Last checked at 27 Nov 2014 07:00
Embargoed 07.00a.m 27 November 2014
Mountview Estates P.L.C.
Interim Results
MOUNTVIEW ESTATES P.L.C.
UNAUDITED INTERIM RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER 2014
OUR PERFORMANCE
Turnover at £36.9 million up by 28.1% (2013 - £28.8m)
Gross profit at £24.1 million up by 51.6% (2013 - £15.9m)
Profit before tax at £20.8 million up by 57.6% (2013 - £13.2m)
Earnings per share at 428.0 pence up by 55.4% (201 - 275.5p)
Net assets per share at £71.00 up by 10.8% (2013 - £64.10)
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 100p per share are as follows:
Ex-dividend date 19 February 2015
Record date 20 February 2015
Payment date 30 March 2015
C.E.O.'s STATEMENT
We are delighted to report an excellent start to the year, with turnover, profit before taxation and net asset value all ahead of the same period last year.
Trading stock valuation
As we announced in the Chairman's Statement, which accompanied our Report and Accounts for the year ended 31 March 2014, the Company commissioned a full independent valuation of its trading stock by Allsop. This valuation has been completed and, as at 30 September 2014, the trading stock has been valued at nearly £666 million. This is more than double the current book value of £318 million which, in accordance with our Accounting Policies, is stated at the lower of cost and net realisable value. This is a testimony to the sound policies which have seen the Company grow steadily over an extended period of years. The Accounting Policy of the Company will not change, but details of the valuation will be included as a note to the Report and Accounts.
Interim Dividend
As a result of the Company's continuing strong trading performance, the Board has decided to pay an increased interim dividend. This interim dividend of 100p per share, compared to 50p last year, is payable in respect of the year ending 31 March 2015 on 30 March 2015, to shareholders on the Register of Members as at 20 February 2015.
Current trading
The Company continues to make good purchases when the opportunities occur and the Board is confident of further augmenting the portfolio in the coming months. The Company remains financially stable and maintains gearing at a modest level and trading remains in line with the Board's expectations.
Outlook
The outlook for the Company is good, but there are general economic reservations which must be expressed, which are beyond our control. The Board believes that the Company's low gearing puts it in good position to weather any economic consequences that may arise. Indeed, historically, the Company has done well in difficult times.
GROUP STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
for the half year ended 30 September 2014
Half year ended 30.09.2014 £000 | Half year ended 30.09.2013 £000 | Year ended 31.03.2014 £000 | |
Revenue | 36,900 | 28,825 | 66,150 |
Cost of Sales | (12,794) | (12,931) | (27,555) |
Gross Profit | 24,106 | 15,894 | 38,595 |
Administrative expenses | (2,361) | (1,721) | (4,256) |
Gain on sale of investment properties | - | 264 | 214 |
Operating profit before changes in | |||
fair value of investment properties | 21,745 | 14,437 | 34,553 |
Increase in fair value of investment properties | - | - | 3,185 |
| |||
Profit from operations | 21,745 | 14,437 | 37,738 |
Net finance costs | (959) | (1,191) | (2,344) |
Profit before taxation | 20,786 | 13,246 | 35,394 |
| |||
Taxation - current | (4,364) | (3,312) | (7,724) |
Taxation - deferred | 266 | 807 | 772 |
| |||
Taxation | (4,098) | (2,505) | (6,952) |
| |||
Profit attributable to equity Shareholders | 16,688 | 10,741 | 28,442 |
| |||
Basic and diluted earnings per share (pence) | 428.0p | 275.5p | 729.5p |
|
All items within the consolidated income statement relate to continuing operations.
