Final Results
Heavitree Brewery PLC
14 February 2005
The Heavitree Brewery PLC
Trood Lane
Matford
Exeter EX2 8YP
Telephone: 01392 217733
Contact: Mr G.J.Crocker - Finance Director and Company Secretary
Mr R.J.Glanville - Director
Date: 14 February 2005
Preliminary Notice of Results
Following a Board Meeting held today, 14 February 2005, the Directors announce
the preliminary results for the year ended 31 October 2004.
Group profit and loss account
for the year ended 31 October 2004
As restated
2004 2003
Notes £000 £000
Turnover 12,487 12,309
Operating profit 1,850 1,360
Profit on sale of fixed assets 16 140
Income from other fixed asset investments 13 12
Profit on ordinary activities before interest
and taxation 1,879 1,512
Other interest receivable 9 27
Interest payable (298) (274)
Profit on ordinary activities before taxation 1,590 1,265
Taxation on profit on ordinary activities (432) (218)
Profit attributable to shareholders 1,158 1,047
Dividends - equity and non-equity 3 (510) (507)
Profit retained for the financial year 648 540
Basic and diluted earnings per share 4 21.4p 18.9p
All revenues and costs relate to continuing operations.
Dividends
The Directors propose a 4.3% increase in the final dividend to 6p per share
(2003 - 5.75p) on the Ordinary and 'A' Limited Voting Ordinary Shares making a
total of 9.5p per share (2003 - 9.25p) for the year. If approved at the Annual
General Meeting due to be held on 13 April 2005, this dividend will be paid on
14 April 2005 to shareholders on the register at 4 March 2005.
Chairman's Statement
Results
As indicated by the half-year report this has been another year of solid
improvement. The figures are distorted as costs of some £200,000 authorised but
not actually spent in 2004 have been reallocated to 2005. This money is part of
the £400,000 which I mentioned in June 2004 as being a minimum necessary spend
to comply with the new regulations regarding Disability Discrimination, Control
of Asbestos and Licensing. The profit for this year has benefited from this,
but next year's will suffer the consequences.
A profit before tax of £1,590,000 was achieved (2003 restated - £1,265,000)
which is an increase of 25.7% or £325,000 but bear in mind the £200,000
explained above.
Other headline figures are:
Core Company - operating profit of £1,900,000 (2003 restated - £1,680,000); an
increase of 13.1%.
The Managed Houses (Heavitree Inns) - operating loss of £45,000 (2003 - loss
£312,000); an improvement of £267,000 or 85.6%.
The American Subsidiary (Heavitree Inc) - operating loss of £5,000 (2003 - loss
£7,000).
Sales of Fixed Assets - a profit of £16,000 (2003 - £140,000).
Sales of Beer - up by 1.9% on volume.
Dividends
The Directors recommend a final dividend of 6p per Ordinary and 'A' Limited
Voting Ordinary Share (2003 - 5.75p); an increase of 4.3% making a total of 9.5p
for the year (2003 - 9.25p).
Shares
During the year we bought in and cancelled 100,000 'A' Limited Voting Ordinary
Shares at a cost of £350,000.
Heavitree Inns
I said last year that further progress could be expected and this has been
achieved in full measure. Everyone in this subsidiary has made a magnificent
effort. Losses at their worst were £482,000 in 2002. That was the year we took
these pubs back under our own control.
Heavitree Inc
There is nothing significant to report.
Property
We did not dispose of any properties in the year, although we acquired two
cottages for the expansion of our pub operations at a cost of £356,000. Minor
improvements were carried out at The Bishop John De Grandisson, Bishopsteignton,
Teignmouth; The Jolly Sailor Inn, East Ogwell, Newton Abbot; The Royal Oak Inn,
Ideford, Newton Abbot; and also The Ship Inn, Kingswear, which was subject to a
major spend following a landslip, resulting in a combined cost of £335,000.
Personnel
Everyone has done very well to achieve these results. Their efforts are much
appreciated.
Prospects
There are grounds for optimism but the barrage of legislation continues to
create uncertainty about the future. Indeed, the £400,000 mentioned in my
half-year statement and referred to under the 'Results' heading above appears
certain to be exceeded.
