Ace Liberty & Stone - Half-year Report
Announcement provided by
Ace Liberty & Stone plc · ALSP27/01/2023 15:52

Ace Liberty and Stone plc
(''Ace'' or "the Company'')
INTERIM RESULTS FOR SIX MONTHS TO 31 OCTOBER 2022
Ace Liberty and Stone Plc (AQSE: ALSP), the active property investment company capitalising on commercial property investment opportunities across the
Highlights*:
· Pre-tax profit decreased marginally by 3% to £731,383 (H1 2022) from
· Rental income slightly reduced by 6% down from
• Open Offer and re-finance provide cash resources of
• Contracts exchanged for the
*Note: Full details can be found in the Chairman's statement
Ismail Ghandour, Chief Executive Officer, commented:
"The half year shows a stable operating position and ends with the Group poised for expansion."
Chairman's statement
I am pleased to announce the Company's interim results for the half year ended 31 October 2022. Turnover at
Discussions have continued with
Contracts have been exchanged for the purchase of Loders Service Station,
The Company is proceeding to completion of the acquisition of the property at Unit M, 9 Hunters Row,
Several other purchases are under consideration and acquisitions will be made when advantageous to the Company in the current unsettled economic circumstances.
The Company has continued with its programme of management changes. Mark Thomas, Commercial Director, who has been a director of the Company since its formation has resigned to pursue his other interests. His role has been assumed by Nick Jones, Property Director designate, who joined Ace in January 2022. I thank Mark for his hard work in helping to establish Ace and wish Nick well for his future role.
There have also been changes within the staffing of the Finance department, including a period of Maternity Leave for an employee.
These actions have driven an increase in salary costs of
The re-finance of the Group's secured loan facility by Coutts & Co was satisfactorily concluded during the period and all obligations to Lloyds Banking Group were satisfactorily settled.
On 21 October, the Company announced an Open Offer of one share at nominal value for every four held at the record date. The offer closed on 30 November and raised
As a result of the re-finance and the Open Offer, the Company currently has cash resources of approximately
Surplus funds will be invested short term with
There has been no change in the status of the
On 21 October the Company paid a dividend of 3.4p per share to mark its intention to resume shareholder distributions after the pause dictated by the impact of the Covid-19 pandemic. The previous payment had been 13 November 2019.
The following statistics are key to the Company's activities at 31 October 2022:
a) Portfolio Loan to Value is 55% (H1 2021: 50%)
b) Weighted Average Unexpired Lease to Break is 6.52 years (H1 2021: 7.03 years)
c) 47% of tenants are government bodies (H1 2021: 57%); 51% are triple-A commercial (H1 2021:42%)
The directors believe the Group is well positioned to thrive whatever the
Dr Tony Ghorayeb Chairman 27 January 2023 |
Unaudited group statement of comprehensive income
for the six months ended 31 October 2022
|
Year to date 31 October 2022 (Unaudited) |
Six months ended 31 October 2021 (Unaudited) |
Year ended 30 April 2022 (Audited) |
|
GBP |
GBP |
GBP |
|
|
|
|
Turnover |
2,700,031 |
2,887,723 |
5,697,850 |
|
|
|
|
Gain / (loss) on disposal of investment property |
(29,442) |
- |
917,203 |
Administrative expenses |
(867,144) |
(579,241) |
(1,291,943) |
Fair value gain on investment property |
- |
- |
193,704 |
Fair value loss on investments |
- |
- |
(797,576) |
Fair value loss on assets held for sale |
- |
(100,000) |
(200,000) |
Loss on disposal of subsidiaries |
- |
(314,800) |
(412,382) |
Dilapidations Settlement |
127,954 |
- |
- |
Finance cost |
(1,536,238) |
(1,550,156) |
(2,792,045) |
Finance income |
