TIDMALSP
RNS Number : 1548O
Ace Liberty & Stone PLC
27 January 2023
Ace Liberty and Stone plc
("Ace" or "the Company")
INTERIM RESULTS FOR SIX MONTHS TO 31 OCTOBER 2022
Ace Liberty and Stone Plc (AQSE: ALSP), the active property
investment company capitalising on commercial property investment
opportunities across the UK, is delighted to announce Interim
Results for the period from 1 May 2022 to 31 October 2022.
Highlights * :
-- Pre-tax profit decreased marginally by 3% to GBP 731,383 (H1
2022) from GBP754,911 (H1 2021)
-- Rental income slightly reduced by 6% d own from GBP2,887,723
(H1 2021) to GBP2,700,031 (H1 2022)
-- Open Offer and re-finance provide cash resources of GBP9.5m
for investment in UK commercial property
-- Contracts exchanged for the Dorchester property.
*Note: Full details can be found in the Chairman's statement
Ismail Ghandour, Chief Executive Officer, commented:
"The half year shows a stable operating position and ends with
the Group poised for expansion."
Chairman's statement
I am pleased to announce the Company's interim results for the
half year ended 31 October 2022. Turnover at GBP2,700,031 for the
half year is down by 6.5% on the comparable value for the previous
year of GBP2,887,723 as a result of properties sold in the year
ended 30 April 2022 and commented upon in those results. The
results show a one-off increase in administrative expenses, and
income from dilapidations in respect of the Fawcett House,
Sunderland property; no adjustments have been considered necessary
to the values of investment property assets.
Discussions have continued with Sunderland City Council on the
future re-development of Fawcett House. A cost of GBP184,000 has
been recorded in the period for rates charges on empty portion of
that property ( approximately GBP130,000 relating to a previous
period), contributing to the increase in administrative expenses.
Measures have been put in place to mitigate this expense for the
future.
Contracts have been exchanged for the purchase of Loders Service
Station, Dorchester at a cost of GBP2,080,000 and completion is
expected shortly. The property yields a rental income of GBP167,914
initially, with substantial increases embedded in its fifteen-year
unexpired lease.
The Company is proceeding to completion of the acquisition of
the property at Unit M, 9 Hunters Row, Stafford.
Several other purchases are under consideration and acquisitions
will be made when advantageous to the Company in the current
unsettled economic circumstances.
The Company has continued with its programme of management
changes. Mark Thomas, Commercial Director, who has been a director
of the Company since its formation has resigned to pursue his other
interests. His role has been assumed by Nick Jones, Property
Director designate, who joined Ace in January 2022. I thank Mark
for his hard work in helping to establish Ace and wish Nick well
for his future role.
There have also been changes within the staffing of the Finance
department, including a period of Maternity Leave for an
employee.
These actions have driven an increase in salary costs of
GBP115,000, which are mainly non-recurring, included in
Administration Expenses during the period.
The re-finance of the Group's secured loan facility by Coutts
& Co was satisfactorily concluded during the period and all
obligations to Lloyds Banking Group were satisfactorily
settled.
On 21 October, the Company announced an Open Offer of one share
at nominal value for every four held at the record date. The offer
closed on 30 November and raised GBP3,074,653 represented by the
issue of 12,298,612 new ordinary shares of 25p. The new shares were
admitted to trading on 14 December. These funds, together with the
cash balances available at period end, leave Ace with approximately
GBP9.5 million available for investment opportunities.
As a result of the re-finance and the Open Offer, the Company
currently has cash resources of approximately GBP9.5m to invest in
UK freehold and long leasehold commercial properties according to
its existing policies.
Surplus funds will be invested short term with UK deposit takers
regulated by the Bank of England.
There has been no change in the status of the GBP4.2m placed
with LiBank s.a.l.
On 21 October the Company paid a dividend of 3.4p per share to
mark its intention to resume shareholder distributions after the
pause dictated by the impact of the Covid-19 pandemic. The previous
payment had been 13 November 2019.
The following statistics are key to the Company's activities at
31 October 2022:
a) Portfolio Loan to Value is 55% (H1 2021: 50%)
b) Weighted Average Unexpired Lease to Break is 6.52 years (H1 2021: 7.03 years)
c) 47% of tenants are government bodies (H1 2021: 57%); 51% are
triple-A commercial (H1 2021:42%)
The directors believe the Group is well positioned to thrive
whatever the UK economy may have in store.
