Final Results

Ace Liberty & Stone PLC

22 September 2023

 

Ace Liberty and Stone plc

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

FINAL RESULTS FOR THE YEAR ENDED 30 APRIL 2023

Well-positioned to deliver 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 delighted to announce its results for the year ended 30 April 2023. 

Financial Highlights:

·      Value of investment property up 2.1% to £78,106,598 (FY 2022 £76,500,343)

·      Shareholders' funds up 1.3% to £34,426,901 (FY 2022 £33,988,485)

·      Cash resources of £6,228,032 following successful open offer and refinancing (FY 2022 £2,245,873)

·      Revenue reduced 2.5% to £5,557,714 (FY 2022 £5,697,850) largely due to disposals in the prior year

·      98% of Group's income from Government and Major Industrial & Commercial companies

Ismail Ghandour, Chief Executive Officer, commented:

"In a challenging economic environment, Ace is well-positioned with a healthy balance sheet and significant cash resources to explore any opportunities that may arise"

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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
SP Angel Corporate Finance LLP	Tel: [phone]
Broker	www.spangel.co.uk
Vadim Alexandre / Rob Rees

Chairman's Statement

I am pleased to present my Chairman's Statement on the results for the year ending 30 April 2023. The past year has been an active year for the Company. During the year under review, the Company successfully completed a £22 million refinancing with Coutts & Co, who are now the sole bank lenders to the Group. In addition, with the support of existing shareholders,

£3 million was raised following a successful Open Offer of shares. Together, these transactions have strengthened the balance sheet with over £6 million cash and cash equivalents available at year end.

We have welcomed two new Board members during the year, Nick Jones as Property Director and Laura Yates as Finance Director. Ivan Minter has moved to a non-executive role focusing on corporate governance, where his wealth of experience and expertise can assist in driving the growth of the Company. Mark Thomas and Hikmat El-Rousstom stepped down from the Board during the year to focus on other endeavours and we wish them every success for the future.

Two properties have been acquired during the period and subsequently, Loders service station in Dorchester and Egerton Park service station in Melton Mowbray, further details of which can be found in the strategic report. Completion of the acquisition of Hunters Row, Stafford is expected in December 2023.

During the year, revenue reduced 2% to £5,557,714 largely due to disposals in the prior year, partially offset by income from new acquisitions. Administrative expenses have increased from £1,291,943 to £1,875,448. The increase is driven in the most part by void costs of approximately £235,000 related to a vacant unit in Sunderland. The majority of this cost is historic and non-recurring as mitigating actions have now been put in place. In addition, staff costs have increased by approximately £182,000, which is largely related to non-recurring costs incurred as a result of changes to the Board. Dilapidations settlements in respect of Fawcett House, Sunderland and Telephone House, Sheffield resulted in one-off income totalling £277,954. Finance costs increased from £2,792,045 to £3,382,440. This is a result of increased bank debt following the drawdown of the Coutts facility in September 2022 and increasing interest rates. Our loan to value remains conservative at 54%. Fair value adjustments of £600,000 to investment property and £430,911 to the investment in Lebanon have reduced profit, with the Group reporting a loss before tax of £263,657.

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 current economic conditions in Lebanon. However, it remains the Company's intention to utilise the funds for investment, when circumstances allow.

The Company paid an interim dividend of 3.4p per share in October 2022 which was intended to recompense shareholders for a long gap in dividend payments. This dividend payment utilised a large portion of the Company's distributable reserves and, as such, no final dividend was declared for the year ended April 2023. The Board remains committed to establishing regular distributions to shareholders and dividend payments will recommence once adequate reserves are available.

The past number of years have been challenging for the UK economy with the unprecedented impact of the Covid-19 pandemic and the uncertainty caused by Brexit. Ace's robust portfolio withstood the many challenges during this period but new challenges are upon us. The ongoing Ukraine conflict, together with rising interest rates and inflation, which accelerated following the mini budget in September 2022, leave the economy in a very different place compared to 12 months ago. The volatility in the interest rate market has had a particular impact on property valuations and the real estate market.

In spite of the challenging economic conditions facing the Company, the Directors are confident in the long-term strength of Ace. The Board has focused on developing a portfolio of geographically diverse, low-risk assets with a secure tenant base. Together with significant cash reserves at year end, the portfolio is in a strong position to perform well against this backdrop of economic turmoil.

