Ace Liberty & Stone - Final Results
RNS Number : 3331S
Ace Liberty & Stone PLC
02 October 2017
 

 



 

Ace Liberty and Stone plc

 

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

 

Final Results for the 12 months to 30th 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 30th 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 29th September 2017.

 

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

 

 

 

 


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