MOUNTVIEW ESTATES PLC

Earnings Release • Nov 24, 2016

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RNS Number : 9635P

Mountview Estates PLC

24 November 2016

Mountview Estates P.L.C.

Interim Results

24 November 2016

MOUNTVIEW ESTATES P.L.C.

("Mountview" or "the Group" or "the Company")

UNAUDITED INTERIM RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER 2016

Mountview is pleased to announce its unaudited interim results for the six months ended 30 September 2016.

OUR PERFORMANCE

Turnover at £34.0 million down by 20.6% (2015 - £42.8m)

Gross profit at £24.1 million down by 14.8% (2015- £28.3m)

Profit before tax at £21.7 million down by 16.2% (2015 - £25.9m)

Earnings per share at 446.9 pence down by 15.8% (2015 - 531.0p)

Net assets per share at £83.4 up by 7.9% (2015 - £77.3)

DIVIDEND INFORMATION

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

Ex-dividend date        16 February 2017

Record date                17 February 2017

Payment date              27 March 2017

Chief Executive Officer's Statement

One must admit to a degree of disappointment when profits go down, but the Company remains financially sound.  With these interim results comparing favourably with those of two years ago we may consider that we have survived quite well the fiscal measures enacted by the then Chancellor of the Exchequer before 1 April 2016.

TRADING

The legislation which was to be effective from 1 April caused an acceleration of transactions in March this year.  These transactions would normally have completed in our new financial year, but their early completion resulted in a drop of over 20% in the number of transactions in the six months ended 30 September 2016.    Turnover is down by £2.9 million compared with the half year ended 30 September 2014, but Gross Profit at £24.1 million is exactly the same.  Profit before tax and earnings per share both compare favourably with those of two years ago and net assets per share have risen by 17.5%.

INTERIM DIVIDEND

The interim dividend is maintained at 200p per share in respect of the year ending 31 March 2017 and is payable on 27 March 2017 to shareholders on the Register of Members as at 17 February 2017.

CURRENT TRADING

Whilst fewer acquisitions have been made during the first six months they have been of higher average value with the exception of one outstanding life tenancy acquired during the six months ended 30 September 2015.  Gearing remains at a comfortably modest level.

OUTLOOK

The reduction in base rate has helped but it was more about undoing the effects of legislation which came into effect on 1 April 2016 than any perceived effects of "Brexit".  With the possibility of a more balanced attitude towards property taxation we can view the Company's prospects with equanimity.

D.M. SINCLAIR

Chief Executive Officer

24 November 2016

GROUP STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

for the half year ended 30 September 2016

	Half year ended 30.09.2016 £000	Half year ended 30.09.2015 £000	Year ended 31.03.2016 £000
# Revenue	34,047	42,769	79,765
Cost of Sales	(9,908)	(14,448)	(26,751)
# Gross Profit	24,139	28,321	53,014
Administrative expenses	(1,930)	(2,010)	(5,148)
Gain on sale of investment properties	-	197	197
Operating profit before changes in
fair value of investment properties	22,209	26,508	48,063
Increase in fair value of investment properties	-	-	1,504
# Profit from operations	22,209	26,508	49,567
Net finance costs	(482)	(606)	(1,179)
# Profit before taxation	21,727	25,902	48,388
# Taxation - current	(4,356)	(5,400)	(9,593)
Taxation - deferred	54	202	(83)
# Taxation	(4,302)	(5,198)	(9,676)
# Profit attributable to equity Shareholders	17,425	20,704	38,712
# Basic and diluted earnings per share (pence)	446.9p	531.0p	992.9 p

All items within the consolidated income statement relate to continuing operations.

GROUP STATEMENT OF FINANCIAL POSITION (UNAUDITED)

for the half year ended 30 September 2016

	Half year ended	Half year ended	Year ended
	30.09.2016	30.09.2015	31.03.2016
	£000	£000	£000
# Assets
# Non-current assets
Property, plant and equipment	1,878	1,954	1,911
Investment properties	29,698	27,896	29,448
	31,576	29,850	31,359
# Current assets
Inventories of trading properties	338,921	330,867	334,108
Trade and other receivables	1,559	1,760	1,720
Cash and cash equivalents	675	682	1,706
	341,155	333,309	337,534
# Total assets	372,731	363,159	368,893
# Equity and liabilities
# Capital and reserves attributable
# to equity holders of the Company
# Share capital	195	195	195
Capital redemption reserve	55	55	55
Capital reserve	25	25	25
Other reserves	56	56	56
# Retained earnings	324,947	301,211	311,421
	325,278	301,542	311,752
Non-current liabilities
Long-term borrowings	35,600	49,600	39,700
Deferred tax	5,287	5,055	5,342
	40,887	54,655	45,042
Current liabilities
Bank overdrafts and loans	1,467	991	3,625
Trade and other payables	415	628	3,000
# Current tax payable	4,684	5,343	5,474
	6,566	6,962	12,099
## Total liabilities	47,453	61,617	57,141
Total equity and liabilities	372,731	363,159	368,893

