Heavitree Brewery - Interim Results
The Heavitree Brewery PLC
Trood Lane
Matford
Exeter EX2 8YP
Date: 25 June 2026
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, 25 June 2026, the Directors announce the interim results for the six months ended 30 April 2026.
Chairman's statement
Interim Results
The Company has recorded a slight reduction in turnover of 1.5% to £3,465,000 for the period under review compared to the corresponding period of the previous year (2025: £3,519,000). In turn, operating profit has decreased by 4.0% to £503,000 (2025: £524,000). Our trading has not been helped by Easter falling early this year and together with poor weather conditions delivered by a named storm in January, our tied product volumes are down on the previous year. However, the Company remains ahead of budget at the half-year, and the recent prolonged spell of warm weather has encouraged a recovery in barrelage and given a positive boost to the start of the second period of the year.
Dividend
The Directors consider it prudent to recommend an unchanged interim dividend of 2.75p (2025: 2.75p) per Ordinary and 'A' Ordinary share for those shareholders on the register on 3 July 2026. Shareholders will recall that the interim dividend last year was increased by 22.22%. The dividend will be payable on 31 July 2026.
Property
Work has been completed developing three bed-and-breakfast rooms at The Ship Inn in Kingswear which will complement the strong offer at the pub. The extension of the car park at The Ley Arms in Kenn is near to completion and this will alleviate some of the parking pressures in the village as the success of the pub attracts more visitors.
There was much media coverage following the named storm I referred to earlier that hit in January, and which was particularly violent around the South Hams area. Our Start Bay Inn at Torcross suffered damage to the thatch and the surfacing of the beer garden patio and car park. Many other properties on either side of our pub were damaged, and also the A379 road which broke apart between Torcross and Slapton. Unfortunately, this has resulted in a diversion for people travelling to and from Dartmouth to Torcross as well as to our other pubs in Stokenham and Beesands. The Start Bay was quickly repaired after the weekend of the storm and has continued to trade despite the obvious inconveniences and concerns for the loss of the road link. We are grateful to our highly experienced and determined tenants for their resilience and to the customers for their on-going support.
Final Salary Pension Scheme.
Shareholders will probably be getting used to me reporting on the painfully slow wind-up process of the final salary pension scheme, but the speed of the process remains in the control of the insurance companies charged with transferring annuities into individual members own names. There has been some positive news as one provider plans to transfer over on 1st July. This will leave just one provider left yet to complete the task. I hope to report favourably on this matter at the year-end.
Prospects
The Directors feel we are well placed for the second half of the year and are hopeful of strong summer season and a potential boost to pubs from the World Cup which is being broadcasted at times which should be favourable to pubs. However, we are operating in the uncertain times facing the world as international diplomacy is replaced with almost daily deadlines and threats of escalation and once again, our sector has to brace itself for the inevitable costs' fallout. Added to this, pubs are absorbing and mitigating the costs imposed on them because of some decisions taken by this government with reference to the costs of employing, and decisions not taken with reference to business rates and VAT. Pubs are taking on fewer staff to mitigate these costs, and the increased burden of work is falling back on publicans and their teams. With all this in mind I will conclude by stealing a quote from my father's chairman's statement of 1974 when he summarised the position of the Company at that time by observing that "with the continued support of staff and tenants and given a less vindictive government attitude, the company has as bright a future as the current economic climate will allow".
N H P TUCKER
Chairman
Income statement (unaudited)
For the six months ended 30 April 2026
6 months
to
30 April
2026
6 months
to
30 April
2025
Audited
12 months
to
31 October
2025
Note
£' 000
£' 000
£' 000
Revenue
3,465
3,519
7,628
Other operating income
95
109
285
Purchase of inventories
(1,286)
(1,346)
(3,006)
Staff costs
(818)
(745)
(1,650)
Depreciation of property, plant and equipment
(84)
(65)
(172)
Other operating charges
(869)
(948)
(1,708)
(2,962)
(2,995)
(6,251)
Operating profit
503
524
1,377
Profit on sale of property, plant and equipment
Impairment of fixed assets
Insurance receipt
2
-
-
-
-
1,056
(200)
877
Profit before finance costs and taxation
505
1,571
3,110
Finance costs
(26)
(64)
(92)
Profit before taxation
479
1,507
3,018
Tax expense
(121)
(376)
(396)
Profit for the period
358
1,131
2,622
Earnings per share
- basic
- diluted4
7.5p
7.5p
23.3p
23.3p
54.2p
54.2p
Statement of comprehensive income (unaudited)
For the six months ended 30 April 2026
6 months
to
30 April
2026
6 months
to
30 April
2025
Audited
12months
to
31 October
2025
£' 000
£' 000
£' 000
Profit for the period
358
1,131
2,622
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
358
1,131
2,622
Total comprehensive income attributable to:
Equity holders
358
1,131
2,622
Balance sheet (unaudited)
at 30 April 2026
30 April
2026
£' 000
30 April
2025
£' 000
Audited
31 October 2025
£'000
Non-current assets
Property, plant and equipment
20,054
19,847
19,914