Dr Tony Ghorayeb
Chairman
27 January 2023
Unaudited group statement of comprehensive income
for the six months ended 31 October 2022
Year to Six months Year ended
date 31 ended 31 30 April
October October 2022 (Audited)
2022 (Unaudited) 2021 (Unaudited)
GBP GBP GBP
Turnover 2,700,031 2,887,723 5,697,850
-------------------- -------------------- -----------------
Gain / (loss) on disposal of
investment property (29,442) - 917,203
Administrative expenses (867,144) (579,241) (1,291,943)
Fair value gain on investment
property - - 193,704
Fair value loss on investments - - (797,576)
Fair value loss on assets held
for sale - (100,000) (200,000)
Loss on disposal of subsidiaries - (314,800) (412,382)
Dilapidations Settlement 127,954 - -
Finance cost (1,536,238) (1,550,156) (2,792,045)
Finance income 336,222 411,385 751,421
Profit for the period 731,383 754,911 2,066,232
-------------------- -------------------- -----------------
Taxation (144,557) (215,540) (769,427)
Profit after taxation 586,826 539,371 1,296,805
-------------------- -------------------- -----------------
Other comprehensive income - 202,302 202,302
Total comprehensive income for
the period 586,826 741,673 1,499,107
==================== ==================== =================
Earnings per share - profit
after tax
Pence* Pence* Pence*
Basic 1.00 0.92 2.21
Diluted 0.80 0.72 1.76
Earnings per share - total
comprehensive income on redemption
and rollover of CLNs Pence* Pence* Pence
Basic 1.00 1.26 2.55
Diluted 0.80 0.99 2.03
*Unaudited
Unaudited group statement
of changes
in equity for the six
months ended Treasury Retained Total
31 October 2022 Share capital Share premium Other reserve shares earnings equity
GBP GBP GBP GBP GBP GBP
Balance at 30 April 2021 14,626,463 16,773,712 202,302 (480,620) 1,074,323 32,196,180
--------------- --------------- --------------- ---------- ------------ ------------
Total comprehensive income
for the
period
Profit for the period - - - - 539,371 539,371
Other comprehensive income - - - - 202,302 202,302
------------
- - - - 741,673 741,673
--------------- --------------- --------------- ---------- ------------ ------------
Transactions with owners
Shares issued during the
year 62,500 137,500 - - - 200,000
Value of conversion rights
on convertible
notes - - (202,302) - - (202,302)
Equity element of new
issue on convertible
notes - - 208,600 - - 208,600
62,500 137,500 6,298 - - 206,298
--------------- --------------- --------------- ---------- ------------ ------------
Balance at 31 October 2021 14,688,963 16,911,212 208,600 (480,620) 1,815,996 33,144,151
--------------- --------------- --------------- ---------- ------------ ------------
Total comprehensive income
for the
period
Profit for the period - - - - 757,434 757,434
- - - - 757,434 757,434
--------------- --------------- --------------- ---------- ------------ ------------
Transactions with owners
Shares issued during the
year 22,750 64,150 - - - 86,900
22,750 64,150 - - - 86,900
--------------- --------------- --------------- ---------- ------------ ------------
Balance at 30 April 2022 14,711,713 16,975,362 208,600 (480,620) 2,573,430 33,988,485
--------------- --------------- --------------- ---------- ------------ ------------
Total comprehensive income
for the
year
Profit for the period - - - - 586,826 586,826
- - - - 586,826 586,826
--------------- --------------- --------------- ---------- ------------ ------------
Transactions with owners
Shares issued during the
year 5,850 17,550 - - - 23,400
Dividend on ordinary
shares - - - - (1,985,948) (1,985,948)
5,850 17,550 - - (1,985,948) (1,962,548)
--------------- --------------- --------------- ---------- ------------ ------------
Balance at 31 October 2022 14,717,563 16,992,912 208,600 (480,620) 1,174,307 32,612,762
--------------- --------------- --------------- ---------- ------------ ------------
Unaudited group statement of
financial position
at 31 October 2022
At 31 At 31 At 30
October October April 2022
2022 (Unaudited) 2021 (Unaudited) (Audited)
GBP GBP GBP
ASSETS
Non-current assets
Investment properties 76,500,343 79,706,639 76,500,343
Investments 4,240,851 5,000,680 4,240,851
Deferred tax 186,738 223,541 186,738
Derivative Financial Instrument 662,864 3,293 326,651
81,590,796 84,934,153 81,254,583
------------------ ------------------ ------------
Current assets
Assets held for sale - 3,050,000 850,000
Deferred tax - 76,000 -
Trade and other receivables 570,885 628,090 533,079
Cash and cash equivalents 6,581,380 1,309,086 2,245,873
7,152,265 5,063,176 3,628,952
------------------ ------------------ ------------
TOTAL ASSETS 88,743,061 89,997,329 84,883,535
================== ================== ============
EQUITY AND LIABILITIES
Current Liabilities
Liabilities held for sale - 1,227,563 -
Trade and other payables 2,915,535 3,326,249 3,072,567
Taxation 835,999 540,714 953,280
Borrowings 11,467,712 32,168,011 17,644,125
Derivative due within 1 year - 16,472 -
15,219,246 37,279,009 21,669,972
------------------ ------------------ ------------
Non-current liabilities
Borrowings 40,911,053 19,574,169 29,225,078
------------
40,911,053 19,574,169 29,225,078
