UIL Ltd.

Earnings Release • Jan 28, 2021

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RNS Number : 1244N

Ace Liberty & Stone PLC

28 January 2021

Ace Liberty and Stone plc

(''Ace'' or "the Company'')

INTERIM RESULTS FOR SIX MONTHS TO 31 OCTOBER 2020

Ace Liberty and Stone plc, the active property investment company, capitalising on commercial property investment opportunities across the UK, is delighted to announce Interim Results for the period from 1 May 2020 to 31 October 2020. 

Highlights:

·      Pre-tax profit increased by 121% to £673,511 (H1: 2020) from £305,060 (H1: 2019)

·      Rental income held to a fall of 7.1% in a trading period devastated by Covid-19. Down from £3,215,817 (H1 2019) to £2,985,965 (H1 2020)

·      One-off hit from Covid-19 held to £130,882 of rent concessions

·      All tenants are maintaining rental payments in accordance with agreements

·      Admission to AQSE Growth Market's Apex segment, subsequent to the period end.

Ismail Ghandour, Chief Executive Officer, commented:

"The calendar year 2020 was one of the worst trading periods ever experienced in the UK, affecting all sectors of the economy. That Ace has turned in such a remarkable performance is a justification of the way we've built up our portfolio over the past few years."

Chairman's statement

I am pleased to announce the Company's interim results for the half year ended 31 October 2020. This is a very strong set of figures indeed, especially given the difficult economic situation in the UK as a result of the impact of the Covid-19 virus on the nation's commercial activities. Profit before tax is £673,511 compared to the comparative value of £305,060, an increase of 121%. Rental income at £2,985,965 shows a reduction of 7.1% from the comparative year's value of £3,215,817, resulting from concessions made to tenants and various other small adjustments mainly relating to the rent received from properties held for sale.

This strong result is after taking into account a small precautionary impairment of £200,000 against one of the Company's held-for-sale properties, Oscar Court, as a result of the economic impact of the Covid-19 pandemic.

The commercial portfolio continues to perform well with rent collections exceeding 80% each quarter. This success owes much to the foresight of the directors who concentrated the Company's holdings into properties let to national and local government agencies. At the time of this report, these account for over half the Company's income. The Group also numbers two Banks and a Building Society among its tenants, together with other strongly-performing major companies. The retail sector has been avoided apart from food and pharmaceutical provision, which have remained open throughout the lockdowns. Tenants include representatives from the leisure industry, which have had a difficult trading period, although none has ceased paying their rents at a full or temporarily-reduced level. One has entered into a Creditors' Voluntary Arrangement which resulted in a small loss of rental income. In total, £130,882 of rent concessions were made which have been fully written off in the half year accounts. Those tenants which have deferred some of their rental payments by agreement with the Company have strong trading prospects and intend to make up all arrears by end December 2021 as they return to normal levels of business. No provisions against these rents are considered necessary at this time.

The company continues to follow a conservative approach to its portfolio management as shown by the following statistics at 31 October 2020:

a)     Portfolio Loan to Value is 53% (H1 2019: 54%)

b)    Weighted Average Unexpired Lease to Break is 6.94% years (H1 2019: 8.08 years)

c)     57% of tenants are government bodies (H1 2019: 58%); 42% are triple-A commercial (H1 2019:41%)

Two properties have been purchased since the beginning of this interim period. 16-17 Westborough, Scarborough, which is let to Skipton Building Society at an annual rent of £117,500 was purchased on 26 August for £1,430,000. On 7 December, after the date of these results, the purchase of 78-82 English Street and 49-53 Blackfriars Street Carlisle was completed at a price of £1,710,000. The principal tenant is Clydesdale Bank with an annual rent of £120,000. Both properties continue the Group's policy of purchasing high-yielding properties with creditworthy long term tenants.

As a result of the uncertainties stemming from the effects of the Covid-19 virus, the Company has temporarily suspended its dividend policy in order to conserve cash resources. The directors value the support of the shareholders in this way which will enhance the long term strength of the Company.

The directors continue to seek ways of enhancing the Company's prospects and, over the coming few months in particular, will build on the portfolio's manifest strengths in a unstable market.

Dr Tony Ghorayeb

Chairman

27 January 2021

Unaudited group statement of comprehensive income

for the six months ended 31 October 2020

	Six months ended 31 October 2020 (Unaudited)	Six months ended 31 October 2019 (Unaudited)	Year ended 30 April 2020 (Audited)
	GBP	GBP	GBP
Turnover	2,985,965	3,215,817	6,391,897
Loss on disposal of investment property	-	-	(13,026)
Administrative expenses	(753,944)	(726,030)	(1,805,592)
Fair value losses on investment property	-	-	(500,000)
Fair value gains losses on assets held for sale	(200,000)	-	(300,000)
Lease breakage fee	-	-	173,375
Finance cost	(1,389,010)	(2,184,977)	(3,972,244)
Finance income	30,500	250	34,842
Profit for the period	673,511	305,060	9,252
Taxation	(91,655)	(93,050)	111,113
Profit after taxation	581,856	212,010	120,365
Other comprehensive income	8,883	184,674	341,604
Total comprehensive income for the period	590,739	396,684	461,969

Earnings per share - profit after tax
	pence	pence	pence*
Basic	0.99	0.50	0.25
Diluted	0.78	0.30	0.19
Earnings per share - total comprehensive income on redemption and rollover of CLNs	pence	pence	pence
Basic	1.01	0.93	0.97
Diluted	0.79	0.56	0.75

