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 oftheremuneration 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
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 fi nancial statements for 2024 have been
prepared to refl ect 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
signifi cant 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 fi gures
complex and less transparent. Property company accounts are
already subject to signifi cant 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 fl ow is the most important factor infl uencing the success of
a property business. We explain the factors affecting the property
business fi rst, 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 cashfl ow.
• Maintain minimal exposure to the fashion led or shopping centre
retail sector.
• Ensure gearing is at an appropriate level.
• Maintain suffi cient 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 diversifi ed 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 fi nancial diffi culty. 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 REPORTSTRATEGIC 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 REPORTSTRATEGIC 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 REPORTSTRATEGIC 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 CO
2
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 CO
2
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 CO
2
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 tCO
2
e 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 tCO
2
e 1,223 1,182 4%
Intensity ratio (tCO
2
e/£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 tCO
2
e 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 tCO
2
e 1,048 1,055 -1%
Table 4. Coal mining carbon footprint
2024
CO
2
e
TONNES
2023
CO
2
e
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/tCO
2
e 69,140 47,310
Intensity:
Intensity 1 Tonnes of CO
2
per pound sterling of revenue 0.0013 0.0010
Intensity 2 Tonnes of CO
2
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
GOVERNANCEGOVERNANCE
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
GOVERNANCEGOVERNANCE
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
GOVERNANCEGOVERNANCE
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
GOVERNANCEGOVERNANCE
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
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
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).
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:
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.
For and on behalf of
Kreston Reeves LLP
Chartered Accountants
Statutory Auditor
London
Date: 29 April 2025
44 London & Associated Properties PLC 2024
| 2024 | 2023 | ||
| NOTES | £'000 | £'000 | |
Group revenue | 1 | ||
Operating costs | 1 | ( | ( |
Operating profit | |||
Finance income | 4 | ||
Finance expenses | 4 | ( | ( |
Result before revaluation and other movements | ( | ||
| Non–cash changes in valuation of assets and liabilities and other movements | |||
Exchange losses | ( | ( | |
Increase/(decrease) in value of investment properties | 9 | ( | |
Profit on disposal of fixed assets | |||
Gain on investments held at fair value (Bisichi) | |||
Gain/(loss) on disposal of subsidiary | 6 | ( | |
Decrease in value of other investments | ( | ||
Profit/(loss) for the year before taxation | 2 | ( | |
Income tax charge | 5 | ( | ( |
Profit/(loss) for the year | ( | ||
| Attributable to: | |||
Equity holders of the Company | ( | ( | |
Non-controlling interest | 25 | ||
Profit/(loss) for the year | ( | ||
| Earnings per share | |||
Loss per equity share - basic and diluted | 8 | ( | ( |
Consolidated statement of comprehensive income
for the year ended 31 December 2024
| 2024 | 2023 | |
| £'000 | £'000 | |
Profit/(loss) for the year | ( | |
| Other comprehensive expense: | ||
| Items that may be subsequently recycled to the income statement: | ||
Exchange differences on translation of Bisichi PLC foreign operations | ( | ( |
