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Ace Liberty & Stone - Half-year Report


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Ace Liberty & Stone plc · ALSP

25/01/2024 07:00

Ace Liberty & Stone - Half-year Report
RNS Number : 8382A
Ace Liberty & Stone PLC
25 January 2024
 

 

Ace Liberty and Stone plc

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

INTERIM RESULTS FOR SIX MONTHS TO 31 OCTOBER 2023

 

Ace Liberty and Stone Plc (AQSE: ALSP), the active property investment company capitalising on commercial property investment opportunities across the UK, is pleased to announce Interim Results for the period from 1 May 2023 to 31 October 2023. 

 

Highlights*:

·      Rental income increased slightly to £2,714,887 (H1 2022: £2,700,031)

·      Administration costs down 19.4% to £699,032 due to one-off costs in the prior year (H1 2022: £867,144)

·      Loss before tax of £4,686 largely driven by increased finance costs (H1 2022: profit £731,383)

·      £1 million shareholder loan repaid

·      2 year extension of the £10 million convertible loan note agreed

·      Completion of Melton Mowbray acquisition - financed with Coutts & Co

·      Cash resources of over £3 million available

 

*Note: Full details can be found in the Chairman's statement

 

 

Ismail Ghandour, Chief Executive Officer, commented:

 

"The UK economy is experiencing a period of disruption due to high inflation and rising interest rates. Together with the ongoing wars in Ukraine and the Middle East, we expect a continued period of uncertainty as we move through 2024. With a robust balance sheet and significant cash resources, Ace is in a strong position to weather the storm and take advantage of future opportunities as they arise."

 

 

 

 

 

 



 

Chairman's statement

I am pleased to announce the Company's interim results for the half year ended 31 October 2023. Turnover at £2,714,887 for the half year is up 0.6% on the comparable value for the previous year of £2,700,031. Pre-tax profit has reduced from £731,383 in H1 2022 to a loss of £4,686 in H1 2023 which is largely the result of increased finance costs driven by market interest rates. No adjustments have been considered necessary to the values of investment property assets at the half year.

 

During the period the Company completed the acquisition of the freehold of Egerton Park service station, Melton Mowbray. The property comprises a BP branded forecourt and a M&S branded convenience store. The current annual rental income is £204,814 with lease expiry in 2033. Melton Mowbray was comprehensively refurbished in 2014 to include two electric charging points for vehicles, improving the energy performance of the property. This aligns with our target of improving our overall EPC ("Energy Performance Certificate") range across the portfolio.

 

The planned acquisition of 9 Hunters Row, Stafford will no longer proceed following a mutual agreement with the seller. The seller informed the Company that it received an offer for the property, from another entity, with better terms. Given the current market conditions, the Board believes that it is more beneficial for Ace to retain cash resources in order to be flexible to opportunities in the market. Therefore, the seller will return the deposit paid by Ace of £631,453, together with accrued interest.

 

Several other transactions are under consideration and acquisitions and disposals will be made when advantageous to the Company in the current unsettled economic circumstances.

 

The Ace portfolio remains robust with a strong occupancy rate of 96%. Discussions have continued with Sunderland City Council on the future re-development of Fawcett House where the existing vacancy lies. Measures have been put in place to mitigate void costs in this property, where possible.

 

On 22 May 2023, the Company repaid the unsecured shareholder loan of £1,000,000 in full. In addition, the final sum of £50,000 relating to the 5% convertible loan notes was settled with the balance and associated interest settled in shares.

 

The £10 million convertible loan note has been renewed for a further two years, with expiry in May 2025.

 

The Company currently has cash resources of approximately £3 million to invest in UK freehold and long leasehold commercial properties according to its existing policies. Surplus funds will be invested short term with UK deposit takers regulated by the Bank of England. There has been no change in the status of the deposit placed with LiBank s.a.l.

 

A portion of the Company's loan facility with Coutts & Co, which stood at £17,675,500 at the balance sheet date, is due to mature in April 2024. Negotiations are well advanced to renew or replace this loan.

 

As detailed in the 2023 Annual Report, the Board remains committed to establishing regular distributions to shareholders and dividend payments will recommence once adequate reserves are available.

 

The following statistics are key to the Company's activities at 31 October 2023:

a)     Portfolio Bank Loan to Value is 53% (H1 2022: 55%)

b)    Weighted Average Unexpired Lease to Break is 6.50 years (H1 2022: 6.52 years)

c)     46% of tenants are government bodies (H1 2022: 47%); 52% are major industrial & commercial (H1 2022: 51%)

 

As we face into a new year, the economy is once again impacted by the ongoing wars in Ukraine and in the Middle East. Whilst we expect a period of disruption in the UK property market, the Directors believe the Group is well positioned to withstand the challenges and prosper in the future.

