REG - Heavitree Brewery - Half-year Report <Origin Href="QuoteRef">HVT.L</Origin>

Heavitree BreweryAnnouncement

29/06/2017 14:07

RNS Number : 5687J
Heavitree Brewery PLC
29 June 2017
The Heavitree Brewery PLC
Trood Lane
Matford
Exeter EX2 8YP
Date:  29 June 2017
Contact: Graham Crocker - Managing Director - 01392 217733
Nicola McLean - Company Secretary - 01392 217733
Patrick Castle /Anita Ghanekar - Shore Capital - 0207 408 4052
Following a meeting by a duly authorised committee of the Board of Directors held today, 29 June 2017, the Directors announce the interim results for the six months ended 30 April 2017.
Chairman's statement
The Group has increased operating profit against the corresponding period last year by 10.79% to 698,000. This has been achieved by increases in all areas of contribution apart from machine income.
Results
The Group has returned an operating profit of 698,000 (2016: 630,000) which reflects a 10.79% increase against the same period in the previous year. After allowing for finance costs of 140,000 (2016: 124,000), which include a 41,000 interest cost in respect of the IAS 19 calculation applied to the final salary Pension Scheme (2016: 28,000), the Group Profit before taxation is 558,000 (2016: 505,000). This shows a 10.49% increase on the previous year.
Dividend
The Directors have resolved to pay an interim dividend of 3.675p per Ordinary Share and 'A' Limited voting Ordinary Share (2016: 3.675p). The dividend will be paid on 4 August 2017 to shareholders on the Register at the close of business on 21 July 2017.
Property
There were no property sales during the period under review but three houses were being actively marketed for sale. Those houses are the Crown and Sceptre in Newton St.Cyres, the Bell Inn in Cullompton and the Pen and Quill in Taunton.
The Pen and Quill has sold since the closure of the half year period and a book loss has been mostly absorbed by the impairment that was shown in last year's accounts. Also, since the end of the period under review, The King's Arms in Strete has been added to the list of those pubs being marketed for sale.
The Dartmoor Halfway in Bickington opened in May after a total refurbishment completed in partnership with Buccaneer Inns who have taken the tenancy of this exciting new pub. Trading has started well and the Directors wish Buccaneer Inns and the management team at the pub every success in the future.
Prospects
I am pleased to be reporting these good numbers at the half-year. The quality of our houses and operators means that we are well set up to take advantage of good trading conditions in the second half of the financial year but also to remain resilient to the effects of the immense uncertainties that 2017 continues to deliver.
N H P TUCKER
Chairman
Group income statement (unaudited)
For the six months ended 30 April 2017
6 months
to
30 April
2017
6 months
to
30 April
2016
Audited
12 months
to
31 October
2016
Note
' 000
' 000
' 000
Revenue
 3,351
 3,312
 7,155
Change in stocks
-
-
-
Other operating income
134
117
241
Purchase of inventories
(1,318)
(1,322)
(2,955)
Staff costs
(625)
(600)
(1,301)
Depreciation of property, plant and equipment
(113)
(103)
(208)
Other operating charges
 (731)
 (774)
 (1,512)
 (2,653)
 (2,682)
 (5,735)
Group operating profit
698
630
1,420
(Loss)/profit on sale of property, plant and equipment
 -
 (1)
585 
Movements in valuation of estate and related assets
 -
 -
 (163)
Group profit before finance costs and taxation
698
629
1,842
Finance income
3
8
6
Finance costs
(102)
(104)
(152)
Other finance costs-pensions
 (41)
 (28)
 (43)
 (140)
 (124)
 (189)
Profit before taxation
558
505
1,653
Tax expense
 (159)
 (128)
 (288)
Profit for the period
 399
 377
 1,365
Earnings per share
- basic
- diluted
2
7.9p
7.9p
7.7p
7.7p 
28.0p
28.0p 
Group statement of comprehensive income (unaudited)
For the six months ended 30 April 2017
6 months
to
30 April
2017
6 months
to
30 April
2016
 Audited
 12months
 to
31 October
 2016
' 000
 ' 000
 ' 000
Profit for the period
 399
 377
 1,365
Items that will not be reclassified to profit or loss
Actuarial (losses)/gains on defined benefit pension plans
Tax relating to items that will not be reclassified
(69)
 12
 (57) 
350
 (70)
280
(1,195)
 203
(992)
Items that may be reclassified to profit or loss
Fair value adjustment
Exchange rate differences on translation of subsidiary undertaking
Tax relating to items that may be reclassified
1
-
 -
1
3
(3)
 -
-
7
10
 -
17
Other comprehensive income for the year, net of tax
 343
 657
 390
Total comprehensive income attributable to:
Equity holders of the parent
 343
 657
 390
Dividends
The Directors declare an interim dividend of 3.675p per share (2016 - 3.675p) on the Ordinary and 'A' Limited Voting Ordinary Shares. This dividend will be paid on 04 August 2017 to shareholders on the register at 21 July 2017.
