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DJ Ace Liberty & Stone PLC Final Results

TIDMALSP

RNS Number : 7006L

Ace Liberty & Stone PLC

05 October 2016

 
 Press Release   5 October 2016 
 

Ace Liberty and Stone plc

("Ace" or the "Company")

Final Results for the 12 months to 30(th) April 2016

Ace Liberty and Stone Plc (ISDX: ALSP), the active property investment company, capitalising on commercial property investment opportunities across the UK, today announces its Final Results for the year ended 30 April 2016.

Highlights

   -- The Group's property holdings have grown 23% during the year from GBP23,964,428 to GBP29,488,428 
 
   -- Total equity attributable to owners has increased by 45% in the year to GBP17,946,575 (2015: GBP12,410,366) 
 
   -- Consolidated Revenue for the year increased 70% to GBP2,037,308 (2015: GBP1,201,185) 
 
   -- Profit before tax decreased to GBP612,334 (2015: GBP1,055,581) as a result of a reduced portfolio valuation as 
       at 30th April 2016 
 
   -- Profit-yielding sales of properties including the final holding in Telephone House, Sheffield for GBP4,000,000 
       and Princegate House, Doncaster (excluding car park) for GBP850,000 
 
   -- The sale of Hume House has been agreed at GBP3,550,000 for completion in December 2016 
 
   -- Fundraising from existing shareholders of GBP3,500,000 
 
   -- Post year end, 1-5 Upper Market Square, Hanley purchased for GBP9,000,000. 

Commenting on the final results, Chairman of Ace Liberty and Stone Plc, said: "The year to 30(th) April 2016 has seen several notable achievements with the Group's property holdings growing during the year from GBP23,964,428 to GBP29,488,428. Furthermore, the sale of Hume House has been agreed at GBP3,550,000 for completion in December 2016, having been purchased for GBP1,670,000 in March 2014.

"It has been more difficult to complete transactions since the year end with the consequence that several properties which the Directors were negotiating to sell have remained in the Group's ownership. The timing of deals has certainly hit profitability, but there are now signs that this hesitancy on the part of purchasers is weakening. The Directors expect that, as confidence returns and the backlog of transactions is cleared, future profits will be increased by the amount the valuations were written down by in 2016."

- Ends -

For further information, please contact:

 
 Ace Liberty & Stone Plc 
 Ivan Minter, Financial Director       Tel: +44 (0) 20 7201 8340 
                                   http://acelibertyandstone.com 
 Alfred Henry Corporate Finance 
  Ltd, ISDX Corporate Adviser 
 Jon Isaacs / Nick Michaels            Tel: +44 (0) 20 7251 3762 
                                             www.alfredhenry.com 
 Hybridan LLP, Corporate 
  Broker 
 Claire Noyce / Darshan Patel           Tel: +44 (0)203 764 2341 
                                                www.hybridan.com 
 

Media enquiries:

 
 Abchurch Communications 
 Julian Bosdet / Rebecca   Tel: +44 (0) 20 7398 7700 
  Clube 
 ALS@abchurch-group.com       www.abchurch-group.com 
 

Notes to Editors

Ace Liberty & Stone Plc is a London-based property investment company with a diverse portfolio of properties located across the UK, currently including Leeds, Doncaster, Sunderland and Dudley. The Company locates commercial properties which have 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 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: http://acelibertyandstone.com/

Chairman's Statement

The year has seen several notable achievements. The sale of Hume House has been agreed at GBP3,550,000 for completion in December 2016, having been purchased for GBP1,670,000 in March 2014. The Group's property holdings have grown during the year from GBP23,964,428 to GBP29,488,428 and the Group also managed a very successful fundraising from existing shareholders (which was handsomely over-subscribed) of GBP3,500,000 in February, providing funds for the - post year-end - purchase of 1-5 Upper Market Square, Hanley valued at GBP9,000,000. This will take our portfolio to almost GBP40,000,000 by the date of the AGM. To put this in context, the consolidated balance sheet at 30 April 2013 published just three years ago showed investment properties valued at GBP1,271,000. The year also saw the sale of our final holding in Telephone House, Sheffield for GBP4,000,000 and the sale of Princegate House, Doncaster (excluding the car park, which we retain) for GBP850,000. Both these transactions yielded a profit for the Group.

