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London & Associated Properties Plc - Half-year Report

·26-min read

FOR IMMEDIATE RELEASE

31 August 2022

LONDON & ASSOCIATED PROPERTIES PLC

HALF YEAR RESULTS TO 30 June 2022

London & Associated Properties PLC (“LAP” or the “Group”) is a main market listed property investment group that specialises in industrial and essential retail property. It also holds a substantial stake in the main market listed Bisichi PLC which operates coal mines in South Africa and owns UK property investments.

HIGHLIGHTS

  • Net assets attributable to shareholders –

    • Increase by 17% to £34.2 million (£29.7 million December 2021)

    • Now 40.04p per share (December 2021 34.78p per share)

    • Exceptional results from Bisichi add £4.7 million to value of LAP’s investment

  • Property changes move business further away from traditional retail –

    • West Bromwich retail centre sold on 29 July 2022 for December valuation of £4.75 million

    • Rugeley retail arcade sold at book value for £0.5 million

    • Industrial portfolio in Warrington acquired for £2.37 million

    • Following planning approval for 56 flats at JV development in West Ealing we are progressing the development design work

  • Property portfolio seeing continued strong performance with Group occupancy levels of 97.6% by rental income (June 2021: 95.4%).

  • Re-financing in August 2022 replaces 25-year £10 million debenture and 10-year £3.5 million bank loan with new £13.6 million 5-year facility.

“We are pleased to report on the six months to 30 June 2022, during which we made significant progress within LAP. We sold a number of ex-growth properties including Kings Square, West Bromwich, our last remaining covered shopping centre, and Brewery Street Arcade in Rugeley. These properties did not meet our criteria and banks have demonstrated consistently that they are not prepared to lend at commercially acceptable rates on assets of this type. Following these disposals, our portfolio is much more readily fundable and well positioned to maintain and grow future income. Future acquisitions will follow this strategy. We also refinanced a large portion of the existing portfolio.”

-more-


Contact:

London & Associated Properties PLC Tel: 020 7415 5000
John Heller, Chief Executive

Baron Phillips Associates Tel: 07767 444193
Baron Phillips



Half year results for the period ended 30 June 2022

Half year review

We are pleased to report on the six months to 30 June 2022, during which we made significant progress within LAP. We sold a number of ex-growth properties including Kings Square, West Bromwich, our last remaining covered shopping centre, and Brewery Street Arcade in Rugeley. These properties did not meet our criteria and banks have demonstrated consistently that they are not prepared to lend at commercially acceptable rates on assets of this type. Following these disposals, our portfolio is much more readily fundable and well positioned to maintain and grow future income. Future acquisitions will follow this strategy. We also refinanced a large portion of the existing portfolio.

Consolidated Group revenue increased by 82% to £48.1 million from £26.5 million in the same period last year. Revenue from mining (£44.8 million versus £23.0 million) is discussed further in commentary about Bisichi below.

Revenue from property activities fell slightly to £3.3 million (2021: £3.5 million), as a consequence of lower income during periods between property disposals and subsequent acquisitions.

Group profits attributable to shareholders were £4.3 million (2021: losses of £0.7 million) with £4.8 million profit from Bisichi offset by a small loss in LAP as the company transitions its property portfolio and returns to profitability.

Of the current 2.4% of vacancies by rental income, 1.4% is accounted for by one unit in Sheffield which is being held vacant to enable future development activity.

At Orchard Square, Sheffield we continue to reposition the asset from a retail-led site towards a more mixed-use and food-focused venue. We have completed a letting to an independent pizza and cocktails chain of restaurants replacing a mid-market fashion outlet and are in detailed negotiations with a number of similar operators to enhance the offer at the centre. Elsewhere, we have agreed with Sheffield Council grants for upgrading the public areas and residential development, with lawyers now instructed by both sides.

We continue to cut overheads which is providing positive cashflow and profitability. We have relocated our central London offices to a more modern and cost-efficient space.

During the period, we sold our Rugeley arcade for the December 2021 book value of £0.5 million. The reinvestment of this cash has also had a positive effect on cashflow.

During the period we acquired an industrial portfolio in Warrington for £2.37 million from free cash. We believe the portfolio offers good prospects for rental growth, together with a number of value enhancing asset management opportunities.

