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Mountview Estates. (MTVW)

Mountview Estates.

Preliminary Results - year ended 31 March 2020
RNS Number : 2943Q
Mountview Estates PLC
18 June 2020
 

MOUNTVIEW ESTATES P.L.C.

 

Preliminary Results for the year ended 31 March 2020

 

CHIEF EXECUTIVE OFFICER'S STATEMENT

 

When I wrote this statement last year I drew attention to the fact that the British People voted to leave the European Union on 23 June 2016 but every statement that I had written since then has been conscious of the uncertainties that continue pending the conclusion of our withdrawal.

Happily on 12 December 2019 Boris Johnson was elected with a big majority that enabled us to leave the European Union on 31 January 2020 but the details of the withdrawal will not be certain until 31 December 2020.

Now added to these uncertainties are the Covid-19 constraints the effects of which I will review later in this statement.  The financial year under review ended on 31 March 2020 and the lockdown was not imposed until within ten days of that date.  Given the time-lag on transactions in the property business it is fair to assume that any deal that was to conclude within those few days was already under contract before the constraints were imposed.

I believe that the trading results for the year ended 31 March 2020 were not influenced by the Covid-19 pandemic and that any influence or effects should be considered as post balance sheet events.

The headline figures in respect of our financial performance for the year ended 31 March 2020 are detailed under the heading "Financial Highlights" below.  Whilst Revenue has dropped by a very modest amount all the other performance indicators have shown an upward trend.  Gearing has fallen from 11.3% to 7.2% and thus we are in an even stronger position to make the purchases which are essential to the future of the Company.  Indeed we have made some good purchases in our new financial year.

The final dividend is maintained at 200 pence per share and is payable on 17 August 2020 subject to approval at the Annual General Meeting on 12 August 2020.  This will keep the total annual dividend at 400 pence per share which is slightly more generously covered 1.75 times than it was last year.

And now I inevitably turn to "Stay Home, Protect the N.H.S., Save Lives" or as expressed more recently "Stay Alert, Control the Virus, Save Lives".

Our colleague Andrew Williams is a doctor and it would be wrong not to express our admiration for his unstinting work on the front line.  Well done and thank you, Andrew!

We have had to adapt to new ways of running the office and I think that we have done so quite effectively.  Those of us who can work from home do so and the office is staffed on a rota basis so that we are able to maintain social distancing and still serve our customers appropriately.  Over 80% of our rents are paid directly into the bank and regulated rents are set at a modest level.  Provided tenants pay their rent they have absolute security of tenure and a significant number have help from social services.

Auctions are now all conducted remotely and the auctioneers are becoming more successful at replicating the ballroom atmosphere.  So far this financial year we have been happy in the auction room both in terms of sale prices achieved and the prices at which we have been able to make purchases.  Nobody can pretend that life is normal but our staff are coping very well.

We have not had to furlough any staff or reduce staff numbers in any other way and I remain confident that our years of financial prudence will enable us to continue to conduct the business successfully and to maintain our dividend payments.  Whilst I thank my staff and colleagues for their hard work, loyalty and expertise in producing increased profits for the year ended 31 March 2020 I thank them also for the willingness and good humour with which they are adapting to the strange circumstances in which we are finding ourselves.

I look forward to writing this statement in more normal times next year.

 

Duncan Sinclair

18 June 2020

 

 

 

MOUNTVIEW ESTATES P.L.C.

FINANCIAL HIGHLIGHTS

 

 

 

 

 

  2020

 

 

2019

 

 

(Decrease)/Increase

 

 

 

£

 

£

 

%

 

 

 

 

 

 

 

 

Revenue (millions)

 

 

64.9

   

65.4

 

(0.8)

 

 

 

 

 

 

 

 

 

Gross Profit (millions)

 

 

41.4

 

40.8

 

1.5

 

 

 

 

 

 

 

 

 

Profit Before Tax (millions)

 

 

34.9

 

34.6

 

0.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit Before Tax excluding investment properties revaluation (millions)

 

 

35.9

 

 

34.3

 

4.7

 

 

 

 

 

 

 

 

Equity Holders' Funds (millions)

 

 

379.6

 

366.9

 

3.5

 

 

 

 

 

 

 

 

Earnings per share (pence)

 

 

725.7

 

718.3

 

1.0

 

 

 

 

 

 

 

 

Net assets per share (£)

 

 

97.4

   

94.1

 

3.5

 

 

