TIDMMTVW
RNS Number : 7119S
Mountview Estates PLC
10 July 2020
Mountview Estates P.L.C.
Publication of 2020 Annual Report and Accounts
&
Notice of 2020 Annual General Meeting
Mountview Estates P.L.C. (the "Company") announces that the
Annual Report and Accounts for the year ended 31 March 2020
together with the 2020 Notice of Annual General Meeting (the "2020
AGM") will be posted to shareholders today, 10 July 2020, and will
be able to be downloaded from the Company's website
www.mountviewplc.co.uk.
Copies of these documents, together with the Form of Proxy for
the Annual General Meeting, will be made available for inspection
on the National Storage Mechanism at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
The Company's 2020 AGM will be held on Wednesday, 12 August 2020
at 11.30am.
AGM arrangements
As noted in the Notice of the 2020 AGM, new laws and guidance
have been imposed by the UK government to restrict non-essential
travel and public gatherings as well as guidance on social
distancing in light of the COVID-19 pandemic. The new laws mean
that this year's AGM will be held in a different format to previous
years. The Board has reluctantly decided, in order to comply with
these measures and to protect the health and safety of its
shareholders and employees, the Company will arrange for the
meeting to be held with the minimum attendance required and only to
conduct the formal business of the meeting. No other person,
including shareholders, will be permitted to attend the AGM and any
person seeking to attend the meeting will be refused entry.
Voting
The Board urges all shareholders to exercise their vote and
submit their proxy as soon as possible. Shareholders are strongly
encouraged to appoint the chairman of the meeting as their proxy
with instructions as to how to cast their vote on the resolutions
proposed to ensure their vote is counted at the meeting. The 2020
Notice of AGM explains how shareholders can submit their proxy
vote. Results of voting will be published as soon as practicable
following the conclusion of the meeting.
Despite the exceptional circumstances, engagement with
shareholders is important to the Company. Arrangements have been
made so that shareholders can participate in the AGM by submitting
questions or matters of concern in connection with the business of
the 2020 AGM in advance. Any specific questions on the business of
the 2020 AGM and on the resolutions can be submitted by email to
reception@mountviewplc.co.uk or by writing to the Company
Secretary, Mountview House, 151 High Street, Southgate, London N14
6EW. The Board encourages questions to be submitted as soon as
possible and no later than 31 July 2020 and the Board will provide
responses to relevant questions by way of a written Q&A posted
on the Company's website as soon as practicable in advance of the
AGM, and no later than 8 August 2020. The 2020 Notice of AGM
explains the arrangements for submitting questions.
In compliance with paragraph 6.3.5 of the Disclosure Guidance
and Transparency Rules, the information in respect of Principal
Risks, Related Party Transactions and the Directors' Responsibility
Statement, contained in the Appendix, is extracted from the 2020
Annual Report and Accounts and should be read in conjunction with
the Company's preliminary results announcement of 18 June 2020
which can be viewed on the Company's website at
www.mountviewplc.co.uk.
Enquiries:
For further information on the Company, visit:
www.mountviewplc.co.uk
SPARK Advisory Partners Limited (Financial Adviser)
www.sparkadvisorypartners.com
Mark Brady 020 3368 3551
Appendix
PRINCIPAL RISKS AND UNCERTAINTIES
Risks posed by COVID-19
REVIEW OF OPERATIONS
In the current climate, any discussion of risk must necessarily
start by considering the impact that the Covid-19 virus has had and
may have on the business. As a risk factor it has already had an
impact on many aspects of Mountview's operations from general
market sentiment through to the very particular impact that it has
had on how we work on a day to day basis. Our operational response
to the virus is described on page 14 of the 2020 Annual Report
& Accounts. In this section we set out the impact that the
virus may have on the principal risks considered in the Review of
Operations.
There is one key difference from the other risks to the business
because, with the virus, we are not looking at a possible future
risk and how that might affect the business but rather looking at
the impact that it already has had and could have in the future
under various scenarios of seriousness and the Government's
response. Each risk area, our standing mitigating actions and our
comments on the impact of Covid-19 are shown below.
1.TRADING STOCK - REGULATED TENANCIES
Risk
Reduced opportunity to replace asset sales of vacant properties
due to the reducing number of regulated tenancies available for
purchase.
Mitigation
The Group has developed clear criteria that are applied when
considering asset purchases. Using these, the Group has performed
creditably in replacing this class of assets in the year ended 31
March 2020, with good purchasing again during the year. The
'Analysis of Acquisitions' is contained in the Annual Report &
Accounts.
COVID-19 Impact
The availability of regulated tenancies for purchase is broadly
dependent on two factors - the supply of regulated tenancies as a
whole and the propensity of the owners of those properties to sell.
The first of these is likely to impact on the longevity of the
market for regulated tenancies; the second to affect the numbers
available at any one time.
Any condition that has a greater effect on the older members of
society will have a disproportionate effect on regulated tenancies
as opposed to other forms of tenancy. Covid-19 has just such an
effect and is likely to reduce the total population of regulated
tenancies more quickly than previously anticipated. The second
factor - the propensity of owners to sell - is an unknowable
component as it is dependent on many subjective personal factors.
