Preliminary Results

Mountview Estates PLC
23 June 2005


                            MOUNTVIEW ESTATES P.L.C.

                              CHAIRMAN'S STATEMENT



It would, of course, be a pleasure to again be reporting increases in turnover,
profits and dividends but like every other business we have our quieter times
and history shows that no business goes forever upwards. During most of the
twelve months under review the housing market has undoubtedly been a far tougher
environment in which to operate and economic uncertainties continue despite any
answers which may have been provided by the result of the general election.
Nevertheless it is a pleasure to thank my loyal colleagues and staff for all
their hard work and endeavour in producing results which are as good as they
could be given the circumstances.

As can be seen from the financial highlights on the opposite page Profit Before
Tax is down by a greater percentage than Turnover and Gross Profit. This is
largely due to the increase of £600,000 in interest charges which I predicted,
last year, would have a significant impact on our results for the next few
years. It is also true that our gearing remains low enough to give us the
flexibility to take good purchasing opportunities if they come along.

Whilst there has been no single outstanding purchase during the last year we
have, I believe, continued to make the right purchases at the right prices.
There may have been a greater emphasis on the purchase of life tenancies but we
try to maintain a good balance between the different types of investment and the
areas in which they are situated. Whilst the typical life tenancy can be bought
at a greater discount to vacant possession value, than the typical regulated
tenancy, we have to be mindful that there is negligible income from life
tenancies.

Whilst gross rental income has increased slightly Turnover has fallen by £6.3
million. This is not because house prices have dropped significantly but, as
previously suggested, because it is taking longer to conclude each sale after
obtaining vacant possession. The number of properties coming vacant has not
fallen but it is taking longer to finalise each sale.

I have previously been able to say that our gross rental income exceeds the
combined total of our administrative expenses, interest payments and dividend
payments. There is now a small deficit on this calculation which is more than
explained by the surge in interest payments. Nevertheless your Board is able to
recommend an increase of 4 pence per share making a final dividend of 82 pence
per share which means that the total dividends of 126 pence per share are three
and a half times covered by the earnings per share of 441 pence.

Our profits for the last five years, including the latest figure of £24.5
million, average over £23.3 million whereas as recently as 1999 we were
enthusing about a Profit Before Tax of £13.1 million which was then a record
result for this Company. I think that it is fair to say that the Company is now
producing profits at a significantly higher level than those of a few years ago
and it is reasonable to assume that dividends can at least be maintained at the
level recommended by your Board this year. This Company has always practiced
tight financial control but, whilst we will continue to keep a strong grip on
the Company's finances, growth will not be stifled.

The Company's new financial year has started quietly but I attribute this to the
continuing reluctance of purchasers to commit to a deal which situation may
improve when there is more certainty about government policies.

To conclude it is disappointing to report falls in turnover and profits but
nevertheless your Board is able to recommend a dividend increase in excess of
the rate of inflation.

As the Company's shareholders may be aware, the Sinclair family has always held
a substantial amount of shares 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. As a result of a
reorganisation of certain of the Sinclair family's interests, shares in the
Company which had previously been held by certain members of the Concert Party
are no longer being treated as held by the Concert Party. Due to this
reorganisation and the addition also of certain other shareholdings, the net
aggregate shareholding of the Concert Party has accordingly been reduced to
approximately 53 per cent. of the issued share capital of the Company.


                            MOUNTVIEW ESTATES P.L.C.

