(Alliance News) - Ace Liberty & Stone PLC on Friday said it would only make further acquisitions when "advantageous", after administrative expenses related to one-off staff costs and property dilapidations increased.

For the six months to October 31, the company reported a pretax profit of GBP731,383, down 3% versus GBP754,911 a year prior. Rental income similarly fell 6% to GBP2.7 million from GBP2.9 million in 2021.

Chair Tony Ghorayeb said the results showed a one-off increase in administrative expenses, and also noted the impact of income from dilapidations in respect of the Fawcett House, Sunderland property.

During the period, discussions continued with Sunderland City Council on the future redevelopment of Fawcett House. Ace Liberty & Stone recorded a cost of GBP184,000 for rates charges on the empty portion of the property, contributing to the increase in administrative expenses. It said that measures have been put in place to mitigate this expense for the future.

On October 31, the company had total assets of GBP88.7 million, down from GBP90.0 million a year prior.

Contracts were exchanged over half for the purchase of Loders Service Station in Dorchester at a cost of GBP2.1 million. The property yields an initial rental income of GBP167,914, with substantial increases embedded in its fifteen-year unexpired lease.

Looking ahead, Ace Liberty said that several other purchases were under consideration, but acquisitions would only be made "when advantageous to the company in the current unsettled economic circumstances".

During the period, administration expenses increased to GBP867,144 from GBP579,241 the previous year.

The company also continued with its programme of management changes during the period. Commercial Director Mark Thomas resigned to pursue other interests and was replaced by Nick Jones.

There were also changes within the staffing of the finance department, including a period of maternity leave. Ace said these developments had driven an increase in salary costs of GBP115,000, contributing to the rise in administrative expenses.

Shares in Ace last traded at 57.5 pence on January 17 in London.

By Holly Beveridge; Alliance News reporter

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