MOUNTVIEW ESTATES PLC

Earnings Release • Jun 17, 2021

National Storage Mechanism | Additional information

RNS Number : 1724C

Mountview Estates PLC

17 June 2021

Mountview Estates PLC

17 June 2021

MOUNTVIEW ESTATES P.L.C.

Preliminary Results for the year ended 31 March 2021

CHIEF EXECUTIVE OFFICER'S STATEMENT

I finished this statement last year by saying "I look forward to writing this statement in more normal times next year".  It is now "next year" and whilst some of the post-Brexit problems have been solved and the wonderful vaccination programme is letting us live in less fear of Covid-19, nevertheless the escape and recovery from the Covid-19 constraints and the damage they did to the economy will be with us for some time.

We have not had to furlough any staff nor have we made anyone redundant and our only benefit from any government action has been the stamp duty holiday.  As such we may be considered lucky and we are not in a business that has been closed down to protect us from the pandemic, but I believe that we have made our own luck at least in part.  There has always been at least one accountant at the helm of this business and the years of financial prudence have ensured that we always operate within our means and we have been able to weather the bureaucratic delays caused by the pandemic.

All our performance indicators show an upward trend, in particular Profit before Tax and Earnings per Share show increases of 9.2%, and we feel able to recommend an increase of 12.5% in the Final Dividend from 200 pence to 225 pence per share subject to shareholder approval at the Annual General Meeting on 11 August 2021.

We made good purchases during the year ended 31 March 2021 and have continued to do so since, and I am confident that we will continue to source good opportunities.  We only increase the dividend when we are confident of maintaining that increase and, indeed, we look forward to being able to increase the dividend further.

The Final Dividend, if approved at the Annual General Meeting, will be payable on 16 August 2021 to shareholders on the register at 9 July 2021.

Duncan Sinclair

17 June 2021

MOUNTVIEW ESTATES P.L.C.

FINANCIAL HIGHLIGHTS

			2021		2020		Increase
			£		£		%
Revenue (millions)			65.7		64.9		1.2
Gross Profit (millions)			43.2		41.4		4.3
Profit Before Tax (millions)			38.1		34.9		9.2
Profit Before Tax excluding investment properties revaluation (millions)			36.7		35.9		2.2
Equity Holders' Funds (millions)			394.9		379.6		4.0
Earnings per share (pence)			792.3		725.7		9.2
Net assets per share (£)			101.3		97.4		4.0
Dividend per share (pence)			425		400		6.3

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 225 pence per share are as follows:

Ex-dividend date	8 July 2021
Record date	9 July 2021
Payment date	16 August 2021

CONSOLIDATED INCOME STATEMENT

FOR THE YEAR ENDED 31 MARCH 2021

	Year		Year
	ended		ended
	31.03.2021		31.03.2020
	£'000		£'000
REVENUE	65,730		64,873
Cost of sales	(22,508)		(23,519)
GROSS PROFIT	43,222		41,354
Administrative expenses	(5,865)		(5,630)
Gain on sale of investment properties	-		1,174
Operating profit before changes in fair value of investment properties	37,357		36,898
Increase/(Decrease) in fair value of investment properties	1,452		(969)
PROFIT FROM OPERATIONS	38,809		35,929
Net finance costs	(675)		(988)
PROFIT BEFORE TAXATION	38,134		34,941
Taxation - current	(6,966)		(7,320)
Taxation - deferred	(275)		675
Taxation	(7,241)		(6,645)
PROFIT ATTRIBUTABLE TO EQUITY SHAREHOLDERS	30,893		28,296
Basic and diluted earnings per share (pence)	792.3p		725.7p