It has been more difficult to complete transactions since the year end with the consequence that several properties which the directors were negotiating to sell have remained in the Group's ownership. In one specific instance a deal under negotiation with an overseas buyer was aborted as a direct consequence of the economic uncertainty stemming from the UK's referendum on membership of the European Union. The timing of deals has certainly hit profitability. As a result of the hiatus in transactions and the consequent uncertainty of date of sale, such properties have been included in the balance sheet at a lower value than would otherwise have been the case if we had been able to complete the planned sale after the year end. Assets held at 30 April 2016 have been valued at some GBP600,000 less than anticipated and this has resulted in a reduction of the year's profit before tax of the same amount. Fortunately, there are now signs that this hesitancy is weakening. The directors expect that as confidence returns and the backlog of transactions is cleared future profits will be increased by the amount by which the valuations were written down in 2016.

The results for the year show an increase in revenue from GBP1,201,185 for the year ended 30 April 2015 to GBP2,037,308 in the year under review. Because of the decision made by the directors to reduce the valuation of the Company's property portfolio at 30 April 2016, the profit before tax has dropped from GBP1,055,581 in the previous year to GBP612,334 in the year under review. Further details of the Group's performance are contained within the detailed reports.

The directors value the support of our shareholders and have continued our policy of increasing the dividend each year with a payment of 3.3% in June 2016. It is the Board's policy to continue to pay an increasing dividend unless constrained by economic conditions.

The current external circumstances do not diminish the Group's future prospects. We have actions in hand to enlarge the portfolio to our target of GBP50,000,000 within the next year without further shareholder investment.

Finally, on a personal note, I thank the Board for the confidence shown in my abilities by appointing me Chairman. On behalf of my colleagues I thank Keith Pankhurst for his hard work in this capacity over the past two years and I look forward to leading the Group during a period when we expect to reap further benefits from our past endeavours.

Dr Tony Ghorayeb

Chairman

Date: 4 October 2016

Group Statement of Comprehensive Income for the year ended 30 April 2016

 
                                       2016        2015 
                                        GBP         GBP 
 
 Revenue                          2,037,308   1,201,185 
 Administrative expenses        (1,201,655)   (887,425) 
 Fair value (losses )/gains 
  on investment property          (422,823)   1,186,983 
 Fair value gains on assets         705,681           - 
  held for sale 
 Finance cost                     (539,095)   (277,705) 
 Finance income                      32,918      43,743 
 Share-based payment charge               -   (211,200) 
 Profit before taxation             612,334   1,055,581 
 Taxation                         (352,341)   (296,559) 
                               ------------  ---------- 
 Profit after taxation              259,993     759,022 
 Other comprehensive income               -           - 
                               ------------  ---------- 
 Total comprehensive income 
  for the period                    259,993     759,022 
                               ============  ========== 
 
 Attributable to: 
 Owners of the parent               324,447     805,786 
 Non-controlling interest          (64,454)    (46,764) 
                               ------------  ---------- 
                                    259,993     759,022 
                               ============  ========== 
 
 
 Earnings per share                 Pence   Pence 
 Basic earnings per share 
  attributable to equity owners 
  of the parent                      0.04    0.13 
 Diluted earnings per share 
  attributable to equity owners 
  of the parent                      0.03    0.12 
 

otes GBP GBP

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DJ Ace Liberty & Stone PLC Final Results -2-

Group Statement of Financial position at 30 April 2016

 
 
                                                2016         2015 
                                                 GBP          GBP 
 ASSETS 
 Non-current assets 
 Investment property                      21,788,428   23,964,428 
                                         -----------  ----------- 
 
 Current assets 
 Assets held for sale                      7,700,000            - 
 Trade and other receivables                 134,253      128,301 
 Cash and cash equivalents                   517,632    1,947,384 
                                         -----------  ----------- 
                                           8,351,885    2,075,685 
                                         -----------  ----------- 
 
 TOTAL ASSETS                             30,140,313   26,040,113 
                                         ===========  =========== 
 
 
 EQUITY AND LIABILITIES 
 Current liabilities 
 Liabilities held for 
  sale                                     2,400,055            - 
 Trade and other payables                  1,394,996    1,100,447 
 Borrowings                                1,333,377    2,533,421 
                                         -----------  ----------- 
                                           5,128,428    3,633,868 
                                         -----------  ----------- 
 Non-current liabilities 
 Borrowings                                6,853,676    8,052,269 
 Other payables                                    -      918,524 
 Deferred tax                                211,634      364,435 
                                         -----------  ----------- 
                                           7,065,310    9,335,228 
                                         -----------  ----------- 
 Equity attributable to equity 
  owners 
 Share capital                             9,821,517    5,238,340 
 Share premium                             7,132,802    5,402,263 
 Share option reserve                        479,180      479,180 
 Other reserve                                     -      462,500 
 Retained earnings                           513,076      828,083 
                                         -----------  ----------- 
 Total equity attributable to 
  owners of the parent                    17,946,575   12,410,366 
                                         -----------  ----------- 
 Non-controlling interests                         -      660,651 
                                         -----------  ----------- 
 Total equity                             17,946,575   13,071,017 
                                         -----------  ----------- 
 