------------------ ------------------ ------------
EQUITY
Issued capital and reserves
Share capital 14,717,563 14,688,963 14,711,713
Share premium reserve 16,992,912 16,911,212 16,975,362
Other reserve 208,600 208,600 208,600
Treasury shares (480,620) (480,620) (480,620)
Retained earnings 1,174,307 1,815,996 2,573,430
Total equity attributable to
owners of the parent 32,612,762 33,144,151 33,988,485
------------------ ------------------ ------------
TOTAL EQUITY AND LIABILITIES 88,743,061 89,997,329 84,883,535
================== ================== ============
Unaudited Group cash flow statement
for the six months ended 31 October 2022
Year to Six months Year ended
date 31 ended 31 30 April
October October 2022 (Audited)
2022 (Unaudited) 2021 (Unaudited)
GBP GBP GBP
Profit before tax 731,383 754,911 2,066,232
Cash flow from operating activities
Adjustments for:
Finance income (336,222) (411,385) (751,421)
Finance costs 1,536,238 1,550,156 2,792,045
(Gain)/loss on disposal of investment
property 29,442 - (917,203)
Fair value adjustment - 100,000 803,872
Loss on disposal of subsidiaries - 314,800 412,382
(Increase) / decrease in receivables (33,481) 110,122 200,258
Increase / (decrease) in payables (247,356) (394,859) (1,789,890)
Tax paid (258,810) (5,659) (189,720)
Interest paid (1,242,204) (1,069,446) (2,050,999)
Other financial costs paid (454,535) (17,320) (39,469)
Net cash generated/ (used) by operating
activities (275,545) 931,320 536,087
-------------------- -------------------- -----------------
Cash flows from investing activities
Interest received 9 619 825
Purchase of investment properties (4,326) - -
Sale of investment properties 820,558 - 4,317,203
Sale of subsidiaries - 3,241,484 5,067,061
Investment into LiBank - (37,747)
Net cash (used) / generated by investing
activities 816,241 3,242,103 9,347,342
-------------------- -------------------- -----------------
Cash flows from financing activities
Share issue, net of issue costs - - -
Long term loans advanced 22,027,500 - -
Long term loan repaid (379,850) (382,100) (761,950)
Short term loans repaid (15,890,751) (5,395,600) (9,788,969)
Equity dividend paid (1,962,088) - -
Net cash generated by financing
activities 3,794,811 (5,777,700) (10,550,919)
-------------------- -------------------- -----------------
Net increase/(decrease) in cash and
cash equivalents 4,335,507 (1,604,277) (667,490)
Cash and cash equivalents at the
beginning of the period 2,245,873 2,913,363 2,913,363
-------------------- -------------------- -----------------
Cash and cash equivalents at the
end of the period 6,581,380 1,309,086 2,245,873
-------------------- -------------------- -----------------
The interim financial information set out herein does not
constitute full financial statements within the meaning of Section
240 of the Companies Act 2006. The interim results have not been
audited or reviewed by the Company's auditors. The unaudited
interim results have been prepared under the historical cost
convention, in accordance with the Companies Act 2006 and
applicable accounting standards in the United Kingdom.
The interim report has been prepared using accounting policies
consistent with those set out in the Company's Annual Report and
Accounts for the period to 30 April 2022. Those financial
statements were prepared on a going concern basis.
The interim report for the six months to 31 October 2022 was
approved by the Board on 27 January 2023
The Directors of Ace Liberty & Stone Plc accept
responsibility for this announcement.
Notes to Editors
Ace Liberty & Stone Plc is a property investment company
with a diverse portfolio of properties located across the UK,
predominantly in the midlands and north of England, which are now
the focus of Government incentives. The Company locates commercial
properties which have creditworthy tenants, several years' rental
income and the potential for an increase in value through creative
asset management activity, such as change of tenancy, change of use
or new lease negotiation. Ace has maintained a track record of
generating strong profits at disposal of properties and achieving
better-than average returns on capital. With strong support from
shareholders and mortgage lenders, the Company is currently seeking
to deploy its strong balance sheet and is seeking further
investment opportunities in the UK to create value for existing and
new investors.
Ace is run by a board with extensive property experience, an
excellent network of contacts and relevant professional
qualifications. This sector expertise has allowed the Board to
identify opportunities and act promptly to secure investments.
For more information on the Company please visit
www.acelibertyandstone.com
For further information, please contact:
Ace Liberty & Stone Plc
Ivan Minter, Chief Finance Officer Tel: +44 (0) 20 7201 8340
http://acelibertyandstone.com
Alfred Henry Corporate Finance
Ltd,
AQSE Growth Market Corporate Adviser
Nick Michaels Tel: +44 (0) 20 3772 0021
SP Angel Corporate finance LLP
Broker
Vadim Alexandre / Rob Rees Tel: +44 (0)20 3861 6625
- Ends -
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