DJ Ace Liberty & Stone PLC Final Results
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.
-- 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
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/
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
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
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