FOR IMMEDIATE RELEASE
31 August 2017
LONDON & ASSOCIATED PROPERTIES PLC
HALF YEAR RESULTS
TO 30 JUNE 2017
London & Associated
Properties PLC is a main market listed group which invests in UK
shopping centres and retail 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
- Group operating profit increased to £1.961 million to
June 2017 from £1.615 million to
June 2016
- Group net assets attributable to equity shareholders of £38.01
million at 30 June 2017 compared to
£38.24 million at 31 December
2016
- Property income of LAP increased to £3.136 million for the six
months to 30 June 2017 compared to
£3.040 million for the six months to 30 June
2016
- Savings of £0.095 million in LAP direct property expenses to
June 2017
- LAP and Bisichi properties continue to perform well
- Bisichi Mining PLC achieved earnings before interest, tax,
depreciation and amortisation of £1.4 million (2016 £1.0
million)
- Physical demand for Bisichi coal remains strong and
international and South African coal prices have remained
stable
- ‘’The Brexit referendum followed by the General Election have
made a difficult environment even more uncertain. However, we
have positioned our property portfolio to meet the market
challenges and remain confident about the future’’ commented on
interim results, 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
2017
Half year review
We are pleased to report on a half-year of progress for
London & Associated Properties
PLC group (“Group”). The results of Bisichi Mining PLC (“Bisichi”),
of which we own 41.5%, are included as though it was a subsidiary,
in accordance with IFRS 10.
The United Kingdom trading
environment continues to be difficult. The combined
uncertainties caused by Brexit followed by the General Election and
the resultant minority Conservative government have led to
retailers and other participants in the commercial property world
adopting a very cautious approach.
Operating profit before tax increased by £0.346 million (to
£1.961 million from £1.615 million). This improvement is
attributable to increased property income (£0.117 million)
supported by cost reductions and better mining profits. A
favourable movement in the valuation of interest rate derivatives
(£0.656 million), although having no impact on cash flow, was a
significant contributor to the overall increase of £0.906 million
in profit before tax.
Group net assets attributable to equity shareholders are lower
at £38.01 million at 30 June 2017
compared to £38.89 million a year previously and £38.24 million at
31 December 2016. This variation from group net assets arises
because the profits attributable to minority interests are excluded
when calculating net assets attributable to equity shareholders in
London & Associated Properties
PLC (“LAP”).
LAP activities
We are pleased to report that property income in LAP increased
to £3.136 million for the six months to June
2017 compared to £3.040 million in the same period in
2016. This increase is the result of a number of lettings
across our portfolio, particularly at Kings Square in West
Bromwich. This performance reflects our long-held view
that our portfolio of retail properties continues to be relevant in
the digital shopping age. Our strategy has been to retain
only those properties that are either: part of a large shopping
environment, such as a city centre; or that offer a more exciting
and social experience, such as our markets in Brixton; or are
convenience shops in accessible High Streets where shoppers can
easily make frequent trips for “top-up” items.
We have made savings of £0.095 million in direct property
expenses, although these were offset by increases in some
exceptional overhead costs, including an interim property
revaluation for one of our lenders, legal fees relating to charging
a property to a different lender and litigation expenses in
relation to ongoing cases against two of our tenants.
We are endeavouring to reduce interest costs and on
2nd June we repaid £750,000 of debenture stock carrying
a legacy coupon of 11.6%. The final £3 million of this debenture
stock matures in August 2018. We are in the process of
refinancing this debt and expect to make significant savings
compared to the 11.6% that we are currently paying.
Performance of LAP
properties
At Orchard Square, Sheffield,
we have completed several lettings and the Centre remains almost
fully let. Furthermore, we continue to renew leases to
existing tenants at estimated rental value. For example, the
Perfume Shop will continue to occupy a prime unit on Fargate,
Sheffield that we built for it in
2008. Currently, we have one retail unit and one office suite
that are available and have held talks with potential tenants on
both of these spaces.