In June we announced the sale of Kings Square, West Bromwich, our last remaining covered shopping centre, to the local council for the December 2021 book value of £4.75 million. The proceeds of this sale, which completed in July, were placed on deposit with funder Aviva and released following the refinancing in August and will be used to make further acquisitions of properties that support our ongoing strategy.

As opportunities arise, we will sell other properties that do not meet our core investment criteria. We are in discussions with interested parties on a number of retail properties enabling us to move our portfolio further away from this sector.

At our development site in West Ealing, we continue to explore options to realise the value from the planning consent for 56 flats we obtained in 2021. These options include marketing the consented land for sale which we have explored. However, the well-publicised inflation in building costs experienced across the development industry has proved a stumbling block to obtaining the value we seek as purchasers were understandably conservative. Therefore we continue to progress the development, including working up detailed design drawings and negotiating with potential contractors. A final decision on whether to we will develop this asset ourselves or sell it has yet to be taken.

The 25-year £10 million, 8.109% Aviva debenture was refinanced in August together with the 10-year £3.5 million Metro Bank loan. These loans have been replaced by a new 5-year loan with QIB (UK) plc for £13.6 million. This will generate an initial net operating cashflow improvement of £0.2m per annum. Security for the new loan comprises the properties held as security by Aviva and Metro and two uncharged properties, with an initial LTV of 56%. £5.6 million of free cash was released back to the company as a result of this transaction, which will be reinvested in our portfolio diversification programme and we are examining suitable investment opportunities.

During the period an extension of the Dragon Retail Properties loan with Santander to October 2022 was secured. We have received an offer for longer term finance for this property and are progressing this. This property continues to produce strong net cash flow.

We have exercised the option to extend the £13.2 million loan with Phoenix CRE S.à.r.l, secured on our Sheffield property, to September 2023, while we complete the latest stage of development activity.

Bisichi PLC, which is 42% owned, has seen strong performance from Sisonke Coal Processing, its South African coal processing operation which benefited from significantly higher prices of Free on Board (FOB) coal from Richards Bay Coal Terminal (API4 price). During the period, the weekly API4 price averaged US$277 compared to US$97 in the first half of 2021 and US$151 in the second half the year. Despite constraints largely beyond Bisichi’s control in transporting coal for export on the South African rail network, it was able to take advantage of the improved international coal price by increasing export sales during the first half of the year to 177,000 metric tonnes, compared to 171,000 metric tonnes in the first half of 2021 and 320,000 metric tonnes overall in 2022.

Bisichi’s results would have been even better if it had not encountered operational delays that impacted the transition into new mining areas at Black Wattle, which in turn adversely impacted coal production. During the period the mine achieved production of 301,000 metric tonnes compared to 553,000 metric tonnes in the first half of 2021. Bisichi is pleased to report that these delays have now been addressed successfully and in July the transition into the new mining areas was completed. Consequently, Bisichi expects mining production to recover in the second half of the year to the levels seen in 2021. The increases evident on the balance sheet in mining reserves, plant and equipment is mainly attributable to the costs of completing the development of these new mining areas which will be mined throughout the remainder of 2022 and 2023.

Despite the lower coal production from Black Wattle, at Sisonke Coal Processing Bisichi was able to maintain its overall levels of coal processed. During the period Bisichi sold 614,000 metric tonnes (2021: 731,000 metric tonnes) and reported £44.7million in mining revenue (2021: £23.0million) with the higher prices achievable for coal offsetting the lower overall quantity of coal sold.

Looking forward into the second half of 2022, Bisichi is already beginning to see the benefits from mining new areas at Black Wattle. This is mainly due to the higher quality coal being mined which is currently in high demand in both export and domestic markets. As a result, Bisichi is pleased to report that, in the second half of the year to date, it has achieved significant improvements in prices for coal in the domestic market. In the export market, the API4 price continues to remain at levels similar to the first half of 2022 and exports for the year to date are in line with the average export tonnages achieved in 2021. However, looking beyond the year to date, uncertainties remain. These are particularly with regard to the sustainability of the higher coal prices in both our markets, as well as the impact of continued constraints in transporting coal for export on the South African rail network.

