Source - LSE Regulatory
RNS Number : 3923U
Mountview Estates PLC
23 November 2023
 

Mountview Estates P.L.C.

Half Year Report

23 November 2023

 

 

MOUNTVIEW ESTATES P.L.C.

 

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

 

UNAUDITED INTERIM RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER 2023

 

Mountview is pleased to announce its unaudited interim results for the six months ended 30 September 2023.

 

 

OUR PERFORMANCE

 

Turnover at £39.2 million up by 5.5% (2022 - £37.2m)

 

Gross profit at £24.2 million up by 13.9% (2022 - £21.3m)

 

Profit before tax at £19.9 million up by 9.3% (2022 - £18.2m)

 

Earnings per share at 382.7 pence up by 1.1% (2022 - 378.4p)

 

Net assets per share at £101.5 down by 0.7% (2022 - £102.2)

 

 

 

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  interim dividend payment of 250p per share are as follows:

 

 

Ex-dividend date - 15 February 2024

 

Record date - 16 February 2024

 

Payment date - 25 March 2024

 

   

 

CHIEF EXECUTIVE OFFICER'S STATEMENT

 

At the Annual General Meeting held on 9 August 2023 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 20 November 2023, 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

Despite the economic difficulties being suffered throughout the country the Company's gross profit for the six months ended 30 September 2023 has increased by 13.9% and profit before tax by 9.3%.  The rise of over 30% in corporation tax from 19% to 25% is the main, if not only, reason that earnings per share have risen only by 1.1%.

Our purchasing activity has remained strong during these six months and our financial strength should enable us to continue to take advantage of good purchasing opportunities.

With a staff of less than thirty we are a tiny company but the increased taxation and the ever expanding regulatory and administrative burden imposed by various authorities is disproportionate to a company of this size.  We will not abandon our financial prudence, but I am determined that we shall protect our staff from the worst economic misfortunes.  Many of our staff have been loyal to the Company for many years and they deserve our loyalty.

 

INTERIM DIVIDEND

In March 2022 and March 2023 the Company paid an exceptional interim dividend totalling 500p per share but it would not be possible to continue at this level without compromising the Company's financial prudence.  At this time last year I advised that it would be prudent to only anticipate an interim dividend payable in March 2024 at the increased basic rate of 250p per share.

The Company has continued to make good purchases which are the future of the Company and so an interim dividend of 250p per share is the prudent option and still represents a good return on your investment.

This dividend is payable on 25 March 2024 to shareholders on the Register of Members as at 16 February 2024.

OUTLOOK

We live in difficult times, but I believe that this Company will continue to prosper and can continue to care for its staff and its shareholders.

 

D.M. Sinclair

Chief Executive Officer

23 November 2023



CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

for the half year ended 30 September 2023

 

 

 

Half year ended 30.09.2023

£000

Half year

ended

30.09.2022

£000

Year

ended

31.03.2023

£000

 

 

 



 

 


Revenue

39,236

37,192

73,593


 



Cost of Sales

(15,007)

(15,912)

(32,993)


 



Gross Profit

24,229

21,280

40,600

 


 



Administrative expenses

(2,718)

(2,734)

(6,592)


 




 



 

 



Operating profit before changes in

 



fair value of investment properties

21,511

18,546

34,008


 



(Decrease) in fair value of investment properties

-

-

(36)

 

 



Profit from operations

21,511

18,546

33,972

 

Net finance costs

(1,609)

(336)

 

(1,208)


 



Profit before taxation

19,902

18,210

32,764

 

 



Taxation - current

(4,982)

(3,455)

(6,233)

Taxation - deferred

-

-

(66)

 

 



Taxation

(4,982)

(3,455)

(6,299)


 



Profit attributable to equity shareholders and total comprehensive income

14,920

14,755

26,465

 

 



Basic and diluted earnings per share (pence)

382.7p

378.4p

678.8p

 

 

 


 

 

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 2023

 


Half year ended

Half year ended

Year ended


30.09.2023

30.09.2022

31.03.2023


£000

£000

£000

Assets

 



Non-current assets

 



Property, plant and equipment

1,464

1,517

1,493

Investment properties

25,415

25,451

25,415


26,879

26,968

26,908


 



Current assets

 



Inventories of trading properties

442,231

406,812

422,742

Trade and other receivables

2,593

1,684

6,656

Cash and cash equivalents

1,908

1,628

776


446,732

410,124

430,174


 



 

 



Total assets

473,611

437,092

457,082

 

 



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

395,550

398,163

390,377


395,881

398,494

390,708

 

 



Non-current liabilities

 



Long-term borrowings

66,200

28,700

56,700

Deferred tax

5,766

5,700

5,766


71,966

34,400

62,466


 



Current liabilities

 



Bank overdrafts and other short term loans

-

-

60

Trade and other payables

841

889

1,984

Current tax payable

4,923

3,309

1,864


5,764

4,198

3,908

 

 



 

 



Total liabilities

77,730

38,598

66,374

 

 



 

473,611

437,092

457,082

 

 

 



CONSOLIDATED CASHFLOW STATEMENT (UNAUDITED)

for the half year ended 30 September 2023

 

 


 

Half year

Half year

Year


 

ended

ended

ended


 

30.09.2023

30.09.2022

31.03.2023


 

£000

£000

£000

Cash flows from operating activities

 

 




 

 



Profit from operations

 

21,511

18,546

33,972

Adjustment for:

 

 



Depreciation

 

29

29

53

Decrease in fair value of investment properties

 

 

-

 

-

 

36


 

 



Operating cash flows before movement in working capital

 

 

21,540

18,575

34,061

 

 

 



 

 

 



(Increase) in inventories

 

(19,489)

(13,537)

(29,467)

Decrease/(Increase) in receivables

 

4,063

(358)

(5,330)

(Decrease)/Increase in payables

 

(1,143)

(581)

514


 

 



Cash generated from operations

 

 

4,971

4,099

(222)

 

 

 



Interest paid

 

(1,609)

(336)

(1,208)

Income taxes paid

 

(1,923)

(2,531)

(6,754)


 

 



Net cash Inflow/(Outflow) from operating activities

 

1,439

1,232

(8,184)

 

 

 

 



 

Cash flows from financing activities

 

 



 

 

 



Increase of borrowings

 

9,500

9,500

37,500

Equity dividend paid

 

(9,747)

(9,747)

(29,243)


 

 



Net cash (Outflow)/Inflow from financing activities

 

 

(247)

(247)

8,257

 

 

 



Net Increase in cash and cash equivalents

 

1,192

985

73

 

 

 



Opening cash and cash equivalents

 

716

643

643


 

 



Cash and cash equivalents at end of period

 

1,908

1,628

716

 

 

 



 

 

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

for the half year ended 30 September 2023

 

 


Half year

Half year

Year


ended

ended

ended


30.09.2023

30.09.2022

31.03.2023


£000

£000

£000






 



Shareholders' funds as at the beginning of the period 

390,708

 

393,486

393,486


 



Profit for the period

14,920

14,755

26,465


 



Dividends

(9,747)

(9,747)

(28,243)


 



Shareholders' funds at the end of the period

395,881

398,494

390,708

 

 

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 2023 which have been prepared in accordance with UK adopted International Accounting Standards.

 

The accounting policies used are consistent with those contained in the Group's last Annual Report and Accounts for the year ended 31 March 2023.

 

The Directors have reviewed the current and projected financial position of the Group and are satisfied that the Group has adequate resources to cover all liabilities becoming payable for the foreseeable future. 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 inter-company transactions 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 2023 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 2023. 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 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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