Half-year Report
30/09/2025 07:15
FOR IMMEDIATE RELEASE 30 September 2025 LONDON & ASSOCIATED PROPERTIES PLC HALF YEAR RESULTS TO 30 June 2025 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 Reduced profitability – Operating loss £2.2 million (June 2024: profit of £4.7 million) Loss before tax £3.0 million (June 2024: profit of £4.2 million) Net assets attributable to shareholders – Decreased to £26.7 million (December 2024: £28.1 million) Now 31.33p (December 2024: 32.91p) per share Property portfolio seeing continued strong tenant demand, with Group occupancy levels of 94.4% by rental income (June 2024: 95.5%). “The Group’s property business continues to perform satisfactorily. However, it is evident that, although we have low vacancy levels, prospective tenants are taking longer to commit to new leases…we continue to explore all opportunities to reduce overheads and restore profitability.” -more- Contact: London & Associated Properties PLC Tel: 020 7415 5000 John Heller, Chairman and Chief Executive Baron Phillips Associates Tel: 07767 444193 Baron Phillips Half year results for the period ended 30 June 2025 Half year review Our results for the six months ended 30 June 2025 reflect a continuing very difficult period for UK property. The Group has made a loss after tax of £2.4 million (June 2024: profit of £2.9 million) and a loss after tax attributable to shareholders of £1.3 million (June 2024: profit of £0.1 million). Like for like revenue from property activities dipped marginally to £1.7 million (June 2024: £1.8 million). Net assets attributable to shareholders decreased from £28.0 million to £26.7 million (equivalent to 31.33p per share as compared to 32.91p per share at December 2024). As usual, we have not undertaken a valuation at the half year. The Group’s property business continues to perform satisfactorily. However, it is evident that, although we have low vacancy levels, prospective tenants are taking longer to commit to new leases. This trend is especially apparent in our industrial portfolio, where we have been marketing a well-located, recently refurbished unit since February. Despite initial advice suggesting it would be let within a few weeks, it remains unoccupied. Falling interest rates helped improve the Group’s property earnings. There remains however significant uncertainty over the medium-term direction of interest rates and whilst we have chosen not to hedge any of our borrowings so far this year, we keep this constantly under review. Across our entire portfolio, voids have risen slightly to 5.6% by rental value (30 June 2024: 4.5%). Almost one third of the current vacancies relate to the above mentioned industrial unit. Whilst we remain open to selling any properties where we think we can reinvest the proceeds into new assets with stronger growth potential, we do not believe that the current market is conducive to achieving good sales prices. We continue to monitor investor demand and in particular any special strategic buyers who may pay a premium. We continue to explore all opportunities to reduce overheads and restore profitability, including assessing options for our London head office in Q4 2025, from which time we can determine our lease agreement. As previously reported planning consent for 56 flats and four retail units at our West Ealing development site has been fully implemented. The market for residential development remains particularly challenging due to increased construction costs and the uncertainty arising from the practical implementation of the new Building Safety Act, particularly around tall buildings. We continue to refine the estimated construction pricing with our preferred contractors and to explore the best options for the scheme, including a pre-sale. Our view of the development’s value has not changed since the 2024 