FOR IMMEDIATE RELEASE
31 August 2022
LONDON & ASSOCIATED PROPERTIES PLC
HALF YEAR RESULTS
TO 30 June 2022
London & Associated
Properties PLC (“LAP” or the “Group”) is a main market listed
property investment group that specialises in industrial and
essential retail property. It also holds a substantial stake in the
main market listed Bisichi PLC which operates coal mines in
South Africa and owns UK property
investments.
HIGHLIGHTS
- Net assets attributable to shareholders –
- Increase by 17% to £34.2 million (£29.7 million December 2021)
- Now 40.04p per share (December
2021 34.78p per share)
- Exceptional results from Bisichi add £4.7 million to value of
LAP’s investment
- Property changes move business further away from traditional
retail –
- West Bromwich retail centre
sold on 29 July 2022 for December
valuation of £4.75 million
- Rugeley retail arcade sold at book value for £0.5 million
- Industrial portfolio in Warrington acquired for £2.37 million
- Following planning approval for 56 flats at JV development in
West Ealing we are progressing the development design work
- Property portfolio seeing continued strong performance with
Group occupancy levels of 97.6% by rental income (June 2021: 95.4%).
- Re-financing in August 2022
replaces 25-year £10 million debenture and 10-year £3.5 million
bank loan with new £13.6 million 5-year facility.
“We are pleased to report on the six months to 30 June 2022, during which we made significant
progress within LAP. We sold a number of ex-growth properties
including Kings Square, West
Bromwich, our last remaining covered shopping centre, and
Brewery Street Arcade in Rugeley. These properties did not meet our
criteria and banks have demonstrated consistently that they are not
prepared to lend at commercially acceptable rates on assets of this
type. Following these disposals, our portfolio is much more
readily fundable and well positioned to maintain and grow future
income. Future acquisitions will follow this strategy.
We also refinanced a large portion of the existing portfolio.”
-more-
Contact:
London & Associated Properties
PLC
Tel: 020 7415 5000
John Heller, Chief Executive
Baron
Phillips
Associates
Tel: 07767 444193
Baron Phillips
Half year results for the period ended
30 June 2022
Half year review
We are pleased to report on the six months to 30 June 2022, during which we made significant
progress within LAP. We sold a number of ex-growth properties
including Kings Square, West
Bromwich, our last remaining covered shopping centre, and
Brewery Street Arcade in Rugeley. These properties did not meet our
criteria and banks have demonstrated consistently that they are not
prepared to lend at commercially acceptable rates on assets of this
type. Following these disposals, our portfolio is much more
readily fundable and well positioned to maintain and grow future
income. Future acquisitions will follow this strategy.
We also refinanced a large portion of the existing portfolio.
Consolidated Group revenue increased by 82% to £48.1 million
from £26.5 million in the same period last year. Revenue from
mining (£44.8 million versus £23.0 million) is discussed further in
commentary about Bisichi below.
Revenue from property activities fell slightly to £3.3 million
(2021: £3.5 million), as a consequence of lower income during
periods between property disposals and subsequent acquisitions.
Group profits attributable to shareholders were £4.3 million
(2021: losses of £0.7 million) with £4.8 million profit from
Bisichi offset by a small loss in LAP as the company transitions
its property portfolio and returns to profitability.
Of the current 2.4% of vacancies by rental income, 1.4% is
accounted for by one unit in Sheffield which is being held vacant to enable
future development activity.
At Orchard Square, Sheffield we
continue to reposition the asset from a retail-led site towards a
more mixed-use and food-focused venue. We have completed a
letting to an independent pizza and cocktails chain of restaurants
replacing a mid-market fashion outlet and are in detailed
negotiations with a number of similar operators to enhance the
offer at the centre. Elsewhere, we have agreed with Sheffield
Council grants for upgrading the public areas and residential
development, with lawyers now instructed by both sides.
We continue to cut overheads which is providing positive
cashflow and profitability. We have relocated our central
London offices to a more modern
and cost-efficient space.
During the period, we sold our Rugeley arcade for the
December 2021 book value of £0.5
million. The reinvestment of this cash has also had a positive
effect on cashflow.
During the period we acquired an industrial portfolio in
Warrington for £2.37 million from
free cash. We believe the portfolio offers good prospects for
rental growth, together with a number of value enhancing asset
management opportunities.
In June we announced the sale of Kings Square, West Bromwich, our last remaining covered
shopping centre, to the local council for the December 2021 book value of £4.75 million. The
proceeds of this sale, which completed in July, were placed on
deposit with funder Aviva and released following the refinancing in
August and will be used to make further acquisitions of properties
that support our ongoing strategy.