Our two markets in Brixton continue to trade well and
grow. We have a disagreement with our tenant, Market Village,
over whether two heads of expenditure are deductible under the
terms of the leases that we have with it. This is due to be
decided at Court later this year. However, the performance of
this asset continues to be strong and is unaffected by this
dispute.
Our smaller asset in Brixton remains an exciting
opportunity. Shareholders will recall that we obtained
planning consent to convert the upper floors to residential units
in 2015, although this consent was subsequently questioned at
judicial review and quashed as Lambeth
Council chose not to defend itself. We have now agreed
a 20 year lease with a major cocktail bar chain at over double the
rent paid by the existing occupier. We remain in the process
of obtaining vacant possession and are confident of success in due
course.
All the malls at Kings Square, our shopping centre in
West Bromwich, have now been fully
let for the first time in many years. There remains a single
unit outside the main building on which the tenant has exercised
its break clause. This unit previously operated as a
bookmaker and is adjacent to West Bromwich’s large and busy bus
terminus so we do not expect re-letting to be difficult.
West Bromwich has also
benefited from a significant drop in rateable values following the
government revaluation in April 2017. We expect these savings
to accrue to the tenants over the short to medium term, but we
should then benefit from higher rents as the overall cost of
occupation reduces.
Our joint venture with Oaktree Capital Management has had a
successful first half of 2017. The three shopping centres it
owns have performed well, particularly at the Vancouver Centre in
King’s Lynn, where we obtained planning consent for a 32,790 square
feet building on the site of a former Beales department store and
we are about to commence construction.
The largest unit within this building has been pre-let to
H&M. The project should take 12 months to complete.
Bisichi
For the half year to 30 June 2017,
Bisichi Mining PLC, of which LAP owns 41.5%, achieved earnings
before interest, tax, depreciation and amortisation of £1.4 million
(2016: £1.0 million).
Production at Black Wattle, Bisichi’s directly owned coal mining
asset in South Africa, was
impacted by higher than expected seasonal rains, as well as ongoing
stone contamination issues at the opencast areas. Overall, the mine
achieved total production of 582,000 metric tonnes (2016: 795,000
metric tonnes) in the six months. Although this was an improvement
on the 466,000 metric tonnes achieved in the second half of last
year, management has planned for further progress to be made in
developing the opencast areas and increasing production in the
second half of this year.
The majority of new infrastructure improvements to the coal
washing plant are completed.
In terms of markets, the demand for Bisichi’s coal remained
strong and international and domestic coal prices have continued to
remain stable for most of the first half of 2017. The
increase in Bisichi revenue compared to the same period in 2016 is
attributable mainly to the appreciation of the Rand against UK
sterling, as well as improved coal prices. In turn, the increase in
Bisichi operating costs compared to the same period in 2016 is
mainly attributable to the appreciation of the Rand against UK
sterling, as well as increased mining costs at new opencast mining
areas.
Bisichi’s UK retail property portfolio, which is managed by LAP,
also continues to perform well.
Outlook
These results reflect the hard work of all the LAP directors,
employees and advisors in challenging times. The Brexit
referendum and General Election have made a difficult environment
even more uncertain. However, we have positioned our property
portfolio to meet the market challenges, and remain confident about
the future.
The Board is not proposing a half year dividend (2016: nil).
