REG - Mountview Estates. - Half-year Report
Mountview Estates P.L.C.
Interim Results
22 November 2018
MOUNTVIEW ESTATES P.L.C.
("Mountview" or "the Group" or "the Company")
UNAUDITED INTERIM RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER
2018
Mountview is pleased to announce its unaudited interim results for the six months ended 30 September 2018
OUR PERFORMANCE
Turnover at £30.2 million down by 8.5% (2017 - £33.0m)
Gross profit at £18.6 million down by 10.6% (2017 - £20.8m)
Profit before tax at £15.9 million down by 13.6% (2017 - £18.4m)
Earnings per share at 329.9 pence down by 13.5% (2017 - 381.3 p)
Net assets per share at £92.2 up by 3.5% (2017 - £89.1)
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 14 February 2019
Record date 15 February 2019
Payment date 25 March 2019
Chief Executive Officer's Statement
At the Annual General Meeting held on 8 August 2018 those shareholders deemed to be independent exercised their right to reject the re-appointment of Mr Anthony Solway and the election of Mr Anthony Powell as independent non-executive directors. At the General Meeting held in accordance with the UKLA Listing Rules on 19 November 2018, when all shareholders were entitled to vote, it was resolved to re-appoint Mr Anthony Solway and elect Mr Anthony Powell as directors of the Company. Thus the status quo is maintained.
TRADING
The uncertainty surrounding Brexit of which I wrote last year will continue until 29 March 2019 at the earliest. Whilst the Company conducts its business entirely within the borders of the United Kingdom, it cannot escape the overall effect of these uncertainties. During the six months ended 30 September 2018 fewer of our properties have come vacant and sales take longer to complete during uncertain times.
Consequently it is no surprise that the figures of Our Performance on the previous page are all down with the exception of a modest increase in net assets per share. We have continued to make good purchases during the six months ended 30 September 2018 and with low gearing the Company remains financially sound.
INTERIM DIVIDEND
The interim dividend is maintained at 200p per share in respect of the year ending 31 March 2019 and is payable on 25 March 2019 to shareholders on the Register of Members as at 15 February 2019.
OUTLOOK
With continuing good purchases and sound finances the Company is well placed to take advantage when the economy settles down and the Brexit uncertainties have been banished.
D.M. SINCLAIR
Chief Executive Officer
22 November 2018
GROUP STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
for the half year ended 30 September 2018
Half year ended 30.09.2018
£000
Half year
ended
30.09.2017
£000
Year
ended
31.03.2018
£000
Revenue
30,166
33,027
70,272
Cost of Sales
(11,592)
(12,257)
(26,915)
Gross Profit
18,574
20,770
43,357
Administrative expenses
(2,112)
(2,141)
(5,507)
Gain on sale of investment properties
-
-
145
Operating profit before changes in
fair value of investment properties
16,462
18,629
37,995
(Decrease) in fair value of investment properties
-
-
(376)
Profit from operations
16,462
18,629
37,619
Net finance costs
(566)
(270)
(714)
Profit before taxation
15,896
18,359
36,905
Taxation - current
(3,034)
(3,499)
(7,197)
Taxation - deferred
-
7
173
Taxation
(3,034)
(3,492)
(7,024)
Profit attributable to equity Shareholders
12,862
14,867
29,881
Basic and diluted earnings per share (pence)
329.9p
381.3p
766.4p
All items within the consolidated income statement relate to continuing operations.
