REG - Mountview Estates. - Annual Financial Report & Notice of AGM

Mountview Estates P.L.C.Announcement

11/07/2022 18:30

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RNS Number : 0856S  Mountview Estates PLC  11 July 2022

 

Mountview Estates P.L.C.

Publication of 2022 Annual Report and Accounts

&

Notice of 2022 Annual General Meeting

 

Mountview Estates P.L.C. (the "Company") announces that the Annual Report and
Accounts for the year ended 31 March 2022 ("2022 ARA") together with the 2022
Notice of Annual General Meeting (the "2022 AGM") has been sent to
shareholders and is available to download from the Company's website
(file:///C%3A/NRPortbl/CFD/DEBW/www.mountviewplc.co.uk) www.mountviewplc.co.uk
(https://www.mountviewplc.co.uk/) .

Copies of these documents, together with the Form of Proxy for the Annual
General Meeting, will be made available for inspection on the National Storage
Mechanism at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) .

AGM arrangements

 

The Company's 2022 AGM will be held at the offices of Norton Rose Fulbright
LLP, 3 More London Riverside, London DE1 2AQ on Wednesday, 10 August 2022 at
11.00 am. The Company intends to hold the 2022 AGM as an in person meeting.
Those attending the AGM will be required to follow any specific health and
safety measures in place at the venue of the 2022 AGM on 10 August 2022.
Shareholders should consider whether it is appropriate to attend the meeting
in person. Any specific measures in place will be published prior to the
meeting on the Company's website: www.mountviewplc.co.uk
(http://www.mountviewplc.co.uk) .

 

Voting

 

The Board urges all shareholders to exercise their vote and submit their proxy
as soon as possible. All shareholders are encouraged to appoint the chairman
of the meeting as their proxy even if they intend to attend in person. This is
to ensure their vote is counted even if they (or any other proxy appointed)
are not able to attend in person on the day of the 2022 AGM. Results of voting
will be published as soon as practicable following the conclusion of the
meeting.

 

Engagement with shareholders is important to the Company and arrangements have
been made so that shareholders can participate in the 2022 AGM by submitting
questions or matters of concern in connection with the business of the 2022
AGM in advance. Any specific questions on the business of the 2022 AGM and on
the resolutions can be submitted by email to reception@mountviewplc.co.uk
(mailto:reception@mountviewplc.co.uk) or by writing to the Company Secretary,
Mountview House, 151 High Street, Southgate, London N14 6EW. The Board
encourages questions to be submitted as soon as possible and no later than 29
July 2022 and the Board will provide responses to relevant questions by way of
a written Q&A posted on the Company's website as soon as practicable in
advance of the AGM, and no later than 5 August 2022. The Notice of 2022 AGM
explains the arrangements for submitting questions.

 

In compliance with paragraph 6.3.5 of the Disclosure Guidance and Transparency
Rules, the information in respect of Principal Risks, Related Party
Transactions and the Statement of Directors' Responsibilities, contained in
the Appendix, is extracted from the 2022 Annual Report and Accounts and should
be read in conjunction with the Company's preliminary results announcement of
16 June 2022 which can be viewed on the Company's website at
(file:///C%3A/Users/nbutler/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/8EOMQHYF/www.mountviewplc.co.uk.)
www.mountviewplc.co.uk (https://www.mountviewplc.co.uk/)

 

 

Enquiries:

For further information on the Company, visit: www.mountviewplc.co.uk
(http://www.mountviewplc.co.uk)

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

 Mark Brady  020 3368 3550

 

 

APPENDIX

 

PRINCIPAL RISKS AND UNCERTAINTIES

 

In our recent annual reports we have considered the impact of Covid on our
principal risks. So, in our 2020 Annual Report we specifically considered risk
by risk the possible impact that Covid-19 could have on the business. Last
year in our 2021 Annual Report we noted that for the most part these did not
materialize and so we removed these risk by risk comments. Although we noted
the exception was in relation to risk 7 - Operations and Property Maintenance
where some tenants were reluctant to allow contractors or inspectors into
their homes due to their personal circumstances. We respected these wishes so
only essential work was carried out by contractors who abided by our Covid-19
secure regime. It increased the risk of maintenance backlog but this year we
have seen a further decrease in this risk following the vaccination programme
tenants were more ready to accept contractors into their houses and as a
result we have caught up on the backlog that built up in the last two years
meaning that this risk is now free of a Covid-19 influence.

