| | | | | £’000 | At 1 July 2024 | | | Cost | | 32,193 | Accumulated depreciation and impairment | | (12,480) | Net book amount | | 19,713 | Year ended 30 June 2025 | | | Opening net book amount | | 19,713 | Depreciation charge | | (280) | Closing net book amount | | 19,433 | At 30 June 2025 | | | Cost | | 32,193 | Accumulated depreciation and impairment | | (12,760) | Net book amount | | 19,433 | Year ended 30 June 2026 | | | Opening net book amount | | 19,433 | Depreciation charge | | (279) | Closing net book amount | | 19,154 | At 30 June 2026 | | | Cost | | 32,193 | Accumulated depreciation and impairment | | (13,039) | Net book amount | | 19,154 |
| (i) | Other amounts recognized in profit or loss for investment properties |
| | | | | | | 2026 | | 2025 | | | £’000 | | £’000 | Rental revenue | | 4,146 | | 2,137 | Direct operating expenses from properties, all of which generated rental revenue | | (1,279) | | (742) |
The future minimum rentals receivable under non-cancellable operating leases are disclosed in Note 32.2. | (ii) | Carrying value of investment properties |
Investment properties are held for long-term rental yields or for capital appreciation or both, and are not occupied by the Group. Investment properties are initially measured at cost (comprising the purchase price, after deducting discounts and rebates, and any directly attributable costs) and are subsequently carried at cost less accumulated depreciation and any provision for impairment. Investment properties are depreciated using the straight-line method over 50 years. Investment properties were externally valued as of 30 June 2026 in accordance with the Royal Institution of Chartered Surveyors (“RICS”) Valuation - Global Standards 2017 on the basis of Fair Value (as defined in the Standards). The fair value of investment properties as of 30 June 2026 was £38,785,000 (2025: £40,855,000). The fair value of investment properties is determined using inputs that are not based on observable market data, consequently the asset is categorized as Level 3. (iii) | Contractual commitments |
The Group had no material contractual commitments to purchase, construct or develop investment properties or for repairs, maintenance or enhancements (2025: not material).
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