W P Tucker
Chairman
14 February 2005
Group balance sheet
At 31 October 2004
As restated
2004 2003
£000 £000
Fixed assets
Tangible assets 14,839 13,871
Investments 195 204
15,034 14,075
Current assets
Stocks 143 142
Debtors 1,665 1,144
Cash at bank and in hand 700 401
2,508 1,687
Creditors: amounts falling due within one year (9,199) (7,843)
Net current liabilities (6,691) (6,156)
Total assets less current liabilities 8,343 7,919
Creditors: amounts falling due after more than one year (270) (259)
Provisions for liabilities and charges
Deferred taxation (218) (205)
7,855 7,455
Capital and reserves
Called up share capital 291 296
Capital redemption reserve 658 653
Other reserves 72 75
Own shares reserve (595) (606)
Profit and loss account 7,429 7,037
7,855 7,455
Attributable to non-equity interests 11 11
Attributable to equity interests 7,844 7,444
Total shareholders' funds 7,855 7,455
Group statement of cash flows
for the year ended 31 October 2004
2004 2003
Note £000 £000
Net cash inflow from operating activities 5 1,785 1,942
Returns on investments and servicing of finance
Interest paid (246) (313)
Interest received 9 27
Dividends received 13 12
Preference dividend paid (1) (1)
Net cash outflow from returns on investments and servicing of
finance (225) (275)
Taxation
Corporation tax paid (330) 24
Return of overpayment of corporation tax 26 -
(304) 24
Capital expenditure and financial investment
Payments to acquire tangible fixed assets (1,609) (2,126)
Receipts from sales of tangible fixed assets 154 872
Receipts from repayment of fixed asset investments 9 2
(1,446) (1,252)
Equity dividends paid (502) (487)
Financing
Consideration received by EBT on sale of shares 203 66
Consideration received by EBT on exercise of share options 147 -
Consideration paid by EBT on purchase of shares (595) (434)
Repayment of directors' loans (23) -
Loans from directors 22 -
(246) (368)
Decrease in cash (938) (416)
Notes to the preliminary announcement
1 These figures do not constitute full accounts within the meaning of
S.240 of the Companies Act 1985. They have been extracted from the statutory
accounts for the year ended 31 October 2004, on which the auditors have issued
an unqualified audit report. The statutory accounts have not yet been delivered
to the Registrar of Companies.
2 The 2003 results have been restated following the implementation of
Urgent Issues Task Force (UITF) Abstract 38 'Accounting for ESOP Trusts'.
3 Dividends
2004 2003
£000 £000
Non-equity interests:
£1 11.5% Preference - paid 1 1
Equity interests:
Interim 3.5p per Ordinary and 'A' Limited Voting
Ordinary share (2003 - 3.5p) - paid 199 201
Proposed final 6p per Ordinary and 'A' Limited Voting
Ordinary share (2003 - 5.75p) 335 327
Less dividends on shares held within employee share schemes (25) (22)
509 506
510 507
4 Basic and diluted earnings per share
The calculation of basic earnings per ordinary share is based on earnings of
£1,157,000 (2003 restated: £1,046,000), being profit after taxation for the year
of £1,158,000 (2003 restated - £1,047,000) less preference dividends of £1,000
(2003 - £1,000), and on 5,414,935 (2003 - 5,548,910) shares being the weighted
average number of Ordinary and 'A' Limited Voting Ordinary Shares in issue
during the year 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.
The diluted earnings per share is equal to the basic earnings per share because
the share options within the Employee Share Option Scheme are considered to be
non-dilutive potential ordinary shares.
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 Group statement of cash flows
Reconciliation of operating profit to net cash inflow from operating activities:
2004 2003
£000 £000
Operating profit 1,850 1,360
Depreciation 503 505
(Increase)/decrease in stocks (1) 35
Increase in operating debtors (521) (46)
(Decrease)/increase in operating creditors (46) 88
Net cash inflow from continuing operating activities 1,785 1,942
6 Copies of the 2004 Annual Report and Accounts will be posted to
shareholders on 11 March 2005. Further copies may be obtained by contacting the
Company Secretary at The Heavitree Brewery PLC, Trood Lane, Matford, Exeter EX2
8YP. The Annual General Meeting is to be held at the Registered Office on 13
April 2005.
Ends.
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