London & Associated Properties Plc - Half-year Report

London & Associated Properties Plc - Half-year Report

PR Newswire

London, August 30

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: [phone]
John Heller, Chief Executive

Baron Phillips Associates Tel: [phone]
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 HellerJohn 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 HellerJonathan 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: [phone]
(Calls cost 12p per minute plus network access charges; lines are open Monday to Friday between 9.00am and 5.30pm)
International Telephone: [phone]
(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: [e-mail]

Company registration number

341829 (England and Wales)

Website

www.lap.co.uk

E-mail

[e-mail]