Interim Results

London & Assoc Properties PLC
25 September 2001

FOR IMMEDIATE RELEASE
25th September 2001


                     LONDON & ASSOCIATED PROPERTIES PLC: 
            INTERIM RESULTS FOR SIX MONTHS TO 30TH JUNE 2001  

London & Associated Properties Plc is a specialist shopping centre investor
with property assets of £100m, two-thirds of which is concentrated in five
principal centres and malls. Multiple retailers generate almost 80% of the
company's annual rent roll.

                           HIGHLIGHTS

- Further profits advance to £1.14m

- Active property management programme will deliver further annual rental
  income of £372,000 following completion of current refurbishment and
  redevelopment activities for a capital expenditure of £2.5m

- Annualised rental income is some £9m against estimated rental value of £11m

- Net assets exceed £50m for first time

- Gearing stands at comfortable 95% with 50%+ of long term borrowings at
  variable interest rates

- Interest payable is twice covered by rental income

- Group property sales of £2m achieved during period

- Further £2.5m of Group property sales under offer with additional £3m being
  marketed

- John Heller today promoted to Chief Executive

'Your company is trading well and I expect the results for the remainder of
the year to be satisfactory,' Michael Heller, Chairman.


CHAIRMAN'S STATEMENT

I am pleased to report another advance in half-year profits for the six
months ending 30th June 2001, to £1.14m from £1.10m over the same period last
year. At the same time, turnover in the first half, which is derived
primarily from rental income, fell marginally to £4.4m from £4.44m.

This short-term fall in rental income reflects the continued successful
implementation of our programme of active property management. We have sold
£2m of mature investments during the period, and released shop units to allow
upgrading and redevelopment at our principal centres. The annual rental
income of the units being upgraded was £130,000, and in spite of this
shortfall like for like rental income actually increased by some 2.5%.

The programme of upgrading and redevelopment is virtually all pre-let and
will lead to an increased rent roll when construction is finished and
rent-free periods expire. As I stated at the time of our previous year-end
results, our centres continue to benefit from the aggressive expansion plans
of retailers targeting the more value conscious customer. Much of the
development programme aims to provide units for these retailers who typically
require between 3,500 and 5,000 sq ft of space. The rental value of our
developments in hand is some £372,000 pa while the related capital
expenditure is approx. £2.5m.

At 30th June 2001 the Company's net assets, including investments at market
value stood at £50.5m while the gross value of our property portfolio was
£100m, rising to £112m when properties owned both by our associate company,
Bisichi Mining Plc, and our joint venture company, Dragon Retail Properties
Ltd, are included. The Company's current annualised rental income for the
property portfolio is some £9.0m with an estimated rental value (ERV) of
around £11.0m.

Gearing, net of listed investments, at 30th June was a comfortable 95%. Just
over half of our long-term borrowings are at variable rates of interest; we
have therefore benefited from the fall in interest rates. Interest payable is
twice covered by rental income.

As shareholders know, LAP invests exclusively in shopping centres and malls
located in town and city centres, with almost 80% of our annual rent
generated by multiple retailers. Our five major shopping centres represent
two-thirds of our portfolio by value and offer excellent scope for active
management and growth.

We have continued to achieve considerable success in attracting a number of
major tenants to these centres. Although Orchard Square in Sheffield remains
fully let, we have secured planning permission to redevelop a block of four
smaller units, currently generating annual rents of £75,000, to create a
larger single unit with an ERV of £125,000. A number of national retailers
have expressed strong interest in this space, and we expect to pre-let the
unit in the near future. In keeping with our policy of avoiding speculative
development, construction will not begin until a tenant is committed to the
unit.

Further lettings at Orchard Square have been concluded during the period at
the increased £65 - 70 Zone A rate that was first achieved at the end of last
year. The true benefit of these latest lettings will be felt when we
undertake the bulk of rent reviews for the centre towards the middle of next
year. During 2002, approximately 71% of the leases by value will be reviewed.

