Preliminary Results

Mountview Estates PLC 22 June 2006 MOUNTVIEW ESTATES PLC Preliminary Results Chairman's Statement In my statement, which accompanied our interim Report, I stated that those Accounts were our first to be prepared under the new International Financial Reporting Standards. I think it appropriate to state that this is the first preliminary statement to be prepared under the new International Financial Reporting Standards, and that the figures for year ended 31 March 2005 have been adjusted so as to provide true comparisons. Opposite are the financial highlights for the year ended 31 March 2006. At 30 September 2005 our Profit before Taxation was down by almost £3.7 million for the six months but for the full year to 31 March 2006 it is down by less than £2.2 million. This turnround of more than £1.5 million and an encouraging start to our new financial year suggest that we have arrested our decline and may even be able to look forward to profits resuming an upward trend. The last few months have seen a greater urgency in the market place than had been the case for the previous eighteen months. In particular the auction rooms have been very busy. Our rental income continues to hold up well and recently sales revenues have shown renewed strength. These combined with reduced borrowings and lower interest rates give cause for optimism. Nevertheless the need for firm financial control continues. The cost of maintaining the properties, making the necessary improvements to enhance rental income and ensuring that properties are in optimum condition at the point of sale is always likely to increase because of the higher expectations of what landlords should provide. The costs of administering a company and fulfilling its statutory obligations continue to rise and I believe that we have done well to contain these costs as nearly as we have. Although it may be some time before we are able to repeat the record profits of two years ago we are now operating at a level which compares very favourably with the 1990s and with continuing strong financial and internal controls there is reasonable expectation that profits may ease forward once more. This has been a difficult year but I believe that we have made the right decisions. My staff and colleagues have rallied round and I thank them all for their endeavours and I look forward to the day when increased profits may bring them increased rewards. Despite the fall in profits your Board is recommending an increased final dividend of 86 pence per share in respect of the year ended 31 March 2006. This dividend is payable on 21 August 2006 to shareholders on the Register of Members as at 21 July 2006. This will make a total dividend for the year ended 31 March 2006 of 130 pence per share which is more than three times covered by the earnings per share of 408.4 pence. Last year I made reference to the fact that the Sinclair family has always had substantial shareholdings in the Company and the family grouping has been interpreted to be acting as a concert party ('the Concert Party') for the purposes of the City Code on Takeovers and Mergers. A new Concert Party Agreement has been signed recently and I can confirm that the Concert Party now holds nearly 53 per cent of the issued share capital of the Company. FINANCIAL HIGHLIGHTS FOR YEAR ENDED 31 MARCH 2006 2006 2005 Increase/(Decrease) £ £ % Turnover (million) 47.5 48.8 (2.7) Gross Profit (million) 28.13 1.0 (9.4) Profit Before Tax (million) 22.72 4.9 (8.8) Shareholders' funds (million) 143.21 32.2 8.3 Net assets per share 36.73 3.9 8.3 Earnings per share (pence) 408.44 45.4 (8.3) Dividend per share (pence) 130 126 3.2 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 86 pence per share are as follows: Ex-dividend date 19 July 2006 Record date 21 July 2006 Payment date 21 August 2006 UNAUDITED CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 2006 Year Restated Ended Year 31.3.2006 Ended 31.3.2005 £000 £000 Revenue 47,456 48,778 Cost of sales (19,402) (17,758) ______ ______ Gross profit 28,054 31,020 Administrative Expenses (3,058) (3,019) Increase in fair value of investments 337 331 Gain on sale of investment properties 599 325 ______ ______ Profit from operations 25,932 28,657 Finance costs (3,299) (3,830) Income from investments 27 21 ______ ______ Profit before taxation 22,660 24,848 Income tax expense (6,738) (7,482) ______ ______ Profit attributable to equity shareholders 15,922 17,366 ====== ====== Basic and diluted earnings per share (pence) 408.4 445.4 UNAUDITED GROUP BALANCE SHEET AS AT 