LAP has made significant progress during the period. The Board of LAP bases its decisions on 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. Once our cash has been reinvested and property income has returned to previous levels, our dividend policy will reflect this.

Sir Michael Heller John Heller
Chairman Chief Executive

31 August 2022




Consolidated income statement

for the six months ended 30 June 2022

6 months

6 months

Year

ended

ended

ended

30 June

30 June

31 December

2022

2021

2021

(unaudited)

(unaudited)

(audited)

Notes



£’000



£’000



£’000

Group revenue

1

48,076

26,518

56,477

Operating costs

(26,236)

(26,587)

(53,457)

Operating profit/(loss)

1

21,840

(69)

3,020

Finance income

2

40

12

34

Finance expenses

2

(1,470)

(1,403)

(2,543)

Result before valuation and other movements

20,410

(1,460)

511

Non–cash changes in valuation of assets and liabilities and other movements

Exchange losses

-

-

(121)

Decrease in value of investment properties

(200)

-

(111)

Loss on disposal of fixed assets

-

-

(133)

Increase in value of trading investments

49

376

812

Adjustment to interest rate derivative

70

60

130

Profits on disposal of investment properties

-

121

436

Result including revaluation and other movements

20,329

(903)

1,524

Profit/(loss) for the period before taxation

1

20,329

(903)

1,524

Income tax charge

3

(5,646)

(129)

(698)

Profit/(loss) for the period

14,683

(1,032)

826

Attributable to:

Equity holders of the Company

4,293

(660)

(152)

Non–controlling interest

10,390

(372)

978

Profit/(loss) for the period

14,683

(1,032)

826

Profit/(loss) per share – basic and diluted

4

5.03p

(0.77)p

(0.18)p




Consolidated statement of comprehensive income

for the six months ended 30 June 2022

30 June

30 June

31 December

2022

2021

2021

(unaudited)

(unaudited)

(audited)

£'000

£'000

£’000

Profit/(loss) for the period

14,683

(1,032)

826

Other comprehensive income:

Items that may be subsequently recycled to the income statement:

Exchange differences on translation of foreign operations

565

6

(63)

Other comprehensive income/(expense) for the period, net of tax

565

6

(63)

Total comprehensive income /(expense) for the period, net of tax

15,248

(1,026)

763

Attributable to:

Equity shareholders

4,496

(608)

(177)

Non–controlling interest

10,752

(418)

940

15,248

(1,026)

763




Consolidated balance sheet

at 30 June 2022

30 June

30 June

31 December

2022

2021

2021

(unaudited)

(unaudited)

(audited)

Notes

£'000

£'000

£'000

Non–current assets

Market value of properties attributable to Group

35,725

40,970

37,945

Present value of head leases

3,221

3,249

3,221

Property

5

38,946

44,219

41,166

Mining reserves, property, plant and equipment

15,100

10,366

9,917

Other investments at fair value through profit and loss (“FVPL”)

6,418

2,721

3,631

60,464

57,306

54,714

Current assets

Inventories – Property

5

25,493

25,366

25,213

Inventories – Mining

4,189

2,592

1,253

Assets held for sale

4,550

-

504

Trade and other receivables

10,604

10,035

9,917

Corporation tax recoverable

-

-

19

Investments in listed securities held at FVPL

1,209

923

685

Cash and cash equivalents

7,816

8,299

8,518

53,861

47,215

46,109

Total assets

114,325

104,521

100,823

Current liabilities

Trade and other payables

(13,546)

(19,708)

(15,197)

Borrowings

(36,151)

(9,568)

(31,405)

Lease liabilities

(201)

(432)

(513)

Interest rate derivatives

-

-

(70)

Current tax liabilities

(1,657)

(1)

(726)

(51,555)

(29,709)

(47,911)

Non–current liabilities

Borrowings

(3,932)

(30,926)

(7,259)

Interest rate derivatives

-

(140)

-

Lease liabilities

(3,866)

(3,665)

(3,734)

Provisions

(1,609)

(1,461)

(1,391)

Deferred tax liabilities

(57)

(193)

(309)

(9,464)

(36,385)

(12,693)

Total liabilities

(61,019)

