REG-Lon.&Assoc.Props PLC: Half-year Report
24/08/2018 08:05
FOR IMMEDIATE RELEASE
24 August 2018
LONDON & ASSOCIATED PROPERTIES PLC
RESULTS FOR THE SIX MONTHS TO 30 JUNE 2018
London & Associated Properties PLC (“LAP” or “the Group”) is a main
market listed group which invests in UK retail and other property whilst also
managing property assets for institutional clients.
It holds a substantial investment in Bisichi Mining PLC (main market listed)
which operates coal mines in South Africa and owns UK property investments.
HIGHLIGHTS
* Sale of Brixton Markets for £37.3 million completed during period: * £16.7
million of loans repaid
* LAP’s cash available for investment stood at £20.9 million at half year
* Group net assets of £58.3 million compared to £48.3 million and those
attributable to shareholders rose 22% to £46.5 million against £38.0 million
* Business strategy broadened to invest in non-retail property
* Total property assets under management stand at £186 million
* £3.0 million 11.6% Prudential debenture repaid in August saving annualised
interest cost of £0.3 million
* Retail property portfolio continues to perform satisfactorily: * Group
occupancy levels of 97% by rental income (2017: 97%)
* Formed a new JV with Metroprop Real Estate Limited: * Contracts exchanged on
£5.6 million property in Ealing, West London
* Retail parade with consent for 8 residential flats at first floor level
* New planning application to be made for substantial increase in number of
residential units
* Under offer on £10.0 million of industrial assets in North West (net income
of £1.0 million pa)
“In future, we will broaden our investment remit so that we do not rely
entirely on retail property. We have been less impacted by the proliferation
of CVAs and other forms of insolvency seen recently, principally because of
the type of community-focused retail property we own. However, it is not
possible completely to avoid negative market sentiment. Therefore, we are
widening our search for new assets and, over time, we will pivot away from
having the majority of our portfolio comprised of retail assets,” Sir
Michael Heller, Chairman and John Heller, Chief Executive.
-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 2018
Half year review
We are pleased to report on a satisfactory first half at London & Associated
Properties PLC (LAP). Group revenue, including our IFRS 10 subsidiaries
Bisichi Mining PLC (Bisichi) and Dragon Retail Properties Limited (Dragon),
increased by 31% to £26.6 million from £20.2 million as compared with the
same period last year. Profits before tax increased to £3.7 million from a
break-even position last year. This improvement was due to improved trading at
Bisichi. LAP, which will benefit in the future from its recently improved cash
position, and Dragon operated at breakeven in this period. Group net assets
rose 20% to £58.3 million compared with £48.3 million at 30 June 2017 and
net assets attributable to shareholders rose 22% to £46.5 million as compared
with £38.0 million.
The Group’s property activities were boosted significantly by completion of
the £37.25 million sale of our two Brixton markets in April. The net cash
received, after payment of fees due to agents and lawyers, was £36.4
million. We have repaid £13.41 million of our Santander loan and £3.27
million of our Europa Mezzanine loan. The balance has been added to LAP’s
cash reserves which, at the half year amounted to £20.9 million.
As a result of selling Brixton Markets, LAP’s rental income dipped slightly
to £3.2 million from £3.5 million in the comparable period. On an
annualised basis, the loss of income from that property is around £1.0
million but this is mostly offset by interest expense savings of £0.8 million
resulting from the loan repayments mentioned above.
The Brixton Markets’ sale generated a taxable gain but we are able to offset
most of this gain by utilising brought-forward capital and other taxation
losses. However, new UK taxation rules restrict the utilisation of other
taxation losses. This means that corporation tax will be payable on 2018 net
taxable income and £0.56 million has been provided in the half year
accounts.
Since the half-year end, I am pleased to report that, in August, we repaid the
remaining £3.0 million of a 1988 Prudential debenture. This historical
debenture carried a coupon of 11.6%. We are in the final stages of
negotiating a replacement loan with a lender with whom we have not worked
previously. The portfolio to be charged to the new lender includes the
properties that were collateral for the Prudential debenture, plus a nightclub
that we own in Coldharbour Lane, Brixton. Drawdown will take place in the
second half of this year and we expect net interest savings for the Group to
be approximately £0.25 million per annum.
