REG - Heavitree Brewery - Interim Announcement

Heavitree BreweryAnnouncement

26/06/2019 14:00

RNS Number : 4743D
Heavitree Brewery PLC
26 June 2019
 


The Heavitree Brewery PLC
Trood Lane
Matford
Exeter EX2 8YP
 
Date:               26 June 2019
 
Contact:          Graham Crocker - Managing Director - 01392 217733
Nicola McLean - 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, 26 June 2019, the Directors announce the interim results for the six months ended 30 April 2019.
 
 
Chairman's statement
 
Turnover for the period under review has increased by £29,000 (0.9%) against the corresponding period last year.  However there has been a reduction in operating profit of 1.1% to £624,000 (2018: £631,000).  This has been as a result of increased costs associated with external management services at three houses which were traded over a period before new tenants were signed up.  In turn, there has been an impact on our rental revenue (a reduction of 2.6% on the previous year) during this period between tenants.
 
Results
 
The Group has returned an operating profit of £624,000 (2018: 631,000). After allowing for finance costs of £92,000 (2018: £132,000) and book profit mostly generated by the sale of one unlicensed property (£173,000), the Group Profit before taxation is £705,000 (2018: £1,329,000).  Although this reflects a significant decrease on the previous year it needs to be remembered that 2018's half year Group Profit contained a book profit of £830,000 as a result of the sale of four properties in that period.
 
Dividend
 
The Directors have resolved to pay an unchanged interim dividend of 3.675p per Ordinary Share and 'A' Limited Voting Ordinary Share (2018: 3.675p).  The dividend will be paid on 2 August 2019 to shareholders on the register at the close of business on 19 July 2019.
 
 
Property
 
A house on the old St.Loye's Hotel site in Exeter has been sold having completed on 19 February 2019.  Following the sale of a small block of flats on the site last year, the sale of this last house completes the sale of the properties developed on the garden area of the pub in 2012.
The second phase of our refurbishment of the Church House Inn in Stokenham comprising of a new bar, a small extension and a new fire escape for bed and breakfast rooms has been completed.  We look forward to a healthy contribution from this house over the summer months.  
 
Prospects
 
I am pleased with this steady performance for the half year with the Company trading in line with last year and I feel, despite the continuing political uncertainty, we are well-positioned going into the second half of the year.
 
 
 
N H P TUCKER
Chairman
Group income statement (unaudited)
For the six months ended 30 April 2019



 


 


 
6 months
to
30 April

2019


 
6 months
to
30 April
2018


Audited
12 months
to
31 October
2018




 


Note


£' 000


£' 000


£' 000




Revenue


 


3,427


3,398


7,614




Change in stocks


 


-


-


-




Other operating income


 


131


139


279




Purchase of inventories


 


(1,362)


(1,342)


(3,109)




Staff costs


 


(706)


(697)


(1,407)




Depreciation of property, plant and equipment


 


(111)


(115)


(235)




Other operating charges


 


(755)


(752)


(1,510)




 


 


(2,803)


(2,767)


(5,982)




Group operating profit


 


624


631


1,632




Profit on sale of property, plant and equipment


 


173


830


824




Movements in valuation of estate and related assets


 


          -


          -


          -




Group profit before finance costs and taxation


 


797


1,461


2,456




Finance income


 


2


2


5




Finance costs


 


(94)


(93)


(175)




Other finance costs-pensions


 


        -


(41)


(35)








 


(92)


(132)


(205)




Profit before taxation


 


705


1,329


2,251




Tax expense


 


(141)


(189)


(324)




Profit for the period


 


564


1,140


1,927




Earnings per share
- basic

- diluted


2


 
11.8p

11.8p


 
23.4p

23.4p


 
39.6p

39.6p



 
 
Group statement of comprehensive income (unaudited)
For the six months ended 30 April 2019



 


 


 
6 months
to
30 April

2019


 
6 months
to
30 April
2018


    Audited
   12months
    to
 31 October
      2018








 


£' 000


  £' 000


       £' 000




Profit for the period






        564


          1,140


          1,927




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
 






 
-
             -
-
 


 
(254)
             99
(155)


 
(248)
             42
(206)
 




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
 
 






 
(6)
 
(5)
              -
(11)


 
(5)
 
(6)
                  -
(11)


 
(4)
 
(2)
                  -
(6)




 




















Other comprehensive income for the year, net of tax






            553


             974


         1,715




Total comprehensive income attributable to:
Equity holders of the parent






 
             553


 
             974


 
          1,715

























 
 
 
 
Dividends
The Directors declare an interim dividend of 3.675p per share (2018 - 3.675p) on the Ordinary and 'A' Limited Voting Ordinary Shares. This dividend will be paid on 02 August 2019 to shareholders on the register at 19 July 2019.
 
