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Ace Liberty and Stone plc

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

FINAL RESULTS FOR THE YEAR ENDED 30 APRIL 2022

Well-positioned to capitalise on opportunities for growth

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 2022.

Financial Highlights:

· Profit before tax up 49% to £2,066,232 (FY 2021 £1,386,072)

· Lower rental income more than offset by cost reductions

· Shareholders' funds up 5.6% to £33,988,485 (FY 2021 £32,196,180)

· Re-finance creates stability and opportunities for growth

· Dividend of 3.4 p per share approved

Ismail Ghandour, Chief Executive Officer, commented:

"With no end in sight for turbulent times, Ace is solidly prepared to assess opportunities for the benefit of shareholders."

-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

Chairman's Statement

I present the results for the year ended 30 April 2022 with a great sense of satisfaction. The recent trading experience of many UK companies has been fraught with difficulty, largely because of the economic consequences of the Covid-19 pandemic. To report an increase of profit before tax from £1,386,072 to £2,066,232 - a jump of 49% - is very welcome. It is even more satisfying to show that the increase derives from management decisions made during a very difficult trading period. Revenue has dropped from £6,227,124 to £5,697,850, largely because of the sale of properties, but costs have been reduced by a greater amount. Administrative expenses have been reduced from £1,406,526 to £1,291,943, largely by eliminating costs associated with properties sold; finance cost has dropped from £3,021,065 to £2,792,045, partly from the reduction of secured loans resulting from property sales and partly from completing the write off of costs of finance facilities. In addition, property sales have yielded a gain of £917,203. Profit has been reduced by a precautionary impairment of £797,576 relating to the £5,038,427 held in Lebanon pending transfer to the UK for investment.

Management's focus during recent trading periods has been on protecting the Group from the risks stemming from adverse external events and making it ready to take advantage of opportunities which will arise in future. Priority has been given to finalising the drawdown of a new secured facility to replace the facility with Lloyds which matured in November 2021. In a difficult lending market, I am pleased to report that Coutts & Co have affirmed their confidence in the Group's operations by extending a new facility; this bank is now the sole lender to the Group.

Property acquisitions have had to take second place temporarily to the longer term strengthening of the Group's position. Completion of the purchase of the property at Unit M, 9 Hunters Row, Stafford has been delayed pending the completion of the re-finance, but this can now proceed.

Ace has continued to sell the assets classified as held for sale in the balance sheet in order to improve the quality of the portfolio. The previously announced sales of the properties at Bridge House, Dudley and Hillcrest House, Leeds took place as planned and the process was completed with the sale of Willow House, Aldershot on 29 July 2022.

Reference has been made previously to the funds held in Lebanon, which were subscribed by shareholders for real estate investment. Domestic issues in the Lebanese economy have so far prevented the remittance of the whole amount to the UK, but it remains the directors' belief that these funds remain of value to the Group and will be invested when the Lebanese economy allows.

Two years ago, Ace, like many other trading companies was faced with a totally unexpected, unknown threat in the form of the Covid virus. This is now substantially under control, but new perils face us all. The war in Ukraine has disrupted all the Western economies and, together with other factors, such as disruption of international trading, has precipitated a new threat from inflation. We remain confident that our business is sound and will perform well in spite of external shocks. At the meeting which approved these accounts, the Board decided to pay a dividend of 3.4p per share, which will be announced before the issue of this Report. This dividend is intended to recompense shareholders for the long gap since the previous dividend payments, which were paused while the Company benefited from a loan capital repayment holiday, and pave the way for a resumption of regular payments subject to profitability and cash flow.

Dr Tony Ghorayeb

Chairman

Date: 22 September 2022

Consolidated Statement of Comprehensive Income for the year ended 30 April 2022

	2022	2021
	£	£

Revenue	5,697,850	6,227,124
Gain on disposal of investment property	917,203	-
Administrative expenses	(1,291,943)	(1,406,526)
Fair value gain / (loss) on investment property	193,704	(500,000)
Fair value loss on investments	(797,576)	-
Fair value loss on assets held for sale	(200,000)	(200,000)
Loss on disposal of subsidiaries	(412,382)	-
Finance cost	(2,792,045)	(3,021,065)
Finance income	751,421	286,539
Profit before taxation	2,066,232	1,386,072
Taxation	(769,427)	(176,024)
Profit after taxation	1,296,805	1,210,048
Other comprehensive income - release of equity proportion of CLNs	202,302	8,883
Total comprehensive income for the period	1,499,107	1,218,931