Financial assets
695
783
764
Deferred tax asset
-
16
-
20,749
20,646
20,678
Current assets
Trade and other receivables
1,709
1,896
1,060
Inventories
10
10
10
Cash and short-term deposits
1,845
1,113
2,308
3,564
3,019
3,378
Assets held for sale
-
-
-
Total assets
24,313
23,665
24,056
Current liabilities
Trade and other payables
(1,287)
(1,428)
(1,018)
Financial liabilities
(515)
(237)
(341)
Income tax payable
(410)
(723)
(289)
(2,212)
(2,388)
(1,648)
Non-current liabilities
Other payables
(380)
(354)
(385)
Financial liabilities
(1,160)
(1,451)
(1,294)
Deferred tax liabilities
(979)
(875)
(979)
Defined benefit pension plan
-
(92)
-
(2,519)
(2,772)
(2,658)
Total liabilities
(4,731)
(5,160)
(4,306)
Net assets
19,582
18,505
19,750
Capital and reserves
Equity share capital
251
251
251
Capital redemption reserve
686
686
686
Own share reserve
(1,474)
(1,023)
(1,135)
Fair value adjustments reserve
10
10
10
Retained earnings
20,109
18,581
19,938
Total equity
19,582
18,505
19,750
Dividends
The Directors recommend a dividend of 2.75p to be paid at the half-year. (2025: 2.75p)
Statement of cash flows (unaudited)
for the six months ended 30 April 2026
6 months
to
30 April
2026
6 months
to
30 April
2025
Audited
12months
to
31 October
2025
Operating activities
£' 000
£' 000
£' 000
Profit/(loss) for the period
358
1,131
2,622
Tax expense
121
376
396
Net finance costs
26
64
92
(Profit) on disposal of non-current assets and assets held for sale
Impairment of property
(2)
-
(1,047)
-
(1,056)
200
Depreciation and impairment of property, plant and equipment
84
65
172
Insurance receipt
-
-
(877)
Mortgage receipts received
69
18
37
(Increase)/decrease in trade and other receivables
(573)
(679)
157
Increase/(decrease) in trade and other payables
264
319
66
Cash generated from operations
347
247
1,809
Income taxes paid
-
-
(350)
Interest paid
(55)
(76)
(127)
Net cash Inflow from operating activities
292
171
1,332
Investing activities
Interest received
29
12
35
Insurance receipt
-
-
877
Proceeds from sale of property, plant and equipment and assets held for sale
2
1,227
1,294
Payments to acquire property, plant and equipment
(300)
(316)
(828)
Net cash Inflow/(outflow) from investing activities
(269)
923
1,378
Financing activities
Preference dividend paid
(1)
(1)
(1)
Equity dividends paid
(186)
(186)
(320)
Consideration received by EBT on sale of shares
61
70
70
Consideration paid by EBT on purchase of shares
(400)
(44)
(156)
Capital element of finance lease rental payments
(19)
(27)
(54)
New finance leases
44
-
-
Repayment of bank borrowings
(147)
(147)
(695)
Other Loans
-
(400)
-
Net cash outflow from financing activities
(648)
(735)
(1,156)
Increase/(decrease) in cash and cash equivalents
(625)
359
1,554
Cash and cash equivalents at the beginning of the period
2,308
754
754
Cash and cash equivalents at the period end
1,683
1,113
2,308
Statement of cash flows (unaudited) (continued)
for the six months ended 30 April 2026
Represented by:
6 months
to
30 April
2026
6 months
to
30 April
2025
Audited
12months
to
31 October
2025
Cash and short term deposits
1,845
1,113
2,308
Overdraft
(162)
-
-
Cash and cash equivalents
1,683
1,113
2,308
Reconciliation of movements in equity (unaudited)
6 months to
Equity
Capital
Own
Fair
30 April 2026
share
redemption
share
value
Retained
Total
capital
reserve
reserve
adjustment
earnings
equity
£' 000
£' 000
£' 000
£' 000
£' 000
£' 000
At 1 November 2025
251
686
(1,135)
10
19,938
19,750
Profit for the period
-
-
-
-
358
358
Other comprehensive income for the period, net of income tax
-
-
-
-
-
-
Total comprehensive income for the period
-
-
-
-
358
358
Consideration
received by EBT on sale of shares
-
-
61
-
-
61
Consideration paid by EBT on purchase of shares
-
-
(400)
-
-
(400)
Equity dividend paid
-
-
-
-
(187)
(187)
At 30 April 2026
251
686
(1,474)
10
20,109
19,582
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)
Loss by EBT on sale of shares
-
-
-
-
-
-
Equity dividend paid
-
-
-
-
(187)
(187)
At 30 April 2025
251
686
(1,023)
10
18,581
18,505
Reconciliation of movements in equity (unaudited) - continued
12 months to 31 October 2025
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 2024
251
686
(1,049)
10
17,637
17,535
Profit for the year
-
-
-
-
2,622
2,622
Other comprehensive income for the year
net of income tax
-
-
-
-
-
-
Total comprehensive
income for the year
-
-
-
-
2,622
2,622
Consideration received by EBT on sale of shares
-
-
70
-
-
70
Consideration paid by
EBT on purchase of shares
-
-
(156)
-
-
(156)
Equity dividends paid
-
-
-
-
(321)
(321)
At 31 October 2025
251
686
(1,135)
10
19,938
19,750
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 415,302 (2025: 134,419).
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 2025. 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 25 June 2026.
2. Going concern
We have had a positive start to the year exceeding our Budget expectations despite the continued rise in costs for the hospitality sector. The factors affecting the sector and business in general with the Iran war having a significant impact on all sectors have been factored when forecasting for the second half of the financial year. The Company remains well within its forecasts to April 2027 with £3M (2025: £3M) overdraft available as at April 2026 and the term loan has been decreased in the period 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 £358,000 (April 2025: £1,131,000), being profit after taxation for the period, and on 4,747,314 (April 2025: 4,852,374) 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 2026 has been posted to shareholders today and will be available on our website at www.heavitreebrewery.co.uk.
Ends.
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