As opportunities arise, we will sell other properties that do
not meet our core investment criteria. We are in discussions with
interested parties on a number of retail properties enabling us to
move our portfolio further away from this sector.
At our development site in West Ealing, we continue to explore
options to realise the value from the planning consent for 56 flats
we obtained in 2021. These options include marketing the consented
land for sale which we have explored. However, the well-publicised
inflation in building costs experienced across the development
industry has proved a stumbling block to obtaining the value we
seek as purchasers were understandably conservative. Therefore we
continue to progress the development, including working up detailed
design drawings and negotiating with potential contractors. A
final decision on whether to we will develop this asset ourselves
or sell it has yet to be taken.
The 25-year £10 million, 8.109% Aviva debenture was refinanced
in August together with the 10-year £3.5 million Metro Bank loan.
These loans have been replaced by a new 5-year loan with QIB (UK)
plc for £13.6 million. This will generate an initial net operating
cashflow improvement of £0.2m per annum. Security for the new loan
comprises the properties held as security by Aviva and Metro and
two uncharged properties, with an initial LTV of 56%. £5.6 million
of free cash was released back to the company as a result of this
transaction, which will be reinvested in our portfolio
diversification programme and we are examining suitable investment
opportunities.
During the period an extension of the Dragon Retail Properties
loan with Santander to October 2022
was secured. We have received an offer for longer term finance for
this property and are progressing this. This property continues to
produce strong net cash flow.
We have exercised the option to extend the £13.2 million loan
with Phoenix CRE S.à.r.l, secured on our Sheffield property, to September 2023, while we complete the latest
stage of development activity.
Bisichi PLC, which is 42% owned, has seen strong performance
from Sisonke Coal Processing, its South African coal processing
operation which benefited from significantly higher prices of Free
on Board (FOB) coal from Richards Bay Coal Terminal (API4 price).
During the period, the weekly API4 price averaged US$277 compared to US$97 in the first half of 2021 and US$151 in the second half the year. Despite
constraints largely beyond Bisichi’s control in transporting coal
for export on the South African rail network, it was able to take
advantage of the improved international coal price by increasing
export sales during the first half of the year to 177,000 metric
tonnes, compared to 171,000 metric tonnes in the first half of 2021
and 320,000 metric tonnes overall in 2022.
Bisichi’s results would have been even better if it had not
encountered operational delays that impacted the transition into
new mining areas at Black Wattle, which in turn adversely impacted
coal production. During the period the mine achieved production of
301,000 metric tonnes compared to 553,000 metric tonnes in the
first half of 2021. Bisichi is pleased to report that these delays
have now been addressed successfully and in July the transition
into the new mining areas was completed. Consequently, Bisichi
expects mining production to recover in the second half of the year
to the levels seen in 2021. The increases evident on the balance
sheet in mining reserves, plant and equipment is mainly
attributable to the costs of completing the development of these
new mining areas which will be mined throughout the remainder of
2022 and 2023.
Despite the lower coal production from Black Wattle, at Sisonke
Coal Processing Bisichi was able to maintain its overall levels of
coal processed. During the period Bisichi sold 614,000 metric
tonnes (2021: 731,000 metric tonnes) and reported £44.7million in
mining revenue (2021: £23.0million) with the higher prices
achievable for coal offsetting the lower overall quantity of coal
sold.
Looking forward into the second half of 2022, Bisichi is already
beginning to see the benefits from mining new areas at Black
Wattle. This is mainly due to the higher quality coal being mined
which is currently in high demand in both export and domestic
markets. As a result, Bisichi is pleased to report that, in the
second half of the year to date, it has achieved significant
improvements in prices for coal in the domestic market. In the
export market, the API4 price continues to remain at levels similar
to the first half of 2022 and exports for the year to date are in
line with the average export tonnages achieved in 2021. However,
looking beyond the year to date, uncertainties remain. These are
particularly with regard to the sustainability of the higher coal
prices in both our markets, as well as the impact of continued
constraints in transporting coal for export on the South African
rail network.
LAP has made significant progress during the period. The Board
of LAP bases its decisions on dividend payments on the results and
financial position of the Group’s property activities and
accordingly has decided not to declare a dividend for the half
year. Once our cash has been reinvested and property income has
returned to previous levels, our dividend policy will reflect
this.