Total comprehensive income/(expense) for the year net of tax | ( | |
| Attributable to: | ||
Equity shareholders | ( | ( |
Non–controlling interest | ( | |
Total comprehensive income/(expense) for the year net of tax | ( | |
Total comprehensive expense per equity share - basic and diluted | ( | ( |
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
| 2024 | 2023 | ||
| NOTES | £'000 | £'000 | |
| Non–current assets | |||
Market value of properties attributable to Group | 9 | ||
Present value of head leases | 9 | ||
Property | |||
Mining reserves, property, plant and equipment | 10 | ||
Other investments at fair value through profit and loss (“FVPL”) | 15 | ||
Deferred tax | 23 | ||
| Current assets | |||
Inventories - Property | 13 | ||
Inventories - Mining | 14 | ||
Assets held for sale | 11 | ||
Trade and other receivables | 16 | ||
Investments in listed securities held at FVPL | 17 | ||
Cash and cash equivalents | |||
Total assets | |||
| Current liabilities | |||
Trade and other payables | 18 | ( | ( |
Borrowings | 19 | ( | ( |
Lease liabilities | 20 | ( | ( |
Current tax liabilities | ( | ( | |
( | ( | ||
| Non–current liabilities | |||
Borrowings | 19 | ( | ( |
Lease liabilities | 20 | ( | ( |
Provisions | 21 | ( | ( |
Deferred tax liabilities | 23 | ( | |
( | ( | ||
Total liabilities | ( | ( | |
Net assets | |||
| Equity attributable to the owners of the parent | |||
Share capital | 24 | ||
Share premium account | |||
Translation reserve (Bisichi PLC) | ( | ( | |
Capital redemption reserve | |||
Retained earnings (excluding treasury shares) | |||
Treasury shares | 24 | ( | ( |
Retained earnings | |||
Total equity attributable to equity shareholders | |||
Non–controlling interest | 25 | ||
Total equity | |||
Net assets per share attributable to equity shareholders | 8 | ||
Diluted net assets per share | 8 |
Director Director
46 London & Associated Properties PLC 2024
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Consolidated statement of changes in shareholders’
equity
for the year ended 31 December 2024
SHARE
| RETAINED | |||||||||
| EARNINGS | TOTAL | ||||||||
| EXCLUD- | EXCLUDING | NON– | |||||||
| TRANSLA- | CAPITAL | ING | NON– | CON- | |||||
| TION | REDEMP- | TREAS- | TREAS- | CON- | TROLLING | ||||
| CAPI- | SHARE | RE- | TION | URY | URY | TROLLING | INTER- | TOTAL | |
| TAL | PREMIUM | SERVES | RESERVE | SHARES | SHARES | INTERESTS | ESTS | EQUITY | |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
Balance at 1 January 2023 | ( | ( | |||||||
(Loss)/profit for year | ( | ( | ( | ||||||
| Other comprehensive expense: | |||||||||
Currency translation | ( | ( | ( | ( | |||||
| Transactions with owners: | |||||||||
| Dividends – non–controlling | |||||||||
interests | ( | ( | |||||||
Balance at 31 December 2023 | ( | ( | |||||||
Profit for year | ( | ( | |||||||
| Other comprehensive expense: | |||||||||
Currency translation | ( | ( | ( | ( | |||||
| Transactions with owners: | |||||||||
| Dividends – non–controlling | |||||||||
interests | ( | ( | |||||||
Balance at | ( | ( |
London & Associated Properties PLC 2024 47
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Consolidated cash flow statement
for the year ended 31 December 2024
NOTES
2024
| 2023 | |||
| £’000 | £’000 | ||
| Operating activities | |||
Profit/(loss) for the year before taxation | ( | ||
Finance income | 4 | ( | ( |
Finance expense | 4 | ||
(Increase)/decrease in value of investment properties | 9 | ( | |
Gain on investments held at FVPL (Bisichi) | ( | ( | |
(Profit)/loss on disposal of subsidiary | ( | ||
Decrease in value of other investments | |||
Depreciation | 10 | ||
Impairment of inventory - property | |||
Profit on disposal of non-current assets | ( | ||
Development expenditure on inventories - property | 13 | ( | ( |
Exchange adjustments | |||
Change in inventories - mining | ( | ||
Change in receivables | ( | ( | |
Change in payables | |||
Cash generated from operations | |||
Income tax (paid) / refunded | ( | ||
Cash inflows from operating activities | |||
