Quality UK Investment Blog
All my blog posts for Mountview Estates (MTVW).
01 January 2019
By Maynard Paton
Happy New Year!
I trust you enjoyed the festive break and are now raring to do battle with the market for another twelve months!
This first Blog post of 2019 provides a ‘year in review’ of my current portfolio holdings. I recap how each of the underlying businesses performed during 2018, as well as provide a few remarks about valuation.
07 December 2018
By Maynard Paton
Update on Mountview Estates (MTVW).
Event: Interim results for the six months to 30 September 2018 published 22 November 2018.
Summary: The property-trading specialist revealed its weakest first-half performance since 2013 after selling eleven fewer houses than this time last year. Furthermore, the 133% investment return achieved from those disposals was below MTVW’s ten-year average. Nonetheless, net asset value (NAV) still managed to creep to a fresh £92 per share high. Meanwhile, dissident shareholders continue to vote against MTVW’s directors and may be growing in number. The £100 shares do not appear expensive on an NAV and yield basis, and I have recently bought more.
19 June 2018
By Maynard Paton
Update on Mountview Estates (MTVW).
Event: Preliminary results for the twelve months to 31 March 2018 published 14 June 2018
Summary: This RNS was more interesting for the management comments — all 626 words — than the actual 2018 financials. Indeed, MTVW’s chief exec is probably the first-ever boss to tell shareholders their business has a “finite life” and had essentially operated in an ex-growth market for 30 years. Hardly inspirational stuff… until you realise the dividend was lifted 33% and has now grown 47-fold during the last three decades. Mind you, this property-trading specialist will at some point have to call it a day — and dissolve an estate that could be worth almost double the current share price. I continue to hold.
01 January 2018
By Maynard Paton
Happy New Year!
I trust you have enjoyed the festive break and are now raring to do battle with the market for another twelve months!
This first Blog post of 2018 provides a ‘year in review’ of my current portfolio holdings. I recap how each of the underlying businesses performed during 2017, as well as provide a few remarks about valuation.
23 November 2017
By Maynard Paton
Update on Mountview Estates (MTVW).
Event: Interim results for the six months to 30 September 2017 published 23 November 2017
Summary: It took MTVW’s chief exec just 265 words to describe the group’s weakest first-half performance for four years. Still, the nature of this property-trading firm means earnings can be somewhat variable from time to time. What is important, though, is that net asset value improved once again to a fresh high while debt continues to be reduced to a new low. My sums point to a possible NAV of £209 per share based on the firm’s long-term margin. I continue to hold.
20 June 2017
By Maynard Paton
Quick update on Mountview Estates (MTVW).
Event: Preliminary results for the twelve months to 31 March 2017 published 15 June 2017
Summary: These figures were somewhat better than I had expected. The regulated-tenancy property trader produced a record level of revenue during the second half to counterbalance a rather disappointing first half, and the end result was not far off the very strong numbers delivered for the previous year. I was also pleased net asset value advanced further to a new high while borrowings were reduced to a fresh low. My updated sums now point to a possible NAV of £206 per share based on the firm’s previous gains on sold properties. I continue to hold.
01 January 2017
By Maynard Paton
Happy New Year!
I trust you enjoyed the festive break and are now raring to do battle with the market for another twelve months!
This first Blog post of 2017 provides a ‘year-in-review’ of my current portfolio holdings. I recap how each of the underlying businesses performed during 2016, as well as provide a few remarks about valuation.
As I mentioned this time last year, I find writing such reviews extremely useful — not least because it encourages me to double-check my investment logic to ensure I am still invested for all the right reasons!
24 November 2016
By Maynard Paton
Quick update on Mountview Estates (MTVW).
Event: Interim results for the six months to 30 September 2016 published 24 November 2016
Summary: These were not the bumper results I had become accustomed to from MTVW. The residential-property trader owned up to lower earnings due to rising stamp duty, although the all-important net asset value did march higher as debt was reduced to a new low. My latest sums point to a possible net asset value of £200 per share based on the firm’s previous mark-ups on sold properties. I continue to hold.
16 June 2016
By Maynard Paton
Quick update on Mountview Estates (MTVW).
Event: Annual results for the twelve months to 31 March 2016 published 16 June 2016
Summary: Another record annual performance from the property-trading specialist — although you would never know that from the sparse management narrative. Gross margins remain high, debt continues to be paid off while the share price still languishes well below my assessment of possible net asset value. I continue to hold.
01 January 2016
By Maynard Paton
Happy New Year!
I trust you enjoyed the festive break and are now raring to do battle with the market for another twelve months!
This first Blog post of 2016 provides a short ‘year-in-review’ of each of my current portfolio holdings.
As I mentioned at the start of 2015, I find writing such reviews extremely useful — not least because it encourages me to double-check my investment logic to ensure I am still invested for all the right reasons!
26 November 2015
By Maynard Paton
Quick update on Mountview Estates (MTVW).
Event: Interim results published 26 November
Summary: Another set of bumper results from this residential-property trader. Once again gross margins held up very well while management’s outlook continues to be positive. My latest sums point to a possible NAV of £188 per share based on the firm’s previous mark-ups on sold units. I continue to hold.
26 June 2015
By Maynard Paton
Quick update on Mountview Estates (MTVW).
Event: Preliminary results published 25 June
Summary: MTVW’s best-ever results, albeit they included what looks to have been quite a weak finish to the year. Importantly, gross margins were high and management’s outlook continues to be positive. Furthermore, the dividend marched upwards once again. My sums point to a possible NAV of £180-plus per share based on the firm’s previous gains from its sold properties. I continue to hold.
18 April 2014
By Maynard Paton
I always like to buy valuable assets at a steep discount. Today I’m delighted to showcase how I spotted one such investment, Mountview Estates (LON: MTVW), back in 2011 — and how it has since delivered very handsome gains.
At the time of my purchase, I calculated the potential value of Mountview’s balance sheet could have been more than twice its then market cap.
The shares have subsequently rallied 70% as the valuation discount narrowed and the underliying business performed well.
Add in conservative leadership and a terrific dividend history, and I’m convinced this sturdy £273m small-cap can continue to provide me with dependable, long-term returns.
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