336,222 |
411,385 |
751,421 |
Profit for the period |
731,383 |
754,911 |
2,066,232 |
|
|
|
|
Taxation |
(144,557) |
(215,540) |
(769,427) |
|
|
|
|
Profit after taxation |
586,826 |
539,371 |
1,296,805 |
|
|
|
|
Other comprehensive income |
- |
202,302 |
202,302 |
|
|
|
|
Total comprehensive income for the period |
586,826 |
741,673 |
1,499,107 |
Earnings per share - profit after tax |
|
|
|
|
Pence* |
Pence* |
Pence* |
Basic |
1.00 |
0.92 |
2.21 |
Diluted |
0.80 |
0.72 |
1.76 |
|
|
|
|
Earnings per share - total comprehensive income on redemption and rollover of CLNs |
Pence* |
Pence* |
Pence |
Basic |
1.00 |
1.26 |
2.55 |
Diluted |
0.80 |
0.99 |
2.03 |
*Unaudited
Unaudited group statement of changes in equity for the six months ended 31 October 2022 |
Share capital |
Share premium |
Other reserve |
Treasury shares |
Retained earnings |
Total equity |
|
£ |
£ |
£ |
£ |
£ |
£ |
Balance at 30 April 2021 |
14,626,463 |
16,773,712 |
202,302 |
(480,620) |
1,074,323 |
32,196,180 |
Total comprehensive income for the period |
|
|
|
|
|
|
Profit for the period |
- |
- |
- |
- |
539,371 |
539,371 |
Other comprehensive income |
- |
- |
- |
- |
202,302 |
202,302 |
|
- |
- |
- |
- |
741,673 |
741,673 |
Transactions with owners |
|
|
|
|
|
|
Shares issued during the year |
62,500 |
137,500 |
- |
- |
- |
200,000 |
Value of conversion rights on convertible notes |
- |
- |
(202,302) |
- |
- |
(202,302) |
Equity element of new issue on convertible notes |
- |
- |
208,600 |
- |
- |
208,600 |
|
62,500 |
137,500 |
6,298 |
- |
- |
206,298 |
|
|
|
|
|
|
|
Balance at 31 October 2021 |
14,688,963 |
16,911,212 |
208,600 |
(480,620) |
1,815,996 |
33,144,151 |
Total comprehensive income for the period |
|
|
|
|
|
|
Profit for the period |
- |
- |
- |
- |
757,434 |
757,434 |
|
- |
- |
- |
- |
757,434 |
757,434 |
Transactions with owners |
|
|
|
|
|
|
Shares issued during the year |
22,750 |
64,150 |
- |
- |
- |
86,900 |
|
22,750 |
64,150 |
- |
- |
- |
86,900 |
|
|
|
|
|
|
|
Balance at 30 April 2022 |
14,711,713 |
16,975,362 |
208,600 |
(480,620) |
2,573,430 |
33,988,485 |
Total comprehensive income for the year |
|
|
|
|
|
|
Profit for the period |
- |
- |
- |
- |
586,826 |
586,826 |
|
- |
- |
- |
- |
586,826 |
586,826 |
Transactions with owners |
|
|
|
|
|
|
Shares issued during the year |
5,850 |
17,550 |
- |
- |
- |
23,400 |
Dividend on ordinary shares |
- |
- |
- |
- |
(1,985,948) |
(1,985,948) |
|
5,850 |
17,550 |
- |
- |
(1,985,948) |
(1,962,548) |
|
|
|
|
|
|
|
Balance at 31 October 2022 |
14,717,563 |
16,992,912 |
208,600 |
(480,620) |
1,174,307 |
32,612,762 |
Unaudited group statement of financial position |
|
|
|
at 31 October 2022 |
|
|
|
|
At 31 October 2022 (Unaudited) |
At 31 October 2021 (Unaudited) |
At 30 April 2022 (Audited) |
|
GBP |
GBP |
GBP |
ASSETS |
|
|
|
Non-current assets |
|
|
|
Investment properties |
76,500,343 |
79,706,639 |
76,500,343 |
Investments |
4,240,851 |
5,000,680 |
4,240,851 |
Deferred tax |
186,738 |
223,541 |
186,738 |
Derivative Financial Instrument |
662,864 |
3,293 |
326,651 |
|
81,590,796 |
84,934,153 |
81,254,583 |
Current assets |
|
|
|
Assets held for sale |
- |
3,050,000 |
850,000 |
Deferred tax |
- |
76,000 |
- |
Trade and other receivables |
570,885 |
628,090 |
533,079 |
Cash and cash equivalents |
6,581,380 |
1,309,086 |
2,245,873 |
|
7,152,265 |
5,063,176 |
3,628,952 |
|
|
|
|
TOTAL ASSETS |
88,743,061 |
89,997,329 |
84,883,535 |
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
Current Liabilities |
|
|
|
Liabilities held for sale |
- |
1,227,563 |
- |
Trade and other payables |
2,915,535 |
3,326,249 |
3,072,567 |
Taxation |
835,999 |
540,714 |
953,280 |
Borrowings |
11,467,712 |
32,168,011 |
17,644,125 |
Derivative due within 1 year |
- |
16,472 |
- |
|
15,219,246 |
37,279,009 |
21,669,972 |
Non-current liabilities |
|
|
|
Borrowings |
40,911,053 |
19,574,169 |
29,225,078 |
|
40,911,053 |