During the period under review, LAP’s directors have reviewed the business
strategy and concluded that, in future, we will broaden our investment remit
so that we do not rely entirely on retail property. We have been less
impacted by the proliferation of CVAs and other forms of insolvency seen
recently, principally because of the type of community-focused retail property
that we own. However, it is not possible completely to avoid negative market
sentiment. Therefore, we are widening our search for new assets and, over
time, we will pivot away from having the majority of our portfolio comprised
of retail assets.
Property assets under management including those of LAP, Bisichi, Dragon and
our joint ventures
Our property portfolio continues to perform satisfactorily. The largest
asset in our directly owned portfolio is Orchard Square shopping centre in
Sheffield. This centre continues to trade successfully, and we are carrying
out a number of lettings to enhance further the retail and leisure offer
there. Our strategy is to complement the fashion retail outlets with a
number of leisure and food offerings, particularly with local operators who
have distinct and independent concepts. Currently, we are under offer to two
exciting restaurant operators and I will update shareholders as matters
progress.
Elsewhere at Orchard Square, we have a number of lease renewals underway and I
am pleased to say that, so far, almost all of our retailers have asked for new
leases. The only exceptions are two national retailers who are implementing
a programme of retrenchment throughout the country. We believe that this
demonstrates the ongoing appeal of the Centre, although we are firmly of the
opinion that introducing new facias to keep a shopping centre fresh is a
positive development.
At West Bromwich, we will be fully let again following the imminent completion
of two leases to a restaurant and a coffee shop. This Centre continues to
trade at a high level of occupancy with a number of independent traders to
complement the national retailers there. The centre also houses the town’s
council-run market and principal transport hub, which ensures that it remains
a relevant place to shop.
The rest of the portfolio continues to trade well with group occupancy levels
of 97% by rental income (2017: 97%).
In May, along with Bisichi, we formed a new joint venture with Metroprop Real
Estate Limited, an established and successful developer, and exchanged
contracts on a property in West Ealing, London. LAP and Bisichi will each own
45% of the joint venture. The agreed price for the property is £5.6
million, and LAP and Bisichi each will invest c£1.0 million.
The property is a parade of five shops with a service yard which has an
existing planning consent for eight flats at the first-floor level. We are
looking to increase substantially the number of flats and will be making a new
planning application in due course. West Ealing is on the new Elizabeth Rail
Line that will cut journey times to the West End to just 15 minutes, and we
believe the flats will be highly desirable. We anticipate that the flats
will have a gross development value of sub £500,000 per unit. Completion is
scheduled for late August.
We are also under offer on two separate multi-let industrial assets in the
North West offering good asset management opportunities. The combined value
of both investments is c£10.0 million and the net income will be c£1.0
million per annum. While these assets represent something of a departure
from our traditional retail portfolio, we believe that our skills will be
relevant to multi-let industrial estates. In addition, we are acquiring one
of these assets in conjunction with an experienced asset manager who will
manage the estate and development for a fee.
Project Harrogate, our joint venture with Oaktree Capital Management,
continues to trade satisfactorily.
At Kings Lynn, we are making progress on the development of the former Beales
Department store to create a new unit for H&M to open in spring 2019 together
with four other units. The remainder of the shopping centre trades
consistently well, although income there will be adversely affected in the
short term by the insolvency of Poundworld who have vacated their store.
The Rushes, Loughborough will similarly suffer in the short term from the loss
of its Poundworld store, although the Centre is otherwise effectively fully
let and is trading well.
At Kingsgate, Dunfermline, occupancy levels remain constant, and will be
boosted as we are close to putting one of the large stores under offer to an
international retailer.
Following a refinancing at the end of last year, our equity interest in the
joint venture is now 3.17% of the total. The impact of any drop in income at
the Harrogate Shopping Centres to LAP is therefore strictly limited. However,
we continue to receive fees for our asset and property management contracts.
Bisichi Mining PLC, our 41.5% IFRS 10 subsidiary, had a strong first half with
profit before tax of £4.0 million (2017: £0.24 million). Black Wattle, its
coal mine in South Africa, continued to benefit from infrastructure
improvements to the coal washing plant. These have enabled it to deliver a
higher rate of production from its opencast areas and achieve an increased
overall yield compared to the first half of 2017. The mine’s total
production was 670,000 metric tonnes (2017: 582,000 metric tonnes) during the
period under review. The increased revenues were due to higher coal prices,
along with a stable South African Rand and improved production.