Sir Michael
Heller
John Heller
Chairman
Chief Executive
31 August 2022
Consolidated income statement
for the six months ended 30 June 2022
|
|
|
6 months |
6
months |
Year |
|
|
|
ended |
ended |
ended |
|
|
|
30 June |
30
June |
31 December |
|
|
|
2022 |
2021 |
2021 |
|
|
|
(unaudited) |
(unaudited) |
(audited) |
|
Notes |
£’000 |
£’000 |
£’000 |
| Group
revenue |
1 |
48,076 |
26,518 |
56,477 |
| Operating costs |
|
(26,236) |
(26,587) |
(53,457) |
| Operating
profit/(loss) |
1 |
21,840 |
(69) |
3,020 |
| Finance income |
2 |
40 |
12 |
34 |
| Finance expenses |
2 |
(1,470) |
(1,403) |
(2,543) |
| Result before
valuation and other movements |
|
20,410 |
(1,460) |
511 |
|
|
|
|
|
| Non–cash changes in
valuation of assets and liabilities and other movements |
|
|
|
|
| Exchange losses |
|
- |
- |
(121) |
| Decrease in value of
investment properties |
|
(200) |
- |
(111) |
| Loss on disposal of
fixed assets |
|
- |
- |
(133) |
| Increase in value of
trading investments |
|
49 |
376 |
812 |
| Adjustment to interest
rate derivative |
|
70 |
60 |
130 |
| Profits on disposal of
investment properties |
|
- |
121 |
436 |
| Result including
revaluation and other movements |
|
20,329 |
(903) |
1,524 |
| Profit/(loss) for the
period before taxation |
1 |
20,329 |
(903) |
1,524 |
| Income tax charge |
3 |
(5,646) |
(129) |
(698) |
| Profit/(loss) for the
period |
|
14,683 |
(1,032) |
826 |
|
|
|
|
|
| Attributable
to: |
|
|
|
|
| Equity holders of the
Company |
|
4,293 |
(660) |
(152) |
| Non–controlling
interest |
|
10,390 |
(372) |
978 |
| Profit/(loss) for the
period |
|
14,683 |
(1,032) |
826 |
|
|
|
|
|
|
Profit/(loss) per share – basic and diluted |
4 |
5.03p |
(0.77)p |
(0.18)p |
|
|
|
|
|
|
|
|
Consolidated statement of comprehensive income
for the six months ended 30 June
2022
|
30 June |
30 June |
31 December |
|
2022 |
2021 |
2021 |
|
(unaudited) |
(unaudited) |
(audited) |
|
|
|
|
|
£'000 |
£'000 |
£’000 |
|
|
|
|
| Profit/(loss) for
the period |
14,683 |
(1,032) |
826 |
| Other comprehensive
income: |
|
|
|
|
|
|
|
| Items that may be subsequently
recycled to the income statement: |
|
|
|
| Exchange differences on translation
of foreign operations |
565 |
6 |
(63) |
| Other comprehensive
income/(expense) for the period, net of tax |
565 |
6 |
(63) |
| Total comprehensive income
/(expense) for the period, net of tax |
15,248 |
(1,026) |
763 |
| Attributable to: |
|
|
|
| Equity shareholders |
4,496 |
(608) |
(177) |
| Non–controlling interest |
10,752 |
(418) |
940 |
|
15,248 |
(1,026) |
763 |
Consolidated balance sheet
at 30 June
2022
|
|
30 June |
30 June |
31 December |
|
|
2022 |
2021 |
2021 |
|
|
(unaudited) |
(unaudited) |
(audited) |
|
Notes |
£'000 |
£'000 |
£'000 |
| Non–current assets |
|
|
|
|
| Market value of properties
attributable to Group |
|
35,725 |
40,970 |
37,945 |
| Present value of head leases |
|
3,221 |
3,249 |
3,221 |
| Property |
5 |
38,946 |
44,219 |
41,166 |
| Mining reserves, property, plant and
equipment |
|
15,100 |
10,366 |
9,917 |
| Other investments at fair value
through profit and loss (“FVPL”) |
|
6,418 |
2,721 |
3,631 |
|
|
60,464 |
57,306 |
54,714 |
| Current assets |
|
|
|
|
| Inventories – Property |
5 |
25,493 |
25,366 |
25,213 |
| Inventories – Mining |
|
4,189 |
2,592 |
1,253 |
| Assets held for sale |
|
4,550 |
- |
504 |
| Trade and other receivables |
|
10,604 |
10,035 |
9,917 |
| Corporation tax recoverable |
|
- |
- |
19 |
| Investments in listed securities
held at FVPL |
|
1,209 |
923 |
685 |
| Cash and cash equivalents |
|
7,816 |
8,299 |
8,518 |
|
|
53,861 |
47,215 |
46,109 |
| Total assets |
|
114,325 |
104,521 |
100,823 |
