LONDON &
ASSOCIATED
PROPERTIES
ANNUAL REPORT 2024
Contents
Annual General Meeting
16 June 2025
Announcement of half year results to 30 June 2025
Late August 2025
Announcement of annual results for 2025
Late April 2026
OVERVIEW
1
LAP at a glance
2
Chairman and Chief Executive’s review 2024
STRATEGIC REPORT
4
Financial and performance review
9
Principal activities, strategy & business model
9
Risks and uncertainties
10 Bisichi risks and uncertainties
11 Key performance indicators
12 Corporate responsibility
GOVERNANCE
20 Directors & advisors
21 Directors’ report
24 Corporate Governance
26 Governance statement by the
Chairman of the remuneration committee
27 Annual remuneration report
32 Remuneration policy summary
34 Audit committee report
35 Directors’ responsibilities statement
37 Independent auditor’s report
FINANCIAL STATEMENTS
44 Consolidated income statement
44 Consolidated statement of comprehensive income
45 Consolidated balance sheet
46 Consolidated statement of changes in shareholders’ equity
47 Consolidated cash flow statement
48 Group accounting policies
55 Notes to the financial statements
84 Five year financial summary
Financial calendar
London & Associated Properties PLC 2024 1
London & Associated Properties PLC (“LAP” or the "Group") is a main
market listed group which invests in and manages UK industrial and
retail property. LAP owns £48.0 million of property and seeks to
create environments where tenants can thrive.
The Group also holds a substantial investment in Bisichi PLC, which
operates coal mines in South Africa and owns UK property and other
investments. In accordance with IFRS 10 the results of Bisichi have
been consolidated in the Group accounts.
FINANCIAL HIGHLIGHTS
Fully diluted net
assets per equity share
IFRS net assets
Properties portfolio
valuation*
32.91p
£50.6m
£48.0m
2023: 33.38p
2023: £48.3m
2023: £46.1m
*Includes investment properties, head leases,
assets held for sale and property inventory.
Excludes properties under management.
OVERVIEW
LAP at a glance
KEY PROJECTS
KEY PROJECTS
HIGHLIGHT
Property
• Runcorn Manor Park Industrial Estate
• Adlington Court Industrial Estate
• Essential community retail
• West Ealing development
• Runcorn industrial portfolio strong rental and value growth
• Warrington industrial portfolio strong rental and value growth
• Essential community retail portfolio steady rental and value growth
• Residential development – construction planned to start late 2025
Coal
production
• In South Africa, Black Wattle
produced 1.5m metric tonnes of Run
of Mine Coal in 2024 (2023: 0.8m
metric tonnes)
• The API4 price averaged $106 in 2024 compared to $120 in 2023
• 209,000 metric tonnes of coal were exported compared to 134,000 metric
tonnes in 2023, assisted by continuing efforts to improve rail infrastructure
in South Africa
• Total domestic and export sales of coal were 1.2 million metric tonnes
(2023: 1.0 million metric tonnes)
• These factors had a material positive impact on the results for the year
• Climate related risks are being addressed for coal processing operations
Equity
investments
• Investments valued at £15.0 million
(2023: £15.0 million)
• Dividend income of £0.34 million (2023: £0.56 million)
• Value increase of £0.07 million (2023: £0.76 million)
• Portfolio comprised listed equities and listed equity related funds involved
or invested in extractive and energy related business activities, including
entities involved in the extraction of commodities needed for the clean
energy transition
2 London & Associated Properties PLC 2024
I am pleased to present our accounts for the
12 months to 31 December 2024
CONSOLIDATED RESULTS
Total net assets of the Group at the year end were £50.6 million
(2023: £48.3 million). Total net assets attributable to shareholders
were £28.1 million (2023: £28.5 million). The Group profit before
tax was £4.4 million (2023: loss £3.5 million), with losses attributable
to shareholders of £0.4 million (2023: £3.9 million). The performance
of the Group this year has been supported by improvements in property
values and Bisichi's profits (as detailed in the Bisichi section below).
Our consolidated property portfolio was valued at £48.0 million at
31 December 2024 compared to £46.1 million on a like-for-like
basis a year earlier. This reflects a pleasing valuation increase
(including head leases) of £1.8 million.
Rental income for the Group (excluding sold properties and bad
debt charges) increased by £0.1 million (3.0%) to £3.5 million (2023:
£3.4 million). This result reflects the resilience of our assets; even in
the current high interest rate environment we have achieved
increased rents on many new lettings.
Rental income resilience can also be seen in our occupancy levels,
which were 96.4% at year end (2023: 97.3%). Rent collection levels
have similarly remained strong, with an improved 94% of Q1 2025
rents received to date compared to 92% at the corresponding time
last year.
We continue to monitor our cost base following the outsourcing
of our property management functions and our relocation to smaller
offices. LAP’s overheads were £0.3 million (11.3%) lower than in
2023.
LAP PROPERTY ACTIVITIES
Industrial
Industrial constitutes 29% (2023: 27%) of our investment property
portfolio by value.
At Manor Park, Runcorn, our 100,000 sq ft industrial estate had
been fully let, however we currently have one lease expiry where
the tenant will hand back the unit. We are negotiating with a
number of parties to take a new lease there. Demand remains
excellent and we are confident that we will have grown both the
rent on this unit and the estimated rental levels of the estate once
a new tenant has been identified.
At Adlington Court, Warrington, our 25,000 sq ft industrial estate, our
largest tenant by rental value who occupied two units went into
administration during the year. We took the decision to split the units
and have subsequently re-let one of them at a rent of £9.25 psf.
This compares very favourably with the previous passing rent of
£6.25 psf. The second unit required a higher level of refurbishment
and is now being marketed with strong interest being shown.
Essential Community Retail
Essential community retail constitutes 71% (2023: 73%) of our
investment property portfolio by value.
This part of our portfolio continues to perform well and remains
close to fully let. Income from these properties on a like for like
basis has risen by 6.1%. We continue to monitor each property’s
performance closely and spend significant energy seeking to minimise
residual costs and cash leakage. We did not dispose of any of these
assets during the year.
West Ealing
As previously reported, in 2024 we fully implemented the planning
consent for 56 flats and four retail units held by our joint venture,
Broadway Regen Limited.
In common with the rest of the residential development market this
project has experienced a difficult 2024. There have been
headwinds throughout, of which the most severe has been inflation
in construction costs. Contractors have responded with tender
prices in the range of £18-19 million. We and our advisors are
currently reviewing these tenders and looking to find savings where
possible. Pricing has also been affected by the perceived risk now
brought about by new regulation, particularly for tall buildings,
which is being factored into the tender process by construction
companies.
We are exploring a pre-sale of all the flats to minimise risk and
interest costs, and we are working with our lenders to agree the
best financial outcome for all parties. All of these elements are still
underway, and we remain hopeful that we will achieve a satisfactory
outcome, but there remain significant risks that may impact our
overall financial return from this project including further write-
downs of our equity position.
During the year, we terminated our relationship with the sponsor
and project manager of this development.
Purley
A planning application submitted in 2022 for 44 flats and 4 town
houses was rejected in January 2024 despite being recommended
for approval by the planning officer. Our appeal, although we won
on design and construction matters, was ultimately unsuccessful
and due to the cost and time involved in submitting a new planning
application, we have decided not to proceed with the project. The
business has since been closed. Impairment provisions for investments
of £0.5 million were made in 2023, accordingly the cessation of this
development has had limited financial effect in 2024.
DEBT MANAGEMENT
Our £13.6 million 5-year term loan with QIB (UK) PLC, expiring in
2027, is fully compliant and secured against a portfolio of retail and
industrial properties. The interest rate on the loan with QIB is at the
Bank of England base rate + 3.95% and there is no amortisation.
The lender has agreed to reduce the margin to 2.95% from May
2025, although this has not been formally documented.
STRATEGIC REPORT
Chairman and Chief Executive’s
review 2024
London & Associated Properties PLC 2024 3
STRATEGIC REPORT Chairman and Chief Executive’s review 2024
DRAGON RETAIL PROPERTIES
Since 2001, Dragon has owned a property in Clifton, Bristol let
partly to Boots the Chemist and partly to one of Bristol’s best-
known nightclubs. Dragon’s loan of £0.7 million from Santander was
renewed to July 2027, during the year.
BISICHI PLC
For 2024, Bisichi plc, our 41.6% owned subsidiary, made a profit
before interest, tax, depreciation and amortisation (EBITDA) of
£10.8 million (2023: £3.4 million) and an operating profit before
depreciation, fair value adjustments and exchange movements
(Adjusted EBITDA) of £10.4 million (2023: £2.6 million).
During 2024, Bisichi benefited from a significant improvement in
mining production and lower mining costs at their South African
coal mining asset, Black Wattle Colliery. This offset the lower prices
for its coal sold by Sisonke Coal Processing, Bisichi's South African
coal processing operation.
A successful transition to Bisichi's new mining area at Black Wattle
in late 2023 resulted in a steady improvement in mining production
in 2024 and lower mining costs compared to the reserves mined in
2023. We are pleased to report that Bisichi achieved production of
1.5 million metric tonnes in 2024, compared to 0.8 million metric
tonnes in 2023.
The increased production at Black Wattle also positively impacted
Sisonke Coal Processing, with coal sales increasing to 1.2 million
metric tonnes (2023: 1.0 million metric tonnes). As previously
reported, Transnet, the South African state rail operator and the
wider South African coal industry are working hard collectively to
implement measures to increase rail capacity. We are pleased to
report that during the period, Bisichi’s rail exports increased to
209,000 metric tonnes, compared to 134,000 metric tonnes in
2023. In 2024, the improved rail exports were offset by lower prices
of Free on Board (FOB) coal from Richards Bay Coal Terminal (API4
price) and achievable domestic prices. During the year, the API4
price averaged US$106 compared to US$120 in 2023. While lower
coal prices achievable during the year impacted revenue, the
increased coal sales volume enabled Bisichi’s revenue to rise to
£52.3 million (2023: £49.3 million).
Looking ahead to 2025, Bisichi remains optimistic about the
continued benefits from Black Wattle’s enhanced production and
the positive developments in rail logistics. However, it is mindful of
the current coal market volatility, with lower seaborne coal prices
reflecting a temporary build up in global coal supply and a
slowdown in demand. Bisichi is proactively managing this by
maintaining a diversified customer base and remains confident in
the long-term value of its South African operations.
Bisichi recognises the need for, and is committed to, the
diversification of its future business activities. Bisichi is continually
looking at alternative mining, commodity and renewable energy
related opportunities, as well as new opportunities to add to its
existing UK property and equities investment portfolios. In the
interim, Bisichi continues to work closely with Vunani Mining, its
BEE partner in Black Wattle and Sisonke Coal Processing, to ensure
that it is a responsible steward of its legacy coal operations taking
into account the climate-related risks outlined in our climate report
on page 12 and the impact these risks may have on all our
stakeholders.
Bisichi’s total non-current and current listed equity related
investments held at fair value through profit and loss were valued at
£15.0 million (2023: £15.0 million). Bisichi realised dividend income
from investments during the period of £0.34 million (2023: £0.56
million) and a gain in value from investments of £0.07 million (2023:
£0.76 million). Bisichi’s investment portfolios comprise primarily
listed equities and listed equity related funds involved or invested in
extractive and energy related business activities, including entities
involved in the extraction of commodities needed for the clean
energy transition.
In the UK, rental revenue from Bisichi’s retail property portfolio
remains a stable contributor, aggregating £1.3 million (2023: £1.3
million). We are also pleased to report that, in December 2024,
Bisichi executed a renewed five year term facility with Hodge Bank
limited for £3.9 million secured against Bisichi’s UK property
portfolio.
The directors of Bisichi recommend a final dividend of 4p (2023: 4p)
per share, of which LAP would receive £0.2 million. This would take
the total dividend per share for the year to 7p (2023: 7p) if
approved by its shareholders.
Finally, we would like to thank employees, advisers and stakeholders
for their ongoing efforts and support.
John Heller,
Chairman and Chief Executive
29 April 2025
4 London & Associated Properties PLC 2024
The financial statements for 2024 have been
prepared to reflect the requirements of IFRS 10. This
means that the accounts of Bisichi PLC (a London
Stock Exchange main market quoted company – BISI)
(“Bisichi”), have been consolidated with those of LAP.
Bisichi continues to operate as a fully independent company and
currently LAP owns only 41.6% of the issued ordinary share capital.
However, because related parties also have shareholdings in Bisichi
and there is a wide disposition of other shareholdings, LAP is
deemed under IFRS 10, to have effective control of Bisichi for
accounting purposes. This treatment means that the income and net
assets of Bisichi are disclosed in full and the value attributable to the
“non-controlling interest” (58.4%) is shown separately in the equity
section as a non-controlling interest. There is no impact on the net
assets attributable to LAP shareholders.
Dragon Retail Properties Limited (“Dragon”) and West Ealing
Projects Limited (“West Ealing”) are both 50:50 joint ventures with
Bisichi and are also consolidated. Another joint venture,
Development Physics Limited (“DPL”) was owned 33% each by LAP,
Bisichi and a third party. This too is consolidated but was dissolved
in Q1 2025, following cessation of its activities.
Shareholders are aware that LAP is a property business with a
significant investment in a listed mining company.
The effect of consolidating the results, assets and liabilities of the
property business and the mining company makes the figures
complex and less transparent. Property company accounts are already
subject to significant volatility as valuations of property assets as well
as derivative liabilities can be subject to major movements based on
market sentiment. Most of these changes, though, have little or no
effect on the cash position and it is, of course, self-evident that cash
flow is the most important factor influencing the success of a
property business. We explain the factors affecting the property
business first, clearly separating these from factors affecting the
mining business which we do not manage. Comments about Bisichi
(the mining business) are based on information provided by the
independent management of that company.
This report comments on the performance of each of the Group’s
segments separately.
LONDON & ASSOCIATED PROPERTIES PLC
We own industrial and community essential retail property and
additionally are seeking to develop housing for local communities.
Our key objective is to ensure that we offer safe and secure
environments for people to live and work in and visit.
LAP’s core objectives in 2024 have continued to be:
• Provide environments in which tenants can thrive.
• Continually improve our operating cashflow.
• Maintain minimal exposure to the fashion led or shopping centre
retail sector.
• Ensure gearing is at an appropriate level.
• Maintain sufficient cash in the business to be able to take
advantage of opportunities as they arise.
Rental Income and Occupancy
As at 15 April 2025 Q1 2025 collections were 94% (2024: 92%).
We continue to engage with occupiers to ensure our properties
contain a diversified mix of tenants to match customers’ evolving
requirements. This is particularly applicable to our essential retail
assets, that serve local communities.
Like for like net rental income was down by £61,000 (2.4%). During
the year there was an increase in our doubtful debt provisions of
£345,000 from 2023, predominantly against three of larger tenants
who encountered financial difficulty. Whilst these units have now
been relet, provisions have been made for unpaid rent should we
ultimately be unable to recover the amounts due. Excluding
provisions and development properties, net rental income increased
by £74,000 (2.9%).
After excluding sales and acquisitions over the past two years, like
for like gross rental income was up £101,000 (3.0%) as shown
below. There was £162,000 of net increases in rents from lease
reviews, renewals and new lettings and a net decrease of £61,000
from rent lost due to expiries and subsequent vacant periods.
Gross Rental Income (£'000)
Gross Rental Income
Void levels increased slightly to 3.6% at 31 December 2024 (2023:
2.7%) but remain low across the portfolio. Whilst we have seen
some tenant failures this year contributing to the void rate, we have
received strong interest in these units with new tenants being
brought on board, often at increased rents. Voids are largely created
through the natural rotation of tenants when their requirements at
lease events have changed, and we do not have suitable
accommodation available. We monitor tenants’ requirements on a
regular basis and aim to understand their intentions in advance of
lease events.
Property Investment Activities
There were no property disposals or acquisitions during 2024. In
2023 we relinquished our interest in Orchard Square Limited as
described below and in note 6.
LAP continues to look for investment opportunities, particularly
within the industrial sector.
LAP also continues to develop and refurbish all its properties as
appropriate to provide environments in which tenants can thrive.
Our joint venture residential developments are discussed later in
this review.
STRATEGIC
REPORT
Financial and performance review
2023
Disposals
(1,133)
Leasing
162
Expiries
(61)
101
2024
4,532
3,510
London & Associated Properties PLC 2024 5
STRATEGIC REPORT
STRATEGIC REPORT Financial and performance review
INCOME STATEMENT
BUSINESS ANALYSIS
2024
£’000
2023
£’000
Rental income
2,303
3,323
Service charge income
149
451
Management income from third party properties
34
18
LAP Revenue
2,486
3,792
Direct property costs
(1,100)
(1,553)
Impairment of inventory
(900)
-
Overheads
(2,000)
(2,254)
Depreciation
(267)
(266)
Operating (loss)/profit
(1,781)
(281)
Finance income
92
110
Finance expenses
(1,437)
(2,094)
Result before valuation movements
(3,126)
(2,265)
Other segment items
Net increase/(decrease) on revaluation of investment properties
1,525
(150)
Gain/(loss) on disposal of subsidiaries
50
(1,930)
Profit/(loss) on disposal of fixed assets
-
4
Revaluation and other movements
1,575
(2,076)
LAP loss for the year before taxation
(1,551)
(4,341)
Note: The figures exclude inter-company transactions.
EBITDA
2024
£’000
2023
£’000
Operating (loss)/profit
(1,781)
(281)
Excluding non-cash items:
Depreciation & amortisation
267
266
Impairment of Inventory
900
-
EBITDA
(614)
(15)
Income from subsidiaries:
Management fees
236
236
Dividend income
311
666
Adjusted EBITDA
(67)
887
Funding & Refinancing Activities
No loans were repaid, or new loans or other forms of finance
assumed in 2024.
Our 5-year, £13.6m term loan with QIB taken out in 2022 was
covenant compliant throughout the year.
In 2023 our term loan with Phoenix CRE S.à.r.l of £12.7 million
became due. This loan is secured on a single property, Orchard Square,
Sheffield. The loan is non-recourse to the rest of the LAP Group. The
property was marketed for sale in 2023 with an agreement for sale
being reached with a buyer who was then unable to complete. LAP is
working collaboratively with and under the direction of the lender to
manage the property, completing key asset management activities
prior to remarketing the property for sale when sentiment improves.
As LAP has declined the opportunity to repay the loan and cure the
breach arising as a result, LAP has effectively lost control of the
asset. LAP no longer has exposure, or rights, to variable returns from
its involvement with Orchard Square Limited. In accordance with
IFRS10, the investment in Orchard Square Limited has been treated
as having been relinquished in July 2023. The results of Orchard
Square Limited are reflected in the Income Statement to July 2023
with neither the loan nor the asset being shown in the accounts at
31 December 2023 or 2024.
Further details can be found in note 19 to the accounts.
The loan relating to our development joint venture is discussed later
in this review.
The above figures for LAP and commentary below exclude the cash
items of management fee income from Bisichi and Dragon of
£236,000 (2023: £236,000) and dividend income from Bisichi of
£311,000 (2023: £666,000).
The non-cash item, loss on disposal of subsidiaries in 2023 relates
to our decision not to cure the breach of Orchard Square Limited’s
loan covenants and the subsequent loss of control as prescribed by
IFRS10. In 2024 our joint venture Development Physics Limited
closed with a net gain of £50,000 in the year as a result of releasing
provisions made in previous years.
We have again managed to reduce our overheads this year and
continue exploring opportunities to do so again in 2025.
LAP generated an adjusted EBITDA loss of £0.1 million (2023: profit
£0.9 million).
LAP generates the majority of its income from property rentals,
property management fees and development activities.
Interest costs in 2024 reduced by £749,000 due to the disposal of
Orchard Square Limited and increased by £92,000 due to a higher
average BoE base rate over the year compared to 2023.
Investment property valuation increases of £1.525 million (2023:
reductions of £0.15 million) arose from enhanced retail property
values of £0.3 million (2023: decrease £0.08 million) and
strengthened industrial property values of £1.225 million (2023:
decrease £0.07 million). Our retail assets - entirely consisting of
essential retail - have low vacancy rates and are witnessing steady
increases in rental levels at lease events, which is the main driver of
the value growth experienced in 2024.
Our industrial assets have seen several pleasing rent increases in
2024, which, similar to the retail portfolio, has been the main driver
of value growth.
Producing a profit through ongoing asset management activities to
generate further rental income, investing cash currently on deposit
at the appropriate time into new property investments combined
with generating returns from our existing investments, including
Bisichi, remains the key focus of the business for the future.
6 London & Associated Properties PLC 2024
STRATEGIC REPORT Financial and performance review
BALANCE SHEET
SEGMENT ASSETS
2024
£’000
2023
£’000
Non-current assets – property
25,870
23,801
Non-current assets – property, plant & equipment
832
268
Trading asset
8,996
8,889
Assets held for sale
-
545
Cash & cash equivalents
1,856
3,799
Current assets – others
1,319
1,237
Total assets excluding investment in joint ventures
38,873
38,539
Segment liabilities
Borrowings
(18,233)
(17,650)
Current liabilities
(3,142)
(3,238)
Non-current liabilities
(1,692)
(1,272)
Total liabilities
(23,067)
(22,160)
Net assets
15,806
16,379
Note: The figures exclude inter-company transactions between LAP, Bisichi and Dragon.
Total assets, consisting mainly of trading and investment properties,
have increased from £38.5 million to £38.9 million. LAP’s property
portfolio increased in value by £1.5m million on revaluation.
Property, plant and equipment increased by £0.5 million in the year
following the extension of the lease on our existing head office for a
further 3 years.
The trading asset is our residential development JV in Ealing. £1.0
million of development expenditure was incurred in the year, a significant
element of which related to non-cash items including bank costs and
interest. A £0.9 million impairment provision has been made to reflect
the Director’s assessment of the current value of the development.
Total liabilities, consisting mainly of bank loans, have increased from
£22.2 million to £23.1 million largely reflecting the increase in lending
to fund the investment in our residential development JV in Ealing.
LAP’s main borrowings consist of a £13.6 million term loan facility
expiring in August 2027 and a rolling development loan relating to
West Ealing of £4.9 million that expired in January 2025. The lender
continues to support us with the build out of the development. As
in previous years, all loans are secured on core property and are
covenant compliant at the year end.
GEARING
2024
£’000
2023
£’000
Total borrowings
18,233
17,650
Less cash and cash equivalents
(1,856)
(3,799)
Net borrowings
16,377
13,851
Total Equity
15,806
16,379
103.6%
84.6%
The business has not set a target gearing level but monitors its debt and asset values constantly to maintain an appropriate level,
considering market sentiment, the availability and cost of debt and cash flow forecasts.
CASH FLOW
CASH FLOW FROM OPERATIONS
2024
£’000
2023
£’000
Cash (outflows)/inflows from operating activities
(1,133)
1,121
Cash inflows from investing activities
403
641
Cash outflows from financing activities
(1,213)
(2,648)
Net decrease in cash and cash equivalents
(1,943)
(886)
Cash and cash equivalents at 1 January
3,799
4,685
Cash and cash equivalents at 31 December
1,856
3,799
Note: The figures within the LAP cashflow include inter-company transactions such as management fee income of £236,000 (2023: £236,000) and dividends from Bisichi
of £311,000 (2023: £666,000).
Cash outflows from operating activities include expenditure on
development properties of £1.0 million (2023: £0.8 million).
Excluding this expenditure, adjusted cash outflows from operating
expenditure were £0.1 million (2023: inflows £1.9m).
Investing activities include dividend income from Bisichi of £0.3
million (2023: £0.7 million).
Financing activities in 2024 include the receipt of a bank loan of
£0.5 million in relation to property development expenditure and
interest payments on the servicing of debt of £1.5 million (2023:
£2.2 million). 2023’s interest payment included loan interest for
Orchard Square to July 2023 of £0.7 million. Interest rate risk is
discussed further in note 22.
WEST EALING PROJECTS LIMITED
West Ealing is a 50:50 joint venture between LAP and Bisichi
created with the purpose of delivering a primarily residential
development in West Ealing, London. The joint venture owns 90%
of the property which is under development and on which £9.9
million has been spent to date (2023: £8.9 million), West Ealing is
disclosed within LAP in the segmental analysis in note 1 to the
financial statements. There is a linked development loan of £4.9
million (2023: £4.4 million), described further in note 19. Planning
permission is held for the creation of 56 new residential apartments
and 4 ground floor shops on the site.
An impairment review has been conducted of the value of the
development by the Directors, which has resulted in a £900,000
provision recognising the uncertain commercial outcome including
the construction contract cost and future sales prices. A 10%
variation in the future construction costs of the project results in a
circa £1.8 million change to its current development value.
London & Associated Properties PLC 2024 7
STRATEGIC REPORT Financial and performance review
DEVELOPMENT PHYSICS LIMITED
Development Physics was a joint venture between LAP, Bisichi and
Metroprop Real Estate, owned equally by the three parties. It was set
up, for the purpose of delivering a residential development of 44
flats and 4 town houses in Purley, London. Following an unsuccessful
planning application and subsequent appeal the JV partners decided
to stop development activities and allow the options over parcels of
land to lapse. The company has subsequently been closed. Provisions
for the carrying value of the development were made in previous
years and the financial effect of the development in 2024 is limited.
BISICHI PLC
Although the results of Bisichi PLC have been consolidated in these
financial statements, LAP has no direct influence over the
management of Bisichi. The comments below are based on the
published accounts of Bisichi.
The Bisichi group results are stated in full in its published 2024 financial
statements which are available at www.bisichi.co.uk.
Bisichi has two core revenue streams – coal mining in South Africa
and investment in retail proeprty in the UK.
2024 was a strong year for Bisichi’s South African coal mining and
processing operations with higher mining production, lower mining
costs, and a higher proportion of sales into the export market which
offset lower average coal prices in 2024.
Bisichi reported a profit before tax of £5.0 million (2023: £0.6 million)
for the year resulting in an increase in taxation for the year to £1.6
million (2023: £0.3 million). This resulted in Bisichi achieving an
overall profit for the year after tax of £3.4 million (2023: £0.3 million).
Bisichi’s UK retail property investment were valued at the year end
at £10.760 million (2023: £10.610 million). The property portfolio is
actively managed by LAP and generated rental income of £1.3
million in the year (2023: £1.3 million).
During the year Bisichi’s total non-current and current listed equity
related investments held at fair value through profit and loss
remained at £15.0 million (2023: £15.0 million). The Group achieved
dividend income from investments during the period of £0.34
million (2023: £0.56 million) and a gain in value from investments of
£0.07 million (2023: £0.8 million). The Group’s listed equity related
investment portfolios comprise primarily listed equities and listed
equity related funds involved or invested in extractive and energy
related business activities, including entities involved in the
extraction of commodities needed for the clean energy transition.
Bisichi has a structured trade finance facility with Absa Bank Limited
for R85 million held by Sisonke Coal Processing (Pty) Limited, a
100% subsidiary of Black Wattle Colliery (Pty) Limited. This facility
comprises an R85 million revolving facility to cover the working
capital requirements of Bisichi’s South African operations. The
facility is renewable annually and is secured against inventory,
debtors and cash that are held in Bisichi’s South African operations.
In December 2024, Bisichi executed a renewed 5-year term facility
of £3.9 million with Julian Hodge Bank Limited at an LTV of 50%.
The loan is secured against the company’s UK retail property
portfolio. The amount repayable on the loan at the year-end is £3.9
million. The overall interest cost of the loan is 4.00% above the
Bank of England base rate. The loan is secured by way of a first
charge over Bisichi’s investment properties in the UK which are
included in the financial statements at a value of £10.76 million. The
loan is repayable in December 2029. No banking covenants were
breached by Bisichi during the year.
Bisichi’s cash and cash equivalents decreased during the year by
£0.8 million (2023: £7.8 million). The net balance of cash and cash
equivalents (including bank overdrafts) at year end was a negative
amount of cash of £1.1 million (2023: £0.3 million).
Bisichi has considerable financial resources available at short notice
including cash and cash equivalents (excluding bank overdrafts) of
£1.2 million (2023: £3.2 million) and listed investments of £15.0
million (2023: £15.0 million) as at year end. These financial
resources total £16.2 million (2023: £18.2 million).
Bisichi’s net assets at 31st December 2024 were £36.1 million
(2023: £33.6 million).
Bisichi recognises the need for, and is committed to, diversification
of its future business activities. Bisichi is continually looking at
alternative mining, commodity and renewable energy related
opportunities, as well as new opportunities to add to its existing UK
property investment portfolios. In the interim, Bisichi continues to
work closely with Vunani Mining, its BEE partner in Black Wattle and
Sisonke Coal processing, as it is committed to being a responsible
steward of its legacy coal operations taking into account the
climate-related risks outlined in Bisichi’s climate report in its 2024
report and accounts and the impact these risks may have on all
stakeholders.
DRAGON RETAIL PROPERTIES LIMITED
Dragon is a UK property investment company, owned 50:50 by LAP
and Bisichi. The company has a Santander bank loan of £0.7 million
secured against its investment property, which is covenant
compliant, see note 19. The loan was renewed with Santander
during the year for a further 3 years to July 2027, at a margin of
3.5% above the Bank of England base rate.
Dragon incurred management fees of £72,000 (2023: £72,000)
split equally between the two joint venture partners. Dragon has
net assets of £1.3 million (2023: £1.2 million). Dragon continues to
trade at near break-even, excluding property revaluations.
ACCOUNTING JUDGEMENTS AND GOING
CONCERN
The most significant judgements made in preparing these accounts
relate to the carrying value of the properties and investments. The
Group uses external property valuers to determine the fair value of
most of its properties.
Under IFRS10 the Group has included Bisichi PLC in the consolidated
accounts, as it is deemed to be under the effective control of LAP and
has therefore been treated as a subsidiary. The directors of Bisichi
consider their judgements and estimates surrounding the life of the
mine and its reserves to have significant effect on the amounts
recognised in the financial statements and to be an area where the
financial statements are subject to significant estimation uncertainty.
The life of mine remaining is currently estimated at 5 years.
The Directors exercise their commercial judgement when reviewing
the Group’s cash flow forecasts and the underlying assumptions on
which the forecasts are based. The Group’s business activities,
together with the factors likely to affect its future development, are
set out in the Chairman’s Statement and Chief Executive’s Review
and in this Report. Further disclosure of specific factors affecting
going concern are discussed in more detail in the going concern
section of the group accounting policies section of the financial
statements. In addition, the Directors consider that Note 22 to the
financial statements sets out the Group’s objectives, policies and
processes for managing its capital; its financial risk management
objectives; details of its financial instruments and hedging activities;
and its exposure to credit risk, liquidity risk and other risks.
8 London & Associated Properties PLC 2024
STRATEGIC REPORT Financial and performance review
STATEMENT REGARDING SECTION 172 OF THE
UK COMPANIES ACT
Section 172 of the UK Companies Act requires the Board to report
on how the directors have had regard to the matters outlined below
in performing their duties. The Board consider the Group’s
customers, employees, local communities, suppliers and shareholders
as key stakeholders of the Group. During the year, the Directors
consider that they have acted in a way, and have made decisions that
would most likely promote the success of the Group for the benefit
of its members as a whole as outlined in the matters below:
• The likely consequences of any decision in the long term: see
Principal Activity, Strategy & Business Model and Risks and
Uncertainties on pages 9 to 10;
• The interests of the Group’s employees; ethics and compliance;
fostering of the Company’s business relationships with suppliers,
customers and others; and the impact of the Group’s operations
on the community and environment: see Corporate Responsibility
and Sustainability reports on pages 12 to 19;
• The need to act fairly between members of the Company: see the
Corporate Responsibility section on pages 13 to 22;
• The desirability of maintaining a reputation for high standards of
business conduct: see the Corporate Governance section on
pages 24 to 25.
GOING CONCERN
LAP
In reviewing going concern it is necessary to consider separately the
position of LAP Group and Bisichi. Although both are consolidated
into group accounts (as required by IFRS 10), they are managed
independently and in the unlikely event that Bisichi was unable to
continue trading this would not affect the ability of LAP Group to
continue operating as a going concern. The same would be true for
Bisichi in reverse.
The directors have reviewed the cash flow forecasts of the LAP
Group and the underlying assumptions on which they are based, for
the 15 months from the date of signing. The LAP Group’s business
activities, together with the factors likely to affect its future
development, are set out in the Chairman and Chief Executive’s
Statement and Financial Review. In addition, Note 22 to the
financial statements sets out the Group’s objectives, policies and
processes for managing its capital; its financial risk management
objectives; details of its financial instruments and hedging activities;
and its exposure to credit risk and liquidity risk.
Directors assess the longer term prospects of the business over a
four year time horizon as covered by the Group’s annual rolling
four-year strategic financial plan. This is considered to be the
optimum balance between our need to plan for the long term,
recognising that property investment is a long-term business, and
the progressively unreliable nature of forecasting in later years.
Geo-political events in Ukraine and the Middle East are no longer
significantly impacting global energy prices. The imposition of tariffs
by the United States is not expected to have any significant direct
effect on our operations. Although the outcome of these events is
uncertain, the Directors at present do not foresee the events having
a significant negative impact on the Group’s UK and South African
operations’ ability to remain in operation for the foreseeable future.
Bisichi
Detailed budget and cash flow forecasts for Bisichi’s operations
demonstrate that Bisichi has sufficient resources to meet its
liabilities as they fall due for at least the next 12 months and that
Bisichi will be able to manage its business risks and have adequate
cash resources to continue in operational existence for the
foreseeable future. Further details can be found in the Bisichi plc
2024 Financial Statements which are available on their web site:
www.bisichi.co.uk.
Overall position
With a quality property portfolio comprising tenants with a mix of
short and long leases supported by suitable financial arrangements,
the Directors believe that the group property operations (including
Bisichi and Dragon) are well placed to address the current business
risks successfully. The mining operations too, as a key industry in
South Africa, have a positive future. It is also relevant that LAP
would be able to continue as a viable business if Bisichi were to face
unexpected problems as there are no cross guarantees and LAP is
not dependent on the income from Bisichi.
