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Mountview Estates PLC  -  MTVW   

Half-year Report

Released 07:00 24-Nov-2016

RNS Number : 9635P
Mountview Estates PLC
24 November 2016
 

Mountview Estates P.L.C.

Interim Results

24 November 2016

 

 

 

MOUNTVIEW ESTATES P.L.C.

 

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

 

UNAUDITED INTERIM RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER 2016

 

 

Mountview is pleased to announce its unaudited interim results for the six months ended 30 September 2016.

 

 

OUR PERFORMANCE

 

Turnover at £34.0 million down by 20.6% (2015 - £42.8m)

 

Gross profit at £24.1 million down by 14.8% (2015- £28.3m)

 

Profit before tax at £21.7 million down by 16.2% (2015 - £25.9m)

 

Earnings per share at 446.9 pence down by 15.8% (2015 - 531.0p)

 

Net assets per share at £83.4 up by 7.9% (2015 - £77.3)

 

 

 

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 200p per share are as follows:

 

 

Ex-dividend date        16 February 2017

 

Record date                17 February 2017

 

Payment date              27 March 2017

 

  

Chief Executive Officer's Statement

 

One must admit to a degree of disappointment when profits go down, but the Company remains financially sound.  With these interim results comparing favourably with those of two years ago we may consider that we have survived quite well the fiscal measures enacted by the then Chancellor of the Exchequer before 1 April 2016.

 

 

TRADING

 

The legislation which was to be effective from 1 April caused an acceleration of transactions in March this year.  These transactions would normally have completed in our new financial year, but their early completion resulted in a drop of over 20% in the number of transactions in the six months ended 30 September 2016.    Turnover is down by £2.9 million compared with the half year ended 30 September 2014, but Gross Profit at £24.1 million is exactly the same.  Profit before tax and earnings per share both compare favourably with those of two years ago and net assets per share have risen by 17.5%.

 

 

INTERIM DIVIDEND

 

The interim dividend is maintained at 200p per share in respect of the year ending 31 March 2017 and is payable on 27 March 2017 to shareholders on the Register of Members as at 17 February 2017.

 

 

CURRENT TRADING

 

Whilst fewer acquisitions have been made during the first six months they have been of higher average value with the exception of one outstanding life tenancy acquired during the six months ended 30 September 2015.  Gearing remains at a comfortably modest level.

 

 

OUTLOOK

 

The reduction in base rate has helped but it was more about undoing the effects of legislation which came into effect on 1 April 2016 than any perceived effects of "Brexit".  With the possibility of a more balanced attitude towards property taxation we can view the Company's prospects with equanimity.

 

 

D.M. SINCLAIR

Chief Executive Officer

24 November 2016

  

 

 

GROUP STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

for the half year ended 30 September 2016

 

 

 

Half year ended 30.09.2016

£000

Half year

ended

30.09.2015

£000

Year

ended

31.03.2016

£000

 

 

 

 

 

 

 

 

Revenue

34,047

42,769

79,765

 

 

 

 

Cost of Sales

(9,908)

(14,448)

(26,751)

 

 

 

 

Gross Profit

24,139

28,321

53,014

 

 

 

 

Administrative expenses                                                      

(1,930)

(2,010)

(5,148)

 

 

 

 

Gain on sale of investment properties

-

197

197

 

 

 

 

Operating profit before changes in

 

 

 

fair value of investment properties

22,209

26,508

48,063

 

 

 

 

Increase in fair value of investment properties

-

-

1,504

 

 

 

 

Profit from operations

22,209

26,508

49,567

Net finance costs

(482)

(606)

(1,179)

 

 

 

 

Profit before taxation

21,727

25,902

48,388

 

 

 

 

Taxation - current

(4,356)

(5,400)

(9,593)

Taxation - deferred

54

202

(83)

 

 

 

 

Taxation

(4,302)

(5,198)

(9,676)

 

 

 

 

Profit attributable to equity Shareholders  

17,425

20,704

38,712

 

 

 

 

Basic and diluted earnings per share (pence)

446.9p

531.0p

992.9 p

 

 

 

 

 

 

 

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

 

 

 

GROUP STATEMENT OF FINANCIAL POSITION (UNAUDITED)

for the half year ended 30 September 2016

 

 

 

Half year ended

Half year ended

Year ended

 

30.09.2016

30.09.2015

31.03.2016

 

£000

£000

£000

Assets

 

 

 

Non-current assets

 

 

 

Property, plant and equipment

1,878

1,954

1,911

Investment properties

29,698

27,896

29,448

 

31,576

29,850

31,359

 

 

 

 

Current assets

 

 

 

Inventories of trading properties

338,921

330,867

334,108

Trade and other receivables

1,559

1,760

1,720

Cash and cash equivalents

675

682

1,706

 