year end, but there remain significant risks that may impact our overall financial return from this project including potential further write-downs of our equity position. An impairment provision of £900,000 continues to be held against the cost of the development. At Dragon Retail Properties Limited (“Dragon”), our joint venture with Bisichi PLC, the famous and long-standing nightclub located in the basement of its Bristol building went into administration during the period. A new agreement has been successfully reached with a replacement tenant although the rents achieved are less than two-thirds of the rent previously passing. For the first six months of the year, Bisichi PLC, which is 42% owned by LAP, made a profit before interest, tax, depreciation and amortisation (EBITDA) of £0.13 million (June 2024: £7.35 million) and an operating profit before depreciation, fair value adjustments and exchange movements (Adjusted EBITDA) of £0.1 million (June 2024: £6.65 million). Bisichi’s lower earnings, compared to the first six months of 2024, are mainly attributable to lower mining production and higher mining costs at the South African coal mining asset, Black Wattle Colliery. Lower prices for coal sold by Sisonke Coal Processing, Bisichi’s South African coal processing operation, also impacted earnings but were offset by improved coal qualities and yields through the washing plant. Bisichi intends to pay an interim dividend on 6 February 2025 of 3p (2024: 3p) 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 its own half year report available at www.bisichi.com. The increasing cost pressures, higher than forecast interest rates and longer lead-in times for the re-letting of certain vacant units have determined the Directors’ decision not to declare a dividend for the half year. As a Board we continue to examine every option to return the Group to profitability, and I look forward to updating shareholders on our initiatives in due course. John Heller Chairman and Chief Executive 30 September 2025 Consolidated income statement for the six months ended 30 June 2025
| 6 months | 6 months | Year | |||||||
| ended | ended | ended | |||||||
| 30 June | 30 June | 31 December | |||||||
| 2025 | 2024 | 2024 | |||||||
| (unaudited) | (unaudited) | (audited) | |||||||
| Notes | £’000 | £’000 | £’000 | ||||||
| Group revenue | 1 | 26,138 | 24,754 | 54,917 | |||||
| Operating costs | (28,317) | (20,037) | (49,624) | ||||||
| Operating (loss)/profit | 1 | (2,179) | 4,717 | 5,293 | |||||
| Finance income | 2 | 56 | 115 | 202 | |||||
| Finance expenses | 2 | (1,129) | (1,534) | (2,971) | |||||
| Result before valuation and other movements | (3,252) | 3,298 | 2,524 | ||||||
| Non–cash changes in valuation of assets and liabilities and other movements | |||||||||
| Exchange losses | - | - | (23) | ||||||
| Increase in value of investment properties | - | - | 1,800 | ||||||
| Gain on investments held at fair value (Bisichi) | 241 | 920 | 68 | ||||||
| Gain on disposal of subsidiary | - | - | 50 | ||||||
| (Loss)/profit for the period before taxation | 1 | (3,011) | 4,218 | 4,419 | |||||
| Income tax credit/(charge) | 3 | 569 | (1,302) | (1,615) | |||||
| (Loss)/profit for the period | (2,442) | 2,916 | 2,804 | ||||||
| Attributable to: | |||||||||
| Equity holders of the Company | (1,280) | 55 | (373) | ||||||
| Non–controlling interest | (1,162) | 2,861 | 3,177 | ||||||
| (Loss)/profitfor the period | (2,442) | 2,916 | 2,804 | ||||||
| (Loss)/profit per share – basic and diluted | 4 | (1.50)p | 0.06p | (0.44)p | |||||
| 30 June | 30 June | 31 December | |
| 2025 | 2024 | 2024 | |
| (unaudited) | (unaudited) | (audited) | |
| £'000 | £'000 | £’000 | |
| (Loss)/profit for the period | (2,442) | 2,916 | 2,804 |
| Other comprehensive income: | |||
| Items that may be subsequently recycled to the income statement: | |||
