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/    

 

 

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