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DJ Ace Liberty & Stone PLC Half-year Report

TIDMALSP

RNS Number : 4389D

Ace Liberty & Stone PLC

31 January 2018

 
   31 January 2018 
 

Ace Liberty and Stone plc

(" Ace " or "the Company")

Interim Results

Chairman's statement

I am pleased to present the results for the period from 1 May 2017 to 31 October 2017.

Turnover during the six month period increased by 24.4% to GBP1,472,190 (2016: GBP1,183,727) compared to the comparative interim period, and the profit before tax for the period was GBP352,286 (2016: GBP597,629). The comparative profit for the half year ended 31 October 2016 included GBP500,000 profit from the sale of a property and therefore excluding this amount from the 2016 interim profit before tax demonstrates that underlying profits from rental income have almost doubled.

This has been a period of intense activity for the Company and has resulted in a substantial increase in the portfolio of investment properties. Since the end of the year covered by our 2017 Annual Report, Ace has committed to purchasing properties in Barnstaple, Margate, Middlesbrough and Keighley, at a total cost of GBP20,130,500. The last of these purchases is in course of completion now and will result in a total annual rental income across the portfolio of GBP4,205,500.

Ace has continued to realise its residential property holdings, selling further properties out of its Stoke and Barnsley portfolios to concentrate on more profitable commercial holdings.

This programme has been made possible by the negotiation of a two-year Convertible Loan Note of GBP10,000,000 announced on 20 July 2017. More recently, existing shareholders have subscribed to a further two-year Convertible Loan Note of GBP4,850,000, full details of which have also been announced. The Company's shareholders have been outstanding in providing support for the Company's growth and the directors expect to reward them with dividend growth out of the resulting profits.

Ace has also been ably supported by Lloyds Bank plc which has now provided a total of GBP24,842,800 in secured funding.

The KPIs monitored by the Board are as follows:

 
                                  Six months ended                          Six months                          Year ended 
                                   31 October 2017                    ended 31 October                       30 April 2017 
                                       (Unaudited)                    2016 (Unaudited)                           (Audited) 
                                               GBP                                 GBP                                 GBP 
 Value of 
  Portfolio                             49,378,100                          28,499,428                          38,979,308 
 Portfolio 
  annual 
  rental 
  income                                 3,509,205                           2,310,400                           2,563,565 
 Total equity 
  attributable 
  to 
  shareholders                          19,554,781                          18,251,554                          18,132,735 
 Rental income 
  per quarter                              736,095                             591,864                             659,055 
 Profit after 
  tax per 
  quarter                                  109,027                             243,630                             240,669 
 
                                                 %                                   %                                   % 
 Portfolio 
  loan to 
  value                                         56                                  55                                  51 
 
                                             years                               years                               years 
 Weighted 
  average 
  unexpired 
  lease to 
  break                                        9.5                                 8.5                                 8.8 
 

These show clearly the development of the Company's business and the shift of emphasis away from reliance on periodic capital profits at sale and towards the establishment of a solid base of high-yielding properties with sound covenants. There has been some cost to profits, mainly in the form of short-term write-off of arrangement fees and costs, but the benefit of the investment will be felt by shareholders for many years. The portfolio properties have potential for incremental capital enhancement as well as the emphasis on long term rental income,

Tribute must be paid to the hard work of all the directors who have supported this endeavour, especially Ismail Ghandour and Ivan Minter, both of whom have used their career-long experience to arrange the purchase and financing of these acquisitions on advantageous terms.

In conclusion, the directors are confident that the Company has established a solid portfolio and is well-placed to generate a strong flow of profit and cash for many years. The directors will continue to develop the Company on this base and anticipate further transactions, presently under negotiation, will further strengthen the Company's profitability in the near future.

 
 Dr Tony Ghorayeb 
  Chairman 
  30 January 2018 
 

Unaudited group statement of comprehensive income

for the six months ended 31 October 2017

 
                                                   Six months                          Six months                    Year ended 
                                             ended 31 October                    ended 31 October                      30 April 
                                             2017 (Unaudited)                    2016 (Unaudited)                2017 (Audited) 
                                                          GBP                                 GBP                           GBP 
 
 Turnover                                           1,472,190                           1,183,727                     2,632,219 
                             --------------------------------  ----------------------------------  ---------------------------- 
 
 Administrative expenses                            (703,604)                           (762,033)                   (1,567,466) 
 Fair value gains / 
  (losses) 
  on investment property                                    -                             500,000                     1,018,665 
 Fair value gains / 
  (losses) 
  on assets held for sale                                   -                                   -                     (390,950) 
 Finance cost                                       (417,850)                           (324,448)                     (570,882) 
 Finance income                                         1,550                                 383                           731 
 
 Profit for the period                                352,286                             597,629                     1,122,317 
                             --------------------------------  ----------------------------------  ---------------------------- 
 
 Taxation                                           (134,232)                           (110,369)                     (159,641) 
 
 Profit from continuing 
  operations                                          218,054                             487,260                       962,676 
                             --------------------------------  ----------------------------------  ---------------------------- 
 
                                                        pence                               pence                           pence 
 Basic                                                   0.55                                1.24                            2.45 
 Diluted                                                 0.43                                0.93                            2.22 
 
 

Unaudited group statement of financial position

at 31 October 2017

 
                                  As at 31 October                           As at 31 October    As at 30 April 
                                  2017 (Unaudited)                           2016 (Unaudited)    2017 (Audited) 
                                               GBP                                        GBP               GBP 
 ASSETS 
 Non-current assets 
 Investment properties                  40,962,100                                 22,199,428        29,453,308 
                                ------------------  -----------------------------------------  ---------------- 
 
