TIDMMTVW
RNS Number : 3341R
Mountview Estates PLC
14 June 2018
MOUNTVIEW ESTATES P.L.C.
Preliminary Results for the year ended 31 March 2018
CHIEF EXECUTIVE OFFICER'S STATEMENT
It is always disappointing to report profits that have fallen
but in the present uncertain economic climate I consider that my
team have given a very good performance. In uncertain times
transactions usually take longer to complete and so it is that
during the year ended 31 March 2018 we completed significantly less
sales than in the previous financial year. This fall in the number
of sales has caused the fall in profits to a far greater degree
than any perceived fall in prices.
Whilst the sales figures have fallen, the cost of the purchases
which we have made during this financial year has increased by over
50% compared with the previous year. It is purchases that are the
future of the Company and I am pleased to report that it is not
only the quantity of purchases but also the quality of the
purchases that has improved.
It is now nearly 30 years since regulated tenancies were last
created but this asset class continues to exist in sufficient
quantities to be the mainstay of our business. The percentage of
vacant possession value that has to be paid for such assets has
increased over the years but, given our low gearing, we believe
that we continue to be able to produce the best returns that are
available within our area of expertise in the property industry. We
have made modest diversification into life tenancies and as leases
become shorter where we are the ground landlord there is money to
be made in granting lease extensions. Nevertheless these are only
supplementary to our main business of buying residential properties
that are subject to regulated tenancies and awaiting vacant
possession.
Whilst regulated tenancies continue to exist for longer than may
have been anticipated when the 1988 Rent Act became effective a
business as narrowly focused as our does have a finite life. The
business will continue to prosper but it will become increasingly
difficult to replace stock as it is sold. Some shareholders may
wish to pursue their own avenues of diversification without selling
Mountview shares and so the final dividend payable on 13 August
2018 will be increased to 200 pence per share. This will make a
total of 400 pence per share in respect of the Company's year ended
31 March 2018.
Your Board is aware that the taxation of dividend income has
changed and, while 400 pence per share is an increase of a third
compared with 300 pence per share last year, the 300 pence per
share in respect of the Company's year ended 31 March 2016 was
worth 333 pence gross in the hands of ordinary rate taxpayers. Thus
your Board are happy to admit that the new total dividend is only
an increase of 20% over the total of two years ago. The new
dividend will be nearly twice covered.
This Statement does not seek to deny that profits have fallen
but the business remains soundly based and financially secure. When
Brexit negotiations and other economic uncertainties are resolved
the purchases we are presently able to make will realise good
profits and we can look forward to future increased earnings.
As has always been the case your Board only increase dividends
when they are confident of maintaining that increase and so it is
reasonable to expect the increase to 400 pence per share to be
maintained in future years.
Finally, it is only possible to maintain the Company's high
level of performance because of the quality of the personnel in the
team that I have around me. On behalf of all shareholders, I wish
to thank all my hard-working and loyal staff and colleagues for the
contribution they each make to the continuing well-being of
Mountview Estates P.L.C.
Duncan Sinclair
14 June 2018
MOUNTVIEW ESTATES P.L.C.
FINANCIAL HIGHLIGHTS
2018 2017 (Decrease)/Increase
GBP GBP %
Revenue (millions) 70.3 78.2 (10.1)
Gross Profit
(millions) 43.4 52.1 (16.7)
Profit Before
Tax (millions) 36.9 45.0 (18.0)
Profit Before
Tax excluding
investment properties
revaluation
(millions) 37.3 46.0 (18.9)
Equity Holders'
Funds (millions) 354.5 336.3 5.4
Earnings per
share (pence) 766.4 929.1 (17.5)
Net assets per
share (GBP) 90.91 86.25 5.4
Dividend per
share (pence) 400 300 33.3
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 200 pence per
share are as follows:
Ex-dividend 5 July 2018
date
Record date 6 July 2018
Payment date 13 August 2018
MOUNTVIEW ESTATES P.L.C.