| Investing activities | |||
Disposal of subsidiary | ( | ||
Acquisition of mining reserves, plant and equipment | ( | ( | |
Sale of plant and equipment | |||
Disposal of other investments | |||
Acquisition of other investments | ( | ( | |
Interest received | |||
Cash outflows from investing activities | ( | ( | |
| Financing activities | |||
Interest paid | ( | ( | |
Interest obligation under finance leases | ( | ( | |
Repayment of lease liability | ( | ( | |
Receipt of bank loan - Bisichi PLC | |||
Repayment of bank loan - Bisichi PLC | ( | ( | |
Repayment of bank loan - Dragon Retail Properties Ltd | ( | ( | |
Receipt of bank loan - London & Associated Properties PLC | |||
Repayment of bank loan - London & Associated Properties PLC | ( | ( | |
Equity dividends paid - Bisichi PLC | ( | ( | |
Cash outflows from financing activities | ( | ( | |
Net decrease in cash and cash equivalents | ( | ( | |
Cash and cash equivalents at beginning of year | |||
Exchange adjustment | |||
Cash and cash equivalents at end of year |
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 | 2023 | ||
| £’000 | £’000 | ||
Cash and cash equivalents (before bank overdrafts) | |||
Bank overdrafts | 19 | ( | ( |
Cash and cash equivalents at end of year |
£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 STATEMENTSFINANCIAL STATEMENTS
Group accounting policies
The following are the principal Group accounting policies:
London & Associated Properties PLC 2024 49
FINANCIAL STATEMENTS Group accounting policies
50 London & Associated Properties PLC 2024
FINANCIAL STATEMENTS Group accounting policies
London & Associated Properties PLC 2024 51
FINANCIAL STATEMENTS Group accounting policies
52 London & Associated Properties PLC 2024
FINANCIAL STATEMENTS Group accounting policies
London & Associated Properties PLC 2024 53
FINANCIAL STATEMENTS Group accounting policies
54 London & Associated Properties PLC 2024
FINANCIAL STATEMENTS Group accounting policies
London & Associated Properties PLC 2024 55
FINANCIAL STATEMENTS
| 2024 | ||||
| LAP | BISICHI | DRAGON | TOTAL | |
| BUSINESS ANALYSIS | £’000 | £’000 | £’000 | £’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 |
| UNITED | SOUTH | 2024 | |
| KINGDOM | AFRICA | TOTAL | |
| GEOGRAPHIC ANALYSIS | £’000 | £’000 | £’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 |
FINANCIAL STATEMENTS
Notes to the financial statements
for the year ended 31 December 2024
56 London & Associated Properties PLC 2024
FINANCIAL STATEMENTS Notes to the financial statements
1. RESULTS FOR THE YEAR AND SEGMENTAL ANALYSIS CONTINUED
| 2023 | ||||
| LAP | BISICHI | DRAGON | TOTAL | |
| BUSINESS ANALYSIS | £’000 | £’000 | £’000 | £’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 |
| UNITED | SOUTH | 2023 | |
| KINGDOM | AFRICA | TOTAL | |
| GEOGRAPHIC ANALYSIS | £’000 | £’000 | £’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 |
London & Associated Properties PLC 2024 57
FINANCIAL STATEMENTS Notes to the financial statements
| 2024 | 2023 | |
| £’000 | £’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 |
| 2024 | 2023 | |
| £’000 | £’000 | |
Emoluments | 1,920 | 1,890 |
Defined contribution pension scheme contributions | 139 | 138 |
2,059 | 2,028 |
| 2024 | 2023 | |
| £’000 | £’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 | 2023 | |
| £’000 | £’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 | 2023 | |
| £’000 | £’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 | 2023 | |
| £’000 | £’000 | |
Current tax | – | – |
Deferred tax | (391) | (86) |
(391) | (86) |
Overseas tax included above:
| 2024 | 2023 | |
| £’000 | £’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 | 2023 | |
| £’000 | £’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 | 2023 | |
| £’000 | £’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 | 2023 | |
| £’000 | £’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 | 2023 | |
| £000 | £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).
