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27 Jun 2013 07:00
Embargoed: 07.00a.m. 27 June 2013
MOUNTVIEW ESTATES P.L.C.
Final Results for the year ended 31 March 2013
MOUNTVIEW ESTATES P.L.C.
CHAIRMAN'S STATEMENT
I am pleased to report strongly increased profits for the year ended 31 March 2013; profit before tax was £28.9m (2012: £22.8m) an increase of £6.1m.
In my statement last year I reported that Mountview continued to record good financial performance against the backdrop of a very challenging economic climate. The economic climate continues to be far from easy and so an increase in profits in excess of 25% must be considered a substantial achievement.
Your Board is able to recommend an increased final dividend of 125 pence per share in respect of the year ended 31 March 2013 which is payable on 19 August 2013 to shareholders on the Register of Members as at 19 July 2013. This will make a total dividend for the year ended 31 March 2013 of 175 pence per share (2012: 165 pence per share) which is more than three times covered by the earnings per share.
During the year under review we have continued to make good purchases and have enjoyed strong growth in sales. Our financial resources are well managed which keeps us in good position to take advantage of suitable opportunities when they come along. Recently recruited personnel are developing well and I am confident that the future of the Company is in the hands of a good team.
In our second interim management statement we reported the sudden death of Keith Langrish-Smith. Keith had joined the Company in 1974 and was married to Elizabeth (one of the twin daughters of Frank Sinclair, co-founder of the Company). He had planned to retire at the end of the Company's financial year, but died unexpectedly on 17 December 2012. Keith's easy going and affable demeanour is missed by everyone. Indeed he may prove to have been one of the last members of the family to have served in the management of the Company.
Keith's loyalty and dedication to the Company is perhaps uncommon in this day and age and it may be that it could only be expected from a family member. Nevertheless I have a fine team around me and I thank them all for their efforts throughout the year which have produced results of which they can be proud.
We cannot defy all the difficulties of the economic climate but the Company is well placed to do more than just survive and can expect to enjoy good progress when conditions are less difficult.
One final note relates to me personally; after more than 23 years I have decided to step down as Chairman with effect from the Annual General Meeting. John Fulton, who has been one of our non-executive directors since 2007, will assume the role of non-executive Chairman and I shall remain as Chief Executive of the Company. I believe that the time is right for me to hand over the role of Chairman and concentrate on the day to day running and development of the business, which continues to go from strength to strength in difficult markets. Good Corporate Governance also dictates the splitting of the two roles and we believe that now is the right time to take this step.
MOUNTVIEW ESTATES P.L.C.
FINANCIAL HIGHLIGHTS
2013 |
2012 |
Increase | ||
£ | £ | % | ||
Turnover (millions) | 56.6 | 42.9 | 31.9 | |
Gross Profit (millions) | 33.7 | 27.2 | 23.9 | |
Profit Before Tax (millions) | 28.9 | 22.8 | 26.8 | |
Profit Before Tax excluding investment properties revaluation (millions) | 26.3 | 19.6 | 34.2 | |
Equity Holders' Funds (millions) | 244 | 227.2 | 7.4 | |
Earnings per share (pence) | 568 | 447.7 | 26.9 | |
Net assets per share | 62.6 | 58.3 | 7.4 | |
Dividend per share (pence) | 175 | 165 | 6.1 | |
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 125 pence per share are as follows:
Ex-dividend date
| 17 July 2013 |
Record date | 19 July 2013
|
Payment date | 19 August 2013
|
MOUNTVIEW ESTATES P.L.C.