Having made enquiries and having considered the principal risks
facing the Group, including liquidity and solvency risks, and material
uncertainties, the Directors have a reasonable expectation that the
Group and the Company have adequate resources to continue in
operational existence for the foreseeable future. Thus, they
continue to adopt the going concern basis of accounting in
preparing the annual financial statements.
TAXATION
The LAP Group tax strategy is to account for tax on an accurate and
timely basis. We only structure our affairs based on sound
commercial principles and wish to maintain a low tax risk position.
We do not engage in aggressive tax planning.
The LAP Group (excluding Bisichi and Dragon) has unused tax losses
and deductions with a potential value of £11.0 million (2023: £12.3
million). As LAP returns to profit, these tax losses and deductions
should be utilised.
DIVIDENDS AND FUTURE PROSPECTS
Due to the current economic uncertainties, the LAP Board has
agreed that it will not be recommending a dividend for the financial
year ending 31 December 2024 (2023: £nil).
Looking forwards to medium term trading, we intend to pursue our
previously stated strategies. These include investing in both our
essential community retail properties which have inbuilt defensive
qualities and industrial property where we have enjoyed success.
We will recycle properties where we feel asset management
opportunities are limited and are prepared to enter into negotiations
with parties that have approached us to explore disposals or joint
ventures to redevelop certain assets within our portfolio. A number
of these negotiations are ongoing although we are not yet able to
say if any will come to fruition.
Our development in Ealing has received planning consent and we
are in negotiations with stakeholders to enable construction to
commence. Due to rising construction costs and market volatility,
we are not able to provide guidance on the level of cash return this
project will ultimately generate.
We will continue to consider further joint venture opportunities to
undertake residential development.
Bisichi
Bisichi remains optimistic about the continued benefits from Black
Wattle’s enhanced production and the positive developments in rail
logistics. However, Bisichi is mindful of the current coal market
volatility with lower seaborne coal prices, reflecting a temporary
buildup in global coal supply and a slowdown in demand, impacting
coal revenue in 2025 to date. With such uncertainty Bisichi is
approaching this year with caution and is proactively managing this
by maintaining a diversified customer base and remain confident in
the long-term value of its South African operations.
Bisichi continues to seek and evaluate opportunities to transition
into alternative mining, commodity and renewable energy related
opportunities through new commercial arrangements.
London & Associated Properties PLC 2024 9
STRATEGIC REPORT
STRATEGIC REPORT
Principal activities, strategy & business model
The LAP Group’s principal business model is the investment in, and management and development of, industrial and retail property through
direct investment and joint ventures.
The principal activity of Bisichi PLC is coal mining and coal processing in South Africa. Further information is available in its 2024 Financial
Statements which are available at www.bisichi.co.uk
TEXT
TEXT
Maximising income
By achieving an appropriate tenant mix and providing vibrant environments with excellent facilities
we can increase tenant demand for space and enhance income.
Creating quality property
We look to improve the tenant experience at all our properties by achieving an appropriate tenant
mix and a vibrant trading environment through investment activity, enhancement, refurbishment
and development.
Capital strength
We operate within a prudent and flexible financial structure. Our gearing policy provides financial
stability whilst giving capacity and flexibility to look for further investments.
Maintain the value of
investment in Bisichi
By encouraging the Bisichi management to maximise sustainable profits and cash distributions.
Risks and uncertainties
DESCRIPTION OF RISK
DESCRIPTION OF IMPACT
MITIGATION
ASSET MANAGEMENT:
Tenant failure
Financial loss.
Initial and subsequent assessment of tenant covenant
strength combined with an active credit control function.
Leases not renewed
Financial loss.
Lease expiries regularly reviewed. Experienced teams
with strong tenant and market knowledge who manage
appropriate tenant mix.
Asset liquidity (size and
geographical location)
Assets may be illiquid and affect flexing
of balance sheet.
Regular reporting of current and projected position to the
Board with efficient treasury management.
PEOPLE:
Retention and recruitment
of staff
Unable to retain and attract the best
people for the key roles.
Nomination Committee and senior staff review skills
gaps and succession planning. Training and development
offered.
REPUTATION:
Business interruption
Loss in revenue.
Impact on footfall.
Adverse publicity.
Potential for criminal/civil proceedings.
Documented Recovery Plan in place.
General, cyber and terrorism insurance policies in place a
nd risks monitored by trained security staff.
Health and Safety policies in place.
CCTV in centres.
FINANCING:
Fluctuation in property values
Impact on covenants and other loan
agreement obligations.
Secure income flows.
Regular monitoring of LTV and IC covenants and other
obligations.
Focus on quality assets.
Reduced availability of
borrowing facilities
Insufficient funds to meet existing
debts/interest payments and
operational payments.
Efficient treasury management.
Loan facilities extended where possible.
Regular reporting of current and projected position
to the Board.
Loss of cash and deposits
Financial loss.
Only use a spread of banks and financial institutions
which have a strong credit rating.
Fluctuation of interest rates
Uncertainty of interest rate costs.
Manage derivative contracts to achieve a balance
between hedging interest rate exposure and
minimising potential cash calls.
10 London & Associated Properties PLC 2024
STRATEGIC REPORT
STRATEGIC REPORT
Bisichi risks and uncertainties
Bisichi (although it is consolidated into group accounts as required by IFRS 10) is managed independently of LAP. The risks outlined below
are an abbreviated summary of the risks reported by the Directors of Bisichi to the shareholders of that Company. Full details are available
in the published accounts of Bisichi (www.bisichi.co.uk).
These risks, although critical to Bisichi, are of less significance to LAP which only has a minority investment of 41.6% in the company. In the
unlikely event that Bisichi was unable to continue trading, it would not affect the ability of LAP to continue operating as a going concern.
DESCRIPTION OF RISK
DESCRIPTION OF IMPACT
MITIGATION
Coal prices can be impacted materially
by market and currency variations and
geopolitical factors
Affects sales value and therefore
margins.
Bisichi primarily focuses on managing its
underlying production and processing costs
to mitigate coal price volatility as well as
from time to time entering into forward sales
contracts with the goal of preserving future
revenue streams. Bisichi has not entered into
any such contracts in 2023 and 2024.
Bisichi assesses on an ongoing basis the impact
of volatility in global energy markets, economic
volatility and climate change related risks may
have on the Group’s mining operations and
future investment decisions
Mining operations are inherently risky.
Mineral reserves, regulations, licensing,
power availability, health and safety can
all damage operations
Loss of production causing loss of
revenue.
Use of independent geology experts, careful
attention to regulations, health and safety
training, employee dialogue to minimise
controllable risks.
Currency risk
Affects realised sales value and
therefore margins.
Regular monitoring and review of forward
currency situation.
Cashflow variation because of mining risks,
commodity price or currency variations
Variations can deliver significant
shifts in cash flow.
UK property investments used to offset high
risk mining operations.
Socio-economic, political instability &
regulatory environment risk
The Bisichi Group is exposed
to a wide range of political,
economic, regulatory, social and
tax environments, particularly in
South Africa.
Bisichi’s assets and investments are diversified
across various countries which reduces its
exposure to any particular country. Its Board
regularly assesses the political and socio-
economic environment and related risks of the
countries it operates and invests in.
There has been no change in the risks faced by either LAP or Bisichi.
London & Associated Properties PLC 2024 11
STRATEGIC REPORT
Key performance indicators
The Group’s Key Performance Indicators are selected to ensure clear alignment between its strategy and shareholder interests.
The KPIs are calculated using data from management reporting systems.
STRATEGIC PRIORITY
KPI
PERFORMANCE
MAXIMISING INCOME – LIKE FOR LIKE PROPERTY INCOME
To increase the like-for-
like income from each
property year on year.
Like-for-like gross rental
income as a percentage of
the prior year rental.
The like-for-like rental income of the
group by property has increased by
£101,000 (3.0%) (2023: increase
of £49,000 and 0.4%).
This is considered a positive
outcome.
MAXIMISING INCOME – OCCUPANCY
We aim to maximise
the total income in our
properties by achieving
full occupancy.
The estimated rental value
("ERV") of the empty units
as a percentage of our
total income.
Void levels increased to 3.6%
(2023: 2.7%).
There continue to be minimal voids
across the portfolio which is positive.
CAPITAL STRENGTH – GROWTH IN NET ASSET VALUE PER SHARE
The net assets per
share is the principal
measure used by the
group for monitoring its
performance and is an
indicator of the level of
reserves available for
distribution by way of
dividend.
Movement in the net
assets per share.
The net assets per share decreased
by 0.37 pence per share (1.5%) to
32.91p (2023: 33.38p).
This is considered a positive result
in a difficult market.
CHANGE IN LIKE-FOR-LIKE
INCOME*
VOIDS
NET ASSETS PER SHARE
3.0
4.0
5.0
75.0
2.0
50.0
1.0
25.0
0.0
0.0
2022
2022
2023
2023
100
50
0.0
-50
-100
2022
2023
2024
2024
2024
12 London & Associated Properties PLC 2024
STRATEGIC REPORT
Corporate responsibility
SUSTAINABLE DEVELOPMENT
Bisichi’s Black Wattle continues to strive to conduct business in a
safe, environmentally and socially responsible manner. Some
highlights of their Health, Safety and Environment performance
during 2024:
• Black Wattle Colliery recorded 1 Lost time Injuries during 2024
(2023: 2).
• Two cases of Occupational Diseases were recorded.
• Two claims for the Compensation for Occupational Diseases were
submitted.
In South Africa, the Broad-Based Socio-Economic Empowerment
Charter for the Mining and Minerals Industry (New Mining Charter)
is a regulatory instrument that facilitates sustainable transformation,
growth and development of the mining industry. Bisichi is
committed to fully complying with the New Mining Charter and
providing adequate resources to this area in order to ensure
opportunities are expanded for historically disadvantaged South
Africans (HDSAs) to enter the mining and minerals industry. In
addition, Bisichi continues to adhere to and make progress in terms
of their Social and Labour Plan and various BEE initiatives. A fuller
explanation of these can be found in Bisichi’s 2024 Financial
Statements which are available on their web site: www.bisichi.co.uk
CLIMATE CHANGE REPORTING
The Group recognises that climate change represents one of the
most significant challenges facing the world today and supports the
goals of the Paris Agreement and the UN Framework Convention
on Climate Change.
Our aim is to:
• minimize our contribution to greenhouse gas emissions;
• to consider and plan for the physical and transitional risks of
climate change on our operations; and
• to work with stakeholders, including local government and
communities, to mitigate the impact of climate-related challenges.
In the current year, the Group has aligned climate disclosures in this
Strategic Report to the four Task force on Climate-related Financial
Disclosure (“TCFD”) recommendations as follows:
TCFD AREA
TCFD CONSIDERATION
LONDON & ASSOCIATED PROPERTIES PLC & BISICHI PLC
Governance
Board’s oversight of climate risk
and opportunities
The LAP & Bisichi Boards have ultimate responsibility for the monitoring and
development of the Groups’ approach to climate risk and opportunities.
In light of the size of the Group, ESG matters are considered as part of the
Group’s regular board meetings and at other appropriate points during the year.
The Board has developed and implemented a Climate Change Policy and monitor
the content, effectiveness and implementation of this Policy on a regular basis.
The Group’s Climate Change Policy can be found on the Group’s website at www.
lap.co.uk.
Short, medium and long term strategic decisions, including those on capital allocation
and portfolio management, are considered by Group management who make
recommendations to the Board. Climate related issues and policy are included as
significant factors for consideration in the decision making process, both in the
management recommendation and in the Board’s consideration of the relevant issue.
On-going climate related issues are integrated into the Group’s business risk
management process and reporting thereof to the Board and Audit Committee.
The Group has regard to best practice in its area of operations, its health and safety
and environmental obligations and seeks to ensure high standards of business
conduct in its operations. It will review compliance with the TCFD Recommendations
on an ongoing basis, and report on its performance on a yearly basis.
Management’s role in assessing
and managing climate-related
risks and opportunities
Responsibility for the application of this Policy rests with, but is not limited to,
all employees and contractors engaged in relevant activities under the Group’s
operational control. The Group’s managers are responsible for promoting and
ensuring compliance with this Policy and any related individual site-level policies
and practices.
At Bisichi’s South African operations, management have commenced
engagement with key stakeholders in order to ensure awareness of our
climate change policy as well as the potential impact of climate change on our
environment and operations. We continue our collaboration with our contractors
on GHG Emission Reporting and we are actively looking for opportunities to
partner with our stakeholders to drive the uptake of carbon neutral solutions.
For material strategic or financial decisions, the Group may consider procuring
expert advice from third party consultants on the impact in the short, medium
and long term of the decision, and ensure that such information is fully
considered as part of the evaluation of the relevant matter.
London & Associated Properties PLC 2024 13
STRATEGIC REPORT Corporate responsibility
TCFD AREA
TCFD CONSIDERATION
LONDON & ASSOCIATED PROPERTIES PLC & BISICHI PLC
Strategy
Climate-related risks and
opportunities the Group has
identified over the short,
medium, and long run
Bisichi considers the current life of mine of its South African operations to fall
within a short to medium term horizon. Within this horizon, climate change
transition risks may impact their South African coal mining and processing
operations. Risks include:
• coal price and demand volatility;
• availability and cost of financing and third party services such as insurance;
• delays or restrictions to regulatory approvals;
• early retirement of our coal processing and mining operations; and
• Carbon pricing and taxes, that may create additional costs through the value
chain.
The Group have assessed physical climate risk profiles produced by the World
Bank, particularly in relation to the South African operations. Bisichi considers
the physical risks of variations in climate over the current life of mine of the
South African operations to be mainly limited to an increased risk of seasonal
flooding that may impact the operating efficiency, costs and revenues of the
mining and processing operations.
In a longer term horizon, and in a scenario where the useful life of Bisichi’s South
African operations is extended, the above short to medium term transitional
risks are expected to continue to apply. In addition, in a scenario, such as the
International Energy Association’s (“IEA”) Pathway to Net Zero by 2050 (“NZE
2050”), where climate policies are effectively implemented that support a
transformation to net zero emissions by 2050 and limiting the rise of global
temperatures to 1.5°C by the end of the century, policies will lead to significant
coal demand decline over the longer term. This in turn will impact the carrying
value and long term viability of Bisichi’s South African coal operations as well as
the stakeholders and communities reliant on our operations. Extreme weather
events, over the long term in South Africa, such as floods, and droughts, as
well as changes in rainfall patterns, temperature, and storm frequency will also
affect the operating efficiency, costs and revenues of the mining and processing
operations, supply chains and impact the communities living close to the
operations.
Clean coal research and technology initiatives such as carbon capture may result
in opportunities to increase the useful life of Bisichi’s South African coal mining
and processing operations. In addition, the clean energy transition provides
opportunities for Bisichi to diversify its business activities and equity investment
portfolio into renewable and extractive industries that will benefit from and are
critical to the transition to a clean energy system.
The main sources of scope 1 & 2 Green House Gas (GHG) emissions for the
Group have been associated with the South African coal mining and processing
operations, namely due to fuel combustion and electricity usage. Improvements
in the cost competitiveness of lower emission sources of energy provide
opportunities to lower overall operating costs at our operations as well as
reduce overall GHG Emissions.
In the UK we have identified the following material physical and transitional risks
related to our UK property portfolio:
• Long term physical risk through changes in climate, flood risk and extreme
weather; and
• Short-term transition risk from emerging regulation related to energy
performance (“EPC”) and enhanced disclosures
14 London & Associated Properties PLC 2024
STRATEGIC REPORT Corporate responsibility
TCFD AREA
TCFD CONSIDERATION
LONDON & ASSOCIATED PROPERTIES PLC & BISICHI PLC
Strategy
Impact of climate-related risks
and opportunities on businesses,
strategy, and financial planning
Bisichi’s management have incorporated and regularly review the following
strategies and procedures in relation to their South African coal operations:
• Review of the impact of climate change and the global transition to clean
energy, particularly in relation to the current life of mine of Bisichi’s coal
operations;
• Regular research and analysis of the coal market demand outlook;
• Regular research and analysis on the outlook of the South African coal mining
industry and climate change regulation including mining regulation, energy
procurement and licensing, and carbon taxing;
• Regular communication with financial service providers and suppliers on any
future changes to availability and cost of services.
• Regular research and analysis on the progress of clean coal technology and
related regulatory initiatives; and
• Regular dialogue and seeking collaboration with governments and local
communities and other stakeholders on climate change-related challenges.
Bisichi have identified the need to mitigate GHG emission heavy sources of
electricity usage at our coal washing plant. Management are currently in the
process of evaluating opportunities to reduce these emissions taking into
particular consideration the financial viability and long term sustainability of the
projects.
The below areas have been identified where GHG emissions can be further
reduced through:
• Minimising land clearance for new project facilities;
• Adoption of mitigation strategies for preserving integrity of environment;
• Minimising tree felling;
• The use of modern, energy and fuel efficient equipment;
• The inclusion of the impact of GHG emissions as an evaluation criteria in the
selection of mining contractors, suppliers and equipment. Particular consideration
will be given to the choice of vehicles used for the mine fleet, employee
transportation and the haulage fleet. Where possible energy and fuel efficiency
will be a factor in the selection of vehicles as this will not only reduce GHG
emissions but also reduce operating costs. In addition to the efficiency of the
fleet itself, opportunities will be sought for improving the use of the vehicles.
• Scheduling of excavation and haulage activities to optimise activities and avoid
double handling, where this is operationally practical; and
• The upgrading of energy-intensive machinery over time will be used to improve
efficiency and reduce CO2 emissions compared to machinery that has been
removed.
Further energy efficiency opportunities will also be investigated.
Potential water scarcity has increased management focus on opportunities to
increase the usage efficiency of our existing water supply and water recycling
systems. The introduction of a closed loop filter press system for coal fines in
2019 and additional other work concluded or planned on our water recycling
systems at our coal processing facility will result in a lowering of our overall cost
of water and the environmental footprint of our operations. Increased risks of
flooding have been incorporated at planning stage in new opencast mining areas
that have been opened.
Transition and physical risks related to climate change are regularly discussed
at Bisichi’s Board level, particularly those related to the long term viability of
Bisichi’s South African coal operations and the future allocation of capital. Bisichi
regularly considers the need for coal as an energy source both globally and in
South Africa over the life of mine of our operations and in its long term planning.
Bisichi is committed to responsible stewardship of their legacy South African coal
assets taking into account the impact climate change related risks may have on all
our local stakeholders. Bisichi recognise the need to collaborate with government,
employees and communities, to ensure a just transition for our stakeholders
through the transition to a low carbon economy.
Bisichi regularly evaluates and continues to seek opportunities to diversify its
business activities and equity investment portfolio, particularly into renewable
and extractive industries that predominantly mine commodities identified by
the IEA as critical in the transition to a clean energy system. Any significant
developments will be reported to shareholders in due course.
The Board continue to monitor and regularly review adherence by the Group to
changes to UK EPC. The Group have incorporated the ongoing impact of EPC
regulatory standards into its decision making process.
London & Associated Properties PLC 2024 15
STRATEGIC REPORT Corporate responsibility
TCFD AREA
TCFD CONSIDERATION
LONDON & ASSOCIATED PROPERTIES PLC & BISICHI PLC
Strategy
Resilience of strategy, taking
into consideration different
climate-related scenarios,
including a 2°C or lower
scenario.
Bisichi’s management have incorporated climate scenarios into their strategic
operational planning and review process. Bisichi have assessed the resilience of
our coal operations compared to the IEA’s NZE2050 Scenario, which sets out
what additional measures would be required over the next ten years to put the
world as a whole on track for net zero emissions by mid-century. The Scenario
indicates a significant coal demand decline over the longer term impacting the
potential commercial longevity of Bisichi’s South African operations. In addition
Bisichi have assessed physical climate risk profiles for their South African
operations obtained via the World Bank Group’s Climate Change Knowledge
Portal. The outcomes of scenario testing and physical climate profiling have
been incorporated into the long term strategic planning and decision making
processes of Bisichi.
Over the short to medium term, considering the potential impact of transitional
climate risks on Bisichi Group’s South African operations, the Group’s climate
strategy and policy is regularly scrutinised by Bisichi’s senior management and
Board in regard to any changes in coal demand outlook and climate regulatory
policy that may impact our operations over the current life of mine. A recent
example being the Just Energy Transition Investment Plan (“JET IP”) announced
by the South African Government for 2023-2027.
The Board encourages senior and local management to assess principal and
emerging climate-related risks on a regular basis. Risks identified are to be
reported to and discussed at Board level and incorporated into the strategy and
planning of the Group.
Risk
management
Processes for identifying and
assessing climate related risks.
The Group’s risk management processes are developed, implemented and
reviewed by the Board, who retain ultimate responsibility for them.
In addition to the Group’s management of its principal risks and uncertainties,
climate change impacts are mainly considered from two environmental
perspectives, the impact of our South African coal mining and processing
operations on the climate and the effect of global climate change on our
operations and stakeholders.
Heavy sources of GHG emissions have been identified from our annual
Greenhouse Gas emissions recording and reporting.
The Bisichi Board and Senior management remain in regular communication
with local regulatory bodies, climate research providers, coal market analysts,
suppliers, and services providers to ensure climate related risks and changes in
regulatory policy are identified and assessed on a regular basis. Bisichi’s senior
and local management in South Africa are encouraged by the Board to identify
local climate related risks and changes in regulatory policy that may impact our
South African coal operations.
Bisichi’s management continually engage with governments and local
communities and other stakeholders on climate change-related challenges
impacting the local area and the South African coal industry at large.
Processes for managing
climate-related risks.
The Board and Senior management co-ordinate the Group’s analysis and
planning of the effects of climate change on our business. The Board discuss
regularly the impact of any risks identified through the organisation, particularly
in relation to material matters that may impact the viability of the Group’s coal
operations. The Bisichi Board regularly review and analyse coal market and
outlook research, particularly in relation to targets set out in local climate policy
such as JET IP and global climate scenarios such as NZE 2050.
The mitigation of GHG emissions and identification of climate related risks has
been integrated into our corporate policy, project and procurement evaluation
criteria at Bisichi’s South African operations to ensure it is consistently applied
and managed.
The Group continuously monitors and reports key performance indications
relating to environmental matters, including the location of CO2 emissions, their
levels and intensity.
On an ongoing basis, the Group assesses the impact of carbon pricing, climate
regulation and taxation on going concern assumptions, the Group’s current and
future strategy and operations.
16 London & Associated Properties PLC 2024
STRATEGIC REPORT Corporate responsibility
TCFD AREA
TCFD CONSIDERATION
LONDON & ASSOCIATED PROPERTIES PLC & BISICHI PLC
Risk
management
Processes for identifying,
assessing, and managing
climate-related risks are
integrated into the overall risk
management.
New or evolving climate change risks identified by both senior and local
management are to be reported to and discussed at Board level and
incorporated into the strategy, planning and climate policy of the Group.
Where possible, plans to mitigate the effect of climate change on Bisichi’s
operations and local communities will be integrated into the mines regulatory
environmental management and social and labour plans.
Metrics and
targets
Metrics used by the Group to
assess climate related risks and
opportunities in line with its
strategy and risk management
process
A financial segmentation of the Group’s South African coal mining and
processing assets that are impacted by the climate related risks and
opportunities outlined above can be found in Bisichi’s 2024 Financial Statements
which are available on their website: www.bisichi.co.uk.
Bisichi recognises that its ability to reduce overall carbon emissions is
constrained at present by the main segment of it business activities, being
coal mining and processing in South Africa. Bisichi has, however, sought to
appropriately target its emission reduction strategy to the elements of its
operations where a meaningful reduction in greenhouse gas emissions can be
effected, and this will be reflected in the targets set by the Group in due course.
The Group measures and report our CO2 emissions across the Group including
a breakdown of UK and South African operations. See below for disclosure of
emissions during the year.
Scope 1, Scope 2 and,
if appropriate, Scope 3
greenhouse gas (GHG)
emissions, and the related risks.
The Group is committed to measuring and reporting our scope 1 and 2
greenhouse gas emissions, see below for disclosure of emissions during the year.
Scope 3 emissions are not currently measured given the size and life of mine of
the Group’s South African coal operations and the uncertainty and impracticality
in accurately measuring such emissions throughout the value chain. The Group
will continue to assess the above approach as part of its continued review of
compliance with the TCFD Recommendations and taking into account any
material changes in future business activities.
Targets used by the Group
to manage climate-related
risks and opportunities and
performance against targets.
Over 99% of the Group’s GHG Emissions relate to Bisichi’s South African coal
operations which has a current life of mine of 7 years.
In the short term, the Group’s continues to evaluate areas where GHG emissions
can be further reduced, particularly scope 2 emissions related to the heavy
sources of electricity usage at Bisichi’s coal washing plant. Once the Group
has identified the scope of further potential reductions, their time, capital cost
and practicability of implementation, short term targets for the Group will be
reassessed.
Over the long term, as part of the Group’s business strategy, the Board
continues to evaluate opportunities to diversify its business activities. In turn,
targets related to GHG emissions will be re-evaluated in line with any future
changes in the Group’s planned operating activities.
London & Associated Properties PLC 2024 17
STRATEGIC REPORT Corporate responsibility
GREENHOUSE GAS REPORTING
As a quoted organisation incorporated in the UK, we have reported
on all emission sources required under the Companies (Directors’
Report) and Limited Liability Partnerships (Energy and Carbon
Report) Regulations 2018. for the period 1st January 2024 to 31st
December 2024.
The emissions are detailed in Tables 1 to 4 below.
We have employed the Financial Control definition to outline our
carbon footprint boundary, reporting Scope 1 & 2 emissions only for
both landlord & tenant-controlled areas of LAP owned shopping
centres and facilities.
During the year LAP had landlord-controlled areas in Brewery
Street, Shipley and Bridgend, Bedworth, and Little Portland Street.
Properties that LAP manage on behalf of others or are not wholly
owned by LAP are excluded from our footprint boundary. An
estimate of the emissions associated with the LAP offices on Little
Portland Street has been included in this year’s calculations, as in
the previous year.
Emissions for landlord-controlled areas have been calculated based
on actual consumption data collected from each site. Emissions
from tenant-controlled areas have been calculated based on floor
area and energy consumption benchmarks for general retail services
in the UK.
We have used the main requirements of the ISO14064-1 standard
and HM Government Environmental Reporting Guidelines (2019)
including streamlined energy and carbon reporting guidance.
Emission factors were from the UK Government’s GHG Conversion
Factors for Company Reporting 2024.
As well as reporting Scope 1 and Scope 2 emissions, the regulations
require that at least one intensity ratio is reported for the given
reporting period. The intensity figure below shows emissions in
tCO2e per thousand pounds revenue.
Table 1. Landlord & tenant controlled areas
EMISSIONS SOURCE TCO2E
2024
2023
CHANGE
Scope 1 emissions
Natural gas
61
29
109%
Refrigerants
0
0
N/A
Scope 2 emissions
Electricity
1,162
1,152
1%
Total tCO2e
1,223
1,182
4%
Intensity ratio (tCO2e/£k)
0.40
0.25
59%
Table 2. LAP controlled areas
EMISSIONS SOURCE TCO2E
2024
2023
CHANGE
Scope 1 emissions
Natural gas
61
29
109%
Refrigerants
0
0
N/A
Scope 2 emissions
Electricity
114
97
17%
Total tCO2e
175
126
39%
Table 3. Tenant controlled areas
EMISSIONS SOURCE TCO2E
2024
2023
CHANGE
Scope 1 emissions
Natural gas
0
0
N/A
Refrigerants
0
0
N/A
Scope 2 emissions
Electricity
1,048
1,055
-1%
Total tCO2e
1,048
1,055
-1%
Table 4. Coal mining carbon footprint
2024
CO2e
TONNES
2023
CO2e
TONNES
Emissions source:
Emissions from the combustion of fuel or the operation of any facility including fugitive emissions from
refrigerants use
60,702
39,709
Emissions resulting from the purchase of electricity, heat, steam or cooling by the company for its own
use (location based)
8,438
7,601
Total gross emissions/tCO2e
69,140
47,310
Intensity:
Intensity 1 Tonnes of CO2 per pound sterling of revenue
0.0013
0.0010
Intensity 2 Tonnes of CO2 per pound of coal produced
0.0462
0.0587
kWh
kWh
Energy consumption used to calculate above emissions
96,215,539
90,218,230
Of which UK
5,055
5,857
18 London & Associated Properties PLC 2024
STRATEGIC REPORT Corporate responsibility
ENVIRONMENT
United Kingdom
The Group’s principal UK activity is property investment, which
involves renting premises to commercial businesses. We seek to
provide those tenants with good quality premises from which they
can operate in an efficient and environmentally friendly manner.
Where possible, improvements, repairs and replacements are made
in an environmentally efficient manner and waste re-cycling
arrangements are in place at all the Group’s locations.
South Africa
Under the terms of the mine’s Environmental Management
Programme approved by the Department of Mineral Resource and
Energy (“DMRE”), Black Wattle undertakes a host of environmental
protection activities to ensure that the approved Environmental
Management Plan is fully implemented. In addition to these routine
activities, Black Wattle regularly carries out environmental
monitoring activities on and around the mine, including evaluation
of ground water quality, air quality, noise and lighting levels, ground
vibrations, air blast monitoring, and assessment of visual impacts. In
addition to this Black Wattle also performs quarterly monitoring of
all boreholes around the mine to ensure that no contaminated water
filters through to the surrounding communities. Black Wattle is fully
compliant with the regulatory requirements of the Department of
Water Affairs and Forestry and has an approved water use licence.
Black Wattle Colliery has substantially improved its water
management by erecting and upgrading all its pollution control dams
in consultation with the Department of Water Affairs and Forestry.
A performance assessment audit was conducted to verify
compliance to our Environmental Management Programme and no
significant deviations were found.
EMPLOYEE, SOCIAL, COMMUNITY AND
HUMAN RIGHTS
The Group’s policy is to attract staff and motivate employees by
offering competitive terms of employment. The Group provides
equal opportunities to all employees and prospective employees
including those who are disabled and operates in compliance with
all relevant national legislation.
The Group believes that it is in the interest of shareholders to
consider social and human rights issues when conducting business.
Various policies and initiatives implemented by the Group that fall
within these areas are discussed within this report.
ANTI-SLAVERY AND HUMAN TRAFFICKING
The Group is committed to the prevention of the use of forced
labour and has a zero tolerance policy for human trafficking and
slavery.
The Group’s policies and initiatives in this area can be found within
the Group’s Anti-slavery and human trafficking statement found on
the Group’s website at www.lap.co.uk.
EMPLOYMENT AND DIVERSITY
The Board of London & Associated Properties PLC at 31 December
2024 comprised:
NUMBER OF BOARD
MEMBERS
PERCENTAGE OF THE
BOARD
NUMBER OF SENIOR
POSITIONS ON THE
BOARD
NUMBER IN
EXECUTIVE
MANAGEMENT
PERCENTAGE
OF EXECUTIVE
MANAGEMENT
Men
5
100%
2
3
100%
Women
0
0%
0
0
0%
Not specified/prefer not to say
0
0%
0
0
0%
NUMBER OF BOARD
MEMBERS
PERCENTAGE OF THE
BOARD
NUMBER OF SENIOR
POSITIONS ON THE
BOARD
NUMBER IN
EXECUTIVE
MANAGEMENT
PERCENTAGE
OF EXECUTIVE
MANAGEMENT
White British or other White
(including minority white groups)
5
100%
2
3
100%
Mixed/Multiple Ethnic Groups
0
0%
0
0
0%
Asian/Asian British
0
0%
0
0
0%
Black/African/Caribbean/Black British 0
0%
0
0
0%
Other ethnic group, including Arab
0
0%
0
0
0%
The above data has been collected through self-reporting by the
Board members. Questions asked include gender identity or sex and
ethnic background.
The Company notes the diversity targets included in the Listing
Rules, being:
• at least 40% of the individuals on the Board are women;
• at least one of the specified senior positions is held by a woman; and
• at least one individual on the Board is from a minority ethnic
background.
At 31 December 2024 the Company did not meet the target that at
least 40% of the individuals on its board of directors are women and
at least one of the senior positions on the Board is held by a
women. Should the Board look to appoint further directors in the
future, the Company will give due consideration to how it may
achieve the diversity targets while ensuring the appropriate
structure of the Board and mix of skills and expertise relevant to the
Company’s operations. As part of its recruitment processes, the
Company gives careful consideration to all potential applicants. The
Company will keep this under ongoing review. The Group is
committed to improving upon its gender and diversity targets at all
employment levels within the Group through a required build-up of
sufficient talent pools, training up of employees and targeted
recruitment policies. The Company will keep the requirement for a
formal diversity policy under review and will give serious
consideration to the adoption of a policy, tailored to the nature of
the Company’s business, its operations and resources at the
appropriate point.
London & Associated Properties PLC 2024 19
STRATEGIC REPORT Corporate responsibility
BISICHI PLC
In terms of directors, employees and gender representation, at the
year end the Group had 9 directors (8 male and 2 from a minority
ethnic or HDSA Background, 1 female from a minority ethnic or
HDSA Background), 6 senior managers (4 male and 2 female all
from a minority ethnic or HDSA Background) and 201 other
employees (137 male and 112 from a minority ethnic or HDSA
Background, 64 female and 61 from a minority ethnic or HDSA
Background).
The Group’s South African operations are committed to achieving
the goals of the South African Employment Equity Act and is
pleased to report the following:
• Black Wattle Colliery has exceeded the 10 percent women in
management and core mining target.
• Black Wattle Colliery has achieved over 15 percent women in
core mining.
• 95 percent of the women at Black Wattle Colliery are HDSA
females.
