Mountview Est. Regulatory News (MTVW)

22 Jun 2006 15:38

Mountview Estates PLC22 June 2006 MOUNTVIEW ESTATES PLC Preliminary Results Chairman's Statement In my statement, which accompanied our interim Report, I stated that thoseAccounts were our first to be prepared under the new International FinancialReporting Standards. I think it appropriate to state that this is the firstpreliminary statement to be prepared under the new International FinancialReporting Standards, and that the figures for year ended 31 March 2005 have beenadjusted so as to provide true comparisons. Opposite are the financial highlights for the year ended 31 March 2006. At 30 September 2005 our Profit before Taxation was down by almost £3.7 millionfor the six months but for the full year to 31 March 2006 it is down by lessthan £2.2 million. This turnround of more than £1.5 million and an encouragingstart to our new financial year suggest that we have arrested our decline andmay even be able to look forward to profits resuming an upward trend. The lastfew months have seen a greater urgency in the market place than had been thecase for the previous eighteen months. In particular the auction rooms have beenvery busy. Our rental income continues to hold up well and recently sales revenues haveshown renewed strength. These combined with reduced borrowings and lowerinterest rates give cause for optimism. Nevertheless the need for firm financialcontrol continues. The cost of maintaining the properties, making the necessaryimprovements to enhance rental income and ensuring that properties are inoptimum condition at the point of sale is always likely to increase because ofthe higher expectations of what landlords should provide. The costs of administering a company and fulfilling its statutory obligationscontinue to rise and I believe that we have done well to contain these costs asnearly as we have. Although it may be some time before we are able to repeat therecord profits of two years ago we are now operating at a level which comparesvery favourably with the 1990s and with continuing strong financial and internalcontrols there is reasonable expectation that profits may ease forward oncemore. This has been a difficult year but I believe that we have made the rightdecisions. My staff and colleagues have rallied round and I thank them all fortheir endeavours and I look forward to the day when increased profits may bringthem increased rewards. Despite the fall in profits your Board is recommending an increased finaldividend of 86 pence per share in respect of the year ended 31 March 2006. Thisdividend is payable on 21 August 2006 to shareholders on the Register of Membersas at 21 July 2006. This will make a total dividend for the year ended 31 March2006 of 130 pence per share which is more than three times covered by theearnings per share of 408.4 pence. Last year I made reference to the fact that the Sinclair family has always hadsubstantial shareholdings in the Company and the family grouping has beeninterpreted to be acting as a concert party ("the Concert Party") for thepurposes of the City Code on Takeovers and Mergers. A new Concert PartyAgreement has been signed recently and I can confirm that the Concert Party nowholds nearly 53 per cent of the issued share capital of the Company. FINANCIAL HIGHLIGHTS FOR YEAR ENDED 31 MARCH 2006 2006 2005 Increase/(Decrease) £ £ % Turnover (million) 47.5 48.8 (2.7) Gross Profit (million) 28.13 1.0 (9.4) Profit Before Tax (million) 22.72 4.9 (8.8) Shareholders' funds (million) 143.21 32.2 8.3 Net assets per share 36.73 3.9 8.3 Earnings per share (pence) 408.44 45.4 (8.3) Dividend per share (pence) 130 126 3.2 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 86 pence per share are as follows: Ex-dividend date 19 July 2006 Record date 21 July 2006 Payment date 21 August 2006 UNAUDITED CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 2006 Year Restated Ended Year 31.3.2006 Ended 31.3.2005 £000 £000 Revenue 47,456 48,778 Cost of sales (19,402) (17,758) ______ ______Gross profit 28,054 31,020 Administrative Expenses (3,058) (3,019)Increase in fair value of investments 337 331 Gain on sale of investment properties 599 325 ______ ______Profit from operations 25,932 28,657 Finance costs (3,299) (3,830)Income from investments 27 21 ______ ______Profit before taxation 22,660 24,848 Income tax expense (6,738) (7,482) ______ ______Profit attributable to equity shareholders 15,922 17,366 ====== ====== Basic and diluted earnings per share (pence) 408.4 445.4 UNAUDITED GROUP BALANCE SHEET AS AT 31 MARCH 2006 Restated As at As at 31.03.2006 31.03.2005 £000 £000 Assets Non current assets Property, plant and equipment 2,735 2,821Investment properties 20,780 22,468Investments - - ________ _______ 