London & Associated Properties Plc - Half Year Results to 30 June 2024
FOR IMMEDIATE RELEASE
HALF YEAR RESULTS TO
It also holds a substantial stake in the main market listed Bisichi PLC which operates coal mines in
HIGHLIGHTS
-- Improved profitability –
o Operating profit £3.3 million (June 2023 : loss £2.0 million)
o Profit before tax £4.2 million (June 2023 : loss £2.5 million)
-- Net assets attributable to shareholders –
o Increased to £28.6 million (December 2023 : £28.5 million)
o 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:
Baron Phillips
Half year results for the period ended
Half year review
We are pleased to report that for the six month period ended
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
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 (
As reported in our 2023 Annual Report and Accounts, LAP has relinquished its interest in
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
Our joint venture with Bisichi plc,
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
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.
Chairman and Chief Executive
Consolidated income statement
for the six months ended
6 months 6 months Year
ended ended ended
30 June 30 June 31 December
Notes
2024 2023 2023
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Group revenue 1 24,754 28,335 53,183
Operating costs (20,037) (28,708) (52,017)
Operating profit/(loss) 1 4,717 (373) 1,166
Finance income 2 115 171 332
Finance expenses 2 (1,534) (1,775) (3,646)
Result before valuation and other 3,298 (1,977) (2,148)
movements
Non–cash changes in valuation of
assets and liabilities and other
movements
Exchange losses - - (158)
Increase/(decrease) in value of - - (5)
investment properties
Profit on disposal of fixed assets - - 4
Gain/(loss) on investments held at 920 (553) 759
fair value (Bisichi)
Loss on disposal of subsidiary - - (1,930)
Decrease in value of other - - (6)
investments
Result including revaluation and 4,218 (2,530) (3,484)
other movements
Profit/(loss) for the period before 1 4,218 (2,530) (3,484)
taxation
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 4 0.06 (3.52) (4.52)
diluted
Consolidated statement of comprehensive income
for the six months ended
30 June 30 June 31 December
2024 2023 2023
(unaudited) (unaudited) (audited)
£'000 £'000 £’000
Profit/(loss) for the period 2,916 (2,762) (3,791)
Other comprehensive income:
Items that may be subsequently recycled to
the income statement:
Exchange differences on translation of 175 (874) (675)
foreign operations
Other comprehensive income/(expense) for the 175 (874) (675)
period, net of tax
Total comprehensive income/(expense) for the 3,091 (3,636) (4,466)
period, net of tax
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 30 June 31 December
2024 2023 2023
(unaudited) (unaudited) (audited)
£'000
£'000 £'000
Notes
Non–current assets
Market value of properties 35,643 35,610 35,060
attributable to Group
Present value of head leases 1,551 1,552 1,589
Property 5 37,194 37,162 36,649
Mining reserves, property, plant and 22,796 14,599 19,164
equipment
Other investments at fair value
through profit and loss (“FVPL”) 15,181 12,740 14,258
(Bisichi)
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 768 779 734
at FVPL (Bisichi)
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 16,480 17,279 16,425
shares)
Treasury shares (144) (144) (144)
Retained earnings 16,336 17,135 16,281
Total equity attributable to equity 28,587 29,288 28,490
shareholders
Non – controlling interest 22,568 20,043 19,823
Total equity 51,155 49,331 48,313
Net assets per share attributable to 6 33.50p 34.32p 33.38p
equity shareholders
Consolidated statement of changes in shareholders’ equity
for the six months ended
Retained Total
Capital earnings excluding Non–
Share Share Translation Treasury controlling Total
redemption excluding Non–
capital premium reserves shares Interests equity
reserve treasury Controlling
£’000 £’000 £’000 £’000 £’000 £’000
£’000 shares Interests
£’000 £’000
Balance at 1 8,554 4,866 (1,063) 47 (144) 20,286 32,546 21,169 53,715
January 2023
(Loss)/profit - - - - - (3,007) (3,007) 245 (2,762)
for the period
Other
comprehensive
income:
Currency - - (251) - - - (251) (623) (874)
translation
Total other
comprehensive - - (251) - - - (251) (623) (874)
income
Total
comprehensive - - (251) - - (3,007) (3,258) (378) (3,636)
income
Transactions
with owners:
Dividends –
non-controlling - - - - - - - (748) (748)
interests
Transactions - - - - - - - (748) (748)
with owners
Balance at 30
June 2023 8,554 4,866 (1,314) 47 (144) 17,279 29,288 20,043 49,331
(unaudited)
Balance at 1 8,554 4,866 (1,063) 47 (144) 20,286 32,546 21,169 53,715
January 2023
(Loss)/profit - - - - - (3,861) (3,861) 70 (3,791)
for the year
Other
comprehensive
income:
Currency - - (195) - - - (195) (480) (675)
translation
Total other
comprehensive - - (195) - - - (195) (480) (675)
expense
Total
comprehensive - - (195) - - (3,861) (4,056) (410) (4,466)
expense
Transaction
with owners:
Dividends –
non–controlling - - - - - - - (936) (936)
Interests
Transactions - - - - - - - (936) (936)
with owners
Balance at 31
December 2023 8,554 4,866 (1,258) 47 (144) 16,425 28,490 19,823 48,313
(audited)
Consolidated statement of changes in
shareholders’ equity
- continued
for the six months ended
Retained Total
Capital earnings excluding