31 MARCH 2006 Restated As at As at 31.03.2006 31.03.2005 £000 £000 Assets Non current assets Property, plant and equipment 2,735 2,821 Investment properties 20,780 22,468 Investments - - ________ _______ 23,515 25,289 Current assets Inventories of trading properties 176,095 174,775 Trade and other receivables 651 319 Cash and cash equivalents 2,338 2,288 ________ _______ 179,084 177,382 ________ _______ Total assets 202,599 202,671 ========= ========= Equity and liabilities Equity attributable to equity holders of the parent Share capital 195 195 Capital redemption reserve 55 55 Capital reserve 25 25 Other reserves 56 56 Retained earnings 142,849 131,840 _______ _______ 143,180 132,171 Non-current liabilities Long-term borrowings 29,716 29,534 Deferred tax 5,056 5,584 _______ _______ 34,772 35,118 Current liabilities Bank overdrafts and loans 20,149 31,124 Current tax payable 3,078 3,155 Trade and other payables 1,420 1,103 _______ _______ 24,647 35,382 Total liabilities 59,419 70,500 Total equity and liabilities 202,599 202,671 ========= ========= UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Share Reva- Capital Capital Other Retained Total capital luation reserves redem- Rsrvs Earnings £000 £000 reserve £000 ption £000 £000 £000 reserves £000 Changes in equity for year ended 31 March 2005 Balance as at 1 April 2004 195 - 25 55 56 119,228 119,559 Profit for the year 17,366 17,366 Dividends (4,754) (4,754) ____ ____ ____ ____ ____ _______ _______ Balance at 31 March 2005 195 - 25 55 56 131,840 132,171 ----- ---- ---- ---- ---- --------- --------- Changes in equity for year ended 31 March 2006 Profit for the year 15,922 15,922 Dividends (4,913) (4,913) ____ ____ ____ ____ ____ _______ _______ Balance at 31 March 2006 195 - 25 55 56 142,849 143,180 ----- ---- ---- ---- ---- --------- --------- UNAUDITED CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2006 Year Year Ended Ended 31.3.2006 31.3.2005 £000 £000 Cash flows from operating activities Profit from operations 25,932 28,657 Adjustments for: Depreciation 159 121 Loss on disposal of property, plant and 30 3 equipment Increase in fair value investment properties (337) (331) Gain on sale of investment properties (599) (325) __________ __________ Operating cash flows before movement in working capital 25,185 28,125 Increase in inventories (1,320) (4,659) (Increase) in receivables (331) (141) Increase in payables 317 (122) __________ __________ Cash generated from operations 23,851 23,203 Interest paid (3,299) (4,000) Income taxes paid (7,343) (8,856) _________ _________ Net cash from operating activities 13,209 10,347 __________ __________ Investing activities Interest received 27 21 Purchase of property , plant and equipment (165) (387) Purchase of investment properties (498) (126) Proceeds from sale of investment properties 3,122 395 Proceeds from disposal of property, plant and equipment 61 36 __________ __________ Net cash from /(used) in investing activities 2,547 (61) __________ __________ Cash flows from financing activities Increase in borrowings - 3,365 Repayment of borrowings (12,711) (9,279) Dividends paid (4,913) (4,754) __________ __________ Net cash used from financing activities (17,624) (10,668) ___________ __________ Net decrease in cash and cash equivalents (1,868) (382) Cash and cash equivalents at beginning of the period (13,718) (13,336) ___________ __________ Cash and cash equivalents at the end of year (15,586) (13,718) ========== ========= Unaudited Notes to the Preliminary Announcement 1. Financial Information The financial information contained in this report does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. The full accounts for the year ended 31 March 2005, which were prepared under UK GAAP and which received an unqualified audit report, and did not contain a statement under s237(2) or (3) of the Companies Act 1985, have been filed with the Registrar of Companies. Financial statements for the year ended 31 March 2006 will be presented to the Members at the Annual General Meeting on 16 August 2006. 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 2006 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. The comparative information has been restated in accordance with IFRS. The disclosures required by IFRS1 concerning the transition from UK GAAP to IFRS will be provided within the full financial statements. The date of transition to IFRS was 1 April 2004. This information is provided by RNS The company news service from the London Stock Exchange

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