TIDMMTVW
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
GBP GBP %
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
(GBP) 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 YEARED 31 MARCH 2020
Year Year
ended ended
31.03.2020 31.03.2019
GBP'000 GBP'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 YEARED 31 MARCH 2020
As at As at
31.03.2020 31.03.2019
GBP'000 GBP'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 YEARED 31 MARCH 2020
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 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
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'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
GBP'000 GBP'000
Cash flow from operating activities
Operating profit 35,929 35,646
Adjustment for:
Depreciation 64 61
(Gain) on disposal of investment (1,174) -
properties
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 4,195 -
properties
Purchase of property, plant (24) -
and equipment
Net cash inflow from investing 4,171 -
activities
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
2 020 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
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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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