Share Share Translation Treasury Non–controlling Total
redemption excluding Non–
capital premium reserves shares Interests equity
reserve treasury Controlling
£’000 £’000 £’000 £’000 £’000 £’000
£’000 shares Interests
£’000 £’000
Balance at 1 8,554 4,866 (1,258) 47 (144) 16,425 28,490 19,823 48,313
January 2024
Profit for the - - - - - 55 55 2,861 2,916
period
Other
comprehensive
income:
Currency - - 42 - - - 42 133 175
translation
Total other
comprehensive - - 42 - - - 42 133 175
income
Total
comprehensive - - 42 - - 55 97 2,994 3,091
income
Transactions
with owners:
Dividends –
non-controlling - - - - - - - (249) (249)
interests
Transactions - - - - - - - (249) (249)
with owners
Balance at 30
June 2024 8,554 4,866 (1,216) 47 (144) 16,480 28,587 22,568 51,155
(unaudited)
Consolidated cash flow statement
for the six months ended
6 months 6 months Year
ended ended ended
30 June 30 June 31 December
2024 2023 2023
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Operating activities
Profit/(loss) for the year before taxation 4,218 (2,530) (3,484)
Finance income (115) (171) (332)
Finance expense 1,534 1,775 3,646
Decrease in value of investment properties - - 5
Gain on investments held at FVPL (Bisichi) - - (759)
Loss on disposal of subsidiary - - 1,930
Decrease in value of other investments - 6 6
Expenditure on trading property (318) - -
Depreciation 1,761 899 1,761
Profit on disposal of non-current assets - (2) (4)
Exchange adjustments (27) 188 158
(Gain)/loss on investment held for trading (920) 553 -
Development expenditure on inventories - - (777)
Change in inventories (795) 1,572 2,046
Change in receivables (416) 728 (933)
Change in payables 1,178 (3,627) 429
Cash inflows/(outflows) generated from 6,100 (609) 3,692
operations
Income tax paid (721) (327) 137
Cash inflows/(outflows) from operating 5,379 (936) 3,829
activities
Investing activities
Disposal of subsidiary - - (148)
Acquisition of investment properties, mining (5,178) (1,061) (5,952)
reserves, plant and equipment
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 (155) (183) (193)
Properties Ltd
Receipt of bank loan – London & Associated - 3 -
Properties PLC
Repayment of bank loan – London & Associated (4) (61) (95)
Properties PLC
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
6 months 6 months Year ended ended ended 30 June 30 June 31 December 2024 2023 2023 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Net decrease in cash and cash equivalents (1,595) (4,996) (8,853) Cash and cash equivalents at beginning of period 3,444 12,157 12,157 Exchange adjustment (5) 177 140 Cash and cash equivalents at end of period 1,844 7,338 3,444
The cash flows above relate to continuing and discontinued operations.
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
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 55 (3,007) (3,861)
shareholders after tax (£’000)
Weighted average number of shares in issue 85,326 85,326 85,326
for the period ('000)
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.
Other than as discussed above the Directors have placed a valuation on the properties which is not materially different to the value as at
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 28,587 29,288 28,490
shareholders (£'000)
Basic net assets per share 33.50p 34.32p 33.38p
Shares in issue diluted by outstanding share 85,326 85,326 85,326
options ('000)
Net assets after issue of share options 28,587 29,288 28,490
(£'000)
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
8. Dividends
There is no interim dividend payable for the period (
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
Property, plant and equipment representing Bisichi’s mining assets in
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
10. Contingent Liabilities and Subsequent Events
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
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
As required by the Disclosure and Transparency Rules of the
The half year results have not been audited or subject to review by the company's auditor.
The annual financial statements of
As stated in the 2023 Annual Report in the group accounting policies, Bisichi PLC and
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
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
(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
Director Director
Directors and advisors Directors Executive directors John A HellerLLB MBA (Chief Executive and Chairman) Jonathan Mintz FCA (Finance Director) Non-executive directors †Howard D GoldringBSC (ECON) ACA (resigned30 June 2023 ) #†Clive A ParrittFCA CF FIIA †Robin PriestMA Andrew R HellerMA, ACA * Member of the nomination committee # Senior independent director †Member of the audit, remuneration and nomination committees. Secretary & registered office Jonathan MintzFCA12 Little Portland Street London W1W 8BJ Registrars & transfer officeLink Group Shareholder Services The RegistryCentral Square 29 Wellington Street Leeds LS1 4DLUK 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 theUnited Kingdom will be charged at the applicable international rate) Lines are openbetween 8.00am and 5.30pm , Monday to Friday, excluding public holidays inEngland andWales . Website: www.linkgroup.eu E-mail: shareholderenquiries@linkgroup.co.uk Company registration number 341829 (England andWales ) Website www.lap.co.uk E-mail admin@lap.co.uk
