Ace Liberty and Stone plc

 

('' Ace '' or the ''Company'')

 

Final Results for the 12 months to 30^th April 2017

                                      

Ace Liberty and Stone Plc (NEX: ALSP), the active property investment company capitalising on commercial property investment opportunities across the UK, today announces its Final Results for the year ended 30 April 2017.

 

Highlights

· The Group's property holdings have grown 32% during the year from £29,488,428 to £38,979,308

· Total equity attributable to owners has increased to £18,150,115 (2016: £17,946,575)

· Consolidated Revenue for the year increased 29% to £2,632,219 (2016: 2,037,308) 

· Profit before tax increased to £1,122,317 (2016: £612,334)

· Rationalisation of portfolio as a result of the sale of residential holdings.

· Continuing support from Lloyds Bank plc: since the year end two further purchases have been arranged, also with finance from the group facility

· Post year end, £10m issue of convertible loan note.

 

Commenting on the final results, Dr Tony Ghorayeb, Chairman of Ace Liberty and Stone Plc, said: "The year to 30^th April 2017 and the period since has seen several achievements, most notably the Group's property holdings now exceeding £45m and the continued support of Lloyds Bank plc in allowing us to achieve this growth. The issue of a £10km convertible loan note since the year end will provide us with a platform for further expansion of the portfolio in the current financial year."

 

- Ends -

 

 For further information, please contact:

Ace Liberty & Stone Plc
Ivan Minter, Financial 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
Hybridan LLP, Corporate Broker
Claire Noyce / Darshan Patel	Tel: +44 (0)203 764 2341
	www.hybridan.com

 

 

Notes to Editors

 

Ace Liberty & Stone Plc is a London-based property investment company with a diverse portfolio of properties located across the UK, currently including Leeds, Doncaster, Sunderland and Dudley. The Company locates commercial properties which have 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 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: http://acelibertyandstone.com/ 

 

 

 

 

Chairman's Statement

 

I am pleased to report that Ace continues to make good progress and is active in the commercial property market. At 30 April 2017 the Group's portfolio was valued at £38,979,308 compared to £29,488,428 a year earlier.  During the year ended 30 April 2017, Ace purchased 1 - 5 Upper Market Square, Hanley for £9,000,000 and Grosvenor Casino, Manchester for £4,000,000. These properties are featured on the inside front cover of the financial report.  Since the year end the purchase of Princess House, Barnstaple for £2,325,000 has been announced and we have exchanged contracts to purchase College Square, Margate for £8,300,000 with completion expected by 30 September. The Company continues to realise substantial profits from its property holdings. King House, Luton, which had been purchased for £2,750,000 in November 2014, was sold during the year for £4,550,000 demonstrating once more the Company's good judgement in selecting properties for its portfolio. Contracts had been exchanged for the sale of Hume House, Leeds in January 2016, but the purchaser was unable to complete and the Company retains the property. This property is currently classed as an asset held for sale. Negotiations are well advanced with another purchaser and a sale announcement can be expected soon. The directors have also started to realise the residential properties owned by the Group in order to reinvest in commercial properties. This is expected to be achieved by the end of the current financial year.

 

In addition to the expansion of the Group's portfolio, there have been other significant achievements since my last report. During the year, the Group has negotiated a loan facility with Lloyds Bank plc which has been utilised to purchase four new properties as well as to re-finance the existing commercial portfolio. This relationship with a major UK banking group will be of continued assistance to the Group and strengthen our negotiating position when further properties are acquired in the future.

 

Since the year end, the Company has issued a two-year Convertible Loan Note for £10,000,000 at an interest rate of 6%. The proceeds will be used to further expand the Group's commercial property portfolio.

 

On 31 March 2017, the Company held a General Meeting at which it was decided to consolidate the existing 1p ordinary shares into ordinary shares of 25p on the basis of 25 1p shares for every new 25p share. The directors recommended this change in order to distance the Company from the "penny share" label.

 

The results for the year show an increase in revenue from £2,037,308 for the year ended 30 April 2016 to £2,632,219 in the year under review. Profit before taxation has increased from £612,334 to £1,122,317. The directors have continued to value the portfolio conservatively.

 

The directors have continued the Company's policy of increasing the dividend each year with a payment of 4.0% in June 2017. It is the Board's policy to continue to pay an increasing dividend unless constrained by economic conditions.

 

The Board considers its investment strategy to date has been successful and will continue to enlarge the portfolio in similar manner as opportunities arise.

