Ace Liberty & Stone - Half-year Report
RNS Number : 4389D
Ace Liberty & Stone PLC
31 January 2018
 

 

 

 

31 January 2018

Ace Liberty and Stone plc

('' Ace '' or "the Company'')

Interim Results

Chairman's statement

 

I am pleased to present the results for the period from 1 May 2017 to 31 October 2017.  

 

Turnover during the six month period increased by 24.4% to £1,472,190 (2016: £1,183,727) compared to the comparative interim period, and the profit before tax for the period was £352,286 (2016: £597,629). The comparative profit for the half year ended 31 October 2016 included £500,000 profit from the sale of a property and therefore excluding this amount from the 2016 interim profit before tax demonstrates that underlying profits from rental income have almost doubled.

 

This has been a period of intense activity for the Company and has resulted in a substantial increase in the portfolio of investment properties. Since the end of the year covered by our 2017 Annual Report, Ace has committed to purchasing properties in Barnstaple, Margate, Middlesbrough and Keighley, at a total cost of £20,130,500. The last of these purchases is in course of completion now and will result in a total annual rental income across the portfolio of £4,205,500.

 

Ace has continued to realise its residential property holdings, selling further properties out of its Stoke and Barnsley portfolios to concentrate on more profitable commercial holdings.

 

This programme has been made possible by the negotiation of a two-year Convertible Loan Note of £10,000,000 announced on 20 July 2017. More recently, existing shareholders have subscribed to a further two-year Convertible Loan Note of £4,850,000, full details of which have also been announced. The Company's shareholders have been outstanding in providing support for the Company's growth and the directors expect to reward them with dividend growth out of the resulting profits.

 

Ace has also been ably supported by Lloyds Bank plc which has now provided a total of £24,842,800 in secured funding.

 

The KPIs monitored by the Board are as follows:

 

   Six months ended 31 October 2017 (Unaudited)  

   Six months ended 31 October 2016 (Unaudited)  

 Year ended 30 April 2017  (Audited)

 

  GBP 

  GBP 

  GBP 

Value of Portfolio

              49,378,100

              28,499,428

              38,979,308

Portfolio annual rental income

                 3,509,205

                 2,310,400

                2,563,565

Total equity attributable to shareholders

              19,554,781

              18,251,554

              18,132,735

Rental income per quarter

                    736,095

                    591,864

                    659,055

Profit after tax per quarter

                    109,027

                    243,630

                    240,669

 

 

 %

 

 %

 

%

Portfolio loan to value

                                56

                                55

                              51

 

 

years

years

years

Weighted average unexpired lease to break

                               9.5

                               8.5

                               8.8

 

These show clearly the development of the Company's business and the shift of emphasis away from reliance on periodic capital profits at sale and towards the establishment of a solid base of high-yielding properties with sound covenants. There has been some cost to profits, mainly in the form of short-term write-off of arrangement fees and costs, but the benefit of the investment will be felt by shareholders for many years. The portfolio properties have potential for incremental capital enhancement as well as the emphasis on long term rental income,

Tribute must be paid to the hard work of all the directors who have supported this endeavour, especially Ismail Ghandour and Ivan Minter, both of whom have used their career-long experience to arrange the purchase and financing of these acquisitions on advantageous terms.

 

In conclusion, the directors are confident that the Company has established a solid portfolio and is well-placed to generate a strong flow of profit and cash for many years. The directors will continue to develop the Company on this base and anticipate further transactions, presently under negotiation, will further strengthen the Company's profitability in the near future.

 

 

 

Dr Tony Ghorayeb

Chairman

30 January 2018

 

 

 

 

Unaudited group statement of comprehensive income

for the six months ended 31 October 2017

 

 

   Six months ended 31 October 2017 (Unaudited)  

   Six months ended 31 October 2016 (Unaudited)  

 Year ended 30 April 2017 (Audited)

 

 

  GBP 

  GBP 

  GBP 

 

 

 

 

 

 

Turnover

1,472,190

1,183,727

2,632,219

 

 

 

 

 

 

Administrative expenses

(703,604)

(762,033)

(1,567,466)

 

Fair value gains / (losses) on investment property

-

500,000

1,018,665

 

Fair value gains / (losses) on assets held for sale

-

-

(390,950)

 

Finance cost

(417,850)

(324,448)

(570,882)

 

Finance income

1,550

383

731

 

 

 

 

 

 

Profit for the period

352,286

597,629

1,122,317

 

 

 

 

 

 

Taxation

(134,232)

(110,369)

(159,641)

 

 

 

 

 

 

Profit from continuing operations

218,054

487,260

962,676

 

 

 

 

 

 

 

 

pence

pence

pence

Basic

 

                            0.55

                              1.24

 2.45

Diluted

 

                            0.43

                              0.93

                        2.22

                   

 

 

 

Unaudited group statement of financial position

at 31 October 2017

 