We are also in the process of converting vacant upper parts at the rear of
Orchard Square into six city centre apartments. I am pleased to report that
we have taken deposits for all the units off-plan and they should generate
total sales of £500,000, making a satisfactory contribution to profits as the
sales are completed.

The comprehensive city centre redevelopment, which includes the block
containing the John Lewis store adjacent to Orchard Square, is now being
formulated and we believe that this will further enhance our shopping
centre's location as being in the very prime of Sheffield.

King's Square at West Bromwich remains fully let, which is an important
factor in obtaining rental growth. To the rear of the centre, we have now
received permission to create a 2,000 sq. ft. unit which will be outside
King's Square but adjacent to the new bus station which is currently under
construction. This bus station will combine with the adjacent tram
interchange to make our shopping centre the principal thoroughfare within the
centre of West Bromwich. There is good interest in the unit and, again, we
hope to agree a pre-let in the near future.

Saxon Square, Christchurch, will also be fully let in the near future. We are
due to complete a lease to an existing tenant who is relocating to a larger
unit. At the same time, the temporary tenant of this larger unit, a multiple
retailer, will sign a long lease on the unit being vacated at a record rent.
We are also finalising a proposal for the redevelopment of part of Saxon
Square and I hope to be able to report further on this in the near future.

Progress at Bletchley has been highly satisfactory, and 23,000 sq ft of the
adjacent 32,000 sq ft two-storey development, including the whole of the
ground floor, is under offer to a major national retailer. Following the
completion of a lease at £45,000 a year in a recently vacated unit, an
increase of 20%, the main concourse will again be fully let. We have also
renewed leases to a number of the principal tenants in the concourse, all of
which have been at levels that reflect the steady growth that we have
achieved.

The Mall in Dagenham is currently experiencing an exciting period of change.
J. Sainsbury, the anchor tenant, has closed its store although it remains
committed to paying rent for a further 29 years. A new anchor tenant is
currently very close to signing a lease to take over this unit and I
anticipate making an announcement in the near future.

We have continued our policy of selling mature properties and as a Group have
completed the sale or exchanged contracts to sell properties with a value of
some £2m so far this year. These sales were achieved at levels around book
value as at 31st December 2000. In addition a further £2.5m of sales are
under offer, and approximately £3m of property is currently being marketed.
The cash realised from these sales will be invested in our existing portfolio
as well as in new shopping centres as opportunities arise.

During the first half of this year we examined a number of shopping centres
that had been offered to us. However, none of them met our strict criteria
for purchase. Our balance sheet remains strong and we have sufficient
facilities to make further major acquisitions should suitable targets be
identified.

As shareholders are aware, LAP owns 42% of Bisichi Mining plc, which owns a
fully let retail property portfolio that we manage on its behalf. Bisichi's
South African coal mining subsidiary is now operating profitably and has made
a contribution of £57,000 to our half year profits.

Finally, your Board has given serious consideration over the last couple of
years to the question of management succession, and I am pleased to announce
that the Board has voted to promote John Heller to Chief Executive. John has
played a key role over the last few years in the expansion of your business,
and this appointment takes effect today. I will continue as Chairman

Your company is trading well and I expect the results for the remainder of
the year to be satisfactory.

Michael Heller
Chairman
25th September 2001

                                                           
Consolidated profit and loss account  
Six months ended 30 June 2001                                                   
                              
                                          6 months    6 months           Year 
                                             ended       ended          ended 
                                           30 June     30 June    31 December 
                                              2001        2000           2000 
                                 Note        £'000       £'000          £'000 
  Revenue                                                                     
  Property:                                                                   
  Income                                    4,397       4,442          8,816  
  Less - ground rents                        (222)       (207)          (423) 
  - direct property expenses                 (429)       (472)          (918) 
  - attributable overheads                   (780)       (735)        (1,458) 
                                            2,966       3,028          6,017 
 
  Listed investments:                                                         
  Investment sales                            210         395            721  
  Cost of sales                               (97)       (311)          (517) 
                                              113          84            204  

