Mountview Estates

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.

Read moreMOUNTVIEW ESTATES: Significant Gross-Margin Improvements During Pandemic-Affected H1 May Underpin Possible NAV Of Up To £225 Per Share

13 August 2020
By Maynard Paton

Results summary for Mountview Estates (MTVW):

• Standstill 2020 figures that showed 8% more properties sold at prices 9% lower than last year.

• A maintained dividend, a lack for furloughed staff and the directors currently being “happy in the auction room” underline some pandemic-resilient qualities. 

• Net debt representing a very modest 8% of the group’s property estate suggests significant scope to pick up any property bargains.

• This week’s AGM witnessed a further bout of protest votes against the independent non-executives, the board’s pay and the auditors.

• MTVW’s book value increased by 3% to a record £97 per share, although my calculations suggest the balance sheet could be worth £200-plus per share. I continue to hold.

Read moreMountview Estates:  FY 2020 Statement Signals Modest 8% Gearing, ’Happy’ Auction-Room Activity And Potential To Pick Up Possible Pandemic Property Bargains

28 December 2019
By Maynard Paton

Results summary for Mountview Estates (MTVW):

• Brexit “uncertainties” led to a dull performance, with revenue falling 1%, underlying operating profit improving 1% and an unchanged dividend.

• An improved gross margin and the disposal of four investment properties for prices well above book were encouraging.

• Debt represents a modest 10% of the group’s property estate — which continues to be accounted for at cost.

• This year’s AGM witnessed further protest votes against the independent non-executives, the board’s pay and the auditors.

• MTVW’s book value increased by 4% to £96 per share, although the balance sheet could inherently be worth £200-plus per share. I continue to hold.

Read moreMountview Estates: H1 Figures Show NAV Inching 4% Higher To £96 Per Share After Management Suffered Significant AGM Protest Votes For The Third Consecutive Year

15 July 2019
By Maynard Paton

Results summary for Mountview Estates (MTVW):

• Brexit “uncertainties” led to MTVW’s lowest annual revenue and earnings since 2013.

• At least the dividend was held and net asset value reached a fresh £94 per share high.

• A higher gross margin during the second half was encouraging and may indicate MTVW is enjoying slightly stronger sale prices.    

• Debt represents a low 12% of the group’s property estate — which continues to be accounted for at cost.

• My sums suggest MTVW’s balance sheet could actually be worth £200-plus per share — more than double the recent share price. I continue to hold.

Read moreMountview Estates: 2019 Results Show Encouraging H2 As NAV Climbs To £94 Per Share And Closer To £97 Share Price

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.

Read moreMountview Estates: NAV Creeps To New £92 Per Share High Despite Weakest H1 For 5 Years

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.   

Read moreMountview Estates: 2018 Dividend Lifted 33% As Boss Admits Company Has A ‘Finite Life’

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.

Read moreMountview Estates: NAV Reaches Fresh £89 Per Share High Despite Weakest H1 For 4 Years

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.

Read moreMountview Estates: Bumper H2 Rescues 2017 Performance And Pushes Potential NAV To £206 Per Share

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.

Read moreMountview Estates: £83 Per Share NAV Could One Day Be Worth £200 Per Share

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. 

Read moreMountview Estates: NAV Could Be £140 Per Share Right Now And £192 Per Share Long Term

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.

Read moreMountview Estates: I’ve Lifted My NAV Guess To £188 Per Share

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.

Read moreMountview Estates: My NAV Guess Is £180 Per Share

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.

Read moreMountview Estates plc: Why I’m Up 70% In 3 Years