Final Results

RNS Number : 9403G
Heavitree Brewery PLC
16 February 2010
 



The Heavitree Brewery PLC

Trood Lane

Matford

Exeter EX2 8YP

 

Date:                16 February 2010

 

Contact:           Graham Crocker - Managing Director - 01392 217733

Rod Glanville - Director and Company Secretary - 01392 217733

Pascal Keane - Shore Capital - 0207 408 4090

 

 

Following a Board Meeting held today, 16 February 2010, the Directors announce the preliminary statement of results for the year ended 31 October 2009.

 

ISIN: GB0004182720 for 'A' Limited Voting Ordinary Shares

ISIN: GB0004182506 for Ordinary Shares

 

Chairman's statement

 

The successful restructuring of the Company by the return of houses in our former Managed House operation, Heavitree Inns Limited, to the tenanted and leased estate has resulted in a drop in turnover for the year due to the loss in associated retail sales.  The restructure has also brought with it exceptional costs for the year which I reported on at the half-year.  However I am pleased to be able to report on a marked improvement in both trading profit and underlying profitability.

The accounts for the year under review separate our business into "Discontinued Operations" and "Continuing Operations" in order to clarify the wind-up of Heavitree Inns.

Results

Turnover for the Group decreased against last year by 29.8% but generated a Group Operating Profit of £1,046,000 (2008: £554,000) after consolidation adjustments.

Heavitree Inns (having ceased trading at the year end) generated an Operating Loss of £279,000 (2008: Profit - £86,000).

Heavitree Inc. generated an Operating Loss of £13,000 (2008: Loss - £8,000).

Dividend

The Directors recommend a final dividend of 3.5p per Ordinary and 'A' Limited Voting Ordinary Share (2008: 7p) making an overall total for the year of 7p, which is unchanged from last year.  The dividend will be paid on 16 April 2010, subject to shareholder approval at the Annual General Meeting on 14 April 2010, to shareholders on the Register at 12 March 2010.

Property Sales

During the year the following properties, which were all held as 'Assets held for sale' as at 31 October 2008, were sold:

The Steam Packet Inn, Topsham.

The Heavitree Arms, Bideford.

The Old Rydon Inn, Kingsteignton.

The King's Arms, South Zeal.

The Dawlish Inn, Teignmouth.

The Hub, Exeter, which was not considered for disposal in the last financial year was also sold as was a small piece of land in Sandford, Crediton.

Together, the sale of these properties realised a book profit before taxation of £781,000.

At the time of writing no further houses are being marketed for sale.

Capital Investments

In the year under review there are no major capital works to report.

Pension Scheme

Following the decision that the Company will meet its funding obligations to its closed final salary Pension Scheme, I can confirm that the required deficit correction payment will be annualised over a period of eight years.  During this time the deficit will also be subject to further triennial actuarial funding reviews.

Repurchase of Shares

The Company did not purchase any of its own shares during the year under review but the Directors intend to seek shareholder approval at the forthcoming AGM for the continued authority to do so.

Outlook

Our restructure has allowed us to simplify our operation, improve our efficiencies and enhance support in our tenanted and leased estate of houses.  We remain focussed on our strategy of returning a dividend to shareholders at a time when other companies in our sector have chosen not to do so.  The industry continues to be subject to many well documented pressures and the economy as a whole is dogged by uncertainty.  The offer of the pub itself has changed irreversibly from what it once was.  The team at this Company are working hard to recognise and embrace all the opportunities that these changes are creating and are looking to satisfy the demands of an increasingly discerning market.   I would like to thank all our Tenants, Leaseholders and staff in helping to return a good and steady performance for the Company after a year of restructure during difficult trading times.

 

 

 

 

 

N H P TUCKER

Chairman

 

 

Group income statement

for the year ended 31 October 2009

 

 


 

 

 

Notes

Discontinued Operations

2009

£000

Continuing Operations

2009

£000

 

Total

2009

£000

Discontinued

Operations

2008

£000

Continuing Operations

2008

£000

 

Total

2008

£000

Revenue


2,152

7,058

9,210

6,838

6,276

13,114

Change in stocks


(144)

-

(144)

(33)

(13)

(46)

Other operating income


-

83

83

-

63

63

Purchase of inventories


(743)

(2,899)

(3,642)

(2,756)

(2,130)

(4,886)

Staff costs


(766)

(1,234)

(2,000)

(2,358)

(1,431)

(3,789)

Depreciation of property, plant and equipment


 

(100)

