Ace Liberty & Stone - Half-year Report

This is a correction to the announcement published at 07:00 on 28 January 2021 (RNS number 1244N) which incorrectly stated that retained earnings of the Company were £1,069,256 at 31 October 2020 and total equity attributable to owners of the parent were £32,191,113 at the same date. The correct figures at 31 October 2020 are £1,107,256 and £32,229,113 respectively. The full corrected announcement is included below.

Ace Liberty and Stone plc

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

INTERIM RESULTS FOR SIX MONTHS TO 31 OCTOBER 2020

Ace Liberty and Stone plc, 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 2020 to 31 October 2020. 

Highlights:

·      Pre-tax profit increased by 121% to £673,511 (H1: 2020) from £305,060 (H1: 2019)

·      Rental income held to a fall of 7.1% in a trading period devastated by Covid-19. Down from £3,215,817 (H1 2019) to £2,985,965 (H1 2020)

·      One-off hit from Covid-19 held to £130,882 of rent concessions

·      All tenants are maintaining rental payments in accordance with agreements

·      Admission to AQSE Growth Market's Apex segment, subsequent to the period end.

Ismail Ghandour, Chief Executive Officer, commented:

"The calendar year 2020 was one of the worst trading periods ever experienced in the UK, affecting all sectors of the economy. That Ace has turned in such a remarkable performance is a justification of the way we've built up our portfolio over the past few years."

Chairman's statement

I am pleased to announce the Company's interim results for the half year ended 31 October 2020. This is a very strong set of figures indeed, especially given the difficult economic situation in the UK as a result of the impact of the Covid-19 virus on the nation's commercial activities. Profit before tax is £673,511 compared to the comparative value of £305,060, an increase of 121%. Rental income at £2,985,965 shows a reduction of 7.1% from the comparative year's value of £3,215,817, resulting from concessions made to tenants and various other small adjustments mainly relating to the rent received from properties held for sale.

This strong result is after taking into account a small precautionary impairment of £200,000 against one of the Company's held-for-sale properties, Oscar Court, as a result of the economic impact of the Covid-19 pandemic.

The commercial portfolio continues to perform well with rent collections exceeding 80% each quarter. This success owes much to the foresight of the directors who concentrated the Company's holdings into properties let to national and local government agencies. At the time of this report, these account for over half the Company's income. The Group also numbers two Banks and a Building Society among its tenants, together with other strongly-performing major companies. The retail sector has been avoided apart from food and pharmaceutical provision, which have remained open throughout the lockdowns. Tenants include representatives from the leisure industry, which have had a difficult trading period, although none has ceased paying their rents at a full or temporarily-reduced level. One has entered into a Creditors' Voluntary Arrangement which resulted in a small loss of rental income. In total, £130,882 of rent concessions were made which have been fully written off in the half year accounts. Those tenants which have deferred some of their rental payments by agreement with the Company have strong trading prospects and intend to make up all arrears by end December 2021 as they return to normal levels of business. No provisions against these rents are considered necessary at this time.

The company continues to follow a conservative approach to its portfolio management as shown by the following statistics at 31 October 2020:

a)     Portfolio Loan to Value is 53% (H1 2019: 54%)

b)    Weighted Average Unexpired Lease to Break is 6.94% years (H1 2019: 8.08 years)

c)     57% of tenants are government bodies (H1 2019: 58%); 42% are triple-A commercial (H1 2019:41%)

Two properties have been purchased since the beginning of this interim period. 16-17 Westborough, Scarborough, which is let to Skipton Building Society at an annual rent of £117,500 was purchased on 26 August for £1,430,000. On 7 December, after the date of these results, the purchase of 78-82 English Street and 49-53 Blackfriars Street Carlisle was completed at a price of £1,710,000. The principal tenant is Clydesdale Bank with an annual rent of £120,000. Both properties continue the Group's policy of purchasing high-yielding properties with creditworthy long term tenants.

As a result of the uncertainties stemming from the effects of the Covid-19 virus, the Company has temporarily suspended its dividend policy in order to conserve cash resources. The directors value the support of the shareholders in this way which will enhance the long term strength of the Company.

The directors continue to seek ways of enhancing the Company's prospects and, over the coming few months in particular, will build on the portfolio's manifest strengths in a unstable market.

Unaudited group statement of comprehensive income

for the six months ended 31 October 2020

                                                                                                                                                   *Unaudited

Unaudited group statement of retained earnings

for the six months ended 31 October 2020

Unaudited Group cash flow statement

for the six months ended 31 October 2020

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 2020. Those financial statements were prepared on a going concern basis.

The interim report for the six months to 31 October 2020 was approved by the Board on 27 January 2021

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, currently including Leeds, Sunderland, Plymouth, Leicester, Barnstaple, and Manchester. The Company locates commercial properties with Triple-A tenants which have the potential for an increase in value.  Ace has maintained a track record of generating strong profits at disposal of properties and achieving better-than-average returns on capital which are in turn utilised to underwrite an increasing dividend flow to shareholders. 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 allied to a flexible decision-making process has allowed the Board to identify promising opportunities and act promptly to secure investments.

For more information on the Company please visit www.acelibertyandstone.com

For further information, please contact:

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