 

As a result for this year we have removed the specific references to Covid-19
from the commentary on the underlying risks. A fuller note of our approach to
our work during the pandemic, including risk management, is contained in the
separate note on our operational response to Covid-19 on page 18 of the 2022
ARA. This position will be kept under constant review.

 

We have carried out a robust assessment of the principal risks facing the
Company, including those that would threaten its business model, future
performance or solvency. The following list of risks does not comprise all of
the risks the Company or Group may face, and they are not presented in order
of importance.

 

1.   TRADING STOCK - REGULATED TENANCIES

RISK

Reduced opportunity to replace asset sales of vacant properties due to the
reducing number of regulated tenancies available for purchase.

MITIGATION

The Group has developed clear criteria that are applied when considering asset
purchases. Using these, the Group has performed creditably in a difficult
market replacing this class of assets in the year ended 31 March 2022, with
good purchasing again during the year. The 'Analysis of Acquisitions' is on
page 8 of the 2022 ARA.

 

2.   MARKET

RISK

Weak macro-economic conditions triggered by external events including for
example Brexit, Covid-19, the war in Ukraine and the cost of living crisis.

MITIGATION

The Group's exposure is weighted towards the stronger London and South East
markets and this geographical area has over the long term consistently been an
above-average performer.

 

3.   FINANCIAL

RISK

Reduced availability of financing options resulting in inability to meet
business plans.

MITIGATION

The Group monitors its bank accounts and loans closely to maintain sufficient
capacity. We review our loan facilities regularly. The Group is conservatively
geared and operates well within financial covenants. Financial Key Performance
indicators are on page 10. Details of the Group's current facilities are set
out in Note 18 on page 71 of the 2022 ARA.

 

4.   DIVIDENDS

RISK

The Group seeks to provide shareholders with good returns on their investment.
This aim could be put at risk if the Group was unable to sustain the level of
dividends for any reason.

MITIGATION

We carefully monitor our strategy and our results in order to identify any
risk to dividend levels. The Group maintains a strong balance sheet. With
appropriate banking facilities, we are able to maintain our trading stock by
taking advantage of purchasing opportunities when they occur.

 

5.   PEOPLE

RISK

Capacity to maintain strategy is compromised due to inability to attract and
retain suitably experienced employees.

MITIGATION

Mountview employs a relatively small workforce which accommodates personal
interaction at all levels. The Company has a stringent recruitment process to
ensure we employ appropriately skilled staff. We carry out regular appraisals
and offer employees opportunities for training and development courses. The
Company has a good record of long-term service, a great number of our
employees have worked for the group for over 10 years. Details of employees
and diversity are set out in Notes 9 and 10 of the Directors' Report in the
2022 ARA.

 

6.   REGULATORY

RISK

Risk of not meeting new or changed regulatory requirements and obligations
that affect the Group's business activities and could lead to fines or
penalties.

MITIGATION

The Group engages in close working relationships with appropriate authorities
and advisers to ensure it meets its obligations.

 

7.   OPERATIONS AND PROPERTY MAINTENANCE

RISK

Legal action against the Group for failure to meet its obligations under
property management and safety legislation.

MITIGATION

In addition to its own regular inspections, the Group engages professional
external companies to undertake health and safety, gas and electrical checks,
fire risk assessments, etc to ensure we meet our commitments as employers and
landlords. Our staff receive regular training to ensure their skills are kept
up to date. Our Compliance Officer monitors our performance against existing
regulations and tracks and prepares for new requirements as they are
published.

 

8.   CLIMATE

RISK

The impact on the Group of climate related matters. For example, physical
risks following changing weather patterns, including extreme weather events,
that could lead to increased wear and tear or other property damage and
transition risks, for example following regulatory changes.

MITIGATION

The regular inspections noted above provide the Group with opportunities to
identify properties that may be at risk which would be considered for more
frequent inspections. Due diligence for purchases aims to identify properties
with higher than normal inherent risks for flooding or other water risks. We
explain more fully on page 16 of the 2022 ARA in our notes on TCFD how we
approach and handle climate related risks.

