FOR IMMEDIATE
RELEASE
30
August 2024
LONDON & ASSOCIATED PROPERTIES
PLC
HALF YEAR RESULTS
TO 30 JUNE
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.
HIGHLIGHTS
-
Improved profitability
–
-
Operating profit £3.3
million (June 2023: loss £2.0
million)
-
Profit before tax £4.2
million (June 2023: loss £2.5
million)
-
Net assets attributable to
shareholders –
-
Increased to £28.6 million
(December 2023: £28.5
million)
-
Now 33.50p (December 2023: 33.38p) per
share
-
Property portfolio seeing
continued strong tenant demand, with Group occupancy levels of
95.5% by rental income (June 2023:
98.4%). 1.1% of the current vacancies relate to 5 residential units
recently returned to us at the end of a long
lease.
“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.”
-more-
Contact:
London & Associated Properties
PLC Tel:
020 7415 5000
John Heller, Chairman and Chief
Executive
Baron Phillips
Associates Tel:
07767 444193
Baron Phillips
Half year
results for the period ended
30 June 2024
Half year
review
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
Consolidated
income statement
for the
six months ended 30 June
2024
|
|
Notes
|
6
months
ended
30
June
2024
(unaudited)
£’000
|
6
months
ended
30
June
2023
(unaudited)
£’000
|
Year
ended
31
December
2023
(audited)
£’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)
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
statement of comprehensive income
for the
six months ended 30 June
2024
|
|
30
June
2024
(unaudited)
|
30
June
2023
(unaudited)
|
31
December
2023
(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)
|
Consolidated
balance sheet
at
30 June 2024
|
|
|
30
June
2024
(unaudited)
£'000
|
30
June
2023
(unaudited)
£'000
|
31
December
2023
(audited)
£'000
|
|
|
|
|
|
|
|
|
|
|
|
Notes
|
|
|
|
|
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
|
Consolidated
statement of changes in shareholders’
equity
for the
six months ended 30 June
2024
|
|
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 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
|
Consolidated
statement of changes in shareholders’
equity -
continued
for the
six months ended 30 June
2024
|
|
|
|
|
|
|
|
|
|
|
|
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
|
Consolidated
cash flow statement
for the
six months ended 30 June
2024
|
|
6
months
ended
30
June
2024
(unaudited)
|
6
months
ended
30
June
2023
(unaudited)
|
Year
ended
31
December
2023
(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)
|
Consolidated
cash flow statement -
continued
for the
six months ended 30 June
2024
|
|
6
months
ended
30
June
2024
(unaudited)
|
6
months
ended
30
June
2023
(unaudited)
|
Year
ended
31
December
2023
(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.
Cash
and cash equivalents
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
|
Notes to
the half year report
for the
six months ended 30 June
2024
|
|
|
|
|
|
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
|
5.
Properties
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
|
7.
Related party transactions
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.
8.
Dividends
There is no
interim dividend payable for the period (30
June 2023: Nil).
There is no
final dividend payable in respect of 2023.
9.
Risks and uncertainties
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.
10.
Contingent Liabilities and Subsequent Events
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.
11.
Financial information
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.
12.
Board approval
The half
year results were approved by the Board of London & Associated Properties PLC on
29 August 2024.
Directors'
responsibility statement
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
John Heller
Jonathan
Mintz
Director
Director
|
Directors
and advisors
|
|
|
|
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
|
|
12 Little Portland Street
|
|
London W1W 8BJ
|
|
|
|
|
|
Registrars & transfer office
|
|
Link Group
Shareholder Services
|
|
The Registry
Central Square
29 Wellington Street
Leeds
LS1 4DL
|
|
|
|
|
|
UK
Telephone: 0371 664 0300
International
Telephone: +44 371 664 0300
(Calls are
charged at the standard geographic rate and will vary by provider.
Calls outside the United Kingdom will be charged at the applicable
international rate)
Lines are
open between 8.00am and 5.30pm, Monday to Friday, excluding public
holidays in England and Wales.
Website: www.linkgroup.eu
E-mail:
shareholderenquiries@linkgroup.co.uk
|
|
|
|
Company registration number
|
|
341829 (England and Wales)
|
|
|
|
|
|
Website
|
|
www.lap.co.uk
|
|
|
|
E-mail
|
|
admin@lap.co.uk
|