                        BALANCE SHEETS AS AT 31ST MARCH

                               Mountview Estates P.L.C.    Group

                                  2005              2004       2005       2004
                                  £000              £000       £000       £000

FIXED ASSETS

Tangible assets                  2,747             2,539     25,289     24,675
Investments                     18,276            18,276          -          -

                               ---------         ---------  ---------  ---------
                                21,023            20,815     25,289     24,675
                               =========         =========  =========  =========

CURRENT ASSETS
Stocks                         168,199           165,763    174,775    170,116
Debtors                            259               132        319        178
Cash at bank and in hand         2,187               333      2,288        454
                               ---------         ---------  ---------  ---------
                               170,645           166,228    177,382    170,748

CREDITORS: Amounts falling due
within one year                (38,077)          (34,716)   (38,579)   (35,343)
                               ---------         ---------  ---------  ---------
NET CURRENT ASSETS             132,568           131,512    138,803    135,405

                               ---------         ---------  ---------  ---------
TOTAL ASSETS LESS CURRENT
LIABILITIES                    153,591           152,327    164,092    160,080

CREDITORS: Amounts falling due
after more than one year       (45,260)          (54,368)   (29,534)   (38,138)
                               ---------         ---------  ---------  ---------
                               108,331            97,959    134,558    121,942
                               =========         =========  =========  =========

CAPITAL AND RESERVES

Called up share capital            195               195        195        195
Revaluation reserve                  -                 -      6,758      6,427
Capital redemption reserve          55                55         55         55
Capital reserve                     25                25         25         25
Other reserves                      39                39         56         56
Profit and loss account        108,017            97,645    127,469    115,184
                               ---------         ---------  ---------  ---------
                               108,331            97,959    134,558    121,942
                               =========         =========  =========  =========



                            MOUNTVIEW ESTATES P.L.C.

                        CONSOLIDATED CASH FLOW STATEMENT

                         FOR THE YEAR ENDED 31ST MARCH



                                                            2005          2004
                                                            £000          £000

Net Cash Inflow From Operating Activities                 23,203         3,968

Servicing of Finance                                      (3,979)       (3,192)

Taxation                                                  (8,856)       (8,645)

Capital Expenditure And Financial Investment                 (82)         (125)

Equity Dividends Paid                                     (4,754)       (3,743)
                                                          --------      --------
Cash Inflow/(Outflow) Before Financing                     5,532       (11,737)

Financing                                                 (5,914)       13,273
                                                          --------      --------
(Decrease)/Increase In Cash                                 (382)        1,536
                                                          ========      ========



Reconciliation of net cashflow movement in net Debt


(Decrease)/Increase in cash in the period                   (382)        1,536

Net cash outflow/(inflow) from bank loans                  9,279       (13,923)

Net cash (inflow)/outflow from other loans                (3,365)          650
                                                          --------      --------
Change in net debt                                         5,532       (11,737)

Net debt at 1 April 2004                                 (63,902)      (52,165)
                                                          --------      --------
Net debt at 31 March 2005                                (58,370)      (63,902)
                                                          ========      ========



                            MOUNTVIEW ESTATES P.L.C.

                STATEMENT OF PROFITS FOR YEARS ENDED 31ST MARCH



                                                                 2005     2004
                                                                 £000     £000
Turnover                                                       48,778   55,087
                                                                =======  =======

Operating Profit                                               28,001   31,799

Profit on disposal of fixed assets                                325        -

Deduct: Interest Charges                                       (3,809)  (3,206)
                                                                -------  -------
Profit on ordinary activities before taxation                  24,517   28,593

Taxation                                                       (7,321)  (8,584)
                                                                -------  -------
Profit on ordinary activities after taxation
attributable to shareholders                                   17,196   20,009

Dividends: (pence per share - net)              2005    2004

Interim                                           44      44
Proposed final                                    82      78   (4,911)  (4,757)
                                               ------- -------
                                                 126     122
                                               ======= =======  -------  -------
Retained profits for the financial year                        12,285   15,252
                                                                =======  =======

Earnings per share                                              441.0p   513.2p
                                                                =======  =======



NOTES:
The results set out above are not full accounts as defined in s.254 of the
Companies Act 1985. The auditors have not yet made a report under s.236 of the
Companies Act 1985 on the accounts for the year ended 31st March 2005 from which
the results are extracted and consequently full accounts for that period have
not yet been delivered to the Registrar of Companies.
The basis of the calculation of earnings per share is the profit on ordinary
activities after taxation divided by the weighted average number of ordinary
shares in issue during the year.




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