Black Wattle Colliery has successfully submitted their annual
Employment Equity Report to the Department of Labour. In terms
of staff training some highlights for 2024 were:
• One employee was trained in ABET (Adult Basic Educational
Training) on various levels
• An additional seven disabled HDSA women continued their
training on ABET levels one to four
• Four HDSA persons were enrolled for apprenticeships in 2024
• One HDSA person continued their internships in 2024
• Four additional HDSA persons started new internships in 2024
• One HDSA Female completed her bursary studies in 2024, while
two HDSA females continued their bursary studies in 2024
Highlights for 2024 for Sisonke Coal Processing:
• One employee was trained in ABET (Adult Basic Educational
Training) on various levels
Employment terms and conditions for the employees based at
Bisichi’s UK office and at their South African mining operations are
regulated by and are operated in compliance with all relevant
prevailing national and local legislation. Employment terms and
conditions provided to mining staff meet or exceed the national
average. Bisichi’s mining operations and coal washing plant facility
are labour intensive and unionised. During the year no labour
disputes, strikes or wage negotiations disrupted production or had a
significant impact on earnings. Bisichi’s relations to date with labour
representatives and labour related unions continue to remain strong.
Detailed information relating to the Bisichi Strategic Report is
available in its 2024 financial statements.
Approved on behalf of the board of directors.
Jonathan Mintz
Finance Director
29 April 2025
20 London & Associated Properties PLC 2024
GOVERNANCE
Directors & advisors
EXECUTIVE DIRECTORS
John A Heller LLB MBA
(Chairman and Chief Executive)
Jonathan Mintz FCA
(Finance Director)
NON-EXECUTIVE DIRECTORS
Clive A Parritt FCA CF FIIA #†
Clive Parritt joined the board on 1 January 2006. He is a chartered
accountant with over 40 years’ experience of providing strategic,
financial and commercial advice to businesses of all sizes. Previously
he was Group Finance Director of Audiotonix Limited (an
international manufacturer of audio mixing consoles), he has chaired
and been a director of a number of other public and private
companies. Clive Parritt was President of the Institute of Chartered
Accountants in England and Wales in 2011-12. He is Chairman of
the Audit Committee and as Senior Independent Director he chairs
the Nomination and Remuneration Committees.
Robin Priest MA †
Robin Priest joined the board on 31 July 2013. He is a senior
advisor to Alvarez & Marsal LLP (“A&M”) and, independently, to
lenders and insolvency practitioners to assist in restructuring
situations. He has more than 40 years’ experience in real estate and
structured finance. He was formerly Managing Director of A&M’s
real estate practice, advising private sector and public sector clients
on both operational and financial real estate matters. Prior to joining
A&M, Robin was lead partner for Real Estate Corporate Finance in
London with Deloitte LLP and before this he founded and ran a
property company backed by private equity. The first part of his
career was spent in commercial and investment banking.
Andrew R Heller MA, ACA
Andrew Heller joined the board on 29 March 2023. He is a qualified
Chartered Accountant, serves as Chairman & Managing Director of
Bisichi PLC and has nearly 30 years’ experience in the mining
industry.
† Member of the audit, remuneration and nomination committees
# Senior independent director
SECRETARY & REGISTERED OFFICE
Jonathan Mintz FCA
2nd Floor, 12 Little Portland Street,
London W1W 8BJ
AUDITOR
Kreston Reeves LLP
PRINCIPAL BANKERS
Santander UK plc
Metro Bank plc
QIB (UK) plc
ABSA Bank (South Africa)
First National Bank (South Africa)
SOLICITORS
Pinsent Masons LLP
Wake Smith Solicitors Limited
STOCKBROKER
Shore Capital Markets Limited
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 9.00am to 5.30pm, Monday to Friday,
excluding public holidays in England and Wales.
Website: https://www.mpms.mufg.com/
Email: shareholderenquiries@cm.mpms.mufg.com
Company registration number
341829 (England and Wales)
WEBSITE
www.lap.co.uk
E-MAIL
admin@lap.co.uk
London & Associated Properties PLC 2024 21
GOVERNANCE
Directors’ report
The Directors submit their report and the audited
financial statements for the year ended 31
December 2024.
STRATEGIC REPORT
A comprehensive review and assessment of the Group’s activities
during the year as well as its position at the year end and prospects
for the forthcoming year are included in the Chairman and Chief
Executive’s Review and the Strategic Report. These reports can be
found on pages 2 to 19 and should be read in conjunction with this
report.
PRINCIPAL ACTIVITIES
The principal activities of the Group during the year were property
investment and development, as well as investment in joint ventures
and an associated company. The associated company is Bisichi PLC
(Bisichi) in which the Company holds a 41.6% interest. Bisichi is
listed on the main market of the London Stock Exchange and
operates in England and South Africa with subsidiaries which are
involved in overseas mining and mining investment. The results,
together with the assets and liabilities, of Bisichi are consolidated
with those of LAP in accordance with the terms of IFRS 10 even
though the Group only has a minority interest – under IFRS 10 the
58.4% majority interest is disclosed as a “non-controlling interest”.
BUSINESS REVIEW AND POST BALANCE SHEET
EVENTS
A review of the Group’s development and performance can be
found below and should be read in conjunction with the Strategic
Report on pages 4 to 19.
Details of any post balance sheet events are disclosed in Note 30 to
the financial statements.
FUTURE DEVELOPMENTS
The Group continues to look for new opportunities to acquire real
estate assets where it feels it can increase value by applying its
intensive management skills. At the same time, it seeks to reduce its
interest payments on its loans as they expire or where opportunities
arise to refinance on better terms. We also seek to improve our
existing estate through the continued pursuit of asset management
initiatives.
PROPERTY ACTIVITIES
The Group is a long-term investor in property. It acquires properties,
actively manages those assets to improve rental income, and thus
seeks to enhance the value of its properties over time.
In reviewing performance, the principal areas regularly monitored by
the Group include:
• Rental income – the aim of the Group is to maximise the
maintainable income from each property by careful tenant
management supported by sympathetic and revenue enhancing
development. Income may be affected adversely by the inability
of tenants to pay their rent, but careful monitoring of rent
collection and tenant quality helps to mitigate this risk. Risk is also
minimised by a diversified tenant base, which should limit the
impact of the failure of any individual tenant.
• Developments – the Group develops customer-focused spaces
to generate returns and portfolio income growth above that
available from standing investments alone.
• Cash flow – allowing for voids, acquisitions, development
expenditure, disposals and the impact of operating costs and
interest charges, the Group aims to maintain a positive cash flow
over time.
• Financing costs – the exposure of the Group to interest rate
movements is managed partly by the use of swap and cap
arrangements, where appropriate (see Note 22 for full details of
the contracts in place) and also by using loans with fixed terms
and interest rates. These arrangements are designed to ensure
that our interest costs are known in advance and are always
covered by anticipated rental income.
• Property valuations – market sentiment and economic conditions
have a direct effect on property valuations, which can vary
significantly (upwards or downwards) over time. Bearing in mind
the long term nature of the Group’s business, valuation changes
have little direct effect on the ongoing activities or the income
and expenditure of the Group. Tenants generally have long term
leases, so rents are unaffected by short term valuation changes.
Borrowings are secured against property values and if those
values fall very significantly, this could limit the ability of the
Group to develop the business using external borrowings. The
risk is minimised by trying to ensure that there is adequate cover
to allow for fluctuations in value on a short term basis.
It continues to be the policy of the Group to realise property assets
when the valuation of those assets reaches a level at which the
directors consider that the long-term rental yield has been reached.
The Group also seeks to acquire additional property investments on
an opportunistic basis when the potential rental yields offer scope
for future growth.
INVESTMENT ACTIVITIES
The investments in joint ventures and Bisichi are for the long term.
LAP manages the UK property assets of Bisichi. However, the
principal activity of Bisichi is overseas mining investment (in South
Africa). While IFRS 10 requires the consolidation of Bisichi, the
investment is held to generate income and capital growth over the
longer term. It is managed independently of LAP and should be
viewed by shareholders as an investment and not a subsidiary. The
other listed investments are held as current assets to provide the
liquidity needed to support the property activities while generating
income and capital growth.
Investments in property are made through joint ventures when the
financing alternatives and spreading of risk make such an approach
desirable.
DIVIDEND
In the light of the current uncertain economic environment, the
directors are not recommending payment of a final dividend for
2024 (2023: Nil per share).
22 London & Associated Properties PLC 2024
GOVERNANCE Directors’ report
THE COMPANY’S ORDINARY SHARES HELD IN
TREASURY
At 31 December 2024, 216,715 (2023: 216,715) ordinary shares
were held in Treasury with a market value of £20,046 (2023:
£27,089).
Treasury shares held at 1 January 2024
and 31 December 2024
216,715
No shares (2023: nil) were issued to employees in the year in place
of cash for dividends associated with shares held within the share
incentive plan.
Treasury shares are not included in issued share capital for the
purposes of calculating earnings per share or net assets per share
and they do not qualify for dividends payable.
PROPERTIES
The freehold and long leasehold investment properties of the
Company, its subsidiaries, Dragon and Bisichi were revalued as at 31
December 2024 by independent professional firms of chartered
surveyors – Allsop LLP, London (71.2 per cent of the portfolio),
Carter Towler, Leeds (28.8 per cent). The valuations, which are
reflected in the financial statements, amount to £37.4 million (2023:
£35.1 million).
Taking account of prevailing market conditions, there was a £1.8
million increase in the valuation of the properties at 31 December
2024 (2023: decrease of £0.1 million). The proportion of this
revaluation attributable to the Group (net of taxation) is reflected in
the consolidated income statement and the consolidated balance
sheet.
FINANCIAL INSTRUMENTS
Note 22 to the financial statements sets out the risks in respect of
financial instruments. The board reviews and agrees overall treasury
policies, delegating appropriate authority for applying these policies
to the Chief Executive and Finance Director. Financial instruments
are used to manage the financial risks facing the Group and
speculative transactions are prohibited. Treasury operations are
reported at each board meeting and are subject to weekly internal
reporting. Hedging arrangements are used when appropriate by the
Company, its subsidiaries and joint ventures in order to limit the
effect of higher interest rates upon the Group. Where appropriate,
hedging arrangements are covered in the Chairman and Chief
Executive’s Statement and the Financial Review.
DIRECTORS
J A Heller, J Mintz, C A Parritt , R Priest and A R Heller were
Directors of the company for the whole of 2024.
H D Goldring, was a Director of the company until his retirement
on 1 July 2024.
J Mintz is retiring by rotation at the Annual General Meeting in
2025 and offers himself for re-election.
Jonathan Mintz has been a Director since 2019 and is also the
Company Secretary. He has a contract of employment determinable
upon three months’ notice. Jonathan Mintz is an ACA qualified
Finance Director experienced in real estate, consultancy, and
construction in the UK and internationally. He has worked in the
property and infrastructure sector for the majority of his career,
holding senior positions with listed and private property and
construction businesses. The board has considered the re-
appointment of Jonathan Mintz and recommends his re-election as
a director.
DIRECTORS’ INTERESTS
The interests of the Directors in the ordinary shares of the
Company, including family and trustee holdings, where appropriate,
can be found on page 29 in the Annual Remuneration Report.
Substantial shareholdings
31 DEC 2024
31 DEC 2023
NO.
%
NO.
%
Heller family
48,080,880
56.35 48,080,880
56.35
Stonehage Fleming
Investment
Management Ltd
7,513,214
8.81
7,513,214
8.81
James Hyslop
5,136,258
6.02
5,136,258
6.02
Maland Pension
Fund
3,000,000
3.52 3,000,000
3.52
The Company does not consider that the Heller family has a
controlling share interest irrespective of the number of shares held
as no individual party holds a majority and there is no legal
obligation for shareholders to act in concert. The Directors do not
consider that any single party has control.
The Company is not aware of any other holdings exceeding 3 per
cent of the issued share capital.
SHARE CAPITAL AND TAKEOVER DIRECTIVE
The Company has one class of share capital, namely ordinary shares.
Each ordinary share carries one vote. All the ordinary shares rank
pari passu. There are no securities issued by the Company which
carry special rights with regard to control of the Company.
The identity of all significant direct or indirect holders of securities
in the Company and the size and nature of their holdings is shown
in “Substantial Shareholdings” above.
The rights of the ordinary shares to which the HMRC approved
Share Incentive Plan relates are exercisable by the trustees on
behalf of the employees.
There are no restrictions on voting rights or on the transfer of
ordinary shares in the Company, save in respect of treasury shares.
The rules governing the appointment and replacement of Directors,
alteration of the articles of association of the Company and the
powers of the Company’s Directors accord with usual English
company law provisions. Each Director is subject to re-election at
least every three years.
The Company is not party to any significant agreements that take
effect, alter or terminate upon a change of control of the Company
following a takeover bid. The Company is not aware of any
agreements between holders of its ordinary shares that may result
in restrictions on the transfer of its ordinary shares or on voting
rights.
There are no agreements between the Company and its Directors or
employees providing for compensation for loss of office or
employment that occurs because of a takeover bid.
STATEMENT AS TO DISCLOSURE OF
INFORMATION TO THE AUDITOR
The Directors in office at the date of approval of the financial
statements have confirmed that, so far as they are aware, there is
no relevant audit information of which the auditor is unaware. Each
of the Directors has confirmed that they have taken all the steps
that they ought to have taken as a Director in order to make them
aware of any relevant audit information and to establish that it has
been communicated to the auditor.
London & Associated Properties PLC 2024 23
GOVERNANCE Directors’ report
INDEMNITIES AND INSURANCE
The Articles of Association of the company provide for it to
indemnify, to the extent permitted by law, directors and officers
(excluding the Auditor) of the company, including officers of
subsidiaries and associated companies, against liabilities arising from
the conduct of the Group’s business. The indemnities are qualifying
third party indemnity provisions of the Companies Act 2006 and
each of these qualifying third party indemnities was in force during
the course of the financial year ended 31 December 2024 and as at
the date of this Directors’ report. No amount has been paid under
any of these indemnities during the year.
The Group maintains Directors and Officers insurance, which is
reviewed annually and is considered to be adequate by the
Company and its insurance advisers.
DONATIONS
No political donations were made during the year (2023: £Nil).
No donations for charitable purposes were made during the year
(2023: £Nil).
CORPORATE RESPONSIBILITY
Environment
The environmental considerations of the group’s South African coal
mining operations are covered in the Bisichi PLC Strategic Report.
The group’s UK activities are principally property investment
whereby premises are provided for rent to commercial businesses.
The group seeks to provide those tenants with good quality
premises from which they can operate in an efficient and
environmentally efficient manner and waste re-cycling arrangements
are in place at all the company’s locations.
Greenhouse gas emissions
Details of the group’s greenhouse gas emissions for the year ended
31 December 2024 can be found on page 17 of the Strategic Report.
Employment
The group’s policy is to attract staff and motivate employees by
offering competitive terms of employment. The group provides
equal opportunities to all employees and prospective employees
including those who are disabled. The Bisichi PLC Strategic Report
gives details of the Bisichi group’s activities and policies concerning
the employment, training, health and safety and community support
and social development concerning the Bisichi group’s employees in
South Africa.
Section 172 statement
This is contained within the Strategic Report on page 8.
GOING CONCERN
The directors have reviewed the cash flow forecasts of the Group
and the underlying assumptions on which they are based. The
Group’s business activities, together with the factors likely to affect
its future development, are set out in the Chairman’s Statement and
Chief Executive’s Review and in the Financial and Performance
Review. In addition, note 22 to the financial statements sets out the
Group’s objectives, policies and processes for managing its capital;
its financial risk management objectives; details of its financial
instruments and hedging activities; and its exposure to credit risk
and liquidity risk.
With secured banking facilities, sound financial resources, low void
rates and long term leases in place the Directors believe it remains
appropriate to adopt the going concern basis of accounting in
preparing the annual financial statements.
The Bisichi directors continue to adopt the going concern basis of
accounting in preparing the Bisichi annual financial statements.
CORPORATE GOVERNANCE
The Corporate governance report can be found on pages 24 and 25
of the annual report and accounts.
ANNUAL GENERAL MEETING
The Annual General Meeting will be held at 6 Babmaes Street,
London SW1Y 6HD on Monday 16 June 2025 at 10.30 a.m. Items
1 to 6 will be proposed as ordinary resolutions. More than 50 per
cent. of shareholders’ votes cast at the meeting must be in favour
for those ordinary resolutions to be passed. The Directors consider
that all of the resolutions to be put to the meeting are in the best
interests of the Company and its shareholders as a whole and
accordingly the board unanimously recommends that shareholders
vote in favour of all of the resolutions as the Directors intend to do
in respect of their own beneficial holdings of ordinary shares. Please
note that the following paragraphs are only summaries of certain of
the resolutions to be proposed at the Annual General Meeting and
do not represent the full text of the resolutions. You should
therefore read this section in conjunction with the full text of the
resolutions contained in the notice of Annual General Meeting
which accompanies this Directors’ Report.
ORDINARY RESOLUTIONS
Resolution 6 – Authority to allot securities
Paragraph 6.1.1 of Resolution 6 would give the Directors the
authority to allot shares in the Company and grant rights to
subscribe for or convert any security into shares in the Company up
to an aggregate nominal value of £2,844,200. This represents
approximately 1/3 (one third) of the ordinary share capital of the
Company in issue (excluding treasury shares) as at 25 April 2025
(being the last practicable date prior to the publication of this
Directors’ Report).
In line with guidance issued by the Institutional Voting Information
Service (IVIS), paragraph 6.1.2 of Resolution 6 would give the
directors the authority to allot shares in the Company and grant
rights to subscribe for or convert any security into shares in the
Company up to a further aggregate nominal value of £2,844,200, in
connection with an offer by way of a rights issue. This amount
represents approximately another 1/3 (one third) of the ordinary
share capital of the Company in issue (excluding treasury shares) as
at 25 April 2025 (being the last practicable date prior to the
publication of this Directors’ Report).
The Directors’ authority will expire on the earlier of 31 August 2026
or the next AGM. The Directors do not currently intend to make use
of this authority. However, if they do exercise the authority, the
Directors intend to follow best practice as recommended by the
IVIS regarding its use (including as regards the Directors standing for
re-election in certain cases).
OTHER MATTERS
Kreston Reeves LLP has acted as auditor throughout the year and
has expressed its willingness to continue in office. A proposal will be
made at the Annual General Meeting for its reappointment.
By order of the board
Jonathan Mintz
Secretary
For and on behalf of London & Associated Properties PLC
2nd Floor, 12 Little Portland Street
London, W1W 8BJ
24 London & Associated Properties PLC 2024
GOVERNANCE
GOVERNANCE
Corporate Governance
The Company has adopted the Corporate
Governance Code for Small and Mid-Size Quoted
Companies (the QCA Code) published by the
Quoted Companies Alliance. The QCA Code
provides governance guidance to small and mid-
size quoted companies. The paragraphs below set
out how the Company has applied this guidance
during the year. The Company has complied with
the QCA Code throughout the year.
PRINCIPLES OF CORPORATE GOVERNANCE
The board promotes good corporate governance in the areas of risk
management and accountability as a positive contribution to
business prosperity. The board endeavours to apply corporate
governance principles in a sensible and pragmatic fashion having
regard to the circumstances of the business. The key objective is to
enhance and protect shareholder value.
BOARD STRUCTURE
During the year the board comprised the Chairman and Chief
Executive, one other executive Director and three non-executive
Directors. Their details appear on page 20. The board is responsible
to shareholders for the proper management of the Group.
The Directors’ responsibilities statement in respect of the accounts
is set out on page 35. The non-executive Directors have a particular
responsibility to ensure that the strategies proposed by the executive
Directors are fully considered. To enable the board to discharge its
duties, all Directors have full and timely access to all relevant
information and there is a procedure for all Directors, in furtherance
of their duties, to take independent professional advice, if necessary,
at the expense of the Group. The board has a formal schedule of
matters reserved to it and normally has eleven regular meetings
scheduled each year. Additional meetings are held for special
business when required.
The board is responsible for overall Group strategy, approval of
major capital expenditure and consideration of significant financial
and operational matters.
The role of Chairman and Chief Executive is held jointly by John Heller.
The Board consider this to be appropriate given the size of the business
and the additional cost of appointing a separate Chair. The separation
of these roles is not a core principal of the QCA.
The board committees, which have written terms of reference, deal
with specific aspects of the Group’s affairs:
• The nomination committee is chaired by C A Parritt and
comprises one other non-executive Director and the executive
Chairman. The committee is responsible for proposing candidates
for appointment to the board, having regard to the balance and
structure of the board. In appropriate cases recruitment
consultants may be used to assist the process. All Directors are
subject to re-election at a maximum of every three years.
• The remuneration committee is responsible for making
recommendations to the board on the Company’s framework of
executive remuneration and its cost. The committee determines
the contract terms, remuneration and other benefits for each of
the executive directors, including performance related bonus
schemes, pension rights, option grants and compensation
payments. The board itself determines the remuneration of the
non-executive Directors. The committee comprises two non-
executive Directors and it is chaired by C A Parritt. The executive
Chairman of the board is normally invited to attend. The Annual
Remuneration Report is set out on pages 27 to 31.
• The audit committee comprises two non-executive Directors and
is chaired by C A Parritt. The audit committee report, with its
terms of reference, is set out on page 34. The Chief Executive
and Finance Director are normally invited to attend.
BOARD AND BOARD COMMITTEE MEETINGS
HELD IN 2024
The number of regular meetings during the year and attendance
was as follows:
MEETINGS
HELD
MEETINGS
ATTENDED
J A Heller*
Board
Audit committee
Nomination committee
Remuneration committee
10
2
2
1
10
2
2
1
J Mintz*
Board
Audit committee
Remuneration committee
10
2
1
10
2
1
C A Parritt
Board
Audit committee
Nomination committee
Remuneration committee
10
2
2
1
10
2
2
1
H D Goldring
(resigned
30 June 2024)
Board
Audit committee
Nomination committee
Remuneration committee
6
2
2
1
0
0
0
0
R Priest
Board
Audit committee
Nomination committee
Remuneration committee
10
2
2
1
10
1
2
1
A Heller
Board
10
9
*Attended audit & remuneration committees by invitation.
London & Associated Properties PLC 2024 25
GOVERNANCE Corporate Governance
PERFORMANCE EVALUATION – BOARD,
BOARD COMMITTEES AND DIRECTORS
The performance of the board as a whole, its committees and the
non-executive Directors is assessed by the Chairman and the Chief
Executive and is discussed with the senior independent non-
executive Director. Their recommendations are discussed at the
nomination committee prior to proposals for re-election being
recommended to the board. The performance of executive
Directors is discussed and assessed by the remuneration committee.
The senior independent Director meets regularly with the Chairman,
executive and non-executive Directors individually outside of formal
meetings. The Directors will take outside advice in reviewing
performance but have not found this to be necessary to date.
NON-EXECUTIVE DIRECTORS
The senior independent non-executive Director is C A Parritt. The
other non-executive Directors are R Priest and A R Heller. R Priest
provides services to the Company on a fee paying basis. C A Parritt
also provides some advisory services as part of his accounting
practice.
The board encourages all non-executive Directors to act
independently and does not consider that length of service of any
individual non-executive Director has resulted in the inability or
failure to act independently. In the opinion of the board C A Parritt
and R Priest continue to fulfil their roles as independent non-
executive Directors. The background and skills of all non-executive
directors are set out on page 20.
The Directors are responsible for the Group’s system of internal
control and for reviewing its effectiveness at least annually, and for
the preparation and review of its financial statements. The board
has designed the Group’s system of internal control in order to
provide the Directors with reasonable assurance that assets are
safeguarded, that transactions are authorised and properly recorded
and that material errors and irregularities are either prevented or
would be detected within a timely period. However, no system of
internal control can eliminate the risk of failure to achieve business
objectives or provide absolute assurance against material
misstatement or loss. The key elements of the control system in
operation are:
• The board meets regularly on full notice with a formal schedule of
matters reserved for its decision and has put in place an
organisational structure with clearly defined lines of responsibility
and with appropriate delegation of authority;
• There are established procedures for planning, approval and
monitoring of capital expenditure and information systems for
monitoring the Group’s financial performance against approved
budgets and forecasts;
• The responsible executives are required regularly to undertake a
full assessment process to identify and quantify the risks that face
the functional activities for which they are responsible and assess
the adequacy of the prevention, monitoring and modification
practices in place for those risks. In addition, regular reports about
significant risks and associated control and monitoring procedures
are made to the executive Directors. The process adopted by the
Group accords with the guidance contained in the document
“Internal Control Guidance for Directors on the Combined Code”
issued by the Institute of Chartered Accountants in England and
Wales. The audit committee receives reports from external
auditors and from executive Directors of the Group. During the
period the audit committee has reviewed the effectiveness of the
system of internal control as described above. The board receives
periodic reports from all committees.
• There are established procedures for the presentation and review
of the financial statements and the Group has in place an
organisational structure with clearly defined lines of responsibility
and with appropriate delegation of authority.
There are no internal control issues to report in the annual report
and financial statements for the year ended 31 December 2024. Up
to the date of approval of this report and the financial statements,
the board has not been required to deal with any related material
internal control issues. The Directors confirm that the board has
reviewed the effectiveness of the system of internal control as
described during the period.
COMMUNICATION WITH SHAREHOLDERS
Prompt communication with shareholders is given high priority.
Extensive information about the Group and its activities is provided
in the Annual Report. In addition, a half-year report is produced for
each financial year and published on the Company’s website. The
Company’s website www.lap.co.uk is updated promptly with
announcements and Annual Reports upon publication. Copies from
previous years are also available on the website.
The share price history and market information can be found at
https://www.londonstockexchange.com/stock/LAS/london-
associated-properties-plc/company-page. The company code is LAS.
There is a regular dialogue with the Company’s stockbrokers and
institutional investors. Enquiries from individuals on matters relating
to their shareholdings and the business of the Group are dealt with
promptly and informatively.
The Company’s website is under continuous development to enable
better communication with both existing and potential new
shareholders.
THE BRIBERY ACT 2010
The Company is committed to acting ethically, fairly and with
integrity in all its endeavours and compliance with the Company’s
anti–bribery code is monitored closely.
26 London & Associated Properties PLC 2024
GOVERNANCE
GOVERNANCE
Governance statement by the
Chairman of the remuneration committee
The remuneration committee is pleased to present
its report for the year ended 31 December 2024.
The report is presented in two parts in accordance
with the remuneration regulations.
The first part is the Annual Remuneration Report which details
remuneration awarded to Directors and non-executive Directors
during the year. The shareholders will be asked to approve the
Annual Remuneration Report as an ordinary resolution (as in
previous years) at the AGM in June 2025
The second part is the Remuneration Policy which details the
remuneration policy for Directors, and it can be found at www.lap.
co.uk.
The current remuneration policy was subject to a binding vote
which was approved by shareholders at the AGM in June 2024. The
approval will continue to apply for a 3-year period commencing
from then. The committee reviewed the existing policy and deemed
that no changes were necessary to the current arrangements.
Both reports have been prepared in accordance with The Large and
Medium-sized Companies and Groups (Accounts and Reports)
(Amendment) Regulations 2013.
The Company’s auditor, Kreston Reeves LLP is required by law to
audit certain disclosures and where disclosures have been audited
that is indicated in the independent auditor’s report.
C A Parritt
Chairman, Remuneration Committee
29 April 2025
London & Associated Properties PLC 2024 27
GOVERNANCE
Annual remuneration report
THE FOLLOWING INFORMATION HAS BEEN AUDITED
Single total figure of remuneration for the year ended 31 December 2024
SALARY
AND FEES
£’000
BONUSES
£’000
BENEFITS
£’000
LONG TERM
INCENTIVE
AWARDS
£’000
PENSIONS
£’000
TOTAL
2024
£’000
TOTAL FIXED
REMUNERA-
TION
£’000
TOTAL
VARIABLE
REMUNERA-
TION
£’000
Executive Directors
J A Heller*
364
-
45
-
36
445
445
-
J A Heller - Bisichi
-
-
9
-
-
9
9
-
J Mintz
187
70
14
-
18
289
219
70
551
70
68
-
54
743
673
70
Non-executive Directors
H D Goldring*+
9
-
-
-
-
9
9
-
C A Parritt*+
38
-
-
-
-
38
38
-
R Priest*
35
-
-
-
-
35
35
-
A R Heller*
-
-
-
-
-
-
-
-
A R Heller - Bisichi
850
250
50
-
85
1,235
985
250
932
250
50
85
1,317
1,067
250
Total
1,483
320
118
-
139
2,060
1,740
320
J A Heller has an entitlement to an employer pension contribution of £35,995 for 2024 (2023: £33,075). He has elected for this not to be
paid at this time.
Single total figure of remuneration for the year ended 31 December 2023
SALARY
AND FEES
£’000
BONUSES
£’000
BENEFITS
£’000
LONG TERM
INCENTIVES
AWARDS
£’000
PENSIONS
£’000
TOTAL
2023
£’000
TOTAL FIXED
REMUNERA-
TION
£’000
TOTAL
VARIABLE
REMUNERA-
TION
£’000
Executive Directors
Sir Michael Heller*
1
-
7
-
-
8
8
-
Sir Michael Heller -
Bisichi
17
-
-
-
-
17
17
-
J A Heller
558
-
45
-
36
639
639
-
J A Heller – Bisichi
-
-
9
-
-
9
9
-
J Mintz
179
70
13
-
17
279
209
70
755
70
74
-
53
952
882
70
Non-executive Directors
H D Goldring+
18
-
-
-
-
18
18
-
C A Parritt*+
38
-
-
-
-
38
38
-
R Priest*+
35
-
-
-
-
35
35
-
A R Heller
-
-
-
-
-
-
-
-
A R Heller - Bisichi
850
-
50
-
85
985
985
-
941
-
50
-
85
1,076
1,076
-
Total
1,696
70
124
-
138
2,028
1,958
70
* Note 26 “Related party transactions”
+ Members of the remuneration committee. C A Parrit was chair of the remuneration committee throughout 2023 and 2024. H D Goldring was a member of the
remuneration committtee until his resignation on 30 June 2024. R Priest was appointed to the remuneration committee on 30 January 2024.
28 London & Associated Properties PLC 2024
GOVERNANCE Annual remuneration report
Summary of directors’ terms
DATE OF CONTRACT
UNEXPIRED TERM
NOTICE PERIOD
Executive Directors
John Heller
1 May 2003
Continuous
12 months
Jonathan Mintz
11 February 2019
Continuous
3 months
Non-executive Directors
H D Goldring (Resigned 30/06/24)
1 July 1992
Continuous
3 months
C A Parritt
1 January 2006
Continuous
3 months
R Priest
31 July 2013
Continuous
3 months
A R Heller
29 March 2023
Continuous
3 months
TOTAL PENSION ENTITLEMENTS
Two directors had benefits under money purchase schemes. Under
his contract of employment, one Director was entitled to a regular
employer contribution (currently £18,226 a year). Under his contract
of employment, the other Director was entitled to a regular
employer contribution (currently £34,067 a year) but has elected to
defer the payment into his pension scheme. There are no final salary
schemes in operation. No pension costs are incurred on behalf of
non-executive Directors. There are no additional benefits payable to
any Director in the event of early retirement.
SHARE INCENTIVE PLAN (SIP)
In 2006 the Directors set up an HMRC approved share incentive plan
(SIP). The purpose of the plan, which is open to all eligible LAP executive
Directors and head office based staff, is to enable them to acquire
shares in the Company and give them a continuing stake in the Group.
The SIP comprises four types of share – (1) free shares under which
the Company may award shares of up to the value of £3,000 each
year, (2) partnership shares, under which members may save up to
£1,500 per annum to acquire shares, (3) matching shares, through
which the Company may award up to two shares for each share
acquired as a partnership share, and (4) dividend shares, acquired
from dividends paid on shares within the SIP.
1. Free shares: No free shares were issued in 2023 or 2024.
2. Partnership shares: No partnership shares were issued in 2023
or 2024.
3. Matching shares: The partnership share agreements for the year
to 31 October 2024 provide for two matching shares to be
awarded free of charge for each partnership share acquired.
No partnership shares were acquired in 2024 (2023: nil).
Matching shares will usually be forfeited if a member leaves
employment in the Group within five years of their grant.
4. Dividend shares: Dividends on shares acquired under the SIP will
be utilised to acquire additional shares. Accumulated dividends
received on shares in the SIP to 31 December 2024 amounted to
£nil (2023: £nil). None of the Directors received dividend shares
during the year (2023: nil shares).
The SIP is set up as an employee benefit trust. The trustee is
London & Associated Securities Limited, a wholly owned subsidiary
of LAP, and all shares and dividends acquired under the SIP will be
held by the trustee until transferred to members in accordance with
the rules of the SIP.
SHARE OPTION SCHEMES
The Company has an HMRC approved scheme (Approved Scheme).
It was set up in 1986 in accordance with HMRC rules to gain HMRC
approved status which gave the members certain tax advantages.
There are no performance criteria for the exercise of options under
the Approved Scheme, as this was set up before such requirements
were considered to be necessary. No Director has any options
outstanding under the Approved Scheme nor were any options
granted under the Approved Scheme for the year ended 31
December 2024.
A share option scheme known as the “Non-approved Executive
Share Option Scheme” (Unapproved Scheme) which does not have
HMRC approval was set up during 2000. At 31 December 2024
there were no options to subscribe for ordinary shares outstanding.
The exercise of options under the Unapproved Scheme is subject to
the satisfaction of objective performance conditions specified by
the remuneration committee which conforms to institutional
shareholder guidelines and best practice provisions. Further details
of this scheme are set out in Note 24 “Share Capital” to the financial
statements.
PAYMENTS TO PAST DIRECTORS
No payments were made to past Directors in the year ended 31
December 2024 (2023: none).
PAYMENTS FOR LOSS OF OFFICE
No payments for loss of office were made in the year ended 31
December 2024 (2023: none).
Benefits include the provision of car, health and other insurance and
subscriptions.
JA Heller and AR Heller are interested in a number of private
property companies that receive services from the Company’s
property agents – see Note 26 to the financial statements “Related
party transactions”.
J A Heller is a director of Dragon Retail Properties Limited, (a
subsidiary for IFRS 10 purposes) and received benefits from that
company of £10,793 (2023: £10,404) for services. This is included
in the remuneration figures disclosed above.
