Final Results

Ace Liberty & Stone PLC

11 September 2024

 

Ace Liberty and Stone plc

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

FINAL RESULTS FOR THE YEAR ENDED 30 APRIL 2024

Focused on delivering long-term value for shareholders

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 its results for the year ended 30 April 2024. 

Financial Highlights:

·      Revenue stable at £5,585,526 (FY 2023 £5,557,714)

·      Value of investment property down 3.5% to £75,339,777 (FY 2023 £78,106,598) as a result of fair value adjustments largely driven by yield movements

·      £10 million CLN extended for a further 2 years to May 2025

·      £1 million shareholder loan repaid in full reducing debt balance

·      Occupancy of 96% across the portfolio

·      97% of Groups income from Government and Major Industrial & Commercial companies

Ismail Ghandour, Chief Executive Officer, commented:

"It has been a challenging year for Ace with significant headwinds felt across the property sector. We remain confident in the underlying strength of our assets and our ability to deliver long-term returns for our shareholders"

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For further information, please contact:

Ace Liberty & Stone Plc	Tel: [phone]
Laura Yates, Finance Director	www.acelibertyandstone.com
Alfred Henry Corporate Finance Ltd	Tel: [phone]
AQSE Growth Market Corporate Adviser	www.alfredhenry.com
Nick Michaels

Chairman's Statement

This year has been an active year for Ace Liberty & Stone plc. Notwithstanding the macroeconomic challenges, the team has continued to progress on a number of transactions and the focus remains on delivering long-term returns to shareholders.

On 22 May 2023, the Company repaid the unsecured shareholder loan of £1,000,000 in full, reducing the overall debt balance for the Group. In addition, the final sum of £50,000 relating to the 5% Convertible Loan Notes ("CLN") was settled with the balance and associated interest paid in shares. The £10 million CLN was extended for a further 2 years to May 2025 at a fixed interest rate of 6%. Finally, a new £17.7 million debt facility, secured against the properties held in Ace (North) Limited, is due to complete before the end of September 2024, reaffirming Coutts support of the business as the sole bank lenders to the Group.

Egerton Park service station, Leicester Road, Melton Mowbray was sold in May 2024 for a consideration of £2,750,000. The property was purchased in July 2023 at a price of £2,744,852 (excluding costs). Furthermore, as outlined in my interim statement, the planned acquisition of Hunters Row, Stafford did not proceed, increasing cash reserves. Several other transactions are under consideration, and acquisitions and disposals will be made when advantageous to the Company.

During the year, revenue increased marginally to £5,585,526 largely driven by income from new acquisitions. Administrative expenses have reduced from £1,875,448 to £1,361,120. The reduction is largely due to one-off costs in the prior year. However, the Directors have also aimed to reduce variable expenditure items across the Group. Finance costs increased from £3,382,440 to £4,357,305 largely due to higher interest payments. This is a result of increased interest rates together with a higher level of bank debt following the drawdown of the Coutts facility in September 2022. Our bank loan to value remains conservative at 54% and there was over £3 million cash and cash equivalents available at year end. Fair value adjustments of £2,929,930 to investment property and £1,290,861 to the investment in Lebanon have reduced profit, with the Group reporting a loss before tax of £4,234,825. It is important to note that these adjustments are non-recurring. We analyse the impact of this on the Summary Income Statement shown within the Key Performance Indicators section of this report.

The past year has been a challenging one for the Company and for the UK real estate sector as a whole. With high interest rates, ongoing conflicts in Ukraine and the Middle East as well as a general election, uncertainty has impacted real estate valuations. This has been largely felt in the office sector as sentiment remains uncertain post Brexit and Covid-19. However, we remain confident in the robustness of the office market and believe this sector will rebound. The Group has recorded a decrease of £2.9 million in the valuation of investment properties at year end 2024, largely due to yield movements.

The cash contribution to capital investment in Lebanon has been further impaired during the year to recognise the risk associated with remitting the funds to the UK due to both the current economic conditions in Lebanon and the risk of escalation in the war with Israel. It remains the Company's intention to utilise the funds for investment when circumstances allow.

No dividends have been paid for the year ended 30th April 2024. The Board remains committed to establishing regular distributions to shareholders and dividend payments will recommence once adequate reserves are available.

We were sad to announce the death of our colleague Ivan Minter during the year. Ivan had been with Ace since 2007 and was instrumental in the success and growth of the Company. I once again offer deepest condolences to his family and loved ones. In May 2024, we appointed Eric Michael Gummers to the Board. Eric is a former partner at Howard Kennedy LLP and will join the Board as Senior Independent Director. Eric will also join the audit and remuneration committees in place of Ivan. Keith Pankhurst, previously Senior Independent Director, will remain on the Board as a Non-Executive Director.

Whilst the results for the year under review reflect the impact of a period of disruption in the property sector due to Brexit, Covid-19 and now wars across Europe and the Middle East, the strength of Ace has always been in both the quality of its tenants and its geographically diverse assets delivering secure long-term income. This remains unchanged. The Directors are confident in the longer-term prospects for Ace and its ability to deliver returns to shareholders.

