HEAVITREE BREWERY PLC

Interim / Quarterly Report • Jun 28, 2013

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RNS Number : 0511I

Heavitree Brewery PLC

28 June 2013

The Heavitree Brewery PLC

Trood Lane

Matford

Exeter EX2 8YP

Date:                28 June 2013

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, 28 June 2013, the Directors announce the interim results for the six months ended 30 April 2013.

Chairman's statement

I am pleased to report that, helped by the good control of general costs, operating profit for the six months ended 30 April 2013 has improved by 11.7% over last year. This was despite turnover being down 3.5% in the period due, in part, to a drop in rental income as a result of two houses being closed for capital investment and two other houses being marketed for sale. Also, revenue has been affected by a drop in gaming machine income which we believe may be as a result of the increased popularity of the new style of machines in betting shops.  

RESULTS

The Group operating profit is £541,000 (2012 - £484,000) an increase of 11.7% on last year.  After allowing for finance costs of £143,000 which includes £40,000 in respect of the IAS 19 calculation referring to the closed final salary Pension Scheme (2012 £132,000 and £37,000 respectively), the Group profit before taxation is £398,000 (2012 - £352,000).

DIVIDEND

The Directors have resolved to pay an interim dividend of 3.5p per Ordinary Share and 'A' Limited Voting Ordinary Share (2012 - 3.5p).  The dividend will be paid on 2nd August 2013 to shareholders on the Register at the close of business on 19th July 2013.

PROSPECTS

It remains a challenging time to trade Public Houses and once again the adverse weather conditions and in particular the flooding in the region at the start of the year has not helped many of our Tenants.  It is very much to the credit of those who were flooded that they only lost in total two days of actual trading.

The Group operating profit at the end of the six months' period is encouraging and we hope for another steady performance in the second half of the year.

N H P TUCKER

Chairman

Group income statement (unaudited)

For the six months ended 30 April 2013

		6 months to 30 April 2013	6 months to 30 April 2012	Audited 12 months to 31  October 2012
	Note	£' 000	£' 000	£' 000
Revenue		3,266	3,383	7,268
Change in stocks		-	-	-
Other operating income		80	58	144
Purchase of inventories		(1,353)	(1,405)	(3,097)
Staff Costs		(501)	(573)	(1,211)
Depreciation of property, plant and equipment		(127)	(181)	(293)
Other operating charges		(824)	(798)	(1,566)
		(2,725)	(2,899)	(6,023)
Group operating profit		541	484	1,245
Profit on disposal of non-current assets and assets held for sale		-	-	(121)
Group profit before finance costs and taxation		541	484	1,124
Finance income		11	14	26
Finance costs		(114)	(109)	(168)
Other finance costs-pensions		(40)	(37)	(55)
		(143)	(132)	(197)
Profit before taxation		398	352	927
Tax (expense)		(118)	(131)	(296)
Profit for the period		280	221	631
Earnings per share - basic - diluted	2	5.5p 5.5p	4.4p  4.4p	12.5p 12.5p

Group statement of comprehensive income (unaudited)

For the six months ended 30 April 2013

		6 months to 30 April 2013	6 months to 30 April 2012	Audited 12months  to 31 October 2012
		£' 000	£' 000	£' 000
Profit for the period		280	221	631
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		98             (26) 72	(17)                5 (12)	(868)              208 (660)
Items that may be reclassified to profit or loss Cash flow hedges Fair value adjustment Tax relating to items that may be reclassified		7 -                (2) 5	- (23)                - (23)	(75) (26)               18 (83)
Other comprehensive income for the year, net of tax		357	186	(112)
Total comprehensive income attributable to: Equity holders of the parent		357	186	(112)

Dividends

The Directors declare an interim dividend of 3.5p per share (2012 - 3.5p) on the Ordinary and 'A' Limited Voting Ordinary Shares. This dividend will be paid on 2 August 2013 to shareholders on the register at 19 July 2013.

Group balance sheet (unaudited)