Sir Michael Heller
John Heller
Chairman
Chief Executive
30 August 2017
Consolidated income statement
for the six months ended 30 June 2017
|
|
|
6 months |
6
months |
Year |
|
|
|
ended |
ended |
ended |
|
|
|
30 June |
30
June |
31 December |
|
|
|
2017 |
2016 |
2016 |
|
|
|
(unaudited) |
(unaudited) |
(audited) |
|
Notes |
£’000 |
£’000 |
£’000 |
Group
revenue |
1 |
20,237 |
14,319 |
29,704 |
Operating costs |
|
(18,276) |
(12,707) |
(26,860) |
Income from listed
investments held for trading |
|
- |
3 |
2 |
Operating
profit |
1 |
1,961 |
1,615 |
2,846 |
Finance income |
2 |
61 |
65 |
144 |
Finance expenses |
2 |
(2,177) |
(2,099) |
(4,292) |
Result before
valuation and other movements |
|
(155) |
(419) |
(1,302) |
|
|
|
|
|
Non–cash changes in
valuation of assets and liabilities and other movements |
|
|
|
|
Increase in value of
investment properties |
|
– |
– |
532 |
(Decrease)/increase in
trading investments |
|
(1) |
2 |
1 |
Increase in value
of other investments |
|
– |
11 |
12 |
Adjustment to interest
rate derivatives |
|
179 |
(477) |
(217) |
Result including
revaluation and other movements |
|
23 |
(883) |
(974) |
Profit/(loss) for the
period before taxation |
1 |
23 |
(883) |
(974) |
Income tax charge |
3 |
(7) |
(366) |
(1,175) |
Profit/(loss) for the
period |
|
16 |
(1,249) |
(2,149) |
|
|
|
|
|
Attributable
to: |
|
|
|
|
Equity holders of the
Company |
|
(104) |
(1,327) |
(2,357) |
Non–controlling
interest |
|
120 |
78 |
208 |
Profit/(loss) for the
period |
|
16 |
(1,249) |
(2,149) |
|
|
|
|
|
Loss per share
attributable to equity shareholders – basic and diluted |
4 |
(0.12)p |
(1.56)p |
(2.77)p |
|
|
|
|
|
|
|
|
Consolidated statement of comprehensive income
for the six months ended 30 June 2017
|
30 June |
30 June |
31 December |
|
2017 |
2016 |
2016 |
|
(unaudited) |
(unaudited) |
(audited) |
|
|
|
|
|
£'000 |
£'000 |
£'000 |
|
|
|
|
Profit/(loss) for the
period |
16 |
(1,249) |
(2,149) |
Other comprehensive
income: |
|
|
|
|
|
|
|
Items that may be subsequently
recycled to the income statement: |
|
|
|
Exchange differences on translation
of foreign operations |
7 |
491 |
1,106 |
Transfer of gain/(loss) on available
for sale investments |
28 |
63 |
193 |
Taxation |
(3) |
(13) |
(13) |
Other comprehensive income for
the period, net of tax |
32 |
541 |
1,286 |
Total comprehensive
income/(expense) for the period, net of tax |
48 |
(708) |
(863) |
Attributable to: |
|
|
|
Equity shareholders |
(91) |
(1,126) |
(1,864) |
Non–controlling interest |
139 |
418 |
1,001 |
|
48 |
(708) |
(863) |
Consolidated balance sheet
at 30 June
2017
|
|
30 June |
30 June |
31 December |
|
|
2017 |
2016 |
2016 |
|
|
(unaudited) |
(unaudited) |
(audited) |
|
|
|
|
|
|
Notes |
£'000 |
£'000 |
£'000 |
Non–current assets |
|
|
|
|
Market value of properties
attributable to Group |
|
105,100 |
104,496 |
105,080 |
Present value of head leases |
|
4,763 |
4,772 |
4,767 |
Property |
5 |
109,863 |
109,268 |
109,847 |
Mining reserves, plant and
equipment |
|
8,949 |
6,478 |
8,653 |
Investments in joint ventures |