Bisichi’s UK retail property portfolio, which is managed by LAP, continues
to perform well.
Dragon Retail Properties Limited, our IFRS 10 subsidiary company owned jointly
with Bisichi, repaid some £65,000 of its loan to Santander. This leaves a
loan outstanding of £1.2 million (31 December 2017: £1.3 million).
Other
We do not intend to pay a dividend at the half year point; however, our
strategy is to maximise income over the medium term and our dividend policy
will reflect this once our cash has been reinvested and our income has
returned to previous levels.
Following approval at the June 2018 Annual General Meeting, the 2017 final and
special dividends of 0.3 pence are payable on 14 September 2018.
We would like to thank our colleagues for all their hard work over the period
under review. LAP is at an exciting juncture in its development and we look
forward to keeping shareholders informed as matters progress.
Sir Michael Heller
John Heller
Chairman
Chief Executive
23 August 2018
Consolidated income statement
for the six months ended 30 June 2018
6 months 6 months Year
ended ended ended
30 June 30 June 31 December
2018 2017 2017
(unaudited) (unaudited) (audited)
Notes £’000 £’000 £’000
Group revenue 1 26,557 20,237 44,979
Operating costs (21,064) (18,276) (37,428)
Operating profit 1 5,493 1,961 7,551
Finance income 2 25 61 105
Finance expenses 2 (1,975) (2,177) (4,268)
Debenture break cost - - (14)
Result before valuation and other movements 3,543 (155) 3,374
Non–cash changes in valuation of assets and liabilities and other movements
Increase in value of investment properties - - 9,373
Write off investment in joint venture - - (1,827)
(Decrease)/increase in securities investments held at fair value (31) (1) 3
Adjustment to interest rate derivative 168 179 355
Result including revaluation and other movements 3,680 23 11,278
Profit for the period before taxation 1 3,680 23 11,278
Income tax charge 3 (941) (7) (2,982)
Profit for the period 2,739 16 8,296
Attributable to:
Equity holders of the Company 961 (104) 7,686
Non–controlling interest 1,778 120 610
Profit for the period 2,739 16 8,296
Profit/(loss) per share – basic and diluted 4 1.13p (0.12)p 9.01p
Consolidated statement of comprehensive income
for the six months ended 30 June 2018
30 June 30 June 31 December
2018 2017 2017
(unaudited) (unaudited) (audited)
£'000 £'000 £’000
Profit for the period 2,739 16 8,296
Other comprehensive income:
Items that may be subsequently recycled to the income statement:
Exchange differences on translation of foreign operations (226) 7 91
Gain on available for sale investments - 28 103
Taxation - (3) (20)
Other comprehensive (expense)/income for the period, net of tax (226) 32 174
Total comprehensive income for the period, net of tax 2,513 48 8,470
Attributable to:
Equity shareholders 885 (91) 7,753
Non–controlling interest 1,628 139 717
2,513 48 8,470
Consolidated balance sheet
at 30 June 2018
30 June 30 June 31 December
2018 2017 2017
(unaudited) (unaudited) (audited)
Notes £'000 £'000 £'000
Non–current assets
Market value of properties attributable to Group 78,040 105,100 78,025
Present value of head leases 3,228 4,763 3,233
Property 5 81,268 109,863 81,258
Mining reserves, plant and equipment 8,089 8,949 8,735
Investments in joint ventures - 455 -
Loan to joint venture - 1,398 -
Held to maturity investments 1,748 1,748 1,748
Other investments at fair value 32 46 51
Deferred tax - 1,139 -
91,137 123,598 91,792
Current assets
Inventories 985 842 828
Assets held for sale 5 - - 36,441
Trading property 560 - -
Trade and other receivables 9,190 6,352 7,132
Interest rate derivatives 6 - 2 1
Investments in listed securities at fair value (previously listed as Available for sale investments) 1,032 779 1,050
Investments in UK listed securities held at fair value 17 18 19
Cash and cash equivalents 27,549 5,329 7,528
39,333 13,322 52,999
Total assets 130,470 136,920 144,791
Current liabilities
Trade and other payables (13,866) (14,268) (12,909)
Borrowings (4,783) (806) (4,288)
Current tax liabilities (839) (117) (358)
(19,488) (15,191) (17,555)
