Last checked at 26 Jun 2014 09:46
For immediate release
Preliminary results for the year ended 31 March 2014
MOUNTVIEW ESTATES P.L.C.
CHAIRMAN'S STATEMENTI am delighted to report both increased turnover and increased profits for the year ended 31 March 2014.
Profit before tax for the year was £35.4m (2013: £28.9m) representing an increase of £6.5m and growth of 22.5%. This performance reflects a very buoyant housing market in our core geographical area. These results are the second highest in the history of the Company and this must be considered an excellent achievement. Equally pleasing is the increase in shareholders' funds of 8.9% to £265.6m together with a reduction in borrowings of 16.5% to £78m.
These results have meant that we are able to recommend an increased final dividend of 150 pence per share in respect of the year ended 31 March 2014. This final dividend is payable on 18 August 2014 to shareholders on the Register of Members as at 18 July 2014. This will make a total dividend for the year ended 31 March 2014 of 200 pence per share (2013: 175 pence per share). The increased dividend is still more than three times covered by the earnings per share.
In the year, we have continued to purchase new trading stock. We have been able to invest £23.9m in new properties. The buoyant housing market has brought more players into our core market and this has resulted in greater competition for new purchases. However, we believe we have continued to buy wisely, investing in properties located in our key locations and where we see good value and potential profits.
Whilst it has never been a requirement to value the trading stock it has been a concern for some of the shareholders. The Board has decided to undertake the valuation of the trading stock and anticipate that the results will be published together with the Interim Report 2014.
The results are made with a stable, experienced and committed executive and management team and staff. We continue to develop managerial staff and this is an important part of business progression.
Duncan Sinclair has been with the Company for 43 years, during which he has occupied the positions of Company Secretary, Director, Executive Chairman and Chief Executive. The Company has grown and developed significantly since Duncan became Chief Executive in 1990. The search to find and establish Duncan's successor is on-going and now intensifying. This is an important phase in the Company's development.
I am pleased to announce that Mrs Mhairi Jarvis will join our board as an independent non-executive director with effect from 1 July 2014. Mhairi is a Chartered Surveyor, who brings to this role a wealth of experience in the UK residential property sector. She is a graduate of the University of Aberdeen in Land Economy and has worked for over 15 years in a variety of private practice and consulting roles with auction houses, agencies and asset managers.
On 23 June 2014, Mountview Estates P.L.C. was included in the FTSE All-Share Ex-Multinational Index for the first time.
This is my first statement as chairman since we made the decision to split the combined role of chairman and chief executive at last year's annual general meeting. I am grateful for the support of my fellow directors and wish to express my thanks to them.
John Fulton
26 June 2014
MOUNTVIEW ESTATES P.L.C.
FINANCIAL HIGHLIGHTS
2014 |
2013 |
Increase | |
£ | £ | % | |
Turnover (millions) | 66.2 | 56.6 | 17.0 |
| |||
Gross Profit (millions) | 38.6 | 33.7 | 14.5 |
| |||
Profit Before Tax (millions) | 35.4 | 28.9 | 22.5 |
| |||
Profit Before Tax excluding investment properties revaluation (millions) | 32.2 | 26.3 | 22.4 |
| |||
Equity Holders' Funds (millions) | 265.6 | 244 | 8.9 |
| |||
Earnings per share (pence) | 729.5 | 568 | 28.4 |
| |||
Net assets per share | 68.1 | 62.6 | 8.8 |
| |||
Dividend per share (pence) | 200 | 175 | 14.3 |
|
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 150 pence per share are as follows:
Ex-dividend date
| 16 July 2014 |
Record date | 18 July 2014
|
Payment date | 18 August 2014
|
MOUNTVIEW ESTATES P.L.C.
