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"

 

 

-ends-

 

 

For further information, please contact:

 

Ace Liberty & Stone Plc

Tel: +44 (0) 20 7201 8340

Laura Yates, Finance Director

www.acelibertyandstone.com



 


Alfred Henry Corporate Finance Ltd

Tel: +44 (0) 20 3772 0021

AQSE Growth Market Corporate Adviser

www.alfredhenry.com

Nick Michaels




 


 


SP Angel Corporate Finance LLP

Tel: +44 (0)20 3470 0470

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


-

 

.

 

 

 

- ends -

 

 

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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