 
Group balance sheet (unaudited)



at 30 April 2019


 


 
30 April
2019
£' 000


 
30 April
2018
£' 000


Audited
31 October 2018
£'000




Non-current assets




















Property, plant and equipment
 






19,064
 


18,163


18,906




Financial assets






42


47


47
 




Deferred tax asset






            38


              230


             38




 






       19,144


          18,440


        18,991




Current assets




















Trade and other receivables






1,322


1,861


1,292




Inventories






10


10


10




Cash and short-term deposits






          61


               113


               44












         1,393


            1,984


          1,346




Assets held for sale






-


328
 


62




Total assets






      20,537


          20,752


        20,399




Current liabilities




















Trade and other payables






(918)


(747)


(1,078)




Financial liabilities






(977)


(529)


(818)




Income tax payable






         (268)


            (281)


           (131)












      (2,163)


         (1,557)


        (2,027)




Non-current liabilities




















Other payables






(274)


(319)


(311)




Financial liabilities






(6,011)


(6,011)


(6,067)




Deferred tax liabilities






(300)


(345)


(300)




Defined benefit pension plan






      (40)


         (1,352)


        (39)












      (6,625)


         (8,027)


        (6,717)




Total liabilities






    (8,788)


       (9,584)


      (8,744)




Net assets






    11,749


          11,168


        11,655




Capital and reserves




















Equity share capital






264


264


264




Capital redemption reserve






673


673


673




Treasury shares






(1,573)


(1,240)


(1,317)




Fair value adjustments reserve






17


22


23




Currency translation






10


11


15




Retained earnings






12,358


          11,438


        11,997




Total equity






      11,749


          11,168


       11,655



 
 
 
 
Group statement of cash flows (unaudited)
for the six months ended 30 April 2019                                                           



 


 


 
6 months
to
30 April

2019


 
6 months
to
30 April
2018


Audited
12months
 to
31 October
2018




Operating activities


 


£' 000


£' 000


£' 000




Profit for the period






564


1,140


1,927




Tax expense






141


189


324




Net finance costs






92


132


206




(Profit) on disposal of non-current assets and assets held for sale






 
(173)


 
(830)


 
(824)




Depreciation and impairment of property, plant and equipment


 


165


115


235




Exchange gain on cash, liquid resources and loan


 


5


5


5




Difference between pension contributions paid and recognised in the income statement






 
-


 
(240)


 
(1,544)




(Increase)/decrease in trade and other receivables






(30)


(131)


284




(Decrease)/increase in trade and other payables






         (199)


           (60)


          380




Cash generated from operations






565


320


993




Income taxes paid






5


(8)


(188)




Interest paid






      (94)


        (93)


          (176)




Net cash inflow from operating activities






          466


          219


             629




Investing activities




















Interest received






2


2


6




Proceeds from sale of property, plant and equipment and assets held for sale






229


1,441


1,454




Payments to acquire property, plant and equipment






       (323)


       (249)


       (777)




Net cash(outflow)/ inflow from investing activities






       (92)


       1,194


           683




Financing activities




















Preference dividend paid






(1)


(1)


(1)




Equity dividends paid






(203)


(211)


(373)




Consideration received by EBT on sale of shares






-


53


54




Consideration paid by EBT on purchase of shares






(256)


(68)


(145)




Capital element of finance lease rental payments






(1)


(7)


(68)




Net cash outflow from financing activities






          (461)


         (234)


        (533)




(Decrease)/increase in cash and cash equivalents






(87)


(1,179)


779




Cash and cash equivalents at the beginning of the period






 (757)


       (1,536)


      (1,536)




Cash and cash equivalents at the period end






       (844)


        (357)


       (757)




 
Represented by:




















Cash and short term deposits






61


113


44




Overdraft






(905)


(470)


(801)




 






(844)


(357)


(757)




 



















 
 
 
Group reconciliation of movements in equity (unaudited)
 
 
 



6 months to


Equity


Capital


 


Fair


 


 


 




30 April 2019


share


redemption


Treasury


value


Currency


Retained


Total




 


capital


reserve


shares


adjustment


Translation


earnings


equity




 


£' 000


£' 000


 £' 000


£' 000


£' 000


£' 000


£' 000




 


 


 


 


 


 


 


 




At 1November 2018


264


673


(1,317)