 

Dr Tony Ghorayeb

Chairman

Date: 29 September 2017

 

 

 

Group Statement of Comprehensive Income for the year ended 30 April 2017

 

		2017		2016
		£		£
Revenue		2,632,219		2,037,308
Gain (loss) on disposal of investment property		1,018,665		-
Administrative expenses		(1,567,466)		(1,201,655)
Fair value gains (losses) on investment property		-		(422,823)
Fair value gains (losses) on assets held for sale		(390,950)		705,681
Finance cost		(570,882)		(539,095)
Finance income		731		32,918
Profit before taxation		1,122,317		612,334
Taxation		(159,641)		(352,341)
Profit after taxation		962,676		259,993
Other comprehensive income		-		-
Total comprehensive income for the period		962,676		259,993
Attributable to:
Owners of the parent		962,676		324,447
Non-controlling interest		-		(64,454)
		962,676		259,993

 

Earnings per share		Pence		Pence
Basic earnings per share attributable to equity owners of the parent		2.45		0.95
Diluted earnings per share attributable to equity owners of the parent		2.22		0.85

 

 

  Group Statement of Financial position at 30 April 2017

 

			Group
			2017		2016
	ASSETS		£		£
	Non-current assets
	Investment property		29,453,308		21,788,428
			29,453,308		21,788,428
	Current assets
	Assets held for sale		9,526,000		7,700,000
	Trade and other receivables		178,166		134,253
	Cash and cash equivalents		350,810		517,632
			10,054,976		8,351,885
TOTAL ASSETS			39,508,284		30,140,313
	EQUITY AND LIABILITIES
	Current liabilities
	Liabilities relating to non-current assets held for sale		3,435,541		2,400,055
	Trade and other payables		788,466		909,236
	Taxation		562,728		485,760
	Borrowings		500,000		1,333,377
			5,286,735		5,128,428
	Non-current liabilities
	Borrowings		15,790,596		6,853,676
	Deferred tax		298,218		211,634
			16,088,814		7,065,310
	Share capital		9,821,517		9,821,517
	Share premium		7,132,802		7,132,802
	Share option reserve		479,180		479,180
	Treasury shares		(480,620)		-
	Retained earnings		1,179,856		513,076
	Total equity		18,132,735		17,946,575
	TOTAL EQUITY AND LIABILITIES		39,508,284		30,140,313

 

 

 

 

Group Cash Flow Statement for the year ended 30 April 2017

 

					2017		2016
					£		£
Profit before tax					1,122,317		612,334
Cash flow from operating activities
Adjustments for:
Finance income					(731)		(32,918)
Finance costs					570,882		539,095
Share-based payment charge - Share options					-		211,200
(Gain) / loss on disposal of investment property					(1,018,665)		-
Fair value adjustment					390,950		(282,858)
(Increase) / decrease in receivables					(44,115)		(5,952)
(Decrease) / increase in payables					(59,592)		(31,342)
Tax paid					(21,887)		(27,150)
Interest paid					632,060		(419,095)
Net cash generated by operating activities					307,099		653,085
Cash flows from investing activities
Interest received					731		32,918
Purchase of investment properties					(15,078,916)		(8,756,874)
Sale of investment properties					6,215,751		4,850,000
Profit on sale and dissolution of subsidiaries					54,214		-
Net cash (used) by investing activities					(8,808,220)		(12,701,435)
Cash flows from financing activities
Share issue, net of issue costs					-		4,328,716
Treasury shares purchased					(480,620)		-
Long term loans advanced					16,071,800		1,969,539
Long term loans repaid					(6,932,771)		(2,886,645)
Equity dividend paid					(324,110)		(152,620)
Net cash generated by financing activities					8,334,299		3,258,990
Net decrease in cash and cash equivalents					166,822		(1,429,752)
Cash and cash equivalents at the beginning of the period					517,632		1,947,384
Cash and cash equivalents at the end of the period					350,810		517,632

 

 

 

NOTES TO PRELIMINARY RESULTS FOR THE PERIOD ENDED 30 APRIL 2017

 

1.       The financial information set out above does not constitute statutory accounts for the purpose of Section 434 of the Companies Act 2006.   The financial information has been extracted from the statutory accounts of Ace Liberty & Stone Plc and is presented using the same accounting policies, which have not yet been filed with the Registrar of companies, but on which the auditors gave an unqualified report on 29^th September 2017.

 

The preliminary announcement of the results for the year ended 30 April 2017 was approved by the board of directors on 29^th September 2017.

 

 

2.       Earnings per Share

 

The calculations of earnings per share are based on the following earnings and numbers of shares.

 

			2017		2016
			£		£
Profit for the period attributable to equity owners			962,676		324,447
			No. of shares of 25p		No. of shares of 25p (restated)
Weighted average number of shares
For basic earnings per share			39,288,810		34,119,518
Dilutive effect of share options			4,093,333		4,093,333
For diluted earnings per share			43,382,143		38,212,851
Earnings per share			pence		pence
Basic			2.45		0.95
Diluted			2.22		0.85
			£		£
Dividends declared during the year - per share of 1p			-		0.033
Dividends declared during the year - per share of 25p			0.01		-
Dividends declared during the year - total			393,721		324,110
There were no dividends declared and approved prior to the end of the year for inclusion in the Financial Statements. However, a dividend of £393,721 was approved after the year end, being equal to 1.0p per share.