|
455 |
325 |
455 |
Loan to joint venture |
|
1,398 |
1,105 |
1,350 |
Held to maturity investments |
|
1,748 |
1,874 |
1,874 |
Other investments |
|
46 |
28 |
32 |
Deferred tax |
|
1,139 |
2,027 |
1,134 |
|
|
123,598 |
121,105 |
123,345 |
Current assets |
|
|
|
|
Inventories |
|
842 |
2,117 |
1,721 |
Trade and other receivables |
|
6,352 |
7,262 |
7,061 |
Interest rate derivatives |
6 |
2 |
4 |
4 |
Corporation tax recoverable |
|
– |
– |
32 |
Available for sale investments |
|
779 |
654 |
781 |
Investments held for trading |
|
18 |
22 |
19 |
Cash and cash equivalents |
|
5,329 |
7,123 |
6,265 |
|
|
13,322 |
17,182 |
15,883 |
Total assets |
|
136,920 |
138,287 |
139,228 |
Current liabilities |
|
|
|
|
Trade and other payables |
|
(14,268) |
(12,407) |
(12,942) |
Borrowings |
|
(806) |
(2,981) |
(4,108) |
Current tax liabilities |
|
(117) |
(145) |
(21) |
|
|
(15,191) |
(15,533) |
(17,071) |
Non–current liabilities |
|
|
|
|
Borrowings |
|
(64,544) |
(65,104) |
(64,401) |
Interest rate
derivatives |
6 |
(612) |
(1,053) |
(793) |
Present value of head leases on
properties |
|
(4,763) |
(4,772) |
(4,767) |
Provisions |
|
(1,283) |
(1,028) |
(1,236) |
Deferred tax liabilities |
|
(2,239) |
(2,155) |
(2,329) |
|
|
(73,441) |
(74,112) |
(73,526) |
Total liabilities |
|
(88,632) |
(89,645) |
(90,597) |
Net assets |
|
48,288 |
48,642 |
48,631 |
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) |
|
(725) |
(962) |
(728) |
Capital redemption reserve |
|
47 |
47 |
47 |
Retained earnings (excluding treasury shares) |
|
25,413 |
26,681 |
25,648 |
Treasury shares |
|
(145) |
(294) |
(145) |
Retained earnings |
|
25,268 |
26,387 |
25,503 |
Total equity attributable to
equity shareholders |
|
38,010 |
38,892 |
38,242 |
Non – controlling interest |
|
10,278 |
9,750 |
10,389 |
Total equity |
|
48,288 |
48,642 |
48,631 |
|
|
|
|
|
Net assets per share attributable
to equity shareholders |
7 |
44.55p |
45.70p |
44.83p |
Diluted net assets per share
attributable to equity shareholders |
7 |
44.55p |
45.70p |
44.83p |
Consolidated statement of changes in shareholders’
equity
for the six months ended 30 June 2017
|
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 2016 |
8,554 |
4,866 |
(1,145) |
47 |
(482) |
28,238 |
40,078 |
9,574 |
49,652 |
(Loss)/profit for the period |
– |
– |
– |
– |
– |
(1,327) |
(1,327) |
78 |
(1,249) |
Other comprehensive
income: |
|
|
|
|
|
|
|
|
|
Currency translation |
– |
– |
183 |
– |
– |
– |
183 |
308 |
491 |
Gain on available for sale
investments (net of tax) |
– |
– |
– |
– |
– |
18 |
18 |
32 |
50 |
Total other comprehensive
income |
– |
– |
183 |
– |
– |
18 |
201 |
340 |
541 |
Total comprehensive
income/(expense) |
– |
– |
183 |
– |
– |
(1,309) |
(1,126) |
418 |
(708) |
Transactions with
owners:
Share options charge |
– |
– |
– |
– |
– |
6 |
6 |
8 |
14 |
Dividends – equity holders |
– |
– |
– |
– |
– |
(136) |
(136) |
– |
(136) |
Dividends –
non–controlling
Interests |
– |
– |
– |
– |
– |
– |
– |
(250) |
(250) |
Disposal of own shares |
– |
– |
– |
– |
70 |
– |
70 |
– |
70 |