(66,094)

(60,604)

Net assets

53,306

38,427

40,219

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)

(851)

(1,031)

(1,055)

Capital redemption reserve

47

47

47

Retained earnings (excluding treasury shares)

21,708

16,907

17,415

Treasury shares

(144)

(144)

(144)

Retained earnings

21,464

16,763

17,271

Total equity attributable to equity shareholders

34,180

29,199

29,683

Non – controlling interest

19,126

9,228

10,536

Total equity

53,306

38,427

40,219

Net assets per share attributable to equity shareholders

6

40.04p

34.22p

34.78p




Consolidated statement of changes in shareholders’ equity

for the six months ended 30 June 2022

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 2021

8,554

4,866

(1,030)

47

(144)

17,567

29,860

9,686

39,546

Loss for the period

-

-

-

-

-

(660)

(660)

(372)

(1,032)

Other comprehensive income:

Currency translation

-

-

(1)

-

-

-

(1)

4

3

Total other comprehensive (expense)/income

-

-

(1)

-

-

-

(1)

4

3

Total comprehensive expense

-

-

(1)

-

-

(660)

(661)

(368)

(1,029)

Transactions with owners:

Dividends – non–controlling
Interests

-

-

-

-

-

-

-

(90)

(90)

Transactions with owners

-

-

-

-

-

-

-

(90)

(90)

Balance at 30 June 2021 (unaudited)

8,554

4,866

(1,031)

47

(144)

16,907

29,199

9,228

38,427

Balance at 1 January 2021

8,554

4,866

(1,030)

47

(144)

17,567

29,860

9,686

39,546

(Loss)/profit for the year

-

-

-

-

-

(152)

(152)

978

826

Other comprehensive income:

Currency translation

-

-

(25)

-

-

-

(25)

(38)

(63)

Total other comprehensive expense

-

-

(25)

-

-

-

(25)

(38)

(63)

Total comprehensive expense

-

-

(25)

-

-

(152)

(177)

940

763

Transaction with owners:

Dividends – non–controlling
Interests

-

-

-

-

-

-

-

(90)

(90)

Transactions with owners

(90)

(90)

Balance at 31 December 2021
(audited)

8,554

4,866

(1,055)

47

(144)

17,415

29,683

10,536

40,219




Consolidated statement of changes in shareholders’ equity - continued

for the six months ended 30 June 2022

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 2022

8,554

4,866

(1,055)

47

(144)

17,415

29,683

10,536

40,219

Profit for the period

-

-

-

-

-

4,293

4,293

10,390

14,683

Other comprehensive income:

-

-

-

-

-

-

-

-

-

Currency translation

-

-

204

-

-

-

204

362

566

Total other comprehensive income

-

-

204

-

-

-

204

362

566

Total comprehensive income

-

-

204

-

-

4,293

4,497

10,752

15,249

Transactions with owners:

Dividends – non-controlling interests

-

-

-

-

-

-

-

(2,162)

(2,162)

Transactions with owners

-

-

-

-

-

-

-

(2,162)

(2,162)

Balance at 30 June 2022 (unaudited)

8,554

4,866

(851)

47

(144)

21,708

34,180

19,126

53,306




Consolidated cash flow statement

for the six months ended 30 June 2022

6 months

6 months

Year

ended

ended

ended

30 June

30 June

31 December

2022

2021

2021

(unaudited)

(unaudited)

(audited)

£'000

£'000

£'000

Operating activities

Profit/(loss) for the year before taxation

20,329

(903)

1,524

Finance income

(40)

(12)

(34)

Finance expense

1,470

1,403

2,543

Decrease in value of investment properties

-

-

111

Increase in value of trading investments

-

-

(812)

Expenditure on trading property

(260)

-

-

Adjustment to interest rate derivative

(70)

(60)

(130)

Profit on sale of investment properties

-

-

(436)

Depreciation

884

1,457

2,815

Profit on disposal of non-current assets

200

-

133

Sale of inventory – property (net of costs)

-

(121)

-

Exchange adjustments

37

9

121

Change in inventories

(2,803)

538

2,921

Development expenditure on inventories

-

-

(1,016)

Change in receivables

766

(1,305)

