Last checked at 22 Nov 2018 09:20
Mountview Estates P.L.C.
Interim Results
22 November 2018
MOUNTVIEW ESTATES P.L.C.
("Mountview" or "the Group" or "the Company")
UNAUDITED INTERIM RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER
2018
Mountview is pleased to announce its unaudited interim results for the six months ended 30 September 2018
OUR PERFORMANCE
Turnover at £30.2 million down by 8.5% (2017 - £33.0m)
Gross profit at £18.6 million down by 10.6% (2017 - £20.8m)
Profit before tax at £15.9 million down by 13.6% (2017 - £18.4m)
Earnings per share at 329.9 pence down by 13.5% (2017 - 381.3 p)
Net assets per share at £92.2 up by 3.5% (2017 - £89.1)
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 14 February 2019
Record date 15 February 2019
Payment date 25 March 2019
Chief Executive Officer's Statement
At the Annual General Meeting held on 8 August 2018 those shareholders deemed to be independent exercised their right to reject the re-appointment of Mr Anthony Solway and the election of Mr Anthony Powell as independent non-executive directors. At the General Meeting held in accordance with the UKLA Listing Rules on 19 November 2018, when all shareholders were entitled to vote, it was resolved to re-appoint Mr Anthony Solway and elect Mr Anthony Powell as directors of the Company. Thus the status quo is maintained.
TRADING
The uncertainty surrounding Brexit of which I wrote last year will continue until 29 March 2019 at the earliest. Whilst the Company conducts its business entirely within the borders of the United Kingdom, it cannot escape the overall effect of these uncertainties. During the six months ended 30 September 2018 fewer of our properties have come vacant and sales take longer to complete during uncertain times.
Consequently it is no surprise that the figures of Our Performance on the previous page are all down with the exception of a modest increase in net assets per share. We have continued to make good purchases during the six months ended 30 September 2018 and with low gearing the Company remains financially sound.
INTERIM DIVIDEND
The interim dividend is maintained at 200p per share in respect of the year ending 31 March 2019 and is payable on 25 March 2019 to shareholders on the Register of Members as at 15 February 2019.
OUTLOOK
With continuing good purchases and sound finances the Company is well placed to take advantage when the economy settles down and the Brexit uncertainties have been banished.
D.M. SINCLAIR
Chief Executive Officer
22 November 2018
GROUP STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
for the half year ended 30 September 2018
Half year ended 30.09.2018 £000 | Half year ended 30.09.2017 £000 | Year ended 31.03.2018 £000 | |
Revenue | 30,166 | 33,027 | 70,272 |
Cost of Sales | (11,592) | (12,257) | (26,915) |
Gross Profit | 18,574 | 20,770 | 43,357 |
Administrative expenses | (2,112) | (2,141) | (5,507) |
| |||
Gain on sale of investment properties | - | - | 145 |
Operating profit before changes in | |||
fair value of investment properties | 16,462 | 18,629 | 37,995 |
(Decrease) in fair value of investment properties | - | - | (376) |
| |||
Profit from operations | 16,462 | 18,629 | 37,619
|
Net finance costs | (566) | (270)
| (714) |
Profit before taxation | 15,896 | 18,359 | 36,905 |
| |||
Taxation - current | (3,034) | (3,499) | (7,197) |
Taxation - deferred | - | 7 | 173 |
| |||
Taxation | (3,034) | (3,492) | (7,024) |
| |||
Profit attributable to equity Shareholders | 12,862 | 14,867 | 29,881 |
| |||
Basic and diluted earnings per share (pence) | 329.9p | 381.3p | 766.4p |
|
All items within the consolidated income statement relate to continuing operations.
