London & Associated Properties Plc - Half-year Report

London & Associated Properties Plc - Half-year Report

PR Newswire

LONDON, United Kingdom, August 25

FOR IMMEDIATE RELEASE

25 August 2023

LONDON & ASSOCIATED PROPERTIES PLC

HALF YEAR RESULTS TO 30 June 2023

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

It also holds a substantial stake in the main market listed Bisichi PLC which operates coal mines in South Africa and invests in UK property.

HIGHLIGHTS

• Net assets attributable to shareholders -
  • Decreased to £29.3 million (December 2022: £32.5 million)
  • Now 34.32p (December 2022: 38.14p) per share
  • Write down of £2.1m in value of Orchard Square, Sheffield despite strong operational performance
• Property portfolio seeing continued strong operational performance with Group occupancy levels of 98.4% by rental income (June 2022: 97.6%)
• Whilst no properties have been acquired in the period, we are actively seeking to reinvest cash in new assets in targeted sectors. These must be at an appropriate yield and with the potential to add value and income growth through asset management initiatives.

"The results for the six months to 30 June 2023 have been impacted very significantly by interest rate increases. Not only have the additional costs damaged operating performance, but negative sentiment has meant that the investment market for asset sales is becoming more uncertain ………. We are, though, seeing rental growth in both the industrial properties and the value-orientated retail properties that we continue to hold."

-more-

Contact:

London & Associated Properties PLCTel: [phone]

John Heller, Chairman and Chief Executive

Baron Phillips AssociatesTel: [phone]

Baron Phillips

Half year results for the period ended

30 June 2023

Half year review

The results for the six months to 30 June 2023 have been impacted very significantly by interest rate increases. Not only have the additional costs damaged operating performance, but negative sentiment has meant that the investment market for asset sales is becoming more uncertain. This has materially affected us at Orchard Square in Sheffield where in May we instructed agents to market this property in the run up to the September 2023 expiry of our loan from QSix. As at the date of this report, we are unable to confirm that any sales proceeds will be sufficient to repay this loan and return a surplus to the Group. In light of this, we have adopted a prudent approach to the value of Orchard Square and have written it down to the outstanding loan value of £12.65m from £14.75m.

The loan on the property is non recourse to the LAP Group, is secured exclusively on this asset and the write down in value in the period is the maximum loss the Group can incur. However, this write-down contributed to losses attributable to shareholders of £3.0 million (2022: profits of £4.3 million) while net assets attributable to shareholders have reduced from £32.5 million to £29.3 million (34.32p a share as compared with 38.14p at December 2022).

Orchard Square is held as inventory as it is readied for sale. Since September 2022, all surplus operating cash was retained within Orchard Square Ltd and not distributed as a dividend to LAP as part of an agreement with the lender to exercise our option to extend the loan by 12 months. During this period we have sought to refinance the loan, but due to prevailing market conditions, this has not been possible without a significant equity contribution which we do not feel would be in shareholders' interests. In the last few days we have confirmed this decision to the existing lender who has issued a reservation of rights letter.

The company will update shareholders on the progress of this matter in due course.

This is a disappointing outcome for a property that had performed well over our 24 year ownership. Once again, Orchard Square has, operationally, performed strongly this year. We have recently completed three significant lettings as we continue to reposition the centre with a greater focus on food and beverage operators. We have also upgraded the public areas with new paving, awnings for the tenants and a weather proofing canopy having been completed with the support of a grant from Sheffield Council. This enables the year-round use of the public areas and has been warmly welcomed by all the tenants. Operating income for Orchard Square remains at c£1.7 million per annum (31 December 2022: £1.7m).

The remainder of our property portfolio is performing satisfactorily. Revenue from property activities decreased slightly to £3.0 million (2022: £3.3 million), reflecting the disposal of our shopping centre in West Bromwich in July 2022, the proceeds of which have not yet been reinvested.

We are, though, seeing rental growth 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 1.6% by rental income (2022: 2.4%), following the lettings at Orchard Square discussed above.

A 5-year loan with QIB (UK) plc for £13.6 million was executed in August 2022 with an initial LTV of 56%. This loan remains covenant compliant.

We continue to review all opportunities to reduce overheads and improve profitability.

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. For the past year, building cost inflation has been a stumbling block to a land sale, and we have therefore continued to work up detailed design drawings. A recent stabilisation in material prices and a drop in contractors' workloads have enabled us to achieve initial quotes from contractors that make committing to a build out of this project more attractive. We are weighing up the risks and rewards of both a land sale and building out the site and are optimistic that a decision to realise the best value of this site can be taken shortly.

