REG - Mountview Estates. - Preliminary Results - year ended 31 March 2020

Mountview Estates P.L.C.Announcement

18/06/2020 07:01

RNS Number : 2943Q
  
Mountview Estates PLC
  
18 June 2020
  
 

MOUNTVIEW ESTATES P.L.C.
 
Preliminary Results for the year ended 31 March 2020
 
CHIEF EXECUTIVE OFFICER'S STATEMENT
 
When I wrote this statement last year I drew attention to the fact that the British People voted to leave the European Union on 23 June 2016 but every statement that I had written since then has been conscious of the uncertainties that continue pending the conclusion of our withdrawal.
Happily on 12 December 2019 Boris Johnson was elected with a big majority that enabled us to leave the European Union on 31 January 2020 but the details of the withdrawal will not be certain until 31 December 2020.
Now added to these uncertainties are the Covid-19 constraints the effects of which I will review later in this statement.  The financial year under review ended on 31 March 2020 and the lockdown was not imposed until within ten days of that date.  Given the time-lag on transactions in the property business it is fair to assume that any deal that was to conclude within those few days was already under contract before the constraints were imposed.
I believe that the trading results for the year ended 31 March 2020 were not influenced by the Covid-19 pandemic and that any influence or effects should be considered as post balance sheet events.
The headline figures in respect of our financial performance for the year ended 31 March 2020 are detailed under the heading "Financial Highlights" below.  Whilst Revenue has dropped by a very modest amount all the other performance indicators have shown an upward trend.  Gearing has fallen from 11.3% to 7.2% and thus we are in an even stronger position to make the purchases which are essential to the future of the Company.  Indeed we have made some good purchases in our new financial year.
The final dividend is maintained at 200 pence per share and is payable on 17 August 2020 subject to approval at the Annual General Meeting on 12 August 2020.  This will keep the total annual dividend at 400 pence per share which is slightly more generously covered 1.75 times than it was last year.
And now I inevitably turn to "Stay Home, Protect the N.H.S., Save Lives" or as expressed more recently "Stay Alert, Control the Virus, Save Lives".
Our colleague Andrew Williams is a doctor and it would be wrong not to express our admiration for his unstinting work on the front line.  Well done and thank you, Andrew!
We have had to adapt to new ways of running the office and I think that we have done so quite effectively.  Those of us who can work from home do so and the office is staffed on a rota basis so that we are able to maintain social distancing and still serve our customers appropriately.  Over 80% of our rents are paid directly into the bank and regulated rents are set at a modest level.  Provided tenants pay their rent they have absolute security of tenure and a significant number have help from social services.
Auctions are now all conducted remotely and the auctioneers are becoming more successful at replicating the ballroom atmosphere.  So far this financial year we have been happy in the auction room both in terms of sale prices achieved and the prices at which we have been able to make purchases.  Nobody can pretend that life is normal but our staff are coping very well.
We have not had to furlough any staff or reduce staff numbers in any other way and I remain confident that our years of financial prudence will enable us to continue to conduct the business successfully and to maintain our dividend payments.  Whilst I thank my staff and colleagues for their hard work, loyalty and expertise in producing increased profits for the year ended 31 March 2020 I thank them also for the willingness and good humour with which they are adapting to the strange circumstances in which we are finding ourselves.
I look forward to writing this statement in more normal times next year.
 