Dr Tony Ghorayeb

Chairman

Date:  10 September 2024

Consolidated Statement of Comprehensive Income for the year ended 30 April 2024

			2024				2023
			£				£
Revenue			5,585,526				5,557,714
Loss on disposal of investment property			-				(29,442)
Administrative expenses			(1,361,120)				(1,875,448)
Fair value loss on investment property			(2,929,930)				(600,000)
Fair value loss on investments			(1,290,861)				(430,911)
Dilapidations settlement			-				277,954
Finance cost			(4,357,305)				(3,382,440)
Finance income			118,865				218,916
Loss before taxation			(4,234,825)				(263,657)
Taxation			740,054				(41,885)
Loss after taxation			(3,494,771)				(305,542)
Other comprehensive income - release of equity proportion of CLNs			208,600				-
Total comprehensive income for the period			(3,286,171)				(305,542)
Attributable to:
Owners of the parent			(3,286,171)				(305,542)
Earnings per share on continuing activities				Pence		Pence
Basic earnings per share attributable to equity owners of the parent				(4.59)		(0.48)
Diluted earnings per share attributable to equity owners of the parent				(4.59)		(0.48)

Consolidated Statement of Financial position at 30 April 2024

			Group
			2024		2023
			£		£
ASSETS
Non-current assets
Investment property			75,339,777		78,106,598
Investments			2,519,154		3,810,015
Deferred tax			989,942		298,237
Derivative financial instrument			-		509,292
			78,848,873		82,724,142
Current assets
Assets held for sale			2,750,000		-
Deferred tax			40,777		-
Trade and other receivables			582,327		1,251,468
Taxation			29,421		-
Cash and cash equivalents			3,207,678		6,228,032
			6,610,203		7,479,500
TOTAL ASSETS			85,459,076		90,203,642
EQUITY AND LIABILITIES
Current liabilities
Liabilities relating to assets held for sale			1,591,930		-
Trade and other payables			1,771,171		2,421,557
Taxation			-		320,341
Borrowings			18,091,950		29,886,011
			21,455,051		32,627,909
Non-current liabilities
Borrowings			32,272,571		23,148,832
			32,272,571		23,148,832
Share capital			17,918,185		17,806,741
Share premium			17,220,480		17,010,240
Other reserve			477,640		208,600
Treasury shares			(880,620)		(880,620)
Retained earnings			(3,004,231)		281,940
Total equity			31,731,454		34,426,901
TOTAL EQUITY AND LIABILITIES			85,459,076		90,203,642

Consolidated Cash Flow Statement for the year ended 30 April 2024

							2024		2023
							£		£
Loss before tax							(4,234,825)		(263,657)
Cash flow from operating activities
Adjustments for:
Finance income							(118,865)		(218,916)
Finance costs							4,357,305		3,382,440
Loss on disposal of investment property							-		29,442
Fair value adjustment							4,220,791		1,030,911
(Decrease) / Increase in receivables							757,569		(762,949)
Decrease in payables							(546,348)		(839,915)
Tax paid							(334,428)		(791,055)
Interest paid							(3,378,215)		(2,735,433)
Other finance costs paid							(100,000)		(455,715)
Professional fees settled in shares							8,280		-
Share issue costs							-		126,022
Net cash (used) / generated by operating activities							631,264		(1,498,825)
Cash flows from investing activities
Interest received							143,801		4,986
Purchase of investment properties							(2,913,109)		(2,206,255)
Sale of investment properties							-		820,558
Net cash used by investing activities							(2,769,308)		(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		23,227,500
Long-term loans repaid							(807,950)		(1,093,450)
Short-term loans repaid							(1,700,500)		(15,890,751)
Equity dividend paid							(23,860)		(1,962,088)
Net cash generated / (used) by financing activities							(882,310)		6,861,695
Net increase / (decrease) in cash and cash equivalents							(3,020,354)		3,982,159
Cash and cash equivalents at the beginning of the period							6,228,032		2,245,873
Cash and cash equivalents at the end of the period							3,207,678		6,228,032

NOTES TO PRELIMINARY RESULTS FOR THE PERIOD ENDED 30 APRIL 2024

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 10 September 2024.

The preliminary announcement of the results for the year ended 30 April 2024 was approved by the board of directors on 10 September 2024.

2.         Earnings per Share

The calculations of earnings per share are based on the following earnings and numbers of shares.
Loss for the period attributable to equity owners		(3,286,171)		(305,542)
		shares of 25p		shares of 25p
Weighted average number of shares
For basic earnings per share		71,605,008		63,997,280
Dilutive effect of share options		14,035,088		14,568,122
For diluted earnings per share		85,640,096		78,595,402
Earnings per share		pence		pence
Basic		(4.59)		(0.48)
Diluted		(4.59)		(0.48)
		£		£
Dividends declared during the year - per share of 25p		-		0.034
Dividends declared during the year - total		-		2,001,588

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The Directors 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

 

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