(Alliance News) - Ace Liberty & Stone PLC on Friday reported an annual loss amid higher expenses, citing the UK's September 2022 "mini-budget" and high interest rates and inflation.
The London-based property investment company said its pretax loss in the financial year that ended on April 30 totalled GBP263,657, swinging from a profit of GBP2.1 million the year prior. Revenue decreased to GBP5.6 million from GBP5.7 million.
Administrative costs increased 45% to GBP1.9 million from GBP1.3 million.
Finance costs increased 21% to GBP3.4 million from GBP2.8 million, which the company said, among other factors, was due to rising interest rates and inflation, following last year's UK mini-budget.
It added: "The volatility in the interest rate market has had a particular impact on property valuations and the real estate market."
Further, Ace Liberty reported a fair value loss on investment property of GBP600,000 in financial 2023, compared to a gain of GBP193,704 a year ago.
The company declared no dividend, compared to a payout of 3.4 pence per share in financial 2022.
"The board remains committed to establishing regular distributions to shareholders and dividend payments will recommence once adequate reserves are available," Ace Liberty said.
Looking ahead, Chair Tony Ghorayeb said: "[The company is] confident in the long-term strength of Ace. The board has focused on developing a portfolio of geographically diverse, low-risk assets with a secure tenant base. Together with significant cash reserves at year end, the portfolio is in a strong position to perform well against this backdrop of economic turmoil."
Ace Liberty were untraded in London on Friday, last quoted at 65.00 pence each.
By Tom Budszus, Alliance News reporter
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