During the period a short term extension of the Dragon Retail Properties loan with Santander was secured to October 2023. Further negotiations with Santander were put on hold in the period immediately prior to an outstanding break clause in favour of the largest tenant at the property. The break was not exercised and with a current WAULT of 5.0 years we are exploring all options for refinancing this property, including an offer of a new loan from the existing lender. This loan remains covenant compliant, and the property continues to produce strong net cash flow.

For the first six months of the year, gross revenue at Bisichi PLC, which is 42% owned by LAP, was £25.3 million as compared with £44.8 million last year. This resulted in a profit before interest, tax, depreciation and amortisation (EBITDA) of £1.42 million (2022: £22.25 million) and a net profit of £0.1 million before foreign exchange losses of £0.9 million. The lower earnings for Bisichi, compared to the first six months of 2022, are mainly attributable to lower prices for coal sold by Sisonke Coal Processing, Bisichi's South African coal processing operation, as well as difficult mining conditions at Black Wattle Colliery.

Bisichi intends to pay an interim dividend on 4 February 2024 of 3p (2022: 10p) per share, £133,000 of which will be receivable by LAP.

Further details of Bisichi's performance and a forward looking statement can be found in their own half year report available at www.bisichi.com.

LAP has made significant progress during the period although the outlook for interest rates and inflation are limiting our options more than we would wish. The Board of LAP bases its decisions about 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.

John Heller

Chairman and Chief Executive

24 August 2023

Consolidated income statement

for the six months ended 30 June 2023

			6 months		6 months		Year
			ended		ended		ended
			30 June		30 June		31 December
			2023		2022		2022
			(unaudited)		(unaudited)		(audited)
		Notes		£'000		£'000		£'000
Group revenue		1		28,335		48,076		100,243
Operating costs				(28,708)		(26,236)		(64,730)
Operating (loss)/profit		1		(373)		21,840		35,513
Finance income		2		171		40		199
Finance expenses		2		(1,775)		(1,470)		(3,218)
Result before valuation and other movements				(1,977)		20,410		32,494
Non-cash changes in valuation of assets and liabilities and other movements
Exchange losses				-		-		(270)
Decrease in value of investment properties				-		(200)		(115)
Profits on disposal of investment properties				-		-		(83)
Loss on disposal of fixed assets				-		-		36
(Decrease)/Increase in value of trading investments				(553)		49		1,036
Adjustment to interest rate derivative				-		70		70
Result including revaluation and other movements				(2,530)		20,329		33,168
(Loss)/profit for the period before taxation		1		(2,530)		20,329		33,168
Income tax charge		3		(232)		(5,646)		(12,002)
(Loss)/profit for the period				(2,762)		14,683		21,166
Attributable to:
Equity holders of the Company				(3,007)		4,293		2,704
Non-controlling interest				245		10,390		18,462
(Loss)/profit for the period				(2,762)		14,683		21,166
(Loss)/profit per share - basic and diluted		4		(3.52)		5.03p		3.17p

Consolidated statement of comprehensive income

for the six months ended 30 June 2023

	30 June	30 June	31 December
	2023	2022	2022
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
(Loss)/profit for the period	(2,762)	14,683	21,166
Other comprehensive income:
Items that may be subsequently recycled to the income statement:
Exchange differences on translation of foreign operations	(874)	565	(43)
Other comprehensive (expense)/income for the period, net of tax	(874)	565	(43)
Total comprehensive (expense)/income for the period, net of tax	(3,636)	15,248	21,123
Attributable to:
Equity shareholders	(3,256)	4,496	2,696
Non-controlling interest	(380)	10,752	18,427
	(3,636)	15,248	21,123