In March 2023, J A Heller became a non-executive director of
Bisichi PLC (a subsidiary for IFRS 10 purposes) and received a
benefit from that company of £9,333 (2023: £9,333). He didn’t
receive any other remuneration or a bonus from Bisichi PLC.
The remuneration figures for C A Parritt include fees paid to his
accountancy practice for consultancy services provided to the
Group. This is detailed in Note 26 to the financial statements.
R Priest provides consultancy services to the Group. This is detailed
in Note 26 to the financial statements.
A R Heller, who is the Chairman & Managing Director of Bisichi PLC,
(a subsidiary for IFRS 10 purposes) became a non-executive director
of LAP on 29 March 2023 but he did not receive any remuneration
from LAP during 2024.
London & Associated Properties PLC 2024 29
GOVERNANCE Annual remuneration report
STATEMENT OF DIRECTORS’ SHAREHOLDINGS AND SHARE INTERESTS
Directors’ interests
The interests of the Directors in the ordinary shares of the Company, including family and trustee holdings, where appropriate, were as
follows:
BENEFICIAL
INTERESTS
NON-BENEFICIAL
INTERESTS
31 DEC 24
1 JAN 24
31 DEC 24
1 JAN 24
J A Heller
1,872,410
1,872,410
19,277,931
19,277,931
J Mintz
100,000
100,000
-
-
H D Goldring *
n/a
19,819
-
-
C A Parritt
36,168
36,168
-
-
R Priest
-
-
-
-
A R Heller
816,874
816,874
#19,277,931
#19,277,931
* Resigned 30 June 2024
# These non-beneficial holdings are duplicated with those of J A Heller.
The beneficial holdings of Directors shown above include their interests in the Share Incentive Plan.
No share awards were made to the Directors in the year, and accordingly no discretion was exercised in determining any award or bonus
payment as a result of any share price appreciation.
There are no requirements or guidelines for any Director to own shares in the Company.
THE FOLLOWING INFORMATION IS UNAUDITED:
The graph illustrates the Company’s performance as compared with a broad equity market index over a five year period. Performance is
measured by total shareholder return. The directors have chosen the FTSE All Share – Total Return Index as a suitable index for this
comparison as it gives an indication of performance against a large spread of quoted companies.
The middle market price of London & Associated Properties PLC ordinary shares at 31 December 2024 was 9.25p (2023: 12.5p). During
the year the share middle market price ranged between 13.5p and 9.25p.
Total Shareholder Return
London & Associated Properties
FTSE All Share Index
10
20
30
40
50
60
70
80
90
100
110
120
130
Jan 20
Mar 20
May 20
Jul 20
Sep 20
Nov 20
Jan 21
Mar 21
May 21
Jul 21
Sep 21
Nov 21
Jan 22
Mar 22
May 22
Jul 22
Sep 22
Nov 22
Jan 23
Mar 23
May 23
Jul 23
Sep 23
Nov 23
Jan 24
Mar 24
May 24
Jul 24
Sep 24
Nov 24
30 London & Associated Properties PLC 2024
GOVERNANCE Annual remuneration report
REMUNERATION OF THE CHIEF EXECUTIVE OVER THE LAST TEN YEARS
YEAR
CEO
CHIEF EXECUTIVE SINGLE
TOTAL FIGURE OF
REMUNERATION
£’000
ANNUAL BONUS PAYMENT
AGAINST MAXIMUM
OPPORTUNITY*
%
LONG-TERM INCENTIVE
VESTING RATES
AGAINST MAXIMUM
OPPORTUNITY*
%
2024
J A Heller
453
0%
n/a
2023
J A Heller
648
0%
n/a
2022
J A Heller
628
0%
n/a
2021
J A Heller
590
0%
n/a
2020
J A Heller
418
0%
n/a
2019
J A Heller
648
0%
n/a
2018
J A Heller
870
20%
n/a
2017
J A Heller
487
11%
n/a
2016
J A Heller
569
18%
n/a
2015
J A Heller
762
41%
n/a
*There were no formal criteria or conditions to apply in determining the amount of bonus payable or the number of shares to be issued prior to 2014.
Considering the prevailing economic situation at the time the Chief Executive did not draw £185,000 (35%) of his salary in 2020 & 2024.
PERCENTAGE CHANGE IN EXECUTIVE AND NON-EXECUTIVE DIRECTOR REMUNERATION (AUDITED)
The table below shows the percentage change in remuneration of the Directors undertaking the role of Chief Executive Officer, Finance
Director and Non-Executive Directors, and the average of the Company's colleagues in London & Associated Properties PLC on a full-time
equivalent basis.
The values in column 'a' represent the percentage change in salary & fees; values in column 'b' represent the percentage change in taxable
benefits; and values in column 'c' represent the percentage change in bonus outcomes for performance periods in respect of each financial
year. Where increases are infinite relative to the preceding year, we have shown them as 100% for illustration. Where a director was
appointed or retired part-way through the year, we have annualized pay, except for one-time items. Where comparison to the prior year is
not possible, we have used dashes.
2024vs2023
2023vs2022
2022vs2021
2021vs2020
2020vs2019
Percentage change for:
a
b
c
a
b
c
a
b
c
a
b
c
a
b
c
Executive Directors:
J A Heler
(37%)
(2%)
0%
0%
42%
0%
5%
52%
0%
53%
(38%)
0%
(35%)
(7%)
0%
J Mintz
5%
8%
0%
7%
30%
0%
5%
25%
40%
0% 100% 100%
12%
0% (100%)
Non Executive Directors:
H D Goldring
0%
0%
0%
0%
0%
0%
0% (100%)
0%
0%
18%
0%
0%
22%
0%
C A Parritt
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
R Priest
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
A R Heller
0%
0%
0%
-
-
-
-
-
-
-
-
-
-
-
-
Colleague Pay:
5%
(22%)
0%
7%
0%
8%
5%
0%
15%
0%
0% 100%
6%
1% (100%)
RELATIVE IMPORTANCE OF SPEND ON PAY
The total expenditure of the Group on remuneration to all employees (Note 27 refers) is shown below:
2024
£’000
2023
£’000
Employee Remuneration
9,098
8,860
Distributions to shareholders
0
0
London & Associated Properties PLC 2024 31
GOVERNANCE Annual remuneration report
SHAREHOLDER VOTING
At the Annual General Meeting on 26 June 2024, there was an advisory vote on the resolution to approve the Remuneration Report, other
than the part containing the remuneration policy.
In addition, on 9 June 2023, there was a binding vote on the resolution to approve the Remuneration Policy. The results are detailed below:
% OF VOTES
FOR
% OF VOTES
AGAINST
NUMBER OF
VOTES
WITHHELD
Resolution to approve the Remuneration Report (26 June 2024)
98.90
1.10
27,265
Resolution to approve the Remuneration Policy (9 June 2023)
94.20
5.80
2,452,265
STATEMENT OF IMPLEMENTATION OF
REMUNERATION POLICY
The policy was approved at the AGM in June 2023 and was
effective from 1 August 2023. The vote on the remuneration policy
is binding in nature. The Company may not then make a
remuneration payment or payment for loss of office to a person
who is, is to be, or has been a director of the Company unless that
payment is consistent with the approved remuneration policy, or
has otherwise been approved by a resolution of members. During
the year there were no deviations from the procedure for the
implementation of the remuneration policy as set out in the policy.
CONSIDERATION BY THE DIRECTORS OF
MATTERS RELATING TO DIRECTORS’
REMUNERATION
The Remuneration Committee considered the executive Directors’
remuneration and the Board considered the non-executive
Directors’ remuneration in the year ended 31 December 2024.
During the year under review:
• There were no major decisions on Directors’ remuneration
• There were no substantial changes to Directors’ remuneration
• There was no discretion which has been exercised in the award of
Directors’ remuneration
The Company did not engage any consultants to provide advice or
services to materially assist the remuneration committee’s
considerations.
32 London & Associated Properties PLC 2024
GOVERNANCE
Remuneration policy summary
The remuneration policy summary below is an extract
of the group’s current remuneration policy on directors’
remuneration (excluding Bisichi PLC), which was
approved by a binding vote at the 2023 AGM. The
approved policy took effect from 9 June 2023.
A copy of the full policy can be found at www.lap.co.uk.
POLICY TABLE
ELEMENT
PURPOSE
POLICY
Executive directors
Base salary
To recognise:
Skills
Responsibility
Accountability
Experience
Value
Considered by remuneration committee on appointment
Set at a level considered appropriate to attract, retain, motivate
and reward the right individuals
Pension
To provide competitive
retirement benefits
Company contribution offered at up to 10% of base salary as part
of overall remuneration package
Benefits
To provide a competitive
benefits package
Contractual benefits include:
Car or car allowance
Group health cover
Death in service cover
Permanent health insurance
Annual
bonus
To reward and incentivise
In assessing the performance of the executive team, and in particular
to determine whether bonuses are merited the remuneration committee takes into
account the overall performance of the business, as well as individual contribution to the
business in the period
Share
options
To provide executive
directors with
a long-term interest in
the company
Where it is necessary to attract, retain, motivate and reward the right individuals, the
directors may establish new schemes to replace any expired schemes
Share incentive
plan (SIP)
To offer a shorter term
incentive in the company
and to give directors a
stake in
the group
Offered to executive directors and head office staff
Non-executive directors
Base salary
To recognise:
Skills
Responsibility
Experience
Risk
Value
Considered by the board on appointment
Set at a level considered appropriate to attract, retain and motivate
the individual
Experience and time required for the role are considered on appointment
Pension
No pension offered
Benefits
No benefits offered except in exchange for sacrificing fees.
Share options
Non-executive directors do not participate in the share option schemes
Notes to the Remuneration Policy
The remuneration committee considers the performance
measures outlined in the table above to be appropriate
measures of performance and that the KPIs chosen align the
interests of the directors and shareholders
London & Associated Properties PLC 2024 33
GOVERNANCE Remuneration policy summary
In setting the policy, the Remuneration Committee has taken the
following into account:
• The need to attract, retain and motivate individuals of a calibre who
will ensure successful leadership and management of the company
• The LAP Group’s general aim of seeking to reward all employees
fairly according to the nature of their role and their performance
• Remuneration packages offered to similar companies within the
same sector
• The need to align the interests of shareholders as a whole with
the long-term growth of the Group; and
• The need to be flexible and adjust with operational changes
throughout the term of this policy
In addition to the entitlements set out above, Bisichi PLC, which is
treated as a subsidiary of the Group under the Companies Act
2006, shall be entitled to pay, and any executive director of Bisichi
PLC who is also a director of the Company, shall be entitled to
retain, any remuneration permissible in accordance with Bisichi
PLC’s remuneration policy. Any such remuneration will be (i) to the
extent required, permitted by this remuneration policy and (ii)
excluded from the calculation of any limits on remuneration under
this remuneration policy.
The remuneration of non-executive directors is determined by the
board, and takes into account additional remuneration for services
outside the scope of the ordinary duties of non-executive directors.
For details of remuneration of other company employees please see
page 30.
OPERATION
OPPORTUNITY AND PERFORMANCE CONDITIONS
Reviewed annually whenever there is a change
of role or operational responsibility
Paid monthly in cash
There is no prescribed maximum salary or maximum rate of increase, although
any increase in excess of inflation is unlikely, unless there are changes in
responsibility
No individual director will be awarded a base salary in excess of £675,000 a
year
No specific performance conditions are attached to base salaries
The contribution payable by the Company is included in
the director’s contract of employment
Paid into money purchase schemes
Company contribution offered at up to 10% of base salary as part of overall
remuneration package
No specific performance conditions are attached to pension contributions
The committee retains the discretion to approve changes
in contractual benefits in exceptional circumstances or
where factors outside the control of the Group lead to
increased costs
(e.g. medical inflation)
The costs associated with benefits offered are closely controlled and reviewed
on an annual basis
No director will receive benefits of a value in excess of 30% of their base
salary
No specific performance conditions are attached to contractual benefits
The remuneration committee is using its discretion to
determine the level of bonus on an annual basis
In assessing performance consideration is given to the
level of net rental income, cash flow, voids, realised
development gains and income from managing joint
ventures, as well as NAV changes. Achieved results are
then compared with expectation taking account of market
conditions
Bonuses are generally offered in cash or shares
The current maximum bonus will not exceed 80% of base salary in any one
year but the remuneration committee reserves the power to award up to
150% in an exceptional year
Performance conditions will be assessed on an annual basis
The performance measures applied may be financial, non-financial, corporate,
divisional or individual and in such proportion as the remuneration committee
considers appropriate
Offered at appropriate times by the
remuneration committee
The aggregate number of shares over which options may be granted under all
of the company’s option schemes (including any options and awards granted
under the company’s employee share plans) in any period of ten years, will not
exceed, at the time of grant, 10% of the ordinary share capital of the company
from time to time
Share options will be offered by the remuneration committee at their
discretion and will be subject to appropriate performance criteria at the time.
Maximum participation levels are set by HMRC
Of any bonus awarded, Directors may opt to have maximum of £3,000 per
year paid in ‘Free Shares’ under the SIP scheme rules
Reviewed annually
No individual non-executive director will be awarded a base salary in excess of
£50,000 a year
No performance conditions are attached to base salaries
34 London & Associated Properties PLC 2024
GOVERNANCE
GOVERNANCE
Audit committee report
The committee’s terms of reference have been
approved by the board and follow published
guidelines, which are available on request from the
company secretary.
The audit committee’s primary tasks are to:
• review the scope of external audit, to receive regular reports from
Kreston Reeves LLP and to review the half-yearly and annual
accounts before they are presented to the board, focusing in
particular on accounting policies and areas of management
judgement and estimation;
• monitor the controls which are in force to ensure the integrity of
the information reported to the shareholders;
• act as a forum for discussion of internal control issues and
contribute to the board’s review of the effectiveness of the
Group’s internal control and risk management systems and
processes;
• to review the risk assessments made by management, consider
key risks with action taken to mitigate these and to act as a forum
for discussion of risk issues and contribute to the board’s review
of the effectiveness of the Group’s risk management control and
processes;
• consider once a year the need for an internal audit function;
• advise the board on the appointment of the external auditors, the
rotation of the audit partner every five years and on their
remuneration for audit work; discuss the nature and scope of
their audit work and undertake a formal assessment of their
independence each year, which includes:
i)
a review of non-audit services provided to the Group and
related fees;
ii) discussion with the auditors of their written report detailing
all relationships with the Company and any other parties that
could affect independence or the perception of
independence;
iii) a review of the auditors’ own procedures for ensuring the
independence of the audit firm and partners and staff
involved in the audit, including the regular rotation of the
audit partner; and
iv) obtaining a written confirmation from the auditors that, in
their professional judgement, they are independent.
MEETINGS
The committee meets at least twice a year prior to the publication
of the annual results and discusses and considers the half year
results prior to their approval by the board. The audit committee
meetings are attended by the external audit partner, chief executive,
finance director and company secretary. During the year the
members of the committee also meet on an informal basis to
discuss any relevant matters which may have arisen. Additional
formal meetings may be held as necessary.
During the past year the committee:
• met with the external auditors, and discussed their reports to the
audit committee;
• approved the publication of annual and half year financial results;
• considered and approved the annual review of internal controls;
• decided that there was no current need for an internal audit
function due to the scale of the business and processes in place;
• agreed the independence of the auditors and approved their fees
for audit services as set out in Note 2 to the financial statements;
• the chairman of the audit committee has also had separate
meetings and discussions with the external audit partner;
FINANCIAL REPORTING
As part of its role, the Audit Committee assessed the audit findings
that were considered most significant to the financial statements,
including those areas requiring significant judgement and/or
estimation. When assessing the identified financial reporting
matters, the committee assessed quantitative materiality primarily
by reference to the carrying value of the group’s total assets, given
that the group operates a principally asset based business. When
determining quantitative materiality, the Board also gave
consideration to the value of revenues generated by the group and
net asset value, given that they are key trading and business KPIs.
The qualitative aspects of any financial reporting matters identified
during the audit process were also considered when assessing their
materiality. Based on the considerations set out above we have
considered quantitative errors individually or in aggregate in excess
of approximately £1.534 million in relation to the Group and £0.468
million in relation to the parent company and £1.0 million for the
Bisichi group to be material.
EFFECTIVENESS OF THE EXTERNAL AUDIT
PROCESS
Receiving high-quality and effective audit services is of paramount
importance to the Committee. We continue to monitor carefully the
effectiveness of the external auditor as well as their independence.
We have full regard to the FRC’s Ethical Standard and ensure that
our procedures and safeguards meet these standards.
The external auditor produced a detailed audit planning report in
preparation for the year-end financial statements.
The effectiveness review of the external auditor is considered as
part of the Committee’s annual performance evaluation, which also
examines the relationship and communications between the
Committee and the external auditor. No issues were raised during
that review. The Committee concluded that the Auditor was
effective during the year and that the relationship and
communications were open and constructive.
EXTERNAL AUDITOR
Kreston Reeves LLP has held office throughout the period under
review. In the United Kingdom London & Associated Properties PLC
provides extensive administration and accounting services to Bisichi
PLC, which has its own audit committee and employs Kreston
Reeves LLP as its auditor.
C A Parritt
Chairman – Audit Committee
29 April 2025
London & Associated Properties PLC 2024 35
GOVERNANCE
GOVERNANCE
Directors’ responsibilities statement
Directors are responsible for preparing the
Strategic Report and the Directors’ Report, the
Directors’ Remuneration Report and the financial
statements in accordance with applicable law and
regulations.
Company law requires the directors to prepare group and company
financial statements for each financial year. The directors have
elected under company law to prepare group financial statements in
accordance with UK-adopted international accounting standards.
The directors have elected under company law to prepare the
company financial statements in accordance with United Kingdom
Generally Accepted Accounting Practice (United Kingdom
Accounting Standards and applicable law) including FRS 101
“Reduced Disclosure Framework”.
The group financial statements are required by law and international
accounting standards in conformity with the requirements of the
Companies Act 2006 and UK-adopted international financial
reporting standards to present fairly the financial position and
performance of the group; the Companies Act 2006 provides in
relation to such financial statements that references in the relevant
part of that Act to financial statements giving a true and fair view
are references to their achieving a fair presentation.
Under company law the directors must not approve the financial
statements unless they are satisfied that they give a true and fair
view of the state of affairs of the group and the company and of the
profit or loss of the group for that period.
In preparing each of the group and company financial statements,
the directors are required to:
a. select suitable accounting policies and then apply them
consistently;
b. make judgements and accounting estimates that are reasonable
and prudent;
c. for the group financial statements, state whether applicable
UK-adopted international accounting standards have been
followed, subject to any material departures disclosed and
explained in the Financial Statements;
d for the company financial statements, state whether applicable
UK accounting standards, comprising FRS101, have been
followed, subject to any material departures disclosed and
explained in the company financial statements;
e. prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the group and the
company will continue in business.
The directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the group’s and the
company’s transactions and disclose with reasonable accuracy at
any time the financial position of the group and the company and
enable them to ensure that the financial statements and the
Directors’ Remuneration Report comply with the Companies Act
2006. They are also responsible for safeguarding the assets of the
group and the company and hence for taking reasonable steps for
the prevention and detection of fraud and other irregularities.
DIRECTORS’ STATEMENT PURSUANT TO THE
DISCLOSURE GUIDANCE AND TRANSPARENCY
RULES
The Directors consider that the Annual Report and Accounts, taken
as a whole, is fair, balanced and understandable and provides the
information necessary for shareholders to assess the Group’s and
Company’s position and performance, business model and strategy
Each of the directors, whose names and functions are listed on page
20 confirm that, to the best of each person’s knowledge:
a. the financial statements, prepared in accordance with the
applicable set of accounting standards, give a true and fair view of
the assets, liabilities, financial position and loss of the company and
the undertakings included in the consolidation taken as a whole;
and
b. the Strategic Report contained in the Annual Report includes a
fair review of the development and performance of the business
and the position of the company and the undertakings included in
the consolidation taken as a whole, together with a description of
the principal risks and uncertainties that they face.
The directors are responsible for the maintenance and integrity of
the corporate and financial information included on the London &
Associated Properties PLC website.
Legislation in the United Kingdom governing the preparation and
dissemination of financial statements may differ from legislation in
other jurisdictions.
36 London & Associated Properties PLC 2024
GOVERNANCE
GOVERNANCE
Independent auditor’s report
TO THE SHAREHOLDERS OF LONDON & ASSOCIATED PROPERTIES PLC
FOR THE YEAR ENDED 31 DECEMBER 2024
OPINION
We have audited the financial statements of
London & Associated Properties PLC (the ‘Parent
Company’) and its subsidiaries (the “Group”), for the
year ended 31 December 2024 which comprise the
consolidated income statement, consolidated
statement of other comprehensive income,
consolidated and company balance sheets,
consolidated and company statements of changes
in equity, consolidated cash flow statement and
notes to the financial statements, and notes to the
financial statements, including a summary of
significant accounting policies.
In our opinion:
• the financial statements of London & Associated Properties PLC
give a true and fair view of the state of the Group’s and of the
Parent Company's affairs as at 31 December 2024 and of the
Group’s profit for the year then ended and of the Group’s
cashflows position as at 31 December 2024;
• the Group financial statements have been properly prepared in
accordance with UK-adopted international financial accounting
standards; and
• the Parent Company financial statements have been properly
prepared in accordance with United Kingdom Generally Accepted
Accounting Practice; and
• the Group and Parent Company financial statements have been
prepared in accordance with the requirements of the
Companies Act 2006.
BASIS FOR OPINION
We conducted our audit in accordance with International Standards on
Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under
those standards are further described in the Auditor’s responsibilities
for the audit of the financial statements section of our report. We are
independent of the Group in accordance with the ethical requirements
that are relevant to our audit of the financial statements in the UK,
including the Financial Reporting Council’s Ethical Standard as
applied to listed entities, and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe
that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
AN OVERVIEW OF THE SCOPE OF OUR AUDIT
As part of designing our audit, we determined materiality and
assessed the risks of material misstatement in the financial statements.
In particular, we looked at where the directors made subjective
judgements, for example in respect of significant accounting estimates
that involved making assumptions and considering future events that
are inherently uncertain. We also addressed the risk of management
override of internal controls, including evaluating whether there was
evidence of bias by the directors that represented a risk of material
misstatement due to fraud.
We tailored the scope of our audit to ensure that we performed
sufficient work to be able to give an opinion on the financial statements
as a whole, taking into account the structure of the Group and the
Parent Company, the accounting processes and controls, and the
industry in which they operate. We have determined the components
of the group based on a combination of finance function and
business function of each component.
Our scoping considerations for the Group audit were based both on
financial information and risk. In total, we have identified 6 distinct
components within the group financial statements on the basis of
opinion to be issued:
Our application of materiality
COMPONENT NAME:
AUDIT STRATEGY
London & Associated Properties Plc
Kreston Reeves have undertaken a full statutory audit of the Parent Company accounts
and the consolidation accounting.
Analytical Properties Limited
Kreston Reeves have undertaken a full statutory audit of this entity.
Dragon Retail Limited
Kreston Reeves have undertaken a full statutory audit of this entity.
West Ealing Projects Limited
Kreston Reeves have undertaken a full statutory audit of this entity.
Broadway Regen Limited
Kreston Reeves have undertaken a full statutory audit of this entity.
Bisichi Plc
Kreston Reeves have undertaken a full statutory audit of the Bisichi UK Plc Investment
properties component while B.D.O. South Africa have undertaken full statutory audits on
the mining operations in South Africa, under the close supervision of Kreston Reeves, of
the mining operating subsidiaries.
London & Associated Properties PLC 2024 37
GOVERNANCE
OUR APPLICATION OF MATERIALITY
We apply the concept of materiality in planning and performing the
audit, in evaluating the effect of identified misstatements on the
audit and in forming our audit opinion. Based on our professional
judgement, we determined materiality and performance materiality
for the financial statements of the Group and of the Parent
Company as follows:
INVOLVEMENT OF A COMPONENT AUDITOR
A separate audit team in Kreston Reeves with the same
engagement partner as the Group audit team was responsible for
the audit of Bisichi UK Plc and they have involved B.D.O. South
Africa in the conduct of the Group audit for the year ended 31
December 2024. The component auditor undertook specific audit
procedures with respect to the financial information of the
component listed in the table above. This work was undertaken in
full compliance with the requirements of ISA 600 (Revised).
GROUP FINANCIAL STATEMENTS
PARENT COMPANY FINANCIAL STATEMENTS
Materiality
£1,517,000 (2023: £1,479,000)
£438,000 (2023: £545,000)
Basis for determining materiality
~3% of net assets
~3% of net assets
Rationale for benchmark applied
The group's principal activity is that of
an exploration and mining operation and
investment property holdings. To this
end the business is highly asset focused.
Therefore, a benchmark for materiality
based on the net assets of the group
is considered to be appropriate. This
benchmark has been selected after
taking into account the key performance
indicators used by stakeholders of these
financial statements.
The company’s principal activity is that
of a holding company for the group and
as such has no direct trade. It does hold
investment balances with subsidiaries.
Therefore, a benchmark for materiality
based on the net assets of the company
is appropriate. This benchmark has
been selected after considering the
key performance indicators used by
stakeholders of these financial statements.
Performance materiality
£1,062,000 (2023: £1,035,000)
£306,000 (2023: £381,000)
Basis for determining performance
materiality
70% of materiality
70% of company materiality
Reporting threshold
£76,000 (2023: £73,000)
£22,000 (2023: £27,000)
Basis for determining reporting threshold
5% of materiality
5% of materiality
We reported all audit differences found in excess of our reporting threshold to the audit committee.
For each Group component within the scope of our Group audit, we determined component performance materiality that is less than our
overall Group performance materiality. The component performance materiality determined for Group components was £690,000.
GOVERNANCE Independent auditor’s report
38 London & Associated Properties PLC 2024
GOVERNANCE Independent auditor’s report
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of
the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) we identified,
including those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the efforts
of the engagement team.
These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters. This is not a complete list of all risks identified by our audit.
REVENUE RECOGNITION: £54,917,000 (2023: £53,183,000)
Significance and nature of the key audit matter
How our audit addressed the key audit matter
Revenue is a key performance indicator for users in assessing
the group’s financial statements. The revenue generated
has a significant impact on cash inflows and profit before
tax for the group. As such revenue is a key determinant in
profitability and the group’s ability to generate cash.
Revenue comprises two key revenue streams: the sale of coal
and property rental income.
Coal revenue is recognised when the customer has a legally
binding obligation to settle under the terms of the contract.
Rental income is recognised in the Group income statement
on a straight-line basis over the term of the lease.
Sales of coal and coal processing services in the period were tested
from the trigger point of the sale to the point of recognition in the
financial statements, corroborating this to contract sales or service
terms and the recognition stages detailed in IFRS 15.
Rental income revenue was recalculated based on the terms included
in signed lease agreements. With samples selected from the tenancy
schedules, tracing entries into the financial statements. The revenue
recognition stages detailed within the standard were carefully
considered to ensure revenue recognised was in line with these.
Revenue streams were further analytically reviewed via comparison
to our expectations. Expectations were based on a combination of
prior financial data/budgets and our own assessments based on our
knowledge gained of the business.
Cut-off of revenue was reviewed by analysing sales recorded during
the period just before and after the financial year end and determining
if the recognition applied was appropriate.
Walkthrough testing was performed to ensure that key systems and
controls in place around the revenue cycle operated as designed.
The accuracy of revenue disclosures in the accounts were confirmed
to be consistent with the revenue cycle observed and audited. The
completeness of these disclosures was confirmed by reference to the
full disclosure requirements as detailed in IFRS 15.
KEY OBSERVATIONS
We have no concerns over the material accuracy of revenue recognised in the financial statements.
London & Associated Properties PLC 2024 39
GOVERNANCE Independent auditor’s report
VALUATION/IMPAIRMENT OF INVESTMENT PROPERTIES: £38,991,000 (2023: £36,649,000)
VALUATION/IMPAIRMENT OF INVENTORY (DEVELOPMENT PROPERTY): £8,996,000 (2023: £8,889,000)
Significance and nature of the key audit matter
How our audit addressed the key audit matter
Investment properties comprise freehold and long leasehold
land and buildings. Investment properties are carried at fair
value in accordance with IAS 40. Properties classified as
inventory are properties which are currently being developed
and are measured at the lower of cost and net realisable
value in accordance with IAS 2.
Investment properties are revalued annually by professional
external surveyors and included in the balance sheet at their
fair value. Gains or losses arising from changes in the fair
values of assets are recognised in the consolidated income
statement in the period to which they relate. In accordance
with IAS 40, investment properties are not depreciated.
Management performs an annual appraisal on the
development property valuations to ensure that the carrying
amount is the lower of cost and net realisable value in
accordance with IAS 2.
The fair value of the head leases is the net present value of
the current head rent payable on leasehold properties until
the expiry of the lease.
Appropriate classification of each property was considered, IAS 40 for
investment properties and IAS 2 for inventory to ensure each property
has been classified correctly and therefore accounted for and disclosed
within these financial statements in accordance with the relevant
standard.
External valuation reports were obtained and vouched to stated fair
values. The competence and independence of the valuation experts
was carefully considered to ensure that the reports they produce can
be relied upon. A meeting was held with the valuers to challenge the
assumptions in their report and discuss the movements in the values
of specific properties. Discussions were held with the management
to understand and challenge the reasonableness of the valuation
assessment prepared for the inventory (development property) balance
as at year end.
Supporting calculations for the long leasehold land and buildings were
reviewed to ensure they are materiality accurate, and any assumptions
are reasonable. We have further performed our own separate
impairment considerations to consider if events/factors in place at year
end present material impairment indicators. Based on work performed,
an impairment provision of £900K was recognised on the development
property balance as at year end. No impairment provision was deemed
necessary to be provided for investment properties.
We have further considered the threat of climate change with respect
to the potential impact on property values.
An auditor’s expert was appointed to review the work of management’s
valuation expert and provide their conclusion over the appropriateness
of the methodologies, data and assumptions applied.
KEY OBSERVATIONS
We have no concerns over the material accuracy of investment properties and inventory (development property) values recognised in
the financial statements.
40 London & Associated Properties PLC 2024
GOVERNANCE Independent auditor’s report
VALUATION/IMPAIRMENT OF MINING RESERVES AND DEVELOPMENT: £22,771,000 (2023: £18,896,000)
Significance and nature of the key audit matter
How our audit addressed the key audit matter
The purpose of mine development is to establish secure
working conditions and infrastructure to allow the safe and
efficient extraction of recoverable reserves.
Depreciation on mine development costs is not charged
until production commences or the assets are put to use. On
commencement of full commercial production, depreciation
is charged over the life of the associated mine reserves
extractable using the asset on a unit of production basis.
The unit of production calculation is based on tonnes mined as
a ratio to proven and probable reserves and also includes future
forecast capital expenditure. The cost recognised includes the
recognition of any decommissioning assets related to mine
development.
The accounting requirements of IFRS 6 and IAS 16 were considered
to ensure capitalisation of costs to mine development under IAS 16
was appropriate.
In considering impairment indicators, as governed by IAS 36, the
life of mine assessment was obtained. All significant input variables
were considered and stress-tested to assess headroom between
modelling and the value of mine development.
Consideration was given to the competence and independence
of the technical expert involved with the production of historic
technical reports on which the life of mine assessment is partially
built.
Depreciation of mine development was recalculated based on
the unit of production basis to ensure accurately recorded. This
basis was also considered for reasonableness by reference to the
accounting policies of industry peers. Additional consideration was
given to the remaining expected life of coal mining more generally.
We have further considered to threat of climate change with
respect to the potential life of the mining operation to ensure that
this will not be less than the current legal remaining lifespan of 5
years.
The accuracy and appropriateness of mine development disclosures
in the accounts were confirmed to be consistent with the mine
development accounting cycle observed and audited.
KEY OBSERVATIONS
We have no concerns over the material accuracy of mining reserves and development values recognised in the financial statements.
CONCLUSIONS RELATING TO GOING CONCERN
In auditing the financial statements, we have concluded that the
Directors' use of the going concern basis of accounting in the
preparation of the financial statements is appropriate.
Our evaluation of the director’s assessment of the Group and Parent
company’s ability to continue to adopt the going concern basis of
accounting including the following:
• We gained an understanding of the systems and controls around
managements’ going concern assessment, including for the
preparation and review process for forecasts and budgets
• We obtained evidence that management have undertaken a
formal going concern assessment, including sensitivity analysis of
cash flow forecasts, clear consideration of significant external
factors and the potential liquidity impact of such factors on cash
balances including available facilities.
• We have analysed the financial strength of the business at the
year-end date and considered key trends in balance sheet
strength and business performance over the last three years.
• We tested the mechanical integrity of forecast model by checking
the accuracy and completeness of the model, including
challenging the appropriateness of estimates and assumptions
with reference to empirical data and external evidence.
• Based on our above assessment, we performed our own
sensitivity analysis in respect of the key assumptions
underpinning the forecasts.
• We performed stress-testing analysis on the core cash generating
units of the business to confirm cash inflow levels needed to
maintain minimal liquidity required to meet liabilities as they fall
due.
• We considered post year end performance of the business,
comparing this to budget as well as considering the development
of key liquidity ratios in the business.
• The group's banking facility documentation was reviewed to
ensure that any covenants in place have not been breached.
• We reviewed the adequacy and completeness of the disclosure
included within the financial statements in respect of going
concern.
• Confirmations gained that operation of the business, including
mine production and sale at Black Wattle Colliery have not been
disrupted in the period by any external or internal factors.
• We considered climate change-related risks facing the business
from a physical and transitional risk perspective, this included
careful consideration of the estimated remaining life of coal
mining as a viable commercial endeavour.
Based on the work we have performed, we have not identified any
material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the Group's
or the Parent Company's ability to continue as a going concern for a
period of at least twelve months from when the financial statements
are authorised for issue.
Our responsibilities and the responsibilities of the Directors with
respect to going concern are described in the relevant sections of
this report.
