Ace Liberty and Stone plc
(''Ace'' or "the Company'')
INTERIM RESULTS FOR SIX MONTHS TO 31 OCTOBER 2024
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 2024 to 31 October 2024.
Highlights*:
· Rental income up 1.1% to £2,745,088 (October 2023: £2,714,887)
· Administration costs down 3.8% to £672,251 (October 2023: £699,032)
· Loss before tax of £243,144 largely driven by increased finance costs (October 2023: loss £4,686)
· Completion of Melton Mowbray disposal in May 2024
· Completion of £17.7 million debt facility in September 2024
*Note: Full details can be found in the Chairman's statement
Ismail Ghandour, Chief Executive Officer, commented:
"Despite the challenging macroeconomic climate, our portfolio has remained stable, providing consistent revenue and high occupancy levels. With interest rates forecast to reduce as we move into 2025, we expect to see a reduction in finance costs and an improvement in profitability. Nevertheless, we remain focused on cost management, regearing leases and refinancing to deliver long-term value to our shareholders."
Chairman's statement
I am pleased to announce the Company's interim results for the half year ended 31 October 2024. Turnover at £2,745,088 for the half year is up 1.1% on the comparable value for the previous year of £2,714,887. Pre-tax loss has increased from £4,686 in October 2023 to a loss of £243,144 in October 2024 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 disposal of the freehold of Egerton Park service station, Melton Mowbray for a consideration of £2,750,000. Several other transactions are under consideration and acquisitions and disposals will be made when advantageous to the Company.
A debt facility totalling £17,741,800 secured against the properties held in Ace (North) Limited completed in September 2024. The facility was provided by Coutts & Co who had held the existing debt against these properties and remain the sole bank lender to the Group. A further portion of the Company's loan facility with Coutts & Co, which stood at £20,692,500 at the balance sheet date, is due to mature in September 2025 and negotiations to renew or replace this loan will commence later in 2025.
The Ace portfolio remains robust with a strong occupancy rate of 96%. There is one void unit across the portfolio at our property Fawcett House in Sunderland, where discussions have continued with Sunderland City Council on the future re-development of the building. Measures have been put in place to mitigate void costs in this property, where possible.
The £10,000,000 convertible loan note is due to expire in May 2025. Early stage discussions are underway with the noteholder regarding this expiry.
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 Directors acknowledge the impact of the wars in the region and the investment value will be reviewed at year end, in line with our usual policy.
As detailed in the 2024 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 2024:
a) Portfolio Bank Loan to Value is 51% (October 2023: 53%)
b) Weighted Average Unexpired Lease to Break is 5.94 years (October 2023: 6.50 years)
c) 46% of tenants are government bodies (October 2023: 46%); 52% are major industrial & commercial (October 2023: 52%)
Whilst the economic outlook remains uncertain as we head into 2025, the fundamental strengths which underpin the Ace business model are unchanged. The Group continues to see stable revenue and high occupancy rates from our geographically diverse asset base. With inflation falling closer to Government targets we expect to see a further drop in interest rates which may lead to improved liquidity and sentiment in the UK property sector. The Directors of Ace remain confident in the long-term prospects for the business and are committed to delivering value for our shareholders.