(1,813)

Change in payables

(2,813)

2,224

(107)

Cash generated from operations

17,700

3,230

5,820

Income tax paid

(5,554)

(211)

(216)

Cash inflows from operating activities

12,146

3,019

5,604

Investing activities

Disposal of assets held for sale

504

-

-

Acquisition of investment properties, mining reserves, plant and equipment

(7,994)

(706)

(1,871)

Sale of investment properties

-

1,791

4,219

Disposal of other investments

-

-

705

Acquisition of other investments

(3,262)

(689)

(1,630)

Interest received

40

12

34

Cash (outflows)/inflows from investing activities

(10,712)

408

1,457

Financing activities

Interest paid

(1,468)

(1,379)

(2,621)

Interest on obligation under finance leases

(17)

(16)

(199)

Receipt of bank loan – Bisichi PLC

48

130

46

Repayment of bank loan – Bisichi PLC

(150)

(262)

(317)

Repayment of bank loan – Dragon Retail Properties Ltd

(10)

(10)

(21)

Receipt of bank loan – London & Associated Properties PLC

220

352

522

Repayment of bank loan – London & Associated Properties PLC

(188)

(88)

(606)

Repayment of lease liability

(126)

(132)

(235)

Lease assignment costs paid

-

-

(101)

Equity dividends paid – non–controlling interests

(1,787)

-

-

Cash outflows from financing activities

(3,478)

(1,405)

(3,532)




Consolidated cash flow statement - continued

for the six months ended 30 June 2022

6 months

6 months

Year

ended

ended

ended

30 June

30 June

31 December

2022

2021

2021

(unaudited)

(unaudited)

(audited)

£'000

£'000

£'000

Net (decrease)/increase in cash and cash equivalents

(2,044)

2,022

3,529

Cash and cash equivalents at beginning of period

5,982

2,348

2,348

Exchange adjustment

(51)

(40)

105

Cash and cash equivalents at end of period

3,887

4,330

5,982

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)

7,816

8,299

8,518

Bank overdrafts

(3,929)

(3,969)

(2,536)

Cash and cash equivalents at end of period

3,887

4,330

5,982




Notes to the half year report
for the six months ended 30 June 2022

1. Segmental analysis

6 months

6 months

Year

ended

ended

ended

30 June

30 June

31 December

2022

2021

2021

(unaudited)

(unaudited)

(audited)

£'000

£'000

£'000

Revenue

LAP

- Rental income

2,092

2,372

5,024

- Service charge income

471

411

852

- Management income from third parties

9

9

18

Bisichi

- Rental income

543

576

904

- Service charge income

-

-

130

- Mining

44,837

23,045

49,401

Dragon
- Rental income

123

105

125

- Service charge income

1

-

23

48,076

26,518

56,477

Operating profit/(loss)

LAP

208

397

311

Bisichi

21,544

(517)

2,621

Dragon

88

51

88

21,840

(69)

3,020

(Loss)/profit before taxation

LAP

(986)

(409)

(1,273)

Bisichi

21,249

(524)

2,790

Dragon

66

30

7

20,329

(903)

1,524

2. Finance costs

6 months

6 months

Year

ended

ended

ended

30 June

30 June

31 December

2022

2021

2021

(unaudited)

(unaudited)

(audited)

£'000

£'000

£'000

Finance income

40

12

34

Finance expenses:

Interest on bank loans and overdrafts

(925)

(947)

(1,345)

Other loans

(430)

(430)

(1,121)

Interest on obligations under finance leases

(115)

(26)

(77)

Total finance expenses

(1,470)

(1,403)

(2,543)

(1,430)

(1,391)

(2,509)




Notes to the half year report – continued

3. Income tax

6 months

6 months

Year

ended

ended

ended

30 June

30 June

31 December

2022

2021

2021

(unaudited)

(unaudited)

(audited)

£'000

£'000

£'000

Current tax

6,115

(14)

731

Deferred tax

(469)

143

(33)

5,646

129

698


4. Earnings per share

6 months

6 months

Year

ended

ended

ended

30 June

30 June

31 December

2022

2021

2021

(unaudited)

(unaudited)

(audited)

Profit/(loss) attributable to equity shareholders after tax (£’000)

4,293

(660)

(152)

Weighted average number of shares in issue for the period ('000)

85,326

85,326

85,326

Basic earnings per share

5.03p

(0.77)p

(0.18)p

Diluted number of shares in issue ('000)

85,326

85,326

85,326

Diluted earnings per share

5.03p

(0.77)p

(0.18)p

5. Properties

Investment properties are held a fair value at each reporting period.