| Current liabilities |
|
|
|
|
| Trade and other payables |
|
(13,546) |
(19,708) |
(15,197) |
| Borrowings |
|
(36,151) |
(9,568) |
(31,405) |
| Lease liabilities |
|
(201) |
(432) |
(513) |
| Interest rate derivatives |
|
- |
- |
(70) |
| Current tax liabilities |
|
(1,657) |
(1) |
(726) |
|
|
(51,555) |
(29,709) |
(47,911) |
| Non–current liabilities |
|
|
|
|
| Borrowings |
|
(3,932) |
(30,926) |
(7,259) |
| Interest rate derivatives |
|
- |
(140) |
- |
| Lease liabilities |
|
(3,866) |
(3,665) |
(3,734) |
| Provisions |
|
(1,609) |
(1,461) |
(1,391) |
| Deferred tax liabilities |
|
(57) |
(193) |
(309) |
|
|
(9,464) |
(36,385) |
(12,693) |
| Total liabilities |
|
(61,019) |
(66,094) |
(60,604) |
| Net assets |
|
53,306 |
38,427 |
40,219 |
| Equity attributable to the owners
of the parent |
|
|
|
|
| Share capital |
|
8,554 |
8,554 |
8,554 |
| Share premium account |
|
4,866 |
4,866 |
4,866 |
| Translation reserve (Bisichi
PLC) |
|
(851) |
(1,031) |
(1,055) |
| Capital redemption reserve |
|
47 |
47 |
47 |
|
Retained earnings (excluding treasury shares) |
|
21,708 |
16,907 |
17,415 |
|
Treasury shares |
|
(144) |
(144) |
(144) |
| Retained earnings |
|
21,464 |
16,763 |
17,271 |
| Total equity attributable to
equity shareholders |
|
34,180 |
29,199 |
29,683 |
| Non – controlling interest |
|
19,126 |
9,228 |
10,536 |
| Total equity |
|
53,306 |
38,427 |
40,219 |
|
|
|
|
|
| Net assets per share attributable
to equity shareholders |
6 |
40.04p |
34.22p |
34.78p |
Consolidated statement of changes in shareholders’
equity
for the six months ended 30 June 2022
|
Share
capital
£’000 |
Share
premium
£’000 |
Translation
reserves
£’000 |
Capital
redemption
reserve
£’000 |
Treasury
shares
£’000 |
Retained
earnings
excluding
treasury
shares
£’000 |
Total
excluding
Non–
Controlling
Interests
£’000 |
Non–controlling
Interests
£’000 |
Total
equity
£’000 |
|
|
|
|
|
|
|
|
|
|
| Balance at 1 January 2021 |
8,554 |
4,866 |
(1,030) |
47 |
(144) |
17,567 |
29,860 |
9,686 |
39,546 |
| Loss for the period |
- |
- |
- |
- |
- |
(660) |
(660) |
(372) |
(1,032) |
| Other comprehensive
income: |
|
|
|
|
|
|
|
|
|
| Currency translation |
- |
- |
(1) |
- |
- |
- |
(1) |
4 |
3 |
| Total other comprehensive
(expense)/income |
- |
- |
(1) |
- |
- |
- |
(1) |
4 |
3 |
| Total comprehensive
expense |
- |
- |
(1) |
- |
- |
(660) |
(661) |
(368) |
(1,029) |
| Transactions with
owners: |
|
|
|
|
|
|
|
|
|
Dividends –
non–controlling
Interests |
- |
- |
- |
- |
- |
- |
- |
(90) |
(90) |
| Transactions with owners |
- |
- |
- |
- |
- |
- |
- |
(90) |
(90) |
| Balance at 30 June 2021
(unaudited) |
8,554 |
4,866 |
(1,031) |
47 |
(144) |
16,907 |
29,199 |
9,228 |
38,427 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance at 1 January 2021 |
8,554 |
4,866 |
(1,030) |
47 |
(144) |
17,567 |
29,860 |
9,686 |
39,546 |
| (Loss)/profit for the year |
- |
- |
- |
- |
- |
(152) |
(152) |
978 |
826 |
| Other comprehensive
income: |
|
|
|
|
|
|
|
|
|
| Currency translation |
- |
- |
(25) |
- |
- |
- |
(25) |
(38) |
(63) |
| Total other comprehensive
expense |
- |
- |
(25) |
- |
- |
- |
(25) |
(38) |
(63) |
| Total comprehensive
expense |
- |
- |
(25) |
- |
- |
(152) |
(177) |
940 |
763 |
| Transaction with owners: |
|
|
|
|
|
|
|
|
|
Dividends –
non–controlling
Interests |
- |
- |
- |
- |
- |
- |
- |
(90) |
(90) |
| Transactions with owners |
|
|
|
|
|
|
|
(90) |
(90) |
Balance at 31
December 2021
(audited) |
8,554 |
4,866 |
(1,055) |
47 |
(144) |
17,415 |
29,683 |
10,536 |
40,219 |
Consolidated statement of changes in shareholders’ equity -
continued
for the six months ended 30 June 2022
|
|
|
|
|
|
|
|
|
|
