders, before dividend payments, is £109.3m (2024: £53.6m loss). £193.7m of dividends were received in the year from subsidiary undertakings (2024: £89.5m). Dividend payments are disclosed in note 7 to the consolidated financial statements.

C. INVESTMENTS

Investment in subsidiary undertakings

	£m
Cost
Balance at 31 March 2024	1,311.0
Additions in the year	117.5
Disposals in the year	(218.0)
Share options lapsed in prior years	(21.2)
Balance at 31 March 2025	1,189.3
Impairment
Balance at 31 March 2024	121.4
Impairment in the year	9.6
Disposals in the year	–
Balance at 31 March 2025	131.0
Net book value at 31 March 2025	1,058.3
Net book value at 31 March 2024	1,189.6

An Impairment test has been performed at the year end by the Company. A determination of the recoverable amount of the investments in subsidiaries was made based on the net asset value of the subsidiaries, resulting in an impairment in the year of £9.6m (2024: £121.4m). The recoverable amount remains sensitive to the financial performance and financial position of both the Company and its subsidiaries, including the valuation of investment properties held by the subsidiaries (see note 10 of the Group financial statements).

D. DEBTORS

Amounts falling due within one year

	2025 £m	2024 £m
Amounts owed by Group undertakings	529.7	406.1
Corporation tax asset	2.0	1.5
	531.7	407.6

Amounts owed by Group undertakings are unsecured and repayable on demand. Interest is charged to Group undertakings. At the Balance Sheet date, there is no expectation of any material credit losses on amounts owed by Group undertakings.

A. ACCOUNTING POLICIES CONTINUED

Material accounting policies

i. Investments
Investments are carried in the Company’s balance sheet at cost less impairment. Impairment reviews are performed by the Directors when there has been an indication of potential impairment. Impairment and reversal of impairment is taken to the profit and loss account.

ii. Share-based payment and investment in own shares
Incentives are provided to employees under share option schemes. The Company has established an Employee Share Ownership Trust (‘ESOT’) to satisfy part of its obligation to provide shares when Group employees exercise their options. The Company provides funding to the ESOT to purchase these shares. The Company has also established an employee Share Incentive Plan (‘SIP’) which is governed by HMRC rules. The Company itself has no employees. When the Company grants share options to Group employees as part of their remuneration, the expense of the share options is reflected in a subsidiary undertaking, Workspace Management Limited. The Company recognises this as an investment in subsidiary undertakings with a corresponding increase to equity. The disclosure requirements for share-based payments are met in note 23 of the Group’s consolidated financial statements.

iii. Borrowings
Details of borrowings are described in note F to the Parent Company financial statements. Costs associated with the raising of finance are capitalised, amortised over the life of the instrument and charged as part of interest costs.

Taxation

Current income tax is tax payable on the taxable income for the year and any prior year adjustment, and is calculated using tax rates that are relevant to the financial year. Deferred tax is provided in full on temporary differences between the tax base of an asset or liability and its carrying amount in the balance sheet.# NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 MARCH 2025

E. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

	2025 £m	2024 £m
Amounts owed to Group undertakings	69.3	145.2
Withholding tax	–	1.8
Accruals and deferred income	3.8	2.1
Total	73.1	149.1

Amounts owed to Group undertakings are unsecured and repayable on demand. Interest is paid to Group undertakings.

F. BORROWINGS

Interest rate	Repayable	2025 £m	2024 £m
Creditors: amounts falling due within one year
Bank overdraft due within one year or on demand	Base + 2.25%	–	3.07%
Senior Notes	August 2025	80.0	–
Creditors: amounts falling due after more than one year
Senior Notes	August 2025	–	80.0
Senior Notes	August 2027	120.0	120.0
Senior Notes	January 2029	100.0	100.0
Bank Loan	1 December 2026	–	125.0
Bank Loan	1 November 2028	100.0	–
Bank Loan	1 November 2026	80.0	–
Green Bond	March 2028	300.0	300.0
Total borrowings		780.0	725.0
Less cost of raising finance		(2.8)	(2.8)
Net borrowings		777.0	722.2

1. The base margin is dependent upon the LTV as reported in the client certificate, which is submitted twice a year. The base margin can be adjusted further by up to 4.5bps dependent upon achievement of three ESG-linked metrics. All the above borrowings are unsecured.

