26th Jun 2008 09:00
MOUNTVIEW ESTATES P.L.C.
FINANCIAL HIGHLIGHTS
|
2008 |
2007 |
Increase/(Decrease) |
|
|
£ |
£ |
% |
|
|
Turnover (million) |
54.3 |
68.2 |
(20.3) |
|
Gross Profit (million) |
35.9 |
43.1 |
(16.7) |
|
Profit Before Tax (million) |
29.5 |
50.2 |
(41.2) |
|
Shareholders' Funds (million) |
187.7 |
172.9 |
8.6 |
|
Earnings per share (pence) |
530.1 |
899.2 |
(41.1) |
|
Net assets per share |
48.2 |
44.3 |
8.8 |
|
Dividend per share (pence) |
155.0 |
150.0 |
3.3 |
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 105 pence per share are as follows:
|
Ex-dividend date |
16 July 2008 |
|
Record date |
18 July 2008 |
|
Payment date |
18 August 2008 |
CHAIRMAN'S STATEMENT
The general downturn in the United Kingdom economy has been widely documented and has impacted the residential property market in the last year. This has been evidenced in the results for the year ended 31 March 2008. Although these are below the record levels of the previous year the trading results for the year ended 31 March 2008 are nevertheless very sound.
My staff and colleagues have worked hard to produce what are good results for the year to 31 March 2008 and I am confident that they will rise to the challenge of the difficult times ahead. Indeed I look forward to the Company not only weathering these difficult times but in due course producing increased profits which will increase the rewards of its employees.
I have always emphasised the need to make the right purchases and the virtue of tight financial control. As we suffer a very harsh climate for the residential property sector I believe that this emphasis will be vindicated. Our purchasing performance during the year had been very strong already when we completed the purchase of the Magdalen Park Estate in south west London for over £43 million at the end of January 2008. These purchases have taken our borrowings to high levels by our standards but our gearing remains low by most standards and our continuing financial prudence will ensure that the Company enjoys the full benefit of these purchases and remains on a sound financial footing.
The previous year's profits were exceptional anyway but were made more so by the enormous increase of more than £14 million in fair value of investments compared with less than £2 million in the accounts for the year ended 31 March 2008. If the figures for the increase in fair value of investments are removed the fall in trading profits is less than 23% whereas the profit before taxation is shown as having fallen by over 40%.
The residential property market has become a very difficult environment in which to operate. The auction houses are reporting lower success rates, estate agents are closing some of their branches, mortgage finance is difficult to obtain and now there is the threat of higher interest rates. Despite these problems we are effecting our sales successfully although the prices achieved may be a little more modest than those we would have expected a year ago. We can only operate in the marketplace as it exists but by doing so we can comply with our banking covenants and may well be in position to take advantage of further good purchasing opportunities which occur.
Your Board is recommending an increased final dividend of 105 pence per share in respect of the year ended 31 March 2008 despite the fall in profits. This dividend is payable on 18 August 2008 to shareholders on the Register of Members as at 18 July 2008. This will make a total dividend for the year ended 31 March 2008 of 155 pence per share which is 3.4 times covered by the earnings per share.
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2008
|
Year |
Year |
|
|
Ended |
ended |
|
|
31.3.2008 |
31.3.2007 |
|
|
£000 |
£000 |
|
|
REVENUE |
54,338 |
68,168 |
|
Cost of sales |
(18,347) |
(25,076) |
|
GROSS PROFIT |
35,991 |
43,092 |
|
Administrative Expenses |
(4,207) |
(4,526) |
|
Operating profit before changes in fair value of investment properties |
31,784 |
38,566 |
|
Increase in fair value of investment properties |
1,784 |
14,224 |
|
PROFIT FROM OPERATIONS |
33,568 |
52,790 |
|
Finance costs |
(4,043) |
(2,583) |
|
Income from investments |
4 |
20 |
|
PROFIT BEFORE TAXATION |
29,529 |
50,227 |
|
Taxation - current |
(8,358) |
(11,029) |
|
Taxation - deferred |
