DJ Ace Liberty & Stone PLC Final Results
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.
-- 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/
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
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
(MORE TO FOLLOW) Dow Jones Newswires
September 28, 2018 02:03 ET (06:03 GMT)
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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(END) Dow Jones Newswires
September 28, 2018 02:03 ET (06:03 GMT)