I am delighted to report both increased turnover and increased profits for the year ended 31 March 2014.
Profit before tax for the year was £35.4m (2013: £28.9m) representing an increase of £6.5m and growth of 22.5%. This performance reflects a very buoyant housing market in our core geographical area. These results are the second highest in the history of the Company and this must be considered an excellent achievement. Equally pleasing is the increase in shareholders' funds of 8.9% to £265.6m together with a reduction in borrowings of 16.5% to £78m.
These results have meant that we are able to recommend an increased final dividend of 150 pence per share in respect of the year ended 31 March 2014. This final dividend is payable on 18 August 2014 to shareholders on the Register of Members as at 18 July 2014. This will make a total dividend for the year ended 31 March 2014 of 200 pence per share (2013: 175 pence per share). The increased dividend is still more than three times covered by the earnings per share.
In the year, we have continued to purchase new trading stock. We have been able to invest £23.9m in new properties. The buoyant housing market has brought more players into our core market and this has resulted in greater competition for new purchases. However, we believe we have continued to buy wisely, investing in properties located in our key locations and where we see good value and potential profits.
Whilst it has never been a requirement to value the trading stock it has been a concern for some of the shareholders. The Board has decided to undertake the valuation of the trading stock and anticipate that the results will be published together with the Interim Report 2014.
The results are made with a stable, experienced and committed executive and management team and staff. We continue to develop managerial staff and this is an important part of business progression.
Duncan Sinclair has been with the Company for 43 years, during which he has occupied the positions of Company Secretary, Director, Executive Chairman and Chief Executive. The Company has grown and developed significantly since Duncan became Chief Executive in 1990. The search to find and establish Duncan's successor is on-going and now intensifying. This is an important phase in the Company's development.
I am pleased to announce that Mrs Mhairi Jarvis will join our board as an independent non-executive director with effect from 1 July 2014. Mhairi is a Chartered Surveyor, who brings to this role a wealth of experience in the UK residential property sector. She is a graduate of the University of Aberdeen in Land Economy and has worked for over 15 years in a variety of private practice and consulting roles with auction houses, agencies and asset managers.
On 23 June 2014, Mountview Estates P.L.C. was included in the FTSE All-Share Ex-Multinational Index for the first time.
This is my first statement as chairman since we made the decision to split the combined role of chairman and chief executive at last year's annual general meeting. I am grateful for the support of my fellow directors and wish to express my thanks to them.
John Fulton
26 June 2014