REG - Mountview Estates. - Publication of 2021 Annual Report & Notice of AGM

Mountview Estates P.L.C.Announcement

09/07/2021 07:00

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RNS Number : 7347E  Mountview Estates PLC  09 July 2021

Mountview Estates P.L.C.

Publication of 2021 Annual Report and Accounts

&

Notice of 2021 Annual General Meeting

Mountview Estates P.L.C. (the "Company") announces that the Annual Report and
Accounts for the year ended 31 March 2021 (the "2021 Annual Report &
Accounts") together with the 2021 Notice of Annual General Meeting (the "2021
AGM") will be posted to shareholders today, 9 July 2021, and will be able to
be downloaded from the Company's website 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) .

The Company's 2021 AGM will be held at Radisson Blu Edwardian Bloomsbury St.
Hotel, 9-13 Bloomsbury Street, London WC1B 3QD on  Wednesday, 11 August 2021
at 11.30am.

AGM arrangements

The Company currently intends to hold the 2021 AGM as a physical meeting.
Given the constantly evolving nature of the Covid-19 situation, shareholders
should consider whether it is appropriate to attend the 2021 AGM in person.
Shareholders are asked to pre-register their attendance in advance of the 2021
AGM and the Notice of 2021 AGM explains how shareholders can pre-register. The
Board will be closely monitoring the restrictions over public gatherings and
it will communicate any necessary changes.

Voting

The Board urges all shareholders to exercise their vote and submit their proxy
as soon as possible. Shareholders are strongly encouraged to appoint the
chairman of the meeting as their proxy with instructions as to how to cast
their vote on the resolutions proposed to ensure their vote is counted at the
meeting. The Notice of 2021 AGM explains how shareholders can submit their
proxy vote. 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 2021 AGM by submitting
questions or matters of concern in connection with the business of the 2021
AGM in advance. Any specific questions on the business of the 2021 AGM and on
the resolutions can be submitted by email to 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 31 July 2021 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 7 August 2021. The Notice of 2021 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 Directors' Responsibility Statement, contained in the
Appendix, is extracted from the 2021 Annual Report & Accounts and should
be read in conjunction with the Company's preliminary results announcement of
17 June 2021 which can be viewed on the Company's website at
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 3551

Appendix

PRINCIPAL RISKS AND UNCERTAINTIES

 

RISK REVIEW

In our 2020 Annual Report we specifically considered risk by risk the possible
impact that Covid-19 could have on the business. In the event, for the most
part these risks did not materialise and while initially there were delays
while other providers and professionals in our supply chains re-organised to
work within the restrictions placed by the Government's response to the virus,
once revised working process were established these delays were reduced. By
the end of the year the revised working practices introduced by the Group and
its suppliers meant that business activity was back up towards pre-pandemic
levels of performance. 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. Throughout we
have remained in contact with affected tenants to identify when there may be
changes that might permit non-essential works to be carried out and we are
hopeful that with the advent of the vaccines that we will be able to catch up
this backlog in the coming year.

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 Covid-19 in the 2021 Annual Report & Accounts. This
position will be kept under constant review.

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 replacing this
class of assets in the year ended 31 March 2021, with good purchasing again
during the year. The 'Analysis of Acquisitions' is contained in the 2021
Annual Report & Accounts.

2. MARKET

Risk

Weak macro-economic conditions - for example arising from bedding in of the
UK's trade deal with the EU or the longer term impact of Covid-19.

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 set out in the 2021 Annual Report & Accounts. Details of
the Group's current facilities are set out in Note 18 of the 2021 Annual
Report & Accounts.

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.

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 changing
weather patterns, including extreme weather events, that could lead to
increased wear and tear or other property damage.

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.

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.

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 2020 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 in the 2021
Annual Report & Accounts.

RELATED PARTY TRANSACTIONS

 

The following is extracted from the 2021 Annual Report & Accounts

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 £34,800
(2020: £33,100) 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 £537,444 (2020: £465,000). Interest was payable
on the loan at 0.5%. Interest paid in the year on this loan amounted to
£2,960 (2020: £3,260).

(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 £411,573 (2020: £100,000). Interest was payable
on the loan at 0.5%. Interest paid in the year on this loan amounted to
£1,210 (2020: £310).

(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 2021 the Group owed Mr D.M. Sinclair £51,244 (2020:
£38,133) in relation to an informal loan.

 

 

DIRECTORS' RESPONSIBILITY STATEMENT

The following statement is extracted from the 2021 Annual Report &
Accounts

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 International Accounting
Standards in conformity with the requirements of the Companies Act 2006 and
International Financial Reporting Standards (IFRSs) adopted pursuant to
Regulation (EC) No 1606/2002 as it applies in the European Union.

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
they have been prepared in accordance with IFRSs as adopted by the EU;

·          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 United Kingdom governing the preparation and dissemination
of Financial Statements may differ from legislation in other jurisdictions.

Each of the Directors, whose names and functions are set out on page 17 of the
2021 Annual Report & Accounts, 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.

 

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