Consolidated balance sheet

at 30 June 2023

		30 June	30 June	31 December
		2023	2022	2022
		(unaudited)	(unaudited)	(audited)
	Notes	£'000	£'000	£'000
Non-current assets
Market value of properties attributable to Group		35,610	35,725	35,610
Present value of head leases		1,552	3,221	1,552
Property	5	37,162	38,946	37,162
Mining reserves, property, plant and equipment		14,599	15,100	16,928
Other investments at fair value through profit and loss ("FVPL")		12,740	6,418	12,590
		64,501	60,464	66,680
Current assets
Inventories - Property	5	21,256	25,493	22,862
Inventories - Mining		4,502	4,189	5,199
Assets held for sale		-	4,550	-
Trade and other receivables		8,031	10,604	7,915
Investments in listed securities held at FVPL		779	1,209	886
Cash and cash equivalents		10,886	7,816	15,382
		45,454	53,861	52,244
Total assets		109,955	114,325	118,924
Current liabilities
Trade and other payables		(14,386)	(13,546)	(17,058)
Borrowings		(21,580)	(36,151)	(22,061)
Lease liabilities		(345)	(201)	(414)
Interest rate derivatives		-	-	-
Current tax liabilities		(4,321)	(1,657)	(4,256)
		(40,632)	(51,555)	(43,789)
Non-current liabilities
Borrowings		(17,154)	(3,932)	(17,113)
Lease liabilities		(1,599)	(3,866)	(1,839)
Provisions		(1,475)	(1,609)	(1,716)
Deferred tax liabilities		236	(57)	(752)
		(19,992)	(9,464)	(21,420)
Total liabilities		(60,624)	(61,019)	(65,209)
Net assets		49,331	53,306	53,715
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)		(1,314)	(851)	(1,063)
Capital redemption reserve		47	47	47
Retained earnings (excluding treasury shares)		17,279	21,708	20,286
Treasury shares		(144)	(144)	(144)
Retained earnings		17,135	21,464	20,142
Total equity attributable to equity shareholders		29,288	34,180	32,546
Non - controlling interest		20,043	19,126	21,169
Total equity		49,331	53,306	53,715
Net assets per share attributable to equity shareholders	6	34.32p	40.04p	38.14p

Consolidated statement of changes in shareholders' equity

for the six months ended 30 June 2023

	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
Balance at 1 January 2022	8,554	4,866	(1,055)	47	(144)	17,415	29,683	10,536	40,219
Profit for the year	-	-	-	-	-	2,704	2,704	18,462	21,166
Other comprehensive income:
Currency translation	-	-	(8)	-	-	-	(8)	(35)	(43)
Total other comprehensive expense	-	-	(8)	-	-	-	(8)	(35)	(43)
Total comprehensive income	-	-	(8)	-	-	2,704	2,696	18,427	21,123
Transaction with owners:
Share options	-	-	-	-	-	167	167	237	404
Dividends - equity holders	-	-	-	-	-	-	-	(7,034)	(7,034)
Dividends - non-controlling Interests	-	-	-	-	-	-	-	(997)	(997)
Transactions with owners						167	167	(7,794)	(7,627)
Balance at 31 December 2022 (audited)	8,554	4,866	(1,063)	47	(144)	20,286	32,546	21,169	53,715

Consolidated statement of changes in shareholders' equity - continued

for the six months ended 30 June 2023

	Share capital £'000	Share premium £'000	Translation reserves £'000	Capital redemption reserve £'000	Treasury shares £'000	Retained earnings excluding treasury shares £'000	Total excluding Non- Controlling Interests £'000	Non-controlling Interests £'000	Total equity £'000
Balance at 1 January 2023	8,554	4,866	(1,063)	47	(144)	20,286	32,546	21,169	53,715
(Loss)/profit for the period	-	-	-	-	-	(3,007)	(3,007)	245	(2,762)
Other comprehensive income:
Currency translation	-	-	(251)	-	-	-	(251)	(623)	(874)
Total other comprehensive income	-	-	(251)	-	-	-	(251)	(623)	(874)
Total comprehensive income	-	-	(251)	-	-	(3,007)	(3,258)	(378)	(3,636)
Transactions with owners:
Dividends - non-controlling interests	-	-	-	-	-	-	-	(748)	(748)
Transactions with owners	-	-	-	-	-	-	-	(748)	(748)
Balance at 30 June 2023 (unaudited)	8,554	4,866	(1,314)	47	(144)	17,279	29,288	20,043	49,331

