London & Associated Properties Regulatory News (LAS)

21 Oct 2005 07:00

21st October 2005 LONDON & ASSOCIATED PROPERTIES PLC: INTERIM RESULTS FOR SIX MONTHS TO 30TH JUNE 2005London & Associated Properties PLC is a property group focussed on the longterm ownership and management of shopping centres and retail investments. LAPowns and manages retail property with a total value of ‚£250m.HIGHLIGHTS - Diluted net assets per share of 112.52p up from 111.02p at the year end and 25% up on June 2004 - Net revenue maintained at ‚£3.9m despite further property sales - Pre-tax profits of ‚£1.37m - Earnings per share up to 1.41p against 1.36p in June 2004 - Interim dividend reintroduced - 0.55p to be paid - LAP now owns and manages retail property with a combined value of ‚£250m* All the above figures are based on UK GAAP reporting standards"Our low level of gearing, high cash reserves and prudent debt managementleave us well placed to manage current trading conditions. We continue to seekto expand our shopping centre portfolio as well as improve and grow ourexisting properties. I therefore look forward to the full year withconfidence," Michael Heller, Chairman. -more-Contact: John Heller, Chief Executive, LAP. Tel: 020 7415 5000 Robert Cory, Finance Director, LAP. Tel: 020 7415 5000 Baron Phillips, Baron Phillips Associates. Tel: 020 7920 3161CHAIRMAN'S INTERIM STATEMENT 2005This is the first time that we have reported our results using theIFRS accounting basis, and the financial effects of this transition are inincluded in a separate IFRS Transition document dated 20 October 2005. Thishas resulted in profits before tax of ‚£1.48m for the six months to 30th June2005 against ‚£1.51m for the same period last year on a restated basis. Usingthe UK GAAP accounting convention, our pre-tax profits for the period are‚£1.37m against ‚£1.60m for the same period in 2004. These profits include aone-off charge of ‚£173,000 relating to termination of our head office lease.We have maintained our net revenue for the first six months at‚£3.9m. This is in spite of selling our property at Brierely Hill which had anannualised income of some ‚£290,000 which we have not yet replaced and reflectsa number of new lettings and rent reviews carried out in our directly heldportfolio. These have brought in a further ‚£260,000 of rent on an annualisedbasis.We have also made two strategic acquisitions. In March we acquireda building adjacent to our shopping centre in Dagenham let to the Post Officeat ‚£40,000 per annum for ‚£565,000 including costs, and we have bought TheStonehouse, a large public house which adjoins our shopping centre inSheffield, for ‚£2.7m including costs.As reported in our 2004 year end statement, Brierley Hill shoppingcentre was sold earlier this year for ‚£4.8m. This has led to a profit over theDecember 2004 valuation of ‚£436,000 after disposal costs.LAP now owns or manages retail property with a combined value of‚£250 million, on behalf of: - Our directly held portfolio; - Analytical Properties, our joint venture with Bank of Scotland; - Bisichi Mining Plc, an associate company; and - Dragon Retail Properties Limited (a joint venture with Bisichi).Net assets are now ‚£75.0 million against ‚£80.6 million at 31stDecember 2004 using IFRS. Under UK GAAP our net assets, including our listedshare portfolio at market value, would be ‚£85.9m against ‚£91.2 at 31 December2004. The principal reason for the reduction in net assets using IFRS asagainst UKGAAP is the provision for deferred tax, amounting to some ‚£11.4million. There were no write-downs of any of our assets and, as in previousyears, we have not undertaken a half year revaluation.Our net assets reflect the effects of the tender offer that welaunched in June to acquire up to ‚£10m of our own shares. The tender offerenabled us to acquire 5,928,273 shares at 104p (a total of ‚£6.17m) and we nowhold 6,087,473 shares in treasury. For reporting purposes, at 30 June 2005, wehad 76,229,499 shares in issue and this has increased our fully diluted netassets per share to 112.5p from 111.0p over the first half under UK GAAP.Earnings per share (fully diluted) under UK GAAP have risen to 1.41p from1.36p as at June 2004.This year, we are reintroducing an interim dividend. This washighlighted in our 2004 year end statement and we will pay 0.55p on 25thJanuary 2006 to shareholders on the register on 30 December 2005. The proposedfinal dividend will be announced in the usual way at the year end.Analytical PropertiesKing Edward Court, WindsorOur major redevelopment of part of this shopping centre is now wellunder way. We are creating over 100,000 sq ft of new prime retail units fortenants including Waitrose, Zara, Hennes and New Look, as well as a 113-bedTravelodge Hotel. Demolition of the existing buildings has