TIDMALSP
RNS Number : 1919L
Ace Liberty & Stone PLC
29 April 2020
ACE LIBERTY AND STONE PLC
("Ace" or "the Company")
TRADING UPDATE
Ace Liberty and Stone Plc (AQSE: ALSP), the active property
investment company, capitalising on commercial property investment
opportunities across the UK, is pleased to update shareholders on
the current positive state of the Company's business.
A strong portfolio
As at 30 April 2014, the value of the Company's property
portfolio was GBP10,032,267. By 30 April 2019, that value had
increased to GBP88,323,017, with the portfolio predominantly let to
departments of national government (52%), local authorities (7%),
and major industrial and commercial entities (38%). The total
passing rental income generated by this portfolio was GBP6,477,438
at 30 April 2020; the secured loan to value was 52.02% and the
weighted average unexpired lease to break was 8.72 years.
From this position of strength, the Directors followed a policy
of continued stability, making no further purchases and allowing
the Company to enjoy sustained rental income without incurring
costs associated with new acquisitions.
The portfolio was fully tenanted apart from one development
property in Aldershot.
Prior to the national lockdown following the outbreak of
Covid-19, Ace's tenants also had a 100% payment record across the
whole portfolio.
Debt / equity
At 30 April 2019, net debt stood at GBP61,177,102 compared to
total equity of GBP21,170,030, giving a ratio of 289%. At 31
October 2019, this ratio was stable at 292% with 43,198,368
ordinary shares in issue.
The 5% CLN issued in January 2018 was due to mature in December
2019. 3,856,000 new ordinary shares were issued as a result of
conversions, exercise of warrants and interest payments in the
period from 1 November to 31 December 2019 after our last half
yearly report.
As a result of demand for the Company's shares in January 2020,
the directors exercised their options to subscribe for 6,983,333
new shares and immediately sold these on to investors, bringing new
cash funds of GBP4,534,800 to boost the Company's resources.
Assessing the economic impact of Covid-19, the directors decided
to strengthen the Company's position by offering the holders of the
Company's 7% loan the opportunity to convert into new ordinary
shares at an issue price of 50p. This was accepted by eight holders
thereby eliminating debt of GBP2,200,000 and future interest
payments of GBP154,000; 4,421,094 new shares were issued, taking
the aggregate issued capital to 58,466,295 ordinary shares, which
total also includes some minor issues of shares to settle invoice
liabilities.
Minor impact of Covid-19
The Company's tenant base has proven to be remarkably resilient
in the face of the current global crisis. Ace's strategy since
inception was to seek governmental lessees because they are least
likely to default. Ace is currently reaping the rewards of this
strategy. Despite the measures introduced by the UK Government to
contain the Covid-19 virus, only seven tenants (five in the leisure
industry and two in the retail sector) were unable to pay their
rent on the March 2020 quarter day. Payments received represented
82% of rents due.
The vast majority of Ace's tenants will continue to pay their
rent as normal. Four of the aforementioned tenants who are facing a
difficult time during the lockdown period are large organisations
already planning to return to full operations as soon as the
lockdown ends.
Company response to Covid-19
Ace expects to ride out the economic impact of the response to
Covid-19, and the directors have taken steps to preserve the
Company's cash resources and maintain its strong position.
The Company had a healthy cash balance before the impact of the
Covid19 on the economy and the actions detailed above have further
strengthened this position.
Actions taken by the directors to further strengthen the
Company's short-term position include:
-- Temporarily deferring dividend payments;
-- Obtaining deferral of tax payments;
-- Seeking a short-term capital repayment holiday from the Group's bankers; and
-- Implementing working from home procedures for employees.
The Company's Annual Report for the year ending 30 April 2020 is
due for release in September 2020, and the Board will issue a full
appraisal of the Company's business at that time. Ace confidently
expects the results for the year ending 30 April 2020 to be an
improvement on the previous year, subject only to possible
impairments to property values.
Commenting on progress made and outlook, Ismail Ghandour, Chief
Executive Officer, said:
"Our properties with stable, long term tenants (mostly
governmental) and strong yields are highly attractive investments -
even more so during this global crisis. We are extremely pleased
with Ace's position and our strong foundation, which will allow us
to weather the economic effects of Covid-19."
The Directors accept responsibility for this announcement.
- 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 Tel: +44 (0) 20 3772 0021
Jon Isaacs / Nick Michaels www.alfredhenry.com
SP Angel Corporate Finance LLP
Broker Tel: +44 (0)20 3470 0470
Abigail Wayne / Rob Rees www.spangel.co.uk
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
www.acfequityresearch.com
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, Dudley, Gateshead,
Barnstaple, and London. The Company locates commercial and
residential properties 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
www.acelibertyandstone.com
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London Stock Exchange. RNS is approved by the Financial Conduct
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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April 29, 2020 02:30 ET (06:30 GMT)
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