Non–current liabilities
Borrowings (45,110) (64,544) (61,661)
Interest rate derivatives 6 (267) (612) (435)
Present value of head leases on properties (3,228) (4,763) (3,233)
Provisions (1,276) (1,283) (1,349)
Deferred tax liabilities (2,837) (2,239) (3,848)
(52,718) (73,441) (70,526)
Total liabilities (72,206) (88,632) (88,081)
Net assets 58,264 48,288 56,710
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 Mining PLC) (772) (725) (695)
Capital redemption reserve 47 47 47
Retained earnings (excluding treasury shares) 33,948 25,413 33,227
Treasury shares (145) (145) (145)
Retained earnings 33,803 25,268 33,082
Total equity attributable to equity shareholders 46,498 38,010 45,854
Non – controlling interest 11,766 10,278 10,856
Total equity 58,264 48,288 56,710
Net assets per share 7 54.50p 44.55p 53.74p
Diluted net assets per share 7 54.50p 44.55p 53.74p
Consolidated statement of changes in shareholders’ equity
for the six months ended 30 June 2018
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 2017 8,554 4,866 (728) 47 (145) 25,648 38,242 10,389 48,361
(Loss)/profit for the period - - - - - (104) (104) 120 16
Other comprehensive income:
Currency translation - - 3 - - - 3 4 7
Gain on available for sale investments (net of tax) - - - - - 10 10 15 25
Total other comprehensive income - - 3 - - 10 13 19 32
Total comprehensive income/(expense) - - 3 - - (94) (91) 139 48
Transactions with owners:
Dividends – equity holders - - - - - (141) (141|) - (141)
Dividends – non–controlling interests - - - - - - - (250) (250)
Transactions with owners - - - - - (141) (141) (250) (250)
Balance at 30 June 2017 (unaudited) 8,554 4,866 (725) 47 (145) 25,413 38,010 10,278 48,288
Balance at 1 January 2017 8,554 4,866 (728) 47 (145) 25,648 38,242 10,389 48,631
Profit for year - - - - - 7,686 7,686 610 8,296
Other comprehensive income:
Currency translation - - 33 - - - 33 58 91
Gain on available for sale investments (net of tax) - - - - - 34 34 49 83
Total other comprehensive income - - 33 - - 34 67 107 174
Total comprehensive income - - 33 - - 7,720 7,753 717 8,470
Transaction with owners:
Dividends – equity holders - - - - - (141) (141) - (141)
Dividends – non–controlling interests - - - - - - - (250) (250)
Transactions with owners - - - - - (141) (141) (250) (391)
Balance at 31 December 2017 (audited) 8,554 4,866 (695) 47 (145) 33,227 45,854 10,856 56,710
Consolidated statement of changes in shareholders’ equity - continued
for the six months ended 30 June 2018
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 2018 8,554 4,866 (695) 47 (145) 33,227 45,854 10,856 56,710
Profit for the period - - - - - 961 961 1,778 2,739
Other comprehensive income:
Currency translation - - (77) - - - (77) (149) (226)
Total other comprehensive income - - (77) - - - (77) (149) (226)
Total comprehensive (expense)/income - - (77) - - 961 884 1,629 2,513
Transactions with owners:
Dividends – equity holders - - - - - (256) (256) - (256)
Dividends – non-controlling interests - - - - - - - (742) (742)
Equity share options - - - - - 16 16 23 39
Transactions with owners (240) (240) (719) (959)
Balance at 30 June 2018 (unaudited) 8,554 4,866 (772) 47 (145) 33,948 46,498 11,766 58,264
Consolidated cash flow statement
for the six months ended 30 June 2018
6 months 6 months Year
ended ended ended
30 June 30 June 31 December
2018 2017 2017
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Operating activities
Profit for the year before taxation 3,680 23 11,278
Finance income (25) (61) (105)
Finance expense 1,975 2,177 4,268
Debenture break cost – – 14
Realised gain on disposal of other investments – – (3)
Increase in value of investment properties – – (9,373)
Write off investments in joint venture – – 1,827
Expenditure on trading property (560) – –
Adjustment to interest rate derivative (168) (179) (355)
Depreciation 1,082 962 1,804
(Loss)/profit on disposal of non–current assets 37 (3) (3)
Share based payment expense 39 – –
Exchange adjustments 63 28 258
Change in inventories (233) 881 896
Change in receivables (2,530) 689 196
Change in payables 969 970 (415)