Dr Tony Ghorayeb Chairman 23 January 2025 | | |
Unaudited group statement of comprehensive income
for the six months ended 31 October 2024
| Year to date 31 October 2024 (Unaudited) | Six months ended 31 October 2023 (Unaudited) | Year ended 30 April 2024 (Audited) |
| GBP | GBP | GBP |
| | | |
Turnover | 2,745,088 | 2,714,887 | 5,585,526 |
| | | |
Loss on disposal of investment property | (37,515) | - | - |
Administrative expenses | (672,251) | (699,032) | (1,361,120) |
Fair value loss on investment property | - | - | (2,929,930) |
Fair value loss on investments | - | - | (1,290,861) |
Finance cost | (2,309,838) | (2,099,759) | (4,357,305) |
Finance income | 31,372 | 79,218 | 118,865 |
Profit /(Loss) for the period | (243,144) | (4,686) | (4,234,825) |
| | | |
Taxation | (40,777) | 7,572 | 740,054 |
| | | |
Profit / (Loss) after taxation | (283,921) | 2,886 | (3,494,771) |
| | | |
Other comprehensive income | - | 208,600 | 208,600 |
| | | |
Total comprehensive income for the period | (283,921) | 211,486 | (3,286,171) |
Earnings per share - profit after tax | | | |
| Pence* | Pence* | Pence* |
Basic | (0.40) | 0.00 | (4.88) |
Diluted | (0.40) | 0.00 | (4.88) |
| | | |
Earnings per share - total comprehensive income on redemption and rollover of CLNs | Pence* | Pence* | Pence |
Basic | (0.40) | 0.30 | (4.59) |
Diluted | (0.40) | 0.25 | (4.59) |
*Unaudited
Unaudited group statement of changes in equity for the six months ended 31 October 2024 | Share capital | Share premium | Other reserve | Treasury shares | Retained earnings | Total equity |
| £ | £ | £ | £ | £ | £ |
Balance at 30 April 2023 | 17,806,741 | 17,010,240 | 208,600 | (880,620) | 281,940 | 34,426,901 |
Total comprehensive income for the period | | | | | | |
Profit for the period | - | - | - | - | 2,886 | 2,886 |
Other comprehensive income | - | - | - | - | 208,600 | 208,600 |
| - | - | - | - | 211,486 | 211,486 |
Transactions with owners |
| | | | | |
Shares issued during the year | 108,444 | 204,960 | - | - | - | 313,404 |
Value of conversion rights on convertible notes | - | - | (208,600) | - | - | (208,600) |
Equity element of new issue on convertible notes | - | - | 477,640 | - | - | 477,640 |
| 108,444 | 204,960 | 269,040 | - | - | 582,444 |
| | | | | | |
Balance at 31 October 2023 | 17,915,185 | 17,215,200 | 477,640 | (880,620) | 493,426 | 35,220,831 |
Total comprehensive income for the period | | | | | | |
Loss for the period | - | - | - | - | (3,497,657) | (3,497,657) |
| - | - | - | - | (3,497,657) | (3,497,657) |
Transactions with owners |
| | | | | |
Shares issued during the year | 3,000 | 5,280 | - | - | - | 8,280 |
| 3,000 | 5,280 | - | - | - | 8,280 |
| | | | | | |
Balance at 30 April 2024 | 17,918,185 | 17,220,480 | 477,640 | (880,620) | (3,004,231) | 31,731,454 |
Total comprehensive income for the year | | | | | | |
Loss for the period | - | - | - | - | (283,921) | (283,921) |
| - | - | - | - | (283,921) | (283,921) |
Transactions with owners | | | | | | |
Shares issued during the year | - | - | - | - | - | - |
| - | - | - | - | - | - |
| | | | | | |
Balance at 31 October 2024 | 17,918,185 | 17,220,480 | 477,640 | (880,620) | (3,288,152) | 31,477,534 |
Unaudited group statement of financial position |
| | |
at 31 October 2024 |
| | |
| At 31 October 2024 (Unaudited) | At 31 October 2023 (Unaudited) | At 30 April 2024 (Audited) |
| GBP | GBP | GBP |
ASSETS | | | |
Non-current assets | | | |
Investment properties | 75,339,777 | 81,014,707 | 75,339,777 |
Investments | 2,519,154 | 3,810,015 | 2,519,154 |
Deferred tax | 989,942 | 298,238 | 989,942 |
| 78,848,873 | 85,122,960 | 78,848,873 |
Current assets | | | |
Assets held for sale | - | - | 2,750,000 |
