ALSP Ace Liberty & Stone

Ace Liberty and Stone plc

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

INTERIM RESULTS FOR SIX MONTHS TO 31 OCTOBER 2024

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 2024 to 31 October 2024. 

Highlights*:

·      Rental income up 1.1% to £2,745,088 (October 2023: £2,714,887)

·      Administration costs down 3.8% to £672,251 (October 2023: £699,032)

·      Loss before tax of £243,144 largely driven by increased finance costs (October 2023: loss £4,686)

·      Completion of Melton Mowbray disposal in May 2024

·      Completion of £17.7 million debt facility in September 2024

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

Ismail Ghandour, Chief Executive Officer, commented:

"Despite the challenging macroeconomic climate, our portfolio has remained stable, providing consistent revenue and high occupancy levels. With interest rates forecast to reduce as we move into 2025, we expect to see a reduction in finance costs and an improvement in profitability. Nevertheless, we remain focused on cost management, regearing leases and refinancing to deliver long-term value to our shareholders."

Chairman's statement

I am pleased to announce the Company's interim results for the half year ended 31 October 2024. Turnover at £2,745,088 for the half year is up 1.1% on the comparable value for the previous year of £2,714,887. Pre-tax loss has increased from £4,686 in October 2023 to a loss of £243,144 in October 2024 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 disposal of the freehold of Egerton Park service station, Melton Mowbray for a consideration of £2,750,000. Several other transactions are under consideration and acquisitions and disposals will be made when advantageous to the Company.

A debt facility totalling £17,741,800 secured against the properties held in Ace (North) Limited completed in September 2024. The facility was provided by Coutts & Co who had held the existing debt against these properties and remain the sole bank lender to the Group. A further portion of the Company's loan facility with Coutts & Co, which stood at £20,692,500 at the balance sheet date, is due to mature in September 2025 and negotiations to renew or replace this loan will commence later in 2025.

The Ace portfolio remains robust with a strong occupancy rate of 96%. There is one void unit across the portfolio at our property Fawcett House in Sunderland, where discussions have continued with Sunderland City Council on the future re-development of the building. Measures have been put in place to mitigate void costs in this property, where possible.

The £10,000,000 convertible loan note is due to expire in May 2025. Early stage discussions are underway with the noteholder regarding this expiry.

The Company currently has cash resources of approximately £1.7 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 cash contribution to capital investment in Lebanon at the half year. However, the Directors acknowledge the impact of the wars in the region and the investment value will be reviewed at year end, in line with our usual policy.

As detailed in the 2024 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 2024:

a)     Portfolio Bank Loan to Value is 51% (October 2023: 53%)

b)    Weighted Average Unexpired Lease to Break is 5.94 years (October 2023: 6.50 years)

c)     46% of tenants are government bodies (October 2023: 46%); 52% are major industrial & commercial (October 2023: 52%)

Whilst the economic outlook remains uncertain as we head into 2025, the fundamental strengths which underpin the Ace business model are unchanged. The Group continues to see stable revenue and high occupancy rates from our geographically diverse asset base. With inflation falling closer to Government targets we expect to see a further drop in interest rates which may lead to improved liquidity and sentiment in the UK property sector. The Directors of Ace remain confident in the long-term prospects for the business and are committed to delivering value for our shareholders.

Unaudited group statement of comprehensive income

for the six months ended 31 October 2024

  *Unaudited