been completed andwe have now appointed a contractor for the main scheme. We have commencedpiling, and completion is on schedule for December 2006. We are also on siterefurbishing the 960 space car park that forms part of the shopping centre.Because we are using a two stage tender process, which involves usworking closely with the contractor to place the sub-contracts, the totalcontract sum for this project is still in the process of being finalised.However, we remain confident that our estimate of approximately ‚£16.5 millionfor all the elements of the works will prove to be broadly correct.Elsewhere in the centre, the positive impact of this development isstarting to produce results. We currently have two units under offer to highlyregarded tenants at rents of ‚£105 per square foot, a record for King EdwardCourt. We have also pre-let a unit to Toni & Guy, the hairdressing chain, at arecord rent for that part of the centre. We are currently on site extendingthe unit, and expect to complete this lease during the second half of thisyear.Church Square, St HelensDemand for units at St Helens continues at a very high level. Inlight of this demand, we remain convinced that rental levels in St Helens, andChurch Square in particular, are below levels achieved in comparable towns. Weare constantly looking at opportunities to secure vacant possession of one ofour prime units to satisfy this demand and prove higher rental levels on anopen market basis.We also continue to explore ways to extend the shopping centre asanother means of satisfying the known demand from retailers for larger units.This is subject to negotiations with third parties, and consequently it is notpossible to say with certainty over what period this will happen.Directly held portfolioOrchard Square, SheffieldThe first half of 2005 has again been a period of good progress atOrchard Square. Shareholders will recall that in 2004 we acquired the freeholdof the large, adjacent Dixons unit. The medium term intention was to extend itbackwards into a unit within our shopping centre to create a flagship store ofapproximately 20,000 sq ft. We originally anticipated that this would be amedium term project as the existing unit within the shopping centre was let toIndex. I am pleased to report that we have now negotiated a surrender withIndex, as well as agreeing a surrender with Dixons, and plans for the newextended unit are being finalised. Demand from fashion retailers for thisflagship store has been high and we are at an advanced stage of negotiationsfor a new lease. I expect to be able to confirm the new letting within thenext few months.In August 2005 we acquired the freehold of The Stonehouse, asubstantial former pub which sits immediately adjacent to the rear of OrchardSquare. We paid ‚£2.7 million including costs. The building was acquired withvacant possession and we are exploring ways to amalgamate it into the shoppingcentre to create a new anchor store at the rear.Saxon Square, ChristchurchWe have completed a number of lettings at this shopping centreduring the first half of 2005. These include lettings to a franchisee of CostaCoffee, the national coffee bar operator, and Toni & Guy. In aggregate, wehave increased rents at this centre by over ‚£120,000 per annum so far thisyear.Our proposed redevelopment of a number of small kiosks to the rearof the centre continues, albeit slowly. However, we have enthusiastic demandfrom a number of major retailers and we are continuing negotiations with thelocal authority.Kings Square, West BromwichWe have had a particularly successful six months at Kings Square,where we have added over ‚£50,000 to the annual rent roll through rent reviewsalone. We are also dividing up one of the shops at the centre and have the newunits that we are creating under offer to two national tenants. At completionthese lettings will set a new rental level for this centre.The Mall, DagenhamThe first six months have been rewarding at Dagenham as we have leta large unit to 99p Stores, the national variety retailer, at a record rentfor the centre. We are currently negotiating a further letting which willsupport this record rent, and we expect to complete this lease shortly.We are also exploring with the local authority opportunities thatwill see our recently acquired Post Office incorporated into a majorregeneration project that will adjoin our shopping centre.Other propertiesElsewhere in our directly held portfolio our properties continue toperform well and we constantly seek ways to improve and grow them. We have noimmediate plans to dispose of further properties although, as always, we willnot retain properties where we believe we have maximised growth or where theyno longer fit in with our core portfolio.Bisichi Mining PlcBisichi Mining, our associate company, has