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London & Associated Properties Plc - Half-year Report

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·25-min read
In this article:
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FOR IMMEDIATE RELEASE

31 August 2021

LONDON & ASSOCIATED PROPERTIES PLC

HALF YEAR RESULTS TO 30 JUNE 2021

London & Associated Properties PLC (“LAP” or “the Group”) is a main market listed property investment group that specialises in industrial and community retail.

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 are £29.2 million (December 2020: £29.9 million).

  • Losses before tax of £0.9 million (June 2020: £2.9 million).

  • Radcliffe retail property sold for £1.8 million (£1.65 million book value December 2020), with ongoing property management role.

  • Good progress on recovery of tenant arrears now that COVID lockdown restrictions have been lifted:

    • Second quarter rents received: 83% (June 2020: 82%)

    • Third quarter rents received to date: 70% (June 2020: 55%)

  • Total property portfolio seeing improved performance with Group occupancy levels of 95.4% by rental income (June 2020: 92.0%).

  • JV development in West Ealing, with Metroprop Real Estate Limited:

    • Planning approval documents being finalised following agreed consent for 56 flats.

“While this has been a difficult period, we are beginning to see the light at the end of the tunnel. As we have stated rent collection is improving strongly and we are making real progress in diversifying our portfolio into non-retail areas. At the same time great strides have been made, and are continuing to be made, in reducing our cost base and returning to profitability. We believe the actions we have taken place LAP in the right position to take full advantage of improved market conditions as the economy strengthens. Therefore, we view the future with increasing confidence.”

-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 2021

Half year review

Our report for the six months to 30 June 2021 covers a period of significant disruption for many of our tenants’ businesses with a gradual return to more normal activity. Despite the extension of Government’s moratorium on enforcing commercial rent payments, we are pleased to report rent collections from our more community-orientated tenants reached 83% for the March quarter and for the June quarter, to date, we have collected 70% even though a number of tenants continue to pay monthly by agreement.

Revenue from property activities showed a modest increase in the period (£0.3m), although the increase in Bisichi mining revenue (£9.3m) accounted for most of the growth in Group revenue for this period. The Bisichi position is discussed separately below, after a review of the core property business.

Group losses before tax at £0.9 million are an improvement on 2020 (Losses of £2.9 million) and we continue with our efforts to improve performance.

Since reopening after lockdown all tenants apart from one are paying rent and making progress on any arrears that have accumulated. We are in the process of taking legal action against the non-paying tenant.

Of the current 4.6% of vacancies by rental income, one unit in Runcorn has now been refurbished and is currently being marketed while another unit in Sheffield is planned to be part of future development activities. These two units comprise 2.9% of the total vacancies.

At Orchard Square, Sheffield our development activities are progressing well. Construction of the food court, Sheffield Plate, is complete. Demand for units from street food operators has been strong, with the opening scheduled for September. This development will be managed by Market Asset Management, one of the UK’s foremost operators of food halls and will further position the property as a mixed-use asset.

We have seen a small number of tenants go through administration or insolvency during the period, but in all cases we have relet the units at similar rents to the same brands, as they have come out of administration or restructuring.

We continue to progress our overhead cutting initiatives which commenced two years ago. These are now providing positive cashflow and profitability outcomes. As our central London office lease nears its end, we are looking to reduce our cost base even further by operating from offices more suitable to our restructured core activities.

During the period, we sold our retail property in Radcliffe for £1.8 million to the council, against a December 2020 book value of £1.65 million. We are continuing to manage the property, for a fixed fee over the next two years, as we support the council with its regeneration of the town centre. £1.0 million of the proceeds remain charged against a property loan facility.

In August, contracts were exchanged for the unconditional £2.35 million sale of a large industrial unit in Runcorn against a December 2020 valuation of £2.5 million. This uncharged property was purchased for £1.6 million in 2018, with £0.1 million net being spent on refurbishment.

The proceeds from these sales will be reinvested into the business to continue our portfolio diversification strategy and we are examining suitable investment opportunities.

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

At West Ealing, we are finalising the planning approval documents following planning consent obtained in November 2020 for the development of 56 flats and ground floor retail.

Within the next 12 months the 25-year £10 million, 8.109% Aviva debenture will be refinanced. We are making preparations for this event which will provide us with an opportunity to reduce our interest costs and further improve profitability and cashflow.