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 |
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 |
| LEASEHOLD | LEASEHOLD | |||
| OVER 50 | UNDER 50 | |||
| TOTAL | FREEHOLD | YEARS | YEARS | |
| £’000 | £’000 | £’000 | £’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
| LEASEHOLD | LEASEHOLD | |||
| OVER 50 | UNDER 50 | |||
| TOTAL | FREEHOLD | YEARS | YEARS | |
| £’000 | £’000 | £’000 | £’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 |
| 2024 | 2023 | |
| £’000 | £’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 |
2024 | 2023 | |||||
| LEASEHOLD | LEASEHOLD | LEASEHOLD | LEASEHOLD | |||
| OVER 50 | UNDER 50 | OVER 50 | UNDER 50 | |||
| FREEHOLD | YEARS | YEARS | FREEHOLD | YEARS | YEARS | |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’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 |
62 London & Associated Properties PLC 2024
FINANCIAL STATEMENTS Notes to the financial statements
9. INVESTMENT PROPERTIES CONTINUED
| CARRYING / | CARRYING/ | RANGE | ||||
| FAIR VALUE | FAIR VALUE | (WEIGHTED | RANGE | |||
| CLASS OF PROPERTY | 2024 | 2023 | VALUATION | KEY UNOBSERVABLE | AVERAGE) | (WEIGHTED AV- |
| LEVEL 3 | £'000 | £’000 | TECHNIQUE | INPUTS | 2024 | ERAGE) 2023 |
| Freehold – | 31,585 | 29,250 | Income capitalisation | Estimated Rental | £4 - £34 | £4 - £34 |
| external valuation | Value | (£16) | (£16) | |||
| Per sq ft p.a | 5.1% - 12.3% | 5.3% - 14.3% | ||||
| (8.4%) | (9.2%) | |||||
| Equivalent Yield | ||||||
| Leasehold over | 5,670 | 5,640 | Income capitalisation | Estimated Rental | £5 - £10 | £5 - £10 |
| 50 years – | Value | (£7) | (£7) | |||
| external valuation | Per sq ft p.a | 5.8% - 23.7% | 5.8% - 23.7% | |||
| (18.3%) | (18.6%) | |||||
| Equivalent Yield | ||||||
| Leasehold under 50 | 150 | 170 | Income capitalisation | Estimated Rental | £5 - £5 | £5 - £5 |
| years – | Value | (£5) | (£5) | |||
| external valuation | Per sq ft p.a | 37.0% – 37.0% | 32.6% – 32.6% | |||
| (37.0%) | (32.6%) | |||||
| Equivalent Yield | ||||||
At 31 December | 37,405 | 35,060 |
| 10% INCREASE OR (DECREASE) | ESTIMATED RENTAL VALUE | EQUIVALENT YIELD | 25 BASIS POINT CONTRACTION | ||||||
| OR (EXPANSION) | |||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||
| £'000 | £'000 | £'000 | £'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
| RIGHT OF | OFFICE | ||||
| USE ASSET | EQUIPMENT | ||||
| MINING | MINING | - OFFICE | AND MOTOR | ||
| TOTAL | RESERVES | EQUIPMENT | BUILDING | VEHICLES | |
| £’000 | £’000 | £’000 | £’000 | £’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:
| OFFICE | ||||
| EQUIPMENT | ||||
| MINING | OFFICE | AND MOTOR | ||
| TOTAL | EQUIPMENT | BUILDING | VEHICLES | |
| £’000 | £’000 | £’000 | £’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 |
| 2024 | 2023 | |
| £’000 | £’000 | |
At 1 January | 545 | – |
Transfer (to)/from investment property (note 9) | (545) | 545 |
At 31 December | – | 545 |
64 London & Associated Properties PLC 2024
FINANCIAL STATEMENTS Notes to the financial statements
| PERCENTAGE | ||||
| OF SHARE | COUNTRY OF | |||
ENTITY | ACTIVITY | CAPITAL | REGISTERED ADDRESS | INCORPORATION |
Analytical Properties Holdings Limited * | Property | 100% | 12 Little Portland Street, London | England and Wales |
W1W | 8BJ | |||
Analytical Properties Limited | Property | 100% | 12 Little Portland Street, London | England and Wales |
W1W | 8BJ | |||
LAP Ocean Holdings Limited * | Property | 100% | 12 Little Portland Street, London | England and Wales |
W1W | 8BJ | |||