| Exchange differences on translation of foreign operations | (278) | 175 | (122) |
| Total comprehensive (expense)/income for the period, net of tax | (2,720) | 3,091 | 2,682 |
| Attributable to: | |||
| Equity shareholders | (1,352) | 97 | (405) |
| Non–controlling interest | (1,368) | 2,994 | 3,087 |
| (2,720) | 3,091 | 2,682 |
| 30 June | 30 June | 31 December | ||
| 2025 | 2024 | 2024 | ||
| (unaudited) | (unaudited) | (audited) | ||
| Notes | £'000 | £'000 | £'000 | |
| Non–current assets | ||||
| Market value of properties attributable to Group | 37,405 | 35,643 | 37,405 | |
| Present value of head leases | 1,586 | 1,551 | 1,586 | |
| Property | 5 | 38,991 | 37,194 | 38,991 |
| Mining reserves, property, plant and equipment | 21,648 | 22,796 | 23,603 | |
| Other investments at fair value through profit and loss (“FVPL”) (Bisichi) | 13,245 | 15,181 | 14,339 | |
| 73,884 | 75,171 | 76,933 | ||
| Current assets | ||||
| Inventories – Property | 5 | 8,996 | 9,465 | 8,996 |
| Inventories – Mining | 3,673 | 3,433 | 3,377 | |
| Trade and other receivables | 5,704 | 10,058 | 7,202 | |
| Investments in listed securities held at FVPL (Bisichi) | 459 | 768 | 628 | |
| Cash and cash equivalents | 2,913 | 4,281 | 2,926 | |
| 21,745 | 28,005 | 23,129 | ||
| Total assets | 95,629 | 103,176 | 100,062 | |
| Current liabilities | ||||
| Trade and other payables | (17,457) | (18,067) | (15,748) | |
| Borrowings | (7,220) | (11,815) | (7,163) | |
| Lease liabilities | (377) | (197) | (439) | |
| Current tax liabilities | (2,372) | (4,750) | (3,801) | |
| (27,426) | (34,829) | (27,151) | ||
| Non–current liabilities | ||||
| Borrowings | (17,162) | (13,334) | (17,929) | |
| Lease liabilities | (1,907) | (1,543) | (2,134) | |
| Provisions | (1,541) | (1,635) | (1,590) | |
| Deferred tax liabilities | (3) | (680) | (699) | |
| (20,613) | (17,192) | (22,352) | ||
| Total liabilities | (48,039) | (52,021) | (49,503) | |
| Net assets | 47,590 | 51,155 | 50,559 | |
| 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) | (1,364) | (1,216) | (1,290) | |
| Capital redemption reserve | 47 | 47 | 47 | |
| Retained earnings (excluding treasury shares) | 14,772 | 16,480 | 16,052 | |
| Treasury shares | (144) | (144) | (144) | |
| Retained earnings | 14,628 | 16,336 | 15,908 | |
| Total equity attributable to equity shareholders | 26,731 | 28,587 | 28,085 | |
| Non – controlling interest | 20,859 | 22,568 | 22,474 | |
| Total equity | 47,590 | 51,155 | 50,559 | |
| Net assets per share attributable to equity shareholders | 6 | 31.33p | 33.50p | 32.91p |
| 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 2024 | 8,554 | 4,866 | (1,258) | 47 | (144) | 16,425 | 28,490 | 19,823 | 48,313 |
| Profit for the period | - | - | - | - | - | 55 | 55 | 2,861 | 2,916 |
| Other comprehensive income: | |||||||||
| Currency translation | - | - | 42 | - | - | - | 42 | 133 | 175 |
| Total comprehensive income | - | - | 42 | - | - | 55 | 97 | 2,994 | 3,091 |
| Transactions with owners: | |||||||||
| Dividends – non-controlling interests | - | - | - | - | - | - | - | (249) | (249) |
| Balance at 30 June 2024 (unaudited) | 8,554 | 4,866 | (1,216) | 47 | (144) | 16,480 | 28,587 | 22,568 | 51,155 |
| Balance at 1 January 2024 | 8,554 | 4,866 | (1,258) | 47 | (144) | 16,425 | 28,490 | 19,823 | 48,313 |
| (Loss)/profit for the year | (373) | (373) | 3,177 | 2,804 | |||||
| Other comprehensive expense: | |||||||||
| Currency translation | - | - | (32) | - | - | - | (32) | (90) | (122) |
| Total comprehensive expense | - | - | (32) | - | - | - | (32) | (90) | (122) |
| Transaction with owners: | |||||||||
| Dividends – non–controlling Interests | - | - | - | - | - | - | - | (436) | (436) |
| Balance at 31 December 2024 (audited) | 8,554 | 4,866 | (1,290) | 47 | (144) | 16,052 | 28,085 | 22,474 | 50,559 |