GROUP CASHFLOW STATEMENT (UNAUDITED)

for the half year ended 30 September 2016

	Half year	Half year	Year
	ended	ended	ended
	30.09.2016	30.09.2015	31.03.2016
	£000	£000	£000
Cash flows from operating activities
Profit from operations	22,209	26,508	49,567
Adjustment for:
Depreciation	34	55	113
(Gain) on disposal of investment properties	-	(197)	(197)
(Increase) in fair value of investment properties	-	-	(1,504)
Operating cash flows before movement	22,243	26,366	47,979
in working capital
(Increase)   in inventories	(4,813)	(7,847)	(11,088)
Decrease in receivables	161	188	228
(Decrease)/Increase in payables	(1,999)	(1,715)	657
## Cash generated from operations	15,592	16,992	37,776
Interest paid	(482)	(606)	(1,179)
Income taxes paid	(5,147)	(1,633)	(5,693)
## Net cash inflow from operating activities	9,963	14,753	30,904
## Investing activities
Proceeds from disposal of investment properties	-	1,700	1,700
Capital expenditure on investment properties	(250)	-	(48)
Purchase of property, plant and equipment	(2)	(1)	(16)
## Net cash inflow from investing activities	(252)	1,699	1,636
## Cash flows from financing activities
Repayment of borrowings	(4,100)	(10,649)	(20,725)
Equity dividend paid	(3,899)	(6,823)	(14,621)
## Net cash (outflow) from financing activities	(7,999)	(17,472)	(35,346)
## Net increase/(decrease) in cash and cash equivalents	1,712	(1,020)	(2,806)
Opening cash and cash equivalents	(1,919)	887	887
## Cash and cash equivalents at end of period	(207)	(133)	(1,919)

GROUP CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

for the half year ended 30 September 2016

	Half year	Half year	Year
	ended	ended	ended
	30.09.2016	30.09.2015	31.03.2016
	£000	£000	£000
Shareholders' funds as at the beginning of the period	311,752	287,661	287,661
Profit for the period	17,425	20,704	38,712
Dividends	(3,899)	(6,823)	(14,621)
Shareholders' funds at the end of the period	325,278	301,542	311,752

Notes to the Half Year Report

Basis of preparation

These condensed interim financial statements are unaudited and do not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006.  This condensed consolidated interim financial information has been prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and International Accounting Standard 34 (IAS 34) "Interim Financial Reporting" as adopted by the European Union.  The interim condensed financial statements should be read in conjunction with the annual statements for the year ended 31 March 2016 which have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union.

The accounting policies used are consistent with those contained in the Group's last annual report and accounts for the year ended 31 March 2016.

The Group's published financial statements for the year ended 31 March 2016 have been reported on by the Group's auditors and filed with the Registrar of Companies.  The report of the auditors was unqualified and did not contain any statement under Section 498 of the Companies Act 2006.

Basis of consolidation

The Group's financial statements incorporate the results of Mountview Estates P.L.C. and all of its subsidiary undertakings.  Control is achieved where the Company has the power to govern the financial and operating policies of an investee enterprise so as to obtain benefits from its activities.  The Group exercises control through voting rights.

On acquisition, the identifiable assets, liabilities and contingent liabilities of a subsidiary are measured at their fair values at the date of acquisition.  The purchase method has been used in consolidating the subsidiary financial statements.

All significant intercompany transactions and balances between Group enterprises are eliminated on consolidation within the consolidated accounts.  Consistent accounting policies have been used across the Group.

Availability of the Half Year Report

Copies of this statement are being sent to Shareholders.  Copies may be obtained from the Company's registered office or from the Company's website - www.mountviewplc.co.uk. 

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

~ Ends ~

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

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

Miriam Greenwood                                                      0203 368 3553

Mark Brady                                                                  0203 368 3551

This information is provided by RNS

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