Share
capital
£’000 |
Share
premium
£’000 |
Translation
reserves
£’000 |
Capital
redemption
reserve
£’000 |
Treasury
shares
£’000 |
Retained
earnings
excluding
treasury
shares
£’000 |
Total
excluding
Non–
Controlling
Interests
£’000 |
Non–controlling
Interests
£’000 |
Total
equity
£’000 |
|
|
|
|
|
|
|
|
|
|
| Balance at 1 January 2022 |
8,554 |
4,866 |
(1,055) |
47 |
(144) |
17,415 |
29,683 |
10,536 |
40,219 |
| Profit for the period |
- |
- |
- |
- |
- |
4,293 |
4,293 |
10,390 |
14,683 |
| Other comprehensive
income: |
- |
- |
- |
- |
- |
- |
- |
- |
- |
| Currency translation |
- |
- |
204 |
- |
- |
- |
204 |
362 |
566 |
| Total other comprehensive
income |
- |
- |
204 |
- |
- |
- |
204 |
362 |
566 |
| Total comprehensive
income |
- |
- |
204 |
- |
- |
4,293 |
4,497 |
10,752 |
15,249 |
| Transactions with
owners: |
|
|
|
|
|
|
|
|
|
| Dividends – non-controlling
interests |
- |
- |
- |
- |
- |
- |
- |
(2,162) |
(2,162) |
| Transactions with owners |
- |
- |
- |
- |
- |
- |
- |
(2,162) |
(2,162) |
| Balance at 30 June 2022
(unaudited) |
8,554 |
4,866 |
(851) |
47 |
(144) |
21,708 |
34,180 |
19,126 |
53,306 |
Consolidated cash flow statement
for the six months ended 30 June 2022
|
6 months |
6 months |
Year |
|
ended |
ended |
ended |
|
30 June |
30 June |
31 December |
|
2022 |
2021 |
2021 |
|
(unaudited) |
(unaudited) |
(audited) |
|
|
|
|
|
£'000 |
£'000 |
£'000 |
| Operating activities |
|
|
|
| Profit/(loss) for the year before
taxation |
20,329 |
(903) |
1,524 |
| Finance income |
(40) |
(12) |
(34) |
| Finance expense |
1,470 |
1,403 |
2,543 |
| Decrease in value of investment
properties |
- |
- |
111 |
| Increase in value of trading
investments |
- |
- |
(812) |
| Expenditure on trading property |
(260) |
- |
- |
| Adjustment to interest rate
derivative |
(70) |
(60) |
(130) |
| Profit on sale of investment
properties |
- |
- |
(436) |
| Depreciation |
884 |
1,457 |
2,815 |
| Profit on disposal of non-current
assets |
200 |
- |
133 |
| Sale of inventory – property (net of
costs) |
- |
(121) |
- |
| Exchange adjustments |
37 |
9 |
121 |
| Change in inventories |
(2,803) |
538 |
2,921 |
| Development expenditure on
inventories |
- |
- |
(1,016) |
| Change in
receivables
|
766 |
(1,305) |
(1,813) |
| Change in payables |
(2,813) |
2,224 |
(107) |
| Cash generated from
operations |
17,700 |
3,230 |
5,820 |
| Income tax paid |
(5,554) |
(211) |
(216) |
| Cash inflows from operating
activities |
12,146 |
3,019 |
5,604 |
| Investing activities |
|
|
|
| Disposal of assets held for
sale |
504 |
- |
- |
| Acquisition of investment
properties, mining reserves, plant and equipment |
(7,994) |
(706) |
(1,871) |
| Sale of investment properties |
- |
1,791 |
4,219 |
| Disposal of other investments |
- |
- |
705 |
| Acquisition of other
investments |
(3,262) |
(689) |
(1,630) |
| Interest
received |
40 |
12 |
34 |
| Cash (outflows)/inflows from
investing activities |
(10,712) |
408 |
1,457 |
| Financing activities |
|
|
|
| Interest
paid |
(1,468) |
(1,379) |
(2,621) |
| Interest on obligation under finance
leases |
(17) |
(16) |
(199) |
| Receipt of bank loan – Bisichi
PLC |
48 |
130 |
46 |
| Repayment of bank loan – Bisichi
PLC |
(150) |
(262) |
(317) |
| Repayment of bank loan – Dragon
Retail Properties Ltd |
(10) |
(10) |
(21) |
| Receipt of bank loan – London &
Associated Properties PLC |
220 |
352 |
522 |
| Repayment of bank loan – London
& Associated Properties PLC |
(188) |
(88) |
(606) |
| Repayment of lease liability |
(126) |
(132) |
(235) |
| Lease assignment costs paid |
- |
- |
(101) |
| Equity dividends paid –
non–controlling interests |
(1,787) |
- |
- |
