REG - Mountview Estates. - Half-year Report <Origin Href="QuoteRef">MTVW.L</Origin>

Mountview Estates P.L.C.Announcement

24/11/2016 07:05

RNS Number : 9635P
Mountview Estates PLC
24 November 2016
Mountview Estates P.L.C.
Interim Results
24 November 2016
MOUNTVIEW ESTATES P.L.C.
("Mountview" or "the Group" or "the Company")
UNAUDITED INTERIM RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER 2016
Mountview is pleased to announce its unaudited interim results for the six months ended 30 September 2016.
OUR PERFORMANCE
Turnover at 34.0 million down by 20.6% (2015 - 42.8m)
Gross profit at 24.1 million down by 14.8% (2015- 28.3m)
Profit before tax at 21.7 million down by 16.2% (2015 - 25.9m)
Earnings per share at 446.9 pence down by 15.8% (2015 - 531.0p)
Net assets per share at 83.4 up by 7.9% (2015 - 77.3)
DIVIDEND INFORMATION
Mountview Estates P.L.C. advises its shareholders that, following the issue of the interim results, the relevant dates in respect of the interim dividend payment of 200p per share are as follows:
Ex-dividend date 16 February 2017
Record date 17 February 2017
Payment date 27 March 2017
Chief Executive Officer's Statement
One must admit to a degree of disappointment when profits go down, but the Company remains financially sound. With these interim results comparing favourably with those of two years ago we may consider that we have survived quite well the fiscal measures enacted by the then Chancellor of the Exchequer before 1 April 2016.
TRADING
The legislation which was to be effective from 1 April caused an acceleration of transactions in March this year. These transactions would normally have completed in our new financial year, but their early completion resulted in a drop of over 20% in the number of transactions in the six months ended 30 September 2016. Turnover is down by 2.9 million compared with the half year ended 30 September 2014, but Gross Profit at 24.1 million is exactly the same. Profit before tax and earnings per share both compare favourably with those of two years ago and net assets per share have risen by 17.5%.
INTERIM DIVIDEND
The interim dividend is maintained at 200p per share in respect of the year ending 31 March 2017 and is payable on 27 March 2017 to shareholders on the Register of Members as at 17 February 2017.
CURRENT TRADING
Whilst fewer acquisitions have been made during the first six months they have been of higher average value with the exception of one outstanding life tenancy acquired during the six months ended 30 September 2015. Gearing remains at a comfortably modest level.
OUTLOOK
The reduction in base rate has helped but it was more about undoing the effects of legislation which came into effect on 1 April 2016 than any perceived effects of "Brexit". With the possibility of a more balanced attitude towards property taxation we can view the Company's prospects with equanimity.
D.M. SINCLAIR
Chief Executive Officer
24 November 2016
GROUP STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
for the half year ended 30 September 2016
Half year ended 30.09.2016
000
Half year 
ended
30.09.2015
000 
Year 
ended
31.03.2016
000
Revenue
34,047
42,769
79,765
Cost of Sales
(9,908)
(14,448)
(26,751)
Gross Profit 
24,139
28,321
53,014
Administrative expenses 
(1,930)
(2,010)
(5,148)
Gain on sale of investment properties
-
197
197
Operating profit before changes in
fair value of investment properties
22,209
26,508
48,063
Increase in fair value of investment properties
-
-
1,504
Profit from operations
22,209
26,508
49,567
Net finance costs
(482)
(606)
(1,179)
Profit before taxation
21,727
25,902
48,388
Taxation - current 
(4,356)
(5,400)
(9,593)
Taxation - deferred
54
202
(83)
Taxation
(4,302)
(5,198)
(9,676)
Profit attributable to equity Shareholders 
17,425
20,704
38,712
Basic and diluted earnings per share (pence)
446.9p
531.0p
992.9 p
All items within the consolidated income statement relate to continuing operations.
GROUP STATEMENT OF FINANCIAL POSITION (UNAUDITED)
for the half year ended 30 September 2016
Half year ended
Half year ended 
Year ended
30.09.2016
30.09.2015
31.03.2016
000
000
000
Assets
Non-current assets
Property, plant and equipment
1,878
1,954
1,911
Investment properties
29,698
27,896
29,448
31,576
29,850
31,359
Current assets
Inventories of trading properties
338,921
330,867
334,108
Trade and other receivables
1,559
1,760
1,720
Cash and cash equivalents
675
682
1,706
341,155
333,309
337,534
Total assets
372,731
363,159
368,893
Equity and liabilities 
Capital and reserves attributable 
to equity holders of the Company 
Share capital
195
195
195
Capital redemption reserve
55
55
55
Capital reserve
25
25
25
Other reserves
56
56
56
Retained earnings
324,947
301,211
311,421
325,278
301,542
311,752