Maturity analysis of borrowings:

	2025 £m	2024 £m
Repayable within one year	80.0	–
Repayable between one and two years	80.0	80.0
Repayable between two and three years	420.0	125.0
Repayable between three and four years	200.0	420.0
Repayable between four and five years	–	100.0
Repayable in five years or more	–	–
Total	780.0	725.0

G. CAPITAL AND RESERVES

Movements and notes applicable to share capital, share premium account, investment in own shares, other reserves and share-based payment reserve are shown in notes 20 to 23 on pages 264 to 267 and in the statement of changes in equity.

Other reserves:

	Equity-settled share-based payments £m	Merger reserve £m	Total £m
Balance at 31 March 2023	25.3	65.3	90.6
Share-based payments	0.7	–	0.7
Balance at 31 March 2024	26.0	65.3	91.3
Share-based payments	(0.4)	–	(0.4)
Share options lapsed in prior years¹	(21.2)	–	(21.2)
Balance at 31 March 2025	4.4	65.3	69.7

1. In the year the Company corrected amounts held in the share-based payment reserve in relation to share options that had lapsed in prior years. The corresponding amounts held in investment in subsidiaries have also been corrected. The correction should have been made prior to the date of the opening comparative period, but was omitted. The error is not considered material and hence it is being corrected in the current year.

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	31 March 2025 £m	31 March 2024 £m	31 March 2023 £m	31 March 2022 £m	31 March 2021 £m
Rents receivable	144.9	145.0	136.7	104.3	118.0
Service charges and other income	40.3	39.3	37.5	28.6	24.3
Revenue	185.2	184.3	174.2	132.9	142.3
Trading profit before interest	98.8	100.9	95.1	67.4	62.5
Net interest payable¹	(32.0)	(34.9)	(34.4)	(20.5)	(23.8)
Trading profit after interest	66.8	66.0	60.7	46.9	38.7
(Loss)/profit before taxation	5.4	(192.8)	(37.5)	124.0	(235.7)
(Loss)/profit after taxation	5.4	(192.5)	(37.8)	123.9	(235.7)
Basic (loss)/earnings per share	2.8p	(100.4)p	(19.9)p	68.2p	(130.3)p
Dividends per share	28.4p	28.0p	25.8p	21.5p	17.75p
Dividends (total)	54.5	53.8	49.4	40.6	32.1
Investment properties	2,351.7	2,408.5	2,643.3	2,366.7	2,349.9
Other assets less liabilities	(29.8)	(4.7)	46.4	(9.4)	(65.5)
Net debt	(819.7)	(854.9)	(902.0)	(557.7)	(564.9)
Net assets	1,502.2	1,548.9	1,787.7	1,799.6	1,719.5
Gearing	55%	55%	50%	31%	33%
Loan to value	34%	35%	33%	23%	24%
EPRA Net Tangible Assets (NTA)	£7.74	£8.00	£9.27	£9.88	£9.38

1. Excludes exceptional items.

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	31 March 2025 £m	31 March 2024 £m	31 March 2023 £m	31 March 2022 £m	31 March 2021 £m
Workspace Group:
Number of estates	67	77	86	57	58
Lettable floorspace (million sq. ft.)	4.3	4.5	5.2	4.0	3.9
Number of lettable units	4,744	4,678	4,910	4,482	4,196
Average unit size (sq. ft.)	865	946	1,065	844	942
Rent roll of occupied units	£139.4m	£143.4m	£140.1m	£111.0m	£103.9m
Overall rent per sq. ft.	£41.50	£38.21	£32.86	£33.26	£33.90
Overall occupancy	78.5%	83.0%	81.5%	84.3%	77.8%
Enquiries (number)	8,435	9,458	10,563	11,007	8,870
Lettings (number)	1,266	1,238	1,312	1,520	1,146

EPRA Measures

	2025	2024	2023	2022	2021
EPRA Earnings per share¹	34.4p	34.0p	29.4p	26.2p	21.3p
EPRA Net Tangible Assets per share	£7.74	£8.00	£9.27	£9.88	£9.38

1. The prior years’ EPRA earnings are calculated in line with the EPRA guidelines that existed at the time and have not been restated in line with the 2024 guidelines.