 Current assets 
 Assets held for sale                    8,416,000                                  6,300,000         9,526,000 
 Trade and other receivables             1,071,292                                    394,117           178,166 
 Cash and cash equivalents               4,313,808                                  3,300,169           350,810 
                                                    -----------------------------------------  ---------------- 
                                        13,801,100                                  9,994,286        10,054,976 
                                ------------------  -----------------------------------------  ---------------- 
 
 TOTAL ASSETS                           54,763,200                                 32,193,714        39,508,284 
                                ------------------  -----------------------------------------  ---------------- 
 
 EQUITY AND LIABILITIES 
 Current Liabilities 
 Liabilities held for 
  sale                                   2,537,521                                  2,382,750         3,435,541 
 Trade and other payables                1,856,599                                  1,228,706         1,351,194 
 Borrowings                              1,440,550                                  1,408,377           500,000 
                                                    -----------------------------------------  ---------------- 
                                         5,834,670                                  5,019,833         5,286,735 

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DJ Ace Liberty & Stone PLC Half-year Report -2-

                                ------------------  -----------------------------------------  ---------------- 
 Non-current liabilities 
 Borrowings                             29,038,366                                  8,610,693        15,790,596 
 Deferred tax                              335,383                                    311,634           298,218 
                                ------------------  -----------------------------------------  ---------------- 
                                        29,373,749                                  8,922,327        16,088,814 
                                ------------------  -----------------------------------------  ---------------- 
 EQUITY 
 Issued capital and 
  reserves 
 Share capital                          10,021,156                                  9,821,517         9,821,517 
 Share premium reserve                   7,508,463                                  7,132,802         7,132,802 
 Share option reserve                      479,180                                    479,180           479,180 
 Other reserve                             912,209                                          -                 - 
 Treasury shares                         (480,620)                                          -         (480,620) 
 Retained earnings                       1,114,393                                    818,055         1,179,856 
                                ------------------  -----------------------------------------  ---------------- 
 Total equity attributable 
  to owners of the parent               19,554,781                                 18,251,554        18,132,735 
                                ------------------  -----------------------------------------  ---------------- 
 
 TOTAL EQUITY AND LIABILITIES           54,763,200                                 32,193,714        39,508,284 
                                ------------------  -----------------------------------------  ---------------- 
 
 

Unaudited Group cash flow statement

for the six months ended 31 October 2017

 
                                                  Six months            Six months         Year ended 
                                            ended 31 October      ended 31 October           30 April 
                                            2017 (Unaudited)                  2016     2017 (Audited) 
                                                                       (Unaudited) 
                                                         GBP                   GBP                GBP 
 Profit/(loss) before tax                            352,286               597,629          1,122,317 
                                        --------------------  --------------------  ----------------- 
 Cash flow from operating activities 
 Adjustments for: 
 Finance income                                      (1,550)                 (383)              (731) 
 Finance costs                                       417,850               324,448            570,882 
 Gain on disposal of investment 
  property                                                 -                     -        (1,018,665) 
 Fair value adjustment                                     -             (500,000)            390,950 
 Decrease / (increase) in receivables              (893,126)             (259,864)           (44,115) 
 Increase / (decrease) in payables                   518,547             (166,290)           (59,592) 
 Tax paid                                                  -                     -           (21,887) 
 Interest paid                                     (417,850)             (324,448)          (632,060) 
                                        --------------------  --------------------  ----------------- 
 Net cash (used) by operating 
  activities                                        (23,843)             (328,908)            307,099 
                                        --------------------  --------------------  ----------------- 
 Cash flows from investing 
  activities 
 Interest received                                      1550                   383                731 
 Purchase of investment properties              (11,508,797)                     -       (15,078,916) 
 Sale of investment properties                     1,110,000             1,530,000          6,215,751 
 Profit on sale and dissolution 
  of subsidiaries                                          -                     -             54,215 
                                        --------------------  --------------------  ----------------- 
 Net cash (used) / generated 
  by investing activities                       (10,397,247)             1,530,383        (8,808,220) 
                                        --------------------  --------------------  ----------------- 
 Cash flows from financing 
  activities 
 Share issue, net of issue 
  costs                                              575,300                     -                  - 
 Treasury shares purchased                                 -                                (480,620) 
 Short term loans advanced                                 -             1,000,000                  - 
 Short term loans repaid                                   -           (1,000,000)                  - 
 Long term loans advanced                         15,100,529             3,311,334         16,071,800 
 Long term loan repaid                             (898,020)           (1,406,167)        (6,932,771) 
 Equity dividend paid                              (393,721)             (324,110)          (324,110) 
                                        --------------------  --------------------  ----------------- 
 Net cash generated by financing 
  activities                                      14,384,088             1,581,057          8,334,299 
                                        --------------------  --------------------  ----------------- 
 Net (decrease) / increase 
  in cash and cash equivalents                     3,962,998             2,782,532          (166,822) 
 Cash and cash equivalents 
  at the beginning of the period                     350,810               517,637            517,632 
                                        --------------------  --------------------  ----------------- 
 Cash and cash equivalents 
  at the end of the period                         4,313,808             3,300,169            350,810 
                                        --------------------  --------------------  ----------------- 
 

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 unaudited Group 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 2017. Those financial statements were prepared on a going concern basis.

The interim report for the six months to 31 October 2017 was approved by the Board on 30 January 2018

The Directors of Ace Liberty & Stone Plc accept responsibility for this announcement.

For further information, please contact:

 
  Ace Liberty & Stone Plc 
  Ivan Minter, Finance 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 
 
 

For more information on the Company please visit: http://acelibertyandstone.com/

- Ends -

This information is provided by RNS

The company news service from the London Stock Exchange

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