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.