London & Associated Properties PLC 2024 41
GOVERNANCE Independent auditor’s report
OUR CONSIDERATION OF CLIMATE CHANGE
RELATED RISKS
The financial impacts on the Group of climate change and the
transition to a low-carbon economy (climate change) were
considered in our audit where they have the potential to directly or
indirectly impact key judgements and estimates within the financial
statements.
The Group continues to develop its assessment of the potential
impacts of climate change. Climate risks have the potential to
materially impact the key judgements and estimates within the
financial report. Our audit considered those risks that could be
material to the key judgements and estimates in the assessment of
the carrying value of non-current assets and closure and
rehabilitation provisions.
The key judgements and estimates included in the financial
statements incorporate actions and strategies, to the extent they
have been approved and can be reliably estimated in accordance
with the Group’s accounting policies. Accordingly, our key audit
matters address how we have assessed the Group’s climate-related
assumptions to the extent they impact each key audit matter.
OTHER INFORMATION
The other information comprises the information included in the
Annual Report other than the financial statements and our Auditor’s
report thereon. The Directors are responsible for the other
information. Our opinion on the financial statements does not cover
the other information and, except to the extent otherwise explicitly
stated in our report, we do not express any form of assurance
conclusion thereon. Our responsibility is to read the other
information and, in doing so, consider whether the other
information is materially inconsistent with the financial statements,
or our knowledge obtained in the course of the audit, or otherwise
appears to be materially misstated. If we identify such material
inconsistencies or apparent material misstatements, we are required
to determine whether this gives rise to a material misstatement in
the financial statements themselves. If, based on the work we have
performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact.
We have nothing to report in this regard.
OUR OPINION ON THE REMUNERATION
REPORT
Kreston Reeves has audited the Remuneration report set out on
pages 27 to 31 of the Annual Report for the financial year. The
Directors of the Company are responsible for the preparation and
presentation of the Remuneration report in accordance with the
Companies Act 2006. Kreston Reeves’ responsibility is to express an
opinion on the Remuneration report, based on our audit conducted
in accordance with International Accounting Standards. In Kreston
Reeves’ opinion, the Remuneration report of the Group for the
period complies with the requirements of the Companies Act 2006.
OPINIONS ON OTHER MATTERS PRESCRIBED
BY THE COMPANIES ACT 2006
In our opinion, based on the work undertaken in the course of the
audit:
• the information given in the strategic report and the directors’
report for the financial year for which the financial statements are
prepared is consistent with the financial statements; and
• the strategic report and the directors’ report have been prepared
in accordance with applicable legal requirements.
MATTERS ON WHICH WE ARE REQUIRED TO
REPORT BY EXCEPTION
In the light of our knowledge and understanding of the Group and
Parent Company and its environment obtained in the course of the
audit, we have not identified material misstatements in the strategic
report or the directors’ report.
We have nothing to report in respect of the following matters in
relation to which the Companies Act 2006 requires us to report to
you if, in our opinion:
• adequate accounting records have not been kept by the parent
company, or returns adequate for our audit have not been
received from branches not visited by us; or
• the parent company financial statements are not in agreement
with the accounting records and returns; or
• certain disclosures of directors’ remuneration specified by law are
not made; or
• we have not received all the information and explanations we
require for our audit
CORPORATE GOVERNANCE STATEMENT
We have reviewed the directors’ statement in relation to going
concern, longer-term viability and that part of the Corporate
Governance Statement relating to the Group’s and Parent
Company’s compliance with the provisions of the UK Corporate
Governance Code specified for our review by the UK Listing Rules.
Based on the work undertaken as part of our audit, we have
concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the financial
statements or our knowledge obtained during the audit:
• Directors' statement with regards the appropriateness of adopting
the going concern basis of accounting and any material
uncertainties identified set out on page 23;
• Directors’ explanation as to their assessment of the group’s
prospects, the period this assessment covers and why the period
is appropriate set out on page 8;
• Director’s statement on whether it has a reasonable expectation
that the group will be able to continue in operation and meets its
liabilities set out on page 8;
• Directors' statement on fair, balanced and understandable set out
on page 35;
• Board’s confirmation that it has carried out a robust assessment
of the emerging and principal risks set out on pages 9 to 10;
• Section of the annual report that describes the review of
effectiveness of risk management and internal control systems set
out on page 25;
• Section describing the work of the audit committee set out on
page 34.
42 London & Associated Properties PLC 2024
GOVERNANCE Independent auditor’s report
RESPONSIBILITIES OF DIRECTORS
As explained more fully in the directors’ responsibilities statement
(set out on page 35), the directors are responsible for the
preparation of the financial statements and for being satisfied that
they give a true and fair view, and for such internal control as the
directors determine is necessary to enable the preparation of
financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, the directors are responsible
for assessing the Group’s and Parent Company’s ability to continue
as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the
directors either intend to liquidate the Group or parent company or
to cease operations, or have no realistic alternative but to do so.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT
OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether
the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a
high level of assurance but is not a guarantee that an audit
conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial
statements.
Irregularities, including fraud, are instances of non-compliance with
laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements in
respect of irregularities, including fraud. The extent to which our
procedures are capable of detecting irregularities, including fraud, is
detailed below.
Capability of the audit in detecting irregularities,
including fraud
Based on our understanding of the group and industry, and through
discussion with the directors and other management (as required by
auditing standards), we identified that the principal risks of non-
compliance with laws and regulations with respect to acting as
landlords in the UK and the operation of a coal mine in South Africa,
as well as related to health and safety, anti-bribery and employment
law. We considered the extent to which non-compliance might have
a material effect on the financial statements. We also considered
those laws and regulations that have a direct impact on the
preparation of the financial statements such as the Companies Act
2006. We communicated identified laws and regulations throughout
our team and remained alert to any indications of non-compliance
throughout the audit. We evaluated management’s incentives and
opportunities for fraudulent manipulation of the financial
statements (including the risk of override of controls), and
determined that the principal risks were related to: posting
inappropriate journal entries to increase revenue or reduce
expenditure, management bias in accounting estimates and
judgemental areas of the financial statements such as the valuation
of investment properties. Audit procedures performed by the group
engagement team and component auditors included:
• We obtained an understanding of the legal and regulatory
frameworks that are applicable to the Group and determined that
the most significant are those that relate to the reporting
framework and the relevant tax compliance regulations in the
jurisdictions in which London & Associated Properties PLC
operates. In addition, we concluded that there are certain
significant laws and regulations that may have an effect on the
determination of the amounts and disclosures in the financial
statements, mainly relating to health and safety, employee
matters, bribery and corruption practices, environmental and
certain aspects of company legislation recognising the regulated
nature of the Group’s mining activities and its legal form.
• Detailed discussions were held with management to identify any
known or suspected instances of non- compliance with laws and
regulations.
• Identifying and assessing the design effectiveness of controls that
management has in place to prevent and detect fraud.
• With the involvement of an external auditor’s expert, we have
challenged assumptions and judgements made by management in
its significant accounting estimates, including assessing the
capabilities of the property valuers and discussing with the
valuers how their valuations were calculated and the data and
assumptions they have used to calculate these.
• Performing analytical procedures to identify any unusual or
unexpected relationships, including related party transactions,
that may indicate risks of material misstatement due to fraud.
• Confirmation of related parties with management, and review of
transactions throughout the period to identify any previously
undisclosed transactions with related parties outside the normal
course of business.
• Reading minutes of meetings of those charged with governance,
reviewing internal audit reports and reviewing correspondence
with relevant tax and regulatory authorities.
• Performing integrity testing to verify the legitimacy of banking
records obtained from management.
• Review of significant and unusual transactions and evaluation of
the underlying financial rationale supporting the transactions.
• Identifying and testing journal entries, in particular any manual
entries made at the year end for financial statement preparation.
• We ensured our global audit team (including Kreston Reeves and
BDO) has deep industry experience through working for many
years on relevant audits, including experience of mining and
investment property management. Our audit planning included
considering external market factors, for example geopolitical risk,
the potential impact of climate change, commodity price risk and
major trends in the industry.
Because of the inherent limitations of an audit, there is a risk that
we will not detect all irregularities, including those leading to a
material misstatement in the financial statements or non-compliance
with regulation. This risk increases the more that compliance with a
law or regulation is removed from the events and transactions
reflected in the financial statements, as we will be less likely to
become aware of instances of non-compliance.
As part of an audit in accordance with ISAs (UK), we exercise
professional judgment and maintain professional scepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the
financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
London & Associated Properties PLC 2024 43
GOVERNANCE Independent auditor’s report
• Obtain an understanding of internal control relevant to the audit
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures
made by the directors.
• Conclude on the appropriateness of the directors’ use of the
going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related
to events or conditions that may cast significant doubt on the
Group’s or the parent company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related
disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Group or the
parent company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the
financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the
financial information of the entities or business activities within
the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and
performance of the Group audit. We remain solely responsible for
our audit opinion.
We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We provide those charged with governance with a statement that
we have complied with relevant ethical requirements regarding
independence and communicate with them all relationships and
other matters that may reasonably be thought to bear our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the financial statements of the current
period and are therefore the key audit matters. We describe these
matters in our auditor's report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public
interest benefits of such communication.
OTHER MATTERS WHICH WE ARE REQUIRED
TO ADDRESS
We were reappointed by the Audit Committee in the period to audit
the financial statements. Our total uninterrupted period of
engagement is 4 periods, covering the financial year ended 31
December 2024.
The non-audit services prohibited by the Financial Reporting
Council’s Ethical Standard were not provided to the Group or the
Parent Company and we remain independent of the Group and the
Parent Company in conducting our audit.
Our audit opinion is consistent with the additional report to the
Audit Committee.
USE OF OUR REPORT
This report is made solely to the company’s members, as a body, in
accordance with Chapter 3 of Part 16 of the Companies Act 2006.
Our audit work has been undertaken so that we might state to the
company’s members those matters we are required to state to them
in an auditor report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to
anyone other than the company and the company’s members as a
body, for our audit work, for this report, or for the opinions we have
formed.
Anne Dwyer BSc(Hons) FCA (Senior Statutory Auditor)
For and on behalf of
Kreston Reeves LLP
Chartered Accountants
Statutory Auditor
London
Date: 29 April 2025
44 London & Associated Properties PLC 2024
NOTES
2024
£'000
2023
£'000
Group revenue
1
54,917
53,183
Operating costs
1
(49,624)
(52,017)
Operating profit
5,293
1,166
Finance income
4
202
332
Finance expenses
4
(2,971)
(3,646)
Result before revaluation and other movements
2,524
(2,148)
Non–cash changes in valuation of assets and liabilities and other movements
Exchange losses
(23)
(158)
Increase/(decrease) in value of investment properties
9
1,800
(5)
Profit on disposal of fixed assets
–
4
Gain on investments held at fair value (Bisichi)
68
759
Gain/(loss) on disposal of subsidiary
6
50
(1,930)
Decrease in value of other investments
–
(6)
Profit/(loss) for the year before taxation
2
4,419
(3,484)
Income tax charge
5
(1,615)
(307)
Profit/(loss) for the year
2,804
(3,791)
Attributable to:
Equity holders of the Company
(373)
(3,861)
Non-controlling interest
25
3,177
70
Profit/(loss) for the year
2,804
(3,791)
Earnings per share
Loss per equity share - basic and diluted
8
(0.44)p
(4.52)p
Consolidated statement of comprehensive income
for the year ended 31 December 2024
2024
£'000
2023
£'000
Profit/(loss) for the year
2,804
(3,791)
Other comprehensive expense:
Items that may be subsequently recycled to the income statement:
Exchange differences on translation of Bisichi PLC foreign operations
(122)
(675)
Total comprehensive income/(expense) for the year net of tax
2,682
(4,466)
Attributable to:
Equity shareholders
(405)
(4,056)
Non–controlling interest
3,087
(410)
Total comprehensive income/(expense) for the year net of tax
2,682
(4,466)
Total comprehensive expense per equity share - basic and diluted
(0.47)p
(4.75)p
FINANCIAL
STATEMENTS
Consolidated income statement
for the year ended 31 December 2024
London & Associated Properties PLC 2024 45
financial statements
Consolidated balance sheet
at 31 December 2024
NOTES
2024
£'000
2023
£'000
Non–current assets
Market value of properties attributable to Group
9
37,405
35,060
Present value of head leases
9
1,586
1,589
Property
38,991
36,649
Mining reserves, property, plant and equipment
10
23,603
19,164
Other investments at fair value through profit and loss (“FVPL”)
15
14,339
14,258
Deferred tax
23
–
432
76,933
70,503
Current assets
Inventories - Property
13
8,996
8,889
Inventories - Mining
14
3,377
2,579
Assets held for sale
11
–
545
Trade and other receivables
16
7,202
7,413
Investments in listed securities held at FVPL
17
628
734
Cash and cash equivalents
2,926
6,978
23,129
27,138
Total assets
100,062
97,641
Current liabilities
Trade and other payables
18
(15,748)
(14,463)
Borrowings
19
(7,163)
(12,792)
Lease liabilities
20
(439)
(394)
Current tax liabilities
(3,801)
(5,191)
(27,151)
(32,840)
Non–current liabilities
Borrowings
19
(17,929)
(13,291)
Lease liabilities
20
(2,134)
(1,582)
Provisions
21
(1,590)
(1,615)
Deferred tax liabilities
23
(699)
–
(22,352)
(16,488)
Total liabilities
(49,503)
(49,328)
Net assets
50,559
48,313
Equity attributable to the owners of the parent
Share capital
24
8,554
8,554
Share premium account
4,866
4,866
Translation reserve (Bisichi PLC)
(1,290)
(1,258)
Capital redemption reserve
47
47
Retained earnings (excluding treasury shares)
16,052
16,425
Treasury shares
24
(144)
(144)
Retained earnings
15,908
16,281
Total equity attributable to equity shareholders
28,085
28,490
Non–controlling interest
25
22,474
19,823
Total equity
50,559
48,313
Net assets per share attributable to equity shareholders
8
32.91p
33.38p
Diluted net assets per share
8
32.91p
33.38p
These financial statements were approved by the board of directors and authorised for issue on 29 April 2025 and signed on its behalf by:
John Heller
Jonathan Mintz
Company Registration No. 341829
Director
Director
46 London & Associated Properties PLC 2024
financial statements
financial statements
Consolidated statement of changes in shareholders’ equity
for the year ended 31 December 2024
SHARE
CAPITAL
£’000
SHARE
PREMIUM
£’000
TRANSLA-
TION
RESERVES
£’000
CAPITAL
REDEMP-
TION
RESERVE
£’000
TREASURY
SHARES
£’000
RETAINED
EARNINGS
EXCLUDING
TREASURY
SHARES
£’000
TOTAL
EXCLUDING
NON–
CONTROLLING
INTERESTS
£’000
NON–
CON-
TROLLING
INTERESTS
£’000
TOTAL
EQUITY
£’000
Balance at 1 January 2023
8,554
4,866
(1,063)
47
(144)
20,286
32,546
21,169 53,715
(Loss)/profit for year
–
–
–
–
–
(3,861)
(3,861)
70
(3,791)
Other comprehensive expense:
Currency translation
–
–
(195)
–
–
–
(195)
(480)
(675)
Transactions with owners:
Dividends – non–controlling interests
–
–
–
–
–
–
–
(936)
(936)
Balance at 31 December 2023
8,554
4,866
(1,258)
47
(144)
16,425
28,490
19,823 48,313
Profit for year
–
–
–
–
–
(373)
(373)
3,177
2,804
Other comprehensive expense:
Currency translation
–
–
(32)
–
–
–
(32)
(90)
(122)
Transactions with owners:
Dividends – non–controlling interests
–
–
–
–
–
–
–
(436)
(436)
Balance at 31 December 2024
8,554
4,866
(1,290)
47
(144)
16,052
28,085
22,474 50,559
London & Associated Properties PLC 2024 47
financial statements
financial statements
Consolidated cash flow statement
for the year ended 31 December 2024
NOTES
2024
£’000
2023
£’000
Operating activities
Profit/(loss) for the year before taxation
4,419
(3,484)
Finance income
4
(202)
(332)
Finance expense
4
2,971
3,646
(Increase)/decrease in value of investment properties
9
(1,800)
5
Gain on investments held at FVPL (Bisichi)
(68)
(759)
(Profit)/loss on disposal of subsidiary
(50)
1,930
Decrease in value of other investments
–
6
Depreciation
10
4,311
1,761
Impairment of inventory - property
900
-
Profit on disposal of non-current assets
–
(4)
Development expenditure on inventories - property
13
(1,007)
(777)
Exchange adjustments
23
158
Change in inventories - mining
(843)
2,046
Change in receivables
(70)
(933)
Change in payables
1,769
429
Cash generated from operations
10,353
3,692
Income tax (paid) / refunded
(1,789)
137
Cash inflows from operating activities
8,564
3,829
Investing activities
Disposal of subsidiary
–
(148)
Acquisition of mining reserves, plant and equipment
(8,132)
(5,952)
Sale of plant and equipment
–
21
Disposal of other investments
5,372
432
Acquisition of other investments
(5,279)
(1,189)
Interest received
202
332
Cash outflows from investing activities
(7,837)
(6,504)
Financing activities
Interest paid
(2,804)
(3,557)
Interest obligation under finance leases
(178)
(185)
Repayment of lease liability
(234)
(251)
Receipt of bank loan - Bisichi PLC
3,845
99
Repayment of bank loan - Bisichi PLC
(3,995)
(624)
Repayment of bank loan - Dragon Retail Properties Ltd
(215)
(193)
Receipt of bank loan - London & Associated Properties PLC
496
–
Repayment of bank loan - London & Associated Properties PLC
(7)
(95)
Equity dividends paid - Bisichi PLC
(436)
(1,372)
Cash outflows from financing activities
(3,528)
(6,178)
Net decrease in cash and cash equivalents
(2,801)
(8,853)
Cash and cash equivalents at beginning of year
3,444
12,157
Exchange adjustment
25
140
Cash and cash equivalents at end of year
668
3,444
The cash flows above relate to continuing operations.
CASH AND CASH EQUIVALENTS
For the purpose of the cash flow statement, cash and cash equivalents comprise the following balance sheet amounts:
2024
£’000
2023
£’000
Cash and cash equivalents (before bank overdrafts)
2,926
6,978
Bank overdrafts
19
(2,258)
(3,534)
Cash and cash equivalents at end of year
668
3,444
£195,000 of cash deposits at 31 December 2024 were charged as security to bank loans (2023: £195,000).
48 London & Associated Properties PLC 2024
financial statements
financial statements
Group accounting policies
The following are the principal Group accounting policies:
BASIS OF ACCOUNTING
The Group financial statements are prepared in accordance with UK
adopted international accounting standards and the requirements of
the Companies Act 2006 and as required under the Disclosure
Guidance and Transparency Rules of the Financial Conduct
Authority the group financial statements are prepared in accordance
with UK adopted international financial reporting standards.
The directors have elected under company law to prepare the
company financial statements in accordance with United Kingdom
Generally Accepted Accounting Practice (United Kingdom
Accounting Standards and applicable law) including FRS 101
Reduced Disclosure Framework and these are presented in note 31.
The financial statements are prepared under the historical cost
convention, except for the revaluation of freehold and leasehold
properties and financial assets at fair value through profit and loss
including interest rate derivatives.
The Group financial statements are presented in Pounds Sterling
and all values are rounded to the nearest thousand pounds (£’000)
except when otherwise stated.
The functional currency for each entity in the Group is the currency
of the country in which the entity has been incorporated. Details of
the country in which each entity has been incorporated can be
found in note 12.
The exchange rates used in the accounts were as follows:
£1 STERLING: RAND
£1 STERLING: DOLLAR
2024
2023
2024
2023
Year-end rate
23.6446
23.3014
1.2521
1.2732
Annual average
23.4159
22.9364
1.2780
1.2389
London & Associated Properties PLC (“LAP”), the parent company, is
a public limited company incorporated and domiciled in England and
quoted on the London Stock Exchange. The Company registration
number is 341829. LAP and its subsidiaries (“the Group”) consist of
LAP and all its subsidiary undertakings, including Bisichi PLC
(“Bisichi”) and Dragon Retail Properties Limited (“Dragon”). The
Group without Bisichi and Dragon is referred to as LAP Group.
GOING CONCERN
In reviewing going concern it is necessary to consider separately the
position of LAP Group and Bisichi. Although both are consolidated
into group accounts (as required by IFRS 10), they are managed
independently and in the unlikely event that Bisichi was unable to
continue trading this would not affect the ability of LAP Group to
continue operating as a going concern. The same would be true for
Bisichi in reverse.
The directors have reviewed the cash flow forecasts of the LAP
Group and the underlying assumptions on which they are based for
the 15 months from the date of signing. The LAP Group’s business
activities, together with the factors likely to affect its future
development, are set out in the Chairman and Chief Executive’s
Statement and Financial Review. In addition, note 22 to the financial
statements sets out the Group’s objectives, policies and processes
for managing its capital; its financial risk management objectives;
details of its financial instruments and hedging activities; and its
exposure to credit risk and liquidity risk.
The directors have reviewed the debt covenants on existing loans
and the effects that a wide range of property valuation movements
would have on these and the Group’s ability to mitigate these
effects.
Geo-political events in Ukraine and the Middle East are currently
having an impact on global energy prices. The imposition of tariffs
by the United States is not expected to have any significant direct
effect on our operations. Although the outcome of the events in
these regions is uncertain, the Directors at present do not foresee
the events having a significant negative effect on the Group’s UK
and South African operations.
Debt Refinancing
LAP’s £13.6 million 5-year term loan with QIB (UK) PLC, at a margin
of 3.95% above the BoE base rate, expires in 2027. The loan is
covenant compliant and the Directors do not consider that this
presents a going concern risk to the Group. The loan is repayable in
full at any time, with no exit fees. From May 2025, the loan margin
will decrease to 2.95%
Dragon has a £0.74 million Santander term loan (at 3.5% + bank
base rate) that expires on 18 July 2027. The loan is covenant
compliant and the Directors do not consider that this presents a
going concern risk to the Group. The loan is repayable in full at any
time, with no exit fees.
Broadway Regen has a £4.9 million 11.0% development loan which
expired in January 2025. This is a residential development which is
expected to have positive cash returns. Options are currently being
explored before any commitment is made to start the construction
phase. Cash flow forecasts on which going concern judgements are
made include a range of outcomes for this development and the
Directors do not consider that this presents a going concern risk to
the Group. The lender continues to support our ongoing efforts to
develop this property and we expect the loan to be extended to
grant sufficient time to enter into a construction contract and
refinance the facility.
The directors continually monitor the property lending market and
will refinance these loans to reduce the interest burden on the
Group, provide future funding certainty and manage financial risk.
Bisichi PLC
The directors note the consideration of going concern by the Bisichi
board, but also note that any failure of Bisichi would not itself
impact on the going concern status of the LAP group for the
reasons set out on page 8 of the financial statements.
The directors believe that the LAP Group has adequate resources to
continue in operational existence for the foreseeable future and
that the LAP Group is well placed to manage its business risks. Thus
they continue to adopt the going concern basis of accounting in
preparing the annual financial statements.
The Bisichi directors continue to adopt the going concern basis of
accounting in preparing the Bisichi annual financial statements.
London & Associated Properties PLC 2024 49
financial statements Group accounting policies
INTERNATIONAL FINANCIAL REPORTING
STANDARDS (IFRS)
The Group has adopted all of the new and revised Standards and
Interpretations issued by the International Accounting Standards
Board (“IASB”) that are relevant to its operations and effective for
accounting periods beginning 1 January 2024.
These include Amendments to IAS 1 for 'Classification of liabilities
as current or non-current' and 'Non-current liabilitiues with
covenants'; Amendments to IFRS 16 - 'Lease liability in a sale and
leaseback'; and Amendments to IAS 7 and IFRS 7 - 'Supplier finance
arrangements'. These have had no significant impact on the financial
statements of the Group.
The Group has not adopted any Standards or Interpretations in
advance of the required implementation dates.
The following standards, amendments and interpretations were in
issue at the date of approval of these financial statements but were
not yet effective for the current accounting period and have not
been adopted early. Based on the Group’s current circumstances,
the Directors do not anticipate that their adoption in future periods
will have a material impact on the financial statements of the Group.
• Amendments to IAS 21 The Effects of Changes in Foreign
Exchange Rates: Lack of Exchangeability
• Amendments to IFRS 9 and IFRS 7, Classification and
Measurement of Financial Instruments
• IFRS 19, Subsidiaries without Public Accountability: Disclosures
• IFRS 18, Presentation and disclosure in financial statements
IFRS 18 will replace IAS 1 Presentation of financial statements and
is effective for annual periods beginning on or after 1 January 2027.
IFRS 18 will not impact the recognition or measurement of items in
the financial statements, but its impact on presentation and
disclosure is expected to be material. Management is currently
assessing the detailed implications of applying the new standard on
the Group’s consolidated financial statements.
We are committed to improving disclosure and transparency and
will continue to work with our different stakeholders to ensure they
understand the detail of these accounting changes. We continue to
remain committed to a robust financial policy.
KEY JUDGEMENTS AND ESTIMATES
The preparation of the financial statements requires management to
make assumptions and estimates that may affect the reported amounts
of assets and liabilities and the reported income and expenses, further
details of which are set out below. Although management believes that
the assumptions and estimates used are reasonable, the actual results
may differ from those estimates. Further details of the estimates and
judgements which may have a material impact on next year’s financial
statements are contained in the Directors’ Report.
PROPERTY OPERATIONS
Fair value measurements of investment properties
An assessment of the fair value of these assets is undertaken
annually. The fair value measurements are estimated based on the
amounts for which the assets and liabilities could be exchanged
between market participants. To the extent possible, the
assumptions and inputs used take into account externally verifiable
inputs. However, such information is by its nature subject to
uncertainty and is discussed further in the Directors’ Report and
shown in note 9.
Inventories - Property
When the Group begins to redevelop an existing investment
property with a view to sale, the property is transferred to inventory
and held as a current asset. The property is re-measured to fair
value as at the date of the transfer with any gain or loss being taken
to the income statement. The re-measured amount becomes the
deemed cost at which the property is then carried in trading
properties plus any costs for asset management initiatives or
development in preparation for sale and subject to any provision
required to reduce cost to net realisable value.
In assessing the net realisable value of a property development, the
directors make significant estimates and judgements regarding, inter
alia, forecast sales and costs per square foot, gross internal area,
affordable housing allocations and appropriate rates of financing.
The degree to which these variables can be accurately forecast will
depend on the stage of development of the particular project and
the impact of changes in these assumptions to the net realisable
value could be material. Further detail is included in note 13.
The development property in Ealing has been impaired by £900,000
in the year following an assessment of its net realisable value at 31
December 2024.
Trade Debtors
An estimate of lifetime expected credit losses under IFRS 9 using
the simplified approach has been made by the Directors considering
historic trade debtor recoveries, specific knowledge of individual
debtors and forward looking macro-economic factors. Further detail
is included in note 22.
MINING OPERATIONS
Life of mine and reserves
The directors of Bisichi consider their judgements and estimates
surrounding the life of the mine and its reserves to have significant
effect on the amounts recognised in the financial statements and to
be an area where the financial statements are subject to significant
estimation uncertainty. The life of mine remaining is currently
estimated at 5 years. This life of mine is based on Bisichi’s existing
coal reserves including reserves acquired but subject to regulatory
approval. Bisichi actively seeks and evaluates new opportunities to
extend the life of its existing mining and processing operations in
South Africa. The life of mine excludes future coal purchases and
coal reserve acquisitions. Bisichi’s estimates of proven and probable
reserves are prepared utilising the South African code for the
reporting of exploration results, mineral resources and mineral
reserves (the SAMREC code) and are subject to assessment by an
independent Competent Person experienced in the field of coal
geology and specifically opencast and pillar coal extraction.
Estimates of coal reserves impact assessments of the carrying value
of property, plant and equipment, depreciation calculations and
rehabilitation and decommissioning provisions. There are numerous
uncertainties inherent in estimating coal reserves and changes to
these assumptions may result in restatement of reserves. These
assumptions include geotechnical factors as well as economic
factors such as commodity prices, production costs, coal demand
outlook and yield.
DEPRECIATION, AMORTISATION OF MINERAL
RIGHTS, MINING DEVELOPMENT COSTS AND
PLANT & EQUIPMENT
The annual depreciation/amortisation charge is dependent on
estimates, including coal reserves and the related life of the mine,
expected development expenditure for probable reserves, the
allocation of certain assets to relevant ore reserves and estimates of
residual values of the processing plant. The charge can fluctuate
when there are significant changes in any of the factors or
assumptions used, such as estimating mineral reserves which in turn
affects the life of mine or the expected life of reserves. Estimates of
proven and probable reserves are prepared by an independent
Competent Person. Assessments of depreciation/amortisation rates
against the estimated reserve base are performed regularly. Details
of the depreciation/amortisation charge can be found in note 10.
50 London & Associated Properties PLC 2024
financial statements Group accounting policies
PROVISION FOR MINING REHABILITATION
INCLUDING RESTORATION AND DE-
COMMISSIONING COSTS
A provision for future rehabilitation including restoration and
decommissioning costs requires estimates and assumptions to be
made around the relevant regulatory framework, the timing, extent
and costs of the rehabilitation activities and of the risk free rates
used to determine the present value of the future cash outflows.
The provisions, including the estimates and assumptions contained
therein, are reviewed regularly by management. Bisichi engages an
independent expert to assess the cost of restoration and
decommissioning annually as part of management’s assessment of
the provision. Details of the provision for mining rehabilitation can
be found in note 21.
MINING IMPAIRMENT
Property, plant and equipment representing Bisichi’s mining assets
in South Africa are reviewed for impairment at each reporting date.
The impairment test is performed using the approved Life of Mine
plan and those future cash flow estimates are discounted using
asset specific discount rates and are based on expectations about
future operations. The impairment test requires estimates about
production and sales volumes, commodity prices, proven and
probable reserves (as assessed by the Competent Person), operating
costs and capital expenditures necessary to extract reserves in the
approved Life of Mine plan. Changes in such estimates could impact
recoverable values of these assets. Details of the carrying value of
property, plant and equipment can be found in note 10.
The impairment test indicated significant headroom as at 31
December 2024 and therefore no impairment is considered
appropriate. The key assumptions include: coal prices, including
domestic coal prices based on recent pricing and assessment of
market forecasts for export coal; production based on proven and
probable reserves assessed by the independent Competent Person
and yields associated with mining areas based on assessments by
the Competent Person and empirical data. An 8% reduction in
average forecast coal prices or a 5% reduction in yield would give
rise to a breakeven scenario. However, the Bisichi directors consider
the forecasted yield levels and pricing to be appropriate and
supportable best estimates.
BASIS OF CONSOLIDATION
The Group accounts incorporate the accounts of LAP and all its
subsidiary undertakings, together with the Group’s share of the
results and net assets of its joint ventures.
Non–controlling interests in subsidiaries are presented separately
from the equity attributable to equity owners of the parent
company. When changes in ownership in a subsidiary do not result
in a loss of control, the non–controlling shareholders’ interests are
initially measured at the non–controlling interests’ proportionate
share of the subsidiaries’ net assets. Subsequent to this, the carrying
amount of non–controlling interests is the amount of those interests
at initial recognition plus the non–controlling interests’ share of
subsequent changes in equity. Total comprehensive income is
attributed to non–controlling interests even if this results in the
non–controlling interests having a deficit balance.
SUBSIDIARIES
Subsidiaries are entities controlled by the Group. The Group controls
an entity when it is exposed to, or has rights to, variable returns from
its involvement with the entity and has the ability to affect those
returns through its power over the entity. Subsidiaries acquired during
the year are consolidated using the acquisition method. Their results
are incorporated from the date that control passes.
All intra Group transactions, balances, income and expenses are
eliminated on consolidation. Details of the Group’s subsidiary
companies are set out in note 12.
The directors are required to consider the implications of IFRS 10
on the LAP investment in Bisichi PLC (“Bisichi”). Related parties also
have shareholdings in Bisichi. When combined with the 41.6% held by
LAP and, taking account of the wide disposition of other shareholders,
there is potential for LAP and these related parties to exercise voting
control over Bisichi. IFRS 10 makes it clear that possible voting
control is of more significance than actual management control.
For this reason the directors have concluded that there is a requirement
to consolidate Bisichi with LAP. While, in theory, they could achieve
control, in practice they do not get involved in the day to day operations
of Bisichi. The directors have presented consolidated accounts using
the published accounts of Bisichi but it is important to note that any
figures, risks and assumptions attributable to that company are the
responsibility of the Bisichi Board of directors.
As a result of treating Bisichi as a subsidiary, Dragon Retail Properties
Limited and West Ealing Projects Limited are also subsidiaries for
accounting purposes, as LAP and Bisichi’s combined ownership in
these entities exceeds 50%.
As a result of Orchard Square Limited’s term loan being placed in
default in August 2023, the Group no longer has control of this
entity and as required by IFRS10 it no longer presents the results of
Orchard Square Limited. The results of Orchard Square Limited are
included until July 2023 at which point control was lost and a
disposal of the company is shown. The assets and liabilities of
Orchard Square Limited are not shown in the Balance Sheet at the
end of the previous or current year. Further disclosure is made
within note 6. In 2024 the Orchard Square loan was restated with
the lender and is now compliant, with all rights to net income and
sale proceeds generated by the asset vesting to the lender.
Following an unsuccessful planning application and subsequent appeal
by Development Physics Limited the JV partners decided to cease
development activities and allow the options over parcels of land to
lapse. The company has subsequently been closed. Provisions for
the carrying value of the development were made in previous years
and the financial effect of the development in 2024, as shown in
note 6, is limited.
GOODWILL
Goodwill arising on acquisition is recognised as an intangible asset
and initially measured at cost, being the excess of the cost of the
acquired entity over the Group’s interest in the fair value of the assets
and liabilities acquired. Goodwill is carried at cost less accumulated
impairment losses. Goodwill arising from the difference in the
calculation of deferred tax for accounting purposes and fair value in
negotiations is judged not to be an asset and is accordingly impaired
on completion of the relevant acquisition.
