Heavitree Brewery - Interim Announcement 2015

Heavitree Brewery

29/06/2015 16:00

RNS Number : 4821R

Heavitree Brewery PLC

29 June 2015

The Heavitree Brewery PLC

Trood Lane

Matford

Exeter EX2 8YP

Date:  29 June 2015

Contact: Graham Crocker - Managing Director - 01392 217733

Nicola McLean - Company Secretary - 01392 217733

Pascal Keane - Shore Capital - 0207 468 7995

Following a meeting by a duly authorised committee of the Board of Directors held today, 29 June 2015, the Directors announce the interim results for the six months ended 30 April 2015.

Chairman's statement

The Company has returned an operating profit of 507,000 for the period under review which is 18% down on the previous year but slightly ahead ofour expectations. The drop in operating profit is as a result of a number of factors. Firstly, there was an increase in administration costs which included the cost of an agency operating a house over the winter months before it was returned to a tenancy. Secondly, an extra 20,000 valuationcost was incurred in our successful renewal of our banking facility for a new five year term. Thirdly, there was an increase in superannuation and pension scheme costs of 14,000. Finally, a number of houses, mostly owing to the substantial works being undertaken at each, have not contributed in the half year under review.

Results

The Group operating profit is 507,000 (2014 - 619,000), an 18% decrease on last year. After allowing for finance costs of 117,000 which includes 23,000 in respect of the IAS19 calculation referring to the final salary Pension Scheme (2014 - 156,000 and 53,000 respectively), the Group profit before taxation is 395,000 (2014 - 592,000). Heavitree Inc. returned a loss of 7,000 (2014 - profit of 13,000) and it is also worth noting that we sold four unlicensed properties during the corresponding period last year returning a profit of 129,000.

Dividend

The Directors have resolved to pay an interim dividend of 3.675p per Ordinary Share and 'A' Limited Voting Ordinary Share (2014 - 3.675p). The dividend will be paid on 07 August 2015 to shareholders on the Register at the close of business on 24 July 2015.

Prospects

The second half of the year will see the opening of the George and Dragon in Dartmouth and the Oddfellows (previously called the Heavitree) in Exmouth after major refurbishments and we look forward to seeing the increase in contribution from these two sites. Also, the Pen Inn opened in May after a major refurbishment by Mitchells and Butler to whom we have leased the pub. The additional income stream from these houses and the continued performance from the rest of our estate of fine pubs should stand us in good stead for the second half of the year.

N H P TUCKER

Chairman

Group income statement (unaudited)

For the six months ended 30 April 2015

6 months
to
30 April
2015
6 months
to
30 April
2014
Audited
12 months
to
31 October
2014
Note
' 000
' 000
' 000
Revenue
3,277
3,304
7,198
Change in stocks
-
-
-
Other operating income
113
125
230
Purchase of inventories
(1,405)
(1,417)
(3,127)
Staff costs
(562)
(526)
(1,144)
Depreciation of property, plant and equipment
(108)
(127)
(227)
Other operating charges
(808)
(740)
(1,526)
(2,770)
(2,685)
(5,794)
Group operating profit
507
619
1,404
Profit on sale of property, plant and equipment
5
129
466
Group profit before finance costs and taxation
512
748
1,870
Finance income
5
9
17
Finance costs
(99)
(112)
(203)
Other finance costs-pensions
(23)
(53)
(42)
(117)
(156)
(228)
Profit before taxation
395
592
1,642
Tax (expense)
(103)
(155)
(261)
Profit for the period
292
437
1,381
Earnings per share
- basic
- diluted
2
6.0p
6.0p
8.8p
8.8p
28.0p
28.0p

Group statement of comprehensive income (unaudited)

For the six months ended 30 April 2015

6 months
to
30 April
2015
6 months
to
30 April
2014
Audited
12 months
to
31 October
2014
' 000
' 000
' 000
Profit for the period
292
437
1,381
Items that will not be reclassified to profit or loss
Actuarial gains/(losses) on defined benefit pension plans
Tax relating to items that will not be reclassified
411
(82)
329
15
(3)
12
(415)
84
(331)
Items that may be reclassified to profit or loss
Cash flow hedges
Fair Value adjustment
Exchange rate differences on translation of subsidiary undertaking
Tax relating to items that may be reclassified
20
1
(2)
-
19
16
-
-
(4)
12
28
8
1
(6)
31
Other comprehensive income for the year, net of tax
640
461
1,081
Total comprehensive income attributable to:
Equity holders of the parent
640
461
1,081


Dividends

The Directors declare an interim dividend of 3.675p per share (2014 - 3.675p) on the Ordinary and 'A' Limited Voting Ordinary Shares. This dividend will be paid on 07 August 2015 to shareholders on the register at 24 July 2015.