Group balance sheet (unaudited)
at 30 April 2017
30 April
2017
' 000
30 April
2016
' 000
Audited
31 October 2016
'000
Non-current assets
Property, plant and equipment
18,380
16,950
18,012
Financial assets
41
37
40
Deferred tax asset
284
 100
 359
 18,705
 17,087
 18,411
Current assets
Trade and other receivables
1,750
1,312
1,585
Inventories
10
10
10
Cash and short-term deposits
 62
 93
 57
 1,822
 1,415
 1,652
Assets held for sale
552
1,408
219
Total assets
 21,079
 19,910
 20,282
Current liabilities
Trade and other payables
(1,064)
(821)
(980)
Financial liabilities
(2,267)
(2,349)
(1,332)
Income tax payable
 (223)
 (106)
 (149)
 (3,554)
 (3,276)
 (2,461)
Non-current liabilities
Other payables
(264)
(275)
(274)
Financial liabilities
(6,011)
(6,011)
(6,057)
Deferred tax liabilities
(335)
(305)
(335)
Defined benefit pension plan
 (1,667)
 (500)
 (2,111)
 (8,277)
 (7,091)
 (8,777)
Total liabilities
 (11,831)
 (10,367)
 (11,238)
Net assets
 9,248
 9,543
 9,044
Capital and reserves
Equity share capital
264
264
264
Capital redemption reserve
673
673
673
Treasury shares
(1,212)
(1,201)
(1,254)
Fair value adjustments reserve
17
17
21
Currency translation
22
4
17
Retained earnings
 9,484
 9,786
 9,323
Total equity
 9,248
 9,543
 9,044
Group statement of cash flows (unaudited)
for the six months ended 30 April 2017
6 months
to
30 April
2017
6 months
to
30 April
2016
Audited
12months
to
31 October
2016
Operating activities
' 000
' 000
' 000
Profit for the period
399
377
1,365
Tax expense
159
128
288
Net finance costs
140
124
189
Loss/(profit) on disposal of non-current assets and assets held for sale
-
1
(585)
Depreciation and impairment of property, plant and equipment
130
103
371
Exchange gain on cash, liquid resources and loan
-
-
4
Difference between pension contributions paid and recognised in the income statement
(554)
(591)
(538)
Decrease/(increase) in trade and other receivables
(165)
62
(226)
Increase/(decrease) in trade and other payables
 78
 79
 238
Cash generated from operations
187
283
1,106
Income taxes paid
-
 (6)
 (79) 
Interest paid
(102)
 (104) 
 (152)
Net cash inflow from operating activities
 85
 173 
 875
Investing activities
Interest received
3
8
6
Proceeds from sale of property, plant and equipment and assets held for sale
-
4
1,205
Payments to acquire property, plant and equipment
 (832)
 (594)
 (1,275)
Net cash outflow from investing activities
 (829)
 (582)
(64)
Financing activities
Preference dividend paid
(1)
(1)
(1)
Equity dividends paid
(183)
(179)
(358)
Consideration received by EBT on sale of shares
44
40
40
Consideration paid by EBT on purchase of shares
Capital element of finance lease rental payments 
-
 (4)
(5)
 -
(58)
 (2)
Net cash outflow from financing activities
(144)
 (145)
 (379)
Decrease in cash and cash equivalents
(888)
(554)
432
Cash and cash equivalents at the beginning of the period
(1,270)
(1,702)
 (1,702)
Cash and cash equivalents at the period end.
