MOUNTVIEW ESTATES P.L.C. 
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RNS Number : 9398I Mountview Estates PLC
23 June 2011
MOUNTVIEW ESTATES P.L.C. CHAIRMAN'S STATEMENT
The year ended 31 March 2011 has been a difficult one but the results are satisfactory and there has been good progress towards the changes that must be made for the future prosperity of the Company. The year ended 31 March 2010 saw a strong recovery from the disappointing results of the previous year but, as the realities of the country's economic situation became apparent under the new government, it has not been possible to maintain that recovery in its fullest form this year.
My suggestion at the interim stage that the second half of the Company's financial year might be as good as the first half happily proved to be accurate almost to the penny and the gross profit as a percentage of turnover has at least matched last year's performance. In the second half of this financial year the Company has made significant purchases and this trend has continued since 1 April 2011.
In a company as small as this each staff departure is a significant inconvenience but also a significant opportunity to make the changes that will enable the Company to progress towards a sound future. New recruitments have been made and further changes of personnel will be made as and when appropriate.
Following the acquisition of the Magdalen Park Estate portfolio at the end of January
2008 there was necessarily an emphasis on the repayment of debt and that has been achieved very successfully. Arguably that emphasis was overdone and the necessity for new purchases was overlooked. That necessity is being addressed but the level of
indebtedness is being carefully monitored.
Economic conditions are not expected to be easy during the coming year although interest rates presently remain at historic lows. The Company is well placed to take advantage of good purchasing opportunities and I expect the Company's portfolio of properties to be significantly larger by the end of the year. The coming year is about building for and preparing for the future so that we are well placed to take advantage when the housing market improves.
My staff and colleagues have continued to work hard but unfortunately in the prevailing market conditions their efforts have not brought the same results and rewards as last year. Nevertheless it is possible to maintain the final dividend at last year's increased level.
The final dividend of 115 pence per share in respect of the year ended 31 March 2011 recommended by your Board is payable on 15 August 2011 to shareholders on the Register of Members as at 15 July 2011. This will make a total dividend for the year ended 31 March 2011 of 165 pence per share which is 2.6 times covered by the earnings per share.
MOUNTVIEW ESTATES P.L.C. FINANCIAL HIGHLIGHTS
2011 2010 (Decrease) /Increase £ £ % Turnover (millions) 47.6 56.7 (16.05)https://rnssubmit.com/cws/Status/DynamicSource.aspx
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Gross Profit (millions) | 29.1 | 34.5 | (15.7) |
Profit Before Tax (millions) | 23.6 | 29.3 | (19.4) |
Profit Before Tax excluding investment properties revaluation (millions) | 21.1 | 27.1 | (22.1) |
Equity Holders' Funds (millions) | 214.9 | 203.1 | 5.8 |
Earnings per share (pence) | 435.3 | 554.8 | (21.5) |
Net assets per share | 55.1 | 52.1 | 5.7 |
Dividend per share (pence) | 165 | 165 | - |
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 115 pence per share are as follows:
Ex-dividend date 13 July 2011
Record date 15 July 2011
Payment date 15 August 2011
MOUNTVIEW ESTATES P.L.C. CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2011Year ended 31.03.2011 £000 | Year ended 31.03.2010 £000 | |
REVENUE | 47,655 | 56,697 |
Cost of sales | (18,548) | (22,191) |
GROSS PROFIT | 29,107 | 34,506 |
Administrative Expenses | (4,305) | (4,046) |
Operating profit before changes in fair value of investment properties | 24,802 | 30,460 |
Increase in fair value of investment properties | 2,454 | 2,142 |
PROFIT FROM OPERATIONS | 27,256 | 32,602 |
Change in fair value of derivatives | (292) | - |
Finance Costs | (3,404) | (3,347) |
PROFIT BEFORE TAXATION | 23,560 | 29,255 |
Taxation - current | (7,425) | (7,969) |
Taxation - deferred | 836 | 349 |
Total Taxation | (6,589) | (7,620) |
PROFIT ATTRIBUTABLE TO EQUITY SHAREHOLDERS | 16,971 | 21,635 |
Basic and diluted earnings per share (pence) | 435.3p | 554.8p |
MOUNTVIEW ESTATES P.L.C.
