MOUNTVIEW ESTATES PLC

Earnings Release • Jun 13, 2019

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RNS Number : 0174C

Mountview Estates PLC

13 June 2019

MOUNTVIEW ESTATES P.L.C.

Preliminary Results for the year ended 31 March 2019

CHIEF EXECUTIVE OFFICER'S STATEMENT

On 23 June 2016 the British People voted to leave the European Union and every statement that I have written since then has been conscious of the uncertainties that should have been resolved by 29 March 2019.  Unfortunately those uncertainties are likely to continue at least until 31 October 2019 but I must write this statement in the belief that we will continue to live in a property owning democracy.

The headline figures in respect of our financial performance for the year ended 31 March 2019 are detailed under the heading "Financial Highlights" below.  There has been a further fall in the number of sales transactions completed and thus I have to report a further, but more modest, fall in the Group's profits.  Whilst the number of purchases is less than last year we continue to make good purchases and it is these that secure the future prosperity of the Company.  The number of regulated tenancies available for purchase diminishes each year but the number of businesses seeking to acquire these diminishes as well.

The Company's gearing remains low and we continue to scrutinise our expenses keenly whilst ensuring that we reward all our loyal staff for their hard work and expertise which is so vital to the future prosperity of the Company.  Also we are comfortable in keeping the final dividend at 200 pence per share, which is payable on 12 August, and thus maintaining the total annual dividend at 400 pence per share which is more than 1.75 times covered.

It will be a happier task writing this statement when the various uncertainties have been resolved in such a way that we can again report increased profits and thus an increase in dividends.  In the meantime it is, once again, my pleasure to thank my staff and colleagues for the hard work and loyalty which ensures the continuing well-being of Mountview Estates P.L.C.

Duncan Sinclair

13 June 2019

MOUNTVIEW ESTATES P.L.C.

FINANCIAL HIGHLIGHTS

			2019		2018		(Decrease)/Increase
			£		£		%
Revenue (millions)			65.4		70.3		(7.0)
Gross Profit (millions)			40.8		43.4		(6.0)
Profit Before Tax (millions)			34.6		36.9		(6.2)
Profit Before Tax excluding investment properties revaluation (millions)			34.3		37.3		(8.0)
Equity Holders' Funds (millions)			366.9		354.5		3.5
Earnings per share (pence)			718.3		766.4		(6.3)
Net assets per share (£)			94.09		90.91		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	4 July 2019
Record date	5 July 2019
Payment date	12 August 2019

CONSOLIDATED INCOME STATEMENT

FOR THE YEAR ENDED 31 MARCH 2019

	Year		Year
	ended		ended
	31.03.2019		31.03.2018
	£'000		£'000
REVENUE	65,428		70,272
Cost of sales	(24,627)		(26,915)
GROSS PROFIT	40,801		43,357
Administrative expenses	(5,442)		(5,507)
Gain on sale of investment properties	-		145
Operating profit before changes in fair value of investment properties	35,359		37,995
Increase/(Decrease) in fair value of investment  properties	287		(376)
PROFIT FROM OPERATIONS	35,646		37,619
Net finance costs	(1,079)		(714)
PROFIT BEFORE TAXATION	34,567		36,905
Taxation - current	(6,504)		(7,197)
Taxation - deferred	(55)		173
Taxation	(6,559)		(7,024)
PROFIT ATTRIBUTABLE TO EQUITY SHAREHOLDERS	28,008		29,881
Basic and diluted earnings per share (pence)	718.3p		766.4p

.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

FOR THE YEAR ENDED 31 MARCH 2019

		As at	As at
		31.03.19	31.03.2018
		£'000	£'000
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment		1,710	1,771
Investment properties		28,112	27,825
		29,822	29,596
CURRENT ASSETS
Inventories of trading properties		392,384	376,879
Trade and other receivables		1,915	1,859
Cash at bank		1,981	5,368
		396,280	384,106
TOTAL ASSETS		426,102	413,702
EQUITY AND LIABILITIES
Share capital		195	195
Capital redemption reserve		55	55
Capital reserve		25	25
Other reserve		56	56
Retained earnings		366,543	354,131
		366,874	354,462
NON-CURRENT LIABILITIES
Long-term borrowings		47,250	49,900
Deferred tax		4,751	4,696
		52,001	54,596
CURRENT LIABILITIES
Bank overdrafts and short-term loans		1,250	463
Trade and other payables		2,812	1,843
Current tax payable		3,165	2,338
		7,227	4,644
TOTAL LIABILITIES		59,228	59,240
TOTAL EQUITY AND LIABILITIES		426,102	413,702

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2019

			Capital
	Share	Capital	Redemption	Other	Retained
	Capital	Reserve	Reserve	Reserves	Earnings	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Balance as at 1 April 2017	195	25	55	56	335,948	336,279
Profit for the year					29,881	29,881
Dividends					(11,698)	(11,698)
Balance as at 31 March  2018	195	25	55	56	354,131	354,462

			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

GROUP CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 MARCH 2019

			Year		Year
			ended		ended
			31.03.2019		31.03.2018
			£'000		£'000
Cash flow from operating activities
Operating profit			35,646		37,619
Adjustment for:
Depreciation			61		66
Gain on disposal of investment properties			-		(145)
(Increase)/Decrease in fair value of investment properties			(287)		376
Cash flow from operations before changes in working capital			35,420		37,916
(Increase) in inventories			(15,505)		(29,499)
(Increase) in receivables			(56)		(246)
Increase(Decrease) in payables			969		(108)
Cash generated from operations			20,828		8,063
Interest paid			(1,079)		(714)
Income taxes paid			(5,677)		(10,110)
Net cash inflow/(outflow) from operating activities			14,072		(2,761)
Investing activities
Proceeds from disposal of investment properties			-		685
Purchase of property, plant and equipment			-		(4)
Net cash inflow from investing activities			-		681
Cash flow from financing activities
(Repayment)/Increase in borrowings			(1,863)		20,483
Equity dividend paid			(15,596)		(11,698)
Net cash (outflow)/inflow from financing activities			(17,459)		8,785
Net (decrease)/increase in cash and cash equivalents			(3,387)		6,705
Opening cash and cash equivalents			5,368		(1,337)
Cash and cash equivalents at the end of the year			1,981		5,368

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 2019 and 31 March 2018, but represents extracts from them.

The statutory accounts for the financial year ended 31 March 2018 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 2019 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 7 August 2019.

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 2019 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 Advisor)   www.sparkadvisorypartners.com 

Miriam Greenwood                                                      0203 368 3553

Mark Brady                                                                  0203 368 3551

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