19,574,169 |
29,225,078 |
EQUITY |
|
|
|
Issued capital and reserves |
|
|
|
Share capital |
14,717,563 |
14,688,963 |
14,711,713 |
Share premium reserve |
16,992,912 |
16,911,212 |
16,975,362 |
Other reserve |
208,600 |
208,600 |
208,600 |
Treasury shares |
(480,620) |
(480,620) |
(480,620) |
Retained earnings |
1,174,307 |
1,815,996 |
2,573,430 |
Total equity attributable to owners of the parent |
32,612,762 |
33,144,151 |
33,988,485 |
|
|
|
|
TOTAL EQUITY AND LIABILITIES |
88,743,061 |
89,997,329 |
84,883,535 |
Unaudited Group cash flow statement
for the six months ended 31 October 2022
|
|
|
|
Year to date 31 October 2022 (Unaudited) |
Six months ended 31 October 2021 (Unaudited) |
Year ended 30 April 2022 (Audited) |
|
|
GBP |
GBP |
GBP |
Profit before tax |
731,383 |
754,911 |
2,066,232 |
Cash flow from operating activities |
|
|
|
Adjustments for: |
|
|
|
Finance income |
(336,222) |
(411,385) |
(751,421) |
Finance costs |
1,536,238 |
1,550,156 |
2,792,045 |
(Gain)/loss on disposal of investment property |
29,442 |
- |
(917,203) |
Fair value adjustment |
- |
100,000 |
803,872 |
Loss on disposal of subsidiaries |
- |
314,800 |
412,382 |
(Increase) / decrease in receivables |
(33,481) |
110,122 |
200,258 |
Increase / (decrease) in payables |
(247,356) |
(394,859) |
(1,789,890) |
Tax paid |
(258,810) |
(5,659) |
(189,720) |
Interest paid |
(1,242,204) |
(1,069,446) |
(2,050,999) |
Other financial costs paid |
(454,535) |
(17,320) |
(39,469) |
Net cash generated/ (used) by operating activities |
(275,545) |
931,320 |
536,087 |
Cash flows from investing activities |
|
|
|
Interest received |
9 |
619 |
825 |
Purchase of investment properties |
(4,326) |
- |
- |
Sale of investment properties |
820,558 |
- |
4,317,203 |
Sale of subsidiaries |
- |
3,241,484 |
5,067,061 |
Investment into LiBank |
- |
|
(37,747) |
Net cash (used) / generated by investing activities |
816,241 |
3,242,103 |
9,347,342 |
Cash flows from financing activities |
|
|
|
Share issue, net of issue costs |
- |
- |
- |
Long term loans advanced |
22,027,500 |
- |
- |
Long term loan repaid |
(379,850) |
(382,100) |
(761,950) |
Short term loans repaid |
(15,890,751) |
(5,395,600) |
(9,788,969) |
Equity dividend paid |
(1,962,088) |
- |
- |
Net cash generated by financing activities |
3,794,811 |
(5,777,700) |
(10,550,919) |
Net increase/(decrease) in cash and cash equivalents |
4,335,507 |
(1,604,277) |
(667,490) |
Cash and cash equivalents at the beginning of the period |
2,245,873 |
2,913,363 |
2,913,363 |
Cash and cash equivalents at the end of the period |
6,581,380 |
1,309,086 |
2,245,873 |
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 interim results have not been audited or reviewed by the Company's auditors. The unaudited interim 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 2022. Those financial statements were prepared on a going concern basis.
The interim report for the six months to 31 October 2022 was approved by the Board on 27 January 2023
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, predominantly in the midlands and north of England, which are now the focus of Government incentives. The Company locates commercial properties which have creditworthy tenants, several years' rental income and 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 to deploy its strong balance sheet and is 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 www.acelibertyandstone.com
For further information, please contact:
Ace Liberty & Stone Plc |
|
|
Ivan Minter, Chief Finance Officer |
Tel: +44 (0) 20 7201 8340 |
|
|
http://acelibertyandstone.com |
|
Alfred Henry Corporate Finance Ltd, AQSE Growth Market Corporate Adviser |
|
|
Nick Michaels |
Tel: +44 (0) 20 3772 0021 |
|
|
|
|
SP Angel Corporate finance LLP Broker |
|
|
Vadim Alexandre / Rob Rees |
Tel: +44 (0)20 3861 6625 |
|
|
|
|
- Ends -
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