Non-current liabilities
Long-term borrowings
35,600
49,600
39,700
Deferred tax
5,287
5,055
5,342
40,887
54,655
45,042
Current liabilities
Bank overdrafts and loans
1,467
991
3,625
Trade and other payables 
415
628
3,000
Current tax payable
4,684
5,343
5,474
6,566
6,962
12,099
Total liabilities
47,453
61,617
57,141
Total equity and liabilities
372,731
363,159
368,893
GROUP CASHFLOW STATEMENT (UNAUDITED)
for the half year ended 30 September 2016
Half year
Half year 
Year 
ended
ended
ended
30.09.2016
30.09.2015
31.03.2016
000
000
000
Cash flows from operating activities
Profit from operations
22,209
26,508
49,567
Adjustment for:
Depreciation
34
55
113
(Gain) on disposal of investment properties
-
(197)
(197)
(Increase) in fair value of investment properties 
-
-
(1,504)
Operating cash flows before movement
22,243
26,366
47,979
in working capital
(Increase) in inventories
(4,813)
(7,847)
(11,088)
Decrease in receivables
161
188
228
(Decrease)/Increase in payables 
(1,999)
(1,715)
657
Cash generated from operations
15,592
16,992
37,776
Interest paid
(482)
(606)
(1,179)
Income taxes paid
(5,147)
(1,633)
(5,693)
Net cash inflow from operating activities
9,963
14,753
30,904
Investing activities
Proceeds from disposal of investment properties
-
1,700
1,700
Capital expenditure on investment properties
(250)
-
(48)
Purchase of property, plant and equipment
(2)
(1)
(16)
Net cash inflow from investing activities
(252)
1,699
1,636
Cash flows from financing activities 
Repayment of borrowings
(4,100)
(10,649)
(20,725)
Equity dividend paid
(3,899)
(6,823)
(14,621)
Net cash (outflow) from financing activities 
(7,999)
(17,472)
(35,346)
Net increase/(decrease) in cash and cash equivalents
1,712
(1,020)
(2,806)
Opening cash and cash equivalents
(1,919)
887
887
Cash and cash equivalents at end of period
(207)
(133)
(1,919)
GROUPCONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
for the half year ended 30 September 2016
Half year
Half year
Year
ended 
ended
ended
30.09.2016
30.09.2015
31.03.2016
000
000
000
Shareholders' funds as at the beginning of the period 
311,752
287,661
287,661
Profit for the period
17,425
20,704
38,712
Dividends
(3,899)
(6,823)
(14,621)
Shareholders' funds at the end of the period
325,278
301,542
311,752
Notes to the Half Year Report
Basis of preparation
These condensed interim financial statements are unaudited and do not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. This condensed consolidated interim financial information has been prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and International Accounting Standard 34 (IAS 34) "Interim Financial Reporting" as adopted by the European Union. The interim condensed financial statements should be read in conjunction with the annual statements for the year ended 31 March 2016 which have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union.
The accounting policies used are consistent with those contained in the Group's last annual report and accounts for the year ended 31 March 2016.
The Group's published financial statements for the year ended 31 March 2016 have been reported on by the Group's auditors and filed with the Registrar of Companies. The report of the auditors was unqualified and did not contain any statement under Section 498 of the Companies Act 2006.
Basis of consolidation
The Group's financial statements incorporate the results of Mountview Estates P.L.C. and all of its subsidiary undertakings. Control is achieved where the Company has the power to govern the financial and operating policies of an investee enterprise so as to obtain benefits from its activities. The Group exercises control through voting rights.
On acquisition, the identifiable assets, liabilities and contingent liabilities of a subsidiary are measured at their fair values at the date of acquisition. The purchase method has been used in consolidating the subsidiary financial statements. 
All significant intercompany transactions and balances between Group enterprises are eliminated on consolidation within the consolidated accounts. Consistent accounting policies have been used across the Group.
Availability of the Half Year Report
Copies of this statement are being sent to Shareholders. Copies may be obtained from the Company's registered office or from the Company's website - www.mountviewplc.co.uk.
This announcement contains information which, prior to its disclosure, was inside information for the purposes of the Market Abuse Regulation.
~ Ends ~
For further information on the Company, visit:www.mountviewplc.co.uk
SPARK Advisory Partners Limited (Financial Adviser) www.sparkadvisorypartners.com 
Miriam Greenwood 0203 368 3553
Mark Brady 0203 368 3551

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