Heavitree Brewery - Half year Results

Heavitree Brewery

27/06/2025 12:00

RNS Number : 7276O

Heavitree Brewery PLC

27 June 2025

 

The Heavitree Brewery PLC

Trood Lane

Matford

Exeter EX2 8YP

 

Date:                    27 June 2025

 

Contact:               Terry Wheatley - Managing Director - 01392 217733

     Nicola McLean - Finance Director/Company Secretary - 01392 217733

     Patrick Castle /Anita Ghanekar - Shore Capital - 0207 408 4090

 

 

 

Following a meeting by a duly authorised committee of the Board of Directors held today, 27 June 2025, the Directors announce the interim results for the six months ended 30 April 2025.

 

 

Chairman's statement

 

 Interim Results

In these uncertain times for us all, our pubs are thankfully reporting strong top line trading as our customers seek solace and comfort from the problems of the wider world in the inviting environments our operators work so hard to offer.  This has been aided by a prolonged period of good weather during spring which has boosted trading for the houses with outside dining and drinking areas and our beer and cider sales are both ahead of budget and the previous year.

 

In turn, the Company has recorded an increase in turnover of 3.62% at the half-year to £3,519,000 (2024: £3,396,000).  Operating profit of £524,000 is down by 4.02% against last year's figure for the corresponding period under review (2024: £546,000).  The decrease in operating profit is due to the increase in costs associated with the transition of Directors which took place in February.  The profit before taxation for the period is £1,507,000, an increase of 96.47% this increase includes the sale of non-core property assets, in particular the closed Locomotive Inn in Exeter which returned a profit on disposal of £1,055,000.

 

Dividend

The Directors are confident after the performance of the Company at the half-year and recommend the payment of an increased interim dividend at a rate of 2.75p (2024: 2.25p) per Ordinary and 'A' Ordinary share to those shareholders on the register on 11 July 2025.  The dividend will be payable on 01 August 2025.  This represents an increase of 22.22% on last year's interim dividend.

 

 

 

Property

The Locomotive Inn (as mentioned above) was sold during the period.  Also, the bungalow next to the Ley Arms in Kenn was sold and resulted in a loss on disposal of £1,654.  Together with a small loss on disposal of an inventory and a small profit on disposal of a vehicle, the total profit on the disposal of assets for the period was £1,047,000.

 

Planning permission for the rebuild of The Jolly Sailor in East Ogwell was determined in our favour, after many delays, on 9 April.  I look forward to reporting further on this project at the year-end.

 

 

Final Salary Pension Scheme.

The painfully slow wind-up process of the Company's final salary pension scheme continues.  The process is in the hands of the various insurance companies who are charged with transferring annuities into individual member's own names.  This transfer was successfully completed for four members during May by one provider, so there is some progress.  I shall report further at the year-end.

 

Prospects

A new American diner operation is to open in Exmouth later this month after an extensive rebranding and refurbishment.  We wish our new tenant's huge success with this exciting concept.  We have just two vacancies within the estate, both of which are open and trading while new tenants are being sought.  This is a pleasing position and gives the estate a strong foundation to make the best of the approaching summer.

 

It goes without saying that keeping our houses welcoming and busy helps to mitigate the cost head winds facing our sector.  April saw the implementation of living wage increases, a reduction in business rates support and the Employer's National Insurance percentage increases that were announced in the Chancellor's Autumn Budget.  Particularly aggrieving for pub operations was the lowering of the threshold at which National Insurance is applied which according to UK Hospitality "dragged an estimated ¾ million part-time and casual staff into this employer tax for the first time". 

 

 

  

 

 

 

N H P TUCKER

Chairman

 

 

Income statement (unaudited)

For the six months ended 30 April 2025

6 months
to
30 April
 2025
6 months
to
30 April
2024
Audited
12 months
to
31 October
2024
Note
£' 000
£' 000
£' 000
Revenue
3,519
3,396
7,498
Other operating income
109
106
294
Purchase of inventories
(1,346)
(1,281)
(2,982)
Staff costs
(745)
(694)
(1,505)
Depreciation of property, plant and equipment
(65)
(106)
(222)
Other operating charges
(948)
(875)
(1,659)
(2,995)
(2,850)
(6,074)
Operating profit
524
546
1,424
Profit on sale of property, plant and equipment
1,047
300
308
Profit before finance costs and taxation
1,571
846
1,732
Finance costs
(64)
(79)
(172)
Profit before taxation
1,507
767
1,560
Tax expense
(376)
(192)
(242)
Profit for the period
1,131
575
1,318
Earnings per share
- basic
 - diluted
4
23.3p 23.3p
11.9p 
 11.9p
27.2p 
 27.2p

 

 

Statement of comprehensive income (unaudited)

For the six months ended 30 April 2025

6 months
to
30 April
 2025
6 months
to
30 April
2024
Audited
12months
to
31 October
2024
£' 000
£' 000
£' 000
Profit for the period
1,131
575
1,318
Items that will not be reclassified to profit or loss
Fair value adjustment on investment in equity
Actuarial (losses)/gains on defined benefit pension plans
Tax relating to items that will not be reclassified
-
-
-
-
-
-
Other comprehensive income for the year, net of tax
1,131
575
1,318
Total comprehensive income attributable to:
Equity holders
1,131
575
1,318