During the period an extension of the Dragon Retail Properties loan with Santander to October 2021 was secured. Santander offered terms for a further loan and we are exploring available options for the refinancing.

Bisichi PLC, which is 42% owned, has seen an improvement in global economic activity in the first half of 2021. During the period, this improvement had a significant impact on demand for coal in the international market. In the first six months of 2021, the average weekly price of Free on Board (FOB) coal from Richard Bay Coal Terminal (API4 price) averaged US$97, compared to $67 in the first six months of 2020, when demand for coal was particularly impacted by the outbreak of Covid-19. This has had a positive impact on the Bisichi operations, particularly the South African coal mining and processing operations. As a result, in the six months ended 30 June 2021, Bisichi made a loss before tax of £0.5 million (2020: loss of £1.9 million) from revenue of £23.6 million (2020: £14.3 million).

Bisichi’s results would have been even better if they had not encountered difficult mining conditions at Black Wattle, the South African mining operation, which impacted adversely coal production during the period. Nonetheless, the mine achieved production of 553,000 metric tonnes compared to 580,000 metric tonnes in the first half of 2020. Black Wattle’s operating costs during the period were also impacted by the difficult mining conditions, as well as the higher overall cost of mining of the remaining reserves at Black Wattle’s current mining area. This mainly accounts for the increase in Bisichi’s operating costs during the reported period.

Despite lower output from Black Wattle, at Sisonke Coal Processing, the South African coal processing operation, Bisichi was able to take advantage of the improved coal price by reducing stockpiles of coal that had built up during the economic downturn of 2020. The overall increase in revenue and earnings during the first half of the year is attributable mainly to the coal processing operations.

Looking forward, Bisichi’s overall mining production in the second half of 2021 is expected to remain at similar levels to the first half of the year. However, plans are in place to move into a new mining area at Black Wattle by the end of 2021, where mining conditions and production are expected to improve. In the interim, Bisichi will look to keep costs as low as possible while developing new opportunities for Sisonke Coal Processing, to take advantage of the improved coal market conditions seen in 2021 to date. In addition, Bisichi continues to work closely with their BEE partner in South Africa, to seek further opportunities to extend the life of the existing mining operations or to develop new independent mining operations in South Africa.

We are not paying a dividend for the half year. Our strategy is to maximise income over the medium term by moving the emphasis away from retail, replacing high cost finance and judicious cost cutting. This is beginning to show results and our dividend policy will reflect this, once our cash has been reinvested and our income has returned to previous levels.

While this has been a difficult period, we are beginning to see the light at the end of the tunnel. As we have stated, rent collection is improving strongly and we are making real progress in diversifying our portfolio into non-retail areas. At the same time great strides have been made, and are continuing to be made, in reducing our cost base and returning to profitability. We believe the actions we have taken place LAP in the right position to take full advantage of improved market conditions as the economy strengthens. Therefore, we view the future with increasing confidence.

Sir Michael Heller John Heller

Chairman Chief Executive

31 August 2021

Consolidated income statement

for the six months ended 30 June 2021

6 months

6 months

Year

ended

ended

ended

30 June

30 June

31 December

2021

2020

2020

(unaudited)

(unaudited)

(audited)

Notes



£’000



£’000



£’000

Group revenue

1

26,518

16,917

35,018

Operating costs

(26,587)

(18,164)

(39,942)

Operating loss

1

(69)

(1,247)

(4,924)

Finance income

2

12

24

30

Finance expenses

2

(1,403)

(1,389)

(2,869)

Result before valuation and other movements

(1,460)

(2,612)

(7,763)

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


Exchange gains
Decrease in value of investment properties


-
-


-
-


39
(2,269)

Increase in value of other investments

-

-

67

Increase/(decrease) in value of trading investments

376

(261)

(20)

Adjustment to interest rate derivative

60

-

(200)

Gains on sale of investment properties

121

-

-

Result including revaluation and other movements

(903)

(2,873)

(10,146)

Loss for the period before taxation

1

(903)

(2,873)

(10,146)

Income tax (charge)/credit

3

(129)

807

1,086

Loss for the period

(1,032)

(2,066)

(9,060)

Attributable to:

Equity holders of the Company

(660)

(1,096)

(6,704)

Non–controlling interest

(372)

(970)

(2,356)

Loss for the period

(1,032)

(2,066)

(9,060)