Loss on transfer of own shares |
– |
– |
– |
– |
118 |
(118) |
– |
– |
– |
Transactions with owners |
– |
– |
– |
– |
188 |
(248) |
(60) |
(242) |
(302) |
Balance at 30 June 2016
(unaudited) |
8,554 |
4,866 |
(962) |
47 |
(294) |
26,681 |
38,892 |
9,750 |
48,642 |
|
|
|
|
|
|
|
|
|
|
Balance at 1 January 2016 |
8,554 |
4,866 |
(1,145) |
47 |
(482) |
28,238 |
40,078 |
9,574 |
49,652 |
(Loss/profit for year |
– |
– |
– |
– |
– |
(2,357) |
(2,357) |
208 |
(2,149) |
Other comprehensive
income: |
|
|
|
|
|
|
|
|
|
Currency translation |
– |
– |
417 |
– |
– |
– |
417 |
689 |
1,106 |
Gain on available for sale
investments (net of tax) |
– |
– |
– |
– |
– |
76 |
76 |
104 |
180 |
Total other comprehensive
income |
– |
– |
417 |
– |
– |
76 |
493 |
793 |
1,286 |
Total comprehensive
income/(expense) |
– |
– |
417 |
– |
– |
(2,281) |
(1,864) |
1,001 |
(863) |
Transaction with owners: |
|
|
|
|
|
|
|
|
|
Share options charge |
– |
– |
– |
– |
– |
45 |
45 |
64 |
109 |
Dividends – equity holders |
– |
– |
– |
– |
– |
(136) |
(136) |
– |
(136) |
Dividends –
non–controlling
Interests |
– |
– |
– |
– |
– |
– |
– |
(250) |
(250) |
Disposal of own shares |
– |
– |
– |
– |
119 |
– |
119 |
– |
119 |
Loss on transfer of own shares |
– |
– |
– |
– |
218 |
(218) |
– |
– |
– |
Transactions with owners |
– |
– |
– |
– |
337 |
(309) |
28 |
(186) |
(158) |
Balance at 31 December 2016
(audited) |
8,554 |
4,866 |
(728) |
47 |
(145) |
25,648 |
38,242 |
10,389 |
48,631 |
Consolidated statement of changes in shareholders’
equity - continued
for the six months ended 30 June 2017
|
|
|
|
|
|
|
|
|
|
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 |
48,631 |
Profit/(loss) 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) |
(391) |
Balance at 30 June 2017
(unaudited) |
8,554 |
4,866 |
(725) |
47 |
(145) |
25,413 |
38,010 |
10,278 |
48,288 |
Consolidated cash flow statement
for the six months ended 30 June 2017
|
6 months |
6 months |
Year |
|
ended |
ended |
ended |
|
30 June |
30 June |
31 December |
|
2017 |
2016 |
2016 |
|
(unaudited) |
(unaudited) |
(audited) |
|
|
|
|
|
£'000 |
£'000 |
£'000 |
Operating activities |
|
|
|
Profit/(loss) for the year before
taxation |
23 |
(883) |
(974) |
Finance income |
(61) |
(65) |
(144) |
Finance expense |
2,177 |
2,099 |
4,292 |
(Increase)/decrease in value of
investment properties |
– |
– |
(532) |
(Increase)/decrease) in trading
investments |
1 |
(2) |
(1) |
(Increase)/decrease in value of
other investments |
– |
(11) |
(12) |
Adjustment to interest rate
derivative |
(179) |
477 |
217 |
Depreciation |
962 |
751 |
1,818 |
Profit on disposal of non–current
assets |
(3) |
(18) |
(32) |
Share based payment expense |
– |
14 |
109 |
Gain on investment held for
trading |
– |
– |
4 |
Exchange adjustments |
28 |
– |
(449) |
Change in inventories |
881 |
(824) |
(258) |
Change in
receivables
– continuing operations |
688 |
(586) |
468 |
Change in
receivables
– discontinued operations |
– |
424 |
– |
Change in payables |
970 |
792 |
1,080 |
Cash generated from
operations |
5,487 |
2,168 |
5,586 |
