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DJ Ace Liberty & Stone PLC Final Results

TIDMALSP

RNS Number : 3331S

Ace Liberty & Stone PLC

02 October 2017

 
 
 

Ace Liberty and Stone plc

(" Ace " or the "Company")

Final Results for the 12 months to 30(th) April 2017

Ace Liberty and Stone Plc (NEX: 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 2017.

Highlights

-- The Group's property holdings have grown 32% during the year from GBP29,488,428 to GBP38,979,308

-- Total equity attributable to owners has increased to GBP18,150,115 (2016: GBP17,946,575)

-- Consolidated Revenue for the year increased 29% to GBP2,632,219 (2016: 2,037,308)

-- Profit before tax increased to GBP1,122,317 (2016: GBP612,334)

-- Rationalisation of portfolio as a result of the sale of residential holdings.

-- Continuing support from Lloyds Bank plc: since the year end two further purchases have been arranged, also with finance from the group facility

-- Post year end, GBP10m issue of convertible loan note.

Commenting on the final results, Dr Tony Ghorayeb, Chairman of Ace Liberty and Stone Plc, said: "The year to 30(th) April 2017 and the period since has seen several achievements, most notably the Group's property holdings now exceeding GBP45m and the continued support of Lloyds Bank plc in allowing us to achieve this growth. The issue of a GBP10km convertible loan note since the year end will provide us with a platform for further expansion of the portfolio in the current financial year."

- 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, NEX Exchange 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 
 

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

I am pleased to report that Ace continues to make good progress and is active in the commercial property market. At 30 April 2017 the Group's portfolio was valued at GBP38,979,308 compared to GBP29,488,428 a year earlier. During the year ended 30 April 2017, Ace purchased 1 - 5 Upper Market Square, Hanley for GBP9,000,000 and Grosvenor Casino, Manchester for GBP4,000,000. These properties are featured on the inside front cover of the financial report. Since the year end the purchase of Princess House, Barnstaple for GBP2,325,000 has been announced and we have exchanged contracts to purchase College Square, Margate for GBP8,300,000 with completion expected by 30 September. The Company continues to realise substantial profits from its property holdings. King House, Luton, which had been purchased for GBP2,750,000 in November 2014, was sold during the year for GBP4,550,000 demonstrating once more the Company's good judgement in selecting properties for its portfolio. Contracts had been exchanged for the sale of Hume House, Leeds in January 2016, but the purchaser was unable to complete and the Company retains the property. This property is currently classed as an asset held for sale. Negotiations are well advanced with another purchaser and a sale announcement can be expected soon. The directors have also started to realise the residential properties owned by the Group in order to reinvest in commercial properties. This is expected to be achieved by the end of the current financial year.

In addition to the expansion of the Group's portfolio, there have been other significant achievements since my last report. During the year, the Group has negotiated a loan facility with Lloyds Bank plc which has been utilised to purchase four new properties as well as to re-finance the existing commercial portfolio. This relationship with a major UK banking group will be of continued assistance to the Group and strengthen our negotiating position when further properties are acquired in the future.

Since the year end, the Company has issued a two-year Convertible Loan Note for GBP10,000,000 at an interest rate of 6%. The proceeds will be used to further expand the Group's commercial property portfolio.

On 31 March 2017, the Company held a General Meeting at which it was decided to consolidate the existing 1p ordinary shares into ordinary shares of 25p on the basis of 25 1p shares for every new 25p share. The directors recommended this change in order to distance the Company from the "penny share" label.

The results for the year show an increase in revenue from GBP2,037,308 for the year ended 30 April 2016 to GBP2,632,219 in the year under review. Profit before taxation has increased from GBP612,334 to GBP1,122,317. The directors have continued to value the portfolio conservatively.

The directors have continued the Company's policy of increasing the dividend each year with a payment of 4.0% in June 2017. It is the Board's policy to continue to pay an increasing dividend unless constrained by economic conditions.

The Board considers its investment strategy to date has been successful and will continue to enlarge the portfolio in similar manner as opportunities arise.

Dr Tony Ghorayeb

Chairman

Date: 29 September 2017

Group Statement of Comprehensive Income for the year ended 30 April 2017

 
                                       2017          2016 
                                        GBP           GBP 
 
 Revenue                          2,632,219     2,037,308 
 Gain (loss) on disposal of       1,018,665             - 
  investment property 
 Administrative expenses        (1,567,466)   (1,201,655) 
 Fair value gains (losses) 
  on investment property                  -     (422,823) 
 Fair value gains (losses) 
  on assets held for sale         (390,950)       705,681 
 Finance cost                     (570,882)     (539,095) 
 Finance income                         731        32,918 
 Profit before taxation           1,122,317       612,334 
 Taxation                         (159,641)     (352,341) 
                               ------------  ------------ 
 Profit after taxation              962,676       259,993 
 Other comprehensive income               -             - 
 Total comprehensive income 
  for the period                    962,676       259,993 
                               ============  ============ 
 
 Attributable to: 
 Owners of the parent               962,676       324,447 
 Non-controlling interest                 -      (64,454) 
                               ------------  ------------ 
                                    962,676       259,993 
                               ============  ============ 
 
 
 Earnings per share                          Pence   Pence 
 Basic earnings per share attributable 
  to equity owners of the parent              2.45    0.95 
 Diluted earnings per share attributable 
  to equity owners of the parent              2.22    0.85 
 