GROUP STATEMENT OF FINANCIAL POSITION (UNAUDITED)
for the half year ended 30 September 2014
As at | As at | As at | |
30.09.2014 | 30.09.2013 | 31.03.2014 | |
£000 | £000 | £000 | |
Assets | |||
Non-current assets | |||
Property, plant and equipment | 2,058 | 2,238 | 2,116 |
Investment properties | 29,342 | 26,373 | 29,396 |
31,400 | 28,611 | 31,512 | |
Current assets | |||
Inventories of trading properties | 317,651 | 328,034 | 321,323 |
Trade and other receivables | 1,580 | 1,080 | 1,578 |
Cash and cash equivalents | 467 | 1,147 | 1,217 |
319,698 | 330,261 | 324,118 | |
| |||
Total assets | 351,098 | 358,872 | 355,630 |
| |||
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 | 276,100 | 249,509 | 265,260 |
| |||
| 276,431 | 249,840 | 265,591 |
Non-current liabilities | |||
Long-term borrowings | 62,000 | 92,250 | 69,800 |
Deferred tax | 5,255 | 5,487 | 5,522 |
67,255 | 97,737 | 75,322 | |
Current liabilities | |||
Bank overdrafts and loans | 1,744 | 7,074 | 8,168 |
Trade and other payables | 1,342 | 948 | 2,004 |
Current tax payable | 4,326 | 3,273 | 4,545 |
| 7,412 | 11,295 | 14,717 |
| |||
Total liabilities | 74,667 | 109,032 | 90,039 |
| |||
Total equity and liabilities | 351,098 | 358,872 | 355,630 |
GROUP CASHFLOW STATEMENT (UNAUDITED)
for the half year ended 30 September 2014
Half year | Half year | Year | |
ended | ended | ended | |
30.09.2014 | 30.09.2013 | 31.03.2014 | |
£000 | £000 | £000 | |
Cash flows from operating activities | |||
Profit from operations | 21,745 | 14,437 | 37,738 |
Adjustment for: | |||
Depreciation | 66 | 52 | 138 |
Loss on disposal of property, plant and equipment | - | 16 | 42 |
(Gain) on disposal of investment properties | - | (264) | (214) |
(Increase) in fair value of investment properties | - | - | (3,185) |
Operating cash flows before movement | |||
in working capital | 21,811 | 14,241 | 34,519 |
Decrease/(Increase) in inventories | 3,672 | (11,408) | (4,697) |
(Increase)/Decrease in receivables | (2) | 118 | (380) |
(Decrease)/Increase in payables | (662) | (683) | 373 |
Cash generated from operations | 24,819 | 2,268 | 29,815 |
| |||
Interest paid | (959) | (1,191) | (2,344) |
Income taxes paid | (4,584) | (3,665) | (6,908) |
Net cash inflow/(outflow) from operating activities | 19,276 |
(2,588) | 20,563 |
| |||
Investing activities | |||
Proceeds from disposal of investment properties | 54 | 2,018 | 2,373 |
Capital expenditure on investment properties | - | (275) | (518) |
Purchase of property, plant and equipment | (8) | - | (19) |
Proceeds from disposal of property, plant and equipment | - | 18 | 150 |
Net cash inflow from investing activities | 46 | 1,761 | 1,986 |
| |||
Cash flows from financing activities | |||
| |||
Increase in borrowings | - | 7,300 | - |
Repayment of borrowings | (7,764) | (587) | (15,305) |
Equity dividend paid | (5,848) | (4,873) | (6,823) |
Net cash (outflow)/inflow from financing activities | (13,612) | 1,840 | (22,128) |
| |||
Net increase in cash and cash equivalents | 5,710 | 1,013 | 421 |
| |||
Opening cash and cash equivalents | (6,144) | (6,565) | (6,565) |
Cash and cash equivalents at end of period | (434) | (5,552) | (6,144) |
GROUP CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the half year ended 30 September 2014
Half year | Half year | Year | |
ended | ended | ended | |
30.09.2014 | 30.09.2013 | 31.03.2014 | |
£000 | £000 | £000 | |
Shareholders' funds as at the beginning of the period | 265,591 |
243,972 | 243,972 |
Profit for the period | 16,688 | 10,741 | 28,442 |
Dividends | (5,848) | (4,873) | (6,823) |
Shareholders' funds at the end of the period | 276,431 | 249,840 | 265,591 |
~ Ends ~