(503) |
(4,138) |
|
Total taxation |
(8,861) |
(15,167) |
|
PROFIT ATTRIBUTABLE TO EQUITY SHAREHOLDERS |
20,668 |
35,060 |
|
Basic and diluted earnings per share (pence) |
530.1p |
899.2p |
CONSOLIDATED BALANCE SHEET
FOR THE YEAR ENDED 31 MARCH 2008
|
As at |
As at |
|
|
31.03.2008 |
31.03.2007 |
|
|
£000 |
£000 |
|
|
Assets |
||
|
Non-Current Assets |
||
|
Property, plant and equipment |
2,719 |
2,607 |
|
Investment properties |
36,203 |
34,080 |
|
Current Assets |
38,922 |
36,687 |
|
Inventories of trading properties |
271,361 |
183,889 |
|
Trade and other receivables |
1,118 |
1,061 |
|
Cash and cash equivalents |
802 |
646 |
|
273,281 |
185,596 |
|
|
Total Assets |
312,203 |
222,283 |
|
Equity and Liabilities |
||
|
Share Capital |
195 |
195 |
|
Capital redemption reserve |
55 |
55 |
|
Capital reserve |
25 |
25 |
|
Other reserves |
56 |
56 |
|
Retained earnings |
187,426 |
172,606 |
|
187,757 |
172,937 |
|
|
Non-Current Liabilities |
||
|
Long-term borrowings |
95,000 |
29,644 |
|
Deferred Tax |
9,697 |
9,194 |
|
104,697 |
38,838 |
|
|
Current Liabilities |
||
|
Trade and other payables |
3,081 |
2,952 |
|
Bank overdrafts and loans |
12,685 |
1,030 |
|
Current tax payable |
3,983 |
6,526 |
|
19,749 |
10,508 |
|
|
Total Liabilities |
124,446 |
49,346 |
|
Total Equity and Liabilities |
312,203 |
222,283 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2008
|
Capital |
||||||||
|
Share |
Capital |
Redemption |
Other |
Retained |
||||
|
Capital |
Reserve |
Reserve |
Reserves |
Earnings |
Total |
|||
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|||
|
Changes in equity for year ended 31 March 2007 |
||||||||
|
Balance as at 1 April 2006 |
195 |
25 |
55 |
56 |
142,849 |
143,180 |
||
|
Profit for the year |
35,060 |
35,060 |
||||||
|
Dividends |
(5,303) |
(5,303) |
||||||
|
Balance at 31 March 2007 |
195 |
25 |
55 |
56 |
172,606 |
172,937 |
||
|
Changes in equity for year ended 31 March 2008 |
||||||||
|
Balance as at 1 April 2007 |
195 |
25 |
55 |
56 |
172,606 |
172,937 |
||
|
Profit for the year |
20,668 |
20,668 |
||||||
|
Dividends |
(5,848) |
(5,848) |
||||||
|
Balance at 31 March 2008 |
195 |
25 |
55 |
56 |
187,426 |
187,757 |
||
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2008
|
Year |
Year |
||
|
ended |
ended |
||
|
31.03.2008 |
31.03.2007 |
||
|
£000 |
£000 |
||
|
Cash flows from operating activities |
|||
|
Operating Profit |
33,568 |
52,790 |
|
|
Adjustments for: |
|||
|
Depreciation |
190 |
146 |
|
|
Loss on disposal of property, plant and equipment |
21 |
45 |
|
|
Increase in fair value of investment properties |
(1,784) |
(14,224) |
|
|
Cash flow from operations before changes in working capital |
31,995 |
38,757 |
|
|
(Increase) in inventories |
(87,472) |
(7,794) |
|
|
(Increase) in receivables |
(57) |
(410) |
|
|
Increase in payables |
128 |
1,532 |
|
|
Cash generated from operations |
(55,406) |
32,085 |
|
|
Interest paid |
(4,043) |
(2,583) |
|
|
Income taxes paid |
(10,901) |
(7,581) |
|
|
Net cash (outflow)/inflow from operating activities |
(70,350) |
21,921 |
|
|
Investing activities |
|||
|
Interest received |
4 |
20 |
|
|
Proceeds from disposal of investment properties |
- |
925 |
|
|
Proceeds from disposal of property, plant and equipment |
61 |
41 |
|
|
Purchase of property, plant and equipment |
(382) |
(69) |
|
|
Capital expenditure on investment properties |
(340) |
(35) |
|
|
Net cash (outflow)/inflow from investing activities |
(657) |
882 |
|
|
Cash flow from financing activities |
|||
|
Increase in borrowings |
67,411 |
- |
|
|
Repayment of borrowings |
- |
(1,268) |
|
|
Equity dividend paid |
(5,848) |
(5,303) |
|
|
Net cash inflow/(outflow) from financing activities |
61,563 |
(6,571) |
|
|
Net (decrease)/increase in cash and cash equivalents |
(9,444) |
16,232 |
|
|
Opening cash and cash equivalents |
646 |
(15,586) |
|
|
Closing cash and cash equivalents |
(8,798) |
646 |
|
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 2007, 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 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 2008 will be presented to the Members at the Annual General Meeting on 13 August 2008. 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 2008 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.
Related Shares:
Mountview Est.