FIVE-YEAR PERFORMANCE (UNAUDITED)

2021–2025 PERFORMANCE METRICS (UNAUDITED)

---

EPRA PERFORMANCE MEASURES (UNAUDITED)

	Notes	2025 £m	2024 £m
EPRA earnings	8	66.8	66.0
EPRA earnings per share	8	34.8	34.6
EPRA earnings per share (diluted)	8	34.5	34.3
EPRA reinstatement value	9	1,663.3	1,715.1
EPRA net reinstatement value per share	9	8.58	8.87
EPRA net tangible assets (£m)	9	1,501.2	1,546.5
EPRA net tangible assets per share	9	7.74	8.00
EPRA net disposal value	9	1,542.1	1,608.2
EPRA net disposal value per share	9	7.95	8.32
EPRA LT V (below)		36.8%	36.9%
EPRA Vacancy Rate (below)		16.8%	13.8%
EPRA Capital Expenditure (below)		62.8	71.4

Definitions for these metrics can be found on page 277.

EPRA LTV

	Notes	2025 £m	2024 £m
Loan borrowings	16a	845.0	859.0
Net payable		52.2	49.6
Cash and cash equivalents	14	(25.3)	(4.1)
Net Debt		871.9	904.5
Investment properties at fair value	10	2,367.8	2,446.5
Intangibles		1.1	2.2
Total Property Value		2,368.9	2,448.7
LTV%		36.8%	36.9%

EPRA Vacancy Rate

	Notes	2025 £m	2024 £m
Estimated rental value of vacant space excluding major refurbishments and redevelopments	1 A	30.8	25.3
Estimated rental value of the total portfolio	1	191.9	194.6
Less: Major refurbishments and redevelopments		8.1	11.4
Total	B	183.8	183.2
EPRA Vacancy Rate	A/B	16.8%	13.8%

1. Comprising the ERV of the like-for-like portfolio and those properties currently undergoing refurbishment or redevelopment (but only including properties at the design stage and non-core properties at their current rent roll and occupancy.

Property related capital expenditure

	All figures in £m	2025 £m	2024 £m
Acquisitions		–	–
Major refurbishments & developments		21.6	38.3
Capitalised interest		3.4	3.0
Investment properties:
Incremental letting space		–	–
No incremental letting space		37.8	30.1
Tenant incentives		–	–
Total capital expenditure		62.8	71.4
Conversion from accrual to cash basis		(1.5)	(2.1)
Total capital expenditure on cash basis		61.3	69.3

EPRA like-for-like rental income

The table below sets out the like-for-like rental growth of the portfolio, in accordance with EPRA Best Practices Recommendations.

	2025 £m	Growth £m	Growth %	2024 £m	Growth £m	Growth %
Net rental Income EPRA like-for-like portfolio¹	100.7	(2.1)	(2.0)%	102.8
Refurbishments & Redevelopments	18.9			17.2
Underlying Net Rental Income	119.6	(0.4)	(0.3)%	120.0
Acquisitions & Disposals	2.5			6.2
Net Rental Income Total	122.1	(4.1)	(3.2)%	126.2

1. For this purpose, the like-for-like portfolio comprises properties which have been owned and consistently in operation and not affected by development or refurbishment activity during the current and prior reporting years, in line with EPRA Best Practice Recommendations. The valuation of the like-for-like portfolio on this basis, as valued by our external valuers, is £1,862m. As per Note 1 of the financial statements, management have determined that the Group operates a single operating segment.