 

(352)

 

(452)

 

(244)

 

(318)

 

(562)

Other operating charges


(678)

(1,331)

(2,009)

(1,361)

(1,979)

(3,340)



(2,431)

(5,733)

(8,164)

(6,752)

(5,808)

(12,560)

Group operating profit/(loss)


(279)

1,325

1,046

86

468

554

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


 

(96)

 

877

 

781

 

3

 

925

 

928

Restructuring and finance costs


(103)

(267)

(370)

-

-

-

Group profit/(loss) before finance costs and taxation


 

(478)

 

1,935

 

1,457

 

89

 

1,393

 

1,482

Finance income


-

26

26

-

34

34

Finance costs


-

(153)

(153)

-

(420)

(420)

Other finance costs - pensions


-

(77)

(77)

-

(74)

(74)



-

(204)

(204)

-

(460)

(460)









Profit/(loss) before taxation


(478)

1,731

1,253

89

933

1,022

Tax (expense)/credit


33

(175)

(142)

(9)

120

111









Profit/(loss) for the year attributable to equity holders of the parent


 

(445)

 

1,556

 

1,111

 

80

 

1,053

 

1,133









Basic earnings per share

2

(8.7)p

30.4p

21.7p

1.5p

20.4p

21.9p









Diluted earnings per share

2

(8.7)p

30.4p

21.7p

1.5p

20.4p

21.9p

 

 

 

 

 

 

 

Group statement of recognised income and expense

for the year ended 31 October 2009

 


 

2009

£000

 

2008

£000

Income and expense recognised directly in equity





Actuarial (losses)/gains on defined benefit pension plans


(1,456)


386

Tax credit/(expense)on items taken directly to or transferred from equity


 

410


 

(92)

Exchange difference on retranslation of subsidiary


-


2

Fair value adjustment


(8)


(54)






Net(expense)/ income recognised directly in equity


(1,054)


242






Profit for the year


1,111


1,133






Total recognised income and expense for the year


57


1,375

 

 

Group balance sheet

at 31 October 2009

 

 

 

 

2009

£000

 

 

 

2008

£000

Non-current assets

 




Property, plant and equipment

 

13,683


14,682

Financial assets

 

50


58

Deferred tax asset

 

598


295

 

 

14,331


15,035

Current assets

 




Inventories

 

19


163

Trade and other receivables

 

1,668


1,796

Cash and short-term deposits

 

521


324


 

2,208


2,283

Assets held for sale

 

-


795

Total assets

 

16,539


18,113

Current liabilities

 




Trade and other payables

 

(915)


(1,582)

Financial liabilities

 

-


(6,479)

Income tax payable

 

(77)


(104)


 





 

(992)


(8,165)

Non-current liabilities

 




Other payables


(272)


(232)

Financial liabilities

 

(5,011)


(11)

Deferred tax liabilities

 

(261)


(367)

Defined benefit pension plan

 

(2,088)


(1,005)


 

(7,632)


(1,615)

Total liabilities

 

(8,624)


(9,780)

Net assets

 

7,915


8,333

Capital and reserves

 




Equity share capital

 

264


264

Capital redemption reserve

 

673


673

Treasury shares

 

(994)


(1,248)

Fair value adjustments reserve

 

30


38

Currency translation

 

3


3

Retained earnings

 

7,939


8,603

Total equity

 

7,915


8,333

 

Group statement of cash flows

for the year ended 31 October 2009

 


 

 

Notes

 

 

2009

£000

 

 

 

2008

£000

Operating activities





Profit for the year


1,111


1,133

Tax


142


(111)

Net finance costs


204


460

Profit on disposal of non current assets and assets held for sale


(781)


(928)

Depreciation and impairment of property, plant and equipment


452


767

Share-based payments


13


13

Difference between pension contributions paid and amounts





   recognized in the income statement


(450)


(158)

Decrease in inventories


144


47

Increase/(decrease) in trade and other receivables


129


(297)

Decrease in trade and other payables


(626)


(17)






Cash generated from operations


338


909

Income tax paid


  (169)


(169)






Net cash flow from operating activities


169


740






Investing activities





Interest received


26


32

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


 

2,184


 

2,252

Payments to acquire property, plant and equipment


(61)


(1,558)

Dividends received


-


1






Net cash flow from investing activities


2,149


727






Financing activities





Interest paid


(153)


(419)

Preference dividend paid


(1)


(1)

Dividends paid

3

(537)


(370)

Repayment of  loans from Directors'