Duncan Sinclair
18 June 2020
 
 
 
MOUNTVIEW ESTATES P.L.C.
FINANCIAL HIGHLIGHTS
 




 


 


 


 
   2020


 


 
2019


 


 
(Decrease)/Increase




 


 


 


£


 


£


 


%




 


 


 


 


 


 


 


 




Revenue (millions)


 


 


64.9


         


65.4


 


(0.8)
 




 


 


 


 


 


 


 


 




Gross Profit (millions)


 


 


41.4


 


40.8


 


1.5
 




 


 


 


 


 


 


 


 




Profit Before Tax (millions)


 


 


34.9


 


34.6


 


0.9




 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 




Profit Before Tax excluding investment properties revaluation (millions)


 


 


35.9
 


 


34.3


 


4.7




 


 


 


 


 


 


 


 




Equity Holders' Funds (millions)


 


 


379.6


 


366.9


 


3.5




 


 


 


 


 


 


 


 




Earnings per share (pence)


 


 


725.7


 


718.3


 


1.0




 


 


 


 


 


 


 


 




Net assets per share (£)


 


 


97.4


   


94.1


 


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
 


 9 July 2020




Record date


 10 July 2020
 




Payment date


17 August 2020




 
 
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2020
  




 


Year


 


Year




 


ended


 


ended




 


31.03.2020


 


31.03.2019




 


£'000


 


£'000




 


 


 


 




REVENUE


64,873


 


65,428




 


 


 


 




Cost of sales


(23,519)


 


(24,627)




 


 


 


 




GROSS PROFIT


41,354


 


40,801




 


 


 


 




Administrative expenses


(5,630)


 


(5,442)




Gain on sale of investment properties


1,174


 


-




 


 


 


 




Operating profit before changes in
fair value of investment properties


36,898


 


35,359




 


 


 


 




(Decrease)/Increase in fair value of investment  properties


(969)


 


287




 


 


 


 




PROFIT FROM OPERATIONS


35,929


 


35,646




 


 


 


 




Net finance costs


(988)


 


(1,079)




 


 


 


 




PROFIT BEFORE TAXATION


34,941


 


34,567




 


 


 


 




Taxation - current


(7,320)


 


(6,504)




Taxation - deferred


675


 


(55)




 


 


 


 




Taxation


(6,645)


 


(6,559)




 


 


 


 




PROFIT ATTRIBUTABLE TO EQUITY SHAREHOLDERS


28,296


 


28,008




 


 


 


 




Basic and diluted earnings per share (pence)


725.7p


 


718.3p




 
  
 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 31 MARCH 2020




 


 


As at


As at




 


 


31.03.2020


31.03.2019




 


 


£'000


£'000




ASSETS


 


 


 




NON-CURRENT ASSETS


 


 


 




Property, plant and equipment


 


 1,670


1,710   




Investment properties


 


24,122


28,112




 


 


 


 




 


 


25,792


29,822




CURRENT ASSETS


 


 


 




Inventories of trading properties


 


392,069


392,384




Trade and other receivables


 


3,676


1,915




Cash at bank


 


3,553


1,981




 


 


 


 




 


 


399,298


396,280




 


 


 


 




TOTAL ASSETS


 


425,090


426,102




 


 


 


 




EQUITY AND LIABILITIES


 


 


 




Share capital


 


195


195




Capital redemption reserve


 


55


55




Capital reserve


 


25


25




Other reserve


 


56


56




Retained earnings


 


379,243


366,543




 


 


 


 




 


 


379,574


366,874




 


 


 


 




NON-CURRENT LIABILITIES


 


 


 




Long-term borrowings


 


  31,100


47,250




Deferred tax


 


4,076


  4,751




 


 


 


 




 


 


  35,176


52,001




 


 


 


 




CURRENT LIABILITIES


 


 


 




Bank overdrafts and short-term loans


 


2,060


1,250




Trade and other payables


 


4,830


2,812




Current tax payable


 


3,450


3,165




 


 


 


 




 


 


10,340


7,227




 


 


 


 




TOTAL LIABILITIES


 


45,516


59,228




 


 


 


 




TOTAL EQUITY AND LIABILITIES


 


425,090


426,102




 
 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2020
 
 






 


 


 


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




 


 


 


 


 


 


 




 
 




 


 


 


Capital


 


 


 




 


Share


Capital


Redemption


Other


Retained


 




 


Capital


Reserve


Reserve


Reserves


Earnings


Total




 