| 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 2025 | 8,554 | 4,866 | (1,290) | 47 | (144) | 16,052 | 28,085 | 22,474 | 50,559 |
| Loss for the period | - | - | - | - | - | (1,280) | (1,280) | (1,162) | (2,442) |
| Other comprehensive expense: | |||||||||
| Currency translation | - | - | (74) | - | - | - | (74) | (204) | (278) |
| Total comprehensive expense | - | - | (74) | - | - | (1,280) | (1,354) | (1,366) | (2,720) |
| Transactions with owners: | |||||||||
| Dividends – non-controlling interests | - | - | - | - | - | - | - | (249) | (249) |
| Transactions with owners | - | - | - | - | - | - | - | (249) | (249) |
| Balance at 30 June 2025 (unaudited) | 8,554 | 4,866 | (1,364) | 47 | (144) | 14,772 | 26,731 | 20,859 | 47,590 |
| 6 months | 6 months | Year | |
| ended | ended | ended | |
| 30 June | 30 June | 31 December | |
| 2025 | 2024 | 2024 | |
| (unaudited) | (unaudited) | (audited) | |
| £'000 | £'000 | £'000 | |
| Operating activities | |||
| (Loss)/profit for the period before taxation | (3,011) | 4,218 | 4,419 |
| Finance income | (56) | (115) | (202) |
| Finance expense | 1,129 | 1,534 | 2,971 |
| Increase in value of investment properties | - | - | (1,800) |
| Gain on investments held at FVPL (Bisichi) | - | - | (68) |
| Loss on disposal of subsidiary | - | - | (50) |
| Expenditure on trading property | - | (318) | - |
| Depreciation | 1,974 | 1,761 | 4,311 |
| Impairment of inventory - property | - | - | 900 |
| Development expenditure on inventories - property | - | - | (1,007) |
| Exchange adjustments | 52 | (27) | 23 |
| Gain on investment held for trading | (241) | (920) | - |
| Change in inventories | (414) | (795) | (843) |
| Change in receivables | 3,451 | (416) | (70) |
| Change in payables | (68) | 1,178 | 1,769 |
| Cash inflows generated from operations | 2,816 | 6,100 | 10,353 |
| Income tax paid | (1,431) | (721) | (1,789) |
| Cash inflows from operating activities | 1,385 | 5,379 | 8,564 |
| Investing activities | |||
| Acquisition of investment properties, mining reserves, plant and equipment | (808) | (5,178) | (8,132) |
| Disposal of other investments | 1,504 | - | 5,372 |
| Acquisition of other investments | - | (37) | (5,279) |
| Interest received | 56 | 115 | 202 |
| Cash inflows/(outflows) from investing activities | 752 | (5,100) | (7,837) |
| Financing activities | |||
| Interest paid | (1,064) | (1,474) | (2,804) |
| Interest on obligation under finance leases | (87) | (64) | (178) |
| Repayment of lease liability | (128) | (134) | (234) |
| Receipt of bank loan – Bisichi PLC | 1 | 21 | 3,845 |
| Repayment of bank loan – Bisichi PLC | (218) | (64) | (3,995) |
| Repayment of bank loan – Dragon Retail Properties Ltd | (10) | (155) | (215) |
| Receipt of bank loan – London & Associated Properties PLC | 247 | - | 496 |
| Repayment of bank loan – London & Associated Properties PLC | (4) | (4) | (7) |
| Equity dividends paid – Bisichi PLC | - | - | (436) |
| Cash outflows from financing activities | (1,263) | (1,874) | (3,528) |
| 6 months | 6 months | Year | |||
| ended | ended | ended | |||
| 30 June | 30 June | 31 December | |||
| 2025 | 2024 | 2024 | |||
| (unaudited) | (unaudited) | (audited) | |||
| £'000 | £'000 | £'000 | |||
| Net increase / (decrease) in cash and cash equivalents | 874 | (1,595) | (2,801) | ||
| Cash and cash equivalents at beginning of period | 668 | 3,444 | 3,444 | ||
| Exchange adjustment | 5 | (5) | 25 | ||
| Cash and cash equivalents at end of period | 1,547 | 1,844 | 668 | ||
| Cash and cash equivalents (before bank overdrafts) | 2,913 | 4,281 | 2,926 |
| Bank overdrafts | (1,366) | (2,437) | (2,258) |
| Cash and cash equivalents at end of period | 1,547 | 1,844 | 668 |
| 1. Segmental analysis | 6 months | 6 months | Year |
| ended | ended | ended | |
| 30 June | 30 June | 31 December | |
| 2025 | 2024 | 2024 | |