performed well in thefirst half of 2005, with profits before tax of ‚£1,078,000 (2004: ‚£768,000)under IFRS. They also acquired in the period the Pegasus Coal Reserve,approximately 12 million in-situ tonnes of export grade and low phosphorouscoal. Production is scheduled to start in 2007.Current trading and prospectsAgainst a background of widely reported difficult conditions fromthe majority of retailers, our properties continue to perform satisfactorily.A large number of our tenants are focused on the value-orientated end of theretail market which will be less susceptible to the downturn which appears tobe affecting those retailers aiming at customers' discretionary spend. Some90% of our retailers by rental income are national or regional multiples whichoffers us a high level of comfort and we have consistently pursued a policywhere no retailer accounts for more than 5% of our Group income, and no morethan 15% of rental income in any one shopping centre.Our low level of gearing, high cash reserves and prudent debtmanagement also leave us well placed to manage these current tradingconditions. We continue to seek to expand our shopping centre portfolio aswell as improve and grow our existing properties. I therefore look forward tothe full year with confidence.MICHAEL HELLERChairman20 October 2005London & Associated Properties PLCINCOME STATEMENTFor the six months ended 30 June 2005 Notes 6 months 6 months Year ended ended ended 31 30 June 30 June December 2005 2004 2004 unaudited) (unaudited) (unaudited) ‚£'000 ‚£'000 ‚£'000Gross rental incomeGroup & share of joint ventures 6,229 6,539 12,964less: joint ventures - share of rental income (2,354) (2,652) (5,205) 3,875 3,887 7,759less: property overheads - ground rents (796) (835) (1,677) direct property expenses (485) (670) (1,135) attributable overheads (1,115) (1,074) (2,162) (2,396) (2,579) (4,974)less: joint ventures - share of overheads 765 990 1,930Property overheads (1,631) (1,589) (3,044) Net rental income 2,244 2,298 4,715 Listed investments - net gain 50 180 345 Operating profit before adjustments 2,294 2,478 5,060 Lease surrender (173) - -Profit on sale on investment properties 436 62 142Associate and joint venture profit on sale on investment properties 55 - - Operating profit after adjustments 2,612 2,540 5,202 Share of (loss) / profit of joint ventures (181) 124 73Share of profit of associate 267 220 392 2,698 2,884 5,667 Interest receivable 1 499 357 780Interest payable 1 (1,980) (1,730) (3,664) Profit before valuation gains 1,217 1,511 2,783Valuation gains :Increase in value of investment properties - Company - - 9,088 - Associates and joint ventures - - 8,629Increase in value of held for trading investments 260 - - Profit before tax 1,477 1,511 20,500 Income tax 2 108 (111) (3,884)Profit for the period attributable to equity holders of the parent 1,585 1,400 16,616 Earnings per share 3 1.96p 1.72p 20.34p Diluted earnings per share 3 1.95p 1.72p 20.23p London & Associated Properties PLCCONSOLIDATED BALANCE SHEET30 June 2005 30 June 30 June 31 December 2005 2004 2004 (unaudited) (unaudited) (unaudited) Notes ‚£'000 ‚£'000 ‚£'000AssetsNon-current assetsValue of properties attributable to group 104,743 98,253 108,331Present value of head leases 9,103 8,689 9,103Property 113,846 106,942 117,434Plant and equipment 529 448 520Investments in Joint Ventures 14,638 9,072 14,560Investments in associated company 5,430 4,256 5,294Held to maturity investments 3,784 3,784 3,784 Total non-current assets 138,227 124,502 141,592 Current assets Trade and other receivables 2,651 3,051 1,923Financial assets - held for trading investments 4,411 3,039 2,681Cash and cash equivalents 8,011 12,384 12,253 15,073 18,474 16,857 LiabilitiesCurrent liabilitiesFinancial liabilities - borrowings (2,197) (1,043) (907)Trade and other payables (7,999) (9,934) (8,938)Current tax liabilities (337) (932) (422) (10,533) (11,909) (10,267) Non-current liabilitiesFinancial liabilities - borrowings (49,838) (49,247) (49,830)Present value of head leases on properties (9,103) (8,689) (9,103)Deferred tax (8,832) (7,599) (8,649) Net assets 74,994 65,532 80,600 EquityShare capital 8,232 8,171 8,232Share premium account 4,919 4,921 5,226Capital redemption reserve 47 47 47Other reserves 429 429 429Currency translation reserve (49) 49 116Retained earnings 67,911 51,915 67,131Treasury shares (6,495) - (581) 74,994 65,532 80,600Net assets per share 4 98.38p 80.20p 98.82p Diluted net assets per share 4 98.26p 79.71p 98.14p London & Associated Properties PLCCONSOLIDATED CASH FLOW STATEMENTFor the six months ended 30 June 2005 6 months 6 months Year ended ended ended 30 June 30 June 31 December 2005 2004 2004 ‚£'000 ‚£'000 ‚£'000Cash flows from operating activitiesOperating profit after adjustments 2,612 2,540 