  Dividends receivable                         45          46             97  
  Less - attributable                          (7)         (6)           (13)   
  overheads                                                                   
                                              151         124            288  

  Operating profit                          3,117       3,152          6,305  
  Share of operating profit (loss) of         127          75            157  
  associate                                                                   
  Share of operating profit of joint          100          66            132  
  venture                                                                     
                                            3,344       3,293          6,594  

  Interest receivable                          33          43             63  
  Interest payable                         (2,233)     (2,235)        (4,499) 
  Exceptional items                            (4)         (8)            14  
  Profit on ordinary activities before      1,140       1,093          2,172  
  taxation                                                                    
  Taxation of profit on          1            265         334            334  
  ordinary activities                                                         
  Profit for the period                       875         759          1,838  


  Earnings per share - basic     2           1.13p       0.99p          2.39p 
  Earnings per share - diluted   2           1.08p       0.96p          2.29p 
  Dividend per share                             -           -          1.20p 
                                                      
                          
Consolidated balance sheet  
at 30 June 2001                                                                 
                   
                                           30 June     30 June    31 December 
                                              2001        2000           2000 
                                 Note        £'000       £'000          £'000 
  Fixed assets                                                                
  Properties and other           3        100,358      97,122        100,121  
  tangible assets                                                             
  Investments                               3,635       3,282          3,568  
  Total fixed assets                      103,993     100,404        103,689  

  Current assets                                                              
  Debtors                                   2,114       2,013          1,809  
  Investments (Market value -    4          2,434       2,376          2,405  
  £3,160,000)                                                                 
  Bank balances                               115          91            493  
                                            4,663       4,480          4,707  

  Creditors due within one                                                    
  year                                                                        
  Creditors and accruals                   (7,975)     (7,492)        (7,144) 
  Bank borrowings                          (3,132)     (3,316)        (4,435) 
                                          (11,107)    (10,808)       (11,579) 

  Net current liabilities                  (6,444)     (6,328)        (6,872) 

  Total assets less current                97,549      94,076         96,817  
  liabilities                                                                 

  Creditors due after more than one       (47,696)    (47,979)       (47,838) 
  year                                                                        

  Provisions for liabilities and             (110)        (94)          (110) 
  charges                                                                     

  Net assets                               49,743      46,003         48,869  


  Equity shareholders' funds               49,743      46,003         48,869  
 

This interim statement was approved by the board of directors on 24 September
2001.

                                                         
                       
Consolidated statement of total   
recognised gains and losses       
Six months ended 30 June 2001     
                                                                              
                                          6 months    6 months           Year 
                                             ended       ended          ended 
                                           30 June     30 June    31 December 
                                              2001        2000           2000 
                                             £'000       £'000          £'000 

  Profit for the financial period             875         759          1,838  

  Currency translation difference on                                          
  foreign currency net investments            (1)         (8)           (35) 

  Increase on revaluation of                                                  
  investment properties                                                       
  Company                                       -           -          2,159  
  Associate and joint venture                   -           -            308  
                                                                              
  Total gains and losses recognised in                                        
  the period                                  874         751          4,270  
                                                         
                       
Consolidated cash flow statement  
Six months ended 30 June 2001     
                                          6 months    6 months           Year 
                                             ended       ended          ended 
                                           30 June     30 June    31 December 
                                              2001        2000           2000 
                                             £'000       £'000          £'000 

  Operating profit                          3,117       3,152          6,305  
  Depreciation                                 50          46             93  
  (Profit) on disposal of fixed assets         (4)         (5)            (9) 
  Dividend from associated company              -           -             44  
  (Increase)decrease in current assets       (248)       (223)           (84) 
  Net cash flow from operating              2,915       2,970          6,349  
  activities                                                                  
  Returns on investments and servicing                                        
  of finance                               (1,680)     (2,229)        (4,315) 
  Taxation                                    142         (16)          (647) 
  Capital expenditure and financial                                           
  investment                                 (375)     (1,113)        (1,875) 
  Equity dividends paid                         -           -           (557) 
  Cash inflow before use of liquid                                            
  resources                                                                   
  and financing                             1,002        (388)        (1,045) 
  Management of liquid resources                -           -             95  
  Cash inflow (outflow) from financing       (150)       (100)          (205) 
  Increase (decrease) in cash in the          852        (488)        (1,155) 
  period                                                                      