-


(74)

Consideration received by EBT on sale of shares


49


145

Consideration paid by EBT on purchase of shares


-


(366)

Repurchase of share capital


-


(1,899)

Net movement in long term borrowings


5,000


-






Net cash flow from financing activities


4,358


(2,984)






Increase)/(decrease) in cash and cash equivalents


6,676


(1,517)

Cash and cash equivalents at the beginning of the year


(6,155)


(4,638)






Cash and cash equivalents at the year end


521


(6,155)

 

 

Group reconciliation of movements in equity

 


Equity share capital

£000

Capital redemption reserve

£000

 

Treasury shares

£000

Fair value adjustments reserve

£000

 

Currency translation

£000

 

Retained earnings

£000

 

Total equity

£000

At 1 November 2007

273

664

(963)

92

1

9,368

9,435

Total recognised income








 and expense for the year

-

-

-

(54)

2

1,427

1,375

Transfer in respect of the








   buy back of own shares

(9)

9

-

-

-

(1,899)

(1,899)

Consideration paid by








   EBT on purchase








   of shares

-

-

(366)

-

-

-

(366)

Consideration received








   by EBT on sale of








   Shares

-

-

145

-

-

-

145

Gain by EBT on sale








   of shares

-

-

(64)

-

-

64

-

Share based payment

-

-

-

-

-

13

13

Equity dividends paid

-

-

-

-

-

(370)

(370)









At 31 October 2008

264

673

(1,248)

38

3

8,603

8,333

 

 


Equity share capital

£000

Capital redemption reserve

£000

 

Treasury shares

£000

Fair value adjustments reserve

£000

 

Currency translation

£000

 

Retained earnings

£000

 

Total equity

£000

At 31 October 2008

264

673

(1,248)

38

3

8,603

8,333

Total recognised income








   and expense for the year

-

-

-

(8)

-

65

57

Consideration received








   by EBT on sale of








   Shares

-

-

49

-

-

-

49

Loss by EBT on sale








   of shares

-

-

205

-

-

(205)

-

Share based payment

-

-

-

-

-

13

13

Equity dividends paid

-

-

-

-

-

(537)

(537)









At 31 October 2009

264

673

(994)

30

3

7,939

7,915

 

 

 

                                                               

 

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 Ordinary Shares of 5p each and 'A' Limited Voting Ordinary Shares of 5p each.

 

Capital Redemption Reserve

The capital redemption reserve arises on the re-purchase and cancellation by the Company of Ordinary Shares.

 

Treasury shares

Treasury shares represents the cost of The Heavitree Brewery PLC shares purchased in the market and held by The Heavitree Brewery PLC Employee Benefit Trust and Employee Share Option Scheme('EBT') .

At 31 October 2009 the Group held 58,779 Ordinary Shares and 87,332 'A' Limited Voting Ordinary Shares (2008: 58,779 Ordinary Shares and 120,393 'A' Limited Voting Ordinary Shares) of its own shares at an average cost of £5.82 (2008: £6.81). The market value of these shares as at 31 October 2009 was £359,000 (2008: £776,000)

Fair value adjustments reserve

The fair value adjustments reserve is used to record differences in the market value of the available-for-sale investment year on year.

Foreign currency translation reserve

The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries.

 

 

 

 

Notes to the preliminary announcement

 

1.  Basis of preparation

 

These figures do not constitute full accounts within the meaning of Section 396 of the Companies Act 2006. They have been extracted from the statutory financial statements for the year ended 31 October 2009. The statutory financial statements have not yet been delivered to the Registrar of Companies.  They have been prepared on the basis of the accounting policies as set out in the Group's IFRS Restatement Announcement issued on 22 July 2008, and which is available upon request. Further disclosure concerning the impact of IFRS on the financial statements of the Group can also be found in that document including the reconciliations required by IFRS 1 'First Time Adoption of International Financial Reporting Standards'. 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. 

 

2.  Basic and diluted earnings per share

Basic earnings per share amounts are calculated by dividing profit for the year attributable to ordinary equity holders of the parent by the weighted average number of Ordinary shares and 'A' Limited Voting Ordinary shares outstanding during the year.

Diluted earnings per share amounts are calculated by dividing the profit attributable to ordinary equity holders of the parent by the weighted average number of Ordinary shares and 'A' Limited Voting Ordinary shares outstanding during the year as diluted for the share options in issue.

The following reflects the income and shares data used in the basic and diluted earnings per share computations:

 


2009

£000

2008

£000

Profit for the year

1,111

1,133





2009

No.

