Last checked at 25 Jun 2009 09:42
MOUNTVIEW ESTATES P.L.C.
FINANCIAL HIGHLIGHTS
| 2009 | 2008 | (Decrease) | |
| £ | £ | % | |
| Turnover (millions) | 53.6 | 54.3 | (1.2) |
| Gross Profit (millions) | 25.9 | 36.0 | (28) |
| Profit Before Tax (millions) | 13.1 | 29.5 | (55.6) |
| Profit Before Tax excluding investment properties revaluations (millions) | 16.3 | 27.7 | (41.1) |
| Shareholders' Funds (millions) | 187.5 | 187.7 | (0.1) |
| Earnings per share (pence) | 241.0 | 530.1 | (54.5) |
| Net assets per share | 48.1 | 48.2 | (0.2) |
| Dividend per share (pence) | 155 | 155 | - |
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 105 pence per share are as follows:
| Ex-dividend date | 15 July 2009 |
| Record date | 17 July 2009 |
| Payment date | 17 August 2009 |
MOUNTVIEW ESTATES P.L.C.
CHAIRMAN'S STATEMENT
First the good news, this company is still making profits. Next more good news, this company is proposing to maintain its dividends at the record levels reached last year. At the Annual General Meeting on 12 August 2009, shareholder approval will be sought for a final dividend of 105 pence per share.
In the worst financial climate in living memory, I consider the achievements highlighted in the first paragraph to be true success and I congratulate all my staff and colleagues on their hard work which has happily produced this level of success. Because of their continuing diligence I am confident that I will again be able to report profits in twelve months' time although we may yet see an even more difficult economic climate. The financial highlights opposite show that despite the various difficulties in the marketplace we have very nearly maintained the same level of turnover as in the previous year. This has been achieved by selling about twenty five per cent more properties which explains why the cost of sales has risen but nevertheless, in such difficult circumstances, maintaining turnover is a considerable achievement.
In the fifteen months up to the end of June 2008 we had made very substantial purchases and our borrowings had reached their highest level ever. In normal circumstances it would be necessary to place an emphasis on the repayment of those borrowings but in present circumstances it is even more vital. Although interest rates are presently extraordinarily low, in twelve months' time I believe they will be significantly higher and the reduction of our borrowings in the meantime will be prudent. During the twelve months under review our long term borrowings have decreased by £7 million and have continued to decrease since 31 March 2009 and must continue to decrease in the coming months.
During recent months we have been introducing a new computer system from which we are already gaining some benefits and this has helped to reduce the administrative costs of the company. As we continue to integrate the new systems and take advantage of their full capabilities it should be possible to contain costs further. Unfortunately a company such as this is ever further burdened by the increasing bureaucracy which is inflicted upon us and this may sometimes obscure the greater efficiency with which the core activities are being administered.
At the Annual General Meeting on 12 August 2009 John Hall will be retiring from the position of Non-Executive Director which he has occupied with distinction since December 2000. He was Chief Executive of Brewin Dolphin Holdings PLC from 1987 to September 2007 and we have been fortunate to have the skill and advice of such an experienced man. He has seen the company grow quite significantly and we are grateful for all his contributions during this time.
As at 1 January 2009 we welcomed James Laing to the Board as a Non-Executive Director and he will stand for election at the Annual General Meeting on 12 August 2009. He has been a Senior Partner at Strutt & Parker for many years and as a Chartered Surveyor I am confident that he will bring a wealth of relevant experience to the Board.
The company continues on a sound financial basis with tight internal controls and although we may yet experience greater economic perils I am confident that in the fullness of time we will reap the benefits of the purchases made in recent years. My staff and colleagues are ready for the challenges ahead and I look forward to the day when their efforts will again produce greater profits and when they can enjoy the financial benefits of those profits and dividends can once again be increased.
The final dividend of 105 pence per share in respect of the year ended 31 March 2009 recommended by your Board is payable on 17 August 2009 to shareholders on the Register of Members as at 17 July 2009. This will make a total dividend for the year ended 31 March 2009 of 155 pence per share which is more than one and a half times covered by the earnings per share.
MOUNTVIEW ESTATES P.L.C.
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2009
| Year | Year | |
| ended | Ended | |
| 31.03.2009 | 31.03.2008 | |
| £000 | £000 | |
| REVENUE | 53,599 | 54,338 |
| Cost of sales | (27,657) | (18,347) |
| GROSS PROFIT | 25,942 | 35,991 |
| Administrative Expenses | (3,767) | (4,207) |
| Operating profit before changes in fair value of investment properties | 22,175 | 31,784 |
| (Decrease)/Increase in fair value of investment properties | (3,210) | 1,784 |
| PROFIT FROM OPERATIONS | 18,965 | 33,568 |
| Finance costs | (5,906) | (4,043) |
| Income from investments | 3 | 4 |
| PROFIT BEFORE TAXATION | 13,062 | 29,529 |
| Taxation - current | (4,864) | (8,358) |
| Taxation - deferred | 1,191 | (503) |
| Total taxation | (3,673) | (8,861) |
| PROFIT ATTRIBUTABLE TO EQUITY SHAREHOLDERS | 9,389 | 20,668 |
| Basic and diluted earnings per share (pence) | 241.0p | 530.1p |
MOUNTVIEW ESTATES P.L.C.
