London & Associated Profit Falls After Harrogate Investment Write-Off

(Alliance News) - London & Associated Properties PLC on Wednesday posted a single-digit first half revenue rise but operating costs and a write off of an investment hurt profit.

In the six months to June 30, the investment company's revenue rose by 7.2% year-on-year to GBP30.0 million from GBP28.0 million, but pretax profit fell by 64% to GBP1.3 million from GBP3.7 million.

Revenue was offset by operating costs rising by 13% to GBP25.4 million from GBP22.5 million and a GBP1.7 million loss incurred on the write-off of an investment in a joint venture.

In June, London & Associated Properties, together with Oaktree Capital Management, declined to inject further capital in a project in Harrogate, Yorkshire. Oaktree had a 97% stake in the project and London & Associated had a 3.2% interest.

The company also sold its retail unit in Fargate, Sheffield, to Metro Bank PLC for GBP9.5 million, below the property's GBP10.3 million valuation at the end of 2018. The proceeds from the disposal were used to pay down a debt owed to Banco Santander SA and Europa Mezzanine Finance Sarl, London & Associated said.

Since the period end London & Associated Properties also sold a nightclub building in Brixton, south London, for GBP2.4 million, in line with its year-end valuation.

Bisichi Mining PLC, in which London & Associated Properties has a 42% stake in, also released its results for the six months to June 30 on Wednesday.

Revenue rose by 6.5% to GBP26.4 million from GBP24.8 million following a strong performance from South African coal mining and processing operations. Pretax profit rose by 9.7% to GBP4.3 million from GBP4.0 million.

Bisichi said: "In addition, strong demand for our coal continued to impact positively on

the prices achievable for our coal and overall group revenue in the first half of the year."

Total production fell by 2.2% to 655,000 tonnes from 670,000 tonnes.

Shares in London & Associated Properties were untraded in London on Wednesday afternoon, last quoted at 22.05 pence each. Shares in Bisichi Mining also were untraded, last quoted at 115.00p apiece.