at 30 April 2013

		30 April 2013 £' 000	30 April 2012 £' 000	Audited 31 October 2012 £'000
Non-current assets
Property, plant and equipment		15,394	14,944	14,833
Financial assets		28	32	28
Deferred tax asset		268	190	417
		15,690	15,166	15,278
Current assets
Trade and other receivables		1,242	1,450	1,362
Inventories		10	10	10
Cash and short-term deposits		74	114	78
		1,326	1,574	1,450
Assets held for sale		525	-	525
Total assets		17,541	16,740	17,253
Current liabilities
Trade and other payables		(600)	(676)	(970)
Financial liabilities		(1,912)	(1,619)	(1,454)
Income tax payable		(5)	(5)	(102)
		(2,517)	(2,300)	(2,526)
Non-current liabilities
Other payables		(258)	(297)	(292)
Financial liabilities		(5,011)	(4,261)	(4,261)
Deferred tax liabilities		(215)	(251)	(220)
Defined benefit pension plan		(1,097)	(793)	(1,662)
		(6,581)	(5,602)	(6,435)
Total liabilities		(9,098)	(7,902)	(8,961)
Net assets		8,443	8,838	8,292
Capital and reserves
Equity share capital		264	264	264
Capital redemption reserve		673	673	673
Treasury shares		(891)	(804)	(875)
Fair value adjustments reserve		8	11	8
Cash flow hedging reserve		(52)	-	(57)
Currency translation		6	6	6
Retained earnings		8,435	8,688	8,273
Total equity		8,443	8,838	8,292

Group statement of cash flows (unaudited)

for the six months ended 30 April 2013

		6 months to 30 April 2013	6 months to 30 April 2012	Audited 12months  to 31 October 2012
		£' 000	£' 000	£' 000
# Profit for the period Tax expense Net finance costs		280 118 143	221 132 132	631 296 197
Profit on disposal of non-current assets and assets held for sale		-	-	(101)
Depreciation and impairment of property, plant and equipment		127	181	537
Decrease/(Increase) in trade and other receivables		147	(188)	(100)
(Decrease)/Increase in trade and other payables		(357)	(94)	125
Net pension charge		(507)	(507)	(507)
Cash generated from operations		(49)	(123)	1,078
Income taxes paid		(99)	(142)	(246)
Interest paid		(114)	(109)	(168)
Net cash (outflow)/inflow from operating activities		(262)	(374)	664
Investing activities
Interest received		11	14	26
Proceeds from sale of property, plant and equipment and assets held for sale		-	-	534
Payments to acquire property, plant and equipment		(762)	(255)	(1,386)
Net cash outflow from investing activities		(751)	(241)	(826)
Financing activities
Preference dividend paid		(1)	(1)	(1)
Equity dividends paid		(176)	(176)	(354)
Consideration received by EBT on sale of shares		41	54	54
Consideration paid by EBT on purchase of shares		(71)	(41)	(112)
Movement in long term borrowing		750	250	250
Net cash inflow/(outflow) from financing activities		543	86	(163)
Decrease in cash and cash equivalents		(470)	(529)	(325)
Cash and cash equivalents at the beginning of the period		(1,301)	(976)	(976)
Cash and cash equivalents at the period end.		(1,771)	(1,505)	(1,301)

Group reconciliation of movements in equity (unaudited)

6 months to	Equity	Capital		Fair		Cashflow
30 April 2013	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  2012	264	673	(875)	8	6	(57)	8,273	8,292
Total     comprehensive income
for the period	-	-	-	-	-	5	352	357
Consideration paid by EBT on purchase of shares	-	-	(71)	-	-	-	-	(71)
Consideration received
by EBT on sale of
shares	-	-	41	-	-	-	-	41
Gain by EBT on sale
of shares	-	-	14	-	-	-	(14)	-
Equity dividend  paid	-	-	-	-	-	-	(176)	(176)
At 30 April 2013	264	673	(891)	8	6	(52)	8,435	8,443

6 months to	Equity	Capital		Fair		Cashflow
30 April 2012	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  2011	264	673	(840)	34	6	-	8,679	8,816
Total     comprehensive income
for the period	-	-	-	(23)	-	-	209	186
Consideration paid by EBT on purchase of shares	-	-	(41)	-	-	-	-	(41)
Consideration received by EBT on sale of shares	-	-	54	-	-	-	-	54
Gain by EBT on sale of shares	-	-	23	-	-	-	(23)	-
Equity dividend  paid	-	-	-	-	-	-	(177)	(177)
At 30 April 2012	264	673	(804)	11	6	-	8,688	8,838

12 months to	Equity	Capital		Fair		Cashflow
31 October 2012	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  2011	264	673	(840)	34	6	-	8,679	8,816
Total     comprehensive income
for the period	-	-	-	(26)	-	(57)	(29)	(112)
Consideration paid by EBT on purchase of shares	-	-	(112)	-	-	-	-	(112)
Consideration received by EBT on sale of shares	-	-	54	-	-	-	-	54
Gain by EBT on sale of shares	-	-	23	-	-	-	(23)	-
Equity dividend  paid	-	-	-	-	-	-	(354)	(354)
At 31 October 2012	264	673	(875)	8	6	(57)	8,273	8,292

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 2012. 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 28 June 2013.

2.  Basic and diluted earnings per share

The calculation of basic earnings per ordinary share is based on earnings of £280,000 (2012: £221,000), being profit after taxation for the period, and on 5,029,763 (2012: 5,059,961) 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 2013 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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