23,515 25,289Current assets Inventories of trading properties 176,095 174,775Trade and other receivables 651 319Cash and cash equivalents 2,338 2,288 ________ _______ 179,084 177,382 ________ _______ Total assets 202,599 202,671 ========= ========= Equity and liabilities Equity attributable to equity holders of theparentShare capital 195 195Capital redemption reserve 55 55Capital reserve 25 25Other reserves 56 56Retained earnings 142,849 131,840 _______ _______ 143,180 132,171Non-current liabilitiesLong-term borrowings 29,716 29,534Deferred tax 5,056 5,584 _______ _______ 34,772 35,118Current liabilitiesBank overdrafts and loans 20,149 31,124Current tax payable 3,078 3,155Trade and other payables 1,420 1,103 _______ _______ 24,647 35,382 Total liabilities 59,419 70,500 Total equity and liabilities 202,599 202,671 ========= ========= UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Share Reva- Capital Capital Other Retained Total capital luation reserves redem- Rsrvs Earnings £000 £000 reserve £000 ption £000 £000 £000 reserves £000 Changes in equity for year ended 31 March 2005 Balance as at 1 April2004 195 - 25 55 56 119,228 119,559 Profit for the year 17,366 17,366 Dividends (4,754) (4,754) ____ ____ ____ ____ ____ _______ _______Balance at 31 March2005 195 - 25 55 56 131,840 132,171 ----- ---- ---- ---- ---- --------- --------- Changes in equity for year ended 31 March 2006 Profit for the year 15,922 15,922 Dividends (4,913) (4,913) ____ ____ ____ ____ ____ _______ _______Balance at 31 March2006 195 - 25 55 56 142,849 143,180 ----- ---- ---- ---- ---- --------- --------- UNAUDITED CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2006 Year Year Ended Ended 31.3.2006 31.3.2005 £000 £000Cash flows from operating activitiesProfit from operations 25,932 28,657Adjustments for:Depreciation 159 121Loss on disposal of property, plant and 30 3equipmentIncrease in fair value investment properties (337) (331)Gain on sale of investment properties (599) (325) __________ __________Operating cash flows before movement inworking capital 25,185 28,125 Increase in inventories (1,320) (4,659)(Increase) in receivables (331) (141)Increase in payables 317 (122) __________ __________Cash generated from operations 23,851 23,203Interest paid (3,299) (4,000)Income taxes paid (7,343) (8,856) _________ _________Net cash from operating activities 13,209 10,347 __________ __________Investing activitiesInterest received 27 21Purchase of property , plant and equipment (165) (387)Purchase of investment properties (498) (126)Proceeds from sale of investment properties 3,122 395Proceeds from disposal of property, plant andequipment 61 36 __________ __________Net cash from /(used) in investing activities 2,547 (61) __________ __________ Cash flows from financing activitiesIncrease in borrowings - 3,365Repayment of borrowings (12,711) (9,279)Dividends paid (4,913) (4,754) __________ __________Net cash used from financing activities (17,624) (10,668) ___________ __________ Net decrease in cash and cash equivalents (1,868) (382)Cash and cash equivalents at beginning of theperiod (13,718) (13,336) ___________ __________Cash and cash equivalents at the end of year (15,586) (13,718) ========== ========= Unaudited Notes to the Preliminary Announcement 1. Financial Information The financial information contained in this report does not constitute statutoryaccounts within the meaning of section 240 of the Companies Act 1985. The fullaccounts for the year ended 31 March 2005, which were prepared under UK GAAP andwhich received an unqualified audit report, and did not contain a statementunder s237(2) or (3) of the Companies Act 1985, have been filed with theRegistrar of Companies. Financial statements for the year ended 31 March 2006 will be presented to theMembers at the Annual General Meeting on 16 August 2006. The auditors haveindicated that their report on these Financial Statements will be unqualified. 2. Basis of Preparation The preliminary announcement has been prepared in accordance with InternationalFinancial Reporting Standards as adopted by the European Union ("IFRS") but doesnot contain sufficient information to comply fully with IFRS. The FinancialStatements to be presented to Members at the 2006 AGM are expected to complyfully with IFRS. The preliminary announcement has been prepared under the historical costconvention as modified by the revaluation of investment properties. The comparative information has been restated in accordance with IFRS. Thedisclosures required by IFRS1 concerning the transition from UK GAAP to IFRSwill be provided within the full financial statements. The date of transition toIFRS was 1 April 2004. This information is provided by RNS The company news service from the London Stock Exchange