| (unaudited) | (unaudited) | (audited) | |
| £'000 | £'000 | £'000 | |
| Revenue | |||
| LAP | |||
| -- Rental income | 1,119 | 1,131 | 2,303 |
| -- Service charge income | 114 | 70 | 149 |
| -- Management income from third parties | 13 | 9 | 34 |
| Bisichi | |||
| -- Rental income | 515 | 523 | 1,039 |
| -- Service charge income | - | - | 191 |
| -- Mining | 24,320 | 22,940 | 51,023 |
| -Dragon | |||
| -- Rental income | 57 | 81 | 168 |
| -- Service charge income | - | - | 10 |
| 26,138 | 24,754 | 54,917 | |
| Operating (loss)/profit | |||
| LAP | (498) | (482) | (1,781) |
| Bisichi | (1,713) | 5,134 | 6,970 |
| Dragon | 32 | 65 | 104 |
| (2,179) | 4,717 | 5,293 | |
| (Loss)/profit before taxation | |||
| LAP | (1,163) | (1,151) | (1,551) |
| Bisichi | (1,851) | 5,342 | 5,811 |
| Dragon | 3 | 27 | 159 |
| (3,011) | 4,218 | 4,419 | |
| 2. Finance costs | 6 months | 6 months | Year |
| ended | ended | ended | |
| 30 June | 30 June | 31 December | |
| 2025 | 2024 | 2024 | |
| (unaudited) | (unaudited) | (audited) | |
| £'000 | £'000 | £'000 | |
| Finance income | 56 | 115 | 202 |
| Finance expenses: | |||
| Interest on bank loans and overdrafts | (1,009) | (1,430) | (2,019) |
| Unwinding of discount (Bisichi) | - | - | (20) |
| Other loans | (32) | (32) | (769) |
| Interest on obligations under finance leases | (88) | (72) | (163) |
| Total finance expenses | (1,129) | (1,534) | (2,971) |
| Net finance expense | (1,073) | (1,419) | (2,769) |
| 3. Income tax | 6 months | 6 months | Year |
| ended | ended | ended | |
| 30 June | 30 June | 31 December | |
| 2025 | 2024 | 2024 | |
| (unaudited) | (unaudited) | (audited) | |
| £'000 | £'000 | £'000 | |
| Current tax | 67 | 228 | 462 |
| Deferred tax | (636) | 1,074 | 1,153 |
| (569) | 1,302 | 1,615 |
| 4. Earnings per share | 6 months | 6 months | Year |
| ended | ended | ended | |
| 30 June | 30 June | 31 December | |
| 2025 | 2024 | 2024 | |
| (unaudited) | (unaudited) | (audited) | |
| (Loss)/profit attributable to equity shareholders after tax (£’000) | (1,280) | 55 | (373) |
| Weighted average number of shares in issue for the period ('000) | 85,326 | 85,326 | 85,326 |
| Basic earnings per share | (1.50)p | 0.06p | (0.44)p |
| Diluted number of shares in issue ('000) | 85,326 | 85,326 | 85,326 |
| Diluted earnings per share | (1.50)p | 0.06p | (0.44)p |
| 6. Net assets per share | 30 June | 30 June | 31 December |
| 2025 | 2024 | 2024 | |
| (unaudited) | (unaudited) | (audited) | |
| Shares in issue ('000) | 85,326 | 85,326 | 85,326 |
| Net assets attributable to equity shareholders (£'000) | 26,731 | 28,587 | 28,085 |
| Basic net assets per share | 31.33p | 33.50p | 32.91p |
| Shares in issue diluted by outstanding share options ('000) | 85,326 | 85,326 | 85,326 |
| Net assets after issue of share options (£'000) | 26,731 | 28,587 | 28,085 |
| Fully diluted net assets per share | 31.33p | 33.50p | 32.91p |
| Directors and advisors |
| Directors |
| Executive directors |
| John A Heller LLB MBA (Chief Executive and Chairman) |
| Jonathan Mintz FCA (Finance Director) |
| Non-executive directors |
| #† Clive A Parritt FCA CF FIIA |
| † Robin Priest MA Andrew R Heller MA, ACA |
| # 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 |
| MUFG Corporate Markets |
| Central Square 29 Wellington Street Leeds LS1 4DL |
| UK Telephone: 0371 664 0300 International Telephone: +44 371 664 0300 (Calls are charged at the standard geographic rate and will vary by provider. Calls outside the United Kingdom will be charged at the applicable international rate) Lines are open between 8.00am and 5.30pm, Monday to Friday, excluding public holidays in England and Wales. Website: www.mpms.mufg.com E-mail: shareholderenquiries@cm.mpms.mufg.com |
| Company registration number |
| 00341829 (England and Wales) |
| Website |
| www.lap.co.uk |
| admin@lap.co.uk |