REG - Mountview Estates. - Unaudited Interim Results for 6m ended 30 Sep 2021
25/11/2021 08:20
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RNS Number : 5848T Mountview Estates PLC 25 November 2021
Mountview Estates P.L.C.
Interim Results
25 November 2021
MOUNTVIEW ESTATES P.L.C.
("Mountview" or "the Group" or "the Company")
UNAUDITED INTERIM RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER 2021
Mountview is pleased to announce its unaudited interim results for the six
months ended 30 September 2021.
OUR PERFORMANCE
Turnover at £30.7 million up by 36.4% (2020 - £22.5m)
Gross profit at £18.0 million up by 12.5% (2020 - £16.0m)
Profit before tax at £15.6 million up by 15.5% (2020 - £13.5m)
Earnings per share at 290.3 pence up by 3.5% (2020 - 280.4p)
Net assets per share at £101.9 up by 3.8% (2020 - £98.2)
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 exceptional interim
dividend payment of 500p per share (which includes a special dividend of 275p
per share) are as follows:
Ex-dividend date 17 February 2022
Record date 18 February 2022
Payment date 28 March 2022
CHIEF EXECUTIVE OFFICER'S STATEMENT
At the Annual General Meeting held on 11 August 2021 those shareholders deemed
to be independent exercised their right to reject the re-election of Mr.
Anthony Powell and Ms. Mhairi Archibald as independent Non-Executive
Directors. At the General Meeting held in accordance with the Listing Rules of
the Financial Conduct Authority on 22 November 2021, when all shareholders
were entitled to vote, it was resolved to re-elect Mr. Anthony Powell and Ms.
Mhairi Archibald as Directors of the Company. Thus the status quo is
maintained.
TRADING
Brexit and Covid-19 have dominated the economic commentary this year and the
Government have announced the impending tax increases by which they will seek
to recover the vast sums of money which they made available to keep the
country afloat. This Company is perhaps fortunate to be trading in a sector
that has not been heavily affected by the problems that have beset others and
our years of financial prudence have enabled us to continue to make good
profits.
Our year ending 31 March 2021 finished with a flourish because all the
auctioneers held extra sales in anticipation of the stamp duty holiday
finishing at 31 March 2021.
This year may have started quietly but the stamp duty holiday was extended and
phased out gently so that sales activity continues strongly.
The results to 30 September 2021 are heavily influenced by the need to provide
for deferred taxation at 25%, the rate of Corporation Tax which is to be
levied from 1 April 2023. I must emphasize that this taxation only becomes
payable following the disposal of the assets concerned and thus the necessary
funding will have been generated and this anticipated taxation has no effect
on present cash flow.
I am happy to repeat again that we have not furloughed any staff or reduced
staff numbers in any other way. The Company has generated strong cash flow
and we are thus in a good position to shield ourselves from the difficult
times that may lie ahead. I believe that this should include not only our
shareholders but also our workforce whose hard work, loyalty and dedication
makes all this possible.
EXCEPTIONAL INTERIM DIVIDEND
The interim dividend is at an exceptional rate of 500p per share in respect of
the year ending 31 March 2022 and is payable on 28 March 2022 to shareholders
on the Register of Members as at 18 February 2022. This represents an
increased interim dividend of 225p per share and a special dividend of 275p
per share. Please note that this will be made as one payment of 500p per
share. The Board believes a special dividend to be warranted this year because
of exceptional cash flow and this puts us in position to not only pay this
special dividend and all our regular outgoings but also to be able to take
advantage of any purchasing opportunities that may arise. It is not
anticipated that this interim dividend will limit the final dividend payable
in August 2022 in any way, but it would be prudent to presume that the interim
dividend payable in March 2023 will be maintained at the new increased level
of 225p per share.
OUTLOOK
Good purchases are vital to the future prosperity of the Company and our
financial strength will enable us to compete when good opportunities occur.
We have a long and successful history and we are all working hard for that to
continue.