Income tax paid |
23 |
27 |
(57) |
Cash inflows from operating
activities |
5,510 |
2,195 |
5,529 |
Investing activities |
|
|
|
Disposal of shares and loans held to
maturity |
126 |
121 |
121 |
Disposal of assets held for
sale |
– |
2,335 |
2,275 |
Share of profit in joint ventures
(assets held for sale) |
– |
95 |
60 |
Acquisition of investment
properties, mining reserves, plant and equipment |
(1,282) |
(898) |
(3,022) |
Sale of investment properties, plant
and equipment – continuing operations |
36 |
18 |
32 |
Residual receipt from Windsor
Shopping Centre disposal – discontinued operations |
– |
– |
414 |
Interest
received |
228 |
99 |
133 |
Cash (outflows)/inflows from
investing activities |
(892) |
1,770 |
13 |
Financing activities |
|
|
|
Sale of treasury shares |
– |
70 |
119 |
Interest
paid |
(2,056) |
(1,962) |
(3,943) |
Interest on obligation under finance
leases |
(96) |
(71) |
(216) |
Repayment of debenture stocks |
(750) |
– |
– |
Receipt of bank loan – Bisichi
Mining PLC |
11 |
16 |
37 |
Repayment of bank loan – Bisichi
Mining PLC |
(58) |
(79) |
(131) |
Receipt of bank loan – Dragon Retail
Properties Ltd |
– |
17 |
– |
Equity dividends paid |
– |
– |
(136) |
Equity dividends paid –
non–controlling interests |
(63) |
(63) |
(250) |
Cash outflows from financing
activities |
(3,012) |
(2,072) |
(4,520) |
Consolidated cash flow statement - continued
for the six months ended 30 June 2017
|
6
months |
6
months |
Year |
|
ended |
ended |
ended |
|
30
June |
30
June |
31 December |
|
2017 |
2016 |
2016 |
|
(unaudited) |
(unaudited) |
(audited) |
|
|
|
|
|
£'000 |
£'000 |
£'000 |
Net increase in cash
and cash equivalents |
1,606 |
1,893 |
1,022 |
Cash and cash
equivalents at beginning of period |
2,931 |
2,575 |
2,575 |
Exchange adjustment |
(2) |
(318) |
(666) |
Cash and cash
equivalents at end of period |
4,535 |
4,150 |
2,931 |
|
|
|
|
|
|
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) |
5,329 |
7,123 |
6,265 |
Bank overdrafts |
(794) |
(2,973) |
(3,334) |
Cash and cash equivalents at end
of period |
4,535 |
4,150 |
2,931 |
£30,000 cash deposits at 30 June
2017 were charged as security to debenture stocks.
Notes to the half year report
for the six months ended 30 June 2017
|
|
|
|
1.
Segmental analysis |
6
months |
6
months |
Year |
|
ended |
ended |
ended |
|
30
June |
30
June |
31
December |
|
2017 |
2016 |
2016 |
|
(unaudited) |
(unaudited) |
(audited) |
|
|
|
|
|
£'000 |
£'000 |
£'000 |
Revenue |
|
|
|
LAP |
|
|
|
- Rental
Income |
3,136 |
3,040 |
6,241 |
-
Management income from third parties |
286 |
264 |
501 |
Bisichi |
|
|
|
- Rental
Income |
558 |
530 |
1,060 |
-
Mining |
16,174 |
10,395 |
21,731 |
Dragon |
|
|
|
- Rental
Income |
83 |
90 |
171 |
|
20,237 |
14,319 |
29,704 |
Operating profit |
|
|
|
LAP |
1,400 |
1,253 |
2,625 |
Bisichi |
500 |
298 |
181 |
Dragon |
61 |
64 |
40 |
|
1,961 |
1,615 |
2,846 |
|
|
|
|
Profit/(loss) before taxation |
|
|
|
LAP |
(237) |
(1,057) |
(1,150) |
Bisichi |
221 |
142 |
216 |
Dragon |
39 |
32 |
(40) |
|
23 |
(883) |
(974) |
|
|
|
|
2.