PROPERTY REVENUE
The Group’s revenue from contracts with customers, as defined
under IFRS 15, includes sales of coal and property income from
rents, service charge and management fees.
Rental income
Rental income arises from properties where leases have granted
tenants a right of occupation and use of the properties. Rental
income and lease incentives are recognised in accordance with IFRS
16 Leases. Rental income from investment property is recognised as
revenue on a straight-line basis over the lease term. Lease incentives
and costs associated with entering into tenant leases are amortised
over the lease term. Rent reviews are recognised when such reviews
have been agreed with tenants.
London & Associated Properties PLC 2024 51
financial statements Group accounting policies
Changes in the scope or the consideration for a lease, that was not
part of the original terms and conditions, which might arise as a
result of lease concessions, are accounted as a lease modification.
Lease modifications are accounted for as a new lease from the
effective date of the modification, considering any prepaid or
accrued lease payments relating to the original lease as part of the
lease payments for the new lease.
Service charge income
This includes income in relation to service charges, directly
recoverable expenditure and management fees, which is recognised
in accordance with IFRS 15. Revenue from providing services is
recognised in the accounting period in which the services are
rendered. Revenue from services is recognised based on the actual
service provided to the end of the reporting period as a proportion
of the total services to be provided and recognised over time. The
Group generally acts as the principal in service charge transactions
as it directly controls the delivery of the services at the point they
are provided to the tenant. Where the Group acts as a principal,
service charge income is presented gross within revenue and service
charge expense presented gross within costs.
Reverse surrender premiums
Payments received from tenants to surrender their lease obligations
are recognised immediately in the income statement.
Dilapidations
Dilapidations monies received from tenants in respect of their lease
obligations are recognised immediately in the income statement.
Other revenue
Revenue in respect of listed investments held for trading represents
investment dividends received and profit or loss recognised on
realisation. Dividends are recognised in the income statement when
the right to receive the payment is established.
PROPERTY OPERATING EXPENSES
Operating expenses are expensed as incurred and any property
operating expenditure not recovered from tenants through service
charges is charged to the income statement.
EMPLOYEE BENEFITS
Share based remuneration
The Group operates a long–term incentive plan and two share
option schemes. The fair value of the conditional awards on shares
granted under the long–term incentive plan and the options granted
under the share option scheme is determined at the date of grant.
This fair value is then expensed on a straight–line basis over the
vesting period, based on an estimate of the number of shares that
will eventually vest. At each reporting date, the fair value of the
non–market based performance criteria of the long–term incentive
plan is recalculated and the expense is revised. In respect of the
share option scheme, the fair value of options granted is calculated
using the binomial method.
PENSIONS
The Company operates a defined contribution pension scheme. The
contributions payable to the scheme are expensed in the period to
which they relate.
FOREIGN CURRENCIES
Monetary assets and liabilities are translated at year end exchange
rates and the resulting exchange rate differences are included in the
consolidated income statement within the results of operating
activities if arising from trading activities, including inter-company
trading balances and within finance cost / income if arising from
financing.
For consolidation purposes, income and expense items are included
in the consolidated income statement at average rates, and assets
and liabilities are translated at year end exchange rates. Translation
differences arising on consolidation are recognised in other
comprehensive income. Foreign exchange differences on
intercompany loans are recorded in other comprehensive income
when the loans are not considered trading balances and are not
expected to be repaid in the foreseeable future. Where foreign
operations are sold or closed, the cumulative exchange differences
attributable to that foreign operation are recognised in the
consolidated income statement when the gain or loss on disposal is
recognised.
Transactions in foreign currencies are translated at the exchange
rate ruling on transaction date.
FINANCIAL INSTRUMENTS
Financial assets and financial liabilities are recognised in the Group’s
consolidated statement of financial position when the group
becomes a party to the contractual provisions of the instrument.
Financial assets
Financial assets are classified as either financial assets at amortised
cost, at fair value through other comprehensive income (“FVTOCI”)
or at fair value through profit or loss (“FVPL”) depending upon the
business model for managing the financial assets and the nature of
the contractual cash flow characteristics of the financial asset.
A loss allowance for expected credit losses is determined for all
financial assets, other than those at FVPL, at the end of each
reporting period. The Group applies a simplified approach to
measure the credit loss allowance for trade receivables using the
lifetime expected credit loss provision. The lifetime expected credit
loss is evaluated for each trade receivable taking into account
payment history, payments made subsequent to year end and prior
to reporting, past default experience and the impact of any other
relevant and current observable data. The group applies a general
approach on all other receivables classified as financial assets. The
general approach recognises lifetime expected credit losses when
there has been a significant increase in credit risk since initial
recognition.
The Group no longer recognises a financial asset when the
contractual rights to the cash flows from the asset expire, or when it
transfers the financial asset and substantially all the risks and
rewards of ownership of the asset to another party. The Group does
not recognise financial liabilities when the Group’s obligations are
discharged, cancelled, or have expired.
Investments
Current financial asset investments and other investments classified
as non-current (“The investments”) comprise shares in listed
companies. The investments are measured at fair value. Any
changes in fair value are recognised in the consolidated income
statement and accumulated in retained earnings.
Trade and other receivables
Trade receivables are recorded at amortised cost. As the interest
that would be recognised from discounting future cash payments
over the short payment period is not considered to be material,
trade receivables which do not carry any interest are stated at their
nominal value as reduced by credit loss allowances for estimated
recoverable amounts.
Trade and other payables
Trade and other payables are non-interest bearing and are stated at
their nominal value, as the interest that would be recognised from
discounting future cash payments over the short payment period is
not considered to be material.
52 London & Associated Properties PLC 2024
financial statements Group accounting policies
Bank loans and overdrafts
Bank loans and overdrafts are included as financial liabilities on the
Group balance sheet net of the unamortised costs of issue. The cost
of issue is recognised in the consolidated income statement over
the life of the bank loan. Interest payable on those facilities is
expensed as a finance cost in the period to which it relates.
Leases
At inception, the Group assesses whether a contract is or contains a
lease. This assessment involves the exercise of judgement about
whether the Group obtains substantially all the economic benefits
from the use of that asset, and whether the Group has the right to
direct the use of the asset. The Group recognises a right-of-use
(“ROU”) asset and the lease liability at the commencement date of
the lease.
Lease liabilities include the present value of payments which
generally include fixed payments and variable payments that depend
on an index (such as an inflation index). Each lease payment is
allocated between the liability and finance cost. The lease payments
are discounted using the interest rate implicit in the lease if that rate
can be readily determined or if not, the incremental borrowing rate
is used. The finance cost is charged to profit or loss over the lease
period so as to produce a constant rate of interest on the remaining
balance of the liability for each period. In the cashflow statement
the principal and interest portions of the lease payments are
classified within financing activities.
The ROU asset is measured at a cost based on the amount of the
initial measurement of the lease liability, plus initial direct costs and
the cost of obligations to refurbish the asset, less any incentives
received. The ROU asset (other than the ROU assets that relate to
land or property that meets the definition of investment property
under IAS 40) is depreciated over the shorter of the lease term or
the useful life of the underlying asset. The ROU asset is subject to
testing for impairment if there is an indicator of impairment. ROU
assets are included in the heading Property, plant and equipment,
and the lease liability is included in the headings current and
non-current lease labilities on the balance sheet.
Lease liabilities arise for those investment properties held under a
leasehold interest and recorded as investment property. The liability
is calculated as the present value of the minimum lease payments,
reducing in subsequent reporting periods by the apportionment of
payments to the lessor. Lease payments are allocated between the
liability and finance charges to achieve a constant financing rate.
Contingent rents payable, such as rent reviews or those related to
rental income, are charged as an expense in the period in which
they are incurred.
The Group has elected not to recognise ROU assets and liabilities
for leases where the total lease term is less than or equal to 12
months, or for low value leases under £20,000. The payments for
such leases are recognised in the Income Statement on a straight-
line basis over the lease term.
Interest rate derivatives
The Group uses derivative financial instruments to hedge the
interest rate risk associated with the financing of the Group’s
business where appropriate. No trading in such financial instruments
is undertaken. At each reporting date, these interest rate derivatives
are recognised at their fair value to the business, being the Net
Present Value of the difference between the hedged rate of interest
and the market rate of interest for the remaining period of the
hedge.
Ordinary shares
Shares are classified as equity when there is no obligation to
transfer cash or other assets. Incremental costs directly attributable
to the issue of new shares are shown in equity as a deduction, net
of tax, from the proceeds.
Treasury shares
When the Group’s own equity instruments are repurchased,
consideration paid is deducted from equity as treasury shares until
they are cancelled. When such shares are subsequently sold or
reissued, any consideration received is included in equity.
INVESTMENT PROPERTIES
Valuation
Investment properties are those that are held either to earn rental
income or for capital appreciation or both, including those that are
undergoing redevelopment for future use as an investment
property. They are reported on the Group balance sheet at fair
value, being the amount for which an investment property could be
exchanged between knowledgeable and willing parties in an arm’s
length transaction. The directors’ property valuation is at fair value.
The external valuation of properties is undertaken by independent
valuers who hold recognised and relevant professional qualifications
and have recent experience in the locations and categories of
properties being valued. Surpluses or deficits resulting from changes
in the fair value of investment properties are reported in the Group
income statement in the period in which they arise.
The Group owns a number of properties on long term and short-
term leaseholds. These are leased out to tenants under operating
leases, are classified as investment properties or development
properties as appropriate and included in the balance sheet at fair
value. The obligation to the freeholder or superior leaseholder for
the buildings element of the leasehold is included in the balance
sheet at the present value of the minimum lease payments at
inception.
Capital expenditure
Investment properties are measured initially at cost, including
related transaction costs. Additional expenditure of a capital nature,
directly attributable to the redevelopment or refurbishment of an
investment property held for future use as an investment property,
up to the point of it being completed for its intended use, is
capitalised in the carrying value of that property. Where there is a
change of use, such as commencement of development with a view
to sale, the property is transferred to inventory at deemed cost,
which is its fair value on the date of the change in use. Capitalised
interest is calculated with reference to the actual rate payable on
borrowings for development purposes, or for that part of the
development costs financed out of borrowings the capitalised
interest is calculated on the basis of the average rate of interest paid
on the relevant debt outstanding.
Disposal
The disposal of investment properties is recorded on completion of
the contract. On disposal, any gain or loss is calculated as the
difference between the net disposal proceeds and the valuation at
the last year end plus subsequent capitalised expenditure in the
period.
Depreciation and amortisation
In applying the fair value model to the measurement of investment
properties, depreciation and amortisation are not provided.
OTHER ASSETS AND DEPRECIATION
The cost, less estimated residual value, of other property, plant and
equipment is written off on a straight–line basis over the asset’s
expected useful life. Residual values and useful lives are reviewed,
and adjusted if appropriate, at each balance sheet date. Changes to
the estimated residual values or useful lives are accounted for
prospectively. The depreciation rates generally applied are:
Motor vehicles
25–33 per cent per annum
Office equipment
10–33 per cent per annum
London & Associated Properties PLC 2024 53
financial statements Group accounting policies
ASSETS HELD FOR SALE
Non-current assets are classified as held-for-sale if it is highly
probable that they will be recovered primarily through sale rather
than through continuing use. Such assets are generally measured at
the lower of their carrying amount and fair value less costs of sale.
Impairment losses on initial classification as assets held-for-sale and
subsequent gains and losses on remeasurement are recognised in
profit or loss. Once classified as held-for-sale, intangible assets and
property, plant and equipment are no longer amortised or
depreciated, and any equity-accounted investment is no longer
equity accounted.
INVENTORIES – PROPERTY
Properties held as trading inventory are those which are being
developed with a view to sale. Inventories are recorded at the lower
of cost and net realisable value. If the net realisable value of
inventory is lower than its carrying value, an impairment loss is
recorded in the income statement. If, in subsequent periods, the net
realisable value of inventory that was previously impaired increases
above its carrying value, the impairment is reversed to align the
carrying value of the property with the net realisable value.
Inventory is presented on the balance sheet within current assets.
INCOME TAXES
The charge for current taxation is based on the results for the year
as adjusted for disallowed or non–assessable items. Tax payable
upon realisation of revaluation gains recognised in prior periods is
recorded as a current tax charge with a release of the associated
deferred tax. Deferred tax is the tax expected to be payable or
recoverable on differences between the carrying amounts of assets
and liabilities in the financial statements and the corresponding tax
bases used in the tax computations and is recorded using the
balance sheet liability method. Deferred tax liabilities are generally
recognised for all taxable temporary differences and deferred tax
assets are recognised to the extent that it is probable that taxable
profits will be available against which deductible temporary
differences can be utilised. In respect of the deferred tax on the
revaluation surplus, this is calculated on the basis of the chargeable
gains that would crystallise on the sale of the investment portfolio
as at the reporting date. The calculation takes account of indexation
on the historic cost of properties and any available capital losses.
Deferred tax is calculated at the tax rates that are expected to apply
in the period when the liability is settled or the asset is realised.
Deferred tax is charged or credited in the Group income statement,
except when it relates to items charged or credited directly to
equity, in which case it is also dealt with in equity.
DIVIDENDS
Dividends payable on the ordinary share capital are recognised as a
liability in the period in which they are approved.
CASH AND CASH EQUIVALENTS
Cash comprises cash in hand and on-demand deposits. Cash and
cash equivalents comprise short-term, highly liquid investments that
are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value and original
maturities of three months or less.
The cash and cash equivalents shown in the cashflow statement are
stated net of bank overdrafts that are repayable on demand in
accordance with IAS 7. This includes the structured trade finance
facility held in South Africa as detailed in note 22. These facilities
are considered to form an integral part of the treasury management
of the Group and can fluctuate from positive to negative balances
during the period.
BISICHI PLC
Mining revenue
Coal revenue is derived principally from export revenue and
domestic revenue.
Both export revenue and domestic revenue is recognised when the
customer has a legally binding obligation to settle under the terms
of the contract when the performance obligations have been
satisfied, which is once control of the goods has transferred to the
buyer at the delivery point. For export revenue this is generally
recognised when the product is delivered to the export terminal
location specified in the customer contract, at which point control of
the goods have been transferred to the customer. For domestic coal
revenues this is generally recognised on collection by the customer
from the mine or from the mine’s rail siding when loaded into
transport, where the customer pays the transportation costs.
Fulfilment costs to satisfy the performance obligations of coal
revenues such as transport and loading costs borne by the Group
from the mine to the delivery point are recoded in operating costs.
Coal revenue is measured based on consideration specified in the
contract with a customer on a per metric tonne basis. Both export
and domestic contracts are typically on a specified coal volume basis
and less than a year in duration. Export contracts are typically linked
to the price of Free on Board (FOB) Coal from Richards Bay Coal
Terminal (API4 price). Domestic contracts are typically linked to a
contractual price agreed.
Mining costs
Expenditure is recognised in respect of goods and services received.
Where coal is purchased from third parties at point of extraction the
expenditure is only recognised when the coal is extracted and all of
the significant risks and rewards of ownership have been
transferred.
Mining reserves, plant and equipment
The cost of property, plant and equipment comprises its purchase
price and any costs directly attributable to bringing the asset to the
location and condition necessary for it to be capable of operating in
accordance with agreed specifications. Freehold land is not
depreciated. Other property, plant and equipment is stated at
historical cost less accumulated depreciation. The cost recognised
includes the recognition of any decommissioning assets related to
property, plant and equipment.
Heavy surface mining and other plant and equipment is depreciated
at varying rates depending upon its expected usage. The
depreciation rates generally applied are between 5-10 per cent per
annum but limited to the shorter of its useful life or the life of the
mine.
Other non–current assets, comprising motor vehicles and office
equipment, are depreciated at a rate of between 10% and 33% per
annum which is calculated to write off the cost, less estimated
residual value of the assets, on a straight line basis over their
expected useful lives.
Mine inventories
Inventories are stated at the lower of cost and net realisable value.
Cost includes materials, direct labour and overheads relevant to the
stage of production. Cost is determined using the weighted average
method. Net realisable value is based on estimated selling price less
all further costs to completion and all relevant marketing, selling and
distribution costs.
54 London & Associated Properties PLC 2024
financial statements Group accounting policies
Mine provisions
Provisions are recognised when the Group has a present obligation
as a result of a past event which it is probable will result in an
outflow of economic benefits that can be reliably estimated.
A provision for rehabilitation of the mine is initially recorded at
present value and the discounting effect is unwound over time as a
finance cost. Changes to the provision as a result of changes in
estimates are recorded as an increase/decrease in the provision and
associated decommissioning asset. The decommissioning asset is
depreciated in line with the Group’s depreciation policy over the life
of mine. The provision includes the restoration of the underground,
opencast, surface operations and de-commissioning of plant and
equipment. The timing and final cost of the rehabilitation is
uncertain and will depend on the duration of the mine life and the
quantities of coal extracted from the reserves.
Mine impairment
Whenever events or changes in circumstance indicate that the carrying
amount of an asset may not be recoverable that asset is reviewed for
impairment. This includes mining reserves, plant and equipment and
net investments in joint ventures. A review involves determining
whether the carrying amounts are in excess of their recoverable
amounts. An asset’s recoverable amount is determined as the higher of
its fair value less costs of disposal and its value in use. Such reviews are
undertaken on an asset-by-asset basis, except where assets do not
generate cash flows independent of other assets, in which case the
review is undertaken on a cash generating unit basis.
If the carrying amount of an asset exceeds its recoverable amount
an asset’s carrying value is written down to its estimated
recoverable amount (being the higher of the fair value less cost to
sell and value in use) if that is less than the asset’s carrying amount.
Any change in carrying value is recognised in the comprehensive
income statement.
Mine reserves and development cost
The purpose of mine development is to establish secure working
conditions and infrastructure to allow the safe and efficient
extraction of recoverable reserves. Depreciation on mine
development is not charged until production commences or the
assets are put to use. On commencement of full commercial
production, depreciation is charged over the life of the associated
mine reserves extractable using the asset on a unit of production
basis. The unit of production calculation is based on tonnes mined
as a ratio to proven and probable reserves and also includes future
forecast capital expenditure. The cost recognised includes the
recognition of any decommissioning assets related to mine
development.
Post production stripping
In surface mining operations, the Group may find it necessary to
remove waste materials to gain access to coal reserves prior to and
after production commences. Prior to production commencing,
stripping costs are capitalised until the point where the overburden
has been removed and access to the coal seam commences.
Subsequent to production, waste stripping continues as part of the
extraction process as a run of mine activity. There are two benefits
accruing to the Group from stripping activity during the production
phase: extraction of coal that can be used to produce inventory and
improved access to further quantities of material that will be mined
in future periods. Economic coal extracted is accounted for as
inventory. The production stripping costs relating to improved
access to further quantities in future periods are capitalised as a
stripping activity asset, if and only if, all of the following are met:
• it is probable that the future economic benefit associated with
the stripping activity will flow to Bisichi;
• Bisichi can identify the component of the ore body for which
access has been improved; and
• the costs relating to the stripping activity associated with that
component or components can be measured reliably.
In determining the relevant component of the coal reserve for which
access is improved, Bisichi separates its mine into geographically
distinct sections or phases to which the stripping activities being
undertaken within that component are allocated. Such phases are
determined based on assessment of factors such as geology and
mine planning.
Bisichi depreciates deferred costs capitalised as stripping assets on a
unit of production method, with reference to the tons mined and
reserve of the relevant ore body component or phase. The cost is
recognised within Mine development costs within the balance
sheet.
SEGMENTAL REPORTING
For management reporting purposes, the Group is organised into
business segments distinguishable by economic activity. The
Group’s business segments are LAP operations, Bisichi operations
and Dragon operations. These business segments are subject to
risks and returns that are different from those of other business
segments and are the primary basis on which the Group reports its
segmental information. This is consistent with the way the Group is
managed and with the format of the Group’s internal financial
reporting. Significant revenue from transactions with any individual
customer, which makes up 10 per cent or more of the total revenue
of the Group, is separately disclosed within each segment. All coal
exports are sales to coal traders at Richard Bay’s terminal in South
Africa with the risks and rewards passing to the coal trader at the
terminal. Whilst the coal traders will ultimately sell the coal on the
international markets the Group has no visibility over the ultimate
destination of the coal. Accordingly, the export sales are recorded as
South Africa revenue.
LAP and its subsidiaries (“the Group”) consist of LAP, all of its
subsidiary undertakings, including Bisichi PLC (“Bisichi”) and Dragon
Retail Properties Limited (“Dragon”). The Group without Bisichi and
Dragon is referred to as LAP Group.
London & Associated Properties PLC 2024 55
financial statements
financial statements
Notes to the financial statements
for the year ended 31 December 2024
1. RESULTS FOR THE YEAR AND SEGMENTAL ANALYSIS
These operating segments (LAP, Bisichi and Dragon) are each viewed separately and have been so reported below.
BUSINESS SEGMENTS
BUSINESS ANALYSIS
LAP
£’000
BISICHI
£’000
DRAGON
£’000
2024
TOTAL
£’000
Rental income
2,303
1,039
168
3,510
Service charge income
149
191
10
350
Management income from third party properties
34
–
–
34
Mining
–
51,023
–
51,023
Group Revenue
2,486
52,253
178
54,917
Direct property costs
(1,100)
(276)
(22)
(1,398)
Impairment of inventory - property
(900)
–
–
(900)
Direct mining costs
–
(33,509)
–
(33,509)
Overheads
(2,000)
(7,523)
(52)
(9,575)
Depreciation
(267)
(3,975)
–
(4,242)
Operating (loss)/profit
(1,781)
6,970
104
5,293
Finance income
92
110
–
202
Finance expenses
(1,437)
(1,464)
(70)
(2,971)
Result before valuation movements
(3,126)
5,616
34
2,524
Other segment items
Net increase on revaluation of investment properties
1,525
150
125
1,800
Exchange losses
–
(23)
–
(23)
Net increase on revaluation of investments held for trading
–
68
–
68
Profit on disposal of subsidiary
50
–
–
50
Revaluation and other movements
1,575
195
125
1,895
(Loss)/profit for the year before taxation
(1,551)
5,811
159
4,419
Segment assets
- Non-current assets - property
25,870
10,966
2,155
38,991
- Non-current assets - plant & equipment
832
22,771
–
23,603
- Non-current assets - other
–
14,339
–
14,339
- Inventory - property
8,996
–
–
8,996
- Current assets - others
1,319
9,844
44
11,207
- Cash & cash equivalents
1,856
1,034
36
2,926
Total assets
38,873
58,954
2,235
100,062
Segment liabilities
Borrowings
(18,233)
(6,124)
(735)
(25,092)
Current liabilities
(3,142)
(16,620)
(226)
(19,988)
Non-current liabilities
(1,692)
(2,731)
–
(4,423)
Total liabilities
(23,067)
(25,475)
(961)
(49,503)
Net assets
15,806
33,479
1,274
50,559
Major customers
Customer A
–
13,713
–
13,713
Customer B
–
8,273
–
8,273
Customer C
–
7,608
–
7,608
These customers are for mining revenue in South Africa.
GEOGRAPHIC ANALYSIS
UNITED
KINGDOM
£’000
SOUTH
AFRICA
£’000
2024
TOTAL
£’000
Revenue
4,234
50,683
54,917
Operating (loss)/profit
(2,558)
7,851
5,293
Non-current assets excluding investments
39,891
22,703
62,594
Total net assets
38,142
12,417
50,559
Capital expenditure
903
8,160
9,063
56 London & Associated Properties PLC 2024
financial statements Notes to the financial statements
1. RESULTS FOR THE YEAR AND SEGMENTAL ANALYSIS CONTINUED
BUSINESS ANALYSIS
LAP
£’000
BISICHI
£’000
DRAGON
£’000
2023
TOTAL
£’000
Rental income
3,323
1,051
168
4,542
Service charge income
451
181
6
638
Management income from third party properties
18
–
–
18
Mining
–
47,985
–
47,985
Group Revenue
3,792
49,217
174
53,183
Direct property costs
(1,553)
(209)
(10)
(1,772)
Direct mining costs
–
(38,548)
–
(38,548)
Overheads
(2,254)
(7,649)
(33)
(9,936)
Depreciation
(266)
(1,493)
(2)
(1,761)
Operating (loss)/profit
(281)
1,318
129
1,166
Finance income
110
222
–
332
Finance expenses
(2,094)
(1,473)
(79)
(3,646)
Result before valuation movements
(2,265)
67
50
(2,148)
Other segment items
Net (decrease)/increase on revaluation of investment properties
(150)
145
–
(5)
Exchange losses
–
(158)
–
(158)
Decrease in value of other investments
–
–
(6)
(6)
Net increase on revaluation of investments held for trading
–
759
–
759
Profit on disposal of fixed assets
4
–
–
4
Loss on disposal of subsidiary
(1,930)
–
–
(1,930)
Revaluation and other movements
(2,076)
746
(6)
(1,336)
(Loss)/profit for the year before taxation
(4,341)
813
44
(3,484)
Segment assets
- Non-current assets - property
23,801
10,818
2,030
36,649
- Non-current assets - plant & equipment
268
18,896
–
19,164
- Non-current assets - other
–
14,258
–
14,258
- Non-current assets - deferred tax asset
114
318
–
432
- Inventory - property
8,889
–
–
8,889
- Current assets - others
1,123
9,490
113
10,726
- Assets held for sale
545
–
–
545
- Cash & cash equivalents
3,799
3,123
56
6,978
Total assets
38,539
56,903
2,199
97,641
Segment liabilities
Borrowings
(17,650)
(7,483)
(950)
(26,083)
Current liabilities
(3,238)
(16,748)
(62)
(20,048)
Non-current liabilities
(1,272)
(1,925)
–
(3,197)
Total liabilities
(22,160)
(26,156)
(1,012)
(49,328)
Net assets
16,379
30,747
1,187
48,313
Major customers
Customer A
–
22,283
–
22,283
Customer B
–
10,659
–
10,659
Customer C
–
4,854
–
4,854
These customers are for mining revenue in South Africa.
GEOGRAPHIC ANALYSIS
UNITED
KINGDOM
£’000
SOUTH
AFRICA
£’000
2023
TOTAL
£’000
Revenue
5,760
47,423
53,183
Operating (loss)/profit
(481)
1,647
1,166
Non-current assets excluding investments
37,086
19,159
56,245
Total net assets
40,747
7,566
48,313
Capital expenditure
81
5,909
5,990
Group revenue is external to the Group and the directors consider that inter segmental revenues are not material.
London & Associated Properties PLC 2024 57
financial statements Notes to the financial statements
2. PROFIT BEFORE TAXATION
2024
£’000
2023
£’000
Profit before taxation is stated after charging/(crediting):
Staff costs (see note 27)
9,098
8,860
Depreciation on tangible fixed assets - owned assets
3,990
1,495
Depreciation on tangible fixed assets - right of use
321
266
Exchange gain
(24)
(158)
Inventories recognised as an expense
107
777
Amounts payable to the auditor in respect of both audit and non-audit services
Audit services
Statutory - Company and consolidation
50
30
Subsidiaries - audited by KR
131
129
Subsidiaries - audited by other auditors
41
40
222
199
Staff costs are included in overheads. No fees were payable to the auditor for non-audit services.
3. DIRECTORS’ EMOLUMENTS
2024
£’000
2023
£’000
Emoluments
1,920
1,890
Defined contribution pension scheme contributions
139
138
2,059
2,028
Sir Michael Heller received £nil (2023: £17,000) as a Director of Bisichi PLC.
Mr J A Heller received £9,000 (2023: £9,000) as a Director of Bisichi PLC
Mr A R Heller received £1,235,000 (2023: £985,000) as a Director of Bisichi PLC
Details of directors’ emoluments and share options are set out in the remuneration report.
4. FINANCE INCOME AND EXPENSES
2024
£’000
2023
£’000
Finance income
202
332
Finance expenses
Interest on bank loans and overdrafts
(2,019)
(2,658)
Unwinding of discount (Bisichi)
(20)
(112)
Other loans
(769)
(705)
Interest on lease obligations
(163)
(171)
Total finance expenses
(2,971)
(3,646)
5. INCOME TAX
2024
£’000
2023
£’000
Current tax
Corporation tax on profit of the period
454
1,318
Corporation tax on profit of previous periods
8
–
Total current tax
462
1,318
Deferred tax
Loss relief
(152)
(313)
Origination of timing differences
228
(131)
Revaluation of investment properties
333
124
Accelerated capital allowances
1,140
725
Unredeemed capital reductions
(396)
(1,416)
Total deferred tax (note 23)
1,153
(1,011)
Tax on profit on ordinary activities
1,615
307
58 London & Associated Properties PLC 2024
financial statements Notes to the financial statements
5. INCOME TAX CONTINUED
Factors affecting tax charge for the year
The corporation tax charge differs from the amount which would be due at the effective rate of corporation tax in the United Kingdom of
25 per cent (2023: 23.5 per cent). The differences are explained below:
2024
£’000
2023
£’000
Profit/(loss) for the year before taxation
4,419
(3,484)
Taxation at 25 per cent (2023: 23.5 per cent)
1,105
(819)
Effects of:
Other differences
138
94
Disallowable expenses
–
241
Capital gains on disposal
111
-
Impairment of Investment
–
367
Losses not recognised
288
968
Non-taxable income
(155)
(224)
Changes in fair values of properties not subject to tax
(17)
(391)
Adjustment in respect of prior years
8
–
Overseas tax rate
137
71
Income tax charge for the year
1,615
307
Analysis of United Kingdom and overseas tax:
United Kingdom tax included above:
2024
£’000
2023
£’000
Current tax
–
–
Deferred tax
(391)
(86)
(391)
(86)
Overseas tax included above:
2024
£’000
2023
£’000
Corporation tax
454
1,318
Adjustment in respect of prior years
8
–
Current tax
462
1,318
Deferred tax
1,544
(925)
2,006
393
Overseas tax is derived from Bisichi’s South African mining operation. The adjustment to tax rate arises due to the tax rate used in the UK
for the year of 25% (2023: 23.5%) and the corporation tax rate assessed in South Africa for the year of 27% (2023: 27%).
Factors that may affect future tax charges:
Based on current capital expenditure plans, the Group expects to continue to be able to claim capital allowances in excess of depreciation
in future years, but at a slightly lower level than in the current year.
A deferred tax provision has been made for gains on revaluing investment properties.
The Finance (no. 2) Act 2017 was substantively enacted on 16 November 2017. This includes a restriction on the utilisation of brought
forward tax losses and corporate interest in certain circumstances effective from 1 April 2017.
London & Associated Properties PLC 2024 59
financial statements Notes to the financial statements
6. DISPOSAL OF SUBSIDIARY
In December 2024 a decision was made to cease the residential development in Purely, London following the rejection of our planning
application appeal. The company, Development Physics Limited, was subsequently closed and the resulting profit of £50,000 within the
consolidated accounts of LAP relates to the release of provisions made in previous years.
In July 2023 LAP lost effective control of Orchard Square Limited. LAP no longer has exposure, or rights, to variable returns from its
involvement with Orchard Square Limited. In accordance with IFRS10, the investment in Orchard Square Limited has been treated as having
been relinquished in 2023 and neither the loan nor the asset is shown in the accounts at 31 December 2023 or 2024.
The financial results of Orchard Square Limited for 2023 included within these accounts are presented below. None of Orchard Square
Limited’s results for 2024 are included within these accounts.
In addition to the results of Orchard Square Limited, losses attributable to our ownership of this subsidiary in 2023 are also presented
below. As the loan associated with Orchard Square Limited is non-recourse to the LAP Group, there will be no future losses to be attributed
to this subsidiary. All potential losses have been fully provided in 2023. Orchard Square Limited has had no effect on the Group results in
2024 other than £16,000 of management fee income for LAP.
Result of Orchard Square Limited for the year
2024
£’000
2023
£’000
Gross property income
–
1,258
Direct property costs
–
(646)
Net property income
–
612
Overheads
–
(34)
Net revenue from property
–
578
Net finance expenses
–
(750)
Income tax
–
(19)
Profit before tax attributable to shareholders
–
(191)
Cash flows from Orchard Square Limited
2024
£’000
2023
£’000
Cash flows from operating activities
–
474
Cash flows from investing activities
–
(12)
Cash flows from financing activities
–
(882)
Net cash outflow
–
(420)
Summary of assets and liabilities of Orchard Square Limited
2024
£’000
2023
£’000
Inventory - property
–
14,750
Trade and other receivables
–
262
Cash and cash equivalents
–
148
Total assets
–
15,160
Current borrowings
–
(12,654)
Trade and other payables
–
(565)
Balances owed to other group companies
–
(1,317)
Total liabilities
–
(14,536)
Net assets
–
624
Additional effects of investment in Orchard Square Limited
2024
£000
2023
£000
Loss on disposal of subsidiary
–
(1,930)
This loss on disposal is shown in the consolidated results of the Group for the year and includes a full provision for the net assets of
Orchard Square Limited as at 31 July 2023 and a full provision for the intercompany balances between Orchard Square Limited and the LAP
Group at 31 December 2023.
60 London & Associated Properties PLC 2024
financial statements Notes to the financial statements
7. DIVIDEND
No dividends were paid in the year relating to the current or prior period (2023: Nil)
The Directors are not recommending a final dividend for 2024 (2023: Nil).
8. LOSS PER EQUITY SHARE AND NET ASSETS PER EQUITY SHARE
Profit/(loss) per equity share has been calculated as follows:
2024
2023
Loss attributable to equity shareholders for the year (£’000)
(373)
(3,861)
Weighted average number of ordinary shares in issue (’000)
85,326
85,326
Loss per equity share
(0.44)p
(4.52)p
Weighted average number of ordinary shares in issue for the purpose of diluted loss per share (’000)
85,326
85,326
Fully diluted loss per share
(0.44)p
(4.52)p
Weighted average number of shares in issue is calculated after excluding treasury shares of 216,715 (2023: 216,715).
