Half Yearly Report

RNS Number : 2614G

Heavitree Brewery PLC

29 June 2012

 



The Heavitree Brewery PLC

Trood Lane

Matford

Exeter EX2 8YP

Date:                29 June 2012

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, 29 June 2012, the Directors announce the interim results for the six months ended 30 April 2012.

Chairman's statement

Revenue has suffered in the final month of this period under review due to the poor weather experienced in April.  This drop in turnover together with building repair costs of £58,000 greater than last year has had a detrimental effect on what had been a steady performance for the first part of this year.  In turn, there has been a drop in operating profit for the Group against the previous year.

RESULTS

The Group operating profit is £484,000 (2011 - £558,000) following a drop in turnover of £22,000 against the previous year, a fall of 0.65%.  After allowing for an additional finance cost of £37,000 in respect of the FRS 17 calculation relating to our closed final salary Pension Scheme, the Group profit before taxation is £352,000 (2011 - £450,000). 

DIVIDEND

The Directors have resolved to pay an interim dividend of 3.5p per Ordinary Share and 'A' Limited Voting Ordinary Share (2011 - 3.5p).  The dividend will be paid on 3 August 2012 to shareholders on the Register at the close of business on 20 July 2012.

PROSPECTS

The economic climate both at home and in Europe remains uncertain and it continues to be a difficult time in which to trade Public Houses.   The weather conditions over the summer months have a huge influence over the successful trading of our pubs and unfortunately June has been unusually wet.  Another period of cautious housekeeping lies ahead in order to deliver another steady performance for the Company.

N H P TUCKER

Chairman

Group income statement (unaudited)

For the six months ended 30 April 2012

		6 months to 30 April 2012	6 months to 30 April 2011	Audited 12 months to 31  October 2011
	Note	£' 000	£' 000	£' 000
Revenue		3,383	3,405	7,352
Change in stocks		-	-	-
Other operating income		58	49	113
Purchase of inventories		(1,405)	(1,433)	(3,134)
Staff Costs		(573)	(561)	(1,194)
Depreciation of property, plant and equipment		(181)	(200)	(295)
Other operating charges		(798)	(702)	(1,434)
		(2,899)	(2,847)	(5,944)
Group operating profit		484	558	1,408
Profit on disposal of non-current assets and assets held for sale		-	10	10
Group profit before finance costs and taxation		484	568	1,418
Finance income		14	16	33
Finance costs		(109)	(79)	(138)
Other finance costs-pensions		(37)	(55)	(81)
		(132)	(118)	(186)
Profit before taxation		352	450	1,232
Tax (expense)		(131)	(182)	(389)
Profit for the period		221	268	843
Earnings per share - basic - diluted	2	4.4p 4.4p	5.2p 5.2p	16.4p 16.4p

Group statement of comprehensive income (unaudited)

For the six months ended 30 April 2012

		6 months to 30 April 2012	6 months to 30 April 2011	Audited 12months  to 31 October 2011
		£' 000	£' 000	£' 000
Actuarial (losses)/gains on defined benefit pension plans Fair Value Adjustment		(17)    (23) _______ (40)	25 (9) _______ 16	130 4  _______ 134
Tax on items taken directly to or transferred from equity		5	(9)	(33)
Net (expense)/income recognised directly in equity		(35)	7	101
Profit for the period		221	268	843
Total comprehensive income  for the period		186	275	944

 

Dividends

The Directors declare an interim dividend of 3.5p per share (2011 - 3.5p) on the Ordinary and 'A' Limited Voting Ordinary Shares. This dividend will be paid on 3 August 2012 to shareholders on the register at 20 July 2012.

Group balance sheet (unaudited)

at 30 April 2012

		30 April 2012 £' 000	30 April 2011 £' 000	Audited 31 October 2011 £'000
Non-current assets
Property, plant and equipment		14,944	14,624	15,225
Financial assets		32	41	54
Deferred tax asset		190	345	325
		15,166	15,010	15,604
Current assets
Trade and other receivables		1,450	1,763	1,262
Inventories		10	10	10
Cash and short-term deposits		114	204	86
		1,574	1,977	1,358
Total assets		16,740	16,987	16,962
Current liabilities
Trade and other payables		(676)	(807)	(1,095)
Financial liabilities		(1,619)	(1,513)	(5,062)
Income tax payable		(5)	(274)	(144)
		(2,300)	(2,594)	(6,301)
Non-current liabilities
Other payables		(297)	(303)	(327)
Financial liabilities		(4,261)	(4,011)	(11)
Deferred tax liabilities		(251)	(265)	(261)
Defined benefit pension plan		(793)	(1,325)	(1,246)
		(5,602)	(5,904)	(1,845)
Total liabilities		(7,902)	(8,498)	(8,146)
Net assets		8,838	8,489	8,816
Capital and reserves
Equity share capital		264	264	264
Capital redemption reserve		673	673	673
Treasury shares		(804)	(680)	(840)
Fair value adjustments reserve		11	21	34
Currency translation		6	6	6
Retained earnings		8,688	8,205	8,679
Total equity		8,838	8,489	8,816

