Earnings Release • Aug 30, 2024
Earnings Release
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30 August 2024
London & Associated Properties PLC ("LAP" or the "Group") is a main market listed property investment group that specialises in industrial and essential retail property in the UK. It also holds a substantial stake in the main market listed Bisichi PLC which operates coal mines in South Africa and invests in UK property.
"LAP's options for enhancing performance have been limited by interest rates and inflation. The recent and forecast easing of these pressures, combined with the ongoing drive to reduce overheads and Bisichi's forward looking performance outlook, should enable LAP to deliver improved returns for shareholders."
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Contact:
London & Associated Properties PLC Tel: 020 7415 5000 John Heller, Chairman and Chief Executive
Baron Phillips Associates Tel: 07767 444193 Baron Phillips
We are pleased to report that for the six month period ended 30 June 2024 the Group has made a profit before tax of £4.2 million. Profit after tax attributable to shareholders was £0.1 million (2023: loss of £3.0 million). Net assets attributable to shareholders increased slightly from £28.5 million to £28.6 million (33.50p per share as compared to 33.38p per share at December 2023).
The Group's property business continues to perform satisfactorily, with strong tenant demand. Bisichi's mining business also performed well in the period, with a significant improvement in mining production and lower mining costs.
Interest rates remaining at recent historical highs during the period continued to depress earnings from the Group's property business, but we expect that these pressures will ease in the immediately foreseeable future.
Like for like revenue from property activities remained steady at £1.8 million (2023: £1.8 million, excluding Orchard Square and a one-off lease premium receipt).
We are continuing to see strong demand in both our industrial and value-orientated retail properties. While we remain open to selling any properties where we think we can reinvest the proceeds into new assets with stronger growth potential, we remain happy with the cash generating potential of the current portfolio.
Across our entire portfolio, voids remain at a low level of 4.5% by rental value (30 June 2023: 1.6%). 1.1% of the current vacancies relate to 5 residential units recently returned to us, with vacant possession, at the end of a long lease, which we anticipate will be relet quickly.
As reported in our 2023 Annual Report and Accounts, LAP has relinquished its interest in Orchard Square Limited but continues to work with the lender to manage and prepare the property for sale. The loan held by Orchard Square Limited was refinanced in August 2024 with the existing lender, with LAP's only commercial interest being its ongoing management fee and any performance fee relating to the sale of the property. There is no obligation on LAP to provide future funding to Orchard Square Limited, nor does the lender have any security over LAP Group assets outside Orchard Square Limited. Other than the income that LAP generates from its management of the property, Orchard Square Limited has no effect on LAP's financial results and the investment has been fully written down in the accounts in previous periods.
We continue to review all opportunities to reduce overheads and improve profitability, including assessing options for our head office when the lease expires in Q4 2024.
At our development site in West Ealing, we have fully implemented the planning consent for 56 flats and four retail units. In June 2024, the joint venture secured an offer of funding, agreed a price for a Registered Provider to purchase the affordable element of the scheme and agreed a construction cost with a contractor. The contractor went into administration in July 2024, before we commenced construction, and we are now in the process of retendering the construction contract. The lender and the Registered Provider have both indicated that once a new contractor is
selected they will be available to restart the process. We are scheduled to complete the tendering process in November 2024, with a view to starting on site in early 2025.
Our joint venture with Bisichi plc, Dragon Retail Properties Limited ("Dragon"), executed a new 3-year loan with Santander UK plc, the existing lender, for £0.74 million in July 2024, with an LTV of 50% and an interest rate of 3.5% above the Bank of England base rate. This loan is secured on Dragon's property portfolio.
For the first six months of the year, Bisichi PLC, which is 42% owned by LAP, made a profit before interest, tax, depreciation and amortisation (EBITDA) of £7.35 million (2023: £1.42 million) and an operating profit before depreciation, fair value adjustments and exchange movements (Adjusted EBITDA) of £6.65 million (2023: £2.17 million). Higher earnings for Bisichi, compared to the first six months of 2023, are mainly attributable to the significant improvement in mining production and lower mining costs at its South African coal mining asset, Black Wattle Colliery. This offset the lower prices for coal sold by Sisonke Coal Processing, the Group's South African coal processing operation.
