REG - Heavitree Brewery - Half year Results
27/06/2025 12:00
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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
Audited
6 months 6 months 12 months
to to to
30 April 30 April 31 October
2025
2024 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 4
- basic 23.3p 23.3p 11.9p 27.2p
- diluted
11.9p
27.2p
Statement of comprehensive income (unaudited)
For the six months ended 30 April 2025
Audited
6 months 6 months 12months
to to to
30 April 30 April 31 October
2025
2024 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 Audited
30 April 30 April 31 October 2024
2025 2024 £'000
£' 000 £' 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
Audited
6 months 6 months 12months
to to to
30 April 30 April 31 October
2025
2024 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 6 months Audited
to to 12months
30 April 30 April to
2025 2024 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
Equity share capital Capital redemption reserve Own Fair value adjustment reserve
£000 £000 share reserves £000 Retained earnings Total equity
12 months to 31 October 2024 £000 £000 £000
Audited
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 (http://www.heavitreebrewery.co.uk)
.
Ends.
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