Deferred tax | - | - | 40,777 |
Trade and other receivables | 470,470 | 1,067,178 | 582,327 |
Derivative Financial Instrument | - | 287,898 | - |
Taxation | - | - | 29,421 |
Cash and cash equivalents | 1,706,532 | 3,048,599 | 3,207,678 |
| 2,177,002 | 4,403,675 | 6,610,203 |
| | | |
TOTAL ASSETS | 81,025,875 | 89,526,635 | 85,459,076 |
| | | |
EQUITY AND LIABILITIES | | | |
Current liabilities | | | |
Liabilities relating to assets held for sale | - | - | 1,591,930 |
Trade and other payables | 1,533,824 | 1,857,050 | 1,771,171 |
Taxation | - | 121,211 | - |
Borrowings | 31,143,459 | 18,442,067 | 18,091,950 |
| 32,677,283 | 20,420,328 | 21,455,051 |
Non-current liabilities | | | |
Borrowings | 16,901,059 | 33,885,476 | 32,272,571 |
| 16,901,059 | 33,885,476 | 32,272,571 |
EQUITY | | | |
Issued capital and reserves | | | |
Share capital | 17,918,185 | 17,915,185 | 17,918,185 |
Share premium reserve | 17,220,480 | 17,215,200 | 17,220,480 |
Other reserve | 477,640 | 477,640 | 477,640 |
Treasury shares | (880,620) | (880,620) | (880,620) |
Retained earnings | (3,288,152) | 493,426 | (3,004,231) |
Total equity attributable to owners of the parent | 31,447,533 | 35,220,831 | 31,731,454 |
| | | |
TOTAL EQUITY AND LIABILITIES | 81,025,875 | 89,526,635 | 85,459,076 |
| | | |
Unaudited Group cash flow statement
for the six months ended 31 October 2024
| | | |
Year to date 31 October 2024 (Unaudited) | Six months ended 31 October 2023 (Unaudited) | Year ended 30 April 2024 (Audited) | |
| GBP | GBP | GBP |
Profit / (Loss) before tax | (243,144) | (4,686) | (4,234,825) |
Cash flow from operating activities | | | |
Adjustments for: |
| | |
Finance income | (31,372) | (79,218) | (118,865) |
Finance costs | 2,309,838 | 2,099,759 | 4,357,305 |
Loss on disposal of investment property | 37,515 | - | - |
Fair value adjustments | - | - | 4,220,791 |
Decrease / (increase) in receivables | 107,822 | 281,319 | 757,569 |
Decrease in payables | (222,224) | (484,687) | (546,348) |
Tax (paid) / received | 29,421 | (183,797) | (334,428) |
Interest paid | (2,080,223) | (1,736,839) | (3,378,215) |
Other financial costs paid | (195,622) | (100,000) | (100,000) |
Professional fees settled in shares | - | - | 8,280 |
Net cash used by operating activities | (287,989) | (208,149) | 631,264 |
Cash flows from investing activities | | | |
Interest received | 35,408 | 58,035 | 143,801 |
Purchase of investment properties | - | (2,908,109) | (2,913,109) |
Sale of assets held for sale | 2,712,485 | - | - |
Sale of investment properties | - | - | - |
Net cash (used) / generated by investing activities | 2,747,893 | (2,850,074) | (2,769,308) |
Cash flows from financing activities | | | |
Liabilities relating to Assets held for sale repaid | (1,608,750) | - | - |
Long term loans advanced | 17,741,800 | 1,650,000 | 1,650,000 |
Long term loan repaid | (2,335,900) | - | (807,950) |
Short term loans repaid | (17,758,200) | (1,747,350) | (1,700,500) |
Equity dividend paid | - | (23,860) | (23,860) |
Net cash (used) / generated by financing activities | (3,961,050) | (121,210) | (882,310) |
Net (decrease) / increase in cash and cash equivalents | (1,501,146) | (3,179,433) | (3,020,354) |
Cash and cash equivalents at the beginning of the period | 3,207,678 | 6,228,032 | 6,228,032 |
Cash and cash equivalents at the end of the period | 1,706,532 | 3,048,599 | 3,207,678 |
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 2024. Those financial statements were prepared on a going concern basis.
The interim report for the six months to 31 October 2024 was approved by the Board on 23 January 2025.
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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