CONSOLIDATED INCOME STATEMENT
FOR THE YEARED 31 MARCH 2018
Year Year
ended ended
31.03.2018 31.03.2017
GBP'000 GBP'000
REVENUE 70,272 78,232
Cost of sales (26,915) (26,176)
GROSS PROFIT 43,357 52,056
Administrative expenses (5,507) (5,231)
Gain on sale of investment
properties 145 0
Operating profit before changes
in
fair value of investment properties 37,995 46,825
(Decrease) in fair value of
investment properties (376) (1,020)
PROFIT FROM OPERATIONS 37,619 45,805
Net finance costs (714) (819)
PROFIT BEFORE TAXATION 36,905 44,986
Taxation - current (7,197) (9,234)
Taxation - deferred 173 473
Taxation (7,024) (8,761)
PROFIT ATTRIBUTABLE TO EQUITY
SHAREHOLDERS 29,881 36,225
Basic and diluted earnings
per share (pence) 766.4p 929.1p
MOUNTVIEW ESTATES P.L.C.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE YEARED 31 MARCH 2018
As at As at
31.03.2018 31.03.2017
GBP'000 GBP'000
ASSETS
NON-CURRENT ASSETS
Property, plant
and equipment 1,771 1,833
Investment properties 27,825 28,741
29,596 30,574
CURRENT ASSETS
Inventories of trading
properties 376,879 347,380
Trade and other
receivables 1,859 1,613
Cash at bank 5,368 825
384,106 349,818
TOTAL ASSETS 413,702 380,392
EQUITY AND LIABILITIES
Share capital 195 195
Capital redemption
reserve 55 55
Capital reserve 25 25
Other reserve 56 56
Retained earnings 354,131 335,948
354,462 336,279
NON-CURRENT LIABILITIES
Long-term borrowings 49,900 29,000
Deferred tax 4,696 4,869
54,596 33,869
CURRENT LIABILITIES
Bank overdrafts
and short-term loans 463 3,042
Trade and other
payables 1,843 1,951
Current tax payable 2,338 5,251
4,644 10,244
TOTAL LIABILITIES 59,240 44,113
TOTAL EQUITY AND
LIABILITIES 413,702 380,392
MOUNTVIEW ESTATES P.L.C.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 31 MARCH 2018
Capital
Share Capital Redemption Other Retained
Capital Reserve Reserve Reserves Earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance as
at 1 April
2016 195 25 55 56 311,421 311,752
Profit for
the year 36,225 36,225
Dividends (11,698) (11,698)
Balance as
at 31 March
2017 195 25 55 56 335,948 336,279
Capital
Share Capital Redemption Other Retained
Capital Reserve Reserve Reserves Earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'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
MOUNTVIEW ESTATES P.L.C.
GROUP CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2018
Year Year
ended ended
31.03.2018 31.03.2017
GBP'000
Cash flow from operating
activities
Operating profit 37,619 45,805
Adjustment for:
Depreciation 66 79
Gain on disposal of (145) -
investment properties
Decrease in fair value
of investment properties 376 1,020
Cash flow from operations
before changes in working
capital 37,916 46,904
(Increase) in inventories (29,499) (13,272)
(Increase)Decrease in
receivables (246) 107
(Decrease) in payables (108) (1,049)
Cash generated from
operations 8,063 32,690
Interest paid (714) (819)
Income taxes paid (10,110) (9,458)
Net cash (outflow)/
inflow from operating
activities (2,761) 22,413
Investing activities
Proceeds from disposal 685 -
of investment properties
Capital expenditure
on investment properties - (312)
Purchase of property,
plant and equipment (4) (1)
Net cash inflow/(outflow)
from investing activities 681 (313)
Cash flow from financing
activities
Increase/(Repayment)
of borrowings 20,483 (9,820)
Equity dividend paid (11,698) (11,698)
Net cash inflow/(outflow)
from financing activities 8,785 (21,518)
Net increase in cash
and cash equivalents 6,705 582
Opening cash and cash
equivalents (1,337) (1,919)
Cash and cash equivalents
at the end of the year 5,368 (1,337)
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 2018 and 31 March 2017, but represents extracts from
them.
The statutory accounts for the financial year ended 31 March
2017 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 2018 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 8 August 2018.
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 2018 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
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 BRGDLGBBBGIX
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