Interim Results

RNS Number : 9952W

Mountview Estates PLC

30 November 2010

 



Chairman's Statement

On the following pages are the unaudited Accounts for the six months ended 30 September 2010. Revenue is down by only 4% whereas earnings per share are down by nearly 8.5%. This is explained almost entirely by the increase in finance and administrative costs.

The new government has been in office for six months and much has been said about cuts in government spending and increases in taxation. Apart from the increase in value added tax to 20% from the beginning of January the finer detail of most of the other measures has yet to be published. It appears that the impact of these measures will be in 2011/2012 and subsequent financial years and so it is reasonable to believe that the second half of the company's financial year can be as good as the first half.

Inflation is now above 3% and this may necessitate the raising of base rate and it is still difficult for first time buyers to get mortgages and therefore trading conditions could be difficult during 2011. Nevertheless the further repayment of nearly £10 million of borrowings over the last six months has put the company in a strong financial position with about £40 million available to invest and we hope to take advantage of good purchasing opportunities during the next eighteen months thus ensuring good profits in years to come.

Jacqueline Murphy resigned as a director and left the company as at 31 August 2010. It is never the right time for a valued employee to depart but it does give an ideal opportunity for the company to review its procedures and introduce any desired changes.

With effect from 1 November 2010 Alistair Sinclair has been appointed a non-executive director of the company. Alistair is the son of the late Frank Sinclair, who co-founded the company, and his 34 years of experience in the banking industry will provide an invaluable contribution to the company.

The interim dividend is maintained at 50 pence per share and will be payable on 28 March 2011 to shareholders on the register at 25 February 2011.

GROUP INCOME STATEMENT (UNAUDITED)

	Half year ended 30.09.2010 £000	Half year ended 30.09.2009 £000	Year ended 31.03.2010 £000
Revenue	24,265	25,274	56,697
Cost of Sales	(9,091)	(9,382)	(22,191)
Gross Profit	15,174	15,892	34,506
Administrative expenses	(1,782)	(1,487)	(4,046)
Operating profit before changes in
fair value of investment properties	13,392	14,405	30,460
Increase in fair value of investments	-	-	2,142
Profit from operations	13,392	14,405	32,602
Net finance costs	(1,751)	(1,560)	(3,347)
Profit before taxation	11,641	12,845	29,255
Taxation - current	(3,604)	(3,700)	(7,969)
Taxation - deferred	443	112	349
Taxation	(3,161)	(3,588)	(7,620)
Profit attributable to equity shareholders	8,480	9,257	21,635
Basic and diluted earnings per share (pence)	217.5p	237.4p	554.8p

All items within the consolidated income statement relate to continuing operations.

GROUP STATEMENT OF FINANCIAL POSITION (UNAUDITED)

	As at	As at	As at
	30.09.2010	30.09.2009	31.03.2010
	£000	£000	£000
Assets
Non-current assets
Property plant and equipment	2,453	2,499	2,422
Investment properties	32,348	31,916	32,872
	34,801	34,415	35,294
Current assets
Inventories of trading properties	252,966	263,254	256,964
Trade and other receivables	1,738	881	1,197
Cash and cash equivalents	115	238	443
	254,819	264,373	258,604
Total assets	289,620	298,788	293,898
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 reserve	56	56	56
Cash flow hedge reserve	(3,640)	(3,119)	(3,640)
Retained earnings	210,363	195,937	206,366
	207,054	193,149	203,057
Non-current liabilities
Long-term borrowings	55,000	76,000	65,000
Deferred tax	7,713	8,394	8,157
	62,713	84,394	73,157
Current liabilities
Bank overdrafts and loans	11,768	13,906	8,876
Trade and other payables	920	502	1,355
Current tax payable	3,525	3,718	3,813
Derivative financial instruments	3,640	3,119	3,640
	19,853	21,245	17,684
Total liabilities	82,566	105,639	90,841
Total equity and liabilities	289,620	298,788	293,898

GROUP CASHFLOW STATEMENT (UNAUDITED)

	Half year	Half year	Year
	ended	ended	ended
	30.09.2010	30.09.2009	31.03.2010
	£000	£000	£000
Cash flows from operating activities
Profit from operations	13,392	14,405	32,602
Adjustment for:
Depreciation	75	76	156
(Gain)/Loss on disposal of property, plant and equipment	(17)	-	5
(Increase) in fair value of investment properties	-	-	(2,142)
Cash flow from operations before movement
in working capital	13,450	14,481	30,621
Decrease in inventories	3,999	5,552	11,841
(Increase) in receivables	(541)	(221)	(538)
(Decrease) in payables	(488)	(1,556)	(822)
Cash generated from operations	16,420	18,256	41,102
Interest paid	(1,751)	(1,564)	(3,347)
Income taxes paid	(3,891)	(2,356)	(6,410)
Net cash inflow from operating activities	10,778	14,336	31,345
Investing activities
Proceeds from disposal of investment properties	1,100	650	1,895
Proceeds from disposal of property, plant and equipment	39	-	-
Purchase of property, plant and equipment	(129)	(7)	(11)
Capital expenditure on investment properties	(525)	(371)	(434)
Net cash inflow from investing activities	485	272	1,450
Cash flows from financing activities
Repayment of borrowings	(9,800)	(12,700)	(23,800)
Equity dividend paid	(4,483)	(4,093)	(6,042)
Net cash (outflow) from financing activities	(14,283)	(16,793)	(29,842)
Net (decrease)/increase in cash and cash equivalents	(3,020)	(2,185)	2,953
Opening cash and cash equivalents	(8,258)	(11,211)	(11,211)
Closing cash and cash equivalents	(11,278)	(13,396)	(8,258)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Half year	Half year	Year
	ended	ended	ended
	30.09.2010	30.09.2009	31.03.2010
	£000	£000	£000
Shareholders' funds as at the beginning of the period	203,057	187,490	187,490
Profit for the period	8,480	9,257	21,635
Change in fair value of cash flow hedge	-	495	(26)
Dividends	(4,483)	(4,093)	(6,042)
Shareholders' funds at the end of the period	207,054	193,149	203,057

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	Half year	Half year	Year
	ended	ended	ended
	30.09.2010	30.09.2009	31.03.2010
	£000	£000	£000
Profit for the year	8,480	9,257	21,635
Change in fair value of cash flow hedge	-	495	(26)
Total recognised income	8,480	9,752	21,609
The total recognised income in the year is attributable to: Equity shareholders of the parent	8,480	9,752	21,609

 

END

 

 

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