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Mountview Estates. (MTVW)

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Thursday 25 November, 2021

Mountview Estates.

Unaudited Interim Results for 6m ended 30 Sep 2021

RNS Number : 5848T
Mountview Estates PLC
25 November 2021
 

Mountview Estates P.L.C.

Interim Results

25 November 2021

 

 

MOUNTVIEW ESTATES P.L.C.

 

("Mountview" or "the Group" or "the Company")

 

UNAUDITED INTERIM RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER 2021

 

Mountview is pleased to announce its unaudited interim results for the six months ended 30 September 2021.

 

 

OUR PERFORMANCE

 

Turnover at £30.7 million up by 36.4%  (2020 - £22.5m)

 

Gross profit at £18.0 million up by 12.5%  (2020 - £16.0m)

 

Profit before tax at £15.6 million up by 15.5%  (2020 - £13.5m)

 

Earnings per share at 290.3 pence up by 3.5%  (2020 - 280.4p)

 

Net assets per share at £101.9 up by 3.8%  (2020 - £98.2)

 

 

 

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 exceptional interim dividend payment of 500p per share (which includes a special dividend of 275p per share) are as follows:

 

 

Ex-dividend date

 

17 February 2022

Record date

 

18 February 2022

Payment date

 

28 March 2022

 

 

 

CHIEF EXECUTIVE OFFICER'S STATEMENT

 

At the Annual General Meeting held on 11 August 2021 those shareholders deemed to be independent exercised their right to reject the re-election of Mr. Anthony Powell and Ms. Mhairi Archibald as independent Non-Executive Directors. At the General Meeting held in accordance with the Listing Rules of the Financial Conduct Authority on 22 November 2021, when all shareholders were entitled to vote, it was resolved to re-elect Mr. Anthony Powell and Ms. Mhairi Archibald as Directors of the Company.  Thus the status quo is maintained.

 

TRADING

Brexit and Covid-19 have dominated the economic commentary this year and the Government have announced the impending tax increases by which they will seek to recover the vast sums of money which they made available to keep the country afloat.  This Company is perhaps fortunate to be trading in a sector that has not been heavily affected by the problems that have beset others and our years of financial prudence have enabled us to continue to make good profits.

Our year ending 31 March 2021 finished with a flourish because all the auctioneers held extra sales in anticipation of the stamp duty holiday finishing at 31 March 2021.

This year may have started quietly but the stamp duty holiday was extended and phased out gently so that sales activity continues strongly.

The results to 30 September 2021 are heavily influenced by the need to provide for deferred taxation at 25%, the rate of Corporation Tax which is to be levied from 1 April 2023.  I must emphasize that this taxation only becomes payable following the disposal of the assets concerned and thus the necessary funding will have been generated and this anticipated taxation has no effect on present cash flow.

I am happy to repeat again that we have not furloughed any staff or reduced staff numbers in any other way.  The Company has generated strong cash flow and we are thus in a good position to shield ourselves from the difficult times that may lie ahead.  I believe that this should include not only our shareholders but also our workforce whose hard work, loyalty and dedication makes all this possible.

EXCEPTIONAL INTERIM DIVIDEND

The interim dividend is at an exceptional rate of 500p per share in respect of the year ending 31 March 2022 and is payable on 28 March 2022 to shareholders on the Register of Members as at 18 February 2022. This represents an increased interim dividend of 225p per share and a special dividend of 275p per share.  Please note that this will be made as one payment of 500p per share. The Board believes a special dividend to be warranted this year because of exceptional cash flow and this puts us in position to not only pay this special dividend and all our regular outgoings but also to be able to take advantage of any purchasing opportunities that may arise.  It is not anticipated that this interim dividend will limit the final dividend payable in August 2022 in any way, but it would be prudent to presume that the interim dividend payable in March 2023 will be maintained at the new increased level of 225p per share.

OUTLOOK

Good purchases are vital to the future prosperity of the Company and our financial strength will enable us to compete when good opportunities occur.  We have a long and successful history and we are all working hard for that to continue.

 

D.M. SINCLAIR

Chief Executive Officer

25 November 2021

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

for the half year ended 30 September 2021

 

 


Half year ended

Half year ended

Year ended


30.09.2021

30.09.2020

31.03.2021


£000

£000

£000





Revenue

30,711

22,450

65,730





Cost of Sales

(12,754)

(6,477)

(22,508)





Gross Profit

17,957

15,973

43,222





Administrative expenses

(2,205)

(2,168)

(5,865)





Gain on sale of investment properties

53

-

-





Operating profit before changes in




fair value of investment properties

15,805

13,805

37,357





Increase in fair value of investment properties

-

-

1,452





Profit from operations

15,805

13,805

38,809 

Net finance costs

(181)

(319) 

(675)