Thus, if all other things are equal, then the supply may be reduced
in proportion to the reduced number of regulated tenancies in
existence - but there should still be properties available in the
short term, though in the longer term that supply may run out
sooner than if COVID-19 had not appeared.
2. MARKET
Risk
Weak macro-economic conditions - which in our 2019 Annual Report
and Accounts was linked to the impact of political / Brexit
uncertainty, and for the current year has been replaced with the
uncertainty associated with the outcome of negotiations on the
trade deal with the EU and Covid-19.
Mitigation
The Group's exposure is weighted towards the stronger London and
South East markets and this geographical area has consistently been
an above-average performer.
COVID-19 Impact
As noted above, the Group's exposure is weighted towards the
stronger London and South East markets. Moreover, in the auctions
that have taken place since the lockdown, sales prices for London
based properties have held up.
3. FINANCIAL
R isk
Reduced availability of financing options resulting in inability
to meet business plans.
M itigation
The Group monitors its bank accounts and loans closely to
maintain sufficient capacity. We review our loan facilities
regularly and renegotiated a GBP20 million five-year revolving loan
facility with HSBC from November 2018. The Group is conservatively
geared and operates well within financial covenants. Financial Key
Performance indicators are on page 8. Details of the Group's
current facilities are set out in Note 18 in the Annual Report
& Accounts.
COVID-19 I mpact
For this risk the impact of Covid-19 should be limited given
that the earliest termination date for any facility is December
2022 - so, under current government projections some time beyond
the expected lifetime of the COVID-19 pandemic.
4. DIVIDS
Risk
The Group seeks to provide shareholders with good returns on
their investment. This aim could be put at risk if the Group was
unable to sustain the level of dividends for any reason.
Mitigation
We carefully monitor our strategy and our results in order to
identify any risk to dividend levels.
The Group maintains a strong balance sheet. With appropriate
banking facilities, we are able to maintain our trading stock by
taking advantage of purchasing opportunities when they occur.
COVID-19 I mpact
In the short term we do not see any threat to being able to
maintain dividends at their current levels. The current year's
operations have again generated good profits for the Group, which
support the payment of a dividend at these levels.
5. PEOPLE
Risk
Capacity to maintain strategy is compromised due to inability to
attract and retain suitably experienced employees.
Mitigation
Mountview employs a relatively small workforce which
accommodates personal interaction at all levels.
The Company has a stringent recruitment process to ensure we
employ appropriately skilled staff. We carry out regular appraisals
and offer employees opportunities for training and development
courses. The Company has a good record of long-term service, a
great number of our employees have worked for the group for over 10
years. Details of employees and diversity are set out in Notes 11
and 12 of the Directors' Report.
COVID-19 I mpact
The impact of Covid-19 adds a further risk factor which is
helping staff to remain healthy through the pandemic. Given the
high levels of both skill and experience of the staff and the
provisions made by the company to facilitate minimum disruption to
our work practices we are meeting our operational objectives at a
satisfactory level.
6. REGULATORY
Risk
Risk of not meeting new or changed regulatory requirements and
obligations that affect the Group's business activities and could
lead to fines or penalties.
Mitigation
The Group engages in close working relationships with
appropriate authorities and advisers to ensure it meets its
obligations.
COVID-19 I mpact
None that we are aware of.
7. OPERATIONS AND PROPERTY MAINTENANCE
Risk
Legal action against the Group for failure to meet its
obligations under property management and safety legislation.
Mitigation
In addition to its own regular inspections, the Group engages
professional external companies to undertake health and safety, gas
and electrical checks, fire risk assessments, etc. to ensure we
meet our commitments as employers and landlords. Our staff receive
regular training to ensure their skills are kept up to date.
To address the increasing regulatory workload, the Group
recruited a Compliance Officer whose role is to monitor our
performance against existing regulations and to track and prepare
for new requirements as they are published.
COVID-19 I mpact
In line with industry recommendations we have currently
suspended non-essential visits until permissible under government
Covid-19 guidelines. As noted in the Annual Report & Accounts
in the note on of the operational impact of the virus, we have
established a working protocol where maintenance and repair work is
essential.
For work that remains necessary to carry out, the principal risk
arising under this heading arises from staff shortages - both
within our staff and within our contractor group who carry out the
sub-contracted safety and other inspections and maintenance work.
In relation to our own staff the point has been discussed in risk 5
above. In relation to sub-contractors we have a wide panel of
sub-contractors that we could call on, and in addition contact
details of other contractors who could carry out work for us.
Accordingly, we are confident that any shortfall in staff at
contractors could be covered either by re-scheduling work or
through expanding the current contractor base.