Dr Tony Ghorayeb

Chairman

Date:  19 September 2023

Consolidated Statement of Comprehensive Income for the year ended 30 April 2023

		2023		2022
		£		£
Revenue		5,557,714		5,697,850
Gain / (Loss) on disposal of investment property		(29,442)		917,203
Administrative expenses		(1,875,448)		(1,291,943)
Fair value gain / (loss) on investment property		(600,000)		193,704
Fair value loss on investments		(430,911)		(797,576)
Fair value loss on assets held for sale		-		(200,000)
Loss on disposal of subsidiaries		-		(412,382)
Dilapidations settlement		277,954		-
Finance cost		(3,382,440)		(2,792,045)
Finance income		218,916		751,421
Profit / (Loss) before taxation		(263,657)		2,066,232
Taxation		(41,885)		(769,427)
Profit / (Loss) after taxation		(305,542)		1,296,805
Other comprehensive income - release of equity proportion of CLNs		-		202,302
Total comprehensive income for the period		(305,542)		1,499,107
Attributable to:
Owners of the parent		(305,542)		1,499,107

Earnings per share on continuing activities		Pence		Pence
Basic earnings per share attributable to equity owners of the parent		(0.48)		2.55
Diluted earnings per share attributable to equity owners of the parent		(0.48)		2.03

Consolidated Statement of Financial position at 30 April 2023

					2023		2022
					£		£
	ASSETS
	Non-current assets
	Investment property				78,106,598		76,500,343
	Investments				3,810,015		4,240,851
	Deferred tax				298,237		186,738
	Derivative financial instrument				509,292		326,651
					82,724,142		81,254,583
	Current assets
	Assets held for sale				-		850,000
	Trade and other receivables				1,251,468		533,079
	Cash and cash equivalents				6,228,032		2,245,873
					7,479,500		3,628,952
	TOTAL ASSETS				90,203,642		84,883,535
	EQUITY AND LIABILITIES
	Current liabilities
	Trade and other payables				2,421,557		3,072,567
	Taxation				320,341		953,280
	Borrowings				29,886,011		17,644,125
					32,627,909		21,669,972
	Non-current liabilities
	Borrowings				23,148,832		29,225,078
					23,148,832		29,255,078
	Share capital				17,806,741		14,711,713
	Share premium				17,010,240		16,975,362
	Other reserve				208,600		208,600
	Treasury shares				(880,620)		(480,620)
	Retained earnings				281,940		2,573,430
	Total equity				34,426,901		33,988,485
	TOTAL EQUITY AND LIABILITIES				90,203,642		84,883,535

Consolidated Cash Flow Statement for the year ended 30 April 2023

							2023		2022
							£		£
Profit / (Loss) before tax							(263,657)		2,066,232
Cash flow from operating activities
Adjustments for:
Finance income							(218,916)		(751,421)
Finance costs							3,382,440		2,792,045
(Gain) / Loss on disposal of investment property							29,442		(917,203)
Fair value adjustment							1,030,911		803,872
Loss on disposal of subsidiaries							-		412,382
(Decrease) / Increase in receivables							(762,949)		200,258
Decrease in payables							(839,915)		(1,789,890)
Tax paid							(791,055)		(189,720)
Interest paid							(2,735,433)		(2,050,999)
Other finance costs paid							(455,715)		(39,469)
Share issue costs							126,022		-
Net cash (used) / generated by operating activities							(1,498,825)		536,087
Cash flows from investing activities
Interest received							4,986		825
Purchase of investment properties							(2,206,255)		-
Sale of investment properties							820,558		4,317,203
Sale of subsidiaries							-		5,067,061
Investment into LiBank							-		(37,747)
Net cash (used) / generated by investing activities							(1,380,711)		9,347,342
Cash flows from financing activities
Share issue, net of issue costs							2,980,484		-
Purchase of treasury shares							(400,000)		-
Long-term loans advanced							23,227,500		-
Long-term loans repaid							(1,093,450)		(761,950)
Short-term loans repaid							(15,890,751)		(9,788,969)
Equity dividend paid							(1,962,088)		-
Net cash generated / (used) by financing activities							6,861,695		(10,550,919)
Net increase / (decrease) in cash and cash equivalents							3,982,159		(667,490)
Cash and cash equivalents at the beginning of the period							2,245,873		2,913,363
Cash and cash equivalents at the end of the period							6,228,032		2,245,873

NOTES TO PRELIMINARY RESULTS FOR THE PERIOD ENDED 30 APRIL 2023

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 19 September 2023.

The preliminary announcement of the results for the year ended 30 April 2023 was approved by the board of directors on 19 September 2023.

2.         Earnings per Share

The calculations of earnings per share are based on the following earnings and numbers of shares.
Profit / (Loss) for the period attributable to equity owners		(305,542)		1,499,107
Weighted average number of shares		shares of 25p		shares of 25p
For basic earnings per share		63,997,280		58,780,517
Dilutive effect of share options		14,568,122		14,940,383
For diluted earnings per share		78,595,402		73,720,900
Earnings per share		pence		pence
Basic		(0.48)		2.55
Diluted		(0.48)		2.03
		£		£
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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