*Unaudited

Unaudited group statement of retained earnings

for the six months ended 31 October 2020

	Six months ended 31 October 2020 (Unaudited)	Six months ended 31 October 2019 (Unaudited)	Year ended 30 April 2019 (Audited)
	GBP	GBP	GBP
Balance brought forward	516,517	774,774	774,774
Profit for the period	581,856	212,010	120,365
Other comprehensive income	8,883	184,674	341,604
	590,739	396,684	461,969
Dividend on ordinary shares	-	(349,312)	(720,226)
	-	(349,312)	(720,226)
Balance carried forward	1,107,256	822,146	516,517

Unaudited group statement of financial position
at 31 October 2020
	At 31 October 2020 (Unaudited)	At 31 October 2019 (Unaudited)	At 30 April 2020 (Audited)
	GBP	GBP	GBP
ASSETS
Non-current assets
Investment properties	78,391,081	79,538,096	76,888,096
Deferred tax	45,054	-	7,054
	78,436,135	79,538,096	76,895,150
Current assets
Assets held for sale	10,229,921	8,579,921	10,429,921
Trade and other receivables	1,042,425	474,452	789,256
Cash and cash equivalents	7,509,091	1,593,826	7,432,958
	18,781,437	10,648,199	18,652,135
TOTAL ASSETS	97,217,572	90,186,295	95,547,285
EQUITY AND LIABILITIES
Current Liabilities
Liabilities held for sale	1,317,063	1,395,375	1,350,625
Trade and other payables	6,314,559	3,830,410	5,536,009
Taxation	226,726	184,494	100,121
Borrowings	12,685,633	15,611,701	2,668,972
	20,543,981	21,021,980	9,655,727
Non-current liabilities
Borrowings	44,444,478	47,116,098	54,244,301
Deferred tax	-	116,188	-
	44,444,478	47,232,286	54,244,301
EQUITY
Issued capital and reserves
Share capital	14,626,463	10,799,592	14,626,463
Share premium reserve	16,773,712	9,604,775	16,773,712
Share option reserve	-	826,906	-
Other reserve	202,302	359,230	211,185
Treasury shares	(480,620)	(480,620)	(480,620)
Retained earnings	1,069,256	822,146	516,517
Total equity attributable to owners of the parent	32,191,113	21,932,029	31,647,257
TOTAL EQUITY AND LIABILITIES	97,217,572	90,186,295	95,547,285

Unaudited Group cash flow statement

for the six months ended 31 October 2020

Six months ended 31 October 2020 (Unaudited)	Six months ended 31 October 2019 (Unaudited)	Year ended 30 April 2020 (Audited)
	GBP	GBP	GBP
Profit before tax	673,511	305,060	9,252
Cash flow from operating activities
Adjustments for:
Finance income	(30,500)	(250)	(34,842)
Finance costs	1,389,010	2,184,977	3,972,244
Gain on disposal of investment property	-	-	13,026
Fair value adjustment	200,000	-	800,000
(Decrease) / increase in receivables	(76,728)	36,038	(278,766)
Increase / (decrease) in payables	628,581	(1,063,998)	702,627
Tax paid	(3,050)	-	(8,809)
Interest paid	(1,411,157)	(1,831,756)	(2,547,166)
Other financial costs paid	(7,750)	-	(745,631)
Net cash generated/ (used) by operating activities	1,361,917	(369,929)	1,881,935
Cash flows from investing activities
Interest received	30,500	250	34,842
Purchase of investment properties	(1,680,034)	-	-
Sale of investment properties	-	205,000	205,000
Net cash (used) / generated by investing activities	(1,649,534)	205,250	239,842
Cash flows from financing activities
Share issue, net of issue costs	-	387,000	6,104,665
Long term loans advanced	670,000	400,000	-
Long term loan repaid	(6,250)	(635,925)	(1,480,000)
Short term loans repaid	(300,000)	-	(550,000)
Equity dividend paid	-	(349,312)	(720,226)
Net cash generated by financing activities	363,750	(198,237)	3,354,439
Net increase / (decrease) in cash and cash equivalents	76,133	(362,916)	5,476,216
Cash and cash equivalents at the beginning of the period	7,432,958	1,956,742	1,956,742
Cash and cash equivalents at the end of the period	7,509,091	1,593,826	7,432,958

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 2020. Those financial statements were prepared on a going concern basis.

The interim report for the six months to 31 October 2020 was approved by the Board on 27 January 2021

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

Notes to Editors

Ace Liberty & Stone Plc is a property investment company with a diverse portfolio of properties located across the UK, currently including Leeds, Sunderland, Plymouth, Leicester, Barnstaple, and Manchester. The Company locates commercial properties with Triple-A tenants which have the potential for an increase in value.  Ace has maintained a track record of generating strong profits at disposal of properties and achieving better-than-average returns on capital which are in turn utilised to underwrite an increasing dividend flow to shareholders. 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 allied to a flexible decision-making process has allowed the Board to identify promising opportunities and act promptly to secure investments.

For more information on the Company please visit www.acelibertyandstone.com

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, AQSE Growth Market Corporate Adviser
Jon Isaacs / Nick Michaels	Tel: +44 (0) 20 3772 0021
SP Angel Broker
Vadim Alexandre / Abigail Wayne / Rob Rees		Tel: +44 (0)20 3861 6625
Belvedere Communications
John West / Llew Angus	Tel: +44 (0) 20 3687 2756
ACF Equity Research
Christopher Nicholson / Amalia Barnoschi	Tel: +44 (0) 20 7558 8974

- Ends -

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