Cash generated from operations 4,329 5,487 10,287
Income tax paid (1,328) 23 (14)
Cash inflows from operating activities 3,001 5,510 10,273
Investing activities
Disposal of shares and loans held to maturity – 126 –
Disposal of assets held for sale – – (56)
Acquisition of investment properties, mining reserves, plant and equipment (1,143) (1,282) (1,771)
Sale of investment properties, plant and equipment – continuing operations – 36 29
Sale of assets held for sale 36,441 – –
Interest received 94 228 137
Cash inflows/(outflows) from investing activities 35,392 (892) (1,661)
Financing activities
Interest paid (2,027) (2,056) (3,963)
Interest on obligation under finance leases (91) (96) (178)
Debenture stock break costs paid – – (14)
Repayment of bank loan – Dragon Retail Properties Limited (65) – –
Receipt of bank loan – Bisichi Mining PLC 63 11 23
Repayment of bank loan – Bisichi Mining PLC (3) (58) (25)
Repayment of bank loan (16,674) – –
Short term loan from joint ventures and related parties – – (30)
Repayment of debenture stocks – (750) (750)
Equity dividends paid – – (141)
Equity dividends paid – non–controlling interests (63) (63) (250)
Cash outflows from financing activities (18,860) (3,012) (5,328)
Consolidated cash flow statement - continued
for the six months ended 30 June 2018
6 months 6 months Year
ended ended ended
30 June 30 June 31 December
2018 2017 2017
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Net increase in cash and cash equivalents 19,533 1,606 3,284
Cash and cash equivalents at beginning of period 6,266 2,931 2,931
Exchange adjustment (11) (2) 51
Cash and cash equivalents at end of period 25,788 4,535 6,266
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) 27,549 5,329 7,528
Bank overdrafts (1,761) (794) (1,262)
Cash and cash equivalents at end of period 25,788 4,535 6,266
£120,000 cash deposits at 30 June 2018 were charged as security to debenture
stocks.
Notes to the half year report
for the six months ended 30 June 2018
1. Segmental analysis 6 months 6 months Year
ended ended ended
30 June 30 June 31 December
2018 2017 2017
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Revenue
LAP
- Rental Income 2,799 3,136 6,825
- Management income from third parties 268 286 542
Bisichi
- Rental Income 549 558 1,112
- Mining 22,858 16,174 36,334
Dragon
- Rental Income 83 83 166
26,557 20,237 44,979
Operating profit
LAP 1,182 1,400 3,556
Bisichi 4,240 500 3,995
Dragon 71 61 -
5,493 1,961 7,551
(Loss)/profit before taxation
LAP (308) (237) 9,614
Bisichi 3,939 221 1,696
Dragon 49 39 (32)
3,680 23 11,278
2. Finance costs 6 months 6 months Year
ended ended ended
30 June 30 June 31 December
2018 2017 2017
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Finance income 25 61 105
Finance expenses:
Interest on bank loans and overdrafts (1,051) (1,109) (2,223)
Other loans (659) (726) (1,414)
Unwinding of discount (Bisichi Mining PLC) - (48) (92)
Interest on derivatives (141) (166) (337)
Interest on obligations under finance leases (124) (128) (202)
Total finance expenses (1,975) (2,177) (4,268)
(1,950) (2,116) (4,163)
Notes to the half year report - continued
3. Income tax 6 months 6 months Year
ended ended ended
30 June 30 June 31 December
2018 2017 2017
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Current tax 1,810 108 364
Deferred tax (869) (101) 2,618
941 7 2,982
4. Earnings per share 6 months 6 months Year
ended ended ended
30 June 30 June 31 December
2018 2017 2017
(unaudited) (unaudited) (audited)
Group profit/(loss) after tax (£’000) 961 (104) 7,686
Weighted average number of shares in issue for the period ('000) 85,322 85,322 85,322
Basic earnings per share 1.13p (0.12)p 9.01p
Diluted number of shares in issue ('000) 85,322 85,322 85,322
Diluted earnings per share 1.13p (0.12)p 9.01p
5. Properties
Properties at 30 June 2018 are included at valuation as at 31 December 2017,
plus additions in the period.
No properties were sold during the six months ended 30 June 2018.
£36.441 million of assets held for sale (Brixton markets) at 31 December
2017, were sold in April 2018.