Net assets per equity share have been calculated as follows:
2024
2023
Net assets attributable to equity shareholders (£’000)
28,085
28,490
Shares in issue (’000)
85,326
85,326
Net assets per equity share
32.91p
33.38p
Net assets diluted (£’000)
28,085
28,490
Shares in issue (’000)
85,326
85,326
Diluted net assets per share
32.91p
33.38p
9. INVESTMENT PROPERTIES
TOTAL
£’000
FREEHOLD
£’000
LEASEHOLD
OVER 50
YEARS
£’000
LEASEHOLD
UNDER 50
YEARS
£’000
Cost or valuation at 1 January 2024
36,649
29,250
7,224
175
Transfer from assets held for sale (note 11)
545
545
–
–
Decrease in present value of head leases
(3)
–
(3)
–
Increase/(decrease) on revaluation
1,800
1,790
30
(20)
At 31 December 2024
38,991
31,585
7,251
155
Representing assets stated at:
Valuation
37,405
31,585
5,670
150
Present value of head leases
1,586
–
1,581
5
38,991
31,585
7,251
155
At 31 December 2024
38,991
31,585
7,251
155
At 31 December 2023
36,649
29,250
7,224
175
London & Associated Properties PLC 2024 61
financial statements Notes to the financial statements
9. INVESTMENT PROPERTIES CONTINUED
TOTAL
£’000
FREEHOLD
£’000
LEASEHOLD
OVER 50 YEARS
£’000
LEASEHOLD
UNDER 50
YEARS
£’000
Cost or valuation at 1 January 2023
37,162
29,679
7,298
185
Transfer to assets held for sale (note 11)
(545)
(545)
–
–
Additions
38
–
38
–
Decrease in present value of head leases
(1)
–
(1)
–
Increase/(decrease) on revaluation
(5)
116
(111)
(10)
At 31 December 2023
36,649
29,250
7,224
175
Representing assets stated at:
Valuation
35,060
29,250
5,640
170
Present value of head leases
1,589
–
1,584
5
At 31 December 2023
36,649
29,250
7,224
175
The leasehold and freehold properties, excluding the present value of head leases, were valued as at 31 December 2024 by professionally
qualified independent firms of chartered surveyors. The valuations were made at fair value.
2024
£’000
2023
£’000
Allsop LLP
26,645
24,450
Carter Towler
10,760
10,610
37,405
35,060
Add: present value of headleases
1,586
1,589
38,991
36,649
At 31 December 2024 investment properties included £1.6 million (2023: £1.6 million) for the head lease liabilities recognised under IFRS
16. In the current year total cash outflow for head leases and other lease liabilities is £0.1 million (2023: £0.1 million). A number of these
leases provide for payment of contingent rent, usually a proportion of net rental income, in addition to fixed rents.
The historical cost of investment properties, including total capitalised interest of £1,161,000 (2023: £1,161,000) was as follows:
2024
2023
FREEHOLD
£’000
LEASEHOLD
OVER 50
YEARS
£’000
LEASEHOLD
UNDER 50
YEARS
£’000
FREEHOLD
£’000
LEASEHOLD
OVER 50
YEARS
£’000
LEASEHOLD
UNDER 50
YEARS
£’000
Cost at 1 January
32,702
9,551
785
33,283
9,551
785
Transfer from/(to) assets held for sale
(note 11)
581
–
–
(581)
–
–
Additions
–
–
–
–
–
–
Disposals
–
–
–
–
–
–
Cost at 31 December
33,283
9,551
785
32,702
9,551
785
Each year external valuers are appointed by the executive directors on behalf of the Board. The valuers are selected based upon their
knowledge, independence and reputation for valuing assets such as those held by the Group.
Valuations are performed annually and are performed consistently across all properties in the Group’s portfolio. At each reporting date
appropriately qualified employees of the Group verify all significant inputs and review the computational outputs. Valuers submit their
report to the Board on the outcome of each valuation.
Valuations take into account tenure, lease terms and structural condition. The inputs underlying the valuations include market rent or
business profitability, likely incentives offered to tenants, forecast growth rates, yields, EBITDA, discount rates, construction costs including
any specific site costs (for example section 106), professional fees, developer’s profit including contingencies, planning and construction
timelines, lease regear costs, planning risk and sales prices based on known market transactions for similar properties to those being valued.
Valuations are based on what is determined to be the highest and best use. When considering the highest and best use the valuer will
consider, on a property by property basis, its actual and potential uses which are physically, legally and financially viable. Where the highest
and best use differs from the existing use, the valuer will consider the cost and likelihood of achieving and implementing this change in
arriving at the valuation.
62 London & Associated Properties PLC 2024
financial statements Notes to the financial statements
9. INVESTMENT PROPERTIES CONTINUED
There are often restrictions on Freehold and Leasehold property which could have a material impact on the realisation of these assets. The
most significant of these occur when planning permission or lease extension and renegotiation of use are required or when a credit facility is
in place. These restrictions are factored into the property’s valuation by the external valuer.
The methods of fair value measurement are classified into a hierarchy based on the reliability of the information used to determine the
valuation, as follows:
Level 1:
valuation based on inputs on quoted market prices in active markets.
Level 2:
valuation based on inputs other than quoted prices included within level 1 that maximise the use of observable data directly
or from market prices or indirectly derived from market prices.
Level 3:
where one or more significant inputs to valuations are not based on observable market data.
CLASS OF PROPERTY
LEVEL 3
CARRYING /
FAIR VALUE
2024
£'000
CARRYING/ FAIR
VALUE 2023
£’000
VALUATION
TECHNIQUE
KEY UNOBSERVABLE
INPUTS
RANGE
(WEIGHTED
AVERAGE)
2024
RANGE
(WEIGHTED AV-
ERAGE) 2023
Freehold –
external valuation
31,585
29,250
Income capitalisation
Estimated Rental Value
Per sq ft p.a
Equivalent Yield
£4 - £34
(£16)
5.1% - 12.3%
(8.4%)
£4 - £34
(£16)
5.3% - 14.3%
(9.2%)
Leasehold over 50 years
– external valuation
5,670
5,640
Income capitalisation
Estimated Rental Value
Per sq ft p.a
Equivalent Yield
£5 - £10
(£7)
5.8% - 23.7%
(18.3%)
£5 - £10
(£7)
5.8% - 23.7%
(18.6%)
Leasehold under 50
years –
external valuation
150
170
Income capitalisation
Estimated Rental Value
Per sq ft p.a
Equivalent Yield
£5 - £5
(£5)
37.0% – 37.0%
(37.0%)
£5 - £5
(£5)
32.6% – 32.6%
(32.6%)
At 31 December
37,405
35,060
There are interrelationships between all these inputs as they are determined by market conditions. The existence of an increase in more
than one input would be to magnify the input on the valuation. The impact on the valuation will be mitigated by the interrelationship of two
inputs in opposite directions, for example, an increase in rent may be offset by an increase in yield.
The table below illustrates the impact of changes in key unobservable inputs on the carrying / fair value of the Group’s properties.
ESTIMATED RENTAL VALUE
10% INCREASE OR (DECREASE)
EQUIVALENT YIELD
25 BASIS POINT CONTRACTION
OR (EXPANSION)
2024
£'000
2023
£'000
2024
£'000
2023
£'000
Freehold – external valuation
3,156 (3,156)
2,977 (2,977)
1,041 (974)
925 (868)
Leasehold over 50 years – external valuation
567 (567)
564 (564)
100 (96)
99 (96)
Leasehold under 50 years – external valuation
15 (15)
17 (17)
1 (1)
1 (1)
London & Associated Properties PLC 2024 63
financial statements Notes to the financial statements
10. MINING RESERVES, PLANT AND EQUIPMENT
TOTAL
£’000
MINING
RESERVES
£’000
MINING
EQUIPMENT
£’000
RIGHT OF
USE ASSET
- OFFICE
BUILDING
£’000
OFFICE
EQUIPMENT
AND MOTOR
VEHICLES
£’000
Cost at 1 January 2024
41,346
2,059
37,861
796
630
Exchange adjustment
(663)
(29)
(628)
–
(6)
Additions
9,063
20
8,135
831
77
Disposals in year
(819)
–
–
(750)
(69)
At 31 December 2024
48,927
2,050
45,368
877
632
Accumulated depreciation at 1 January 2024
22,182
925
20,273
573
411
Exchange adjustment
(350)
(13)
(332)
–
(5)
Charge for the year
4,311
–
3,969
267
75
Disposals in year
(819)
–
–
(750)
(69)
Accumulated depreciation at 31 December 2024
25,324
912
23,910
90
412
Net book value at 31 December 2024
23,603
1,138
21,458
787
220
Cost at 1 January 2023
40,072
2,332
36,291
796
653
Exchange adjustment
(4,653)
(273)
(4,333)
–
(47)
Valuation decrease
(6)
–
–
–
(6)
Additions
5,952
–
5,903
–
49
Disposals
(19)
–
–
–
(19)
Cost at 31 December 2023
41,346
2,059
37,861
796
630
Accumulated depreciation at 1 January 2023
23,144
1,099
21,347
307
391
Exchange adjustment
(2,721)
(174)
(2,517)
–
(30)
Charge for the year
1,761
–
1,443
266
52
Disposals in year
(2)
–
–
–
(2)
Accumulated depreciation at 31 December 2023
22,182
925
20,273
573
411
Net book value at 31 December 2023
19,164
1,134
17,588
223
219
Included in the above line items are right-of-use assets over the following:
TOTAL
£’000
MINING
EQUIPMENT
£’000
OFFICE
BUILDING
£’000
OFFICE
EQUIPMENT
AND MOTOR
VEHICLES
£’000
Net book value at 1 January 2024
370
131
208
31
Additions
930
27
831
72
Disposals
(25)
(3)
–
(22)
Depreciation
(321)
(34)
(252)
(35)
Net book value at 31 December 2024
954
121
787
46
Net book value at 1 January 2023
664
186
457
21
Exchange adjustment
27
-
-
27
Revaluation
(26)
(26)
-
-
Depreciation
(295)
(29)
(249)
(17)
Net book value at 31 December 2023
370
131
208
31
11. ASSETS HELD FOR SALE
2024
£’000
2023
£’000
At 1 January
545
–
Transfer (to)/from investment property (note 9)
(545)
545
At 31 December
–
545
A decision to sell a retail and residential property in Rugeley was made in 2023. The property failed to achieve the expected value at auction
and has subsequently been reclassified as investment property in 2024.
64 London & Associated Properties PLC 2024
financial statements Notes to the financial statements
12. SUBSIDIARY COMPANIES
In accordance with Section 409 of the Companies Act 2006 a full list of subsidiaries, the principal activity, the country of incorporation and
the percentage of equity owned, as at 31 December 2024 is disclosed below:
ENTITY
ACTIVITY
PERCENTAGE
OF SHARE
CAPITAL
REGISTERED ADDRESS
COUNTRY OF
INCORPORATION
Analytical Properties Holdings Limited *
Property
100%
12 Little Portland Street, London
W1W 8BJ
England and Wales
Analytical Properties Limited
Property
100%
12 Little Portland Street, London
W1W 8BJ
England and Wales
LAP Ocean Holdings Limited *
Property
100%
12 Little Portland Street, London
W1W 8BJ
England and Wales
London & Associated (Rugeley) Limited
Dormant
100%
12 Little Portland Street, London
W1W 8BJ
England and Wales
London & Associated Securities Limited*
Investment
company
100%
12 Little Portland Street, London
W1W 8BJ
England and Wales
London & Associated Management Services
Limited *
Property
Management
Services
100%
12 Little Portland Street, London
W1W 8BJ
England and Wales
Orchard Chambers Residential Limited*
Property
100%
12 Little Portland Street, London
W1W 8BJ
England and Wales
Bisichi PLC (note C)
Coal mining
41.602%
12 Little Portland Street, London
W1W 8BJ
England and Wales
Mineral Products Limited (notes A, C)
Share dealing
100%
12 Little Portland Street, London
W1W 8BJ
England and Wales
Bisichi (Properties) Limited (notes A, C)
Property
100%
12 Little Portland Street, London
W1W 8BJ
England and Wales
Bisichi Mining (Exploration) Limited (notes A, C)
Holding
company
100%
12 Little Portland Street, London
W1W 8BJ
England and Wales
Sisonke Coal Processing (pty) Limited (notes A, C) Coal
processing
62.5%
Samora Machel Street, Bethal Road,
Middelburg, Mpumalanga, 1050
South Africa
Black Wattle Colliery (Pty) Limited (notes A, C)
Coal mining
62.5%
Samora Machel Street, Bethal Road,
Middelburg, Mpumalanga, 1050
South Africa
Bisichi Coal Mining (Pty) Limited (notes A, C)
Coal mining
100%
Samora Machel Street, Bethal Road,
Middelburg, Mpumalanga, 1050
South Africa
Urban First (Northampton) Limited (notes A, C)
Dormant
100%
12 Little Portland Street, London
W1W 8BJ
England and Wales
Bisichi Trustee Limited (notes A, C)
Property
100%
12 Little Portland Street, London
W1W 8BJ
England and Wales
Bisichi Mining Management Services Limited
(notes A, C)
Dormant
100%
12 Little Portland Street, London
W1W 8BJ
England and Wales
Ninghi Marketing Limited (notes A, C)
Dormant
90.1%
12 Little Portland Street, London
W1W 8BJ
England and Wales
Bisichi Northampton Limited (notes A, C)
Property
100%
12 Little Portland Street, London
W1W 8BJ
England and Wales
Amandla Ehtu Mineral Resource Development
(Pty) Limited (notes A, C)
Dormant
70%
Samora Machel Street, Bethal Road,
Middelburg, Mpumalanga, 1050
South Africa
Black Wattle Klipfontein (Pty) Limited (notes A, C) Coal mining
62.5%
Samora Machel Street, Bethal Road,
Middelburg, Mpumalanga, 1050
South Africa
Dragon Retail Properties Limited (notes B, C)
Property
50%
12 Little Portland Street, London
W1W 8BJ
England and Wales
West Ealing Projects Limited (notes B, C)
Property
50%
12 Little Portland Street, London
W1W 8BJ
England and Wales
Broadway Regen Limited (notes C, D)
Property
90%
73 Cornhill, London, EC3V 3QQ
England and Wales
Details on the non–controlling interest in subsidiaries are shown under note 25.
Companies shown as Dormant and those marked with an asterisk (*) are exempt from audit by virtue of s479A Companies Act 2006.
Note A: these companies are owned by Bisichi and the equity shareholdings disclosed relate to that company.
Note B: this entity is a joint venture owned 50% by LAP and 50% by Bisichi.
Note C: Bisichi, Dragon, West Ealing Projects and their subsidiaries are included in the consolidated financial statements in accordance with
IFRS 10.
Note D: This company is 90% owned by West Ealing Projects Limited and the equity shareholdings disclosed relate to that company.
London & Associated Properties PLC 2024 65
financial statements Notes to the financial statements
13. INVENTORIES - PROPERTY
Development land and infrastructure:
2024
£’000
2023
£’000
At 1 January
8,889
22,862
Capitalised expenditure
545
360
Capitalised interest
462
417
Impairment
(900)
-
Disposal
–
(14,750)
At 31 December
8,996
8,889
The net realisable value of developments is assessed by the directors and is subject to key estimates made in respect of future sales prices
and build costs. Variations in these assumptions can have significant effects on the net realisable value of developments.
In 2018 the Group acquired a development property through West Ealing Projects Limited a 50:50 joint venture with Bisichi. This property
is held at cost of £8.996 million (2023: £8.889 million) and is currently being developed for sale. At 31 December 2024, the development
has been impaired by £900,000 to reflect the Director’s assessment of the projects current Net Present Value.
In 2021 the group acquired an option over a residential development opportunity in Purley, London through a joint venture held 33:33:33
with Bisichi and an external partner. Following an unsuccessful planning application and appeal, a decision was made not to progress this
development and the associated companies were dissolved.
The Group disposed of its interest in the Orchard Square, Sheffield development property in 2023. Note 6 explains this in more detail,
including its financial effect.
14. INVENTORIES - MINING
2024
£’000
2023
£’000
Coal
Washed
2,334
1,949
Mining production
1,022
542
Work in progress
–
85
Other
21
3
3,377
2,579
15. INVESTMENTS HELD AS NON-CURRENT ASSETS
2024
TOTAL
£’000
2023
TOTAL
£’000
At 1 January
14,258
12,590
Additions
5,143
1,189
Gain
174
856
Disposals
(5,236)
(377)
At 31 December
14,339
14,258
The non-current asset investments belong to Bisichi and comprise Level 1 hierarchy:
2024
£’000
2023
£’000
Unquoted investments
1,451
–
Market value of readily realisable investments listed on stock exchanges in the United Kingdom
3,115
6,843
Market value of readily realisable investments listed on overseas stock exchanges
9,773
7,415
14,339
14,258
Dividend income from investments held as non-current assets was £308,000 (2023: £501,000) for the year.
16. TRADE AND OTHER RECEIVABLES
2024
£’000
2023
£’000
Trade receivables
5,323
4,695
Other receivables
1,500
2,285
Prepayments and accrued income
379
433
7,202
7,413
Note 22 details the group’s credit risk management and loss allowances held for trade receivables.
66 London & Associated Properties PLC 2024
financial statements Notes to the financial statements
17. INVESTMENTS IN LISTED SECURITIES HELD AT FVPL
2024
£’000
2023
£’000
Market value of listed investments:
Listed in Great Britain
628
618
Listed outside Great Britain
–
116
628
734
Original cost of listed investments
661
760
Unrealised deficit of market value versus cost
(33)
(26)
The investments in listed securities held at FVPL belong to Bisichi and the market value of listed investments is derived from their quoted
share price on public markets (Level 1 hierarchy).
18. TRADE AND OTHER PAYABLES
2024
£’000
2023
£’000
Trade payables
10,339
8,752
Other taxation and social security costs
105
118
Other payables
3,046
3,563
Accruals and deferred income
2,258
2,030
15,748
14,463
The directors consider that the carrying amount of trade and other payables approximates to their fair value.
19. BORROWINGS
2024
£’000
CURRENT
2024
£’000
NON-CURRENT
2023
£’000
CURRENT
2023
£’000
NON-CURRENT
Other loans (Bisichi)
8
13
7
22
£0.74 million term bank loan (secured) repayable by 2027 (Dragon)*
20
715
950
–
Bank overdrafts (secured) (Bisichi)
2,258
–
3,534
–
£0.04 million term loan (unsecured) repayable by 2026
8
5
8
12
£3.96 million term bank loan (secured) repayable by 2029 (Bisichi)*
–
3,845
3,920
–
£4.4 million term loan (secured) - repayable by 2024 (Broadway Regen)
4,869
–
4,373
–
£13.60 million term bank loan (secured) repayable by 2027
–
13,351
–
13,257
7,163
17,929
12,792
13,291
Borrowings analysis by origin:
2024
£’000
2023
£’000
United Kingdom
22,812
22,520
South Africa
2,280
3,563
25,092
26,083
* Shown after deduction of un-amortised issue costs.
Unless stated otherwise in the table above, interest payable on the term bank loans is variable based upon the relevant bank’s base rate, the
Bank of England base rate or the Sterling Overnight Index Average (SONIA).
No banking covenants were breached by the group during the year.
The £13.6 million term loan was taken out in August 2022 with QIB (UK) plc and is secured on specific freehold and leasehold properties,
with a secondary charge of £2 million over the assets of LAP the company. The loan has an interest rate of 3.95% above the Bank of
England base rate. This loan is covenant compliant. The margin reduces to 2.95% from May 2025, for the remainder of the loan period.
In South Africa, an R85million trade facility is held with Absa Bank Limited by Sisonke Coal Processing (Pty) Limited (“Sisonke Coal
Processing”) to cover the working capital requirements of the Group’s South African operations. The interest cost of the loan is at the South
African prime lending rate plus 3.8% The facility is renewable annually, is repayable on demand and is secured by way of a first charge over
specific pieces of mining equipment, inventory and the debtors of the relevant company which holds the loan which are included in the
financial statements at a value of £10,008,178 (2023: £9,373,603). All banking covenants were either adhered to or waived by Absa Bank
Limited during the year.
Bisichi entered into a £3.9 million term loan facility with Julian Hodge Bank Limited during the year. The debt package has a five-year term
and is repayable in December 2029. The interest cost of the loan is 4.00% above the Bank of England base rate. The loan is secured by way
of a first charge over Bisichi’s UK investment properties which are included in the financial statements at a value of £10,760,000 (2023:
£10,610,000).
London & Associated Properties PLC 2024 67
financial statements Notes to the financial statements
19. BORROWINGS CONTINUED
Dragon entered into a new £0.74 million loan with Santander during the year. The loan is repayable in April 2027 and is secured by way of a
first charge on specific freehold property which is included in the financial statements at a value of £2.2 million. The interest cost of the loan
is 3.5 per cent above the bank’s base rate.
The bank loan of £4.9 million (Broadway Regen) which is repayable in January 2025, is secured by way of a first charge on a specific
freehold development property, which is included in the financial statements at £9.0 million. The interest cost of the loan is fixed at 11.0%
per annum. The lender continues to support this development as we progress towards construction start at which point the current loan
will be repaid.
The Group’s objectives when managing capital are:
• To safeguard the Group’s ability to continue as a going concern, so that it may provide returns for shareholders and benefits for other
stakeholders; and
• To provide adequate returns to shareholders by ensuring returns are commensurate with the risk.
Analysis of the changes in liabilities arising from financing activities:
2024
£’000
BANK
BORROWINGS
2024
£’000
LEASE
OBLIGATIONS
2023
£’000
BANK BOR-
ROWINGS
2023
£’000
LEASE
OBLIGATIONS
Balance at 1 January
26,083
1,976
39,174
2,253
Exchange adjustments
(39)
(2)
(453)
(24)
Cash movements excluding exchange adjustments
(1,047)
(329)
(138)
(290)
Additions
–
929
(12,654)
–
Valuation movements
95
(1)
154
37
Balance at 31 December
25,092
2,573
26,083
1,976
20. LEASE LIABILITIES
2024
TOTAL
£’000
2024
HEAD LEASES
ON
INVESTMENT
PROPERTY 1
£’000
2024
OFFICE
£’000
2024
OTHER
£’000
2023
TOTAL
£’000
Minimum lease payments fall due:
Within one year
518
122
323
73
410
Second to fifth year
1,227
485
594
148
622
After five years
9,888
9,888
-
-
10,038
11,633
10,495
917
221
11,070
Future finance charges on lease liabilities
(9,060)
(8,909)
(126)
(25)
(9,094)
Present value of lease liabilities
2,573
1,586
791
196
1,976
Present value of lease liabilities:
Within one year
439
121
257
61
394
Second to fifth year
1,106
437
534
135
547
After five years
1,028
1,028
-
-
1,035
2,573
1,586
791
196
1,976
1 Many head leases on investment properties provide for contingent rent in addition to the rents above, usually a proportion of rental income.
Lease liabilities greater than one year are £2,134,000 (2023: £1,582,000).
Lease liabilities are effectively secured as the rights to the leased asset revert to the lessor in the event of default.
21. PROVISIONS
2024
£’000
2023
£’000
At 1 January
1,615
1,716
Exchange adjustment
(44)
(213)
Unwinding of discount
19
112
At 31 December
1,590
1,615
The above provision relates to mine rehabilitation costs in Bisichi.
68 London & Associated Properties PLC 2024
financial statements Notes to the financial statements
22. FINANCIAL INSTRUMENTS
Total financial assets and liabilities
The Group’s financial assets and liabilities and their fair values are as follows:
2024
2023
FAIR
VALUE
£’000
CARRYING
VALUE
£’000
FAIR
VALUE
£’000
CARRYING
VALUE
£’000
Cash and cash equivalents
2,926
2,926
6,978
6,978
Investments - non-current assets
14,339
14,339
14,258
14,258
Investments - current assets
628
628
734
734
Trade and other receivables
9,052
9,052
8,889
8,889
Other assets
6,919
6,919
6,875
6,875
Bank overdrafts
(2,258)
(2,258)
(3,534)
(3,534)
Bank loans
(22,856)
(22,834)
(22,571)
(22,549)
Lease liabilities
(2,573)
(2,573)
(1,976)
(1,976)
Other liabilities
(13,385)
(13,385)
(12,315)
(12,315)
Total financial liabilities before debentures
(7,208)
(7,186)
(2,662)
(2,640)
Treasury policy
The Group enters derivative transactions such as interest rate swaps and forward exchange contracts in order to help manage the financial
risks arising from the Group’s activities. The main risks arising from the Group’s financing structure are interest rate risk, liquidity risk, market
price risk, credit risk, commodity price risk and foreign exchange risk. The policies for managing each of these risks and the principal effects
of these policies on the results are summarised below.
Sensitivity analysis
The Group has no variable interest term debts which are covered by derivatives. At 31 December 2024, with other variables unchanged, a
1% increase in interest rates would change the profit/loss for the year by £218,000 (2023: £220,000).
Interest rate risk
Treasury activities take place under procedures and policies approved and monitored by the Board to minimise the financial risk faced by
the Group.
The £13.6 million bank loan is secured by way of first charge on specific freehold and leasehold properties. The rates of interest vary based
on Bank of England base rate in the UK.
The Bisichi United Kingdom bank loan is secured by way of a first charge on their UK retail property portfolio. The rates of interest vary
based on Bank of England base rate in the UK.
The Bisichi South African bank loans and overdraft are secured by way of a first charge over specific pieces of mining equipment, inventory,
debtors and cash of the relevant company which holds the loan. The rates of interest vary based on PRIME in South Africa.
The £0.74 million bank loan (Dragon) is secured by way of a first charge on specific freehold property. The rate of interest varies based on
the bank’s base rate.
The £4.9 million bank loan (Broadway Regen) is secured by way of first charge on a specific freehold development property. This loan is
based on a fixed interest rate of 11.0%.
Liquidity risk
The Group’s policy is to minimise refinancing risk by balancing its exposure to interest risk and to refinancing risk. In effect the Group seeks
to borrow for as long as possible at the lowest acceptable cost. Efficient treasury management and strict credit control minimise the costs
and risks associated with this policy which ensures that funds are available to meet commitments as they fall due. Cash and cash
equivalents earn interest at rates based on banks’ base rates in the UK. The cash resources and funding facilities together are considered
adequate to meet the Group’s anticipated cash flow requirements for the foreseeable future.
The £13.6 million bank loan with QIB (UK) plc is secured against properties within LAP’s retail and industrial portfolio. The debt package has
a five-year term and is repayable in 2027. The interest cost of the loan is 3.95% above the Bank of England base rate in the UK reducing to
2.95% above base rate in May 2025.
In South Africa, a R85million trade facility is held with Absa Bank Limited by Sisonke Coal Processing (Pty) Limited (“Sisonke Coal
Processing”) in order to cover the working capital requirements of Bisichi’s South African operations. The interest cost of the loan is at the
South African prime lending rate plus 3.8% The facility is renewable annually each January, is repayable on demand and is secured against
inventory, debtors and cash that are held by Sisonke Coal Processing (Pty) Limited. The facility is included in cash and cash equivalents
within the cashflow statement.
Bisichi holds a £3.96 million term loan facility with Julian Hodge Bank Limited. The loan is secured against Bisichi’s UK retail property
portfolio. The debt package has a five-year term and is repayable at the end of the term in December 2029. The interest cost of the loan is
4.00% above the Bank of England base rate. Bisichi intends to renew or refinance the loan prior to the end of its term.
The table below analyses the Group’s financial liabilities (excluding interest rate derivatives) into maturity groupings and also provides details
of the liabilities that bear interest at fixed, floating and non–interest bearing rates.
London & Associated Properties PLC 2024 69
financial statements Notes to the financial statements
22. FINANCIAL INSTRUMENTS CONTINUED
2024
TOTAL
£’000
LESS THAN
1 YEAR
£’000
2-5 YEARS
£’000
OVER
5 YEARS
£’000
Bank overdrafts (floating)
2,258
2,258
–
–
Bank loans (fixed)
4,882
4,877
5
–
Bank loans (floating)*
18,314
28
18,286
–
Lease liabilities
11,633
518
1,227
9,888
Trade and other payables (non-interest)
13,385
13,385
–
–
50,472
21,066
19,518
9,888
2023
TOTAL
£’000
LESS THAN
1 YEAR
£’000
2-5 YEARS
£’000
OVER
5 YEARS
£’000
Bank overdrafts (floating)
3,534
3,534
–
–
Bank loans (fixed)
4,393
4,381
12
–
Bank loans (floating)*
14,617
957
13,660
–
Lease liabilities
11,070
410
622
10,038
Trade and other payables (non-interest)
12,315
12,315
–
–
45,929
21,597
14,294
10,038
The Group would normally expect that sufficient cash is generated in the operating cycle to meet the contractual cash flows as disclosed
above through effective cash management.
Market price risk
The Group is exposed to market price risk through interest rate and currency fluctuations.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group.
The Group is mainly exposed to credit risk on its cash and cash equivalents, trade and other receivables. The maximum exposure to credit
risk is represented by the carrying amount of each financial asset in the balance sheet which at year end amounted to £24,716,000 (2023:
£27,671,000).
To mitigate risk on its cash and cash equivalents, the group only deposits surplus cash with well-established financial institutions of
high-quality credit standing.
The Group’s credit risk is primarily attributable to its trade receivables. Ageing of past due gross trade receivables and the carrying amount
net of loss allowances is set out below.
2024
2023
GROSS
AMOUNT
£’000
LOSS ALLOW-
ANCE
£’000
NET CARRYING
AMOUNT
£’000
GROSS
AMOUNT
£’000
LOSS ALLOW-
ANCE
£’000
NET CARRYING
AMOUNT
£’000
0-30 days
5,112
-
5,112
3,433
(308)
3,125
30-60 days
9
(4)
5
-
-
-
60-90 days
13
(4)
9
9
(3)
6
90+ days
726
(529)
197
489
(205)
284
Total
5,860
(537)
5,323
3,931
(516)
3,415
Being:
Mining
4,668
-
4,668
2,951
(301)
2,650
Property
1,192
(537)
655
980
(215)
765
5,860
(537)
5,323
3,931
(516)
3,415
Gross trade receivables mainly consist of amounts invoiced for rent, service charge and management fees and the sales of coal and all are
inclusive of VAT and form part of Revenue (see note 1).
Trade receivables are presented in the balance sheet net of loss allowances. The Group applies the IFRS 9 simplified approach to measuring
expected credit losses (ECLs) which uses a lifetime expected loss allowance for all trade receivables. Expected loss rates are based on the
historic credit loss experienced and adjusted for current and forward information affecting the ability of the individual customers to settle
receivables.
Trade receivables are written off when there is no reasonable expectation of recovery.
In determining the ECLs an analysis of various factors has been performed on a customer by customer basis and it considers the impact of
economic conditions. These factors include an assessment of the customer’s default risk based on: industry and geographic location; and
payment record, which includes how many days past due the receivable is, payment concessions granted and credit rating. ECLs are
recognised net of securities held for the customer.
70 London & Associated Properties PLC 2024
financial statements Notes to the financial statements
22. FINANCIAL INSTRUMENTS CONTINUED
Potential customers are evaluated for creditworthiness and where necessary collateral is secured. There is no concentration of credit risk
within the lease portfolio to either business sector or individual company as the Group has a diverse customer base with no one customer
accounting for more than three per cent of property rental income.
The loss allowances for trade receivables as at 31 December reconcile to the opening allowances as follows:
2024
£’000
2023
£’000
Opening loss allowance at 1 January
516
426
Increase in loan loss allowance recognised in profit and loss during the year
337
341
Receivables written off during the year as uncollectable
(315)
(251)
Closing loss allowance at 31 December
538
516
As at 31 December 2024, the Group held a loss allowance provision for trade receivables of £538,000 (2023: £516,000) and the
impairment risk remains low with the loss allowance of £538,000 representing 1.0% of total income for the year (2023: 1.0%). The loss
allowance at 31 December 2024 relating to property income is 537,000 (2023: £215,000) representing 13.8% of gross property income in
the year (2023: 4.1%). Three larger tenant failures in 2024 contributed £282,000 of the total loss allowance at 31 December 2024. These
were all long standing tenants.
Customers’ credit ratings are reviewed regularly. The Group’s review includes measures such as the use of external ratings and establishing
purchase limits for each customer.
The Group exposure to credit risk on its other receivables is mitigated through ongoing review of the underlying performance and resources
of the counterparty including evaluation of different scenarios of probability of default and expected loss applicable to each of the
underlying balances.
Foreign exchange risk
Only Bisichi is subject to this risk. All trading is undertaken in the local currencies except for certain export sales which are invoiced in US
Dollars. It is not the Bisichi Group’s policy to obtain forward contracts to mitigate foreign exchange risk on these contracts as payment
terms are within 15 days of invoice or earlier. Funding is also in local currencies other than inter-company investments and loans and it is
also not the Bisichi Group’s policy to obtain forward contracts to mitigate foreign exchange risk on these amounts. During 2024 and 2023
the Bisichi Group did not hedge its exposure of foreign investments held in foreign currencies.
The principal currency risk to which the Bisichi Group is exposed in regard to inter-company balances is the exchange rate between Pounds
Sterling and South African Rand. It arises as a result of the retranslation of Rand denominated inter-company trade receivable balances held
within the UK which are payable by South African Rand functional currency subsidiaries.
Based on Bisichi’s net financial assets and liabilities at 31 December 2024, a 25% strengthening of Sterling against the South African Rand,
with all other variables held constant, would decrease the Bisichi Group’s profit after taxation by £231,000 (2023: £280,000). A 25%
weakening of Sterling against the South African Rand, with all other variables held constant would increase the Bisichi Group’s profit after
taxation by £386,000 (2023: £466,000).
The 25% sensitivity has been determined based on the average historic volatility of the exchange rate.
The table below shows the Bisichi currency profiles of cash and cash equivalents:
2024
£’000
2023
£’000
Sterling
297
1,570
South African Rand
874
1,109
US Dollar
4
563
1,175
3,242
Cash and cash equivalents earn interest based on Bank of England rates in Sterling and Prime in Rand.