| Cash outflows from financing
activities |
(3,478) |
(1,405) |
(3,532) |
Consolidated cash flow statement - continued
for the six months ended 30 June 2022
|
6
months |
6
months |
Year |
|
ended |
ended |
ended |
|
30
June |
30
June |
31 December |
|
2022 |
2021 |
2021 |
|
(unaudited) |
(unaudited) |
(audited) |
|
|
|
|
|
£'000 |
£'000 |
£'000 |
| Net
(decrease)/increase in cash and cash equivalents |
(2,044) |
2,022 |
3,529 |
| Cash and cash
equivalents at beginning of period |
5,982 |
2,348 |
2,348 |
| Exchange adjustment |
(51) |
(40) |
105 |
| Cash and cash
equivalents at end of period |
3,887 |
4,330 |
5,982 |
|
|
|
|
|
|
The cash flows above relate to continuing and discontinued
operations.
Cash and cash equivalents
For the purpose of the cash flow statement, cash and cash
equivalents comprise the following balance sheet amounts:
|
|
|
|
| Cash and cash equivalents (before
bank overdrafts) |
7,816 |
8,299 |
8,518 |
| Bank overdrafts |
(3,929) |
(3,969) |
(2,536) |
| Cash and cash equivalents at end
of period |
3,887 |
4,330 |
5,982 |
Notes to the half year report
for the six months ended 30 June
2022
|
|
|
|
| 1. Segmental
analysis |
6 months |
6 months |
Year |
|
ended |
ended |
ended |
|
30
June |
30
June |
31 December |
|
2022 |
2021 |
2021 |
|
(unaudited) |
(unaudited) |
(audited) |
|
£'000 |
£'000 |
£'000 |
| Revenue |
|
|
|
| LAP |
|
|
|
| - Rental income |
2,092 |
2,372 |
5,024 |
| - Service charge
income |
471 |
411 |
852 |
| - Management income
from third parties |
9 |
9 |
18 |
| Bisichi |
|
|
|
| - Rental income |
543 |
576 |
904 |
| - Service charge
income |
- |
- |
130 |
| - Mining |
44,837 |
23,045 |
49,401 |
Dragon
- Rental income |
123 |
105 |
125 |
| - Service charge
income |
1 |
- |
23 |
|
48,076 |
26,518 |
56,477 |
| Operating
profit/(loss) |
|
|
|
| LAP |
208 |
397 |
311 |
| Bisichi |
21,544 |
(517) |
2,621 |
| Dragon |
88 |
51 |
88 |
|
21,840 |
(69) |
3,020 |
|
|
|
|
| (Loss)/profit
before taxation |
|
|
|
| LAP |
(986) |
(409) |
(1,273) |
| Bisichi |
21,249 |
(524) |
2,790 |
| Dragon |
66 |
30 |
7 |
|
20,329 |
(903) |
1,524 |
|
|
|
|
|
| 2. Finance
costs |
6 months |
6
months |
Year |
|
ended |
ended |
ended |
|
30
June |
30
June |
31 December |
|
2022 |
2021 |
2021 |
|
(unaudited) |
(unaudited) |
(audited) |
|
£'000 |
£'000 |
£'000 |
|
|
|
|
| Finance income |
40 |
12 |
34 |
| Finance expenses: |
|
|
|
| Interest on bank loans
and overdrafts |
(925) |
(947) |
(1,345) |
| Other loans |
(430) |
(430) |
(1,121) |
| Interest on
obligations under finance leases |
(115) |
(26) |
(77) |
| Total finance
expenses |
(1,470) |
(1,403) |
(2,543) |
|
(1,430) |
(1,391) |
(2,509) |
Notes to the half year report – continued
| 3. Income
tax |
6 months |
6
months |
Year |
|
ended |
ended |
ended |
|
30
June |
30
June |
31
December |
|
2022 |
2021 |
2021 |
|
(unaudited) |
(unaudited) |
(audited) |
|
|
|
|
|
£'000 |
£'000 |
£'000 |
| Current tax |
6,115 |
(14) |
731 |
| Deferred tax |
(469) |
143 |
(33) |
|
5,646 |
129 |
698 |
4. Earnings per share |
6 months |
6
months |
Year |
|
ended |
ended |
ended |
|
30
June |
30
June |
31
December |
|
2022 |
2021 |
2021 |
|
(unaudited) |
(unaudited) |
(audited) |
|
|
|
|
| Profit/(loss)
attributable to equity shareholders after tax (£’000) |
4,293 |
(660) |
(152) |
|
|
|
|
| Weighted average
number of shares in issue for the period ('000) |
85,326 |
85,326 |
85,326 |
| Basic
earnings per share |
5.03p |
(0.77)p |
(0.18)p |
| Diluted number
of shares in issue ('000) |
85,326 |
85,326 |
85,326 |
| Diluted
earnings per share |
5.03p |
(0.77)p |
(0.18)p |
5. Properties
Investment properties are held a fair value at each reporting
period.