Bisichi intends to pay an interim dividend on 7 February 2025 of 3p (2023: 3p) per share, £133,000 of which will be receivable by LAP.
Further details of Bisichi's performance and a forward looking statement can be found in their own half year report available at www.bisichi.com.
LAP's options for enhancing performance have been limited by interest rates and inflation. The recent and forecast easing of these pressures, combined with the ongoing drive to reduce overheads and Bisichi's forward looking performance outlook, should enable LAP to deliver improved returns for shareholders. The Board of LAP bases its decisions regarding dividend payments on the results and financial position of the Group's property activities and accordingly has decided not to declare a dividend for the half year.
John Heller Chairman and Chief Executive
29 August 2024
| 6 months | 6 months | Year | ||
|---|---|---|---|---|
| ended | ended | ended | ||
| 30 June | 30 June | 31 December | ||
| 2024 | 2023 | 2023 | ||
| (unaudited) | (unaudited) | (audited) | ||
| Notes | £'000 | £'000 | £'000 | |
| Group revenue | 1 | 24,754 | 28,335 | 53,183 |
| Operating costs | (20,037) | (28,708) | (52,017) | |
| Operating profit/(loss) | 1 | 4,717 | (373) | 1,166 |
| Finance income | 2 | 115 | 171 | 332 |
| Finance expenses | 2 | (1,534) | (1,775) | (3,646) |
| Result before valuation and other movements | 3,298 | (1,977) | (2,148) | |
| Non–cash changes in valuation of assets and liabilities and other movements |
||||
| Exchange losses | - | - | (158) | |
| Increase/(decrease) in value of investment properties | - | - | (5) | |
| Profit on disposal of fixed assets | - | - | 4 | |
| Gain/(loss) on investments held at fair value (Bisichi) | 920 | (553) | 759 | |
| Loss on disposal of subsidiary | - | - | (1,930) | |
| Decrease in value of other investments | - | - | (6) | |
| Result including revaluation and other movements | 4,218 | (2,530) | (3,484) | |
| Profit/(loss) for the period before taxation | 1 | 4,218 | (2,530) | (3,484) |
| Income tax charge | 3 | (1,302) | (232) | (307) |
| Profit/(loss) for the period | 2,916 | (2,762) | (3,791) | |
| Attributable to: | ||||
| Equity holders of the Company | 55 | (3,007) | (3,861) | |
| Non–controlling interest | 2,861 | 245 | 70 | |
| Profit/(loss) for the period | 2,916 | (2,762) | (3,791) | |
| Profit/(loss) per share – basic and diluted | 4 | 0.06 | (3.52) | (4.52) |
| 30 June | 30 June | 31 December | |
|---|---|---|---|
| 2024 | 2023 | 2023 | |
| (unaudited) | (unaudited) | (audited) | |
| £'000 | £'000 | £'000 | |
| Profit/(loss) for the period | 2,916 | (2,762) | (3,791) |
| Other comprehensive income: | |||
| Items that may be subsequently recycled to the income statement: | |||
| Exchange differences on translation of foreign operations | 175 | (874) | (675) |
| Other comprehensive income/(expense) for the period, net of tax | 175 | (874) | (675) |
| Total comprehensive income/(expense) for the period, net of tax | 3,091 | (3,636) | (4,466) |
| Attributable to: | |||
| Equity shareholders | 97 | (3,256) | (4,056) |
| Non–controlling interest | 2,994 | (380) | (410) |
| 3,091 | (3,636) | (4,466) |
| 30 June | 30 June | 31 December | ||
|---|---|---|---|---|
| 2024 | 2023 | 2023 | ||
| (unaudited) | (unaudited) | (audited) | ||
| Notes | £'000 | £'000 | £'000 | |
| Non–current assets | ||||
| Market value of properties attributable to Group | 35,643 | 35,610 | 35,060 | |