 

EMERGING RISK

As well as monitoring the incidence of currently identified risks we also look
for emerging trends in operations that could become active risks. In addition,
we carry out horizon scanning through our network of stakeholders, notably our
advisers, and also by reviewing published emerging risk reports. Where
emergent risks arise and are concluded to be relevant to Mountview's business
then when considering which risks, including climate risks, to include in our
framework we use the TRAP (Terminate; Reduce; Accept; Pass on) model to guide
our approach.

 

THE OVERALL RISK ENVIRONMENT

 

Given Mountview's business model and financial strength, while any risks
materialising could well have a negative impact on short term performance, and
lead to inconvenience, none are significant enough to threaten the continued
existence of the Group. We are confident that we can meet our strategic and
operational goals and in particular are in a strong position to take advantage
of purchasing opportunities as they arise. Risks are considered to be broadly
unchanged from 2021 with moderate assessments for both probability of
occurrence and impact. These principal risks were part of the Group's
assessment of long term viability, details of which are set out in the
viability statement on page 13 of the 2022 ARA.

 

RELATED PARTY TRANSACTIONS

The following is extracted from the 2022 ARA

 

1. During the financial year there were no key management personnel
emoluments, other than remuneration.

2. (a) Mountview Estates P.L.C. provides general management and administration
services to Ossian Investors Limited and Sinclair Estates Limited, companies
of which Mr D.M. Sinclair is a Director. Fees of £27,762 (2021: £34,800)
were charged for these services.

(b) Included within other loans repayable in less than one year and on demand
was a loan from Sinclair Estates Limited. The balance outstanding at the
balance sheet date was £NIL (2021: £537,444). Interest was payable on the
loan at 0.5%. Interest paid in the year on this loan amounted to £5,714
(2021: £2,960).

(c) Included within other loans repayable in less than one year and on demand
was a loan from Ossian Investors Limited. The balance outstanding at the
balance sheet date was £NIL (2021: £411,573). Interest was payable on the
loan at 0.5%. Interest paid in the year on this loan amounted to £1,634
(2021: £1,210).

(d) All of the above loans are unsecured.

(e) Transactions between the Group and its subsidiaries, which are related
parties, have been eliminated on consolidation and have not been disclosed in
this note.

(f) The only key management are the Directors.

(g) As at 31 March 2022 the Group owed Mr D.M. Sinclair £9,788 (2021:
£51,244) in relation to an informal loan.

 

 

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The following statement is extracted from the 2022 ARA

 

The Directors are responsible for preparing the Annual Report, the Directors'
Remuneration Report and the Group and Company financial statements in
accordance with applicable law and regulations.

 

Company law requires the Directors to prepare financial statements for each
financial year. Under that law, the Directors are required to prepare the
Group financial statements in accordance with UK adopted international
accounting standards and applicable UK law.

 

The Directors have elected to prepare the Company financial statements in
accordance with United Kingdom Generally Accepted Accounting Practice (UK
GAAP) including FRS 102 and applicable law.

Under company law, the Directors must not approve the financial statements
unless they are satisfied that they give a true and fair view of the state of
affairs of the Group and Company and of their profit or loss for that period.
In preparing these financial statements, the Directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• present information, including accounting policies, in a manner that
provides relevant, reliable, comparable and understandable information;

• in respect of Group financial statements, state whether UK adopted
international accounting standards have been followed, subject to any material
departures disclosed and explained in the Financial Statements;

• in respect of the Company financial statements state whether applicable UK
accounting standards have been followed, subject to any material departures
disclosed and explained in those statements; and

• prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the Group and the Company will continue in
business.

 

The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Company's transactions and disclose with
reasonable accuracy at any time the financial position of the Company and
enable them to ensure that its financial statements comply with the Companies
Act 2006. They have general responsibility for taking such steps as are
reasonably open to them to safeguard the assets of the Group and to prevent
and detect fraud and other irregularities.

 

The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company's website.
Legislation in the UK governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.

 

Each of the Directors, (as set out on page 20 of the 2022 ARA) as at the date
of this Report, confirms to the best of their knowledge that:

• The Financial Statements, prepared in accordance with the applicable set
of accounting standards, give a true and fair view of the assets, liabilities,
financial position and profit of the Group and the Company.

• The strategic report includes a fair review of the development and
performance of the business and the position of the Group and the Company,
together with a description of the principal risks and uncertainties that they
face.

• The annual report and financial statements, taken as a whole, are fair,
balanced and understandable and provide the information necessary for
shareholders to assess the Group's performance, business model and strategy.

 

~ ENDS ~

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