The tables below show the Bisichi currency profiles of net monetary assets and liabilities by functional currency:
2024:
UK
£'000
SOUTH AFRICA
£'000
Sterling
8,916
-
South African Rand
1
(11.283)
US Dollar
3,201
-
12,118
(11,283)
2023:
UK
£'000
SOUTH AFRICA
£'000
Sterling
12,082
-
South African Rand
40
(12,583)
US Dollar
2,095
-
14,217
(12,583)
London & Associated Properties PLC 2024 71
financial statements Notes to the financial statements
22. FINANCIAL INSTRUMENTS CONTINUED
Borrowing facilities
At 31 December 2024 the Group was within its bank borrowing facilities and was not in breach of any of the covenants. Term loan
repayments are as set out at the end of this note. Details of other financial liabilities are shown in notes 18, 19 and 20.
Interest rate and hedge profile
2024
£’000
2023
£’000
Fixed rate borrowings
4,882
4,393
Floating rate borrowings
– Other borrowings
20,210
17,770
25,092
22,163
Average fixed interest rate
10.98%
10.96%
Weighted average cost of debt on overdrafts, bank loans and debentures
10.09%
10.34%
Average period for which borrowing rate is fixed
0.1 years
0.3 years
The Group’s floating rate borrowings bear interest based on Bank of England base rate.
Fair value of financial instruments
Fair value estimation
The Group has adopted the amendment to IFRS 7 for financial instruments that are measured in the balance sheet at fair value. This
requires the methods of fair value measurement to be classified into a hierarchy based on the reliability of the information used to
determine the valuation, as follows:
• Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).
• Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices)
or indirectly (that is, derived from prices) (level 2).
• Inputs for the asset or liability that are not based on observable market data (that is unobservable inputs) (level 3).
LEVEL 1
£’000
LEVEL 2
£’000
LEVEL 3
£’000
TOTAL
£’000
2024
GAIN/(LOSS)
TO INCOME
STATEMENT
£’000
Financial assets
Quoted equities – non-current assets
14,339
–
–
14,339
174
Quoted equities – current assets
628
–
–
628
(33)
Financial liabilities
Interest rate swaps
–
–
–
–
–
LEVEL 1
£’000
LEVEL 2
£’000
LEVEL 3
£’000
TOTAL
£’000
2023
GAIN/(LOSS)
TO INCOME
STATEMENT
£’000
Financial assets
Quoted equities – non-current assets
14,258
–
–
14,258
856
Quoted equities – current assets
734
–
–
734
(26)
Capital structure
The Group sets the amount of capital in proportion to risk. It ensures that the capital structure is commensurate to the economic conditions
and risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Group may vary the amount of
dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The Group considers its capital to include share capital, share premium, capital redemption reserve, translation reserve and retained
earnings, but excluding the interest rate derivatives.
Consistent with others in the industry, the Group monitors its capital by its debt to equity ratio (gearing levels). This is calculated as the net
debt (loans less cash and cash equivalents) as a percentage of the equity calculated as follows:
2024
£’000
2023
£’000
Total debt
27,665
28,060
Less cash and cash equivalents
(2,926)
(6,978)
Net debt
24,739
21,082
Total equity
50,559
48,313
48.9%
43.6%
The Group does not have any externally imposed capital requirements.
Following the introduction of IFRS 16 total debt includes lease liabilities.
72 London & Associated Properties PLC 2024
financial statements Notes to the financial statements
22. FINANCIAL INSTRUMENTS CONTINUED
FINANCIAL ASSETS
The Group’s principal financial assets are bank balances and cash, trade and other receivables, investments and assets held for sale. The
Group has no significant concentration of credit risk as exposure is spread over a large number of counterparties and customers. The credit
risk in liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit ratings assigned by
international credit–rating agencies. The Group’s credit risk is primarily attributable to its trade receivables. The amounts presented in the
balance sheet are net of allowances for doubtful receivables, estimated by the Group’s management based on prior experience and the
current economic environment.
FINANCIAL ASSETS MATURITY
Cash and cash equivalents all have a maturity of less than three months.
2024
£’000
2023
£’000
Cash at bank and in hand
2,926
6,978
These funds are primarily invested in short term bank deposits maturing within one year bearing interest at the bank’s variable rates.
Financial liabilities maturity
The following table sets out the maturity profile of contractual undiscounted cashflows of financial liabilities as at 31 December:
Repayment of borrowings
2024
£’000
2023
£’000
Bank loans and overdrafts:
Repayable on demand or within one year
7,163
8,873
Repayable between two and five years
17,929
17,211
25,092
26,084
Certain borrowing agreements contain financial and other conditions that if contravened by the Group, could alter the repayment profile.
23. DEFERRED TAX (LIABILITY) / ASSET
2024
£’000
2023
£’000
Balance at 1 January
432
(752)
Transferred to consolidated income statement
(1,153)
1,011
Exchange adjustment
22
173
Balance at 31 December
(699)
432
The deferred tax balance comprises the following:
Revaluation of properties
(1,598)
(1,265)
Accelerated capital allowances
(5,626)
(4,558)
Short-term timing differences
319
560
Unredeemed capital deductions
3,024
2,665
Losses and other deductions
3,182
3,030
Deferred tax (liability) / asset at end of year:
(699)
432
There is no time limit in respect of the Group tax loss relief.
In addition, the Group has unused losses and reliefs with a potential value of £10,991,000 (2023: £12,345,000), which have not been
recognised as a deferred tax asset. As the Group returns to profit, these losses and reliefs can be utilised. The valuation of losses is based
on a 25% tax rate (2023: 25%).
24. SHARE CAPITAL
The Company has one class of ordinary shares which carry no right to fixed income.
NUMBER OF
ORDINARY 10P
SHARES
2024
NUMBER OF
ORDINARY 10P
SHARES
2023
2024
£’000
2023
£’000
Authorised: ordinary shares of 10p each
110,000,000
110,000,000
11,000
11,000
Allotted, issued and fully paid share capital
85,542,711
85,542,711
8,554
8,554
Less: held in Treasury (see below)
(216,715)
(216,715)
(22)
(22)
“Issued share capital” for reporting purposes
85,325,996
85,325,996
8,532
8,532
financial statements Notes to the financial statements
London & Associated Properties PLC 2023 73
financial statements Notes to the financial statements
24. SHARE CAPITAL CONTINUED
Treasury shares
NUMBER OF ORDINARY
10P SHARES
COST / ISSUE VALUE
2024
2023
2024
2023
£’000
£’000
Shares held in Treasury at 1 January
216,715
216,715
144
144
Shares held in Treasury at 31 December
216,715
216,715
144
144
Share Option Schemes
Employees’ share option scheme (Approved scheme)
At 31 December 2024 there were no options to subscribe for ordinary shares outstanding, issued under the terms of the Employees’ Share
Option Scheme.
This share option scheme was approved by members in 1986 and has been approved by His Majesty’s Revenue and Customs (HMRC).
There are no performance criteria for the exercise of options under the Approved scheme, as this was set up before such requirements
were considered to be necessary.
A summary of the shares allocated and options issued under the scheme up to 31 December 2024 is as follows:
CHANGES DURING THE YEAR
AT 1
JANUARY
2024
OPTIONS
EXERCISED
OPTIONS
GRANTED
OPTIONS
LAPSED
AT 31
DECEMBER
2024
Shares issued to date
2,367,604
–
–
–
2,367,604
Shares allocated over which options have not been granted
1,549,955
–
–
–
1,549,955
Total shares allocated for issue to employees under the scheme
3,917,559
–
–
–
3,917,559
Non–approved Executive Share Option Scheme (Unapproved scheme)
A share option scheme known as the “Non–approved Executive Share Option Scheme” which does not have HMRC approval was set up
during 2000. At 31 December 2024 there were no options to subscribe for ordinary shares outstanding.
The exercise of options under the Unapproved scheme is subject to the satisfaction of objective performance conditions specified by the
remuneration committee which conforms to institutional shareholder guidelines and best practice provisions.
A summary of the shares allocated and options issued under the scheme up to 31 December 2024 is as follows:
CHANGES DURING THE YEAR
AT 1
JANUARY
2024
OPTIONS
EXERCISED
OPTIONS
GRANTED
OPTIONS
LAPSED
AT 31
DECEMBER
2024
Shares issued to date
450,000
–
–
–
450,000
Shares allocated over which options have not yet been granted
550,000
–
–
–
550,000
Total shares allocated for issue to employees under the scheme
1,000,000
–
–
–
1,000,000
The Bisichi PLC Unapproved Option Schemes
Details of the share option schemes in Bisichi are as follows:
YEAR OF GRANT
SUBSCRIPTION
PRICE PER SHARE
PERIOD WITHIN
WHICH OPTIONS
EXERCISABLE
NUMBER OF SHARES
FOR WHICH OPTIONS
OUTSTANDING AT
31 DECEMBER 2023
NUMBER OF
SHARE OPTIONS
ISSUED/EXERCISED/
(CANCELLED)
DURING YEAR
NUMBER OF SHARES
FOR WHICH OPTIONS
OUTSTANDING AT
31 DECEMBER 2024
2022
352.0p Feb 2022 - Feb 2032
760,000
–
760,000
The exercise of options under the Unapproved Share Option Schemes, for certain option issues, is subject to the satisfaction of the
objective performance conditions specified by the Bisichi remuneration committee, which will conform to institutional shareholder
guidelines and best practice provisions in force from time to time.
There are no performance or service conditions attached to 2022 options which are outstanding at 31 December 2024.
2024
NUMBER
2024
WEIGHTED
AVERAGE
EXERCISE PRICE
2023
NUMBER
2023
WEIGHTED
AVERAGE
EXERCISE PRICE
Outstanding at 1 January
760,000
352.0p
760,000
352.0p
Outstanding at 31 December
760,000
352.0p
760,000
352.0p
Exercisable at 31 December
760,000
352.0p
760,000
352.0p
74 London & Associated Properties PLC 2024
financial statements Notes to the financial statements
25. NON–CONTROLLING INTEREST (“NCI”)
2024
£’000
2023
£’000
As at 1 January
19,823
21,169
Share of profit for the year
3,177
70
Dividends paid
(436)
(936)
Exchange movement
(90)
(480)
As at 31 December
22,474
19,823
The following subsidiaries had material NCI:
Bisichi PLC
Black Wattle Colliery (Pty) Ltd
Summarised financial information for these subsidiaries is set out below. The information is before inter–company eliminations with other
companies in the Group.
BISICHI PLC
2024
£’000
2023
£’000
Revenue
52,289
49,253
Profit for the year attributable to owners of the parent
1,117
259
Profit for the year attributable to NCI
2,288
51
Profit for the year
3,405
310
Other comprehensive expense attributable to owners of the parent
(77)
(469)
Other comprehensive expense attributable to NCI
(45)
(206)
Other comprehensive expense for the year
(122)
(675)
Balance sheet
Non–current assets
48,707
45,292
Current assets
12,974
14,489
Total assets
61,681
59,781
Current liabilities
(18,962)
(24,241)
Non–current liabilities
(6,589)
(1,946)
Total liabilities
(25,551)
(26,187)
Net current assets at 31 December
36,130
33,594
Cash flows
From operating activities
9,433
2,798
From investing activities
(7,929)
(6,479)
From financing activities
(2,341)
(4,235)
Net cash flows
(837)
(7,916)
The non–controlling interest comprises of a 37.5% shareholding in Black Wattle Colliery (Pty) Ltd, a coal mining company incorporated in
South Africa.
Summarised financial information reflecting 100% of the underlying subsidiary’s relevant figures, is set out below.
BLACK WATTLE COLLIERY (PTY) LIMITED (“BLACK WATTLE”)
2024
£’000
2023
£’000
Revenue
48,335
47,423
Expenses
(43,549)
(47,275)
Profit for the year
4,786
148
Total comprehensive income for the year
4,786
148
Balance sheet
Non–current assets
22,704
18,843
Current assets
9,414
9,033
Current liabilities
(18,549)
(20,460)
Non–current liabilities
(3,740)
(2,252)
Net assets at 31 December
9,829
5,164
25. NON–CONTROLLING INTEREST (“NCI”) CONTINUED
The non-controlling interest originates from the disposal of a 37.5% shareholding in Black Wattle Colliery (Pty) Ltd in 2010 when the total
issued share capital in Black Wattle Colliery (Pty) Ltd was increased from 136 shares to 1,000 shares at par of R1 (South African Rand)
through the following shares issue:
• a subscription for 489 ordinary shares at par by Bisichi Mining (Exploration) Limited increasing the number of shares held from 136
ordinary shares to a total of 625 ordinary shares;
• a subscription for 110 ordinary shares at par by Vunani Mining (Pty) Ltd;
• a subscription for 265 “A” shares at par by Vunani Mining (Pty) Ltd
On 12 April 2022 the total issued share capital in Black Wattle Colliery (Pty) Ltd was increased further from 1000 shares to 1002 shares at
par of R1 through the following share issue:
• a subscription of 1 “B” Share at par by Bisichi Mining (Exploration Limited);
• a subscription of 1 “B” Share at par by Vunani Mining (Pty) Ltd
Bisichi Mining (Exploration) Limited is a wholly owned subsidiary of Bisichi PLC incorporated in England and Wales.
Vunani Mining (Pty) Ltd is a South African Black Economic Empowerment company and minority shareholder in Black Wattle Colliery (Pty) Ltd.
The “A” shares rank pari passu with the ordinary shares save that they will have no dividend rights until such time as the dividends paid by
Black Wattle Colliery (Pty) Ltd on the ordinary shares subsequent to 30 October 2008 will equate to R832,075,000.
A non-controlling interest of 15% in Black Wattle Colliery (Pty) Ltd is recognised for all profits distributable to the 110 ordinary shares held
by Vunani Mining (Pty) Ltd from the date of issue of the shares (18 October 2010). An additional non-controlling interest will be recognised
for all profits distributable to the 265 “A” shares held by Vunani Mining (Pty) Ltd after such time as the profits available for distribution, in
Black Wattle Colliery (Pty) Ltd, before any payment of dividends after 30 October 2008, exceeds R832,075,000.
The “B” shares rank pari passu with the ordinary shares save that they have sole rights to the distributable profits attributable to certain
mining reserves held by Black Wattle Colliery (Pty) Ltd. A non-controlling interest is recognised for all profits distributable to the “B” shares
held by Vunani Mining (Pty) Ltd from the date of issue of the shares (12 April 2022).
26. RELATED PARTY TRANSACTIONS
COST RE-
CHARGED
(BY) / TO RE-
LATED
PARTY
£’000
AMOUNTS
OWED
(TO) / BY RE-
LATED
PARTY
£’000
ADVANCED
BY RELATED
PARTY
£’000
Related party:
Simon Heller Charitable Trust
Current account
(63)
–
63
Loan account
–
(700)
–
Directors and key management
M A Heller, J A Heller and A R Heller
18
(i)
–
(18)
J Mintz
–
10
–
C A Parritt
(18)
(ii)
–
18
R Priest
(35)
(ii)
(9)
35
London & Associated Securities
–
(ii)
–
–
Totals at 31 December 2024
(98)
(699)
98
Totals at 31 December 2023
(98)
(699)
–
Nature of costs recharged – (i) Property management fees (ii) Consultancy fees.
Directors
JA Heller and AR Heller have an interest in a number of private property companies. London & Associated Properties PLC uses agents to
assist with day to day property management matters. In their agency capacity those agents also provide support to these private property
companies. The approximate value of the services amounted to £61,000 (2023 £70,000).
In addition the Company received management fees of £10,000 (2023: £10,000) for work done for two charitable foundations, the
Michael & Morven Heller Charitable Foundation and the Simon Heller Charitable Trust.
Until his death Sir Michael Heller was also interested in the private property companies in which JA Heller and AR Heller are interested
The Simon Heller Trust has placed on deposit with LAP £700,000 at an interest rate of 9% which is refundable on demand.
An interest free loan of £10,000 made to J Mintz remained outstanding at year end.
C A Parritt provided consultancy services to the Company on an invoiced fee basis.
R Priest provided consultancy services to the Company on an invoiced fee basis.
In 2012 a loan was made by Bisichi to one of the Bisichi directors, Mr A R Heller, for £116,000. Interest is payable on the director’s Loan at
a rate of 6.14 per cent. There is no fixed repayment date for the director’s Loan. The loan amount outstanding at year end was £41,000
(2023: £41,000) and no repayment (2023: £nil) was made during the year.
The directors are considered to be the only key management personnel and their remuneration including employer’s national insurance for
the year was £2,317,000 (2023: £2,279,000). All other disclosures required, including interest in share options in respect of those directors,
are included within the remuneration report.
financial statements Notes to the financial statements
London & Associated Properties PLC 2023 75
76 London & Associated Properties PLC 2024
financial statements Notes to the financial statements
27. EMPLOYEES
The average number of employees, including directors, of the Group during the year was as follows:
2024
2023
Production
200
209
Administration
27
39
227
248
Staff costs during the year were as follows:
2024
£’000
2023
£’000
Salaries and other costs
8,176
7,825
Social security costs
384
497
Pension costs
538
538
9,098
8,860
28. CAPITAL COMMITMENTS
There are no commitments for capital expenditure approved or contracted at the year end (2023: £nil).
29. LEASE RENTALS RECEIVABLE
The Group leases out its investment properties to tenants under operating leases. The future aggregate minimum rentals receivable under
non–cancellable operating leases are as follows:
2024
£’000
2023
£’000
Not later than one year
3,024
2,920
Later than one year, but not more than two years
2,683
2,569
Later than two years, but not more than three years
2,263
2,206
Later than three years, but not more than four years
1,941
1,756
Later than four years, but not more than five years
1,514
1,471
More than 5 years
11,738
11,208
23,163
22,130
30. CONTINGENT LIABILITIES AND EVENTS AFTER THE REPORTING PERIOD
There were no contingent liabilities at 31 December 2024 (2023: £220,000), except as disclosed in note 22. An exit fee of £220,000 due
to Paragon, the lender to our development in West Ealing, has been incurred and accrued to the balance of the loan. This was disclosed as a
contingent liability in 2023.
Bank guarantees have been issued by the bankers of Black Wattle Colliery (Pty) Limited on behalf of the Company to third parties. The
guarantees are secured against the assets of the Company and have been issued in respect of the following:
2024
£’000
2023
£’000
Rail siding & transportation
42
43
Rehabilitation of mining land
1,590
1,614
Water & electricity
41
41
1,673
1,698
The interpretation of laws and regulations in South Africa where Bisichi 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 Bisichi, based on legal advice, considers that it is improbable that there will be
an outflow of economic resources, no provision is recognised.
Black Wattle Colliery (Pty) Ltd is currently 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 years ended 31 December 2020. As at 24 April 2025, Bisichi has
been advised that it has a strong legal case, that it has complied fully with the legislation and, therefore, no economic outflow is expected to
occur. Because of the nature and complexity of the dispute, the possible financial effect of a negative decision cannot be measured reliably.
Accordingly, no provision has been booked at the year end. At this stage, Bisichi believes that the dispute will be resolved in its favour.
There have been no events or transaction that require adjustment or disclosure.
London & Associated Properties PLC 2024 77
financial statements Notes to the financial statements
31. COMPANY FINANCIAL STATEMENTS
Company balance sheet at 31 December 2024
NOTES
2024
£’000
2023
£’000
Fixed assets
Tangible assets
31.3
987
443
Other investments:
Associated company
31.4
489
489
Subsidiaries and others
31.4
164
672
653
1,161
1,640
1,604
Current assets
Debtors
31.5
13,504
13,444
Bank balances
1,549
3,398
15,053
16,842
Creditors
Amounts falling due within one year
31.6
(1,564)
(1,897)
Net current assets
13,489
14,945
Total assets less current liabilities
15,129
16,549
Creditors
Amounts falling due after more than one year
31.7
(539)
(5)
Net assets
14,590
16,544
Capital and reserves
Share capital
31.9
8,554
8,554
Share premium account
4,866
4,866
Capital redemption reserve
47
47
Treasury shares
31.9
(144)
(144)
Retained earnings
1,267
3,221
Shareholders’ funds
14,590
16,544
The loss for the financial year was £1,954,000 (2023: £2,355,000)
These financial statements were approved by the board of directors and authorised for issue on 29 April 2025 and signed on its behalf by:
John Heller
Jonathan Mintz
Company Registration No. 341829
Director
Director
78 London & Associated Properties PLC 2024
financial statements Notes to the financial statements
COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
SHARE
CAPITAL
£’000
SHARE
PREMIUM
£’000
CAPITAL
REDEMPTION
RESERVE
£’000
TREASURY
SHARES
£’000
RETAINED
EARNINGS
EXCLUDING
TREASURY
SHARES
£’000
TOTAL
EQUITY
£’000
Balance at 1 January 2023
8,554
4,866
47
(144)
5,576
18,899
Loss for the year
–
–
–
–
(2,355)
(2,355)
Total comprehensive expense
–
–
–
–
(2,355)
(2,355)
Balance at 31 December 2023
8,554
4,866
47
(144)
3,221
16,544
Loss for the year
–
–
–
–
(1,954)
(1,954)
Total comprehensive expense
–
–
–
–
(1,954)
(1,954)
Balance at 31 December 2024
8,554
4,866
47
(144)
1,267
14,590
£1.3 million (2023: £3.2 million) of retained earnings (excluding treasury shares) is distributable.
31.1. COMPANY
Accounting policies
The following are the main accounting policies of the Company:
Basis of preparation
The financial statements have been prepared on a going concern basis and in accordance with Financial Reporting Standard 101 ’Reduced
Disclosure Framework’ (FRS 101) and Companies Act 2006. The financial statements are prepared under the historical cost convention as
modified to include the revaluation of freehold and leasehold properties and fair value adjustments in respect of current asset investments
and interest rate hedges.
The results of the Company are included in the consolidated financial statements. No profit or loss is presented by the Company as
permitted by Section 408 of the Companies Act 2006.
In these financial statements, the company has applied the exemptions available under FRS 101 in respect of the following disclosures:
• Cash Flow Statement and related notes;
• Comparative period reconciliations for share capital, tangible fixed assets and intangible assets;
• Disclosures in respect of transactions with wholly owned subsidiaries;
• Disclosures in respect of capital management;
• The effects of new but not yet effective IFRSs;
• Disclosures in respect of the compensation of Key Management Personnel.
As the consolidated financial statements include the equivalent disclosures, the Company has also taken the exemptions under FRS 101
available in respect of the following disclosures:
• IFRS 2 Share Based Payments in respect of Group settled share based payments;
• The disclosures required by IFRS 7 and IFRS 13 regarding financial instrument disclosures have not been provided apart from those
which are relevant for the financial instruments which are held at fair value and are not either held as part of the trading portfolio or
derivatives.
Key judgements and estimates
The preparation of the financial statements requires management to make assumptions and estimates that may affect the reported amounts
of assets and liabilities and the reported income and expenses, further details of which are set out below. Although management believes
that the assumptions and estimates used are reasonable, the actual results may differ from those estimates. Further details of the estimates
are contained in the Directors’ Report and in the Group accounting policies.
Investments in subsidiaries, associated undertakings and joint ventures
Investments in subsidiaries, associated undertakings and joint ventures are held at cost less accumulated impairment losses.
Fair value measurements of investment properties and investments
An assessment of the fair value of certain assets and liabilities, in particular investment properties, is required. In such instances, fair value
measurements are estimated based on the amounts for which the assets and liabilities could be exchanged between market participants. To
the extent possible, the assumptions and inputs used take into account externally verifiable inputs. However, such information is by its
nature subject to uncertainty. The fair value measurement of the investment properties may be considered to be less judgemental where
external valuers have been used as is the case with the Company.
London & Associated Properties PLC 2024 79
financial statements Notes to the financial statements
31.1. COMPANY CONTINUED
The following accounting policies are consistent with those of the Group and are disclosed on page 42 to 48 of the Group financial
statements.
• Revenue
• Property operating expenses
• Employee benefits
• Financial instruments
• Investment properties
• Other assets and depreciation
• Assets held for sale
• Income taxes
• Leases
31.2. RESULT FOR THE FINANCIAL YEAR
The Company’s result for the year was a loss of £1,954,000 (2023: £2,355,000). In accordance with the exemption conferred by Section
408 of the Companies Act 2006, the Company has not presented its own profit and loss account.
31.3. TANGIBLE ASSETS
INVESTMENT PROPERTIES
OFFICE
TOTAL
£’000
FREEHOLD
£’000
LEASEHOLD
OVER 50 YEARS
£’000
LEASEHOLD
UNDER 50
YEARS
£’000
EQUIPMENT
AND MOTOR
VEHICLES
£’000
OFFICE
BUILDING
£’000
Cost or valuation at 1 January 2024
1,037
–
–
175
66
796
Additions in the year
831
–
–
–
–
831
Disposals
(750)
–
–
–
–
(750)
Decrease on revaluation
(20)
–
–
(20)
–
–
Cost or valuation at 31 December 2024
1,098
–
–
155
66
877
Representing assets stated at:
Valuation
175
–
–
175
–
–
Cost
943
–
–
–
66
877
1,118
–
–
175
66
877
Depreciation at 1 January 2024
594
–
–
–
21
573
Charge for the year
267
–
–
–
–
267
Disposals
(750)
–
–
–
–
(750)
Depreciation at 31 December 2024
111
–
–
–
21
90
Net book value at 1 January 2024
443
–
–
175
45
223
Net book value at 31 December 2024
987
–
–
155
45
787
The freehold and leasehold properties, excluding the present value of head leases and directors’ valuations, were valued as at 31 December
2024 by professional firms of chartered surveyors. The valuations were made at fair value.
2024
£’000
2023
£’000
Allsop LLP
150
170
Add: Present value of headleases
5
5
155
175
80 London & Associated Properties PLC 2024
financial statements Notes to the financial statements
31.3. TANGIBLE ASSETS CONTINUED
The historical cost of investment properties was as follows:
FREEHOLD
£’000
LEASEHOLD
OVER 50 YEARS
£’000
LEASEHOLD
UNDER 50
YEARS
£’000
Cost at 1 January 2024
–
–
785
Cost at 31 December 2024
–
–
785
Head leases on investment property represent the value attributed to the right of the Company to occupy and use investment property that
has a head lease interest. In the current year total cash outflow for head leases is £nil (2023: £nil). A number of these leases provide for
payment of contingent rent, usually a proportion of net rental income, in addition to fixed rents.
Office building represents the value attributed under IFRS 16 to the right of the Company to occupy its sole office building. In the current
year total cash outflow for the office lease liability is £0.3 million (2023: £0.3 million).
31.4. OTHER INVESTMENTS
COST OR VALUATION
TOTAL
£’000
SHARES IN
SUBSIDIARY
COMPANIES
£’000
SHARES IN
JOINT
VENTURES
£’000
SHARES IN
ASSOCIATE
£’000
At 1 January 2024
1,161
508
164
489
Impairment provision
(508)
(508)
–
–
At 31 December 2024
653
–
164
489
Subsidiary companies
Details of the Company’s subsidiaries, joint ventures and associates are set out in note 12. Dragon is a joint venture and Bisichi and West
Ealing are associates of the Company.
31.5. DEBTORS
2024
£’000
2023
£’000
Trade debtors
15
27
Amounts due from associate and joint ventures
1,945
1,978
Amounts due from subsidiary companies
11,215
11,138
Other debtors
240
157
Prepayments and accrued income
89
144
13,504
13,444
31.6. CURRENT LIABILITIES
Creditors: amounts falling due within one year
2024
£’000
2023
£’000
Trade payables
76
45
Amounts owed to subsidiary companies
–
382
Amounts owed to joint ventures
–
33
Other taxation and social security costs
105
118
Lease liabilities
257
223
Other creditors
719
738
Accruals and deferred income
407
358
1,564
1,897
Borrowings
The company has no bank borrowings.
London & Associated Properties PLC 2024 81
financial statements Notes to the financial statements
31.7. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024
£’000
2023
£’000
Lease liabilities
539
5
539
5
Lease liabilities
2024
TOTAL
£’000
2024
HEAD LEASES
ON
INVESTMENT
PROPERTY1
£’000
2024
OFFICE
£’000
2023
TOTAL
£’000
Minimum lease payments fall due:
Within one year
323
–
323
239
Second to fifth year
596
2
594
2
After five years
12
12
–
12
931
14
917
253
Future finance charges on lease liabilities
(135)
(9)
(126)
(25)
Present value of lease liabilities
796
5
791
228
Present value of lease liabilities:
Within one year
257
–
257
223
Second to fifth year
536
2
534
2
After five years
3
3
–
3
796
5
791
228
1 Many head leases on investment properties provide for contingent rent in addition to the rents above, usually a proportion of rental income.
Lease liabilities greater than one year are £539,000 (2023: £5,000).
Lease liabilities are effectively secured as the rights to the leased asset revert to the lessor in the event of default.
31.8. DEFERRED TAX LIABILITY
2024
£’000
2023
£’000
Deferred Taxation
Balance at 1 January
–
–
Balance at 31 December
–
–
The deferred tax balance comprises the following:
Accelerated capital allowances
(137)
(132)
Short–term timing differences
290
290
Revaluation of investment properties
(7)
(4)
Loss relief
(146)
(154)
Deferred tax liability at year end
–
–
82 London & Associated Properties PLC 2024
financial statements Notes to the financial statements
31.9. SHARE CAPITAL
Details of share capital, treasury shares and share options are set out in note 24.
31.10. RELATED PARTY TRANSACTIONS
COST RE-
CHARGED
TO (BY) RELAT-
ED
PARTY
£’000
AMOUNTS
OWED
BY (TO) RELAT-
ED
PARTY
£’000
ADVANCED TO
(BY) RELATED
PARTY
£’000
Related party:
Dragon Retail Properties Limited
Current account
36
(i)
76
73
West Ealing Projects Limited
Current account
–
1,945
327
Bisichi PLC
Current account
200
(ii)
–
(200)
Simon Heller Charitable Trust
Current account
(63)
–
63
Loan account
–
(700)
–
Directors and key management
M A Heller, J A Heller and A R Heller
18
(i)
–
(18)
J Mintz
–
10
–
C A Parritt
(18)
(iii)
–
18
R Priest
(35)
(iii)
(9)
35
Totals at 31 December 2024
138
1,322
298
Totals at 31 December 2023
138
1,113
465
Nature of costs recharged – (i) Management fees (ii) Property management fees (iii) Consultancy fees
During the period, the Company entered into transactions, in the ordinary course of business, with other related parties. The company has
taken advantage of the exemption under paragraph 8(k) of FRS101 not to disclose transactions with wholly owned subsidiaries.
Dragon Retail Properties Limited – ‘Dragon’ is owned equally by the Company and Bisichi PLC.
Bisichi PLC – The company has 41.602 per cent ownership of ‘Bisichi’.
Other details of related party transactions are given in note 26.
31.11. EMPLOYEES
The average weekly number of employees of the company during the year were as follows:
2024
2023
Directors & Administration
11
24
Staff costs during the year were as follows:
2024
£’000
2023
£’000
Salaries
1,121
1,330
Social Security costs
125
171
Pension costs
91
89
1,337
1,590
31.12. CAPITAL COMMITMENTS
There were no capital commitments at 31 December 2024 (2023 – none).
London & Associated Properties PLC 2024 83
financial statements Notes to the financial statements
31.13. FUTURE AGGREGATE MINIMUM RENTALS RECEIVABLE
The Company leases out its investment properties to tenants under operating leases. The future aggregate minimum rentals receivable
under non–cancellable operating leases are as follows:
Future aggregate minimum rentals receivable
2024
£’000
2023
£’000
1 year
5
7
2 years
–
5
5
12
31.14. CONTINGENT LIABILITIES AND POST BALANCE SHEET EVENTS
There were no contingent liabilities at 31 December 2024 (2023: none).
There have been no events or transactions that require adjustment or disclosure.
84 London & Associated Properties PLC 2024
financial statements
financial statements
Five year financial summary
2024
£M
2023
£M
2022
£M
2021
£M
2020
£M
Portfolio size
Investment properties–LAP^
24
22
23
25
31
Investment properties–Dragon Retail Properties
2
2
2
2
2
Investment properties–Bisichi ^
11
11
10
11
10
Assets held for sale-LAP
-
1
–
1
–
Inventories-LAP
9
9
23
25
25
46
45
58
64
68
Portfolio activity
£M
£M
£M
£M
£M
Acquisitions
-
-
2.53
0.09
0.33
Disposals (note 6, 13)
-
(14.75)
(5.70)
(4.17)
–
Additions to inventory at cost
1.01
0.78
0.75
1.02
0.39
1.01
(13.97)
(2.42)
(3.06)
0.72
Consolidated income statement
£M
£M
£M
£M
£M
Group income
54.92
53.18
100.24
56.48
35.02
Profit/(loss) before tax
4.42
(3.48)
33.17
1.52
(10.15)
Taxation
(1.62)
(0.31)
(12.00)
(0.70)
(1.09)
(Loss)/profit attributable to shareholders
(0.37)
(3.86)
2.70
(0.15)
(6.70)
(Loss)/profit per equity share – basic and diluted
(0.44)p
(4.52)p
3.17p
(0.18)p
(7.86)p
Dividend per share
0.00p
0.00p
0.00p
0.00p
0.00p
Consolidated balance sheet
£M
£M
£M
£M
£M
Shareholders’ funds attributable to equity shareholders
28.09
28.49
32.55
29.70
29.86
Net borrowings, excluding lease obligations
22.17
19.11
23.47
30.15
33.93
Net assets per share
32.91p
33.38p
38.14p
34.78p
34.99p
Consolidated cash flow statement
£M
£M
£M
£M
£M
Cash generated from operations
10.35
3.69
39.39
5.82
1.64
Notes:
^ Excluding the present value of head leases
John Heller
Jonathan Mintz
Company Registration No. 341829
Director
Director
LONDON & ASSOCIATED PROPERTIES PLC
12 LITTLE PORTLAND STREET
LONDON W1W 8BJ
EMAIL: ADMIN@LAP.CO.UK
www.lap.co.uk
FSC® C001785