Loss per share – basic and diluted

4

(0.77)p

(1.28)p

(7.86)p

Consolidated statement of comprehensive income

for the six months ended 30 June 2021

30 June

30 June

31 December

2021

2020

2020

(unaudited)

(unaudited)

(audited)

£'000

£'000

£’000

Loss for the period

(1,032)

(2,066)

(9,060)

Other comprehensive income:

Items that may be subsequently recycled to the income statement:

Exchange differences on translation of foreign operations

6

(467)

(464)

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

6

(467)

(464)

Total comprehensive expense for the period, net of tax

(1,026)

(2,533)

(9,524)

Attributable to:

Equity shareholders

(608)

(490)

(6,866)

Non–controlling interest

(418)

(2,043)

(2,658)

(1,026)

(2,533)

(9,524)

Consolidated balance sheet

at 30 June 2021

30 June

30 June

31 December

2021

2020

2020

(unaudited)

(unaudited)

(audited)

Notes

£'000

£'000

£'000

Non–current assets

Market value of properties attributable to Group

40,970

44,580

42,640

Right of use assets

3,249

4,066

3,344

Property

5

44,219

48,646

45,984

Mining reserves, plant and equipment

10,366

8,904

10,986

Other investments at fair value

2,721

449

1,746

Deferred tax

-

779

-

57,306

58,778

58,716

Current assets

Inventories – mining

2,592

4,552

3,445

Inventories – property

5

25,366

26,915

25,013

Trade and other receivables

10,035

9,033

8,190

Investments in listed securities at fair value

923

926

833

Cash and cash equivalents

8,299

9,554

7,194

47,215

50,980

44,675

Total assets

104,521

109,758

103,391

Current liabilities

Trade and other payables

(19,708)

(14,323)

(16,133)

Borrowings

(9,568)

(9,739)

(10,274)

Lease liabilities

(432)

(402)

(514)

Current tax liabilities

(1)

(317)

(209)

(29,709)

(24,781)

(27,130)

Non–current liabilities

Borrowings

(30,926)

(31,907)

(30,853)

Interest rate derivatives
Lease liabilities

(140)
(3,665)

-
(3,733)

(200)
(3,865)

Provisions

(1,461)

(1,359)

(1,442)

Deferred tax liabilities

(193)

(1,441)

(355)

(36,385)

(38,440)

(36,715)

Total liabilities

(66,094)

(63,221)

(63,845)

Net assets

38,427

46,537

39,546

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)

(1,031)

(1,034)

(1,030)

Capital redemption reserve

47

47

47

Retained earnings (excluding treasury shares)

16,907

23,175

17,567

Treasury shares

(144)

(144)

(144)

Retained earnings

16,763

23,031

17,423

Total equity attributable to equity shareholders

29,199

35,464

29,860

Non – controlling interest

9,228

11,073

9,686

Total equity

38,427

46,537

39,546

Net assets per share

6

34.22

41.56

34.99

Diluted net assets per share

6

34.22

41.56

34.99

Consolidated statement of changes in shareholders’ equity

for the six months ended 30 June 2021

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 2020

8,554

4,866

(868)

47

(144)

24,271

36,726

12,407

49,133

Loss for the period

-

-

-

-

-

(1,096)

(1,096)

(970)

(2,066)

Other comprehensive income:

Currency translation

-

-

(166)

-

-

-

(166)

(301)

(467)

Total other comprehensive income

-

-

(166)

-

-

-

(166)

(301)

(467)

Total comprehensive expense

-

-

(166)

-

-

(1,096)

(1,262)

(1,271)

(2,533)

Transactions with owners:

Dividends – non–controlling
Interests

-

-

-

-

-

-

-

(63)

(63)

Transactions with owners

-

-

-

-

-

-

-

(63)

(63)

Balance at 30 June 2020 (unaudited)

8,554

4,866

(1,034)

47

(144)

23,175

35,464

11,073

46,537

8,554

4,866

(1,034)

47

(144)

23,175

35,464

11,073

46,537

Balance at 1 January 2020

8,554

4,866

(868)

47

(144)

24,271

36,726

12,407

49,133

Loss for the year

-

-

-

-

-

(6,704)

(6,704)

(2,356)

(9,060)

Other comprehensive income:

Currency translation

-

-

(162)

-

-

-

(162)

(302)

(464)

Total other comprehensive expense

-

-

(162)

-

-

-

(162)

(302)

(464)

Total comprehensive expense

-

-

(162)