| Present value of head leases | 1,551 | 1,552 | 1,589 | |
| Property | 5 | 37,194 | 37,162 | 36,649 |
| Mining reserves, property, plant and equipment | 22,796 | 14,599 | 19,164 | |
| Other investments at fair value through profit and loss ("FVPL") (Bisichi) | 15,181 | 12,740 | 14,258 | |
| Deferred tax | - | - | 432 | |
| 75,171 | 64,501 | 70,503 | ||
| Current assets | ||||
| Inventories – Property | 5 | 9,465 | 21,256 | 8,889 |
| Inventories – Mining | 3,433 | 4,502 | 2,579 | |
| Assets held for sale | - | - | 545 | |
| Trade and other receivables | 10,058 | 8,031 | 7,413 | |
| Investments in listed securities held at FVPL (Bisichi) | 768 | 779 | 734 | |
| Cash and cash equivalents | 4,281 | 10,886 | 6,978 | |
| 28,005 | 45,454 | 27,138 | ||
| Total assets | 103,176 | 109,955 | 97,641 | |
| Current liabilities | ||||
| Trade and other payables | (18,067) | (14,386) | (14,463) | |
| Borrowings | (11,815) | (21,580) | (12,792) | |
| Lease liabilities | (197) | (345) | (394) | |
| Current tax liabilities | (4,750) | (4,321) | (5,191) | |
| (34,829) | (40,632) | (32,840) | ||
| Non–current liabilities | ||||
| Borrowings | (13,334) | (17,154) | (13,291) | |
| Lease liabilities | (1,543) | (1,599) | (1,582) | |
| Provisions | (1,635) | (1,475) | (1,615) | |
| Deferred tax liabilities | (680) | 236 | - | |
| (17,192) | (19,992) | (16,488) | ||
| Total liabilities | (52,021) | (60,624) | (49,328) | |
| Net assets | 51,155 | 49,331 | 48,313 | |
| Equity attributable to the owners of the parent | ||||
| Share capital | 8,554 | 8,554 | 8,554 | |
| Share premium account | 4,866 | 4,866 | 4,866 | |
| Translation reserve (Bisichi PLC) | (1,216) | (1,314) | (1,258) | |
| Capital redemption reserve | 47 | 47 | 47 | |
| Retained earnings (excluding treasury shares) | 16,480 | 17,279 | 16,425 | |
| Treasury shares | (144) | (144) | (144) | |
| Retained earnings | 16,336 | 17,135 | 16,281 | |
| Total equity attributable to equity shareholders | 28,587 | 29,288 | 28,490 | |
| Non – controlling interest | 22,568 | 20,043 | 19,823 | |
| Total equity | 51,155 | 49,331 | 48,313 | |
| Net assets per share attributable to equity shareholders | 6 | 33.50p | 34.32p | 33.38p |
| Retained earnings |
Total excluding |
||||||||
|---|---|---|---|---|---|---|---|---|---|
| Capital | excluding | Non– | Non–controlling | ||||||
| Share | Share | Translation | redemption | Treasury | treasury | Controlling | Interests | Total | |
| capital | premium | reserves | reserve | shares | shares | Interests | £'000 | equity | |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | ||
| Balance at 1 January 2023 |
8,554 | 4,866 | (1,063) | 47 | (144) | 20,286 | 32,546 | 21,169 | 53,715 |
| (Loss)/profit for the period |
- | - | - | - | - | (3,007) | (3,007) | 245 | (2,762) |
| Other comprehensive income: |
|||||||||
| Currency translation | - | - | (251) | - | - | - | (251) | (623) | (874) |
| Total other comprehensive income |
- | - | (251) | - | - | - | (251) | (623) | (874) |
| Total comprehensive income |
- | - | (251) | - | - | (3,007) | (3,258) | (378) | (3,636) |
| Transactions with owners: |
|||||||||
| Dividends – non controlling interests |
- | - | - | - | - | - | - | (748) | (748) |
| Transactions with owners |
- | - | - | - | - | - | - | (748) | (748) |
| Balance at 30 June 2023 (unaudited) |
8,554 | 4,866 | (1,314) | 47 | (144) | 17,279 | 29,288 | 20,043 | 49,331 |