Group Statement of Financial position at 30 April 2017

 
                                            Group 
                                         2017         2016 
  ASSETS                                  GBP          GBP 
  Non-current assets 
  Investment property              29,453,308   21,788,428 
                                   29,453,308   21,788,428 
                                  -----------  ----------- 
  Current assets 
  Assets held for sale              9,526,000    7,700,000 
  Trade and other receivables         178,166      134,253 
  Cash and cash equivalents           350,810      517,632 
                                  -----------  ----------- 
                                   10,054,976    8,351,885 
                                  -----------  ----------- 
 
 TOTAL ASSETS                      39,508,284   30,140,313 
                                  ===========  =========== 
 
  EQUITY AND LIABILITIES 
  Current liabilities 
  Liabilities relating to 
   non-current assets held 
   for sale                         3,435,541    2,400,055 
  Trade and other payables            788,466      909,236 
  Taxation                            562,728      485,760 
  Borrowings                          500,000    1,333,377 
                                  -----------  ----------- 
                                    5,286,735    5,128,428 
                                  -----------  ----------- 
  Non-current liabilities 
  Borrowings                       15,790,596    6,853,676 
  Deferred tax                        298,218      211,634 
                                  -----------  ----------- 

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DJ Ace Liberty & Stone PLC Final Results -2-

                                   16,088,814    7,065,310 
                                  -----------  ----------- 
 
  Share capital                     9,821,517    9,821,517 
  Share premium                     7,132,802    7,132,802 
  Share option reserve                479,180      479,180 
  Treasury shares                   (480,620)            - 
  Retained earnings                 1,179,856      513,076 
                                  -----------  ----------- 
  Total equity                     18,132,735   17,946,575 
                                  -----------  ----------- 
 
  TOTAL EQUITY AND LIABILITIES     39,508,284   30,140,313 
                                  ===========  =========== 
 
 

Group Cash Flow Statement for the year ended 30 April 2017

 
                                                  2017           2016 
                                                   GBP            GBP 
 Profit before 
  tax                                        1,122,317        612,334 
 
 Cash flow from operating 
  activities 
 Adjustments for: 
 Finance income                                  (731)       (32,918) 
 Finance costs                                 570,882        539,095 
 Share-based payment charge 
  - Share options                                    -        211,200 
 (Gain) / loss on disposal                 (1,018,665)              - 
  of investment property 
 Fair value adjustment                         390,950      (282,858) 
 (Increase) / decrease in 
  receivables                                 (44,115)        (5,952) 
 (Decrease) / increase 
  in payables                                 (59,592)       (31,342) 
 Tax paid                                     (21,887)       (27,150) 
 Interest paid                                 632,060      (419,095) 
  Net cash generated by operating 
   activities                                  307,099        653,085 
                                         -------------  ------------- 
 
 Cash flows from 
  investing activities 
 Interest received                                 731         32,918 
 Purchase of investment properties        (15,078,916)    (8,756,874) 
 Sale of investment 
  properties                                 6,215,751      4,850,000 
 Profit on sale and dissolution                 54,214              - 
  of subsidiaries 
 Net cash (used) by investing 
  activities                               (8,808,220)   (12,701,435) 
                                         -------------  ------------- 
 
 Cash flows from 
  financing activities 
 Share issue, net 
  of issue costs                                     -      4,328,716 
 Treasury shares                             (480,620)              - 
  purchased 
 Long term loans 
  advanced                                  16,071,800      1,969,539 
 Long term loans 
  repaid                                   (6,932,771)    (2,886,645) 
 Equity dividend 
  paid                                       (324,110)      (152,620) 
 Net cash generated by financing 
  activities                                 8,334,299      3,258,990 
                                         -------------  ------------- 
 
 Net decrease in cash 
  and cash equivalents                         166,822    (1,429,752) 
                                         -------------  ------------- 
 
 Cash and cash equivalents at the 
  beginning of the period                      517,632      1,947,384 
 
 Cash and cash equivalents 
  at the end of the period                     350,810        517,632 
                                         =============  ============= 
 
 

NOTES TO PRELIMINARY RESULTS FOR THE PERIOD ENDED 30 APRIL 2017

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 29(th) September 2017.

The preliminary announcement of the results for the year ended 30 April 2017 was approved by the board of directors on 29(th) September 2017.

   2.       Earnings per Share 
 
 
 

The calculations of earnings per share are based on the following earnings and numbers of shares.

 
                                               2017           2016 
                                                GBP            GBP 
 Profit for the period attributable 
 to equity owners                           962,676        324,447 
                                        -----------  ------------- 
 
                                                            No. of 
                                             No. of         shares 
                                             shares         of 25p 
                                             of 25p     (restated) 
 Weighted average number of 
  shares 
 
 For basic earnings per share            39,288,810     34,119,518 
 Dilutive effect of share 
  options                                 4,093,333      4,093,333 
 For diluted earnings per 
  share                                  43,382,143     38,212,851 
                                        -----------  ------------- 
 
 Earnings per share                           pence          pence 
 
 Basic                                         2.45           0.95 
 Diluted                                       2.22           0.85 
 
                                                GBP            GBP 
 Dividends declared during 
  the year - per share of 1p                      -          0.033 
 Dividends declared during 
  the year - per share of 25p                  0.01              - 
 
 Dividends declared during 
  the year - total                          393,721        324,110 
 
 There were no dividends declared and approved 
  prior to the end of the year for inclusion 
  in the Financial Statements. However, a dividend 
  of GBP393,721 was approved after the year end, 
  being equal to 1.0p per share. 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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