D.M. SINCLAIR
Chief Executive Officer
25 November 2021
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
for the half year ended 30 September 2021
Half year ended Half year ended Year ended
30.09.2021 30.09.2020 31.03.2021
£000 £000 £000
Revenue 30,711 22,450 65,730
Cost of Sales (12,754) (6,477) (22,508)
Gross Profit 17,957 15,973 43,222
Administrative expenses (2,205) (2,168) (5,865)
Gain on sale of investment properties 53 - -
Operating profit before changes in
fair value of investment properties 15,805 13,805 37,357
Increase in fair value of investment properties - - 1,452
Profit from operations 15,805 13,805 38,809
Net finance costs (181) (319) (675)
Profit before taxation 15,624 13,486 38,134
Taxation - current (3,062) (2,555) (6,966)
Taxation - deferred (1,242) - (275)
Taxation (4,304) (2,555) (7,241)
Profit attributable to equity shareholders and total comprehensive income 11,320 10,931 30,893
Basic and diluted earnings per share (pence) 290.3p 280.4p 792.3p
All items within the consolidated statement of comprehensive income relate to
continuing operations.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
for the half year ended 30 September 2021
Half year ended Half year ended Year ended
30.09.2021 30.09.2020 31.03.2021
£000 £000 £000
Assets
Non-current assets
Property, plant and equipment 1,576 1,638 1,606
Investment properties 25,007 24,122 25,574
26,583 25,760 27,180
Current assets
Inventories of trading properties 394,921 409,295 398,166
Trade and other receivables 1,298 1,825 1,417
Cash and cash equivalents 1,012 608 597
397,231 411,728 400,180
Total assets 423,814 437,488 427,360
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 397,087 382,376 394,540
397,418 382,707 394,871
Non-current liabilities
Long-term borrowings 15,500 44,700 20,600
Deferred tax 5,593 4,076 4,351
21,093 48,776 24,951
Current liabilities
Bank overdrafts and other short term loans 1,497 3,011 1,280
Trade and other payables 1,032 528 2,142
Current tax payable 2,774 2,466 4,116
5,303 6,005 7,538
Total liabilities 26,396 54,781 32,489
Total equity and liabilities 423,814 437,488 427,360
CONSOLIDATED CASHFLOW STATEMENT (UNAUDITED)
for the half year ended 30 September 2021
Half year Half year Year
ended ended ended
30.09.2021 30.09.2020 31.03.2021
£000 £000 £000
Cash flows from operating activities
Profit from operations 15,805 13,805 35,809
Adjustment for:
Depreciation 30 32 64
(Gain) on sale of investment properties (53) - -
(Increase) in fair value of investment properties - - (1,452)
Operating cash flows before movement in working capital 15,782 13,837 37,421
Decrease/(Increase) in inventories 3,245 (17,226) (6,097)
Decrease in receivables 119 1,851 2,259
(Decrease) in payables (1,110) (4,302) (2,688)
Cash generated from operations 18,036 (5,840) 30,895
Interest paid (181) (319) (675)
Income taxes paid (4,404) (3,539) (6,300)
Net cash Inflow/(Outflow)from operating activities 13,451 (9,698) 23,920
Investing activities
Proceeds from disposal of investment properties 620 - -
Net cash inflow from investing activities 620 - -
Cash flows from financing activities
(Repayment)/Increase of borrowings (4,552) 13,381 (10,116)
Equity dividend paid (8,773) (7,798) (15,596)
Net cash (Outflow)/Inflow from financing activities (13,325) 5,583 (25,712)
Net Increase/(Decrease) in cash and cash equivalents 746 (4,115) (1,792)
Opening cash and cash equivalents 266 2,058 2,058
Cash and cash equivalents at end of period 1,012 (2,057) 266
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
for the half year ended 30 September 2021
Half year Half year Year
ended ended ended
30.09.2021 30.09.2020 31.03.2021
£000 £000 £000
Shareholders' funds as at the beginning of the period 394,871 379,574 379,574
Profit for the period 11,320 10,931 30,893
Dividends (8,773) (7,798) (15,596)
Shareholders' funds at the end of the period 397,418 382,707 394,871
Notes to the Half Year Report
Basis of preparation
These condensed consolidated interim financial statements have been prepared
in accordance with the Disclosure and Transparency Rules of the Financial
Conduct Authority and in accordance with UK adopted International Accounting
Standard 34 (IAS 34) "Interim Financial Reporting". The condensed consolidated
interim financial statements should be read in conjunction with the annual
financial statements for the year ended 31 March 2021 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 2021.
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 made up to the reporting date.
Subsidiaries are fully consolidated from the date on which control is
transferred to the Group.
Control is recognised when the Group is exposed to, or has rights to, variable
returns from its investment in the entity and has the ability to affect these
returns through its power over the relevant activities of the entity.
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 and unrealised gains on
transactions between Group companies 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 2021 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.
The condensed consolidated interim financial statements were approved by the
Board of Directors on 25 November 2021. 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 (http://www.mountviewplc.co.uk) .
This announcement contains inside information as stipulated under the UK
version of the Market Abuse Regulation No 596/2014 which is part of English
Law by virtue of the European (Withdrawal) Act 2018, as amended. On
publication of this announcement via a Regulatory Information Service, this
information is considered to be in the public domain.
~ Ends ~
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