Group statement of cash flows (unaudited)

for the six months ended 30 April 2012

		6 months to 30 April 2012	6 months to 30 April 2011	Audited 12months  to 31 October 2011
		£' 000	£' 000	£' 000
Profit for the period Tax Net finance costs		221 132 132	268 182 118	843 389 186
Profit on disposal of non-current assets and assets held for sale		-	(10)	(10)
Depreciation and impairment of property, plant and equipment		181	200	295
(Increase)/Decrease in trade and other receivables		(188)	(319)	182
(Decrease)/Increase in trade and other payables		(94)	82	39
Net pension charge		(507)	(507)	(507)
Cash generated from operations		(123)	14	1,417
Income taxes paid		(142)	(4)	(349)
Interest paid		(109)	(79)	(138)
Net cash (outflow)/inflow from operating activities		(374)	(69)	930
Investing activities
Interest received		14	16	33
Proceeds from sale of property, plant and equipment and assets held for sale		-	24	114
Payments to acquire property, plant and equipment		(255)	(768)	(1,199)
Net cash outflow from investing activities		(241)	(728)	(1,052)
Financing activities
Preference dividend paid		(1)	(1)	(1)
Equity dividends paid		(176)	(179)	(360)
Consideration received by EBT on sale of shares		54	43	43
Consideration paid by EBT on purchase of shares		(41)	(33)	(194)
Movement in long term borrowing		250	-	-
Net cash inflow/(outflow) from financing activities		86	(170)	(512)
Decrease in cash and cash equivalents		(529)	(967)	(634)
Cash and cash equivalents at the beginning of the period		(976)	(342)	(342)
Cash and cash equivalents at the period end.		(1,505)	(1,309)	(976)

Group reconciliation of movements in equity (unaudited)

6 months to	Equity	Capital		Fair
30 April 2012	share	redemption	Treasury	value	Currency	Retained	Total
	capital	reserve	shares	adjustment	translation	earnings	equity
	£' 000	£' 000	£' 000	£' 000	£' 000	£' 000	£' 000
At 1November  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

6 months to	Equity	Capital		Fair
30 April 2011	share	redemption	Treasury	value	Currency	Retained	Total
	capital	reserve	shares	adjustment	translation	earnings	equity
	£' 000	£' 000	£' 000	£' 000	£' 000	£' 000	£' 000
At 1 November  2010	264	673	(826)	30	6	8,236	8,383
Total     comprehensive income
for the period	-	-	-	(9)	-	284	275
Consideration paid by EBT on purchase of shares	-	-	(33)	-	-	-	(33)
Consideration received by EBT on sale of shares	-	-	43	-	-	-	43
Gain by EBT on sale of shares	-	-	136	-	-	(136)	-
Equity dividend  paid	-	-	-	-	-	(179)	(179)
At 30 April 2011	264	673	(680)	21	6	8,205	8,489

12 months to	Equity	Capital		Fair
31 October 2011	share	redemption	Treasury	value	Currency	Retained	Total
Audited	capital	reserve	shares	adjustment	translation	earnings	equity
	£' 000	£' 000	£' 000	£' 000	£' 000	£' 000	£' 000
At 1 November  2010	264	673	(826)	30	6	8,236	8,383
Total     comprehensive income
for the period	-	-	-	4	-	940	944
Consideration paid by EBT on purchase of shares	-	-	(194)	-	-	-	(194)
Consideration received by EBT on sale of shares	-	-	43	-	-	-	43
Loss by EBT on sale of shares	-	-	137	-	-	(137)	-
Equity dividend  paid	-	-	-	-	-	(360)	(360)
At 31 October 2011	264	673	(840)	34	6	8,679	8,816

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 2011. 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 29 June 2012.

2.  Basic and diluted earnings per share

The calculation of basic earnings per ordinary share is based on earnings of £221,000 (2011: £268,000), being profit after taxation for the period, and on 5,059,961 (2011: 5,142,671) 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 2012 has been posted to shareholders today and will be available on our website at www.heavitreebrewery.co.uk.

Ends. 

 

END

 

 

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