UIL Ltd. — Interim / Quarterly Report 2024

Jan 25, 2024

National Storage Mechanism | Additional information

RNS Number : 8382A

Ace Liberty & Stone PLC

25 January 2024

Ace Liberty and Stone plc

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

INTERIM RESULTS FOR SIX MONTHS TO 31 OCTOBER 2023

Ace Liberty and Stone Plc (AQSE: ALSP), the active property investment company capitalising on commercial property investment opportunities across the UK, is pleased to announce Interim Results for the period from 1 May 2023 to 31 October 2023. 

Highlights*:

·      Rental income increased slightly to £2,714,887 (H1 2022: £2,700,031)

·      Administration costs down 19.4% to £699,032 due to one-off costs in the prior year (H1 2022: £867,144)

·      Loss before tax of £4,686 largely driven by increased finance costs (H1 2022: profit £731,383)

·      £1 million shareholder loan repaid

·      2 year extension of the £10 million convertible loan note agreed

·      Completion of Melton Mowbray acquisition - financed with Coutts & Co

·      Cash resources of over £3 million available

*Note: Full details can be found in the Chairman's statement

Ismail Ghandour, Chief Executive Officer, commented:

"The UK economy is experiencing a period of disruption due to high inflation and rising interest rates. Together with the ongoing wars in Ukraine and the Middle East, we expect a continued period of uncertainty as we move through 2024. With a robust balance sheet and significant cash resources, Ace is in a strong position to weather the storm and take advantage of future opportunities as they arise."

Chairman's statement

I am pleased to announce the Company's interim results for the half year ended 31 October 2023. Turnover at £2,714,887 for the half year is up 0.6% on the comparable value for the previous year of £2,700,031. Pre-tax profit has reduced from £731,383 in H1 2022 to a loss of £4,686 in H1 2023 which is largely the result of increased finance costs driven by market interest rates. No adjustments have been considered necessary to the values of investment property assets at the half year.

During the period the Company completed the acquisition of the freehold of Egerton Park service station, Melton Mowbray. The property comprises a BP branded forecourt and a M&S branded convenience store. The current annual rental income is £204,814 with lease expiry in 2033. Melton Mowbray was comprehensively refurbished in 2014 to include two electric charging points for vehicles, improving the energy performance of the property. This aligns with our target of improving our overall EPC ("Energy Performance Certificate") range across the portfolio.

The planned acquisition of 9 Hunters Row, Stafford will no longer proceed following a mutual agreement with the seller. The seller informed the Company that it received an offer for the property, from another entity, with better terms. Given the current market conditions, the Board believes that it is more beneficial for Ace to retain cash resources in order to be flexible to opportunities in the market. Therefore, the seller will return the deposit paid by Ace of £631,453, together with accrued interest.

Several other transactions are under consideration and acquisitions and disposals will be made when advantageous to the Company in the current unsettled economic circumstances.

The Ace portfolio remains robust with a strong occupancy rate of 96%. Discussions have continued with Sunderland City Council on the future re-development of Fawcett House where the existing vacancy lies. Measures have been put in place to mitigate void costs in this property, where possible.

On 22 May 2023, the Company repaid the unsecured shareholder loan of £1,000,000 in full. In addition, the final sum of £50,000 relating to the 5% convertible loan notes was settled with the balance and associated interest settled in shares.

The £10 million convertible loan note has been renewed for a further two years, with expiry in May 2025.

The Company currently has cash resources of approximately £3 million to invest in UK freehold and long leasehold commercial properties according to its existing policies. Surplus funds will be invested short term with UK deposit takers regulated by the Bank of England. There has been no change in the status of the deposit placed with LiBank s.a.l.

A portion of the Company's loan facility with Coutts & Co, which stood at £17,675,500 at the balance sheet date, is due to mature in April 2024. Negotiations are well advanced to renew or replace this loan.

As detailed in the 2023 Annual Report, the Board remains committed to establishing regular distributions to shareholders and dividend payments will recommence once adequate reserves are available.

