Mountview Estates Plc - Preliminary Results for year ended 31 March 2019

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.