6. Interest rate derivatives
At 30 June 2018 the fair value liability was £267,000 as valued by the hedge
provider (30 June 2017: £612,000, 31 December 2017: £435,000).
At 30 June 2018 the fair value asset was nil as valued by the hedge provider
(30 June 2017: £2,000, 31 December 2017: £1,000).
Under IFRS 13 the hedges are not deemed to be eligible for hedge accounting
and any movement in the value of the hedge is charged directly to the
consolidated income statement.
Notes to the half year report - continued
7. Net assets per share 30 June 30 June 31 December
2018 2017 2017
(unaudited) (unaudited) (audited)
Shares in issue ('000) 85,322 85,322 85,322
Net assets per balance sheet (£'000) 46,498 38,010 45,854
Basic net assets per share 54.50p 44.55p 53.74p
Shares in issue diluted by outstanding share options ('000) 85,322 85,322 85,322
Net assets after issue of share options (£'000) 46,498 38,010 45,854
Fully diluted net assets per share 54.50p 44.55p 53.74p
8. 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 2017.
9. Dividends
There is no interim dividend payable for the period (30 June 2017: Nil).
The final and special dividend in respect of 2017 of 0.3p per share, amounting
to £256,000, is payable on 14 September 2018. As the 2017 final dividend
was approved by the shareholders at the Annual General Meeting held on 19 June
2018, it is included as a liability in these interim financial statements.
10. Risks and uncertainties
The group’s principal risks and uncertainties are reported on pages 7 and 8
in the 2017 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) and the valuation of interest rate derivatives.
For our subsidiary, Bisichi Mining PLC, it also 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).
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 2017 are based upon the latest statutory accounts,
which have been delivered to the Registrar of Companies; the report of the
auditor’s 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
Services 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' as adopted by the
European Union 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 as adopted by the European Union. The same
accounting policies are used for the six months ended 30 June 2018 as were
used for the year ended 31 December 2017.
As stated in the 2017 Annual Report in the group accounting policies, Bisichi
Mining 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 following new and revised standards that are applicable to the group were
issued but not yet effective:
IFRS 16 – Leases
The following new standards have become effective and have been adopted by the
Group during the year:
IFRS 15 – Revenue from Contracts with Customers
The Group has applied IFRS 15 retrospectively and the new standard had no
material financial impact on the accounts.
IFRS 9 – Financial Instruments
The adoption of IFRS 9 has resulted in changes in the Group's accounting
policies for the recognition, classification and measurement of financial
assets and financial liabilities and impairment of financial assets. The only
material impact of IFRS 9 on the Group financial statements related to the
movement in fair value of the Groups held for trading (previously available
for sale) investments and non-current other investments (“the
investments”). Under IAS 39 the movement in the investments was measured at
fair value through other comprehensive income and taken to an available for
sale reserve. Under IFRS 9 the movements are measured at fair value through
profit and loss and taken to retained earnings. The Group has not restated
prior periods as allowed by the transition provisions of IFRS 9.
There is no material seasonal impact on the group’s financial performance.
Taxes on income in the interim periods are accrued using tax rates expected to
be applicable to total annual earnings.
The interim financial statements have been prepared on the going concern basis
as the Directors are satisfied the group has adequate resources to continue in
operational existence for the foreseeable future.
12. Board approval
The half year results were approved by the Board of London & Associated
Properties PLC on 23 August
2018.
Directors' responsibility statement
The Directors confirm that to the best of their knowledge:
(a) the condensed set of financial statements have been prepared in accordance
with applicable accounting standards and IAS 34 Interim Financial Reporting as
adopted by the 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 2017
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 23 August 2018
Sir Michael Heller Anil
Thapar
Director
Director
Directors and advisors
Directors
Executive directors
* Sir Michael Heller MA FCA (Chairman)
John A Heller LLB MBA (Chief Executive)
Anil K Thapar FCCA (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
Anil K Thapar FCCA
24 Bruton Place,
London W1J 6NE
Registrars & transfer office
Link Asset Services Shareholder Services
The Registry, 34 Beckenham Road
Beckenham, Kent BR3 4TU
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) Website: www.linkassetservices.com E-mail: shareholderenquiries@linkgroup.co.uk
Company registration number
341829 (England and Wales)
Website
www.lap.co.uk
E-mail
admin@lap.co.uk
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