 

 

Dr Tony Ghorayeb

Chairman

25 January 2024

 



Unaudited group statement of comprehensive income

for the six months ended 31 October 2023

 

 


   Year to date 31 October 2023 (Unaudited)  

   Six months ended 31 October 2022 (Unaudited)  

 Year ended 30 April 2023 (Audited)

 

  GBP 

  GBP 

  GBP 





Turnover

2,714,887

2,700,031

5,557,714





Loss on disposal of investment property

-

(29,442)

(29,442)

Administrative expenses

(699,032)

(867,144)

(1,875,448)

Fair value loss on investment property

-

-

(600,000)

Fair value loss on investments

-

-

(430,911)

Dilapidations Settlement

-

127,954

277,954

Finance cost

(2,099,759)

(1,536,238)

(3,382,440)

Finance income

79,218

336,222

218,916

Profit /(Loss) for the period

(4,686)

731,383

(263,657)





Taxation

7,572

(144,558)

(41,885)





Profit / (Loss) after taxation

2,886

586,825

(305,542)





Other comprehensive income

208,600

-

-





Total comprehensive income for the period

211,486

586,825

(305,542)

 

 

           

Earnings per share - profit after tax





Pence*

Pence*

Pence*

Basic

0.00

1.00

(0.48)

Diluted

0.00

0.80

(0.48)





Earnings per share - total comprehensive income on redemption and rollover of CLNs

Pence*

Pence*

Pence

Basic

0.30

1.00

(0.48)

Diluted

0.25

0.80

(0.48)

                                                                                                                                    

 

  *Unaudited

 

 



 


 


Unaudited group statement of financial position

 



at 31 October 2023

 




At 31 October 2023 (Unaudited)

At 31 October 2022 (Unaudited)  

At 30 April 2023 (Audited)

 

  GBP 

  GBP 

  GBP 

ASSETS




Non-current assets




Investment properties

81,014,707

76,500,343

78,106,598

Investments

3,810,015

4,240,851

3,810,015

Deferred tax

298,238

186,738

298,237

Derivative Financial Instrument

-

662,864

509,292


85,122,960

81,590,796

82,724,142

Current assets




Trade and other receivables

1,067,178

570,885

1,251,468

Derivative Financial Instrument

287,898

-

-

Cash and cash equivalents

3,048,599

6,581,380

6,228,032


4,403,675

7,152,265

7,479,500





TOTAL ASSETS

89,526,635

88,743,061

90,203,642





EQUITY AND LIABILITIES




Current Liabilities




Trade and other payables

1,857,050

2,915,535

2,421,557

Taxation

121,211

835,999

320,341

Borrowings

18,442,067

11,467,712

29,886,011


20,420,328

15,219,246

32,627,909

Non-current liabilities




Borrowings

33,885,476

40,911,053

23,148,832


33,885,476

40,911,053

23,148,832

EQUITY




Issued capital and reserves




Share capital

17,915,185

14,717,563

17,806,741

Share premium reserve

17,215,200

16,992,912

17,010,240

Other reserve

477,640

208,600

208,600

Treasury shares

(880,620)

(480,620)

(880,620)

Retained earnings

493,426

1,174,307

281,940

Total equity attributable to owners of the parent

35,220,831

32,612,762

34,426,901





TOTAL EQUITY AND LIABILITIES

89,526,635

88,743,061

90,203,642

 

 

 



 

 

Unaudited Group cash flow statement

for the six months ended 31 October 2023





   Year to date 31 October 2023 (Unaudited)  

   Six months ended 31 October 2022 (Unaudited)  

 Year ended 30 April 2023 (Audited)

 

  GBP 

  GBP 

  GBP 

Profit / (Loss) before tax

(4,686)

731,383

(263,657)

Cash flow from operating activities




Adjustments for:

 



Finance income

(79,218)

(336,222)

(218,916)

Finance costs

2,099,759

1,536,238

3,382,440

Loss on disposal of investment property

-

29,442

29,442

Fair value adjustments

-

-

1,030,911

Decrease / (increase) in receivables

281,319

(33,481)

(762,949)

Decrease in payables

(484,687)

(247,356)

(839,915)

Tax paid

(183,797)

(258,810)

(791,055)

Interest paid

(1,736,839)

(1,242,204)

(2,735,433)

Other financial costs paid

(100,000)

(454,535)

(455,715)

Share issue costs

-

-

126,022

Net cash used by operating activities

(208,149)

(275,545)

(1,498,825)

Cash flows from investing activities




Interest received

58,035

9

4,986

Purchase of investment properties

(2,908,109)

(4,326)

(2,206,255)

Sale of investment properties

-

820,558

820,558

Net cash (used) / generated by investing activities

(2,850,074)

816,241

(1,380,711)

Cash flows from financing activities




Share issue, net of issue costs

-

-

2,980,484

Purchase of treasury shares

-

-

(400,000)

Long term loans advanced

1,650,000

22,027,500

23,227,500

Long term loan repaid

-

(379,850)

(1,093,450)

    Short term loans repaid

(1,747,350)

(15,890,751)

(15,890,751)

Equity dividend paid

(23,860)

(1,962,088)

(1,962,088)

Net cash (used) / generated by financing activities

(121,210)

3,794,811

6,861,695

Net (decrease) / increase in cash and cash equivalents

(3,179,433)

4,335,507

3,982,159

Cash and cash equivalents at the beginning of the period

6,228,032

2,245,873

2,245,873

Cash and cash equivalents at the end of the period

3,048,599

6,581,380

6,228,032

 

 

 

 

 

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 2023. Those financial statements were prepared on a going concern basis.

The interim report for the six months to 31 October 2023 was approved by the Board on 25 January 2024.

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


Laura Yates, Finance Director

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



 






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