UIL Ltd. — Earnings Release 2021

Sep 28, 2021

National Storage Mechanism | Additional information

RNS Number : 0990N

Ace Liberty & Stone PLC

28 September 2021

EMBARGOED UNTIL 7 A.M. Tuesday 28 September 2021

Ace Liberty and Stone plc

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

FINAL RESULTS FOR THE YEAR ENDED 30 APRIL 2021

Pandemic survived

Poised to capitalise

Ace Liberty and Stone Plc (AQSE: ALSP), the active property investment company capitalising on commercial property investment opportunities across the UK, is delighted to announce its results for the year ended 30 April 2021. 

Financial Highlights:

·      Portfolio value up 3.0% to £89,936,560 (FY2020 £87,318,017)

·      Shareholders' funds up 3.9% to £32,196,180 (FY2020 £30,986,132)

·      Portfolio total passing rent up 5.5% at £6,926,440 (FY2020 £6,556,740)

·      Profit after tax improved to £1,210,048

·      Most properties in "levelling up" priority areas. 50% in high priority

Ismail Ghandour, Chief Executive Officer, commented:

"Improving performance and profitability in a year sabotaged by the Covid pandemic is a tribute to the stability of the portfolio.

"We are confident Ace will continue to prosper in the coming year."

-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, AQSE Growth Market Corporate Adviser
Jon Isaacs / Nick Michaels	Tel: +44 (0) 20 3772 0021
	www.alfredhenry.com
SP Angel Corporate Finance LLP Broker
Vadim Alexandre / Rob Rees	Tel: +44 (0)20 3470 0470
	www.spangel.co.uk
ACF Equity Research
Christopher Nicholson / Amalia Barnoschi	Tel: +44 (0) 20 7558 8974
	www.acfequityresearch.com

Chairman's Statement

I have great pleasure in presenting the results for the year ended 30 April 2021. Group revenue is down slightly from £6,391,897 to £6,227,124 because of the impact of the COVID-19 pandemic as detailed in the Strategic Report. It is significant that, out of a total passing rent of £6,926,440, only £85,086 had to be written off through tenant defaults. This represents a very good outcome for the year by comparison with the sector generally given the widespread economic downturn experienced globally. Total comprehensive income for the period is £1,218,931 compared to a profit of £461,969 as originally stated in last year's accounts and a loss of £288,969 as now re-stated in order to rectify the omission of the fair value of interest rate swaps and cap. Shareholders' funds have increased from £30,986,132 to £32,196,180. These numbers confirm a strong performance by the Company.

Expenditure during the year has been reduced. In 2020, overheads included a one-off charge for employees' national insurance in respect of the share options exercised by the directors in that year, which benefits the current year by comparison. There is also a welcome reduction in the amortisation of loan arrangement costs due to the passage of time and the repayment of loans in the year ended April 2020.

Opportunities for acquisitions have been rare during the year but the Group has continued its expansion at a modest level by completing the purchases of 16-17 Westborough, Scarborough, North Yorkshire for £1,430,000 and 78/82 English Street and 49/53 Blackfriars Street, Carlisle for £1,710,000. Both have secure long-term tenants, Skipton Building Society in the first instance and Clydesdale Bank in the second. The passing rents are £131,000 and £120,000 respectively. Contracts have been exchanged for the purchase of Unit M, 9 Hunters Row, Stafford for £1,260,000 with completion to take place after the year end. The tenant is Iceland Foods Limited with a passing rent of £95,000.

Ace has continued to seek to sell the assets classified as held for sale in the balance sheet. The sale of the Leeds and Dudley properties is due to complete on 30 September 2021 and there is strong interest from a buyer for the Oscar Court property.

I reported last year that Ace took the opportunity to raise additional equity finance by means of the exercise by the directors of their options and subsequent sale of the shares to investors in Lebanon. This resulted in cash balances at 30 April 2020 of some £7 million. Subsequent events in Lebanon have prevented remittance of these funds to the UK for property investment as intended due to the imposition of exchange controls by the Banque du Liban. To protect the Company's asset, it has been designated a cash contribution to capital under Lebanese banking regulations and shown as an investment in the Company's balance sheet. It remains the Company's intention to remit the funds to the UK for investment in the portfolio when circumstances permit.

The Company's loan facility with Lloyds Banking Group, which stood at £25,462,800 at the balance sheet date, is due to mature in November 2021. Accordingly, the balance is shown as a current rather than a non-current liability.  Negotiations are well advanced to renew or replace this loan.

It is worth noting that about half of the Group's properties lie within the development areas designated by the government to achieve its levelling up agenda as illustrated by the outline map on page 9 of the annual report. Having survived the pandemic in good shape, the Group's portfolio is set to perform well as the country returns to normal levels of activity. Given continued profitability and a strong cash flow, the Board intends to reinstate dividend payments as soon as possible whilst continuing to expand the portfolio as opportunities arise.