-

-

(6,704)

(6,866)

(2,658)

(9,524)

Transaction with owners:

Dividends – non–controlling
Interests

-

-

-

-

-

-

-

(63)

(63)

Transactions with owners

-

-

-

-

-

-

-

(63)

(63)

Balance at 31 December 2020
(audited)

8,554

4,866

(1,030)

47

(144)

17,567

29,860

9,686

39,546

Consolidated statement of changes in shareholders’ equity - continued

for the six months ended 30 June 2021

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 income

-

-

(1)

-

-

-

(661)

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

Consolidated cash flow statement

for the six months ended 30 June 2021

6 months

6 months

Year

ended

ended

ended

30 June

30 June

31 December

2021

2020

2020

(unaudited)

(unaudited)

(audited)

£'000

£'000

£'000

Operating activities

Loss for the year before taxation

(903)

(2,873)

(10,146)

Finance income

(12)

(24)

(30)

Finance expense

1,403

1,388

2,869

Decrease in value of investment properties

-

-

2,269

Write off investments in joint venture

-

-

(47)

Adjustment to interest rate derivative

(60)

-

200

Depreciation

1,457

1,488

2,455

Profit on sale of investment properties

(121)

-

-

Exchange adjustments

9

206

(39)

Change in inventories

538

(2,589)

1,173

Development expenditure on inventories

-

(398)

Change in receivables

(1,305)

(377)

(380)

Change in payables

2,224

2,297

3,717

Cash generated from operations

3,230

(484)

1,643

Income tax paid

(211)

(72)

(198)

Cash inflows/(outflows) from operating activities

3,019

(556)

1,445

Investing activities

Acquisition of investment properties, mining reserves, plant and equipment

(706)

(1,849)

(3,515)

Sale of investment properties

1,791

-

-

Disposal of other investments
Acquisition of other investments

-
(689)

-
(230)

253
(1,379)

Interest received

12

24

30

Cash inflows/(outflows) from investing activities

408

(2,055)

(4,611)

Financing activities

Interest paid

(1,379)

(1,401)

(2,675)

Interest on obligation under finance leases

(16)

(19)

(178)

Receipt of bank loan – Bisichi PLC

130

126

61

Repayment of bank loan – Bisichi PLC

(272)

(144)

(200)

Receipt of bank loan – London & Associated Properties PLC

352

40

105

Repayment of bank loan – London & Associated Properties PLC

(88)

(158)

(169)

Repayment of lease liability

(132)

(101)

(231)

Equity dividends paid – non–controlling interests

-

(63)

(63)

Cash outflows from financing activities

(1,405)

(1,720)

(3,350)

Consolidated cash flow statement - continued

for the six months ended 30 June 2021

6 months

6 months

Year

ended

ended

ended

30 June

30 June

31 December

2021

2020

2020

(unaudited)

(unaudited)

(audited)

£'000

£'000

£'000

Net increase/(decrease) in cash and cash equivalents

2,022

(4,331)

(6,516)

Cash and cash equivalents at beginning of period

2,348

8,691

8,691

Exchange adjustment

(40)

481

173

Cash and cash equivalents at end of period

4,330

4,841

2,348

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)

8,299

9,554

7,194

Bank overdrafts

(3,969)

(4,713)

(4,846)

Cash and cash equivalents at end of period

4,330

4,841

2,348

Notes to the half year report
for the six months ended 30 June 2021

1. Segmental analysis

6 months

6 months

Year

ended

ended

ended

30 June

30 June

31 December

2021

2020

2020

(unaudited)

(unaudited)

(audited)

£'000

£'000

£'000

Revenue

LAP

- - Rental Income

2,372

2,205

4,377

- - Service charge income

411

348

795

- - Management income from third parties

9

21

18

Bisichi

- - Rental Income

497

503

919

- - Service charge income

79

32

156

- - Mining

23,045

13,729

28,624

- Dragon

- - Rental Income
- - Service charge income

82
23

79
-

108
21

26,518

16,917

35,018

Operating (loss)/profit

LAP

397

92

(1,877)

Bisichi

(517)

(1,399)

(3,139)

Dragon

51

60

92

(69)

(1,247)

(4,924)

(Loss)/profit before taxation

LAP

(409)

(967)

(4,956)

Bisichi

(524)

(1,950)

(4,944)

Dragon

30

44

(246)

(903)

(2,873)

