Ace Liberty & Stone - INTERIM RESULTS FOR SIX MONTHS TO 31 OCTOBER 2025

Ace Liberty and Stone plc

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

INTERIM RESULTS FOR SIX MONTHS TO 31 OCTOBER 2025

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 2025 to 31 October 2025. 

Highlights*:

·      Profit before tax £289,897 (October 2024: Loss £243,144)

·      Rental income down 2.8% to £2,667,929 (October 2024: £2,745,088) due to disposals

·      Administration costs down 12.2% to £590,147 (October 2024: £672,251)

·    Negotiations progressing with CLN holder regarding the potential acquisition of a combination of certain subsidiaries and properties

·      Short term extension agreed on Coutts facility to March 2026

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

Ismail Ghandour, Chief Executive Officer, commented:

"Over the past six months the Ace team has continued to focus on the key pillars of the business with lease regears and cost management as a priority. As expected, the reduction in interest rates has improved profitability and throughout 2026 we would expect to see a tightening of yields as sentiment improves. There are a number of key transactions to complete over the coming months but our focus remains on generating long-term value for our shareholders."

Chairman's statement

I am pleased to present the Company's interim results for the half year ended 31 October 2025. Turnover at £2,667,929 for the half year is down 2.8% on the comparable value for the previous year of £2,745,088 primarily due to disposals. Pre-tax profit of £289,897 compares to a loss of £243,144 at October 2024 largely as a result of decreased finance costs together with a reduction in overhead expenses for the business. No adjustments have been considered necessary to the values of investment property assets at the half year.

During the period, the Company completed the disposal of the freehold of Loders service station, Dorchester for a consideration of £2,210,000. Several other transactions are under consideration and acquisitions and disposals will be made when advantageous to the Company.

A debt facility, totalling £20,025,000 at 31 October 2025, which is secured against properties owned by Ace (Gateshead) Limited, Ace (Hanley) Limited, Ace (Keighley) Limited, Ace (Management) Limited, Ace (Manchester) Limited and Ace (Sunderland) Limited has been further extended to March 2026. This short extension was agreed on existing terms with the current lender whilst bank valuations are finalised. Negotiations to renew or replace this loan are well-advanced.

As announced previously, non-binding Heads of Terms have been signed with the holder of the £10 million unsecured convertible loan note regarding the potential acquisition of a combination of certain subsidiaries and properties. The proposed purchase price represents a premium to the aggregate investment property valuation as at 30 April 2025 and the outstanding loan note is intended to be used as part payment. This transaction continues to progress and a short extension to 31 March 2026 has been signed to facilitate legal due diligence. The Board expects to update shareholders on this matter imminently.

The Ace portfolio remains robust with a strong occupancy rate of 94% at 31 October 2025. Of that vacant space, one unit at Margate which was void for a brief period in the autumn has now been relet and a letting has been agreed for part of the vacant space at our property in Sunderland. These lettings will reduce void costs and measures have been put in place to mitigate any remaining costs where possible. Furthermore, discussions have continued with Sunderland City Council regarding a dilapidations settlement which will then enable negotiations to progress regarding the future re-development of the upper floors of the building.

The Company currently has cash resources of approximately £1.7 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 cash contribution to capital investment in Lebanon at the half year. However, the Board continues to recognise the risk associated with remitting funds to the UK and the investment value will be reviewed at year end, in line with our usual policy.

The following statistics are key to the Company's activities at 31 October 2025:

a)     Portfolio Bank Loan to Value is 49% (October 2024: 51%)[1]

b)    Weighted Average Unexpired Lease to Break is 4.74 years[2] (October 2024: 5.94 years)

c)     47% of tenants are government bodies (October 2024: 46%); 51% are major industrial & commercial (October 2024: 52%)

Whilst there remain some short-term hurdles to overcome, namely the ongoing refinancing and the impact of yields on valuation, the Directors of Ace remain confident in the long-term prospects for the company. The executive team are progressing on a number of transactions which will be positive for the business in terms of valuation and income generation. I am pleased to see a return to profitability at the half year and the Board remains committed to establishing regular distributions to shareholders once adequate reserves are available. 

[1] Total bank debt to portfolio valuation at 31 October 2025

[2] Several new leases and renewals are in progress which will improve the WAULB

Unaudited group statement of comprehensive income

for the six months ended 31 October 2025

  *Unaudited