Finance costs |
6
months |
6
months |
Year |
|
ended |
ended |
ended |
|
30
June |
30
June |
31
December |
|
2017 |
2016 |
2016 |
|
(unaudited) |
(unaudited) |
(audited) |
|
|
|
|
|
£'000 |
£'000 |
£'000 |
|
|
|
|
Finance
income |
61 |
65 |
144 |
Finance
expenses: |
|
|
|
Interest
on bank loans and overdrafts |
(1,109) |
(1,131) |
(2,243) |
Other
loans |
(726) |
(659) |
(1,420) |
Unwinding
of discount (Bisichi Mining PLC) |
(48) |
(38) |
(78) |
Interest
on derivatives |
(166) |
(145) |
(302) |
Interest
on obligations under finance leases |
(128) |
(126) |
(249) |
Total
finance expenses |
(2,177) |
(2,099) |
(4,292) |
|
(2,116) |
(2,034) |
(4,148) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes to the half year report - continued
|
3. Income
tax |
6 months |
6
months |
Year |
|
ended |
ended |
ended |
|
30 June |
30
June |
31
December |
|
2017 |
2016 |
2016 |
|
(unaudited) |
(unaudited) |
(audited) |
|
|
|
|
|
£'000 |
£'000 |
£'000 |
Current tax |
108 |
141 |
73 |
Deferred tax |
(101) |
225 |
1,102 |
|
7 |
366 |
1,175 |
|
|
|
|
|
4. Earnings per share |
6 months |
6
months |
Year |
|
ended |
ended |
ended |
|
30
June |
30
June |
31
December |
|
2017 |
2016 |
2016 |
|
(unaudited) |
(unaudited) |
(audited) |
|
|
|
|
Group loss after
tax attributable to owners of the parent (£’000) |
(104) |
(1,327) |
(2,357) |
|
|
|
|
Weighted average
number of shares in issue for the period ('000) |
85,322 |
85,053 |
85,107 |
Basic
earnings per share |
(0.12)p |
(1.56)p |
(2.77)p |
Diluted number
of shares in issue ('000) |
85,322 |
85,053 |
85,107 |
Diluted
earnings per share |
(0.12)p |
(1.56)p |
(2.77)p |
5. Property
Properties at 30 June 2017 are
included at valuation as at 31 December
2016, plus additions in the period at cost.
During the six months ended 30 June
2017 the group had £0.02 million property additions
(30 June 2016: £0.1 million, 31
December 2016: £0.16 million).
No properties were sold during the six months ended 30 June 2017 (carrying value of properties sold
at 30 June 2016: £Nil, 31 December 2016: £Nil).
6. Interest rate derivatives
At 30 June 2017 the fair value
liability was £612,000 as valued by the hedge provider
(30 June 2016: £1,053,000,
31 December 2016: £793,000).
At 30 June 2017 the fair value
asset was £2,000 as valued by the hedge provider (30 June 2016: £4,000, 31
December 2016: £4,000).
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 |
|
2017 |
2016 |
2016 |
|
(unaudited) |
(unaudited) |
(audited) |
|
|
|
|
Shares in issue
('000) |
85,322 |
85,094 |
85,322 |
Net assets per balance
sheet (£'000) |
38,010 |
38,892 |
38,242 |
Basic net assets
per share |
44.55p |
45.70p |
44.83p |
|
|
|
|
Shares in issue
diluted by outstanding share options ('000) |
85,322 |
85,094 |
85,322 |
Net assets after issue
of share options (£'000) |
38,010 |
38,892 |
38,242 |
Fully diluted net
assets per share |
44.55p |
45.70p |
44.83p |
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 2016.
9. Dividends
There is no interim dividend payable for the period
(30 June 2016: Nil).
The final dividend in respect of 2016 of 0.165p per share,
amounting to £141,000, is payable on 15 September 2017. As
the 2016 final dividend was approved by the shareholders at the
Annual General Meeting held on 6 June
2017, 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 22 and 24 in the 2016 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).
Notes to the half year report - continued
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 2016 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' 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 2017 as were
used for the year ended 31 December
2016.
As stated in the 2016 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.
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 30
August
2017.
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 22
and 24 of the 2016 Annual Report. We do not assume any obligation
to update the forward-looking statements contained in this
report.
Signed on behalf of the Board on 30
August 2017
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
Capita Asset Services
The Registry, 34 Beckenham Road
Beckenham, Kent BR3 4TU |
UK
Telephone: 0871 664 0300
(Calls cost 12p per minute + network extras, lines are open Mon-Fri
9.00am to 5.30pm)
International Telephone: +44 208 639 3399
(Calls outside the United Kingdom will be charged at applicable
international rate)
Website: www.capitaassetservices.com
E-mail: shareholderenquiries@capita.co.uk |
|
Company
registration number |
341829 (England and
Wales) |
|
|
Website |
www.lap.co.uk |
|
E-mail |
admin@lap.co.uk |