Mountview Estates (MTVW) H2 2024 earnings summary

Executive summary

• Revenue increased by 8% to £79.5m and profit before tax rose 15.6% to £37.9m compared to the previous year.

• Earnings per share grew 7.4% to 728.9p, while net assets per share increased 2.29% to £102.50.

• Dividend per share for the year was 525p, a 30% reduction from the prior year due to the absence of special dividends, but a 5% increase over the previous ordinary dividend.

• The company maintained a conservative financial approach, low gearing, and strong cash flows, enabling continued property acquisitions and a robust balance sheet.

• Mountview remains focused on its core strategy of acquiring tenanted residential properties and selling them upon vacancy, with a portfolio concentrated in London and the South East.

Financial highlights

• Revenue: £79.5m (2023: £73.6m), up 8% year-over-year.

• Gross profit: £48.4m (2023: £40.6m), up 19.3%.

• Profit before tax: £37.9m (2023: £32.8m), up 15.6%.

• Net profit: £28.4m (2023: £26.5m), up 7.4%.

• EPS: 728.9p (2023: 678.8p), up 7.4%.

• Net assets per share: £102.50 (2023: £100.2), up 2.29%.

• Dividend per share: 525p (2023: 750p, which included a special dividend).

• Gearing ratio: 14.1% (2023: 12.5%).

Outlook and guidance

• The company expects continued demand for its properties, especially in London and the South East, despite broader market uncertainties.

• Mountview is well-positioned to weather potential downturns and take advantage of discounted purchasing opportunities.

• The Board remains confident in the company’s ability to remain profitable and adapt to regulatory and market changes.