 

 

 

 

 

Balance sheet (unaudited)

at 30 April 2025
30 April
2025
£' 000
30 April
2024
£' 000
Audited
31 October 2024
£'000
Non-current assets
Property, plant and equipment
19,847
20,058
19,635
Financial assets
783
487
436
Deferred tax asset
16
16
16
20,646
20,561
20,087
Current assets
Trade and other receivables
1,896
1,583
1,217
Inventories
10
10
10
Cash and short-term deposits
1,113
66
754
3,019
1,659
1,981
Assets held for sale
-
29
504
Total assets
23,665
22,249
22,572
Current liabilities
Trade and other payables
(1,428)
(1,338)
(1,013)
Financial liabilities
(237)
(560)
(746)
Income tax payable
(723)
(454)
(347)
(2,388)
(2,352)
(2,106)
Non-current liabilities
Other payables
(354)
(327)
(326)
Financial liabilities
(1,451)
(1,721)
(1,638)
Deferred tax liabilities
(875)
(852)
(875)
Defined benefit pension plan
(92)
(92)
(92)
(2,772)
(2,992)
(2,931)
Total liabilities
(5,160)
(5,344)
(5,037)
Net assets
18,505
16,905
17,535
Capital and reserves
Equity share capital
251
251
251
Capital redemption reserve
686
685
686
Own share reserve
(1,023)
(1,044)
(1,049)
Fair value adjustments reserve
10
10
10
Retained earnings
18,581
17,003
17,637
Total equity
18,505
16,905
17,535


 

Dividends

 

The Directors  recommend a dividend of 2.75p to be paid at the half-year. ( 2024: 2.25p)

 

 

 

 

 

 

Statement of cash flows (unaudited)

for the six months ended 30 April 2025                                                           

6 months
to
30 April
 2025
6 months
to
30 April
2024
Audited
12months
to
31 October
2024
Operating activities
£' 000
£' 000
£' 000
Profit/(loss) for the period
1,131
575
1,318
Tax expense
376
192
242
Net finance costs
64
79
172
(Profit) on disposal of non-current assets and assets held for sale
(1,047)
(300)
(308)
Depreciation and impairment of property, plant and equipment
65
106
222
Mortgage receipts received
18
15
33
(Increase)/decrease in trade and other receivables
(679)
(419)
11
Increase/(decrease) in trade and other payables
319
213
(73)
Cash generated from operations
247
461
1,617
Income taxes paid
-
-
(135)
Interest paid
(76)
(93)
(200)
Net cash Inflow from operating activities
171
368
1,282
Investing activities
Interest received
12
14
28
Proceeds from sale of property, plant and equipment and assets held for sale
1,227
341
370
Payments to acquire property, plant and equipment
(316)
(940)
(1,138)
Net cash Inflow/(outflow) from investing activities
923
(585)
(740)
Financing activities
Preference dividend paid
(1)
(1)
(1)
Equity dividends paid
(186)
(170)
(277)
Consideration received by EBT on sale of shares
70
67
67
Consideration paid by EBT on purchase of shares
(44)
(69)
(75)
Capital element of finance lease rental payments
(27)
(20)
(29)
Repayment of bank borrowings
(147)
(99)
(246)
Other Loans
(400)
-
400
Net cash outflow from financing activities
(735)
(292)
(161)
Increase/(decrease) in cash and cash equivalents
359
(509)
381
Cash and cash equivalents at the beginning of the period
754
373
373
Cash and cash equivalents at the period end
1,113
(136)
754
Statement of cash flows (unaudited) (continued)
for the six months ended 30 April 2025
Represented by:
6 months
to
30 April
2025
6 months
to
30 April
2024
Audited
12months
to
31 October
2024
Cash and short term deposits
1,113
66
754
Overdraft
-
(202)
-
Cash and cash equivalents
1,113
(136)
754


 

      Reconciliation of movements in equity (unaudited)

 

 

 

6 months to
Equity
Capital
Own
Fair
30 April 2025
share
redemption
share
value
Retained
Total
capital
reserve
reserve
adjustment
earnings
equity
£' 000
£' 000
£' 000
£' 000
£' 000
£' 000
At 1 November 2024
251
686
(1,049)
10
17,637
17,535
Profit for the period
-
-
-
-
1,131
1,131
Other comprehensive income for the period, net of income tax
-
-
-
-
-
-
Total comprehensive income for the period
-
-
-
-
1,131
1,131
Consideration
received by EBT on sale of shares
-
-
70
-
-
70
Consideration paid by EBT on purchase of shares
-
-
(44)
-
-
(44)
Equity dividend paid
-
-
-
-
(187)
(187)
At 30 April 2025
251
686
(1,023)
10
18,581
18,505


 

 

 

 

      Reconciliation of movements in equity (unaudited)

 

 

 