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

FOR THE YEAR ENDED 31 MARCH 2021

		As at	As at
		31.03.2021	31.03.2020
		£'000	£'000
ASSETS
NON-CURRENT ASSETS
Property. plant and equipment		1,606	1,670
Investment properties		25,574	24,122
		27,180	25,792
CURRENT ASSETS
Inventories of trading properties		398,166	392,069
Trade and other receivables		1,417	3,676
Cash at bank		597	3,553
		400,180	399,298
TOTAL ASSETS		427,360	425,090
EQUITY AND LIABILITIES
Share capital		195	195
Capital redemption reserve		55	55
Capital reserve		25	25
Other reserve		56	56
Retained earnings		394,540	379,243
		394,871	379,574
NON-CURRENT LIABILITIES
Long-term borrowings		20,600	31,100
Deferred tax		4,351	4,076
		24,951	35,176
CURRENT LIABILITIES
Bank overdrafts and short-term loans		1,280	2,060
Trade and other payables		2,142	4,830
Current tax payable		4,116	3,450
		7,538	10,340
TOTAL LIABILITIES		32,489	45,516
TOTAL EQUITY AND LIABILITIES		427,360	425,090

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2021

			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

			Capital
	Share	Capital	Redemption	Other	Retained
	Capital	Reserve	Reserve	Reserves	Earnings	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Balance as at 1 April 2020	195	25	55	56	379,243	379,574
Profit for the year	-	-	-	-	30,893	30,893
Dividends	-	-	-	-	(15,596)	(15,596)
Balance as at 31 March 2021	195	25	55	56	394,540	394,871

GROUP CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 MARCH 2021

			Year		Year
			ended		ended
			31.03.2021		31.03.2020
			£'000		£'000
Cash flow from operating activities
Operating profit			38,809		35,929
Adjustment for:
Depreciation			64		64
(Gain) on disposal of investment properties			-		(1,174)
(Increase)/Decrease in fair value of investment properties			(1,452)		969
Cash flow from operations before changes in working capital			37,421		35,788
(Increase)/Decrease in inventories			(6,097)		315
Decrease/(Increase) in receivables			2,259		(1,761)
(Decrease)/Increase in payables			(2,688)		2,018
Cash generated from operations			30,895		36,360
Interest paid			(675)		(988)
Income taxes paid			(6,300)		(7,035)
Net cash inflow from operating activities			23,920		28,337
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			(10,116)		(16,835)
Equity dividend paid			(15,596)		(15,596)
Net cash (outflow) from financing activities			(25,712)		(32,431)
Net (Decrease)/Increase in cash and cash equivalents			(1,792)		77
Opening cash and cash equivalents			2,058		1,981
Cash and cash equivalents at the end of the year			266		2,058

2021 Annual General Meeting (AGM) 

The 2021 AGM of the Company will be held on Wednesday 11 August 2021 and details will be set out in the Notice of AGM as to the location and format of the meeting.

In accordance with the UK Government's roadmap to ease COVID-19 restrictions across England currently it is expected that it will be possible to offer an in-person meeting. However, the health and wellbeing of our shareholders, employees and our Directors remains the Board's primary concern. It is essential to remain vigilant notwithstanding the ongoing UK vaccination programme, particularly with the spread of new variants of the coronavirus in the UK and other parts of the world. Therefore shareholders should consider whether it is appropriate to attend in person at the AGM. Details of the AGM will be included in the Notice of AGM set out in the 2020/21 Annual Report and Accounts that will be sent to shareholders at a date to be announced in due course.

There is also the possibility that arrangements for the AGM will have to be adapted to respond to the UK Government guidelines on short notice. Shareholders will be updated closer to the AGM on whether or not attendance is permitted via the issuance of a Regulatory News Service announcement and on the Company's website.

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 2021 and 31 March 2020, but represents extracts from them.

The statutory accounts for the financial year ended 31 March 2020 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 2021 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 11 August 2021 ("2021 AGM").

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 2021 AGM are expected to comply fully with IFRS.

~ Ends ~

This announcement contains inside information as stipulated under the UK version of the Market Abuse Regulation No 596/2014 which is part of English Law by virtue of the European (Withdrawal) Act 2018, as amended. On publication of this announcement via a Regulatory Information Service, this information is considered to be in the public domain.

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

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