Interim Results

Heavitree Brewery PLC
29 June 2005

The Heavitree Brewery PLC
Trood Lane
Matford
Exeter EX2 8YP



Telephone: [phone]

Contact: Mr G.J.Crocker - Finance Director and Company Secretary
         Mr R.J.Glanville - Director

Date: 29 June 2005



Following a Board Meeting held today, 29 June 2005, the Directors announce the
half-year results for the six months ended 30 April 2005.




Group profit and loss account
for the six months ended 30 April 2005
                                                                                             As restated
                                                                                 2005            2004
                                                                   Notes         £000            £000

Turnover                                                                         5,830           5,742


Operating profit                                                                   542             432
Profit on sale of fixed assets                                                     241              11
Income from other fixed asset investments                                            -               -

Profit on ordinary activities before interest
 and taxation                                                                      783             443
Other interest receivable                                                            3               3
Interest payable                                                                 (176)           (134)
Profit on ordinary activities before taxation                                      610             312
Taxation on profit on ordinary activities                                        (185)            (92)
Profit attributable to shareholders                                                425             220
Dividends - equity and non-equity                                                (201)           (191)
Profit retained for the financial period                                           224              29
Basic and diluted earnings per share                                 3           7.89p           4.03p



All revenues and costs relate to continuing operations.



Dividends

The Directors propose an interim dividend of 3.5p per share (2004 - 3.5p) on the
Ordinary and 'A' Limited Voting Ordinary Shares. This dividend will be paid on
29  July 2005 to shareholders on the register at 8 July 2005.

Chairman's Statement


Results
The half-year has been satisfactory.  Turnover, beer and cider sales are all up
giving an Operating Profit up by 25.5% and Profit Before Tax of £610,000.
Nearly double last year's figure of £312,000.

The Managed Houses have nearly maintained last year's big improvement (of
£240,000) with a loss of £134,000 which is £30,000 worse than last year.

Properties
The Lamb Inn at Sandford, near Crediton has been sold giving rise to a profit of
£241,000.

Prospects for the year
I can do no better than to repeat, word for word, what I wrote this time last
year.  'Our performance so far deserves a year of all round improvement.
However, I am sorry to report that the cost, this year, of implementing the
legislation of which I warned in my 2003 statement looks like being about
£400,000.  This involves the Disability Discrimination Act, new Asbestos
Regulations and the new Licensing Act.  Some of this has already been incurred.
More will follow.  Bad news for us but good news for the fast growing army of
bureaucrats whose jobs depend on the invention of costly schemes.'  The warning
was confirmed in my year-end statement.

The majority of the £400,000 will in fact be paid in the second half of this
year.  It is therefore unlikely that there will be any growth in the year's
profit.  Nor any increase in dividend.  The warning was correct but the timing
was a bit adrift.  Rather like a weather forecast.

Dividend

An interim dividend of 3.5p (unchanged) on the Ordinary and 'A' Limited Voting
Ordinary Shares has been declared and will be paid on 29 July 2005 to
shareholders on the Register at 8 July 2005.


Compliance with all the regulations is also costing an enormous amount of
management time, which is a heavy burden on our already hard-working team.  In
the language of politics this is all known as 'cutting red tape'.



W P Tucker
Chairman
29 June 2005



Group balance sheet
At 30 April 2005


                                                                                             As restated
                                                                                 2005            2004
                                                                                 £000            £000
Fixed assets
Tangible assets                                                                 15,407          14,050
Investments                                                                        195             195
                                                                                15,602          14,245
Current assets
Stocks                                                                             146             155
Debtors                                                                          2,887           2,505
Cash at bank and in hand                                                           538             347
                                                                                 3,571           3,007
Creditors: amounts falling due within one year                                (10,671)         (9,325)
Net current liabilities                                                        (7,100)         (6,318)
Total assets less current liabilities                                            8,502           7,927
Creditors: amounts falling due after more than one year                          (284)           (248)

Provisions for liabilities and charges
Deferred taxation                                                                (218)           (281)
                                                                                 8,000           7,398
Capital and reserves
Called up share capital                                                            291             296
Capital redemption reserve                                                         658             653
Other reserves                                                                      72              75
Own shares reserve                                                               (674)           (664)
Profit and loss account                                                          7,653           7,038
                                                                                 8,000           7,398
Attributable to non-equity interests                                                11              11
Attributable to equity interests                                                 7,989           7,387
Total shareholders' funds                                                        8,000           7,398


Group statement of cash flows
for the six months ended 30 April 2005




                                                                                 2005            2004
                                                                   Note          £000            £000

Net cash inflow from operating activities                           4           1,047             900

Returns on investments and servicing of finance
Interest paid                                                                   (228)           (134)
Interest received                                                                   3               3
Preference dividend paid                                                          (1)             (1)
Net cash outflow from returns on investments
 and servicing of finance                                                       (226)           (132)


Taxation
Corporation tax paid                                                            (426)           (372)



Capital expenditure and financial investment
Payments to acquire tangible fixed assets                                       (880)           (417)
Receipts from sales of tangible fixed assets                                      315              11
Receipts from repayment of fixed assets investments                                 -               9
                                                                                (565)           (397)

Equity dividends paid                                                           (325)           (326)

Financing
Consideration received by EBT on sale of shares                                    39               -
Consideration paid by EBT on purchase of shares                                 (118)            (10)
Repayment of directors' loans                                                    (10)             (7)
Loans from directors                                                                -               -
                                                                                 (89)            (17)
Decrease in cash                                                                (584)           (344)


Notes to the interim results



1  These figures for the six months ended 30 April 2005 are unaudited.

2  The 2004 results have been restated following the implementation of
   Urgent Issues Task Force (UITF) Abstract 38 'Accounting for ESOP Trusts'.

3  Basic and diluted earnings per share

The calculation of basic earnings per ordinary share is based on earnings of
£424,000 (2004 restated: £219,000), being profit after taxation for the year of
£425,000 (2004 restated - £220,000) less preference dividends of £1,000 (2004 -
£1,000), and on 5,374,483 (2004 - 5,433,950) 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.


4   Group statement of cash flows

Reconciliation of operating profit to net cash inflow from operating activities:


                                                                             2005               2004
                                                                             £000               £000

Operating profit                                                              542                432
Depreciation                                                                  238                238
(Increase) in stocks                                                          (3)               (13)
(Increase) in operation debtors                                           (1,222)            (1,361)
Increase in operating creditors                                             1,492              1,604
Net cash inflow from continuing operating activities                         1047                900




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