(2,158) 
(2,256)
(1,270) 
Group reconciliation of movements in equity (unaudited)
6 months to
Equity
Capital
Fair
Cashflow
30 April 2017
share
redemption
Treasury
value
Currency
hedge
Retained
Total
capital
reserve
shares
adjustment
Translation
reserve
earnings
equity
' 000
' 000
' 000
' 000
' 000
' 000
' 000
' 000
At 1November 2016
264
673
(1,254)
21
17
-
9,323
9,044
Profit for the period
-
-
-
-
-
-
399
399
Other comprehensive income for the period, net of income tax
-
-
-
1
-
-
(57)
(56)
Total comprehensive income for the period
-
-
-
1
-
-
342
343
Consideration
Received by EBT on sale of shares 
-
-
44
-
-
-
-
44
Consideration paid by EBT on purchase of shares
-
-
-
-
-
-
-
-
Gain by EBT on sale of shares
-
-
(2)
-
-
-
2
-
Equity dividend paid
-
-
-
-
-
-
(183)
(183)
At 30 April 2017
264
673
(1,212)
22
17
-
9,484
9,248
Group reconciliation of movements in equity (unaudited) - continued
6 months to
Equity
Capital
Fair
Cashflow
30 April 2016
share
redemption
Treasury
value
Currency
hedge
Retained
Total
capital
reserve
shares
adjustment
Translation
reserve
earnings
equity
' 000
' 000
' 000
' 000
' 000
' 000
' 000
' 000
At 1November 2015
264
673
(1,235)
14
 7
-
9,307
9,030
Profit for the period
-
-
 -
 -
 -
-
 377
 377
Other comprehensive income for the period, net of income tax
-
-
 -
 3
 ( 3)
-
 280
 280
Total comprehensive income for the period
-
-
-
3
(3)
 -
657
657
Consideration
Received by EBT on sale of shares
-
-
40
-
-
-
-
40
Consideration paid by EBT on purchase of shares
-
-
(5)
-
-
-
-
(5)
Gain by EBT on sale of shares
-
-
(1)
-
-
-
1
-
Equity dividend paid
-
-
-
-
-
-
(179)
(179)
At 30 April 2016
264
673
(1,201)
17
4
-
9,786
9,543
Group reconciliation of movements in equity (unaudited) - continued
12 months to 31 October 2016
Audited
Equity share capital
000
Capital redemption reserve
000
Treasury shares
000
Fair value adjustment reserve
000
Currency translation
000
Cash flow hedge reserve
000
Retained earnings
000
Total equity 
000
At 1 November 2015
264
673
(1,235)
14
7
-
9,307
9,030
Profit for the year
-
-
-
-
-
-
1,365
1,365
Other comprehensive income for the year
net of income tax
-
-
-
7
10
-
(992)
(975)
Total comprehensive
income for the year
-
-
-
7
10
-
373
390
Consideration received by EBT on sale of shares
-
-
40
-
-
-
-
40
Consideration paid by
EBT on purchase of shares 
-
-
(58)
-
-
-
-
(58)
Gain by EBT on sale of shares
-
-
(1)
-
-
-
1
-
Equity dividends paid
-
-
-
-
-
-
(358)
(358)
At 31 October 2016
264
673
(1,254)
21
17
-
9,323
9,044
 
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.
Treasury shares
Treasury shares represent the cost of The Heavitree Brewery PLC shares purchased in the market and held by The Heavitree Brewery PLC Employee Benefit Trust ('EBT').
Notes to the interim results
1.Basis of preparation
These unaudited interim condensed and consolidated financial statements have been prepared in accordance with IAS34 "interim financial reporting" and do not constitute statutory accounts within the meaning of section 435 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 2016. The accounting policies are drawn up in accordance with International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) as adopted by the European Union.
These unaudited financial statements were approved and authorised for issue by a duly appointed and authorised committee of the Board of Directors on 29 June 2017.
2. Basic and diluted earnings per share
The calculation of basic earnings per ordinary share is based on earnings of 399,000 (2016: 377,000), being profit after taxation for the period, and on 5,064,830 (2016: 4,872,387) 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.
3. Segment information
Primary reporting format - Business segments
The primary segmental reporting format is determined to be business segments as the Group's risks and rates of return are affected predominantly by differences in the products and services provided.
During the year the Group operated in one business segment-leased estate.
Leased estate represents properties which are leased to tenants to operate independently from the Group. 
4. 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 2017 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 company news service from the London Stock Exchange
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