Attributable to:
Owners of the parent	1,499,107	1,218,931

Earnings per share on continuing activities	Pence	Pence
Basic earnings per share attributable to equity owners of the parent	2.55	2.08
Diluted earnings per share attributable to equity owners of the parent	2.03	1.64

Consolidated Statement of Financial position at 30 April 2022

	Group
	2022	2021
ASSETS	£	£
Non-current assets
Investment property	76,500,343	79,706,639
Investments	4,240,851	5,000,680
Other receivables	-	-
Deferred tax	186,738	223,541
Derivative financial instrument	326,651	-
	81,254,583	84,930,860
Current assets
Assets held for sale	850,000	10,229,921
Trade and other receivables	533,079	1,347,471
Cash and cash equivalents	2,245,873	2,913,363
	3,628,952	14,490,755

TOTAL ASSETS	84,883,535	99,421,615

EQUITY AND LIABILITIES
Current liabilities
Liabilities relating to assets held for sale
Liabilities relating to assets held for sale	-	1,272,313
Trade and other payables	3,072,567	7,311,567
Taxation	953,280	458,542
Borrowings	17,644,125	37,716,654
Derivative financial instrument	-	77,601
Deferred tax	-	83,487
	21,669,972	46,920,164
Non-current liabilities
Borrowings	29,225,078	19,958,927
Derivative financial instrument	-	346,344
	29,225,078	20,305,271

Share capital	14,711,713	14,626,463
Share premium	16,975,362	16,773,712
Other reserve	208,600	202,302
Treasury shares	(480,620)	(480,620)
Retained earnings	2,573,430	1,074,323
Total equity	33,988,485	32,196,180

TOTAL EQUITY AND LIABILITIES	84,883,535	99,421,615

Consolidated Cash Flow Statement for the year ended 30 April 2022

	2022	2021
	£	£
Profit before tax	2,066,232	1,386,072

Cash flow from operating activities
Adjustments for:
Finance income	(751,421)	(286,539)
Finance costs	2,792,045	3,021,065
Gain on disposal of investment property	(917,203)	-
Fair value adjustment	803,872	700,000
Loss on disposal of subsidiaries	412,382	-
Increase in receivables	200,258	(257,448)
Decrease in payables	(1,789,890)	776,239
Tax paid	(189,720)	(4,936)
Interest paid	(2,050,999)	(2,617,709)
Other finance costs paid	(39,469)	(17,800)
Net cash generated by operating activities	536,087	2,698,944

Cash flows from investing activities
Interest received	825	49,359
Purchase of investment properties	-	(3,619,918)
Sale of investment properties	4,317,203	500,000
Sale of subsidiaries	5,067,061	-
Investment into LiBank	(37,747)	(5,000,680)
Net cash (used) / generated by investing activities	9,347,342	(8,071,239)

Cash flows from financing activities
Share issue, net of issue costs	-	-
Long term loans advanced	-	1,525,000
Long term loans repaid	(761,950)	(372,300)
Short term loans repaid	(9,788,969)	(300,000)
Equity dividend paid	-	-
Net cash (used) / generated by financing activities	(10,550,919)	852,700

Net (decrease) in cash and cash equivalents	(667,490)	(4,519,595)

Cash and cash equivalents at the beginning of the period	2,913,363	7,432,958

Cash and cash equivalents at the end of the period	2,245,873	2,913,363

NOTES TO PRELIMINARY RESULTS FOR THE PERIOD ENDED 30 APRIL 2022

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 22 September 2022. The audit report contained a section titled "Material uncertainty related to going concern" which included the following paragraph. "We draw attention to Note 3 in the Financial Statements, which explains that the Group had a bank covenant breach during the year to 30 April 2022; and, has certain loans that are due to expire in the next 12 months. A GBP 10 Million CLN is due to expire in May 2023 and a GBP 1 Million loan repayment to a shareholder is due to expire in June 2023. These events or conditions, along with the other matters as set out in Note 3, indicate that a material uncertainty exists that may cast significant doubt on the Group's and Parent Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter."

The preliminary announcement of the results for the year ended 30 April 2022 was approved by the board of directors on 27 September 2022.

2. Earnings per Share

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	1,499,107	1,218,931


Weighted average number of shares	shares of 25p	shares of 25p
For basic earnings per share	58,780,517	58,505,850
Dilutive effect of share options	14,940,383	15,840,708
For diluted earnings per share	73,720,900	74,346,558
Earnings per share	pence	pence
Basic	2.55	2.08
Diluted	2.03	1.64
	£	£
Dividends declared during the year - per share of 25p	-	-
Dividends declared during the year - total	-	-

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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