The following statistics are key to the Company's activities at 31 October 2023:

a)     Portfolio Bank Loan to Value is 53% (H1 2022: 55%)

b)    Weighted Average Unexpired Lease to Break is 6.50 years (H1 2022: 6.52 years)

c)     46% of tenants are government bodies (H1 2022: 47%); 52% are major industrial & commercial (H1 2022: 51%)

As we face into a new year, the economy is once again impacted by the ongoing wars in Ukraine and in the Middle East. Whilst we expect a period of disruption in the UK property market, the Directors believe the Group is well positioned to withstand the challenges and prosper in the future.

Dr Tony Ghorayeb

Chairman

25 January 2024

Unaudited group statement of comprehensive income

for the six months ended 31 October 2023

	Year to date 31 October 2023 (Unaudited)	Six months ended 31 October 2022 (Unaudited)	Year ended 30 April 2023 (Audited)
	GBP	GBP	GBP
Turnover	2,714,887	2,700,031	5,557,714
Loss on disposal of investment property	-	(29,442)	(29,442)
Administrative expenses	(699,032)	(867,144)	(1,875,448)
Fair value loss on investment property	-	-	(600,000)
Fair value loss on investments	-	-	(430,911)
Dilapidations Settlement	-	127,954	277,954
Finance cost	(2,099,759)	(1,536,238)	(3,382,440)
Finance income	79,218	336,222	218,916
Profit /(Loss) for the period	(4,686)	731,383	(263,657)
Taxation	7,572	(144,558)	(41,885)
Profit / (Loss) after taxation	2,886	586,825	(305,542)
Other comprehensive income	208,600	-	-
Total comprehensive income for the period	211,486	586,825	(305,542)

Earnings per share - profit after tax
	Pence*	Pence*	Pence*
Basic	0.00	1.00	(0.48)
Diluted	0.00	0.80	(0.48)
Earnings per share - total comprehensive income on redemption and rollover of CLNs	Pence*	Pence*	Pence
Basic	0.30	1.00	(0.48)
Diluted	0.25	0.80	(0.48)

*Unaudited

Unaudited group statement of changes in equity for the six months ended 31 October 2023	Share capital	Share premium	Other reserve	Treasury shares	Retained earnings	Total equity
	£	£	£	£	£	£
Balance at 30 April 2022	14,711,713	16,975,362	208,600	(480,620)	2,573,430	33,988,485
Total comprehensive income for the period
Profit for the period	-	-	-	-	586,825	586,825
	-	-	-	-	586,825	586,825
Transactions with owners
Shares issued during the year	5,850	17,550	-	-	-	23,400
Dividend on ordinary shares	-	-	-	-	(1,985,948)	(1,985,948)
	5,850	17,550	-	-	(1,985,948)	(1,962,548)
Balance at 31 October 2022	14,717,563	16,992,912	208,600	(480,620)	1,174,307	32,612,762
Total comprehensive income for the period
Loss for the period	-	-	-	-	(892,367)	(892,367)
	-	-	-	-	(892,367)	(892,367)
Transactions with owners
Shares issued during the year	3,089,178	17,328	-	-	-	3,106,506
Shares purchased by EBT	-	-	-	(400,000)	-	(400,000)
	3,089,178	17,328	-	(400,000)	-	2,706,506
Balance at 30 April 2023	17,806,741	17,010,240	208,600	(880,620)	281,940	34,426,901
Total comprehensive income for the year
Profit for the period	-	-	-	-	2,886	2,886
Other comprehensive income	-	-	-	-	208,600	208,600
	-	-	-	-	211,486	211,486
Transactions with owners
Shares issued during the year	108,444	204,960	-	-	-	313,404
Value of conversion rights on convertible notes	-	-	(208,600)	-	-	(208,600)
Equity element of new issue on convertible notes	-	-	477,640	-	-	477,640
	108,444	204,960	269,040	-	-	582,444
Balance at 31 October 2023	17,915,185	17,215,200	477,640	(880,620)	493,426	35,220,831