London & Associated (Rugeley) Limited | Dormant | 100% | 12 Little Portland Street, London | England and Wales |
W1W | 8BJ | |||
London & Associated Securities Limited* | Investment | 100% | 12 Little Portland Street, London | England and Wales |
| company | W1W | 8BJ | ||
| London & Associated Management Services | Property | 100% | 12 Little Portland Street, London | England and Wales |
| Limited * | Management | W1W | 8BJ | |
| Services | ||||
Orchard Chambers Residential Limited* | Property | 100% | 12 Little Portland Street, London | England and Wales |
W1W | 8BJ | |||
Bisichi PLC (note C) | Coal mining | 41.602% | 12 Little Portland Street, London | England and Wales |
W1W | 8BJ | |||
Mineral Products Limited (notes A, C) | Share dealing | 100% | 12 Little Portland Street, London | England and Wales |
W1W | 8BJ | |||
Bisichi (Properties) Limited (notes A, C) | Property | 100% | 12 Little Portland Street, London | England and Wales |
W1W | 8BJ | |||
Bisichi Mining (Exploration) Limited (notes A, C) | Holding | 100% | 12 Little Portland Street, London | England and Wales |
| company | W1W | 8BJ | ||
| Sisonke Coal Processing (pty) Limited (notes | Coal | 62.5% | Samora Machel Street, Bethal | South Africa |
| A, C) | processing | Road, Middelburg, Mpumalanga, | ||
| 1050 | ||||
Black Wattle Colliery (Pty) Limited (notes A, C) | Coal mining | 62.5% | Samora Machel Street, Bethal | South Africa |
| Road, Middelburg, Mpumalanga, | ||||
| 1050 | ||||
Bisichi Coal Mining (Pty) Limited (notes A, C) | Coal mining | 100% | Samora Machel Street, Bethal | South Africa |
| Road, Middelburg, Mpumalanga, | ||||
| 1050 | ||||
Urban First (Northampton) Limited (notes A, C) | Dormant | 100% | 12 Little Portland Street, London | England and Wales |
W1W | 8BJ | |||
Bisichi Trustee Limited (notes A, C) | Property | 100% | 12 Little Portland Street, London | England and Wales |
W1W | 8BJ | |||
| Bisichi Mining Management Services Limited | Dormant | 100% | 12 Little Portland Street, London | England and Wales |
| (notes A, C) | W1W | 8BJ | ||
Ninghi Marketing Limited (notes A, C) | Dormant | 90.1% | 12 Little Portland Street, London | England and Wales |
W1W | 8BJ | |||
Bisichi Northampton Limited (notes A, C) | Property | 100% | 12 Little Portland Street, London | England and Wales |
W1W | 8BJ | |||
| Amandla Ehtu Mineral Resource Development | Dormant | 70% | Samora Machel Street, Bethal | South Africa |
| (Pty) Limited (notes A, C) | Road, Middelburg, Mpumalanga, | |||
| 1050 | ||||
Black Wattle Klipfontein (Pty) Limited (notes A, C) Road, Middelburg, Mpumalanga, | Coal mining | 62.5% | Samora Machel Street, Bethal | South Africa |
| 1050 | ||||
Dragon Retail Properties Limited (notes B, C) | Property | 50% | 12 Little Portland Street, London | England and Wales |
W1W | 8BJ | |||
West Ealing Projects Limited (notes B, C) | Property | 50% | 12 Little Portland Street, London | England and Wales |
W1W | 8BJ | |||
Broadway Regen Limited (notes C, D) | Property | 90% | 73 Cornhill, London, EC3V 3QQ | England and Wales |
London & Associated Properties PLC 2024 65
FINANCIAL STATEMENTS Notes to the financial statements
13. INVENTORIES - PROPERTY
Development land and infrastructure:
| 2024 | 2023 | |
| £’000 | £’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 | 2023 | |
| £’000 | £’000 | |
| Coal | ||
Washed | 2,334 | 1,949 |
Mining production | 1,022 | 542 |
Work in progress | – | 85 |
Other | 21 | 3 |
3,377 | 2,579 |
| 2024 | 2023 | |
| TOTAL | TOTAL | |
| £’000 | £’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 |
| 2024 | 2023 | |