PROPERTY PORTFOLIO 2025 (UNAUDITED)

Property name	Postcode	Lettable floor area sq. ft.	Net rent roll of occupied units £
Brickfields	E2 8HD	56,441	2,813,923
Canalot Studios	W10 5BN	48,336	1,325,816
Cannon Wharf	SE8 5EN	32,619	602,424
Cargo Works	SE1 9PG	63,874	3,534,157
Castle Lane	SW1E 6DR	14,254	710,048
Centro Buildings	NW1 0DU	183,102	7,654,297
China Works	SE1 7SJ	68,422	2,712,453
Chiswick Studios	W4 5PY	14,254	135,565
Clerkenwell Workshops	EC1R 0AT	52,507	3,367,549
E1 Studios	E1 1DU	39,630	1,153,647
East London Works	E1 1DU	38,333	1,328,999
Edinburgh House	SE11 5DP	65,861	2,645,534
Exmouth House	EC1R 0JH	57,249	3,317,091
Fuel Tank	SE8 3DX	35,189	666,559
338 Goswell Road	EC1V 7LQ	36,904	1,296,855
Grand Union Studios	W10 5AD	62,958	1,450,497
60 Gray's Inn Road	WC1X 8LU	36,139	1,910,892
Ink Rooms	WC1X 0DS	22,235	1,362,713
Kennington Park	SW9 6DE	360,510	8,786,063
Property name	Postcode	Lettable floor area sq. ft.	Net rent roll of occupied units £

CONTINUED

Property name	Postcode	Lettable floor area sq. ft.	Net rent roll of occupied units £
Lock Studios	E3 3YD	54,361	1,129,262
Mare Street Studios	E8 3JS	54,863	1,796,500
Metal Box Factory	SE1 0HS	106,316	7,833,803
Mirror Works	E15 2NH	39,965	870,643
Morie Street	SW18 1SL	21,707	415,262
Old Dairy	EC2A 4HT	56,983	2,656,556
Peer House	WC1X 8LZ	9,739	365,063
Pill Box	E2 6GG	51,358	1,377,728
Salisbury House	EC2M 5QQ	220,405	12,558,793
ScreenWorks	N5 2EF	62,862	1,898,999
The Frames	EC2A 4PS	51,864	3,156,445
The Leather Market	SE1 3ER	143,510	6,814,336
The Light Box	W4 5PY	78,489	1,993,490
The Light Bulb (part)	SW18 4GQ	52,700	1,144,683
The Print Rooms	SE1 0LH	45,622	2,796,390
The Record Hall	EC1N 7RJ	57,015	3,141,399
The Shepherds Building	W14 0EE	141,228	5,006,636
Vox Studios	SE11 5JH	105,515	3,712,074
Westbourne Studios	W10 5JJ	50,829	1,931,299
66 Wilson Street	EC2A 2BT	11,893	553,024

Property name	Postcode	Lettable floor area sq. ft.	Net rent roll of occupied units £
REFURBISHMENTS
Barley Mow Centre	W4 4PH	77,052	2,159,474
Busworks	N7 9DP	103,110	1,517,989
Centro Buildings (Atelier House)	NW1 0DU	0	19,500
Chocolate Factory (part)	N22 6XJ	23,292	305,629
Corinthian House	CR0 2BX	33,339	815,724
Evergreen Studios	TW9 1QE	17,322	584,705
Fleet Street	EC4A 2DQ	41,504	1,864,578
Havelock Terrace	SW8 4AS	58,814	1,170,906
Leroy House	N1 3QP	55,742	375,662
Pall Mall Deposit	W10 6BL	59,813	1,461,266
Parkhall Business Centre	SE21 8EN	117,567	2,120,708
Portsoken House	EC3N 1LJ	43,568	2,084,273
Swan Court	SW19 4JS	55,785	2,123,453
The Biscuit Factory (Cocoa Studios)	SE16 4DG	39,298	1,043,039
The Biscuit Factory (J Block)	SE16 4DG	83,811	896,725
The Biscuit Factory (part)	SE16 4DG	122,724	1,817,830
The Light Bulb (Phase 2)	SW18 4GQ	16,259	303,370
The Mille	TW8 9DW	92,075	2,003,073
Wenlock Studios	N1 7EU	30,941	840,753