THE OVERALL RISK ENVIRONMENT
Given Mountview's business model and financial strength, while
any risks materialising could well have a negative impact on short
term performance, and lead to inconvenience, none are significant
enough to threaten the continued existence of the Group. While we
recognise there may be a short term negative impact as a result of
Covid-19, we are confident that we can meet our strategic and
operational goals and in particular are in a strong position to
take advantage of purchasing opportunities as they arise. Risks are
considered to be broadly unchanged from 2019 with moderate
assessments for both probability of occurrence and impact.
These principal risks were part of the Group's assessment of
long term viability, details of which are set out in Note 8 of the
Directors' Report in the Annual Report & Accounts.
RELATED PARTY TRANSACTIONS
The following is extracted from the 2020 Annual Report &
Accounts
1. During the financial year there were no key management
personnel emoluments, other than remuneration.
2. a. Mountview Estates P.L.C. provides general management and
administration services to Ossian Investors Limited and Sinclair
Estates Limited, companies of which Mr D.M. Sinclair is a Director.
Fees of GBP33,100 (2019: GBP41,675) were charged for these
services.
b. Included within other loans repayable in less than one year
and on demand was a loan from Sinclair Estates Limited. The balance
outstanding at the balance sheet date was GBP465,000 (2019:
GBP1,100,015). Interest was payable on the loan at 0.5%. Interest
paid in the year on this loan amounted to GBP3,260 (2019:
GBP4,133).
c. Included within other loans repayable in less than one year
and on demand was a loan from Ossian Investors Limited. The balance
outstanding at the balance sheet date was GBP100,000 (2019:
GBP150,000). Interest was payable on the loan at 0.5%. Interest
paid in the year on this loan amounted to GBP310 (2019:
GBP505).
d. All of the above loans are unsecured.
e. Transactions between the Group and its subsidiaries, which
are related parties, have been eliminated on consolidation and have
not been disclosed in this note.
f. The only key management are the Directors.
DIRECTORS' RESPONSIBILITY STATEMENT
The following statement is extracted from the 2020 Annual Report
& Accounts
The Directors are responsible for preparing the Annual Report,
the Directors' Remuneration Report and the financial statements in
accordance with applicable law and regulations.
The Directors are required by the Companies Act 2006 to prepare
financial statements for each financial year that give a true and
fair view of the state of affairs of the Group and the Company as
at the end of the financial year, and of the profit or loss of the
Group for the financial year. Under that law, the Directors are
required to prepare the Group financial statements in accordance
with International Financial Reporting Standards ('IFRS') as
adopted by the European Union ('EU') and have elected to prepare
the Parent Company financial statements in accordance with United
Kingdom Generally Accepted Accounting Practice (UK Accounting
Standards and applicable law).
In preparing these financial statements, the Directors are
required to:
-- select suitable accounting policies and then apply them consistently;
-- make judgements and accounting estimates that are reasonable and prudent;
-- state whether IFRS as adopted by the EU and applicable UK
Accounting Standards have been followed, subject to any material
departures disclosed and explained in the Group and Parent Company
financial statements respectively;
-- present information, including accounting policies, in a
manner that provides relevant, reliable, comparable and
understandable information;
-- provide additional disclosures when compliance with the
specific requirements in IFRS are insufficient to enable users to
understand the impact of particular transactions, other events and
conditions on the entity's financial position and financial
performance; and
-- prepare the financial statements on the going concern basis,
unless it is inappropriate to presume that the Group and the
Company will continue in business.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Group's
transactions and disclose with reasonable accuracy at any time the
financial position of the Group and the Company. This will enable
them to ensure that the financial statements and the Directors'
Remuneration Report comply with the Companies Act 2006 and, as
regards the Group financial statements, Article 4 of the IAS
Regulation. They also have general responsibility for taking such
steps as are reasonably open to them to safeguard the assets of the
Group and the Company, and to prevent and detect fraud and other
irregularities.
The Directors are responsible for the maintenance and integrity
of the Company's website. Legislation in the United Kingdom
governing the preparation and dissemination
of financial statements may differ from legislation in other
jurisdictions.
The Directors consider that the Annual Report and Financial
Statements, taken as a whole, are fair, balanced and understandable
and provide the information necessary for shareholders to assess
the Group's and the Company's performance, business model and
priorities.
Each of the Directors, whose names and functions are set out on
page 15 of the Annual Report & Accounts, confirms that, to the
best of their knowledge:
-- the financial statements, which have been prepared in
accordance with the relevant financial reporting framework, give a
true and fair view of the assets, liabilities, financial position
and profit or loss of the Group and the undertakings included in
the consolidation taken as a whole; and
-- the Strategic Report contained within this document includes
a fair review of the development and performance of the business
and the position of the Group and the undertakings included in the
consolidation taken as a whole, together with a description of the
principal risks and uncertainties that the Group faces.
END
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
ACSGZGMNFGNGGZM
(END) Dow Jones Newswires
July 10, 2020 09:10 ET (13:10 GMT)
Mountview Estates (LSE:MTVW)
Historical Stock Chart
From Apr 2024 to May 2024
Mountview Estates (LSE:MTVW)
Historical Stock Chart
From May 2023 to May 2024