| Balance at 1 January 2023 |
8,554 | 4,866 | (1,063) | 47 | (144) | 20,286 | 32,546 | 21,169 | 53,715 |
| (Loss)/profit for the year | - | - | - | - | - | (3,861) | (3,861) | 70 | (3,791) |
| Other comprehensive income: |
|||||||||
| Currency translation | - | - | (195) | - | - | - | (195) | (480) | (675) |
| Total other comprehensive expense |
- | - | (195) | - | - | - | (195) | (480) | (675) |
| Total comprehensive expense |
- | - | (195) | - | - | (3,861) | (4,056) | (410) | (4,466) |
| Transaction with owners: |
|||||||||
| Dividends – non– controlling Interests |
- | - | - | - | - | - | - | (936) | (936) |
| Transactions with owners |
- | - | - | - | - | - | - | (936) | (936) |
| Balance at 31 December 2023 (audited) |
8,554 | 4,866 | (1,258) | 47 | (144) | 16,425 | 28,490 | 19,823 | 48,313 |
| Share capital £'000 |
Share premium £'000 |
Translation reserves £'000 |
Capital redemption reserve £'000 |
Treasury shares £'000 |
Retained earnings excluding treasury shares £'000 |
Total excluding Non– Controlling Interests £'000 |
Non– controlling Interests £'000 |
Total equity £'000 |
|
|---|---|---|---|---|---|---|---|---|---|
| Balance at 1 January 2024 | 8,554 | 4,866 | (1,258) | 47 | (144) | 16,425 | 28,490 | 19,823 | 48,313 |
| Profit for the period | - | - | - | - | - | 55 | 55 | 2,861 | 2,916 |
| Other comprehensive income: |
|||||||||
| Currency translation | - | - | 42 | - | - | - | 42 | 133 | 175 |
| Total other comprehensive income |
- | - | 42 | - | - | - | 42 | 133 | 175 |
| Total comprehensive income | - | - | 42 | - | - | 55 | 97 | 2,994 | 3,091 |
| Transactions with owners: | |||||||||
| Dividends – non-controlling interests |
- | - | - | - | - | - | - | (249) | (249) |
| Transactions with owners | - | - | - | - | - | - | - | (249) | (249) |
| Balance at 30 June 2024 (unaudited) |
8,554 | 4,866 | (1,216) | 47 | (144) | 16,480 | 28,587 | 22,568 | 51,155 |
| 6 months | 6 months | Year | |
|---|---|---|---|
| ended | ended | ended | |
| 30 June | 30 June | 31 December | |
| 2024 | 2023 | 2023 | |
| (unaudited) | (unaudited) | (audited) | |
| £'000 | £'000 | £'000 | |
| Operating activities | |||
| Profit/(loss) for the year before taxation | 4,218 | (2,530) | (3,484) |
| Finance income | (115) | (171) | (332) |
| Finance expense | 1,534 | 1,775 | 3,646 |
| Decrease in value of investment properties | - | - | 5 |
| Gain on investments held at FVPL (Bisichi) | - | - | (759) |
| Loss on disposal of subsidiary | - | - | 1,930 |
| Decrease in value of other investments | - | 6 | 6 |
| Expenditure on trading property | (318) | - | - |
| Depreciation | 1,761 | 899 | 1,761 |
| Profit on disposal of non-current assets | - | (2) | (4) |
| Exchange adjustments | (27) | 188 | 158 |
| (Gain)/loss on investment held for trading | (920) | 553 | - |
| Development expenditure on inventories | - | - | (777) |
| Change in inventories | (795) | 1,572 | 2,046 |
| Change in receivables | (416) | 728 | (933) |
| Change in payables | 1,178 | (3,627) | 429 |
| Cash inflows/(outflows) generated from operations | 6,100 | (609) | 3,692 |
| Income tax paid | (721) | (327) | 137 |
| Cash inflows/(outflows) from operating activities | 5,379 | (936) | 3,829 |
| Investing activities | |||
| Disposal of subsidiary | - | - | (148) |
| Acquisition of investment properties, mining reserves, plant and equipment | (5,178) | (1,061) | (5,952) |