(10,146)

2. Finance costs

6 months

6 months

Year

ended

ended

ended

30 June

30 June

31 December

2021

2020

2020

(unaudited)

(unaudited)

(audited)

£'000

£'000

£'000

Finance income

12

24

30

Finance expenses:

Interest on bank loans and overdrafts

(947)

(855)

(1,615)

Other loans

(430)

(430)

(968)

Interest on obligations under finance leases

(26)

(104)

(286)

Total finance expenses

(1,403)

(1,389)

(2,869)

(1,391)

(1,365)

(2,839)

Notes to the half year report – continued

3. Income tax

6 months

6 months

Year

ended

ended

ended

30 June

30 June

31 December

2021

2020

2020

(unaudited)

(unaudited)

(audited)

£'000

£'000

£'000

Current tax

(14)

6

32

Deferred tax

143

(813)

(1,118)

129

(807)

(1,086)


4. Earnings per share

6 months

6 months

Year

ended

ended

ended

30 June

30 June

31 December

2021

2020

2020

(unaudited)

(unaudited)

(audited)

Loss attributable to equity shareholders after tax (£’000)

(660)

(1,096)

(6,704)

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

85,326

85,322

85,325

Basic earnings per share

(0.77)p

(1.28)p

(7.86)p

Diluted number of shares in issue ('000)

85,326

85,322

85,325

Diluted earnings per share

(0.77)p

(1.28)p

(7.86)p

5. Properties

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

During the period one property was sold for a gross sales value of £1.8 million. This property was valued at £1.65 million at 31 December 2020 and after costs there was a profit on sale of £0.1 million.

Management evaluate on an ongoing basis the impact of Covid-19 and the current economic performance of the UK property market on the future performance of the group’s existing UK property portfolio. The Board considers the final impact of Covid-19 on the investment properties to remain uncertain. However, the Directors have placed a valuation on the properties which is not materially different to the value as at 31 December 2020. Therefore, no change in fair value of investment properties has been made during the period. Investment properties are therefore included at a Director’s valuation which is considered to be the fair value as at 30 June 2021. Please refer to page 43 of the 2020 Annual report and Accounts for details on the valuation of investment and inventory properties as at 31 December 2020.

6. Net assets per share

30 June

30 June

31 December

2021

2020

2020

(unaudited)

(unaudited)

(audited)

Shares in issue ('000)

85,326

85,322

85,325

Net assets attributable to equity shareholders (£'000)

29,199

35,464

29,860

Basic net assets per share

34.22p

41.56p

34.99p

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

85,326

85,322

85,325

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

29,199

35,464

29,860

Fully diluted net assets per share

34.22p

41.56p

34.99p

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 2020.

8. Dividends

There is no interim dividend payable for the period (30 June 2020: Nil).

There is no final dividend payable in respect of 2020.

9. Risks and uncertainties

The group’s principal risks and uncertainties are reported on pages 10 and 11 in the 2020 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 2020 and no impairment was considered appropriate. Although the final impact of Covid-19 remains uncertain, the directors of Bisichi have assessed the expected range of impact of the Covid-19 pandemic on its impairment model using similar key assumptions and estimates as outlined on page 60 of the 2020 Annual report and Accounts, and no impairment was considered appropriate as at 30 June 2021.

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 2020.

10. 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 2020 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 2021 as were used for the year ended 31 December 2020.

As stated in the 2020 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. Although the final impact of Covid-19 on both our UK and South African operations remains uncertain and an estimate of the overall financial effect cannot be made, the Directors have assessed the range of expected impact of the pandemic on its cashflow forecasts. The forecasts demonstrate that the group has adequate resources to continue in operational existence for the foreseeable future and is well placed to manage its business risks.

11. Board approval

The half year results were approved by the Board of London & Associated Properties PLC on 31 August 2021.

Directors' responsibility statement

The Directors confirm that to the best of their knowledge:

(a) the condensed set of financial statements have been prepared in accordance with applicable accounting standards and IAS 34 Interim Financial Reporting as adopted by the 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 2020 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 2021

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

24 Bruton Place,

London W1J 6NE

Registrars & transfer office

Link Group
Shareholder Services

10th Floor 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 09:00 - 17:30, Monday to Friday excluding public holidays in England and Wales)

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

Company registration number

341829 (England and Wales)

Website

www.lap.co.uk

E-mail

admin@lap.co.uk

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