Dr Tony Ghorayeb

Chairman

Date:  27 September 2020

Consolidated Statement of Comprehensive Income for the year ended 30 April 2021

		2021		2020
				Restated
		£		£
Revenue		6,227,124		6,391,897
Loss on disposal of investment property		-		(13,026)
Administrative expenses		(1,406,526)		(1,805,592)
Fair value loss on investment property		(500,000)		(500,000)
Fair value loss on assets held for sale		(200,000)		(300,000)
Lease breakage fee		-		173,375
Finance cost		(3,021,065)		(4,723,182)
Finance income		286,539		34,842
Profit / (Loss) before taxation		1,386,072		(741,686)
Taxation		(176,024)		111,113
Profit / (Loss) after taxation		1,210,048		(630,573)
Other comprehensive income - release of equity proportion of CLNs		8,883		341,604
Total comprehensive income / (deficit) for the period		1,218,931		(288,969)
Attributable to:
Owners of the parent		1,218,931		(288,969)

Earnings per share on continuing activities		Pence		Pence
Basic earnings per share attributable to equity owners of the parent		2.08		(0.61)
Diluted earnings per share attributable to equity owners of the parent		1.64		(0.47)

Consolidated Statement of Financial position at 30 April 2021

				2021				2020
							Restated
ASSETS			£				£
Non-current assets
Investment property			79,706,639				76,888,096
Investments			5,000,680				-
Deferred tax			223,541				128,541
			84,930,860				77,016,637
Current assets
Assets held for sale			10,229,921				10,429,921
Trade and other receivables			1,347,471				789,256
Cash and cash equivalents			2,913,363				7,432,958
				14,490,755				18,652,135
TOTAL ASSETS				99,421,615				95,668,772
EQUITY AND LIABILITIES
Current liabilities
Liabilities relating to
assets held for sale			1,272,313				1,350,625
Trade and other payables			7,311,567				5,536,009
Taxation			458,542				100,121
Borrowings			37,716,654				2,668,972
Derivative financial instrument			77,601				-
Deferred tax			83,487				121,487
			46,920,164				9,777,214
Non-current liabilities
Borrowings			19,958,927				54,244,301
Derivative financial instrument			346,344				661,125
			20,305,271				54,905,426
Share capital			14,626,463				14,626,463
Share premium			16,773,712				16,773,712
Other reserve			202,302				211,185
Treasury shares			(480,620)				(480,620)
Retained earnings / (Accumulated losses)			1,074,323				(144,608)
Total equity			32,196,180				30,986,132
TOTAL EQUITY AND LIABILITIES			99,421,615				95,668,772

Consolidated Cash Flow Statement for the year ended 30 April 2021

				2021						2020
										Restated
				£						£
Profit / (Loss) before tax				1,386,072						(741,686)
Cash flow from operating activities
Adjustments for:
Finance income				(286,539)						(34,842)
Finance costs				3,021,065						4,723,182
Loss on disposal of investment property				-						13,026
Fair value adjustment				700,000						800,000
Increase in receivables				(257,448)						(278,766)
Increase in payables				776,239						702,627
Tax paid				(4,936)						(8,809)
Interest paid				(2,617,709)						(2,547,166)
Other finance costs paid				(17,800)						(745,631)
Net cash generated by operating activities				2,698,944						1,881,935
Cash flows from investing activities
Interest received				49,359						34,842
Purchase of investment properties				(3,619,918)						-
Sale of investment properties				500,000						205,000
Investment into LiBank				(5,000,680)						-
Net cash (used) / generated by investing activities				(8,071,239)						239,842
Cash flows from financing activities
Share issue, net of issue costs			-							6,104,665
Long term loans advanced				1,525,000						-
Long term loans repaid				(372,300)						(1,480,000)
Short term loans repaid				(300,000)						(550,000)
Equity dividend paid				-						(720,226)
Net cash generated by financing activities				852,700						3,354,439
Net (decrease) / increase in cash and cash equivalents				(4,519,595)						5,476,216
Cash and cash equivalents at the beginning of the period				7,432,958						1,956,742
Cash and cash equivalents at the end of the period				2,913,363						7,432,958

NOTES TO PRELIMINARY RESULTS FOR THE PERIOD ENDED 30 APRIL 2021

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 27 September 2021.

The preliminary announcement of the results for the year ended 30 April 2021 was approved by the board of directors on 27 September 2021

2.         Earnings per Share

			2021			2020
						Restated
			£			£
The calculations of earnings per share are based on the following earnings and numbers of shares.
Profit / (Loss) for the period attributable to equity owners				1,218,931		(288,969)
				No. of shares of 25p		No. of shares of 25p
Weighted average number of shares
For basic earnings per share				58,505,850		47,609,342
Dilutive effect of share options				15,840,708		14,312,252
For diluted earnings per share				74,346,558		61,921,594
Earnings per share				pence		Pence
Basic				2		(1)
Diluted				2		(0)
				£		£
Dividends declared during the year - per share of 25p				-		0.025
Dividends declared during the year - total				-		731,725

- ends -

The Directors 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, predominantly in the midlands and north of England, which are now the focus of Government incentives. The Company locates commercial properties which have creditworthy tenants, several years' rental income and 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 to deploy its strong balance sheet and is 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 www.acelibertyandstone.com

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