Profit before taxation

15,624

13,486

38,134





Taxation - current

(3,062)

(2,555)

(6,966)

Taxation - deferred

(1,242)

-

(275)





Taxation

(4,304)

(2,555)

(7,241)





Profit attributable to equity shareholders and total comprehensive income

11,320

10,931

30,893





Basic and diluted earnings per share (pence)

290.3p

280.4p

792.3p





 

 

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

 

 



 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)

for the half year ended 30 September 2021

 

 


Half year ended

Half year ended

Year ended


30.09.2021

30.09.2020

31.03.2021


£000

£000

£000

Assets




Non-current assets




Property, plant and equipment

1,576

1,638

1,606

Investment properties

25,007

24,122

25,574


26,583

25,760

27,180





Current assets




Inventories of trading properties

394,921

409,295

398,166

Trade and other receivables

1,298

1,825

1,417

Cash and cash equivalents

1,012

608

597


397,231

411,728

400,180









Total assets

423,814

437,488

427,360





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

397,087

382,376

394,540


397,418

382,707

394,871





Non-current liabilities




Long-term borrowings

15,500

44,700

20,600

Deferred tax

5,593

4,076

4,351


21,093

48,776

24,951





Current liabilities




Bank overdrafts and other short term loans

1,497

3,011

1,280

Trade and other payables 

1,032

528

2,142

Current tax payable

2,774

2,466

4,116


5,303

6,005

7,538









Total liabilities

26,396

54,781

32,489





Total equity and liabilities

423,814

437,488

427,360

 

 

CONSOLIDATED CASHFLOW STATEMENT (UNAUDITED)

for the half year ended 30 September 2021

 

 



Half year

Half year

Year



ended

ended

ended



30.09.2021

30.09.2020

31.03.2021



£000

£000

£000

Cash flows from operating activities










Profit from operations


15,805

13,805

35,809

Adjustment for:





Depreciation


30

32

64

(Gain) on sale of investment properties


(53)

-

-

(Increase) in fair value of investment properties


-

-

(1,452)






Operating cash flows before movement in working capital


15,782

13,837

37,421











Decrease/(Increase) in inventories


3,245

(17,226)

(6,097)

Decrease in receivables


119

1,851

2,259

(Decrease) in payables


(1,110)

(4,302)

(2,688)






Cash generated from operations


18,036

(5,840)

30,895






Interest paid


(181)

(319)

(675)

Income taxes paid


(4,404)

(3,539)

(6,300)






Net cash Inflow/(Outflow)from operating activities

 


13,451

(9,698)

23,920

Investing activities





Proceeds from disposal of investment properties


620

-

-











Net cash inflow from investing activities


620

-

-






Cash flows from financing activities










(Repayment)/Increase of borrowings


(4,552)

13,381

(10,116)

Equity dividend paid


(8,773)

(7,798)

(15,596)






Net cash (Outflow)/Inflow from financing activities

 


(13,325)

5,583

(25,712)






Net Increase/(Decrease) in cash and cash equivalents


746

(4,115)

(1,792)






Opening cash and cash equivalents


266

2,058

2,058






Cash and cash equivalents at end of period


1,012

(2,057)

266






 

 

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

for the half year ended 30 September 2021

 

 


Half year

Half year

Year


ended

ended

ended


30.09.2021

30.09.2020

31.03.2021


£000

£000

£000





Shareholders' funds as at the beginning of the period

394,871

379,574

379,574





Profit for the period

11,320

10,931

30,893





Dividends

(8,773)

(7,798)

(15,596)





Shareholders' funds at the end of the period

397,418

382,707

394,871

 

 

 

Notes to the Half Year Report

 

Basis of preparation

 

These condensed consolidated interim financial statements have been prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and in accordance with UK adopted International Accounting Standard 34 (IAS 34) "Interim Financial Reporting". The condensed consolidated interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 March 2021 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 2021.

 

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 made up to the reporting date.

 

Subsidiaries are fully consolidated from the date on which control is transferred to the Group.

 

Control is recognised when the Group is exposed to, or has rights to, variable returns from its investment in the entity and has the ability to affect these returns through its power over the relevant activities of the entity.

 

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 and unrealised gains on transactions between Group companies 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 2021 have been reported on by the Group's auditors and filed with the Registrar of Companies. The report of the auditors was unqualified and did not contain any statement under Section 498 of the Companies Act 2006.

 

The condensed consolidated interim financial statements were approved by the Board of Directors on 25 November 2021. 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 inside information as stipulated under the UK version of the Market Abuse Regulation No 596/2014 which is part of English Law by virtue of the European (Withdrawal) Act 2018, as amended. On publication of this announcement via a Regulatory Information Service, this information is considered to be in the public domain.

 

 

 

~ Ends ~

 

 

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