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 31 MARCH 2011ASSETS
As at As at
31.03.2011 31.03.2010
£000 £000
NON-CURRENT ASSETS
Property, plant and equipment 2,461 2,422
Investment properties 30,314 32,872
CURRENT ASSETS
32,775 35,294
Inventories of trading properties 259,462 256,964
Trade and other receivables 1,192 1,197
Cash and cash equivalents 116 443
260,770 258,604
TOTAL ASSETS 293,545 293,898
EQUITY AND LIABILITIES Capital and reserves attributable to equity holders of the company
Share Capital 195 195
Capital redemption reserve 55 55
Capital reserve 25 25
Other reserve 56 56
Cash flow hedge reserve (2,340) (3,640) Retained earnings 216,905 206,366
NON-CURRENT LIABILITIES
214,896 203,057
Long-term borrowings 50,000 65,000
Deferred Tax 7,321 8,157
CURRENT LIABILITIES
57,321 73,157
Bank overdrafts and loans 13,940 8,876
Trade and other payables 1,485 1,355
Current tax payable 3,271 3,813
Derivative financial instruments 2,632 3,640
21,328 17,684
TOTAL LIABILITIES 78,649 90,841
TOTAL EQUITY AND LIABILITIES 293,545 293,898
MOUNTVIEW ESTATES P.L.C. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2011Share Capital £000 | Capital Reserve £000 | Capital Redemption Reserve £000 | Cash Flow Hedge Reserve £000 | Other Reserves £000 | Retained Earnings £000 | Total £000 | |
Changes in Equity for year ended 31 March 2010 | |||||||
Balance as at 1 April 2009 | 195 | 25 | 55 | (3,614) | 56 | 190,773 | 187,490 |
Profit for the year | 21,635 | 21,635 | |||||
Movements in cash flow hedge | (26) | (26) | |||||
Dividends | (6,042) | (6,042) | |||||
Balance as at 31 March 2010 | 195 | 25 | 55 | (3,640) | 56 | 206,366 | 203,057 |
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Changes in equity for
year ended 31 March 2011 Balance as at 1 April 2010 195 25 55 (3,640) 56 206,366 203,057 Reduction in reserve 1,300 1,300 Profit for the year 16,971 16,971 Dividends (6,432) (6,432) Balance as at 31 March 2011 195 25 55 (2,340) 56 216,905 214,896 MOUNTVIEW ESTATES P.L.C. GROUP CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2011 Cash flow from operating activities Year Year ended ended 31.03.2011 31.03.2010 £000 £000 Profit from operations 27,256 32,602 Adjustment for: Depreciation 174 156 Loss on disposal of property, plant & equipment 11 5 (Increase) in fair value of investment properties (2,454) (2,142) Operating cash flow before movement in working capital 24,987 30,621 (Increase)/Decrease in inventories (2,498) 11,841 Decrease/(Increase) in receivables 5 (538) Increase/(Decrease) in payables 125 (822) Cash generated from operations 22,619 41,102 Interest paid (3,404) (3,347) Income taxes paid (8,027) (6,410) Net cash inflow from operating activities 11,188 31,345 Investing activities Proceeds from disposal of investment properties 6,600 1,895 Purchase of property, plant and equipment (309) (11) Capital expenditure on investment properties (1,438) (434) Net cash inflow from investing activities 4,853 1,450 Cash flow from financing activities Repayment of borrowings (14,700) (23,800) Equity dividend paid (6,432) (6,042) Net cash (outflow) from financing activities (21,132) (29,842) Net increase/(decrease) in cash and cash equivalent (5,091) 2,953 Cash and cash equivalent at beginning of the period (8,258) (11,211) Closing cash and cash equivalent at end of year (13,349) (8,258) MOUNTVIEW ESTATES P.L.C. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2011https://rnssubmit.com/cws/Status/DynamicSource.aspx
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Year Year
ended ended 31.03.2011 31.03.2010 £000 £000 Profit for the year 16,971 21,635 Net (expense) recognised directly in equity - (26) Total recognised income 16,971 21,609 The total recognised income in the year is attributable to: Equity shareholders of the parent 16,971 21,609Notes 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 2011 or 31 March 2010 within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 March 2010 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.
Financial statements for the year ended 31 March 2011 will be presented to the Members at the Annual General Meeting on 10 August 2011. The auditors have indicated that their report on these Financial Statements will be unqualified.
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
2011 AGM are expected to comply fully with IFRS.
The preliminary announcement has been prepared under the historical cost convention as modified by the revaluation of investment properties.
This information is provided by RNS
The company news service from the London Stock Exchange
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