Half-year Report

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: [phone]
            John Heller, Chief Executive 

          Baron Phillips Associates                                        Tel: [phone]
            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 2^nd 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	–	–	–	–	–				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	–	–		–	–	10	13	19	32
Total comprehensive income/(expense)	–	–		–	–	(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: [phone] (Calls cost 12p per minute + network extras, lines are open Mon-Fri 9.00am to 5.30pm) International Telephone: [phone] (Calls outside the United Kingdom will be charged at applicable international rate) Website: www.capitaassetservices.com E-mail: [e-mail]

Company registration number

341829 (England and Wales)

Website

www.lap.co.uk

E-mail

[e-mail]