| £’000 | £’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 |
| 2024 | 2023 | |
| £’000 | £’000 | |
Trade receivables | 5,323 | 4,695 |
Other receivables | 1,500 | 2,285 |
Prepayments and accrued income | 379 | 433 |
7,202 | 7,413 |
66 London & Associated Properties PLC 2024
FINANCIAL STATEMENTS Notes to the financial statements
| 2024 | 2023 | |
| £’000 | £’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) |
| 2024 | 2023 | |
| £’000 | £’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 |
| 2024 | 2024 | 2023 | 2023 | |
| £’000 | £’000 | £’000 | £’000 | |
| CURRENT | NON-CURRENT | CURRENT | 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 |
| 2024 | 2023 | |
| £’000 | £’000 | |
United Kingdom | 22,812 | 22,520 |
South Africa | 2,280 | 3,563 |
25,092 | 26,083 |
London & Associated Properties PLC 2024 67
FINANCIAL STATEMENTS Notes to the financial statements
19. BORROWINGS CONTINUED
| 2024 | 2024 | 2023 | 2023 | |
| £’000 | £’000 | £’000 | £’000 | |
| BANK | LEASE | BANK BOR- | LEASE | |
| BORROWINGS | OBLIGATIONS | ROWINGS | 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 |
| 2024 | |||||
| HEAD LEASES | |||||
| ON | |||||
| 2024 | INVESTMENT | 2024 | 2024 | 2023 | |
| TOTAL | PROPERTY 1 | OFFICE | OTHER | TOTAL | |
| £’000 | £’000 | £’000 | £’000 | £’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 |
| 2024 | 2023 | |
| £’000 | £’000 | |
At 1 January | 1,615 | 1,716 |
Exchange adjustment | (44) | (213) |
Unwinding of discount | 19 | 112 |
At 31 December | 1,590 | 1,615 |
68 London & Associated Properties PLC 2024
FINANCIAL STATEMENTS Notes to the financial statements
22. FINANCIAL INSTRUMENTS
2024 | 2023 | |||
| FAIR | CARRYING | FAIR | CARRYING | |
| VALUE | VALUE | VALUE | VALUE | |
| £’000 | £’000 | £’000 | £’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) |
London & Associated Properties PLC 2024 69
FINANCIAL STATEMENTS Notes to the financial statements
22. FINANCIAL INSTRUMENTS CONTINUED
| 2024 | LESS THAN | 2-5 YEARS | OVER | |
| TOTAL | 1 YEAR | 5 YEARS | ||
| £’000 | £’000 | £’000 | £’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 | LESS THAN | 2-5 YEARS | OVER | |
| TOTAL | 1 YEAR | 5 YEARS | ||
| £’000 | £’000 | £’000 | £’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 |
2024 | 2023 | |||||
| GROSS | LOSS ALLOW- | NET CARRYING | GROSS | LOSS ALLOW- | NET CARRYING | |
| AMOUNT | ANCE | AMOUNT | AMOUNT | ANCE | AMOUNT | |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’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 |
70 London & Associated Properties PLC 2024
FINANCIAL STATEMENTS Notes to the financial statements
22. FINANCIAL INSTRUMENTS CONTINUED
| 2024 | 2023 | |
| £’000 | £’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 |
| 2024 | 2023 | |
| £’000 | £’000 | |
Sterling | 297 | 1,570 |
South African Rand | 874 | 1,109 |
US Dollar | 4 | 563 |
1,175 | 3,242 |
| UK | SOUTH AFRICA | |
| 2024: | £'000 | £'000 |
Sterling | 8,916 | - |
South African Rand | 1 | (11.283) |
US Dollar | 3,201 | - |
12,118 | (11,283) |
| UK | SOUTH AFRICA | |
| 2023: | £'000 | £'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
| 2024 | 2023 | |
| £’000 | £’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 |
| 2024 | |||||
| GAIN/(LOSS) | |||||
| TO INCOME | |||||
| LEVEL 1 | LEVEL 2 | LEVEL 3 | TOTAL | STATEMENT | |
| £’000 | £’000 | £’000 | £’000 | £’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 | – | – | – | – | – |
| 2023 | |||||
| GAIN/(LOSS) | |||||
| TO INCOME | |||||
| LEVEL 1 | LEVEL 2 | LEVEL 3 | TOTAL | STATEMENT | |
| £’000 | £’000 | £’000 | £’000 | £’000 | |
