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DJ Ace Liberty & Stone PLC Final Results

TIDMALSP

RNS Number : 2468C

Ace Liberty & Stone PLC

28 September 2018

 
 Press Release   28 September 2018 
 

Ace Liberty and Stone plc

(" Ace " or the "Company")

Final Results for the 12 months to 30(th) April 2018

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 2018.

Highlights

   --     Revenue for the year up to GBP3,515,088 from GBP2,632,219 in 2017 (34% increase) 
   --     Property assets have increased 49% to GBP58,221,856 (2017: GBP38,979,308) 
   --     Profit before non-recurring income and overheads increased by 26% from GBP839,198 in 2017 to GBP1,054,510. 
   --     Further purchases since the year-end total approximately GBP35million. 

-- Continued show of support from shareholders who provided funding of GBP5.3m by way of a convertible loan note issued through an open offer.

   --     Banking relationships expanded through further facilities with Coutts & Co. 

Commenting on the final results, Ismail Ghandour, CEO of Ace Liberty and Stone Plc, said: "This has been a record-breaking year for Ace and we are set for further growth."

- Ends -

For further information, please contact:

 
 Ace Liberty & Stone Plc 
 Ivan Minter, Chief Financial Officer       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 3772 0021 
                                                  www.alfredhenry.com 
 

Notes to Editors

Ace Liberty & Stone Plc is a London-based property investment company with a diverse portfolio of eighteen properties spread across the UK. The Company locates commercial properties with sound covenants and good yields 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 under review has seen the Group advance significantly on a number of fronts. We have been active in the property market, purchasing properties in Barnstaple, Margate, Middlesbrough and Keighley during the year for a total consideration of GBP20.5million and negotiating three further purchases for completion shortly after the balance sheet date, in Oldham, Wigan and Leicester at a total cost of GBP10.7million. We have recently announced the exchange of contracts for the Mecca Bingo Hall in Chesterfield at a price of GBP4million. The total cost of these acquisitions was approximately GBP35million and the resultant annual rental income commanded by the full portfolio now substantially exceeds GBP5million. The front cover of this year's report graphically illustrates the Group's progress over the past six years.

As a listed company, Ace complies with IFRS requirements. This has resulted in substantial costs being charged against current year profits. The issue costs of the two Convertible Loan Notes are being written off over the two-year period to conversion, although the benefit to the Company of the properties acquired with the proceeds will be enjoyed for a significantly longer period. There is also a requirement to charge interest costs to Income and Expenditure account at a rate higher than that being paid to Loan Note holders and this further depresses reported profits by GBP140,000.

Taking into account these and other considerations, the directors have decided to expand the Key Performance Indicator section of the Strategic Report, which has been featured for the past four years, and show the principal statistics monitored by the Board in managing the Group's activities. My colleagues and I believe this is a valuable addition to the information revealed in statutory form as it permits additional understanding of the underlying business performance and the growth achieved over the past five years.

I am pleased to report that revenue for the year has increased to GBP3,515,088 from GBP2,632,219 in 2017. Although profit before tax has dropped from GBP1,122,317 in 2017 to GBP214,141 in the current year, the KPI report shows that the profit earned by the business before non-recurring income and overheads increased from GBP839,198 in 2017 to a current year value of GBP1,054,510.

The support of shareholders has again been invaluable. I mentioned last year the issue of a GBP10million Convertible Loan Note and during the year under review existing shareholders have responded magnificently to the issue of a 5% CLN accompanied by an entitlement to an equal number of Warrants to purchase 25p Ordinary Shares exercisable at 80p. GBP5.3miliion was raised which financed the ensuing property purchases.

For the fifth consecutive year the Company has rewarded shareholders with an increase in the annual dividend, which in 2018 amounted to 1.25p per share and benefitted shareholders by in excess of GBP500,000. With the expected growth of profits and cash flow, the directors intend to further reward shareholders in future. As a first step the Board has decided to increase the dividend payment frequency. Up to now the dividend has been declared annually and paid in July following the year end. In future it will be paid in three instalments; the first payment will be in October (halfway through the year); the second in April (at the end of the year); and the third in July following the year end (at the same time as the existing payment). This arrangement will benefit shareholders with an earlier receipt of the dividend and enable the Board to increase dividends more quickly than in the past by better utilisation of the Group's cash inflow.

The Group's property acquisition programme has been supported by the willingness of the Group's bankers to provide secured finance facilities. Additional borrowings have been made under the facility provided by Lloyds Bank plc and this now stands at GBP27 million. During the year, a relationship was established with Coutts & Co which has resulted in a facility of some GBP6 million being made available for the properties purchased in May and June 2018.

The directors expect to continue to drive the company forward on the same path. At the present time further, unannounced, transactions are under negotiation which will yet again yield further growth.

We go forward into the next twelve months with renewed enthusiasm and a determination to continue to enhance the value of our shareholders' investment.

Dr Tony Ghorayeb

Chairman

Date: 26 September 2017

Group Statement of Comprehensive Income for the year ended 30 April 2018

 
                                                    2018          2017 
                                                     GBP           GBP 
 
 Revenue                                       3,515,088     2,632,219 
 Gain (loss) on disposal of investment 
  property                                      (40,758)     1,018,665 
 Administrative expenses                     (1,042,612)   (1,261,745) 
 Fair value gains (losses) on investment         250,000             - 
  property 
 Fair value gains (losses) on assets 
  held for sale                                (250,000)     (390,950) 
 Finance cost                                (2,219,199)     (846,603) 
 Finance income                                    1,622           731 
 Profit before taxation                          214,141     1,122,317 
 Taxation                                        147,154     (159,641) 
                                            ------------  ------------ 
 Profit after taxation                           361,295       962,676 
 Other comprehensive income                            -             - 
 Total comprehensive income for the 
  period                                         361,295       962,676 
                                            ============  ============ 
 
