Final Results

RNS Number : 3632G

Mountview Estates PLC

28 June 2012

MOUNTVIEW ESTATES P.L.C.

CHAIRMAN'S STATEMENT

Introduction

As we celebrate our 75^th anniversary, I am pleased to report that the last 12 months have seen Mountview continue to record good financial performance, against the backdrop of a very challenging economic climate.

Results

Although turnover and profit before tax declined compared to 2011, equity holders' funds, earnings per share and net assets all showed an improvement and we have therefore been able to maintain dividends at the same level as the previous year.

The final dividend of 115p per share in respect of the year ended 31 March 2012 recommended by your Board is payable on 20 August 2012 to shareholders on the Register of Members as at 20 July 2012. This will make a total dividend for the year ended 31 March 2012 of 165p per share which is 2.7 times covered by the earnings per share.

Building on 75 years of achievement

Our key strength is a sound business model executed by a team of skilled professionals, and this has again been at the heart of our performance, just as it has since Mountview Estates Ltd was incorporated on 21 May 1937. In those days, barely two and a half years before the onset of the Second World War, mere survival was an achievement, but the Company gradually grew and has indeed flourished since the millennium.

In 1960, the Company obtained a full quote on the London Stock Exchange when shares of five shillings nominal value were sold for eleven shillings (25p and 55p respectively). Subsequent split and scrip issues mean that today's shares have a nominal value of 5p. In 1982, the Company re-registered as Mountview Estates P.L.C. and the 5p shares now change hands at around £43.75.

These last 75 years have been characterised by steady growth and solid achievement. During the year under review, and despite economic uncertainties, we have continued to use our resources wisely investing in properties where we see good value and potential profits. We made a number of such purchases during the year, investing some £47 million in new properties, complementing the geographical reach of our portfolio as well as buying properties in London locations which, for so long, has been our core market.

I am proud of our track record and privileged to work alongside a fine team that shares my determination to continue to maintain our momentum. We may not be the most adventurous of listed companies, but by means of our patient and conservative policies we have been consistently profitable and pay good dividends. By any measure, a dividend yield of 3.9% at the current share price is an excellent performance in the present economic climate.

I am concerned that our senior personnel should be sufficiently incentivised to continue producing good profits. Our earnings per share have risen by nearly 3% and it is important that the Company retains excellent people. To that end we need to pay attractive salaries to our executives and thus in due course to facilitate the recruitment of their successors.

Looking ahead

The UK economy has faced many challenges since 1937 and will doubtless do so again in the future. Our Company has ridden the peaks and troughs of the last 75 years, and overcome the barriers that have from time to time threatened our progress. Although we have increased our borrowings to take advantage of opportunities that have been presented to us, they remain relatively low compared to other companies and the Board is comfortable with the current debt levels. We consider we are well placed in the current difficult environment to make further advances when conditions improve.

D.M. SINCLAIR

Chairman

MOUNTVIEW ESTATES P.L.C.

FINANCIAL HIGHLIGHTS

	2012	2011	(Decrease) /Increase
	£	£	%

Turnover (millions)	42.9	47.7	(10.1)

Gross Profit (millions)	27.2	29.1	(6.5)

Profit Before Tax (millions)	22.8	23.6	(3.4)

Profit Before Tax excluding investment properties revaluation (millions)	19.6	21.1	(7.1)

Equity Holders' Funds (millions)	227.2	214.9	5.7

Earnings per share (pence)	447.7	435.3	2.8

Net assets per share	58.3	55.1	5.8

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

18 July 2012

Record date

20 July 2012

Payment date

20 August 2012

MOUNTVIEW ESTATES P.L.C.

