Workspace Group PLC (LSE:WKP) shares fell around 6% to 375p after the office space provider reported interim results showing what progress is being made under its new three-pronged strategy.
Trading profit after interest for the six months to 30 September 2025 came to £30.6 million, down 6.4% on a year ago.
A swing to loss before tax of £71.1 million was reported, from a £10.2 million PBT, driven by a 3.0% decline in like-for-like portfolio valuation.
Net tangible assets (NTA) per share fell 6.8% to £7.21, like-for-like rent roll declined by 3.3% and occupancy dropped 2.5 percentage points to 80.0%. Rent per square foot rose slightly to £47.55.
Loan-to-value rose to 36%, with £167 million of cash and undrawn facilities as of 30 September.
"Following the launch of our Fix, Accelerate and Scale strategy in June, we have made steady operational progress through the first half of the year in what remains a challenging market," said chief executive Lawrence Hutchings. "Our priority is to stabilise and rebuild occupancy."
The company completed or exchanged £52.4 million of asset disposals, progressing towards its £200 million two-year target.
Strategic developments also included a new partnership with the Qube members' club, including a 32,000 sq ft lease at The Old Dairy in Shoreditch, east London, and a £3 million minority equity investment.
Workspace maintained its interim dividend at 9.4p per share.
Analysts said the results were in line with expectations.
Broker Panmure Liberum said NTA "looks weak however, down 6.8% after valuation decline of 4% on lower occupancy and rents and follows up our interpretation of Landsec results last week that office values are coming under pressure, and our view ... that yields need to move out to allow for cash flow funding of capex liabilities.
"It is early days, with just five months passing since the Strategy Day in summer. WKP are still in the Fix phase of their three pronged strategy, in a tough environment. As we’ve said before on WKP, it will take time."