  Reconciliation of net cash flow to                                          
  movement on net debt                                                        

  Increase (decrease) in cash in the          852        (488)        (1,155) 
  period                                                                      
  Net cash (outflow) inflow from                                              
  (reduction) increase in debt                150         100            200  
                                            1,002        (388)          (955) 
  Movements on current asset                   29         (75)           (46) 
  investments                                                                 
                                            1,031        (463)        (1,001) 
  Net debt at beginning of period         (49,737)    (48,736)       (48,736) 
  Net debt at end of period               (48,706)    (49,199)       (49,737) 

  Analysis of net debt                                                        
  Bank balances in hand                       115          91            493  
  Bank overdrafts                          (2,832)     (3,066)        (4,135) 
  Debt due within one year                   (300)       (250)          (300) 
  Debt due after one year                 (48,050)    (48,350)       (48,200) 
  Current asset investments                 2,434       2,376          2,405  
                                          (48,633)    (49,199)       (49,737) 
                                                                           
      
Notes to the interim results                                         

1.Taxation                                                           
                                       6 months    6 months           Year 
                                          ended       ended          ended 
                                        30 June     30 June    31 December 
                                           2001        2000           2000 
                                          £'000       £'000          £'000 

      Company                              241         323            297  
      Associate                             15           6             28  
      Joint Venture                          9           5              9  
                                           265         334            334  
 

                                                                              
The tax charge for 2000 and 2001 has been reduced due to the effect of      
accelerated capital allowances                                              
  

2.Earnings per share have been calculated as follows:-                      
 
                                                                             
                                          6 months    6 months           Year 
                                             ended       ended          ended 
                                           30 June     30 June    31 December 
                                              2001        2000           2000 

  Group profit on ordinary activities     £874,835    £759,000     £1,838,000 
  after tax                                                                   

  Weighted average number of shares in                                        
  issue for the period ('000)               77,607      76,380         76,953  

  Basic earnings per share                   1.13p       0.99p          2.39p 
  Dilution adjustments to earnings         £34,000     £34,000        £68,000 
  Diluted number of shares in issue         84,014      82,797         83,360  
  ('000)                                                                      

  Fully diluted earnings per share           1.08p       0.96p          2.29p 


3. Properties are included at valuation as at 31 December 2000 adjusted for 
additions and disposals since that date at cost or valuation.                   
                                              
  
4. Investments held as current assets                                           
                          
                                           30 June     30 June    31 December 
                                              2001        2000           2000 
                                             £'000       £'000          £'000 

  Listed investment portfolio at            3,160       3,314          3,278  
  market value                                                                

  Unrealised excess of market value           726         938            873  
  over costs                                                                  

  Listed investment portfolio at cost       2,434       2,376          2,405  
 
 

 
5.  The above financial information does not constitute statutory accounts
within the meaning of section 240 of the Companies Act 1985. The figures for
the year ended 31st December 2000 are based upon the latest statutory
accounts which have been delivered to the Registrar of Companies; the report
of the auditors on those accounts was unqualified and did not contain a
statement under Section 237(2) or (3) of the Companies Act 1985. The six
months figures use the same accounting policies as for the year ended 31
December 2000, and have not been audited or subject to review by the
company's auditors. 

 
6. Posting to shareholders
The interim statement will be sent to shareholders by mail. Copies are now
available at the Company's Registered Office: 8-10 New Fetter Lane, London
EC4A 1AF and may also be downloaded from the Company's website -
www.laprops.co.uk. 
 
 
 
Contact:  London & Associated Properties PLC.     Tel: [phone]
          Michael Heller, Chairman
          John Heller, Chief Executive
          Robert Corry, Finance Director
          Baron Phillips Associates               Tel: [phone]
          Baron Phillips