Source - LSE Regulatory
RNS Number : 6291G
Mountview Estates PLC
26 November 2020
 

 

Mountview Estates P.L.C.

Interim Results

26 November 2020

 

 

MOUNTVIEW ESTATES P.L.C.

 

("Mountview" or "the Group" or "the Company")

 

UNAUDITED INTERIM RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER 2020

 

Mountview is pleased to announce its unaudited interim results for the six months ended 30 September 2020.

 

 

OUR PERFORMANCE

 

Turnover at £22.5 million down by 24.7% (2019 - £29.9m)

 

Gross profit at £16.0 million down by 16.2% (2019 - £19.1m)

 

Profit before tax at £13.5 million down by 22.4% (2019 - £17.4m)

 

Earnings per share at 280.4 pence down by 22.4% (2019 - 361.1p)

 

Net assets per share at £98.2 up by 2.6% (2019 - £95.7)

 

 

 

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        18 February 2021

 

Record date                19 February 2021

 

Payment date              29 March 2021

 

 

 

 

 

 

CHIEF EXECUTIVE OFFICER'S STATEMENT

 

At the Annual General Meeting held on 12 August 2020 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 23 November 2020, 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 is nearly with us so it is probably appropriate that my next comments on this subject are made next July when we can consider the effects of whatever takes place from the beginning of January 2021.

It is Covid-19 which dominates everything worldwide and has influenced the figures that we are able to present in this Half Year Report.  I am happy that I can repeat that we have not had to furlough any staff or reduce staff numbers in any other way and that 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.

The first lockdown started shortly before the beginning of our financial year and had the effect of delaying the procedures that are necessary to bring a vacant property to market.  This delay was about a month or six weeks and is commensurate with our fall in turnover.  In so far as we have all become accustomed to coping with the present circumstances I am hopeful that the delays may even lessen as time goes on.

We have already made substantial purchases this year and our financial stability puts us in position to make further purchases if the opportunities arise.

INTERIM DIVIDEND

The interim dividend is maintained at 200p per share in respect of the year ending 31 March 2021 and is payable on 29 March 2021 to shareholders on the Register of Members as at 19 February 2021.

OUTLOOK

It is good purchases that will contribute so much to the future prosperity of the Company and it is in difficult times that our financial prudence gives us the ability to take advantage of exceptional opportunities that may arise.

 

D.M. SINCLAIR

Chief Executive Officer

26 November 2020

 

 

 

 

 

 

 

 

 

 



 

GROUP STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

for the half year ended 30 September 2020

 

 


Half year ended 30.09.2020

£000

Half year

ended

30.09.2019

£000

Year

ended

31.03.2020

£000









Revenue

22,450

29,921

64,873





Cost of Sales

  (6,477)

(10,821)

   (23,519)





Gross Profit

15,973

19,100

41,354





Administrative expenses                                                      

(2,168)

(2,247)

(5,630)

 

 




Gain on sale of investment properties

-

1,174

1,174





Operating profit before changes in




fair value of investment properties

13,805

18,027

36,898





Decrease in fair value of investment properties

-

-

(969)





Profit from operations

13,805

18,027

35,929

 

Net finance costs

(319)

(590)

 

(988)





Profit before taxation

13,486

17,437

34,941





Taxation - current

(2,555)

(3,854)

(7,320)

Taxation - deferred

           -

          495

           675





Taxation

(2,555)

(3,359)

(6,645)





Profit attributable to equity Shareholders  

10,931

14,078

28,296





Basic and diluted earnings per share (pence)

280.4p

361.1p

725.7p





 

 

 

All items within the consolidated income statement relate to continuing operations.

 

 



 

GROUP STATEMENT OF FINANCIAL POSITION (UNAUDITED)

for the half year ended 30 September 2020

 

 


Half year ended

Half year ended

Year ended


30.09.2020

30.09.2019

31.03.2020


£000

£000

£000

Assets




Non-current assets




Property, plant and equipment

1,638

1,700

1,670

Investment properties

24,122

25,091

24,122


25,760

26,791

25,792

 





Current assets




Inventories of trading properties

409,295

392,454

392,069

Trade and other receivables

1,825

2,032

3,676

Cash and cash equivalents

608

            639

3,553


411,728

395,125

399,298









Total assets

437,488

421,916

425,090





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

382,376

372,823

379,243


382,707

373,154

379,574





Non-current liabilities




Long-term borrowings

44,700

38,700

31,100

Deferred tax

4,076

4,256

4,076


48,776

42,956

35,176





Current liabilities




Bank overdrafts and other short term loans

3,011

1,255

2,060

Trade and other payables 

528

783

4,830

Current tax payable

2,466

3,768

3,450


6,005

5,806

10,340









Total liabilities

54,781

48,762

45,516





Total equity and liabilities

437,488

421,916

425,090

 

 

 

GROUP CASHFLOW STATEMENT (UNAUDITED)

for the half year ended 30 September 2020

 

 



Half year

Half year

Year



ended

ended

ended



30.09.2020

30.09.2019

31.03.2020



£000

£000

£000

Cash flows from operating activities










Profit from operations


13,805

18,027

35,929

Adjustment for:





Depreciation


32

 

38

64

 

(Gain) on sale of investment properties


-

(1,174)

(1,174)

Decrease in fair value of investment properties

          

  

-

 

-

 

969






Operating cash flows before movement in working capital


13,837

16,891

35,788











(Increase)/Decrease in inventories


(17,226)

(70)

315

Decrease/(Increase) in receivables


1,851

(117)

(1,761)

(Decrease)/Increase in payables


(4,302)

(2,029)

2,018






Cash generated from operations


(5,840)

14,675

36,360






Interest paid


(319)

(590)

(988)

Income taxes paid


(3,539)

(3,251)

(7,035)






Net cash (Outflow)/Inflow from operating activities


(9,698)

10,834

28,337

Investing activities





Proceeds from disposal of investment properties


-

4,195

4,195

Purchase of property, plant and equipment


-

(28)

(24)






Net cash inflow from investing activities


-

4,167

4,171






 

Cash flows from financing activities










Increase/(Repayment) of borrowings


13,381

(8,545)

(16,835)

Equity dividend paid


(7,798)

(7,798)

(15,596)






Net cash Inflow/(Outflow) from financing activities


5,583

(16,343)

(32,431)






Net (Decrease)/Increase in cash and cash equivalents


(4,115)

(1,342)

77






Opening cash and cash equivalents


2,058

1,981

1,981






Cash and cash equivalents at end of period


(2,057)

639

           2,058






 

 

 

 

GROUP CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

for the half year ended 30 September 2020

 

 

 


Half year

Half year

Year


ended

ended

ended


30.09.2020

30.09.2019

31.03.2020


£000

£000

£000









Shareholders' funds as at the beginning of the period 

379,574

 

366,874

366,874





Profit for the period

10,931

14,078

28,296





Dividends

(7,798)

(7,798)

(15,596)





Shareholders' funds at the end of the period

382,707

373,154

379,574

 

 

 

 

 

 

 

 

 

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 International Accounting Standard 34 (IAS 34) "Interim Financial Reporting" as adopted by the European Union.  The condensed consolidated interim financial statements should be read in conjunction with the annual statements for the year ended 31 March 2020 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 2020.

 

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 2020 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 23 November 2020. 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 Adviser) www.sparkadvisorypartners.com 

Mark Brady                                                                 0203 368 3551

 

 

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