Group balance sheet (unaudited)

at 30 April 2015

30 April
2015
' 000
30 April
2014
' 000
Audited
31 October 2014
'000
Non-current assets
Property, plant and equipment
16,077
14,701
15,043
Financial assets
37
31
35
Deferred tax asset
50
155
237
16,164
14,887
15,315
Current assets
Trade and other receivables
1,785
1,850
1,245
Inventories
10
10
10
Cash and short-term deposits
114
122
112
1,909
1,982
1,367
Assets held for sale
-
71
-
Total assets
18,073
16,940
16,682
Current liabilities
Trade and other payables
(1,055)
(1,032)
(954)
Financial liabilities
(1,580)
(1,165)
(4,858)
Income tax payable
(184)
(99)
(184)
(2,819)
(2,296)
(5,996)
Non-current liabilities
Other payables
(241)
(226)
(234)
Financial liabilities
(5,011)
(4,762)
(11)
Deferred tax liabilities
(200)
(212)
(200)
Defined benefit pension plan
(249)
(739)
(1,158)
(5,701)
(5,939)
(1,603)
Total liabilities
(8,520)
(8,235)
(7,599)
Net assets
9,553
8,705
9,083
Capital and reserves
Equity share capital
264
264
264
Capital redemption reserve
673
673
673
Treasury shares
(1,190)
(1,134)
(1,202)
Fair value adjustments reserve
17
12
16
Cash flow hedging reserve
-
(30)
(20)
Currency translation
5
6
7
Retained earnings
9,784
8,914
9,345
Total equity
9,553
8,705
9,083

Group statement of cash flows (unaudited)

for the six months ended 30 April 2015

6 months
to
30 April
2015
6 months
to
30 April
2014
Audited
12 months
to
31 October
2014
' 000
' 000
' 000
Profit for the period
Tax expense
Net finance costs
292
103
117
437
155
156
1,381
261
228
Profit on disposal of non-current assets and assets held for sale
(5)
(129)
(466)
Depreciation and impairment of property, plant and equipment
108
127
227
(Increase)/decrease in trade and other receivables
(651)
(486)
120
Increase in trade and other payables
104
184
113
Net pension charge
(522)
(507)
(507)
Cash generated from operations
(454)
(63)
1,357
Income taxes paid
-
(5)
(36)
Interest paid
(98)
(112)
(203)
Net cash (outflow)/inflow from operating activities
(552)
(180)
1,118
Investing activities
Interest received
5
9
17
Proceeds from sale of property, plant and equipment and assets held for sale
24
955
1,381
Payments to acquire property, plant and equipment
(1,050)
(189)
(649)
Net cash(outflow)/inflow from investing activities
(1,021)
775
749
Financing activities
Preference dividend paid
(1)
(1)
(1)
Equity dividends paid
(179)
(184)
(354)
Consideration received by EBT on sale of shares
30
36
37
Consideration paid by EBT on purchase of shares
(21)
(176)
(245)
Movement in long term borrowing
250
(250)
(250)
Net cash inflow/(outflow) from financing activities
79
(575)
(813)
(Decrease)/increase in cash and cash equivalents
(1,494)
20
1,054
Cash and cash equivalents at the beginning of the period
28
(1,026)
(1,026)
Cash and cash equivalents at the period end.
(1,466)
(1,006)
28

Group reconciliation of movements in equity (unaudited)

6 months to
Equity
Capital
Fair
Cashflow
30 April 2015
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 2014
264
673
(1,202)
16
7
(20)
9,345
9,083
Profit for the period
-
-
-
-
-
-
292
292
Other comprehensive income for the period, net of income tax
-
-
-
1
(2)
20
329
348
Total comprehensive income
for the period
-
-
-
1
(2)
20
621
640
Consideration
received
by EBT on sale of shares
-
-
30
-
-
-
-
30
Consideration paid
by EBT on purchase of
shares
-
-
(21)
-
-
-
-
(21)
Loss by EBT on sale
of shares
-
-
3
-
-
-
(3)
-
Equity dividend paid
-
-
-
-
-
-
(179)
(179)
At 30 April 2015
264
673
(1,190)
17
5
-
9,784
9,553


6 months to
Equity
Capital
Fair
Cashflow
30 April 2014
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 1 November 2013
264
673
(1,002)
8
6
(42)
8,657
8,564
Profit for the period
-
-
-
-
-
-
437
437
Other comprehensive income for the period net of income tax
-
-
-
4
-
12
12
28
Total comprehensive income
for the period
-
-
-
4
-
12
449
465
Consideration received by EBT on sale of shares
-
-


36
-
-
-
-
36
Consideration paid by EBT on purchase of shares
-
-
(176)
-
-
-
-
(176)
Loss by EBT on sale of shares
-
-
8
-
-
-
(8)
-
Equity dividend paid
-
-
-
-
-
-
(184)
(184)
At 30 April 2014
264
673
(1,134)
12
6
(30)
8,914
8,705


12 months to
Equity
Capital
Fair
Cashflow
31 October 2014
share
redemption
Treasury
value
Currency
hedge
Retained
Total
Audited
capital
reserve
shares
adjustment
translation
reserve
earnings
equity
' 000
' 000
' 000
' 000
' 000
' 000
' 000
' 000
At 1 November 2013
264
673
(1,002)
8
6
(42)
8,657
8,564
Profit for the year
-
-
-
-
-
-
1,381
1,381
Other comprehensive income for the year, net of income tax
-
-
-
8
1
22
(331)
(300)
Total comprehensive income
for the year
-
-
-
8
1
22
1,050
1,081
Consideration
received by EBT on sale of shares
-
-
37
-
-
-
-
37
Consideration paid by EBT on purchase of shares
-
-
(245)
-
-
-
-
(245)
Loss by EBT on sale of shares
-
-
8
-
-
-
(8)
-
Equity dividend paid
-
-
-
-
-
-
(354)
(354)
At 31 October 2014
264
673
(1,202)
16
7
(20)
9,345
9,083


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 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 2014. The accounting policies are drawn up in accordance with International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.

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 2015.

2. Basic and diluted earnings per share

The calculation of basic earnings per ordinary share is based on earnings of 292,000 (2014: 437,000), being profit after taxation for the period, and on 4,868,704 (2014: 4,977,646) 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 andrates 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 2015 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

  END

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