REG-London & Associated Properties Plc: Half-year Report
30/09/2025 07:20
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)/profit for the period (2,442) 2,916 2,804
(Loss)/profit per share – basic and diluted 4 (1.50)p 0.06p (0.44)p
Consolidated statement of comprehensive income
for the six months ended 30 June 2025
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
Consolidated balance sheet
at 30 June 2025
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
Consolidated statement of changes in shareholders’ equity
for the six months ended 30 June 2025
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
Consolidated statement of changes in shareholders’ equity - continued
for the six months ended 30 June 2025
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
Consolidated cash flow 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)
£'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)
Consolidated cash flow statement - continued
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)
£'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
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) 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
Notes to the half year report
for the six months ended 30 June 2025
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)
Notes to the half year report – continued
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
5. Properties
Investment properties are held at fair value at each reporting period.
During the period no properties were acquired or sold.
The West Ealing development property is held as inventory at a value of
£8,996,000 being its net realisable value based on the latest cash flow
appraisal. An impairment provision of £1,152,000 has been made against the
cost of the development at 30 June 2025 (June 2024: £nil).
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
2024. Investment properties are therefore included at a directors’ valuation
which is the fair value at 30 June 2025. Please refer to page 52 of the 2024
Annual Report and Accounts for details on the valuation of investment and
inventory properties as at 31 December 2024.
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
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 2024.
8. Dividends
There is no interim dividend payable for the period (30 June 2024: Nil).
There is no final dividend payable in respect of 2024.
9. Risks and uncertainties
The group’s principal risks and uncertainties are reported on pages 9 and 10
in the 2024 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 2024 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 2024.
10. Contingent liabilities and events after the reporting period
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 year 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 108 of Bisichi’s 2024 Annual report and
Accounts.
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 2024 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, did not draw attention to any matters by
way of emphasis and did not contain a statement made under S498(2) or S498(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 2025 as were used for the year ended
31 December 2024.
As stated in the 2024 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 a going concern basis.
12. Board approval
The half year results were approved by the Board of London & Associated
Properties PLC on 30 September 2025.
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 9 and 10 of the
2024 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 30 September 2025
John Heller Jonathan Mintz
Director Director
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
E-mail
admin@lap.co.uk
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