£'000


£'000


£'000


£'000


£'000


£'000




 


 


 


 


 


 


 




 


 


 


 


 


 


 




Balance as at 1 April 2019


195


25


55


56


366,543


366,874




 


 


 


 


 


 


 




Profit for the year


 


 


 


 


28,296


28,296




 


 


 


 


 


 


 




Dividends


 


 


 


 


(15,596)


(15,596)




 


 


 


 


 


 


 




Balance as at 31 March 2020


195


25


55


56


379,243


379,574




 


 


 


 


 


 


 




 
 
GROUP CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2020
 
 




 


 


 


Year


 


Year




 


 


 


ended


 


Ended




 


 


 


31.03.2020


 


31.03.2019




 


 


 


£'000


 


£'000




Cash flow from operating activities


 


 


 


 


 




 


 


 


 


 


 




Operating profit  


 


 


35,929


 


35,646




Adjustment for:


 


 


 


 


 




Depreciation


 


 


64


 


61




 


 


 


 


 


 




(Gain) on disposal of investment properties


 


 


(1,174)


 


-




Decrease/(Increase) in fair value of investment properties


 


 


969


 


(287)
 




Cash flow from operations before changes in working capital 


 


 


35,788


 


35,420




 


 


 


 


 


 




Decrease/(Increase) in inventories


 


 


315


 


(15,505)




(Increase) in receivables


 


 


(1,761)


 


(56)




Increase in payables


 


 


2,018


 


969




Cash generated from operations


 


 


36,360


 


20,828




 


 


 


 


 


 




Interest paid


 


 


(988)


 


(1,079)




Income taxes paid


 


 


(7,035)


 


(5,677)




 


 


 


 


 


 




Net cash inflow from operating activities


 


 


28,337


 


14,072




 


 


 


 


 


 




Investing activities


 


 


 


 


 




Proceeds from disposal of investment properties


 


 


4,195


 


-




Purchase of property, plant and equipment


 


 


(24)


 


-




 


 


 


 


 


 




Net cash inflow from investing activities


 


 


4,171


 


-




 


 


 


 


 


 




Cash flow from financing activities


 


 


 


 


 




(Repayment) of borrowings


 


 


(16,835)


 


(1,863)




Equity dividend paid


 


 


(15,596)


 


(15,596)




 


 


 


 


 


 




Net cash (outflow) from financing activities


 


 


(32,431)


 


(17,459)




 


 


 


 


 


 




Net Increase/(decrease) in cash and cash equivalents


 


 


77


 


(3,387)




 


 


 


 


 


 




 
Opening cash and cash equivalents
 


 


 


 
1,981


 


 
5,368




Cash and cash equivalents at the end of the year


 


 


2,058


 


1,981




 
 
2020 Annual General Meeting (AGM)  
In light of ongoing restrictions imposed by the UK Government in response to the COVID-19 pandemic, which may continue to prohibit, amongst other things, non-essential travel and certain public gatherings, it is possible that the AGM will be a closed meeting with the minimum necessary quorum of two shareholders present in order to conduct the business of the meeting. 
Shareholders will be updated closer to the AGM on whether or not attendance is permitted. Details of the AGM will be included in the Notice of AGM set out in the 2019/20 Annual Report and Accounts that will be sent to shareholders at a date to be announced in due course. 
 
 
 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 2020 and 31 March 2019, but represents extracts from them.
The statutory accounts for the financial year ended 31 March 2019 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 2020 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 12 August 2020.
 
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 2020 AGM are expected to comply fully with IFRS.
 
 ~ Ends ~
 
This announcement contains information which, prior to its disclosure, was inside information for the purposes of the Market Abuse Regulation.
 
  
For further information on the Company, visit: www.mountviewplc.co.uk 
 
SPARK Advisory Partners Limited (Financial Adviser) www.sparkadvisorypartners.com 




Mark Brady


020 3368 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.
 
  END
 
 
FR FLFIDRDIDLII