FOR IMMEDIATE RELEASE
3 April 2020
LONDON & ASSOCIATED PROPERTIES PLC (“LAP”):
London and Associated Properties Plc’s Board of Directors (“the Board”) has reviewed the Group’s activity in the current economic environment and the various measures already in place, and being contemplated, to protect our staff and the business.
The Board noted that the current health crisis is exceptional in its nature and scale. It is leading to an economic slowdown that will probably be temporary but very significant. The consequences of this pandemic, particularly in terms of duration and extent, remain difficult to assess.
LAP has already implemented significant measures to ensure that the company is protecting its staff, which is the Company’s first priority. As a result, LAP has closed its head office as well as its Sheffield shopping centre. All of LAP’s other retail, industrial and residential investments remain open, although a significant number of tenants have been forced to close as a result of the Coronavirus Act. We are in active negotiation with a number of tenants about deferring payment and, as at today’s date, we have collected c50% of the rent due on 25th March.
The Board has taken measures to ensure that it has enough liquidity to last through the lockdown and the enforced closure of a number of its tenants. This includes a temporary stop on all non-essential capital expenditure, furloughing 13 members of staff (including centre management and maintenance who operate off-site) and reducing, wherever, possible central overheads.
Further, the Board has agreed that it will not be recommending a dividend for the financial year ending 31 December 2019, although the Board reserves the right to reconsider this position in the coming months depending on how the situation evolves.
Further announcements will be made in due course.
Baron Phillips, Baron Phillips Associates.
Tel: 07767 444193