 Attributable to: 
 Owners of the parent                            361,295       962,676 
                                                 361,295       962,676 
                                            ============  ============ 
 
 
 Earnings per share                                  Pence   Pence 
 Basic earnings per share attributable to equity 
  owners of the parent                                0.91    2.45 
 Diluted earnings per share attributable to 
  equity owners of the parent                         0.61    2.22 
 

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DJ Ace Liberty & Stone PLC Final Results -2-

Group Statement of Financial position at 30 April 2018

 
 
                                                2018         2017 
  ASSETS                                         GBP          GBP 
  Non-current assets 
  Investment property                     50,487,866   29,453,308 
                                          50,487,866   29,453,308 
                                         -----------  ----------- 
  Current assets 
  Assets held for sale                     7,734,000    9,526,000 
  Trade and other receivables                934,479      134,253 
  Cash and cash equivalents                5,180,225      350,810 
                                         -----------  ----------- 
                                          13,848,704   10,054,976 
                                         -----------  ----------- 
 
 TOTAL ASSETS                             64,336,570   39,508,284 
                                         ===========  =========== 
 
  EQUITY AND LIABILITIES 
  Current liabilities 
  Liabilities relating to non-current 
   assets held for sale                    2,587,141    3,435,541 
  Trade and other payables                 1,239,869      788,466 
  Taxation                                   162,098      562,728 
  Borrowings                                 690,000      500,000 
                                         -----------  ----------- 
                                           4,679,108    5,286,735 
                                         -----------  ----------- 
  Non-current liabilities 
  Borrowings                              40,003,625   15,790,596 
  Deferred tax                               214,502      298,218 
                                         -----------  ----------- 
                                          40,218,127   16,088,814 
                                         -----------  ----------- 
 
  Share capital                           10,065,887    9,821,517 
  Share premium                            7,643,310    7,132,802 
  Share option reserve                       479,180      479,180 
  Other reserve                              579,548            - 
  Treasury shares                          (480,620)    (480,620) 
  Retained earnings                        1,152,030    1,179,856 
                                         -----------  ----------- 
  Total equity                            19,439,335   18,132,735 
                                         -----------  ----------- 
 
  TOTAL EQUITY AND LIABILITIES            64,336,570   39,508,284 
                                         ===========  =========== 
 
 

Group Cash Flow Statement for the year ended 30 April 2018

 
                                                            2018           2017 
                                                             GBP            GBP 
 Profit before tax                                       214,141      1,122,317 
 
 Cash flow from operating 
  activities 
 Adjustments for: 
 Finance income                                          (1,622)          (731) 
 Finance costs                                         2,219,199        876,603 
 (Gain) / loss on disposal of investment 
  property                                                40,758    (1,018,665) 
 Fair value adjustment                                         -        390,950 
 (Increase) / decrease in receivables                  (756,313)       (44,115) 
 (Decrease) / increase in 
  payables                                               476,019       (59,592) 
 Tax paid                                              (337,186)       (21,887) 
 Interest paid                                       (1,520,350)      (632,060) 
  Net cash generated by operating activities             334,646        612,820 
                                                   -------------  ------------- 
 
 Cash flows from investing 
  activities 
 Interest received                                         1,622            731 
 Purchase of investment properties                  (20,784,558)   (15,078,916) 
 Sale of investment 
  properties                                           1,501,242      6,215,751 
 Profit on sale and dissolution of 
  subsidiaries                                                 -         54,214 
 Net cash (used) by investing activities            (19,281,694)    (8,808,220) 
                                                   -------------  ------------- 
 
 Cash flows from financing 
  activities 
 Share issue, net of                                      85,300              - 
  issue costs 
 Treasury shares purchased                                     -      (480,620) 
 Long term loans advanced                             26,673,688     15,766,079 
 Long term loans repaid                              (3,593,404)    (6,932,771) 
 Short term loans advanced                             1,000,000              - 
 Equity dividend paid                                  (389,121)      (324,110) 
 Net cash generated by financing activities           23,776,463      8,028,578 
                                                   -------------  ------------- 
 
 Net increase/(decrease) 
  in cash and cash equivalents                         4,829,415      (166,822) 
                                                   -------------  ------------- 
 
 Cash and cash equivalents at the beginning 
  of the period                                          350,810        517,632 
 
 Cash and cash equivalents at the end 
  of the period                                        5,180,225        350,810 
                                                   =============  ============= 
 
 

NOTES TO RESULTS FOR THE PERIOD ENDED 30 APRIL 2018

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 26(th) September 2018.

The announcement of the results for the year ended 30 April 2018 was approved by the board of directors on 27(th) September 2018.

   2.       Earnings per Share 
 
 
 

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

 
                                                   2018           2017 
                                                    GBP            GBP 
 Profit for the period attributable 
 to equity owners                               361,295        962,676 
                                           ------------  ------------- 
 
                                                                No. of 
                                                 No. of         shares 
                                                 shares         of 25p 
                                                 of 25p     (restated) 
 Weighted average number of shares 
 
 For basic earnings per share                39,837,319     39,288,810 
 Dilutive effect of share options            18,942,245      4,093,333 
 For diluted earnings per share              58,779,564     43,382,143 
                                           ------------  ------------- 
 
 Earnings per share                               pence          pence 
 
 Basic                                             0.91           2.45 
 Diluted                                           0.61           2.22 
 
                                                    GBP            GBP 
 Dividends declared during the year 
 - per share of 25p                                0.01        0.00825 
 
 Dividends declared during the year 
 - total                                        389,121        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 GBP505,304 was approved after the year 
  end, being equal to 1.25p per share. 
 

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