| Sale of plant and equipment | - | 16 | 21 |
| Disposal of other investments | - | - | 432 |
| Acquisition of other investments | (37) | (596) | (1,189) |
| Interest received | 115 | 171 | 332 |
| Cash outflows from investing activities | (5,100) | (1,470) | (6,504) |
| Financing activities | |||
| Interest paid | (1,474) | (1,693) | (3,557) |
| Interest on obligation under finance leases | (64) | (17) | (185) |
| Repayment of lease liability | (134) | (126) | (251) |
| Receipt of bank loan – Bisichi PLC | 21 | 27 | 99 |
| Repayment of bank loan – Bisichi PLC | (64) | (540) | (624) |
| Repayment of bank loan – Dragon Retail Properties Ltd | (155) | (183) | (193) |
| Receipt of bank loan – London & Associated Properties PLC | - | 3 | - |
| Repayment of bank loan – London & Associated Properties PLC | (4) | (61) | (95) |
| Equity dividends paid | - | - | (1,372) |
| Cash outflows from financing activities | (1,874) | (2,590) | (6,178) |
for the six months ended 30 June 2024
| 6 months 6 months |
Year | ||
|---|---|---|---|
| ended | ended | ended | |
| 30 June | 30 June | 31 December | |
| 2024 | 2023 | 2023 | |
| (unaudited) | (unaudited) | (audited) | |
| £'000 | £'000 | £'000 | |
| Net decrease in cash and cash equivalents | (1,595) | (4,996) | (8,853) |
| Cash and cash equivalents at beginning of period | 3,444 | 12,157 | 12,157 |
| Exchange adjustment | (5) | 177 | 140 |
| Cash and cash equivalents at end of period | 1,844 | 7,338 | 3,444 |
The cash flows above relate to continuing and discontinued operations.
For the purpose of the cash flow statement, cash and cash equivalents comprise the following balance sheet amounts:
| Cash and cash equivalents (before bank overdrafts) | 4,281 | 10,886 | 6,978 |
|---|---|---|---|
| Bank overdrafts | (2,437) | (3,548) | (3,534) |
| Cash and cash equivalents at end of period | 1,844 | 7,338 | 3,444 |
| 1. Segmental analysis | 6 months | 6 months | Year |
|---|---|---|---|
| ended | ended | ended | |
| 30 June | 30 June | 31 December | |
| 2024 | 2023 | 2023 | |
| (unaudited) | (unaudited) | (audited) | |
| £'000 | £'000 | £'000 | |
| Revenue | |||
| LAP | |||
| - Rental income | 1,131 | 2,000 | 3,323 |
| - Service charge income | 70 | 378 | 451 |
| - Management income from third parties | 9 | 9 | 18 |
| Bisichi | |||
| - Rental income | 523 | 524 | 1,051 |
| - Service charge income | - | - | 181 |
| - Mining | 22,940 | 25,341 | 47,985 |
| Dragon | |||
| - Rental income | 81 | 83 | 168 |
| - Service charge income | - | - | 6 |
| 24,754 | 28,335 | 53,183 | |
| Operating (loss)/profit | |||
| LAP | (482) | (1,728) | (281) |
| Bisichi | 5,134 | 1,296 | 1,318 |
| Dragon | 65 | 59 | 129 |
| 4,717 | (373) | 1,166 | |
| (Loss)/profit before taxation | |||
| LAP | (1,151) | (2,942) | (4,341) |
| Bisichi | 5,342 | 390 | 813 |
| Dragon | 27 | 22 | 44 |
| 4,218 | (2,530) | (3,484) | |
| 2. Finance costs | 6 months | 6 months | Year |
|---|---|---|---|
| ended | ended | ended | |
| 30 June | 30 June | 31 December | |
| 2024 | 2023 | 2023 | |
| (unaudited) | (unaudited) | (audited) | |
| £'000 | £'000 | £'000 | |
| Finance income | 115 | 171 | 332 |
| Finance expenses: | |||
| Interest on bank loans and overdrafts | (1,430) | (1,671) | (2,658) |
| Unwinding of discount (Bisichi) | - | - | (112) |
| Other loans | (32) | (32) | (705) |
| Interest on obligations under finance leases | (72) | (72) | (171) |
| Total finance expenses | (1,534) | (1,775) | (3,646) |