341,155

333,309

337,534

 

 

 

 

 

 

 

 

Total assets

372,731

363,159

368,893

 

 

 

 

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

324,947

301,211

311,421

 

325,278

301,542

311,752

 

 

 

 

Non-current liabilities

 

 

 

Long-term borrowings

35,600

49,600

39,700

Deferred tax

5,287

5,055

5,342

 

40,887

54,655

45,042

 

 

 

 

Current liabilities

 

 

 

Bank overdrafts and loans

1,467

991

3,625

Trade and other payables 

415

628

3,000

Current tax payable

4,684

5,343

5,474

 

6,566

6,962

12,099

 

 

 

 

 

 

 

 

Total liabilities

47,453

61,617

57,141

 

 

 

 

Total equity and liabilities

372,731

363,159

368,893

 

 

 

 

 

GROUP CASHFLOW STATEMENT (UNAUDITED)

for the half year ended 30 September 2016

 

 

 

Half year

Half year

Year

 

ended

ended

ended

 

30.09.2016

30.09.2015

31.03.2016

 

£000

£000

£000

Cash flows from operating activities

 

 

 

 

 

 

 

Profit from operations

22,209

26,508

49,567

Adjustment for:

 

 

 

Depreciation

34

55

113

(Gain) on disposal of investment properties

-

(197)

(197)

(Increase) in fair value of investment properties

-

-

(1,504)

 

 

 

 

Operating cash flows before movement

22,243

26,366

47,979

in working capital

 

 

 

 

 

 

 

(Increase)   in inventories

(4,813)

(7,847)

(11,088)

Decrease in receivables

161

188

228

(Decrease)/Increase in payables

(1,999)

(1,715)

657

 

 

 

 

Cash generated from operations

15,592

16,992

37,776

 

 

 

 

Interest paid

(482)

(606)

(1,179)

Income taxes paid

(5,147)

(1,633)

(5,693)

 

 

 

 

Net cash inflow from operating activities

9,963

14,753

30,904

Investing activities

 

 

 

Proceeds from disposal of investment properties

-

1,700

1,700

Capital expenditure on investment properties

(250)

-

(48)

Purchase of property, plant and equipment

(2)

(1)

(16)

 

 

 

 

Net cash inflow from investing activities

(252)

1,699

1,636

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

Repayment of borrowings

(4,100)

(10,649)

(20,725)

Equity dividend paid

(3,899)

(6,823)

(14,621)

 

 

 

 

Net cash (outflow) from financing activities

(7,999)

(17,472)

(35,346)

 

 

 

 

Net increase/(decrease) in cash and cash equivalents

1,712

(1,020)

(2,806)

 

 

 

 

Opening cash and cash equivalents

(1,919)

887

887

 

 

 

 

Cash and cash equivalents at end of period

(207)

(133)

(1,919)

 

 

GROUP CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

for the half year ended 30 September 2016

 

 

 

 

Half year

Half year

Year

 

ended

ended

ended

 

30.09.2016

30.09.2015

31.03.2016

 

£000

£000

£000

 

 

 

 

 

 

 

 

Shareholders' funds as at the beginning of the period 

311,752

 

287,661

287,661

 

 

 

 

Profit for the period

17,425

20,704

38,712

 

 

 

 

Dividends

(3,899)

(6,823)

(14,621)

 

 

 

 

Shareholders' funds at the end of the period

325,278

301,542

311,752

 

 

Notes to the Half Year Report

 

Basis of preparation

 

These condensed interim financial statements are unaudited and do not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006.  This condensed consolidated interim financial information has been prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and International Accounting Standard 34 (IAS 34) "Interim Financial Reporting" as adopted by the European Union.  The interim condensed financial statements should be read in conjunction with the annual statements for the year ended 31 March 2016 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 2016.

 

The Group's published financial statements for the year ended 31 March 2016 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.

 

Basis of consolidation

 

The Group's financial statements incorporate the results of Mountview Estates P.L.C. and all of its subsidiary undertakings.  Control is achieved where the Company has the power to govern the financial and operating policies of an investee enterprise so as to obtain benefits from its activities.  The Group exercises control through voting rights.

 

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 between Group enterprises are eliminated on consolidation within the consolidated accounts.  Consistent accounting policies have been used across the Group.

 

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 information which, prior to its disclosure, was inside information for the purposes of the Market Abuse Regulation.

 

 

 

~ Ends ~

 

 

For further information on the Company, visit: www.mountviewplc.co.uk 

SPARK Advisory Partners Limited (Financial Adviser)   www.sparkadvisorypartners.com 

Miriam Greenwood                                                      0203 368 3553

Mark Brady                                                                  0203 368 3551

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Half-year Report - RNS