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2014
Year | Year | |
ended | ended | |
31.03.2014 | 31.03.2013 | |
£'000 | £'000 | |
REVENUE | 66,150 | 56,646 |
Cost of sales | (27,555) | (22,906) |
GROSS PROFIT | 38,595 | 33,740 |
Administrative Expenses | (4,256) | (3,759) |
Gain on sale of investment properties | 214 | 84 |
| ||
Operating profit before changes in fair value of investment properties | 34,553 | 30,065 |
|
| |
Increase in fair value of investment properties | 3,185 | 2,602 |
| ||
PROFIT FROM OPERATION | 37,738 | 32,667 |
Change in fair value of derivatives | 0 | 563 |
Net Finance Costs | (2,344) | (4,302) |
PROFIT BEFORE TAXATION | 35,394 | 28,928 |
Taxation - current | (7,724) | (6,511) |
Taxation - deferred | 772 | (272) |
| ||
Taxation | (6,952) | (6,783) |
| ||
PROFIT ATTRIBUTABLE TO EQUITY SHAREHOLDERS | 28,442 | 22,145 |
Basic and diluted earnings per share (pence) | 729.5p | 568.0p |
MOUNTVIEW ESTATES P.L.C.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 31 MARCH 2014
As at | As at | |
31.03.2014 | 31.03.2013 | |
£'000 | £'000 | |
ASSETS | ||
NON-CURRENT ASSETS | ||
Property, plant and equipment | 2,116 | 2,337 |
Investment properties | 29,396 | 27,852 |
31,512 | 30,189 | |
CURRENT ASSETS | ||
Inventories of trading properties |
321,323 |
316,626 |
Trade and other receivables | 1,578 | 1,198 |
Cash at Bank | 1,217 | 900 |
324,118 | 318,724 | |
TOTAL ASSETS | 355,630 | 348,913 |
EQUITY AND LIABILITIES | ||
Share Capital | 195 | 195 |
Capital redemption reserve | 55 | 55 |
Capital reserve | 25 | 25 |
Other reserve | 56 | 56 |
Retained earnings | 265,260 | 243,641 |
265,591 | 243,972 | |
NON-CURRENT LIABILITIES | ||
Long-term borrowings | 69,800 | 84,950 |
Deferred Tax | 5,522 | 6,294 |
75,322 | 91,244 | |
CURRENT LIABILITIES | ||
Bank overdrafts and short-term loans | 8,168 | 8,427 |
Trade and other payables | 2,004 | 1,631 |
Current tax payable | 4,545 | 3,639 |
14,717 | 13,697 | |
TOTAL LIABILITIES | 90,039 | 104,941 |
TOTAL EQUITY AND LIABILITIES | 355,630 | 348,913 |
MOUNTVIEW ESTATES P.L.C.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2014
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 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 |
Changes in equity for | |||||||
year ended 31 March 2014 | |||||||
Balance as at 1 April 2013 | 195 | 25 | 55 | 56 | 243,641 | 243,972 | |
Profit for the year | 28,442 | 28,442 | |||||
Dividends | (6,823) | (6,823) | |||||
Balance as at 31 March 2014 | 195 | 25 | 55 | 56 | 265,260 | 265,591 | |
MOUNTVIEW ESTATES P.L.C.
GROUP CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2014
| Year | Year |
| ended | ended |
| 31.03.2014 | 31.03.2013 |
| £'000 | £'000 |
Cash flow from operating activities | ||
| ||
Operating Profit | 37,738 | 32,667 |
Adjustment for: | ||
Depreciation | 138 | 163 |
Loss on disposal of property, plant & equipment | 42 | 3 |
Gain on disposal of investment properties | (214) | (84) |
(Increase) in fair value of investment properties | (3,185) | (2,602) |
Cash flow from operations before changes in working capital | 34,519 | 30,147 |
(Increase)/ in inventories | (4,697) | (15,554) |
(Increase)/Decrease in receivables | (380) | 173 |
Increase in payables | 373 | 246 |
Cash generated from operations | 29,815 | 15,012 |
Interest paid | (2,344) | (4,302) |
Income taxes paid | (6,908) | (5,675) |
Net cash inflow from operating activities | 20,563 | 5,035 |
Investing activities | ||
Proceeds from disposal of investment properties | 2,373 | 1,939 |
Capital expenditure on investment properties | (518) | (567) |
Purchase of property, plant and equipment | (19) | (74) |
Proceeds from disposal of property, plant and equipment | 150 | - |
| ||
Net cash inflow from investing activities | 1,986 | 1,298 |
Cash flow from financing activities | ||
Increase in borrowings | 0 | 687 |
Repayment of borrowings | (15,305) | (5,050) |
Equity dividend paid | (6,823) | (6,432) |
Net cash (outflow) from financing activities | (22,128) | (10,795) |
Net increase/(decrease) in cash and cash equivalents | 421 | (4,462) |
Opening cash and cash equivalents
|
(6,565) |
(2,103) |
Cash and cash equivalents at the end of the year | (6,144) | (6,565) |
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 2014 or 31 March 2013 within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 March 2013 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.
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Financial statements for the year ended 31 March 2014 will be presented to the Members at the Annual General Meeting on 13 August 2014. The auditors have indicated that their report on these Financial Statements will be unqualified.
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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 2014 AGM are expected to comply fully with IFRS.
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The preliminary announcement has been prepared under the historical cost convention as modified by the revaluation of investment properties.
END