 TOTAL EQUITY AND LIABILITIES             30,140,313   26,040,113 
                                         ===========  =========== 
 
 

Group Cash Flow Statement for the year ended 30 April 2016

 
                                                2016           2015 
                                                 GBP            GBP 
 Profit before 
  tax                                        612,334      1,055,581 
 
 Cash flow from operating 
  activities 
 Adjustments for: 
 Finance income                             (32,918)       (43,743) 
 Finance costs                               539,095        277,205 
 Share-based payment charge                   68,750              - 
  - Included in administrative 
  expenses 
 Share-based payment charge 
  - Share options                                  -        211,200 
 Fair value adjustment                     (282,858)    (1,186,983) 
 (Increase) / decrease 
  in receivables                             (5,952)        311,956 
 (Decrease) / increase 
  in payables                               (31,342)        349,847 
 Tax paid                                   (27,150)       (44,773) 
 Interest paid                             (419,095)      (277,205) 
  Net cash generated by operating 
   activities                                420,864        653,085 
                                        ------------  ------------- 
 
 Cash flows from 
  investing activities 
 Interest received                            32,918         43,743 
 Purchase of investment 
  properties                             (8,756,874)   (12,745,178) 
 Sale of investment                        4,850,000              - 
  properties 
 Purchase of non-controlling             (1,235,650)              - 
  interest in subsidiary 
  ssubssubssubsidiary 
 Net cash used by investing 
  activities                             (5,109,606)   (12,701,435) 
                                        ------------  ------------- 
 
 Cash flows from 
  financing activities 
 Share issue, net 
  of issue costs                           4,328,716      2,844,470 
 Payment for shares 
  to be issued                                     -        462,500 
 Short term loans 
  advanced                                         -        435,938 
 Long term loans 
  advanced                                 1,969,539      7,702,500 
 Long term loans 
  repaid                                 (2,886,645)      (470,795) 
 Equity dividend 
  paid                                     (152,620)      (101,209) 
 Net cash generated 
  by financing activities                  3,258,990     10,873,404 
                                        ------------  ------------- 
 
 Net decrease in cash 
  and cash equivalents                   (1,429,752)    (1,174,946) 
                                        ------------  ------------- 
 
 Cash and cash equivalents 
  at the beginning of the period           1,947,384      3,122,330 
 
 Cash and cash equivalents 
  at the end of the period                   517,632      1,947,384 
                                        ============  ============= 
 
 

NOTES TO PRELIMINARY RESULTS FOR THE PERIOD ENDED 30 APRIL 2016

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 4th October 2016.

The preliminary announcement of the results for the year ended 30 April 2016 was approved by the board of directors on 4th October 2016.

2. Earnings per Share

The basic earnings / (deficit) per share is calculated by dividing net profit or loss for the year attributable to ordinary equity holders by the weighted average number of ordinary shares during the year.

The diluted earnings / (deficit) per share is calculated by dividing the net profit or loss attributable to ordinary shareholders after adjustments for instruments that dilute basic earnings per share by the weighted average of ordinary shares outstanding during the year (adjusted for the effects of dilutive instruments).

 
 The calculations of earnings per share are based on 
  the following earnings and numbers of shares. 
                                         2016          2015 
                                          GBP           GBP 
 Profit for the period 
  attributable to equity 
  owners                              324,447       805,786 
                                 ------------  ------------ 
                                       No. of        No. of 
                                       shares        shares 
 Weighted average number 
  of shares 
 For basic earnings per 
  share                           852,987,944   637,840,374 
 Dilutive effect of share 
  options                         102,333,333    58,333,333 
 For diluted earnings per 
  share                           955,321,277   696,173,707 
                                 ------------  ------------ 
 Earnings per share                     pence         pence 
 Basic                                   0.04          0.13 
 Diluted                                 0.03          0.12 
 
 Dividends declared during 
 the year - per share                       -         0.030 
                                          GBP           GBP 
 Dividends declared during 
 the year - total                           -       157,695 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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