23


15


11,997


11,655




Profit for the period


-


-


-


-


-


564


564




Other comprehensive income for the period, net of income tax


-


-


-


(6)


(5)


-


(11)




Total     comprehensive income for the period


-


-


-


(6)


(5)


564


553




Consideration
received by EBT on sale of shares                                  


 
 
 
-


 
 
 
-


 
 
 
-


 
 
 
-


 
 
 
-


 
 
 
-


 
 
 
-




Consideration paid by EBT on purchase of shares


-


-


(256)


-


-


-


(256)




 


 


 


 


 


 


 


 




Gain by EBT on sale of shares


-


-


-


-


-


-


-




Equity dividend paid


-


-


-


-


-


(203)


(203)




 


 


 


 


 


 


 


 




At 30 April 2019


264


673


(1,573)


17


10


12,358


11,749



 
 
 
 
Group reconciliation of movements in equity (unaudited) - continued
 



6 months to


Equity


Capital


 


Fair


 


 


 




30 April 2018


share


redemption


Treasury


value


Currency


Retained


Total




 


capital


reserve


shares


adjustment


Translation


earnings


equity




 


£' 000


£' 000


 £' 000


£' 000


£' 000


£' 000


£' 000




 


 


 


 


 


 


 


 




At 1November 2017


264


673


(1,223)


27


      17


10,646


10,404




Profit for the period


-


-


          -


         -


        -


      1,140


      1,140




Other comprehensive income for the period, net of income tax


-


-


          -


  (5)    


     (6)


      (155)


     (166)




Total     comprehensive income for the period


-


-


-


(5)


(6)


985


974




Consideration
received by EBT on sale of shares    


 
 
 
-


 
 
 
-


 
 
 
53


 
 
 
-


 
 
 
-


 
 
 
-


 
 
 
53




Consideration paid by EBT on purchase of shares


-


-


(68)


-


-


-


(68)




Gain by EBT on sale of shares


-


-


(2)


-


-


2


-




 


 


 


 


 


 


 


 




Equity dividend paid


-


-


-


-


-


(195)


(195)




 


 


 


 


 


 


 


 




At 30 April 2018


264


673


(1,240)


22


11


11,438


11,168



 
 
 
 
 
 
 
Group reconciliation of movements in equity (unaudited) - continued
 
 



 
 
12 months to 31 October 2018
Audited
 
 


Equity share capital
£000


Capital redemption reserve
£000


 
Treasury shares
£000


Fair value adjustment reserve
£000


 
Currency translation
£000


 
Retained earnings
£000


 
Total equity
£000




At 1 November 2017


264


673


(1,223)


27


17


10,646


10,404






































Profit for the year


-


-


-


-


-


1,927


1,927




Other comprehensive income for the year
net of income tax


-


-


-


(4)


(2)


(206)


(212)




Total comprehensive
































income for the year


-


-


-


(4)


(2)


1,721


1,715




Consideration received by EBT on sale of shares


 
-


 
-


 
54


 
-


 
-


 
-


 
54




Consideration paid by
































EBT on purchase of shares       


-


-


(145)


-


-


-


(145)




Gain by EBT on sale of shares


-


-


(3)


-


-


3


-




Equity dividends paid


-


-


-


-


-


(373)


(373)




At 31 October 2018


264


673


(1,317)


23


15


11,997


11,655



                                                               
 
 
 
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 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 2018 except for the adoption of new accounting standards as set out below. 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 26 June 2019.
 
The following new standards have been adopted, both effective from 1 November 2018:
 
IFRS15: Revenue from contracts with customers.  The Group's revenue primarily consists of drink and food sales to the leased estate, together with rental income from both the leased estate and investment properties.  Rental income is outside the scope of IFRS15.  The Directors have concluded that the existing method for recognising revenue from drink and food sales is in accordance with IFRS15, being the point in time at which control of those goods is passed to the customer.  There is therefore no impact upon adoption of the new standard.
 
IFRS9: Financial instruments.  The Group does not hold any complex financial instruments, and financial assets consist primarily of short term trade and other receivables.  IFRS9 introduces a new expected loss approach for determining impairment of financial assets.  The Directors have considered this against the current method for bad debt provisioning and no material change has been required.
 
 
 
 
2.  Basic and diluted earnings per share
The calculation of basic earnings per ordinary share is based on earnings of £564,000 (2018: £1,140,000), being profit after taxation for the period, and on 4,786,818 (2018: 4,876,995) 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.
 
 
 
 
Notes to the interim results - continued
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 2019 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.
 
END
 
 
IR MMGZVRVVGLZG