 

As at 31 October 2017 (Unaudited)  

As at 31 October 2016 (Unaudited)  

As at 30 April 2017 (Audited)

 

  GBP 

GBP

  GBP 

ASSETS

 

 

 

Non-current assets

 

 

 

Investment properties

40,962,100

22,199,428

29,453,308

 

 

 

 

Current assets

 

 

 

Assets held for sale

8,416,000

6,300,000

9,526,000

Trade and other receivables

1,071,292

394,117

178,166

Cash and cash equivalents

4,313,808

3,300,169

350,810

 

13,801,100

9,994,286

10,054,976

 

 

 

 

TOTAL ASSETS

54,763,200

32,193,714

39,508,284

 

 

 

 

EQUITY AND LIABILITIES

 

 

 

Current Liabilities

 

 

 

Liabilities held for sale

2,537,521

2,382,750

3,435,541

Trade and other payables

1,856,599

1,228,706

1,351,194

Borrowings

1,440,550

1,408,377

500,000

 

5,834,670

5,019,833

5,286,735

Non-current liabilities

 

 

 

Borrowings

29,038,366

8,610,693

15,790,596

Deferred tax

335,383

311,634

298,218

 

29,373,749

8,922,327

16,088,814

EQUITY

 

 

 

Issued capital and reserves

 

 

 

Share capital

10,021,156

9,821,517

9,821,517

Share premium reserve

7,508,463

7,132,802

7,132,802

Share option reserve

479,180

479,180

479,180

Other reserve

912,209

                                        -  

-

Treasury shares

(480,620)

-

(480,620)

Retained earnings

1,114,393

818,055

1,179,856

Total equity attributable to owners of the parent

19,554,781

18,251,554

18,132,735

 

 

 

 

TOTAL EQUITY AND LIABILITIES

54,763,200

32,193,714

39,508,284

         
 

 

Unaudited Group cash flow statement

for the six months ended 31 October 2017

 

 

   Six months ended 31 October 2017 (Unaudited)  

   Six months ended 31 October 2016

(Unaudited) 

 Year ended 30 April 2017 (Audited)

 

  GBP 

  GBP 

  GBP 

Profit/(loss) before tax

352,286

597,629

1,122,317

Cash flow  from operating activities

 

 

 

Adjustments for:

 

 

 

Finance income

(1,550)

(383)

(731)

Finance costs

417,850

324,448

570,882

Gain on disposal of investment property

-

-

(1,018,665)

Fair value adjustment

-

(500,000)

390,950

Decrease / (increase) in receivables

(893,126)

(259,864)

(44,115)

Increase / (decrease) in payables

518,547

(166,290)

(59,592)

Tax paid

-

-

(21,887)

Interest paid

(417,850)

(324,448)

(632,060)

Net cash (used)  by operating activities

(23,843)

(328,908)

307,099

Cash flows from investing activities

 

 

 

Interest received

1550

383

731

Purchase of investment properties

(11,508,797)

-

(15,078,916)

Sale of investment properties

1,110,000

1,530,000

6,215,751

Profit on sale and dissolution of subsidiaries

-

-

54,215

Net cash  (used) / generated by investing activities

(10,397,247)

1,530,383

(8,808,220)

Cash flows from financing activities

 

 

 

Share issue, net of issue costs

575,300

-

-

Treasury shares purchased

-

 

(480,620)

Short term loans advanced

-

1,000,000

-

Short term loans repaid

-

(1,000,000)

-

Long term loans advanced

15,100,529

3,311,334

16,071,800

Long term loan repaid

(898,020)

(1,406,167)

(6,932,771)

Equity dividend paid

(393,721)

(324,110)

(324,110)

Net cash generated by financing activities

14,384,088

1,581,057

8,334,299

Net (decrease) / increase in cash and cash equivalents

3,962,998

2,782,532

(166,822)

Cash and cash equivalents at the beginning of the period

350,810

517,637

517,632

Cash and cash equivalents at the end of the period

4,313,808

3,300,169

350,810

 

 

 

 

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 unaudited Group 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 2017. Those financial statements were prepared on a going concern basis.

 

The interim report for the six months to 31 October 2017 was approved by the Board on 30 January 2018

 

The Directors of Ace Liberty & Stone Plc accept responsibility for this announcement.

 

 

 

For further information, please contact:

  Ace Liberty & Stone Plc

 

  Ivan Minter, Finance Director

Tel: +44 (0)  20 7201 8340

 

http://acelibertyandstone.com

 

Alfred Henry Corporate Finance Ltd, NEX Exchange Corporate Adviser

 

 

Jon Isaacs / Nick Michaels

Tel: +44 (0) 20 7251 3762

 

 

www.alfredhenry.com

       

 

For more information on the Company please visit: http://acelibertyandstone.com/    

 

 

- Ends -

 

 


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