5,202Depreciation 52 52 108Loss / (gain) on disposal of (9) 2 (10)fixed assets Profit on sale of investment (436) (62) (142)properties Increase in net current assets (812) (4,518) (2,976)Net interest paid (1,583) (1,606) (2,942)Income taxes paid (75) - (1,011) Net cash from operating (251) (3,592) (1,771)activities Cash flows from investing 932 (4,241) (5,177)activities Cash flows from financing (6,213) 8,707 7,827activities Net (decrease) /increase in cashand cash equivalents (5,532) 874 879Cash and cash equivalents atbeginning of period 11,346 10,467 10,467 _______ _______ _______Cash and cash equivalents at end 5,814 11,341 11,346of period Cash and cash equivalentsFor the purpose of the cash flow statement, cash and cashequivalents comprise the following balance sheet amounts: 30 June 30 June 31 December 2005 2004 2004 ‚£'000 ‚£'000 ‚£'000 Cash and cash equivalents 8,011 12,384 12,253Bank overdraft (2,197) (1,043) (907) _______ _______ _______Cash and cash equivalents at endof period 5,814 11,341 11,346 London & Associated Properties PLCConsolidated STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITYFor the six months ended 30 June 2005 Share Share Other Treasury Retained Total Translation capital premium reserve reserves shares earnings equity ‚£'000 ‚£'000 ‚£'000 ‚£'000 ‚£'000 ‚£'000 ‚£'000 Balance at 1January 2004 8,140 4,837 - 476 - 51,756 65,209 Issue of shares 31 84 - - - - 115Currencytranslation - - 49 - - - 49Dividend - - - - - (1,241) (1,241)Profit for theperiod - - - - - 1,400 1,400 _____ _____ _____ _____ ______ ______ ______Balance at 30June 2004 8,171 4,921 49 476 - 51,915 65,532 _____ ______ ______ ______ ______ ______ ______ Balance at 1January 2004 8,140 4,837 - 476 - 51,756 65,209Issue of shares 92 389 - - - - 481Acquisition ofown shares - - - - (581) - (581)Currencytranslation - - 116 - - - 116Dividend - - - - - (1,241) (1,241)Profit for theperiod - - - - - 16,616 16,616 ______ ______ ______ _____ ______ ______ ______Balance at 31December 2004 8,232 5,226 116 476 (581) 67,131 80,600 ______ ______ ______ ______ ______ ______ ______ Cost ofpurchase oftreasury shares - (307) - - - - (307)Acquisition ofown shares - - - - (5,914) - (5,914)Currencytranslation - - (165) - - - (165)Dividend - - - - - (1,346) (1,346)Value financialassets at 1January 2005 - - - - - 727 727JV share offinancialliabilities at1 January 2005 - - - - - (186) (186)Profit forperiod - - - - - 1,585 1,585 ______ ______ ______ ______ ______ ______ ______Balance at 30June 2005 8,232 4,919 (49) 476 (6,495) 67,911 74,994 London & Associated Properties PLCNOTES TO THE FINANCIAL STATEMENTSfor the six months ended 30 June 2005Basis of accountingThe results for the six months ended 30th June 2005 have beenprepared in accordance with those International Financial Reporting Standards(IFRS) which are expected to be endorsed by the European Union and to apply tothe 2005 full year results. The reported comparative period results have beenrestated on this basis. The financial statements have been prepared under thehistorical cost convention, except for the revaluation of certain propertiesand financial instruments. The principal accounting policies are describedbelow.Basis of consolidationThe group accounts incorporate the accounts of London & AssociatedProperties plc and all of its subsidiary undertakings, together with thegroup's share of the results of its joint ventures and associates.REVENUE(i) Rental incomeRental income arises from operating leases granted to tenants. Anoperating lease is a lease other than a finance lease. A finance lease is onewhereby substantially all the risks and rewards of ownership are passed to thelessee.Rental income is recognised in the group income statement on astraight-line basis over the term of the lease. This includes the effect oflease incentives to tenants, which are normally in the form of rent freeperiods or capital contributions in lieu of rent free periods.For income from property leased out under a finance lease, a leasereceivable asset is recognised in the balance sheet at an amount equal to thenet investment in the lease, as defined in IAS17. Minimum lease paymentsreceivable, again defined in IAS17, are apportioned between finance income andthe reduction of the outstanding lease receivable so as to produce a constantperiodic rate of return on the remaining net investment in the lease.Contingent rents, being the difference between the rent currently receivableand the minimum lease payments when the net investment in the lease wasoriginally calculated, are recognised in property income in the periods inwhich they are receivable.(ii) Reverse surrender premiumsPayments received from tenants to surrender their lease obligationsare recognised immediately in the income statement.