During the period one property was sold, generating net sales proceeds of £0.504 million. This property was valued at £0.504 million at 31 December 2021 and disclosed as an asset held for sale. There was no profit on sale in the period.

During the period one property was purchased for £2.37 million, excluding costs, being an industrial portfolio in Warrington.

Subsequent to the period end, on 29 July 2022, a retail property in West Bromwich was sold, generating net sale proceeds of £4.55 million. This property was revalued to the net sales proceeds achieved, generating a £200,000 downwards revaluation of the property in the period. The property was transferred to assets held for sale at 30 June 2022.

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 2021. Investment properties are therefore included at a directors’ valuation which is considered to be the fair value as at 30 June 2022. Please refer to page 44 of the 2021 Annual report and Accounts for details on the valuation of investment and inventory properties as at 31 December 2021.

6. Net assets per share

30 June

30 June

31 December

2022

2021

2021

(unaudited)

(unaudited)

(audited)

Shares in issue ('000)

85,326

85,326

85,326

Net assets attributable to equity shareholders (£'000)

34,165

29,199

29,683

Basic net assets per share

40.04p

34.22p

34.78p

Shares in issue diluted by outstanding share options ('000)

85,326

85,326

85,326

Net assets after issue of share options (£'000)

34,165

29,199

29,683

Fully diluted net assets per share

40.04p

34.22p

34.78p




Notes to the half year report - continued

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 2021.

8. Dividends

There is no interim dividend payable for the period (30 June 2021: Nil).

There is no final dividend payable in respect of 2021.

9. Risks and uncertainties

The group’s principal risks and uncertainties are reported on pages 10 and 11 in the 2021 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 2021 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 of key estimates and judgements as disclosed in the annual report as at 31 December 2021.

10. Subsequent Events

On 29 July 2022 the group sold its interest in a retail property in West Bromwich for gross sales proceeds of £4.75 million.

On 25 August 2022, the group repaid its 25-year £10 million debenture with Aviva at 8.109%, as it fell due, and a loan with Metro Bank, with a remaining balance of £3.5 million at BoE base rate plus 2.95%, and executed a 5-year £13.6 million floating rate loan with QIB (UK) PLC at BoE base rate plus 3.95%, secured against its investment properties.

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 2021 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 2022 as were used for the year ended 31 December 2021.

As stated in the 2021 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 30 August 2022.




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 (i) UK-adopted International Accounting Standard 34, Interim Financial Reporting, (ii) International Accounting Standard 34, Interim Financial Reporting, as published by the International Accounting Standards Board (IASB) and (iii) International Accounting Standard 34, Interim Financial Reporting, as adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union (EU);

(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 7 and 8 of the 2021 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 31 August 2022

Sir Michael Heller Jonathan Mintz
Director Director





Directors and advisors

Directors

Executive directors

* Sir Michael Heller MA FCA (Chairman)

John A Heller LLB MBA (Chief Executive)

Jonathan Mintz FCA (Finance Director)

Non-executive directors

† Howard D Goldring BSC (ECON) ACA

#†Clive A Parritt FCA CF FIIA

Robin Priest MA

* 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, 10th Floor
Central Square
29 Wellington Street
Leeds
LS1 4DL

UK Telephone: 0871 664 0300
(Calls cost 12p per minute plus network access charges; lines are open Monday to Friday between 9.00am and 5.30pm)
International Telephone: +44 371 664 0300
(Calls outside the United Kingdom will be charged at applicable international rate)

Lines are open between 9.00am and 5.30pm, Monday to Friday, excluding public holidays in England and Wales.

Website: www.linkassetservices.com
E-mail: enquiries@linkgroup.co.uk

Company registration number

341829 (England and Wales)

Website

www.lap.co.uk

E-mail

admin@lap.co.uk