 

 

 

 

 

 

Dividend per share (pence)

 

 

400

 

400

 

-

 

 

 

 

 

 

 

 

 

Mountview Estates P.L.C. advises its shareholders that, following the issue of the final results, the relevant dates in respect of the proposed final dividend payment of 200 pence per share are as follows:

 Ex-dividend date

 

 9 July 2020

Record date

 10 July 2020

 

Payment date

17 August 2020

 

 

CONSOLIDATED INCOME STATEMENT

FOR THE YEAR ENDED 31 MARCH 2020

  

 

Year

 

Year

 

ended

 

ended

 

31.03.2020

 

31.03.2019

 

£'000

 

£'000

 

 

 

 

REVENUE

64,873

 

65,428

 

 

 

 

Cost of sales

(23,519)

 

(24,627)

 

 

 

 

GROSS PROFIT

41,354

 

40,801

 

 

 

 

Administrative expenses

(5,630)

 

(5,442)

Gain on sale of investment properties

1,174

 

-

 

 

 

 

Operating profit before changes in

fair value of investment properties

36,898

 

35,359

 

 

 

 

(Decrease)/Increase in fair value of investment  properties

(969)

 

287

 

 

 

 

PROFIT FROM OPERATIONS

35,929

 

35,646

 

 

 

 

Net finance costs

(988)

 

(1,079)

 

 

 

 

PROFIT BEFORE TAXATION

34,941

 

34,567

 

 

 

 

Taxation - current

(7,320)

 

(6,504)

Taxation - deferred

675

 

(55)

 

 

 

 

Taxation

(6,645)

 

(6,559)

 

 

 

 

PROFIT ATTRIBUTABLE TO EQUITY SHAREHOLDERS

28,296

 

28,008

 

 

 

 

Basic and diluted earnings per share (pence)

725.7p

 

718.3p

 

  

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

FOR THE YEAR ENDED 31 MARCH 2020

 

 

As at

As at

 

 

31.03.2020

31.03.2019

 

 

£'000

£'000

ASSETS

 

 

 

NON-CURRENT ASSETS

 

 

 

Property, plant and equipment

 

 1,670

1,710   

Investment properties

 

24,122

28,112

 

 

 

 

 

 

25,792

29,822

CURRENT ASSETS

 

 

 

Inventories of trading properties

 

392,069

392,384

Trade and other receivables

 

3,676

1,915

Cash at bank

 

3,553

1,981

 

 

 

 

 

 

399,298

396,280

 

 

 

 

TOTAL ASSETS

 

425,090

426,102

 

 

 

 

EQUITY AND LIABILITIES

 

 

 

Share capital

 

195

195

Capital redemption reserve

 

55

55

Capital reserve

 

25

25

Other reserve

 

56

56

Retained earnings

 

379,243

366,543

 

 

 

 

 

 

379,574

366,874

 

 

 

 

NON-CURRENT LIABILITIES

 

 

 

Long-term borrowings

 

  31,100

47,250

Deferred tax

 

4,076

  4,751

 

 

 

 

 

 

  35,176

52,001

 

 

 

 

CURRENT LIABILITIES

 

 

 

Bank overdrafts and short-term loans

 

2,060

1,250

Trade and other payables

 

4,830

2,812

Current tax payable

 

3,450

3,165

 

 

 

 

 

 

10,340

7,227

 

 

 

 

TOTAL LIABILITIES

 

45,516

59,228

 

 

 

 

TOTAL EQUITY AND LIABILITIES

 

425,090

426,102

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2020

 

 


 

 

 

Capital

 

 

 

 

Share

Capital

Redemption

Other

Retained

 

 

Capital

Reserve

Reserve

Reserves

Earnings

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as at 1 April 2018

195

25

55

56

354,131

354,462

 

 

 

 

 

 

 

Profit for the year

 

 

 

 

28,008

28,008

 

 

 

 

 

 

 

Dividends

 

 

 

 

(15,596)

(15,596)

 

 

 

 

 

 

 

Balance as at 31 March  2019

195

25

55

56

366,543

366,874

 

 

 

 

 

 

 

 

 

 

 

 

Capital

 

 

 

 

Share

Capital

Redemption

Other

Retained

 

 

Capital

Reserve

Reserve

Reserves

Earnings

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as at 1 April 2019

195

25

55

56

366,543

366,874

 

 

 

 

 

 

 

Profit for the year

 

 

 

 