Consolidated cash flow statement

for the six months ended 30 June 2023

	6 months	6 months	Year
	ended	ended	ended
	30 June	30 June	31 December
	2023	2022	2022
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
Operating activities
(Loss)/profit for the year before taxation	(2,530)	20,329	33,168
Finance income	(171)	(40)	(199)
Finance expense	1,775	1,470	3,218
Decrease in value of investment properties	-	-	115
Increase in value of trading investments	-	-	(1,036)
Expenditure on trading property	-	(260)	-
Adjustment to interest rate derivative	-	(70)	(70)
Loss on investments	6	-	-
(Profit)/ loss on sale of investment properties	(2)	-	83
Depreciation	899	884	1,362
Loss/(profit) on disposal of non-current assets	-	200	(36)
Share based payment expense	553	-	405
Development expenditure on inventories	-	-	(747)
Exchange adjustments	188	37	270
Change in inventories	1,572	(2,803)	(911)
Change in receivables	728	766	2,194
Change in payables	(3,627)	(2,813)	811
Cash (outflows)/inflows generated from operations	(609)	17,700	38,627
Income tax paid	(327)	(5,554)	(7,946)
Cash (outflows)/inflows from operating activities	(936)	12,146	30,681
Investing activities
Acquisition of investment properties, mining reserves, plant and equipment	(1,061)	(7,994)	(11,011)
Sale of plant and equipment	16	504	102
Sale of investment properties	-	-	5,171
Disposal of other investments	-	-	2,083
Acquisition of other investments	(596)	(3,262)	(10,207)
Interest received	171	40	199
Cash outflows from investing activities	(1,470)	(10,712)	(13,663)
Financing activities
Interest paid	(1,693)	(1,468)	(2,751)
Interest on obligation under finance leases	(17)	(17)	(353)
Repayment of lease liability	(126)	(126)	(236)
Lease assignment costs paid	-	-	(52)
Receipt of bank loan - Bisichi PLC	27	48	524
Repayment of bank loan - Bisichi PLC	(540)	(150)	(55)
Repayment of bank loan - Dragon Retail Properties Ltd	(183)	(10)	(21)
Receipt of bank loan - London & Associated Properties PLC	3	220	13,337
Repayment of bank loan - London & Associated Properties PLC	(61)	(188)	(14,247)
Equity dividends paid	-	-	(641)
Equity dividends paid - non-controlling interests	-	(1,787)	(6,323)
Cash outflows from financing activities	(2,590)	(3,478)	(10,818)

Consolidated cash flow statement - continued

for the six months ended 30 June 2023

	6 months		6 months		Year
	ended		ended		ended
	30 June		30 June		31 December
	2023		2022		2022
	(unaudited)		(unaudited)		(audited)
	£'000		£'000		£'000
Net (decrease)/increase in cash and cash equivalents		(4,996)		(2,044)	6,200
Cash and cash equivalents at beginning of period		12,157		5,982	5,982
Exchange adjustment		177		(51)	(25)
Cash and cash equivalents at end of period		7,338		3,887	12,157

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)	10,886	7,816	15,382
Bank overdrafts	(3,548)	(3,929)	(3,225)
Cash and cash equivalents at end of period	7,338	3,887	12,157

Notes to the half year report
for the six months ended 30 June 2023

1. Segmental analysis	6 months	6 months	Year
	ended	ended	ended
	30 June	30 June	31 December
	2023	2022	2022
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
Revenue
LAP
- - Rental income	2,000	2,092	4,175
- - Service charge income	378	471	788
- - Management income from third parties	9	9	18
Bisichi
- - Rental income	524	543	955
- - Service charge income	-	-	98
- - Mining	25,341	44,837	94,002
- Dragon
- - Rental income	83	123	207
- - Service charge income	-	1	-
	28,335	48,076	100,243
Operating (loss)/profit
LAP	(1,728)	208	(3,041)
Bisichi	1,296	21,544	38,433
Dragon	59	88	121
	(373)	21,840	35,513
(Loss)/profit before taxation
LAP	(2,942)	(986)	(5,119)
Bisichi	390	21,249	38,267
Dragon	22	66	20
	(2,530)	20,329	33,168
2. Finance costs	6 months	6 months	Year
	ended	ended	ended
	30 June	30 June	31 December
	2023	2022	2022
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
Finance income	171	40	199
Finance expenses:
Interest on bank loans and overdrafts	(1,671)	(925)	(1,862)
Unwinding of discount (Bisichi)	-	-	(319)
Other loans	(32)	(430)	(837)
Interest on obligations under finance leases	(72)	(115)	(200)
Total finance expenses	(1,775)	(1,470)	(3,218)
	(1,604)	(1,430)	(3,019)

Notes to the half year report - continued

3. Income tax	6 months	6 months	Year
	ended	ended	ended
	30 June	30 June	31 December
	2023	2022	2022
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
Current tax	1,017	6,115	11,537
Deferred tax	(785)	(469)	465
	232	5,646	12,002

4. Earnings per share	6 months	6 months	Year
	ended	ended	ended
	30 June	30 June	31 December
	2023	2022	2022
	(unaudited)	(unaudited)	(audited)
(Loss)/profit attributable to equity shareholders after tax (£'000)	(3,007)	4,293	2,704
Weighted average number of shares in issue for the period ('000)	85,326	85,326	85,326
Basic earnings per share	(3.52)	5.03p	3.17p
Diluted number of shares in issue ('000)	85,326	85,326	85,326
Diluted earnings per share	(3.52)	5.03p	3.17p

5. Properties

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

During the period no properties were acquired or sold.