(iii) DilapidationsDilapidations monies received from tenants in respect of theirlease obligations are recognised immediately in the income statement.EMPLOYEE BENEFITS(i) Share based remunerationThe company operates a long-term incentive plan and share optionscheme. The fair value of the conditional awards of shares granted under thelong-term incentive plan and the options granted under the share option schemeare determined at the date of grant. This fair value is then expensed on astraight-line basis over the vesting period, based on an estimate of thenumber of shares that will eventually vest. At each reporting date, the fairvalue of the non-market based performance criteria of the long-term incentiveplan is recalculated and the expense is revised. In respect of the shareoption scheme, the fair value of options granted is calculated using abinomial model.(ii) PensionsThe company operates a defined contribution pension scheme. Thecontributions payable to the scheme are expensed in the period to which theyrelate.FINANCIAL INSTRUMENTS(i) Bank loans and overdraftsBank loans and overdrafts are included as financial liabilities onthe group balance sheet at the amounts drawn on the particular facilities.Interest payable on those facilities is expensed as a finance cost in theperiod to which it relates.(ii) Debenture loanThe debenture loan is included as a financial liability on thebalance sheet net of the unamortised discount and costs on issue. Thedifference between this carrying value and the redemption value is recognisedin the group income statement over the life of the debenture on an effectiveinterest basis. Interest payable to debenture holders is expensed in theperiod to which it relates.(iii) Finance lease liabilitiesFinance lease liabilities arise for those investment propertiesheld under a leasehold interest and accounted for as investment property. Theliability is initially calculated as the present value of the minimum leasepayments, reducing in subsequent reporting periods by the apportionment ofpayments to the lessor.(iv) Interest rate derivativesThe group uses derivative financial instruments to hedge theinterest rate risk associated with the financing of the group's business. Notrading in such financial instruments is undertaken.At each reporting date, these interest rate derivatives arerecognised at fair value, being the estimated amount that the group wouldreceive or pay to terminate the agreement at the balance sheet date, takinginto account current interest rates and the current credit rating of thecounterparties. The attaching hedged instrument is also recognised at fairvalue. The gain or loss at each fair value remeasurement is recognisedimmediately in the group income statement.The group has applied IAS32 `Financial instruments: Disclosure andpresentation' and IAS 39 `Financial instruments: Recognition and measurement'with effect from 1 January 2005.INVESTMENT PROPERTIES(i) ValuationInvestment properties are those that are held either to earn rentalincome or for capital appreciation or both, including those that areundergoing redevelopment. They are reported on the group balance sheet at fairvalue, being the amount for which an investment property could be exchangedbetween knowledgeable and willing parties in an arm's length transaction, andadjusted to include the carrying value of leasehold interests and leaseincentive debtors. The valuation is undertaken by independent valuers who holdrecognised and relevant professional qualifications and have recent experiencein the locations and categories of properties being valued.Surpluses or deficits resulting from changes in the fair value ofinvestment property are reported in the group income statement in the periodin which they arise.(ii) Capital expenditureCapital expenditure, being costs directly attributable to theredevelopment or refurbishment of an investment property, up to the point ofit being completed for its intended use, are capitalised in the carrying valueof that property. Borrowing costs that are directly attributable to suchexpenditure are expensed in the period in which they arise.(iii) DisposalThe disposal of investment properties is accounted for oncompletion of contract. On disposal, any gain or loss is calculated as thedifference between the net disposal proceeds and the valuation at the lastyear end plus subsequent capitalised expenditure in the period.