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2013
Year | Year | |
ended | ended | |
31.03.2013 | 31.03.2012 | |
£000 | £000 | |
REVENUE | 56,646 | 42,931 |
Cost of sales | (22,906) | (15,741) |
GROSS PROFIT | 33,740 | 27,190 |
Administrative Expenses | (3,759) | (3,773) |
Gain on sale of investment properties | 84 | 484 |
Operating profit before changes in fair value of investment properties | 30,065 | 23,901 |
Increase in fair value of investment properties | 2,602 | 3,208 |
PROFIT FROM OPERATIONS | 32,667 | 27,109 |
Change in fair value of derivatives | 563 | (271) |
Net Finance Costs | (4,302) | (4,033) |
PROFIT BEFORE TAXATION | 28,928 | 22,805 |
Taxation - current | (6,511) | (6,648) |
Taxation - deferred | (272) | 1,298 |
Taxation | (6,783) | (5,350) |
PROFIT ATTRIBUTABLE TO EQUITY SHAREHOLDERS | 22,145 | 17,455 |
Basic and diluted earnings per share (pence) | 568.0p | 447.7p |
MOUNTVIEW ESTATES P.L.C.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 31 MARCH 2013
As at | As at | |
31.03.2013 | 31.03.2012 | |
£000 | £000 | |
ASSETS | ||
NON-CURRENT ASSETS | ||
Property, plant and equipment | 2,337 | 2,441 |
Investment properties | 27,852 | 26,537 |
30,189 | 28,978 | |
CURRENT ASSETS | ||
Inventories of trading properties |
316,626 |
301,072 |
Trade and other receivables | 1,198 | 1,371 |
Cash at Bank | 900 | 987 |
318,724 | 303,430 | |
TOTAL ASSETS | 348,913 | 332,408 |
EQUITY AND LIABILITIES | ||
Share Capital | 195 | 195 |
Capital redemption reserve | 55 | 55 |
Capital reserve | 25 | 25 |
Other reserve | 56 | 56 |
Cash flow hedge reserve | - | (1,040) |
Retained earnings | 243,641 | 227,928 |
243,972 | 227,219 | |
NON-CURRENT LIABILITIES | ||
Long-term borrowings | 84,950 | 90,000 |
Deferred Tax | 6,294 | 6,023 |
91,244 | 96,023 | |
CURRENT LIABILITIES | ||
Bank overdrafts and short-term loans | 8,427 | 3,364 |
Trade and other payables | 1,631 | 1,385 |
Current tax payable | 3,639 | 2,814 |
Derivative financial instruments | - | 1,603 |
13,697 | 9,166 | |
TOTAL LIABILITIES | 104,941 | 105,189 |
TOTAL EQUITY AND LIABILITIES | 348,913 | 332,408 |
MOUNTVIEW ESTATES P.L.C.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2013
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 for | |||||||
year ended 31 March 2012 | |||||||
Balance as at 1 April 2011 | 195 | 25 | 55 | (2,340) | 56 | 216,905 | 214,896 |
Reduction in hedge reserve | 1,300 | 1,300 | |||||
Profit for the year | 17,455 | 17,455 | |||||
Dividends | (6,432) | (6,432) | |||||
Balance as at 31 March 2012 | 195 | 25 | 55 | (1,040) | 56 | 227,928 | 227,219 |
Changes in equity for | |||||||
year ended 31 March 2013 | |||||||
Balance as at 1 April 2012 | 195 | 25 | 55 | (1,040) | 56 | 227,928 | 227,219 |
Reduction in hedge reserve | 1,040 | 1,040 | |||||
Profit for the year | 22,145 | 22,145 | |||||
Dividends | (6,432) | (6,432) | |||||
Balance as at 31 March 2013 | 195 | 25 | 55 | 0 | 56 | 243,641 | 243,972 |
MOUNTVIEW ESTATES P.L.C.
GROUP CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2013
Year | Year | |
ended | ended | |
31.03.2013 | 31.03.2012 | |
£000 | £000 | |
Cash flow from operating activities | ||
Operating Profit | 32,667 | 27,109 |
Adjustment for: | ||
Depreciation | 163 | 165 |
Loss on disposal of property, plant & equipment | 3 | 11 |
Gain on disposal of investment properties | (84) | (484) |
(Increase) in fair value of investment properties | (2,602) | (3,208) |
Cash flow from operations before changes in working capital | 30,147 | 23,593 |
(Increase)/ in inventories | (15,554) | (41,610) |
Decrease/(Increase) in receivables | 173 | (179) |
Increase/(Decrease) in payables | 246 | (100) |
Cash generated from operations | 15,012 | (18,296) |
Interest paid | (4,302) | (4,033) |
Income taxes paid | (5,675) | (7,107) |
Net cash inflow/(outflow) from operating activities | 5,035 | (29,436) |
Investing activities | ||
Proceeds from disposal of investment properties | 1,939 | 8,896 |
Capital expenditure on investment properties | (567) | (1,426) |
Purchase of property, plant and equipment | (74) | (160) |
Proceeds from disposal of property, plant and equipment | - | 4 |
Net cash inflow from investing activities | 1,298 | 7,314 |
Cash flow from financing activities | ||
Increase in borrowings | 687 | 40,000 |
Repayment of borrowings | (5,050) | (200) |
Equity dividend paid | (6,432) | (6,432) |
Net cash (outflow)/inflow from financing activities | (10,795) | 33,368 |
Net (decrease)/increase in cash and cash equivalent | (4,462) | 11,246 |
Opening cash and cash equivalent
|
(2,103) |
(13,349) |
Cash and cash equivalent at end of year | (6,565) | (2,103) |
Notes to the Preliminary Announcement
1. | Financial Information |
|
The financial information contained in this report does not constitute statutory accounts for the years ended 31 March 2013 or 31 March 2012 within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 March 2012 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 S498(2) or (3) of the Companies Act 2006, have been filed with the Registrar of Companies.
|
| Financial statements for the year ended 31 March 2013 will be presented to the Members at the Annual General Meeting on 14 August 2013. 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 2013 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.
~ENDS~
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