28,296

28,296

 

 

 

 

 

 

 

Dividends

 

 

 

 

(15,596)

(15,596)

 

 

 

 

 

 

 

Balance as at 31 March 2020

195

25

55

56

379,243

379,574

 

 

 

 

 

 

 

 

 

GROUP CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 MARCH 2020

 

 

 

 

 

Year

 

Year

 

 

 

ended

 

Ended

 

 

 

31.03.2020

 

31.03.2019

 

 

 

£'000

 

£'000

Cash flow from operating activities

 

 

 

 

 

 

 

 

 

 

 

Operating profit 

 

 

35,929

 

35,646

Adjustment for:

 

 

 

 

 

Depreciation

 

 

64

 

61

 

 

 

 

 

 

(Gain) on disposal of investment properties

 

 

(1,174)

 

-

Decrease/(Increase) in fair value of investment properties

 

 

969

 

(287)

 

Cash flow from operations before changes in working capital 

 

 

35,788

 

35,420

 

 

 

 

 

 

Decrease/(Increase) in inventories

 

 

315

 

(15,505)

(Increase) in receivables

 

 

(1,761)

 

(56)

Increase in payables

 

 

2,018

 

969

Cash generated from operations

 

 

36,360

 

20,828

 

 

 

 

 

 

Interest paid

 

 

(988)

 

(1,079)

Income taxes paid

 

 

(7,035)

 

(5,677)

 

 

 

 

 

 

Net cash inflow from operating activities

 

 

28,337

 

14,072

 

 

 

 

 

 

Investing activities

 

 

 

 

 

Proceeds from disposal of investment properties

 

 

4,195

 

-

Purchase of property, plant and equipment

 

 

(24)

 

-

 

 

 

 

 

 

Net cash inflow from investing activities

 

 

4,171

 

-

 

 

 

 

 

 

Cash flow from financing activities

 

 

 

 

 

(Repayment) of borrowings

 

 

(16,835)

 

(1,863)

Equity dividend paid

 

 

(15,596)

 

(15,596)

 

 

 

 

 

 

Net cash (outflow) from financing activities

 

 

(32,431)

 

(17,459)

 

 

 

 

 

 

Net Increase/(decrease) in cash and cash equivalents

 

 

77

 

(3,387)

 

 

 

 

 

 

 

Opening cash and cash equivalents

 

 

 

 

1,981

 

 

5,368

Cash and cash equivalents at the end of the year

 

 

2,058

 

1,981

 

 

2020 Annual General Meeting (AGM) 

In light of ongoing restrictions imposed by the UK Government in response to the COVID-19 pandemic, which may continue to prohibit, amongst other things, non-essential travel and certain public gatherings, it is possible that the AGM will be a closed meeting with the minimum necessary quorum of two shareholders present in order to conduct the business of the meeting. 

Shareholders will be updated closer to the AGM on whether or not attendance is permitted. Details of the AGM will be included in the Notice of AGM set out in the 2019/20 Annual Report and Accounts that will be sent to shareholders at a date to be announced in due course.

 

 

 Notes to the Preliminary Announcement

 

1.  Financial Information

 

The financial information presented within this document does not comprise the statutory accounts for the financial years ended 31 March 2020 and 31 March 2019, but represents extracts from them.

The statutory accounts for the financial year ended 31 March 2019 have been filed with the Registrar of Companies.  The auditor reported on those accounts: their report was (i) unqualified, (ii) did not include references to any matters to which the auditor drew attention by way of emphasis without qualifying the reports and (iii) did not contain statements under section 498(2) or (3) of the Companies Act 2006.

The statutory accounts for the year ended 31 March 2020 are expected to be finalised and signed following approval by the Board of Directors and delivered to the Registrar of Companies following the Company's Annual General Meeting on 12 August 2020.

 

2.  Basis of Preparation

 

The preliminary announcement has been prepared in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRS") but does not contain sufficient information to comply fully with IFRS.  The Financial Statements to be presented to Members at the 2020 AGM are expected to comply fully with IFRS.

 

 ~ Ends ~

 

This announcement contains information which, prior to its disclosure, was inside information for the purposes of the Market Abuse Regulation.

 

  

For further information on the Company, visit: www.mountviewplc.co.uk 

 

SPARK Advisory Partners Limited (Financial Adviser) www.sparkadvisorypartners.com 

Mark Brady

020 3368 3551

 

 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
FR FLFIDRDIDLII
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