GROUP STATEMENT OF FINANCIAL POSITION (UNAUDITED)
for the half year ended 30 September 2018
Half year ended | Half year ended | Year ended | |
30.09.2018 | 30.09.2017 | 31.03.2018 | |
£000 | £000 | £000 | |
Assets | |||
Non-current assets | |||
Property, plant and equipment | 1,741 | 1,803 | 1,771 |
Investment properties | 27,825 | 28,741 | 27,825 |
29,566 | 30,544 | 29,596 | |
Current assets | |||
Inventories of trading properties | 378,173 | 346,467 | 376,879 |
Trade and other receivables | 1,726 | 4,119 | 1,859 |
Cash and cash equivalents | 825 | 1,261 | 5,368 |
380,724 | 351,847 | 384,106 | |
| |||
Total assets | 410,290 | 382,391 | 413,702 |
| |||
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 | 359,195 | 346,916 | 354,131 |
| 359,526 | 347,247 | 354,462 |
| |||
Non-current liabilities | |||
Long-term borrowings | 39,900 | 22,700 | 49,900 |
Deferred tax | 4,696 | 4,862 | 4,696 |
44,596 | 27,562 | 54,596 | |
Current liabilities | |||
Bank overdrafts and loans | 2,425 | 3,430 | 463 |
Trade and other payables | 734 | 692 | 1,843 |
Current tax payable | 3,009 | 3,460 | 2,338 |
6,168 | 7,582 | 4,644 | |
| |||
| |||
Total liabilities | 50,764 | 35,144 | 59,240 |
| |||
Total equity and liabilities | 410,290 | 382,391 | 413,702 |
GROUP CASHFLOW STATEMENT (UNAUDITED)
for the half year ended 30 September 2018
Half year | Half year | Year | ||
ended | ended | ended | ||
30.09.2018 | 30.09.2017 | 31.03.2018 | ||
£000 | £000 | £000 | ||
Cash flows from operating activities | ||||
Profit from operations | 16,462 | 18,629 | 37,619 | |
Adjustment for: | ||||
Depreciation | 30 | 32 | 66
| |
(Gain) on sale of investment properties | - | - | (145) | |
Decrease in fair value of investment properties |
|
- |
- |
376 |
Operating cash flows before movement in working capital | 16,492 | 18,661 | 37,916 | |
(Increase)/Decrease in inventories | (1,294) | 913 | (29,499) | |
Decrease/(Increase) in receivables | 133 | (2,506) | (246) | |
(Decrease) in payables | (1,109) | (1,259) | (108) | |
Cash generated from operations | 14,222 | 15,809 | 8,063 | |
| ||||
Interest paid | (566) | (270) | (714) | |
Income taxes paid | (2,363) | (5,293) | (10,110) | |
Net cash inflow /(outflow)from operating activities | 11,293 | 10,246 | (2,761) | |
Investing activities | ||||
Proceeds from disposal of investment properties | - | - | 685 | |
Purchase of property, plant and equipment | - | - | (4) | |
Net cash inflow from investing activities | - | - | 681 | |
| ||||
Cash flows from financing activities | ||||
| ||||
(Repayment)/Increase in borrowings | (9,875) | (6,867) | 20,483 | |
Equity dividend paid | (7,798) | (3,899) | (11,698) | |
Net cash (outflow)/inflow from financing activities | (17,673) | (10,766) | 8,785 | |
| ||||
Net (decrease)/increase in cash and cash equivalents | (6,380) | (520) | 6,705 | |
| ||||
Opening cash and cash equivalents | 5,368 | (1,337) | (1,337) | |
Cash and cash equivalents at end of period | (1,012) | (1,857) | 5,368 |
GROUP CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
for the half year ended 30 September 2018
Half year | Half year | Year | |
ended | ended | ended | |
30.09.2018 | 30.09.2017 | 31.03.2018 | |
£000 | £000 | £000 | |
Shareholders' funds as at the beginning of the period | 354,462 |
336,279 | 336,279 |
Profit for the period | 12,862 | 14,867 | 29,881 |
Dividends | (7,798) | (3,899) | (11,698) |
Shareholders' funds at the end of the period | 359,526 | 347,247 | 354,462 |
Notes to the Half Year Report
Basis of preparation
These condensed 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 interim financial statements should be read in conjunction with the annual statements for the year ended 31 March 2018 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 2018.
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 2018 have been reported on by the Group's auditors and filed with the Registrar of Companies. The report of the auditors 2018 was unqualified and did not contain any statement under Section 498 of the Companies Act 2006.
The consolidated interim financial statements were approved by the Board of Directors on 19 November 2018. 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 Advisor) www.sparkadvisorypartners.com
Miriam Greenwood 0203 368 3553
Mark Brady 0203 368 3551