CONSOLIDATED INCOME STATEMENT

FOR THE YEAR ENDED 31 MARCH 2012

	Year	Year
	ended	ended
	31.03.2012	31.03.2011
	£000	£000

REVENUE	42,931	47,655

Cost of sales	(15,741)	(18,548)

GROSS PROFIT	27,190	29,107

Administrative Expenses	(3,773)	(4,454)
Gain on sale of investment properties	484	149

Operating profit before changes in fair value of investment properties	23,901	24,802

Increase in fair value of investment properties	3,208	2,454

PROFIT FROM OPERATIONS	27,109	27,256

Change in fair value of derivatives	(271)	(292)
Net Finance Costs	(4,033)	(3,404)

PROFIT BEFORE TAXATION	22,805	23,560

Taxation - current	(6,648)	(7,425)
Taxation - deferred	1,298	836

Taxation	(5,350)	(6,589)

PROFIT ATTRIBUTABLE TO EQUITY SHAREHOLDERS	17,455	16,971

Basic and diluted earnings per share (pence)	447.7p	435.3p

MOUNTVIEW ESTATES P.L.C.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

FOR THE YEAR ENDED 31 MARCH 2012

	As at	As at
	31.03.2012	31.03.2011
	£000	£000
ASSETS

NON-CURRENT ASSETS
Property, plant and equipment	2,441	2,461
Investment properties	26,537	30,314

	28,978	32,775
CURRENT ASSETS
Inventories of trading properties	301,072	259,462
Trade and other receivables	1,371	1,192
Cash at Bank	987	116


	303,430	260,770

TOTAL ASSETS	332,408	293,545

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	(1,040)	(2,340)
Retained earnings	227,928	216,905

	227,219	214,896
NON-CURRENT LIABILITIES
Long-term borrowings	90,000	50,000
Deferred Tax	6,023	7,321

	96,023	57,321
CURRENT LIABILITIES
Bank overdrafts and loans	3,364	13,940
Trade and other payables	1,385	1,485
Current tax payable	2,814	3,271
Derivative financial instruments	1,603	2,632

	9,166	21,328

TOTAL LIABILITIES	105,189	78,649

TOTAL EQUITY AND LIABILITIES	332,408	293,545

MOUNTVIEW ESTATES P.L.C.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2012


			Capital	Cash Flow
	Share	Capital	Redemption	Hedge	Other	Retained
	Capital	Reserve	Reserve	Reserve	Reserves	Earnings	Total
	£000	£000	£000	£000	£000	£000	£000


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

Changes in equity for
year ended 31 March 2012

Balance as at 1 April 2011	195	25	55	(2,340)	56	216,905	214,896

Reduction in hedge reserve				1,300			1,300

Profit for the year						17,455	17,455

Dividends						(6,432)	(6,432)

Balance as at 31 March 2012	195	25	55	(1,040)	56	227,928	227,219

MOUNTVIEW ESTATES P.L.C.

GROUP CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 MARCH 2012

	Year	Year
	Ended	ended
	31.03.2012	31.03.2011
	£000	£000
Cash flow from operating activities

Profit from operations	27,109	27,256
Adjustment for:
Depreciation	166	174
Loss on disposal of property, plant & equipment	10	11
Gain on disposal of investment properties	(484)	-
(Increase) in fair value of investment properties	(3,208)	(2,454)

Operating cash flow before movement in working capital	23,593	24,987

(Increase) in inventories	(41,610)	(2,498)
(Increase)/Decrease in receivables	(179)	5
(Decrease)/Increase in payables	(100)	125

Cash generated from operations	(18,296)	22,619

Interest paid	(4,033)	(3,404)
Income taxes paid	(7,106)	(8,027)

Net cash (outflow)/inflow from operating activities	(29,435)	11,188

Investing activities
Proceeds from disposal of investment properties	8,895	6,600
Capital expenditure on investment properties	(1,426)	(1,438)
Purchase of property, plant and equipment	(160)	(309)
Proceeds from disposal of property, plant and equipment	4	-

Net cash inflow from investing activities	7,313	4,853

Cash flow from financing activities
Increase in borrowings	40,000	-
Repayment of borrowings	(200)	(14,700)
Equity dividend paid	(6,432)	(6,432)

Net cash inflow/(outflow) from financing activities	33,368	(21,132)

Net increase/(decrease) in cash and cash equivalent	11,246	(5,091)
Opening cash and cash equivalents	(13,349)	(8,258)
Cash and cash equivalent at end of year	(2,103)	(13,349)

Notes 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 2012 or 31 March 2011 within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 March 2011 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 2012 will be presented to the Members at the Annual General Meeting on 15 August 2012. 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 2012 AGM are expected to comply fully with IFRS.