Property name	Postcode	Lettable floor area sq. ft.	Net rent roll of occupied units £
SOUTH EAST OFFICE
Building 329	RG12 8PE	31,307	654,138
Crown Square	GU21 6HR	47,526	711,398
Gainsborough House	SL4 1TX	18,661	548,417
9 Greyfriars Road	RG1 1NU	38,493	918,503
Prospero House	RH1 1LP	48,934	1,208,782
Pegasus Place	RH1 0 9AY	50,544	1,131,880
Rivergate House	RG14 2PZ	60,817	1,128,643
The Switchback	SL6 7RJ	36,817	717,901
NON-CORE
Q West	TW8 0GP	54,813	641,127
The Shaftesbury Centre	W10 6BN	12,627	310,462
The Planets	GU21 6HR	98,255	–
Thurston Road	SE13 7SH	7,133	112,920

275 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

276 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

Earnings per share (‘EPS’) is the profit after taxation divided by the weighted average number of shares in issue during the period.

Employee Share Ownership Trust (‘ESOT’) is the trust created by the Group to hold shares pending exercise of employee share options.

EPRA EPS is a definition of earnings per share as set out by the European Public Real Estate Association (‘EPRA’). It is based on operating earnings where profit before tax is adjusted to exclude the impact of any changes in property valuation, gains or losses on property disposals, fair value movements and other expenses.

EPRA LTV – Net debt plus net payables divided by the market value of investment properties and intangibles.

EPRA Net Asset Value (‘EPRA NAV’) is a definition of net asset value as set out by EPRA. It is adjusted to include investment properties at fair value and to exclude certain items not expected to crystallise in a long-term investment property business model.

EPRA Net Reinstatement Value (‘EPRA NRV’) represents the value required to rebuild an entity, assuming that no asset sales takes place. Assets and liabilities that are not expected to crystallise in normal circumstances, such as fair value movements on derivatives and deferred tax on property valuation movements, are excluded.

EPRA Net Tangible Assets (‘EPRA NTA’) focuses on a company’s tangible assets and assumes that entities buy and sell assets, thereby crystallising certain levels of unavoidable deferred tax.

EPRA Net Disposal Value (‘EPRA NDV’) represents the shareholders’ value under a disposal scenario, where deferred tax, financial instruments and certain other adjustments are calculated to the full extent of their liability, net of any resulting tax.

EPRA Vacancy Rate – ERV of vacant space divided by the ERV of the whole portfolio, excluding major refurbishments and redevelopments.

Equivalent yield is a weighted average of the initial yield and reversionary yield and represents the return a property will produce based upon the timing of the occupancy of the property and timing of the income receivable. This is approximated by the reversionary yield multiplied by the Group trend occupancy of 90%.

Estimated Rental Value (‘ERV’) or market rental value is the Group’s external valuers’ opinion as to the open market rent which, on the date of valuation, could reasonably be expected to be obtained on a new letting or rent review.

Exceptional items are significant items of income or expense that by virtue of their size, incidence or nature are shown separately on the consolidated income statement to enable a full understanding of the Group’s financial performance.

Gearing is the Group’s net debt as a percentage of net assets.

Green Finance Framework is aligned with ICMA’s Green Bond Principles (2018 edition) and LMA’s Green Loan Principles (2021 edition) and addresses UN SDGs 7, 11, 12 and 13. The framework allows Workspace to issue a variety of GDIs and sets out the principles for the use and management of proceeds from GDIs. ICMA is the International Capital Market Association.

Initial yield is the net rents generated by a property or by the portfolio as a whole expressed as a percentage of its valuation.

Interest cover is the number of times net interest payable is covered by net rental income.

Like-for-like are those properties with stabilised occupancy, excluding recent acquisitions and buildings impacted by significant refurbishment or redevelopment activity.

Loan to Value (‘LTV’) is net debt divided by the current value of properties owned by the Group as valued by CBRE.

LMA is the Loan Market Association.

MSCI IPD MSC Inc is a company that produces independent benchmarks of property returns under the brand IPD.