(iv) Depreciation and amortisationIn applying the fair value model to the measurement of investmentproperties, depreciation and amortisation are not provided in respect ofinvestment properties.PROPERTY PLANT AND EQUIPMENTOther non-current assets, comprising property, plant and equipment,are depreciated at a rate of between 10% and 25% per annum which is calculatedto write off the cost, less estimated residual value of the assets, over theirexpected useful lives.JOINT VENTURESInvestments in joint ventures, being those entities over whoseactivities the group has joint control, as established by contractualagreement, include the appropriate share of the results and reserves of thoseundertakings.ASSOCIATESUndertakings in which the group has a participating interest of notless than 20% in the voting capital and over which it has the power to exertsignificant influence are defined as associated undertakings. The financialstatements include the appropriate share of the results and reserves of thoseundertakings.DEFERRED TAXDeferred tax is the tax expected to be payable or recoverable ondifferences between the carrying amounts of assets and liabilities in thefinancial statements and the corresponding tax bases used in the taxcomputations, and is accounted for using the balance sheet liability method.Deferred tax liabilities are generally recognised for all taxable temporarydifferences and deferred tax assets are recognised to the extent that it isprobable that taxable profits will be available against which deductibletemporary differences can be utilised. In respect of the deferred tax on therevaluation surplus, this is calculated on the basis of the chargeable gainsthat would crystallise on the sale of the investment portfolio as at thereporting date. The calculation takes account of indexation on the historiccost of the properties and any available capital losses.Deferred tax is calculated at the tax rates that are expected toapply in the period when the liability is settled or the asset is realised.Deferred tax is charged or credited in the group income statement, except whenit relates to items charged or credited directly to equity, in which case itis also dealt with in equity.DIVIDENDSDividends payable on the ordinary share capital are recognised as aliability in the period in which they are approved.CASH AND CASH EQUIVALENTSCash comprises cash in hand and on-demand deposits. Cashequivalents comprises short-term, highly liquid investments that are readilyconvertible to known amounts of cash and which are subject to an insignificantrisk of changes in value. 1 INTEREST 6 months 6 months Year ended ended ended 30 June 30 June 31 December 2005 2004 2004 ‚£'000 ‚£'000 ‚£'000 Interest receivable 499 357 780 Interest payable - bank loans and overdrafts (928) (674) (1,557) - other loans (1,052) (1,056) (2,107) (1,980) (1,730) (3,664) 2 INCOME TAX 6 months 6 months Year ended ended ended 30 June 30 June 31 December 2005 2004 2004 ‚£'000 ‚£'000 ‚£'000 Company Current tax (52) (348) (549) Deferred tax (216) - (1,454) (268) (348) (2,003) Associate and joint ventures Current tax (37) (138) (151) Deferred tax 413 375 (1,730) 108 (111) (3,884) 3 EARNING PER SHARE 6 months 6 months Year ended ended ended 30 June 30 June 31 December 2005 2004 2004 ‚£'000 ‚£'000 ‚£'000 Group profit after tax 1,585 1,400 16,616 Weighted average number of shares in issue for the period (`000) 80,804 81,530 81,705 BASIC EARNING PER SHARE 1.96p 1.72p 20.34p Diluted number of shares in issue (`000) 81,261 81,588 82,154 FULLY DILUTED EARNINGS PER SHARE 1.95p 1.72p 20.23p EARNING PER SHARE - UK GAAP Group profit before tax 1,142 1,112 2,301 Basic earning per share 1.41p 1.36p 2.82p Fully diluted earnings per share 1.41p 1.36p 2.80p 4 NET ASSETS PER SHARE 30 June 30 June 31 December 2005 2004 2004 ‚£'000 ‚£'000 ‚£'000 Shares in issue (`000) 76,229 81,707 81,567 Net assets per balance sheet 74,994 65,532 80,600 BASIC NET ASSETS PER SHARE 98.38p 80.20p 98.82p Shares in issue diluted by outstanding share options (`000) 76,379 82,498 82,358 Net asset after issue of share options 75,046 65,755 80,823 FULLY DILUTED NET ASSETS PER 79.71p 98.14p SHARE 98.26p NET ASSETS PER SHARE - UK GAAP Net assets* 85,893 74,236 91,214 BASIC NET ASSETS PER SHARE 112.68p 90.86p 111.83p FULLY DILUTED NET ASSETS PER SHARE 112.52p 90.26p 111.02p * including current asset investments at market value5 The above financial information does not constitute statutoryaccounts within the meaning of section 240 of the Companies Act 1985.Statutory accounts for the year ended 31 December 2004 which were preparedunder UK generally accepted accounting principles (UK GAAP), have beendelivered to the Registrar of Companies; the report of the auditors on thoseaccounts was unqualified and did not contain a statement under Section 237(2)or (3) of the Companies Act 1985. The six months figures have not been auditedor subject to review by the company's auditors.6 POSTING TO SHAREHOLDERSThe interim statement will be sent toshareholders by mail. Copies are now available at the company's registeredoffice: Carlton House, 21a St James Square, London, SW1Y 4JH and may also bedownloaded from the company's website: www.lap.co.uk.ENDLONDON AND ASSOCIATED PROPERTIES PLC