Unaudited group statement of financial position
at 31 October 2023
	At 31 October 2023 (Unaudited)	At 31 October 2022 (Unaudited)	At 30 April 2023 (Audited)
	GBP	GBP	GBP
ASSETS
Non-current assets
Investment properties	81,014,707	76,500,343	78,106,598
Investments	3,810,015	4,240,851	3,810,015
Deferred tax	298,238	186,738	298,237
Derivative Financial Instrument	-	662,864	509,292
	85,122,960	81,590,796	82,724,142
Current assets
Trade and other receivables	1,067,178	570,885	1,251,468
Derivative Financial Instrument	287,898	-	-
Cash and cash equivalents	3,048,599	6,581,380	6,228,032
	4,403,675	7,152,265	7,479,500
TOTAL ASSETS	89,526,635	88,743,061	90,203,642
EQUITY AND LIABILITIES
Current Liabilities
Trade and other payables	1,857,050	2,915,535	2,421,557
Taxation	121,211	835,999	320,341
Borrowings	18,442,067	11,467,712	29,886,011
	20,420,328	15,219,246	32,627,909
Non-current liabilities
Borrowings	33,885,476	40,911,053	23,148,832
	33,885,476	40,911,053	23,148,832
EQUITY
Issued capital and reserves
Share capital	17,915,185	14,717,563	17,806,741
Share premium reserve	17,215,200	16,992,912	17,010,240
Other reserve	477,640	208,600	208,600
Treasury shares	(880,620)	(480,620)	(880,620)
Retained earnings	493,426	1,174,307	281,940
Total equity attributable to owners of the parent	35,220,831	32,612,762	34,426,901
TOTAL EQUITY AND LIABILITIES	89,526,635	88,743,061	90,203,642

Unaudited Group cash flow statement

for the six months ended 31 October 2023

Year to date 31 October 2023 (Unaudited)	Six months ended 31 October 2022 (Unaudited)	Year ended 30 April 2023 (Audited)
	GBP	GBP	GBP
Profit / (Loss) before tax	(4,686)	731,383	(263,657)
Cash flow from operating activities
Adjustments for:
Finance income	(79,218)	(336,222)	(218,916)
Finance costs	2,099,759	1,536,238	3,382,440
Loss on disposal of investment property	-	29,442	29,442
Fair value adjustments	-	-	1,030,911
Decrease / (increase) in receivables	281,319	(33,481)	(762,949)
Decrease in payables	(484,687)	(247,356)	(839,915)
Tax paid	(183,797)	(258,810)	(791,055)
Interest paid	(1,736,839)	(1,242,204)	(2,735,433)
Other financial costs paid	(100,000)	(454,535)	(455,715)
Share issue costs	-	-	126,022
Net cash used by operating activities	(208,149)	(275,545)	(1,498,825)
Cash flows from investing activities
Interest received	58,035	9	4,986
Purchase of investment properties	(2,908,109)	(4,326)	(2,206,255)
Sale of investment properties	-	820,558	820,558
Net cash (used) / generated by investing activities	(2,850,074)	816,241	(1,380,711)
Cash flows from financing activities
Share issue, net of issue costs	-	-	2,980,484
Purchase of treasury shares	-	-	(400,000)
Long term loans advanced	1,650,000	22,027,500	23,227,500
Long term loan repaid	-	(379,850)	(1,093,450)
Short term loans repaid	(1,747,350)	(15,890,751)	(15,890,751)
Equity dividend paid	(23,860)	(1,962,088)	(1,962,088)
Net cash (used) / generated by financing activities	(121,210)	3,794,811	6,861,695
Net (decrease) / increase in cash and cash equivalents	(3,179,433)	4,335,507	3,982,159
Cash and cash equivalents at the beginning of the period	6,228,032	2,245,873	2,245,873
Cash and cash equivalents at the end of the period	3,048,599	6,581,380	6,228,032

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 interim results have not been audited or reviewed by the Company's auditors. The unaudited interim 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 2023. Those financial statements were prepared on a going concern basis.

The interim report for the six months to 31 October 2023 was approved by the Board on 25 January 2024.

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, 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

For further information, please contact:

Ace Liberty & Stone Plc
Laura Yates, Finance Director	Tel: +44 (0) 20 7201 8340
	http://acelibertyandstone.com
Alfred Henry Corporate Finance Ltd, AQSE Growth Market Corporate Adviser
Nick Michaels	Tel: +44 (0) 20 3772 0021

- Ends -

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