| Financial assets | |||||
Quoted equities – non-current assets | 14,258 | – | – | 14,258 | 856 |
Quoted equities – current assets | 734 | – | – | 734 | (26) |
| 2024 | 2023 | |
| £’000 | £’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% |
72 London & Associated Properties PLC 2024
FINANCIAL STATEMENTS Notes to the financial statements
22. FINANCIAL INSTRUMENTS CONTINUED
| 2024 | 2023 | |
| £’000 | £’000 | |
Cash at bank and in hand | 2,926 | 6,978 |
| 2024 | 2023 | |
| £’000 | £’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 |
| 2024 | 2023 | |
| £’000 | £’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 |
| NUMBER OF | NUMBER OF | |||
| ORDINARY 10P | ORDINARY 10P | |||
| SHARES | SHARES | 2024 | 2023 | |
| 2024 | 2023 | £’000 | £’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
FINANCIAL STATEMENTS Notes to the financial statements
24. SHARE CAPITAL CONTINUED
| 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 |
| CHANGES DURING THE YEAR | |||||
| AT 1 | AT 31 | ||||
| JANUARY | OPTIONS | OPTIONS | OPTIONS | DECEMBER | |
| 2024 | EXERCISED | GRANTED | LAPSED | 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 |
| CHANGES DURING THE YEAR | |||||
| AT 1 | AT 31 | ||||
| JANUARY | OPTIONS | OPTIONS | OPTIONS | DECEMBER | |
| 2024 | EXERCISED | GRANTED | LAPSED | 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 |
| NUMBER OF | |||||
| NUMBER OF SHARES | SHARE OPTIONS | NUMBER OF SHARES | |||
| PERIOD WITHIN | FOR WHICH OPTIONS | ISSUED/EXERCISED/ | FOR WHICH OPTIONS | ||
| SUBSCRIPTION | WHICH OPTIONS | OUTSTANDING AT | (CANCELLED) | OUTSTANDING AT | |
| YEAR OF GRANT | PRICE PER SHARE | EXERCISABLE | 31 DECEMBER 2023 | DURING YEAR | 31 DECEMBER 2024 |
2022 | 352.0p | Feb 2022 - Feb 2032 | 760,000 | – | 760,000 |
| 2024 | 2023 | |||
| WEIGHTED | WEIGHTED | |||
| AVERAGE | AVERAGE | |||
| 2024 | EXERCISE | 2023 | EXERCISE | |
| NUMBER | PRICE | NUMBER | 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 | 2023 | |
| £’000 | £’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.
| 2024 | 2023 | |
| BISICHI PLC | £’000 | £’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.
| 2024 | 2023 | |
| BLACK WATTLE COLLIERY (PTY) LIMITED (“BLACK WATTLE”) | £’000 | £’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).
| COST RE- | AMOUNTS | |||
| CHARGED | OWED | |||
| (BY) / TO RE- | (TO) / BY RE- | ADVANCED | ||
| LATED | LATED | BY RELATED | ||
| PARTY | PARTY | PARTY | ||
| £’000 | £’000 | £’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) | – |
FINANCIAL STATEMENTS Notes to the financial statements
London & Associated Properties PLC 2024 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 |
248 |
Staff costs during the year were as follows:
| 2024 | 2023 | |
| £’000 | £’000 | |
Salaries and other costs | 8,176 | 7,825 |
Social security costs | 384 | 497 |
Pension costs | 538 | 538 |
9,098 | 8,860 |
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 | 2023 | |
| £’000 | £’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 |
| 2024 | 2023 | |
| £’000 | £’000 | |
Rail siding & transportation | 42 | 43 |
Rehabilitation of mining land | 1,590 | 1,614 |
Water & electricity | 41 | 41 |
1,673 | 1,698 |
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
PROPERTY
1
£’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)
RELATED
PARTY
£’000
AMOUNTS
OWED
BY (TO)
RELATED
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 STATEMENTSFINANCIAL 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
EMAIL: ADMIN@LAP.CO.UK
www.lap.co.uk
FSC
®
C001785