Orchard Square, Sheffield, held as inventory, is currently being marketed for sale. The property is secured by a loan that expires in September 2023 and we are not currently able to confirm if the proceeds of any sale will be sufficient to repay this loan and return a surplus to the Group. The value of this property has therefore been written down to the outstanding loan value, from £14.75m to £12.65m and is disclosed as an inventory write down within Operating Costs in the Income Statement. The loan on the property is non-recourse to the rest of the LAP Group, is secured exclusively on this asset and the write down in value in the period is the maximum loss the Group can incur. Due to rising interest rates the loan breached its income cover covenant in July 2023, we have recently chosen not to cure this breach with the lender issuing a reservation of rights letter.

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 2022. Investment properties are therefore included at a directors' valuation which is considered to be the fair value as at 30 June 2023. Please refer to page 56 of the 2022 Annual report and Accounts for details on the valuation of investment and inventory properties as at 31 December 2022.

6. Net assets per share	30 June	30 June	31 December
	2023	2022	2022
	(unaudited)	(unaudited)	(audited)
Shares in issue ('000)	85,326	85,326	85,326
Net assets attributable to equity shareholders (£'000)	29,288	34,165	32,546
Basic net assets per share	34.32	40.04p	38.14p
Shares in issue diluted by outstanding share options ('000)	85,326	85,326	85,326
Net assets after issue of share options (£'000)	29,288	34,165	32,546
Fully diluted net assets per share	34.32p	40.04p	38.14p

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 2023.

8. Dividends

There is no interim dividend payable for the period (30 June 2022: Nil).

There is no final dividend payable in respect of 2022.

9. Risks and uncertainties

The group's principal risks and uncertainties are reported on pages 10 and 11 in the 2022 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 2022 and no impairment was considered appropriate.

Other areas of estimation and uncertainly are referred to in the Group's annual financial statements. There have been no significant changes to the basis of accounting for key estimates and judgements as disclosed in the annual report as at 31 December 2022.

10. Contingent Liabilities and Subsequent Events

Black Wattle Colliery (Pty) Ltd continues to be involved in a tax dispute in South Africa related to VAT. The dispute arose during the year ended 31 December 2020 and is related to events which occurred prior to the years ended 31 December 2020. The interpretation of laws and regulations in South Africa where the Group operates can be complex and can lead to challenges from or disputes with regulatory authorities. Such situations often take significant time to resolve. Where there is a dispute and where a reliable estimate of the potential liability cannot be made, or where the Group, based on legal advice, considers that it is improbable that there will be an outflow of economic resources, no provision is recognised. Further details of the contingent tax liability can be found on page 107 of Bisichi's 2022 Annual report and Accounts.

There are no other contingent liabilities as at 30 June 2023.

There are no subsequent events or transactions that require disclosure.

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 2022 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 2023 as were used for the year ended 31 December 2022.

As stated in the 2022 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 24 August 2023.

Directors' responsibility statement

The Directors confirm that to the best of their knowledge:

(a) the condensed consolidated interim financial statements have been prepared in accordance with UK-adopted International Accounting Standard 34, Interim Financial Reporting.

(b) the interim management report includes a fair review of the information required by:

(1) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

(2) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.

This report contains forward-looking statements. These statements are based on current estimates and projections of management and currently available information. Future statements are not guarantees of the future developments and results outlined therein. Rather, future developments and results are dependent on a number of factors; they involve various risks and uncertainties and are based upon assumptions that may not prove to be accurate. Risks and uncertainties identified by the Group are set out on pages 10 and 11 of the 2022 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 24 August 2023

John Heller Jonathan Mintz

Director Director

Directors and advisors

Directors

Executive directors

* Sir Michael Heller MA FCA (Chairman) (resigned 30 January 2023)

John A Heller LLB MBA (Chief Executive) and (Chairman from 24 February 2023)

Jonathan Mintz FCA (Finance Director)

Non-executive directors

† Howard D Goldring BSC (ECON) ACA

#†Clive A Parritt FCA CF FIIA

Robin Priest MA

Andrew R Heller MA, ACA (appointed 29 March 2023)

* Member of the nomination committee

# Senior independent director

† Member of the audit, remuneration and nomination

committees.

Secretary & registered office

Jonathan Mintz FCA

12 Little Portland Street

London W1W 8BJ

Registrars & transfer office

Link Group

Shareholder Services

The Registry

Central Square

29 Wellington Street

Leeds

LS1 4DL

UK Telephone: [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]

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