CONSOLIDATED BALANCE SHEET
FOR THE YEAR ENDED 31 MARCH 2009
| As at | As at | |
| 31.03.2009 | 31.03.2008 | |
| £000 | £000 | |
| Assets | ||
| Non-Current Assets | ||
| Property, plant and equipment | 2,567 | 2,719 |
| Investment properties | 32,195 | 36,203 |
| 34,762 | 38,922 | |
| Current Assets | ||
| Inventories of trading properties | 268,806 | 271,361 |
| Trade and other receivables | 660 | 1,118 |
| Cash and cash equivalents | 840 | 802 |
| 270,306 | 273,281 | |
| Total Assets | 305,068 | 312,203 |
| Equity and Liabilities | ||
|
|
|
|
| Share Capital | 195 | 195 |
| Capital redemption reserve | 55 | 55 |
| Capital reserve | 25 | 25 |
| Other reserves | 56 | 56 |
| Cash flow hedge reserve | (3,614) | - |
| Retained earnings | 190,773 | 187,426 |
| 187,490 | 187,757 | |
| Non-Current Liabilities | ||
| Long-term borrowings | 88,000 | 95,000 |
| Deferred Tax | 8,506 | 9,697 |
| 96,506 | 104,697 | |
| Current Liabilities | ||
| Bank overdrafts and loans | 13,026 | 12,685 |
| Trade and other payables | 2,055 | 3,081 |
| Current tax payable | 2,377 | 3,983 |
| Derivative financial instruments | 3,614 | - |
| 21,072 | 19,749 | |
| Total Liabilities | 117,578 | 124,446 |
| Total Equity and Liabilities | 305,068 | 312,203 |
MOUNTVIEW ESTATES P.L.C.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2009
| Capital | Cash Flow | ||||||
| Share | Capital | Redemption | Hedge | Other | Retained | ||
| Capital | Reserve | Reserve | Reserve | Reserves | Earnings | Total | |
| £000 | £000 | £000 | £000 | £000 | £000 | £000 | |
| Changes in Equity | |||||||
| year ended 31 March 2008 | |||||||
| Balance as at 1 April 2007 | 195 | 25 | 55 | 0 | 56 | 172,606 | 172,937 |
| Profit for the year | 20,668 | 20,668 | |||||
| Dividends | (5,848) | (5,848) | |||||
| Balance as at 31 March 2008 | 195 | 25 | 55 | 0 | 56 | 187,426 | 187,757 |
| Changes in Equity | |||||||
| year ended 31 March 2009 | |||||||
| Balance as at 1 April 2008 | 195 | 25 | 55 | 0 | 56 | 187,426 | 187,757 |
| Profit for the year | 9,389 | 9,389 | |||||
| Dividends | (6,042) | (6,042) | |||||
| Cash flow hedge | (3,614) | (3,614) | |||||
| Balance as at 31 March 2009 | 195 | 25 | 55 | (3,614) | 56 | 190,773 | 187,490 |
MOUNTVIEW ESTATES P.L.C.
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2009
| Year | Year | |
| ended | ended | |
| 31.03.2009 | 31.03.2008 | |
| £000 | £000 | |
| Cash flow from operating activities | ||
| Operating Profit | 18,965 | 33,568 |
| Adjustments for: | ||
| Depreciation | 192 | 190 |
| Loss on disposal of property, plant & equipment | 145 | 21 |
| Decrease/(Increase) in fair value of investment properties | 3,210 | (1,784) |
| Cash flow from operations before changes in working capital | 22,512 | 31,995 |
| Decrease/(Increase) in inventories | 2,555 | (87,472) |
| Decrease/(Increase) in receivables | 459 | (57) |
| (Decrease)/Increase in payables | (1,053) | 128 |
| Cash generated from operations | 24,473 | (55,406) |
| Interest paid | (5,906) | (4,043) |
| Income taxes paid | (6,443) | (10,901) |
| Net cash inflow/(outflow) from operating activities | 12,124 | (70,350) |
| Investing activities | ||
| Interest received | 3 | 4 |
| Proceeds from disposal of investment properties | 1,005 | - |
| Proceeds from disposal of property, plant and equipment | 15 | 60 |
| Purchase of property, plant and equipment | (58) | (382) |
| Capital expenditure on investment properties | (350) | (339) |
| Net cash inflow/(outflow) from investing activities | 615 | (657) |
| Cash flows from financing activities | ||
| Increase in borrowings | - | 67,411 |
| Repayment of borrowings | (9,110) | - |
| Equity dividend paid | (6,042) | (5,848) |
| Net cash inflow/(outflow) from financing activities | (15,152) | 61,563 |
| Net (decrease) in cash and cash equivalents | (2,413) | (9,444) |
| Opening cash and cash equivalents | (8,798) | 646 |
| Closing cash and cash equivalents | (11,211) | (8,798) |
Notes to the Preliminary Announcement
| 1. | Financial Information |
| The financial information contained in this report does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. The full accounts for the year ended 31 March 2008, which were prepared in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRS") and which received an unqualified audit report and did not contain a statement under s237(2) or (3) of the Companies Act 1985, have been filed with the Registrar of Companies. | |
| Financial statements for the year ended 31 March 2009 will be presented to the Members at the Annual General Meeting on 12 August 2009. The auditors have indicated that their report on these Financial Statements will be unqualified. | |
| 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 2009 AGM are expected to comply fully with IFRS. |
The preliminary announcement has been prepared under the historical cost convention as modified by the revaluation of investment properties.