During the period one property was sold, generating net sales
proceeds of £0.504 million. This property was valued at £0.504
million at 31 December 2021 and
disclosed as an asset held for sale. There was no profit on sale in
the period.
During the period one property was purchased for £2.37 million,
excluding costs, being an industrial portfolio in Warrington.
Subsequent to the period end, on 29 July
2022, a retail property in West
Bromwich was sold, generating net sale proceeds of £4.55
million. This property was revalued to the net sales proceeds
achieved, generating a £200,000 downwards revaluation of the
property in the period. The property was transferred to assets held
for sale at 30 June 2022.
Other than as discussed above, the Directors have placed a
valuation on the properties which is not materially different to
the value as at 31 December 2021.
Investment properties are therefore included at a directors’
valuation which is considered to be the fair value as at
30 June 2022. Please refer to page 44
of the 2021 Annual report and Accounts for details on the valuation
of investment and inventory properties as at 31 December 2021.
| 6. Net assets per
share |
30
June |
30
June |
31
December |
|
2022 |
2021 |
2021 |
|
(unaudited) |
(unaudited) |
(audited) |
|
|
|
|
| Shares in issue
('000) |
85,326 |
85,326 |
85,326 |
| Net assets
attributable to equity shareholders (£'000) |
34,165 |
29,199 |
29,683 |
| Basic net assets
per share |
40.04p |
34.22p |
34.78p |
|
|
|
|
| Shares in issue
diluted by outstanding share options ('000) |
85,326 |
85,326 |
85,326 |
| Net assets after issue
of share options (£'000) |
34,165 |
29,199 |
29,683 |
| Fully diluted net
assets per share |
40.04p |
34.22p |
34.78p |
Notes to the half year report - continued
7. Related party transactions
The related parties and the nature of costs recharged are as
disclosed in the group’s annual financial statements for the year
ended 31 December 2021.
8. Dividends
There is no interim dividend payable for the period
(30 June 2021: Nil).
There is no final dividend payable in respect of 2021.
9. Risks and uncertainties
The group’s principal risks and uncertainties are reported on
pages 10 and 11 in the 2021 Annual Report. They have been
reviewed by the Directors and remain unchanged for the current
period.
The largest area of estimation and uncertainty in the interim
financial statements is in respect of the valuation of investment
properties (which are not revalued at the half year).
For Bisichi PLC, the largest area of estimation relates to
currency movements and coal mining activities in South Africa, including depreciation,
impairment and the provision for rehabilitation (relating to
environmental rehabilitation of mining areas).
Property, plant and equipment representing Bisichi’s mining
assets in South Africa are
reviewed for impairment where there is evidence of a material
impairment. The impairment test indicated significant headroom as
at 31 December 2021 and no impairment
was considered appropriate.
Other areas of estimation and uncertainly are referred to in the
Group's annual financial statements. There have been no significant
changes to the basis of accounting of key estimates and judgements
as disclosed in the annual report as at 31
December 2021.
10. Subsequent Events
On 29 July 2022 the group sold its
interest in a retail property in West
Bromwich for gross sales proceeds of £4.75 million.
On 25 August 2022, the group
repaid its 25-year £10 million debenture with Aviva at 8.109%, as
it fell due, and a loan with Metro Bank, with a remaining balance
of £3.5 million at BoE base rate plus 2.95%, and executed a 5-year
£13.6 million floating rate loan with QIB (UK) PLC at BoE base rate
plus 3.95%, secured against its investment properties.
11. Financial information
The above financial information does not constitute statutory
accounts within the meaning of section 434 of the Companies Act
2006. The figures for the year ended 31
December 2021 are based upon the latest statutory accounts,
which have been delivered to the Registrar of Companies; the report
of the auditor on those accounts was unqualified and did not
contain a statement under Section 498(2) or (3) of the Companies
Act 2006.