| (1,419) | (1,604) | (3,314) |
| 3. Income tax | 6 months | 6 months | Year |
|---|---|---|---|
| ended | ended | ended | |
| 30 June | 30 June | 31 December | |
| 2024 | 2023 | 2023 | |
| (unaudited) | (unaudited) | (audited) | |
| £'000 | £'000 | £'000 | |
| Current tax | 228 | 1,017 | 1,318 |
| Deferred tax | 1,074 | (785) | (1,011) |
| 1,302 | 232 | 307 |
| 4. Earnings per share | 6 months | 6 months | Year |
|---|---|---|---|
| ended | ended | ended | |
| 30 June | 30 June | 31 December | |
| 2024 | 2023 | 2023 | |
| (unaudited) | (unaudited) | (audited) | |
| Profit/(loss) attributable to equity shareholders after tax (£'000) | 55 | (3,007) | (3,861) |
| Weighted average number of shares in issue for the period ('000) | 85,326 | 85,326 | 85,326 |
| Basic earnings per share | 0.06p | (3.52)p | (4.52)p |
| Diluted number of shares in issue ('000) | 85,326 | 85,326 | 85,326 |
| Diluted earnings per share | 0.06p | (3.52)p | (4.52)p |
Investment properties are held at fair value at each reporting period.
During the period no properties were acquired or sold.
The West Ealing development property is held as inventory at cost, being lower than its net realisable value based on the latest cash flow appraisal.
The Orchard Square development property was held at a value of £14.75 million at 30 June 2023, with control being relinquished in July 2023. This is explained in more detail on page 59 (note 6) of the 2023 Annual Report and Accounts.
Other than as discussed above the Directors have placed a valuation on the properties which is not materially different to the value as at 31 December 2023. Investment properties are therefore included at a directors' valuation which is considered to be the fair value as at 30 June 2024. Please refer to pages 52 and 53 of the 2023 Annual Report and Accounts for details on the valuation of investment and inventory properties as at 31 December 2023.
| 6. Net assets per share | 30 June | 30 June | 31 December |
|---|---|---|---|
| 2024 | 2023 | 2023 | |
| (unaudited) | (unaudited) | (audited) | |
| Shares in issue ('000) | 85,326 | 85,326 | 85,326 |
| Net assets attributable to equity shareholders (£'000) | 28,587 | 29,288 | 28,490 |
| Basic net assets per share | 33.50p | 34.32p | 33.38p |
| Shares in issue diluted by outstanding share options ('000) | 85,326 | 85,326 | 85,326 |
| Net assets after issue of share options (£'000) | 28,587 | 29,288 | 28,490 |
| Fully diluted net assets per share | 33.50p | 34.32p | 33.38p |
The related parties and the nature of costs recharged are as disclosed in the group's annual financial statements for the year ended 31 December 2023.
There is no interim dividend payable for the period (30 June 2023: Nil). There is no final dividend payable in respect of 2023.
The group's principal risks and uncertainties are reported on pages 9 and 10 in the 2023 Annual Report. They have been reviewed by the Directors and remain unchanged for the current period.
The largest area of estimation and uncertainty in the interim financial statements is in respect of the valuation of investment properties (which are not revalued at the half year).
For Bisichi PLC, the largest area of estimation relates to currency movements and coal mining activities in South Africa, including depreciation, impairment and the provision for rehabilitation (relating to environmental rehabilitation of mining areas).