GROUP STATEMENT OF FINANCIAL POSITION (UNAUDITED)
for the half year ended 30 September 2018
Half year ended
Half year ended
Year ended
30.09.2018
30.09.2017
31.03.2018
£000
£000
£000
Assets
Non-current assets
Property, plant and equipment
1,741
1,803
1,771
Investment properties
27,825
28,741
27,825
29,566
30,544
29,596
Current assets
Inventories of trading properties
378,173
346,467
376,879
Trade and other receivables
1,726
4,119
1,859
Cash and cash equivalents
825
1,261
5,368
380,724
351,847
384,106
Total assets
410,290
382,391
413,702
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
359,195
346,916
354,131
359,526
347,247
354,462
Non-current liabilities
Long-term borrowings
39,900
22,700
49,900
Deferred tax
4,696
4,862
4,696
44,596
27,562
54,596
Current liabilities
Bank overdrafts and loans
2,425
3,430
463
Trade and other payables
734
692
1,843
Current tax payable
3,009
3,460
2,338
6,168
7,582
4,644
Total liabilities
50,764
35,144
59,240
Total equity and liabilities
410,290
382,391
413,702
GROUP CASHFLOW STATEMENT (UNAUDITED)
for the half year ended 30 September 2018
Half year
Half year
Year
ended
ended
ended
30.09.2018
30.09.2017
31.03.2018
£000
£000
£000
Cash flows from operating activities
Profit from operations
16,462
18,629
37,619
Adjustment for:
Depreciation
30
32
66
(Gain) on sale of investment properties
-
-
(145)
Decrease in fair value of investment properties
-
-
376
Operating cash flows before movement in working capital
16,492
18,661
37,916
(Increase)/Decrease in inventories
(1,294)
913
(29,499)
Decrease/(Increase) in receivables
133
(2,506)
(246)
(Decrease) in payables
(1,109)
(1,259)
(108)
Cash generated from operations
14,222
15,809
8,063
Interest paid
(566)
(270)
(714)
Income taxes paid
(2,363)
(5,293)
(10,110)
Net cash inflow /(outflow)from operating activities
11,293
10,246
(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 flows from financing activities
(Repayment)/Increase in borrowings
(9,875)
(6,867)
20,483
Equity dividend paid
(7,798)
(3,899)
(11,698)
Net cash (outflow)/inflow from financing activities
(17,673)
(10,766)
8,785
Net (decrease)/increase in cash and cash equivalents
(6,380)
(520)
6,705
Opening cash and cash equivalents
5,368
(1,337)
(1,337)
Cash and cash equivalents at end of period
(1,012)
(1,857)
5,368
GROUP CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
for the half year ended 30 September 2018
Half year
Half year
Year
ended
ended
ended
30.09.2018
30.09.2017
31.03.2018
£000
£000
£000
Shareholders' funds as at the beginning of the period
354,462
336,279
336,279
Profit for the period
12,862
14,867
29,881
Dividends
(7,798)
(3,899)
(11,698)
Shareholders' funds at the end of the period
359,526
347,247
354,462
Notes to the Half Year Report
Basis of preparation
These condensed interim financial statements have 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 condensed interim financial statements should be read in conjunction with the annual statements for the year ended 31 March 2018 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 2018.
The Directors have reviewed the current and projected financial position of the Group and are satisfied that the Group has adequate resources to cover current liabilities. Therefore the Directors continue to adopt the going concern basis in preparing the half year report.
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.
Status of the interim financial information
These condensed consolidated interim financial statements are unaudited and do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The Group's published financial statements for the year ended 31 March 2018 have been reported on by the Group's auditors and filed with the Registrar of Companies. The report of the auditors 2018 was unqualified and did not contain any statement under Section 498 of the Companies Act 2006.
The consolidated interim financial statements were approved by the Board of Directors on 19 November 2018. The preparation of the interim financial information requires management to make assumptions and estimates about future events which are uncertain, the actual outcome of which may result in a materially different outcome from that anticipated.
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 Advisor) www.sparkadvisorypartners.com
Miriam Greenwood 0203 368 3553
Mark Brady 0203 368 3551
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.ENDIR LIFLALRLFFIT
Recent news on Mountview Estates P.L.C.
See all newsREG - Mountview Estates. - Update on General Meeting voting outcome
AnnouncementREG - Mountview Estates. - Directorate change – Contract Extension
AnnouncementREG - Mountview Estates. - Director/PDMR Shareholdings
AnnouncementREG - Mountview Estates. - Director/PDMR Shareholding
AnnouncementREG - Mountview Estates. - Update on 2024 Annual General Meeting outcome
Announcement