04 December 2020
By Maynard Paton
Results summary for Mountview Estates (MTVW):
- A pandemic-affected H1 that showed revenue down 23% and profit down 18% following procedural delays to property sales.
- A maintained dividend, a lack for furloughed staff and rents up 1% did not signal inherent lockdown trouble.
- Significant gross-margin enhancements may reflect an underlying step-change in performance and have favourable implications for valuation.
- Expenditure on property purchases has picked up, with management hopeful of acquiring “exceptional opportunities”. Debt levels remain modest.
- Book value inched to a record £98 per share, although new profit assumptions now point to a balance sheet possibly worth up to £225 per share. I continue to hold.