Property, plant and equipment representing Bisichi's mining assets in South Africa are reviewed for impairment where there is evidence of a material impairment. The impairment test indicated significant headroom as at 31 December 2023 and no impairment was considered appropriate.
Other areas of estimation and uncertainly are referred to in the Group's annual financial statements. There have been no significant changes to the basis of accounting for key estimates and judgements as disclosed in the annual report as at 31 December 2023.
Black Wattle Colliery (Pty) Ltd continues to be involved in a tax dispute in South Africa related to VAT. The dispute arose during the year ended 31 December 2020 and is related to events which occurred prior to the year ended 31 December 2020. The interpretation of laws and regulations in South Africa where the Group operates can be complex and can lead to challenges from or disputes with regulatory authorities. Such situations often take significant time to resolve. Where there is a dispute and where a reliable estimate of the potential liability cannot be made, or where the Group, based on legal advice, considers that it is improbable that there will be an outflow of economic resources, no provision is recognised. Further details of the contingent tax liability can be found on page 107 of Bisichi's 2023 Annual report and Accounts.
An exit fee of £220,000 is due to Paragon bank, the lender to our development in West Ealing, when the loan is repaid.
In August 2024, the term loan with Paragon bank was extended until January 2025, with the exit fee of £220,000 being added to the loan value.
The above financial information does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. The figures for the year ended 31 December 2023 are based upon the latest statutory accounts, which have been delivered to the Registrar of Companies; the report of the auditor on those accounts was unqualified and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006.
As required by the Disclosure and Transparency Rules of the UK's Financial Conduct Authority, the interim financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) and in accordance with both IAS 34 'Interim Financial Reporting' and in conformity with the requirements of the Companies Act 2006 applicable to companies reporting under IFRS and the disclosure requirements of the Listing Rules.
The half year results have not been audited or subject to review by the company's auditor.
The annual financial statements of London & Associated Properties PLC are prepared in accordance with IFRS and in conformity with the requirements of the Companies Act 2006 applicable to companies reporting under IFRS. The company has applied UK-adopted IAS and at the date of application, both UK-adopted IAS and EU-adopted IFRS are the same. The same accounting policies are used for the six months ended 30 June 2024 as were used for the year ended 31 December 2023.
As stated in the 2023 Annual Report in the group accounting policies, Bisichi PLC and Dragon Retail Properties Limited are consolidated with LAP, as required by IFRS 10.
The assessment of new standards, amendments and interpretations issued but not effective, is that these are not anticipated to have a material impact on the financial statements.
The interim financial statements have been prepared on the going concern basis.
The half year results were approved by the Board of London & Associated Properties PLC on 29 August 2024.
The Directors confirm that to the best of their knowledge:
(a) the condensed consolidated interim financial statements have been prepared in accordance with UK-adopted International Accounting Standard 34, Interim Financial Reporting.
(b) the interim management report includes a fair review of the information required by:
(1) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and
(2) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.
This report contains forward-looking statements. These statements are based on current estimates and projections of management and currently available information. Future statements are not guarantees of the future developments and results outlined therein. Rather, future developments and results are dependent on a number of factors; they involve various risks and uncertainties and are based upon assumptions that may not prove to be accurate. Risks and uncertainties identified by the Group are set out on pages 9 and 10 of the 2023 Annual Report & Accounts. We do not assume any obligation to update the forward-looking statements contained in this report.
Signed on behalf of the Board on 29 August 2024
Director Director
John Heller Jonathan Mintz
Directors Executive directors
John A Heller LLB MBA (Chief Executive and Chairman) Jonathan Mintz FCA (Finance Director)
Non-executive directors † Howard D Goldring BSC (ECON) ACA (resigned 30 June 2023) #† Clive A Parritt FCA CF FIIA † Robin Priest MA Andrew R Heller MA, ACA
* Member of the nomination committee # Senior independent director † Member of the audit, remuneration and nomination committees.
Secretary & registered office Jonathan Mintz FCA
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Website www.lap.co.uk
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