6 months to
Equity
Capital
Own
Fair
30 April 2024
share
redemption
share
value
Retained
Total
capital
reserve
reserve
adjustment
earnings
equity
£' 000
£' 000
£' 000
£' 000
£' 000
£' 000
At 1 November 2023
251
686
(1,041)
10
16,596
16,502
Profit for the period
-
-
-
-
575
575
Other comprehensive income for the period, net of income tax
-
-
-
-
-
-
Total comprehensive income for the period
-
-
-
-
575
575
Consideration
received by EBT on sale of shares
-
-
67
-
-
67
Consideration paid by EBT on purchase of shares
-
-
(69)
-
-
(69)
Loss by EBT on sale of shares
-
-
-
-
-
-
Equity dividend paid
-
-
-
-
(170)
(170)
At 30 April 2024
251
686
(1,044)
10
17,003
16,905


 

 

 

 

 Reconciliation of movements in equity (unaudited) - continued

 

 

12 months to 31 October 2024
Audited
Equity share capital
£000
Capital redemption reserve
£000
Own
share reserves
£000
Fair value adjustment reserve
£000
Retained earnings
£000
Total equity
£000
At 1 November 2023
251
686
(1,041)
10
16,596
16,502
Profit for the year
-
-
-
-
1,318
1,318
Other comprehensive income for the year
net of income tax
-
-
-
-
-
-
Total comprehensive
income for the year
-
-
-
-
1,318
1,318
Consideration received by EBT on sale of shares
-
-
67
-
-
67
Consideration paid by
EBT on purchase of shares
-
-
(75)
-
-
(75)
Equity dividends paid
-
-
-
-
(277)
(277)
At 31 October 2024
251
686
(1,049)
10
17,637
17,535

 

 

Equity share capital

The balance classified as share capital includes the total net proceeds (both nominal value and share premium) on issue of the Company's equity share capital, comprising 5p Ordinary and 'A' Limited Voting Ordinary Shares.

 

 

Own share reserve

Own shares reserve represents the cost of The Heavitree Brewery PLC shares purchased in the market and held by The Heavitree Brewery PLC Employee Benefit Trust ('EBT'). Shares held at half-year 134,419 (2024: 146,957).

 

 

 

 

 

Notes to the interim results

 

1.  Basis of preparation

 

These unaudited interim condensed financial statements have been prepared in accordance with IAS34 "interim financial reporting" and do not constitute statutory accounts as defined in section 434 of the Companies Act 2006.  They have been prepared on the basis of the accounting policies that were complied with in the annual financial statements for the year ended 31 October 2024 The accounting policies are drawn up in accordance with International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) as adopted by the United Kingdom.

 

These unaudited financial statements were approved and authorised for issue by a duly appointed and authorised committee of the Board of Directors on 27 June 2025.

 

2. Going concern

It has been a positive start to the year exceeding budget expectations. The extra burden on business continues with Living wage and  NI costs increasing for employers, this will continue to affect all areas of the hospitality industry and has been taken into account when forecasting for the second half of the financial year. The Company remains well within its forecasts to April 2026 with £3M overdraft available as at April 2025 and the term loan has been decreased in the year by £147k. The Board continues to focus attention on the long-term trading position of the Company.  The current trading performance of the Company also shows that it will be able to operate within the level of its facilities for the foreseeable future. With the value in the Estate being realised over time and with the support from the bank there are no material uncertainties. For this reason, the Company continues to adopt the going concern basis in preparing its financial statements.

 

 

3. Key Estimates

 

The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period are discussed below:

 

Impairment of assets

 

The Directors assess impairment of assets at each reporting date on a property by property basis. The Directors take into consideration trade performance during the year and open market value as to whether there is an indication that an asset may be permanently impaired.  When necessary external valuations are carried out. Within this trading period the Directors conclude that there were no impairments. 

  

 

 

4.  Basic and diluted earnings per share

The calculation of basic earnings per ordinary share is based on earnings of £1,131,000 (April 2024: £575,000), being profit after taxation for the period, and on 4,852,374 (April 2024: 4,822,277) shares being the weighted average number of Ordinary and 'A' Limited Voting Ordinary Shares in issue during the period after excluding the shares owned by The Heavitree Brewery PLC Employee Benefits Trust and those shares under option pursuant to the Employee Share Option Scheme. Employee share options could potentially dilute basic earnings per share in the future but are not included in the interim calculation of dilutive earnings per share because they are antidilutive for the period presented. The Ordinary Shares and the 'A' Limited Voting Ordinary Shares have equal dividend rights and therefore no separate calculation of earnings per share for the different classes has been given.

 

5.  Segment information

 

Primary reporting format - Business segments

The primary segmental reporting format is determined to be business segments as the Company's risks and rates of return are affected predominantly by differences in the products and services provided.

During the year the Company operated in one business segment-leased estate.

Leased estate represents properties which are leased to tenants to operate independently from the Company.

 

 

6.  Interim report

 

Copies of this announcement are available from the Company at Trood Lane, Matford, Exeter EX2 8YP. The Company's interim report for the six months ended 30 April 2025 has been posted to shareholders today and will be available on our website at www.heavitreebrewery.co.uk.

 

Ends.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

 
  END

 

 
IR QDLBLEQLXBBQ