Net Asset Value per share (‘NAV’) is net assets divided by the number of shares at the period end.

Net debt is the amount drawn on bank and other loan facilities, including overdrafts, less cash deposits. This excludes any foreign exchange movements.

Net rents are rents excluding any contracted increases and after deduction of inclusive service charge revenue.

Occupancy is the area of space let divided by the total net lettable area (excluding land used for open storage) expressed as a percentage.

Property Income Distribution (‘PID’) a dividend generally subject to withholding tax that a UK REIT is required to pay from its tax-exempted property rental business and which is taxable for UK resident shareholders at their marginal tax rate.

REIT is a Real Estate Investment Trust as set out in the UK Finance Act 2006 Sections 106 and 107. REITs pay no corporation tax on profits derived from their property rental business.

Rent roll is the annualised net rent of occupied units for a property or portfolio of properties at a reporting date.

Reversionary yield is the anticipated yield, which the initial yield will rise to once the rent reaches the estimated rental value. It is calculated by dividing the ERV by the valuation.

SONIA is the Sterling Overnight Interbank Average Rate, an important interest benchmark administrated by the Bank of England.

Total Accounting Return (‘TAR’) is the growth in absolute EPRA net asset per share plus dividends paid in the year as a percentage of the opening EPRA net asset value per share.

Total Property Return (‘TPR’) is a percentage measure calculated by MSCI IPD and defined in the MSCI Global Methodology for Real Estate Investment as the percentage of value change plus net income accrued relative to the capital employed.

Total Shareholder Return (‘TSR’) is the growth in ordinary share price as quoted on the London Stock Exchange plus dividends per share received for the year, expressed as a percentage of the share price at the beginning of the year.

Trading profit after interest is net rental income, less administrative expenses and net finance costs.

UN SDGs is UN Sustainable Development Goals which are addressed in the Green Finance Framework.

GLOSSARY OF TERMS

277 Workspace Group PLC Annual Report and Accounts 2025 Strategic Report Our Governance Financial Statements Additional Information

INVESTOR INFORMATION

Registrar

All general enquiries concerning ordinary shares in Workspace Group PLC should be addressed to:

Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol BS99 6ZY

Telephone: +44 (0)370 707 1413

Alternatively, shareholders can contact Computershare online via their free Investor Centre facility. Shareholders have the ability to set up or amend bank details for direct credit of dividend payments, amend address details, view payment history and access information on the Company’s share price. For more information or to register, please visit www.investorcentre.co.uk

Website

The Company has an investor website which holds, amongst other information, a copy of the latest Annual Report and Accounts, a list of properties held by the Group and copies of all press announcements.# Workspace Group PLC Annual Report and Accounts 2025

The site can be found at www.workspace.co.uk/investors

Registered office and headquarters
Canterbury Court
Kennington Park
1–3 Brixton Road
London SW9 6DE

Registered number: 02041612

Telephone: +44 (0)20 7138 3300
Web: www.workspace.co.uk
Email: investor.relations@workspace.co.uk

Company Secretary
Carmelina Carfora

The Company’s advisers include:

Independent auditors
BDO LLP
55 Baker Street
London W1U 7EU

Solicitors
Slaughter and May
1 Bunhill Row
London EC1Y 8YY

Clearing bankers
NatWest
250 Bishopsgate
London EC2M 4AA

Joint stockbrokers
JP Morgan
25 Bank Street
London E14 5JP

Stifel Nicolaus Europe Limited
150 Cheapside
London EC2V 6ET

278 Workspace Group PLC Annual Report and Accounts 2025

Strategic Report
Our Governance
Financial Statements
Additional Information

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Workspace Group PLC Annual Report and Accounts 2025

Workspace Group PLC
Canterbury Court
Kennington Park
1–3 Brixton Road
London SW9 6DE

Telephone: +44 (0)20 7138 3300
Web: www.workspace.co.uk
Email: investor.relations@workspace.co.uk

If you require information regarding business space in London, call +44 (0)20 7369 2390 or visit: www.workspace.co.uk