(000)

2008

No.

(000)

Basic weighted average number of shares (excluding treasury shares)

5,117

5,165

Dilutive potential ordinary shares:



   Employee share options

-

-




Diluted weighted average number of shares

5,117

5,165

 

 

There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of completion of these financial statements.

Employee share options could potentially dilute basic earnings per share in the future but are not included in the 2009 calculation of dilutive earnings per share because they are antidilutive for the period presented.

3. Dividends paid and proposed

 


2009

£000

2008

£000

Declared and paid during the year:



Equity dividends on ordinary shares:



   Final dividend for 2008: 7p (2007: 7p)

369

381

   First dividend for 2009: 3.5p (2008: Nil)

185

-

   Less dividend on shares held within employee share schemes

(17)

(11)




Dividends paid

537

370




Proposed for approval at AGM



(not recognised as a liability as at 31 October)






   Final dividend for 2009: 3.5p (2008: 7p)

180

357

 

 

4.  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 two business segments; leased estate and managed estate. 

Leased estate represents properties which are leased to tenants to operate independently from the Group.

Managed estate represents properties which were owned, operated and maintained by the Group and represents the discontinued operations.

Segment information





Year ended 31 October 2009

Leased

£000

Managed

£000

Eliminations

£000

Total

£000

Revenue





Sales to external customers

7,058

2,152

-

9,210

Inter-segment sales

357

-

(357)

-






Segment revenue

7,415

2,152

(357)

9,210






Results





Segment results

1,858

(478)

-

1,380

Unallocated expenses




(127)

Profit before taxation




1,253

Tax credit




(142)

Profit for the year




1,111

Assets and liabilities





Segment assets

15,941

-

-

15,941

Unallocated assets




598

Total assets




16,539

Segment liabilities

(8,259)

-

-

(8,259)

Unallocated liabilities




(365)

Total liabilities




(8624)






Other segment information





Capital expenditure:





Property, plant and equipment

57

4

-

61

Depreciation

352

100

-

452






Year ended 31 October 2008

Leased

£000

Managed

£000

Eliminations

£000

Total

£000

Revenue





Sales to external customers

6,276

6,838

-

13,114

Inter-segment sales

1,262

-

(1,262)

-

Segment revenue

7,538

6,838

(1,262)

13,114

Results





Segment results

1,319

89

-

1,408

Unallocated expenses




(386)

Profit before taxation




1,022

Tax credit




111

Profit for the year




1,133






Assets and liabilities





Segment assets

17,184

1,462

(828)

17,818

Unallocated assets




295

Total assets




18,113






Segment liabilities

(8,741)

(1,396)

828

(9,309)

Unallocated liabilities




(471)

Total liabilities




(9,780)






Other segment information





Capital expenditure:





Property, plant and equipment

1,304

254

-

1,558

Depreciation

318

244

-

562

Impairment of assets held for sale

205

-

-

205

 

Secondary reporting format - geographical segments

The following tables present revenue, expenditure and certain asset information regarding the Group's geographical segments for the years ended 31 October 2009 and 2008. Revenue is based on the geographical location of customers and assets are based on the geographical location of the asset.

 

 

 

Year ended 31 October 2009

 

UK

£000

United States

£000

 

Total

£000

Revenue




Sales to external customers

9,210

-

9,210





Other segment information




Segment assets

15,890

51

15,941

Unallocated assets



598





Total assets



16,539





Capital expenditure




Property, plant and equipment

61

-

61

 

 

Year ended 31 October 2008

 

 

 

UK

£000

 

 

 

United States

£000

 

 

 

Total

£000

Revenue




Sales to external customers

13,114

-

13,114





Other segment information




Segment assets

17,753

65

17,818

Unallocated assets



295





Total assets



18,113





Capital expenditure




Property, plant and equipment

1,537

21

1,558

 

 

5. General information

The 2009 Annual Report and Financial Statements will be published and posted to shareholders on 10 March 2010. Further copies may be obtained by contacting the Company Secretary at The Heavitree Brewery PLC, Trood Lane, Matford, Exeter EX2 8YP. The 2009 Annual Report and Financial Statements will also be available on the Company's website at http://www.heavitreebrewery.co.uk/financial/

 

 

The Annual General Meeting will be held at the Registered Office on 14 April 2010 at 11.30am.

 

.

 

Ends. 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
FR TMMLTMBJBMJM
UK 100

Latest directors dealings