As required by the Disclosure and Transparency Rules of the UK's
Financial Conduct Authority, the interim financial statements have
been prepared in accordance with the International Financial
Reporting Standards (IFRS) and in accordance with both IAS 34
'Interim Financial Reporting' and in conformity with the
requirements of the Companies Act 2006 applicable to companies
reporting under IFRS and the disclosure requirements of the Listing
Rules.
The half year results have not been audited or subject to review
by the company's auditor.
The annual financial statements of London & Associated Properties PLC are
prepared in accordance with IFRS and in conformity with the
requirements of the Companies Act 2006 applicable to companies
reporting under IFRS. the company has applied UK-adopted IAS and at
the date of application, both UK-adopted IAS and EU-adopted IFRS
are the same. The same accounting policies are used for the six
months ended 30 June 2022 as were
used for the year ended 31 December
2021.
As stated in the 2021 Annual Report in the group accounting
policies, Bisichi PLC and Dragon Retail Properties Limited are
consolidated with LAP, as required by IFRS 10.
The assessment of new standards, amendments and interpretations
issued but not effective, is that these are not anticipated to have
a material impact on the financial statements.
The interim financial statements have been prepared on the going
concern basis.
12. Board approval
The half year results were approved by the Board of London & Associated Properties PLC on 30
August
2022.
Directors' responsibility statement
The Directors confirm that to the best of their knowledge:
(a) the condensed consolidated interim financial statements have
been prepared in accordance with (i) UK-adopted International
Accounting Standard 34, Interim Financial Reporting, (ii)
International Accounting Standard 34, Interim Financial Reporting,
as published by the International Accounting Standards Board (IASB)
and (iii) International Accounting Standard 34, Interim Financial
Reporting, as adopted pursuant to Regulation (EC) No 1606/2002 as
it applies in the European Union (EU);
(b) the interim management report includes a fair review of the
information required by:
(1) DTR 4.2.7R of the Disclosure and Transparency Rules,
being an indication of important events that have occurred during
the first six months of the financial year and their impact on the
condensed set of financial statements; and a description of the
principal risks and uncertainties for the remaining six months of
the year; and
(2) DTR 4.2.8R of the Disclosure and Transparency Rules, being
related party transactions that have taken place in the first six
months of the current financial year and that have materially
affected the financial position or performance of the entity during
that period; and any changes in the related party transactions
described in the last annual report that could do
so.
This report contains forward-looking statements. These
statements are based on current estimates and projections of
management and currently available information. Future statements
are not guarantees of the future developments and results outlined
therein. Rather, future developments and results are dependent on a
number of factors; they involve various risks and uncertainties and
are based upon assumptions that may not prove to be accurate. Risks
and uncertainties identified by the Group are set out on pages 7
and 8 of the 2021 Annual Report & Accounts. We do not assume
any obligation to update the forward-looking statements contained
in this report.
Signed on behalf of the Board on 31 August
2022
Sir Michael
Heller
Jonathan
Mintz
Director
Director
Directors and advisors |
|
| Directors |
| Executive
directors |
| * Sir Michael
Heller MA FCA (Chairman) |
| John A Heller
LLB MBA (Chief Executive) |
| Jonathan Mintz
FCA (Finance Director) |
|
|
| Non-executive
directors |
| † Howard D
Goldring BSC (ECON) ACA |
| #†Clive A
Parritt FCA CF FIIA |
| Robin Priest
MA |
|
| * Member of the
nomination committee |
| # Senior independent
director |
| † Member of the audit,
remuneration and nomination |
| committees. |
|
|
| Secretary &
registered office |
| Jonathan Mintz
FCA |
| 12 Little Portland
Street |
| London W1W 8BJ |
|
|
| Registrars &
transfer office |
Link
Group
Shareholder Services |
The
Registry, 10th Floor
Central Square
29 Wellington Street
Leeds
LS1 4DL |
|
|
UK
Telephone: 0871 664 0300
(Calls cost 12p per minute plus network access charges; lines are
open Monday to Friday between 9.00am and 5.30pm)
International Telephone: +44 371 664 0300
(Calls outside the United Kingdom will be charged at applicable
international rate)
Lines are open between 9.00am and 5.30pm, Monday to Friday,
excluding public holidays in England and Wales.
Website: www.linkassetservices.com
E-mail: enquiries@linkgroup.co.uk |
|
| Company
registration number |
| 341829 (England and
Wales) |
|
|
| Website |
| www.lap.co.uk |
|
| E-mail |
| admin@lap.co.uk |