Half Yearly Report

RNS Number : 7448K

Heavitree Brewery PLC

27 June 2014

 



The Heavitree Brewery PLC

Trood Lane

Matford

Exeter EX2 8YP

Date:                27 June 2014

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, 27 June 2014, the Directors announce the interim results for the six months ended 30 April 2014.

Chairman's statement

The truly awful weather at the start of the year, in particular during February, saw several of our houses being battered by the much reported storms and threatened by floods.  The hard work and determination of those tenants that were directly affected and the proactive and reactive efforts of both our maintenance and management teams has helped our sales to hold up well within the estate.  I am pleased to report that operating profit for the six months ended 30 April 2014 has improved by 14.4% over last year.  This is despite the loss of rental income from two closed pubs which are waiting to be refurbished.

RESULTS

The Group operating profit is £619,000 (2013 - £541,000), an increase of 14.4% on last year.  After allowing for finance costs of £156,000 which includes £53,000 in respect of the IAS19 calculation referring to the closed final salary Pension Scheme (2013 - £143,000 and £40,000 respectively), together with a profit on the sale of property of £129,000 the Group profit before taxation is £592,000 (2013 - £398,000).

I reported at the year end that four flats on the old St Loye's Pub site in Exeter were to be marketed for sale following this very successful development.  These four sales have now completed realising a profit before tax of £129,000 as mentioned above. 

DIVIDEND

The Directors have resolved to pay an increased interim dividend of 3.675p per Ordinary Share and 'A' Limited Voting Ordinary Share (2013 - 3.5p).  The dividend will be paid on 01 August 2014 to shareholders on the Register at the close of business on 18 July 2014.

PROSPECTS

We have accepted offers on the Artichoke Inn at Christow and The Vestry at Newton Abbot. 

I am pleased to be reporting this Group operating profit at the end of the six months' period and I am looking forward to 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 2014

		6 months to 30 April 2014	6 months to 30 April 2013	Audited 12 months to 31  October 2013
	Note	£' 000	£' 000	£' 000
Revenue		3,304	3,266	7,231
Change in stocks		-	-	-
Other operating income		125	80	166
Purchase of inventories		(1,417)	(1,353)	(3,079)
Staff Costs		(526)	(501)	(1,102)
Depreciation of property, plant and equipment		(127)	(127)	(240)
Other operating charges		(740)	(824)	(1,631)
		(2,685)	(2,725)	(5,886)
Group operating profit		619	541	1,345
Profit/(loss) on sale of property, plant and equipment		129	-	(85)
Group profit before finance costs and taxation		748	541	1,260
Finance income		9	11	22
Finance costs		(112)	(114)	(207)
Other finance costs-pensions		(53)	(40)	(61)
		(156)	(143)	(246)
Profit before taxation		592	398	1,014
Tax (expense)		(155)	(118)	(270)
Profit for the period		437	280	744
Earnings per share - basic - diluted	2	8.8p 8.8p	5.5p 5.5p	14.8p 14.8p

Group statement of comprehensive income (unaudited)

For the six months ended 30 April 2014

		6 months to 30 April 2014	6 months to 30 April 2013	Audited 12months  to 31 October 2013
		£' 000	£' 000	£' 000
Profit for the period		437	280	744
Items that will not be reclassified to profit or loss Actuarial gains on defined benefit pension plans Tax relating to items that will not be reclassified		15                (3) 12	98              (26) 72	8                (2) 6
Items that may be reclassified to profit or loss Cash flow hedges Tax relating to items that may be reclassified		16                (4) 12	7                (2) 5	22                (7) 15
Other comprehensive income for the year, net of tax		461	357	765
Total comprehensive income attributable to: Equity holders of the parent		461	357	765

 

Dividends

The Directors declare an interim dividend of 3.675p per share (2013 - 3.5p) on the Ordinary and 'A' Limited Voting Ordinary Shares. This dividend will be paid on 01 August 2014 to shareholders on the register at 18 July 2014.

Group balance sheet (unaudited)

at 30 April 2014

		30 April 2014 £' 000	30 April 2013 £' 000	Audited 31 October 2013 £'000
Non-current assets
Property, plant and equipment		14,701	15,394	14,717
Financial assets		31	28	27
Deferred tax asset		155	268	265
		14,887	15,690	15,009
Current assets
Trade and other receivables		1,850	1,242	1,739
Inventories		10	10	10
Cash and short-term deposits		122	74	65
		1,982	1,326	1,814
Assets held for sale		71	525	444
Total assets		16,940	17,541	17,267
Current liabilities
Trade and other payables		(1,032)	(600)	(835)
Financial liabilities		(1,165)	(1,912)	(1,144)
Income tax payable		(99)	(5)	(52)
		(2,296)	(2,517)	(2,031)
Non-current liabilities
Other payables		(226)	(258)	(241)
Financial liabilities		(4,762)	(5,011)	(5,011)
Deferred tax liabilities		(212)	(215)	(212)
Defined benefit pension plan		(739)	(1,097)	(1,208)
		(5,939)	(6,581)	(6,672)
Total liabilities		(8,235)	(9,098)	(8,703)
Net assets		8,705	8,443	8,564
Capital and reserves
Equity share capital		264	264	264
Capital redemption reserve		673	673	673
Treasury shares		(1,134)	(891)	(1,002)
Fair value adjustments reserve		12	8	8
Cash flow hedging reserve		(30)	(52)	(42)
Currency translation		6	6	6
Retained earnings		8,914	8,435	8,657
Total equity		8,705	8,443	8,564

Group statement of cash flows (unaudited)

for the six months ended 30 April 2014

		6 months to 30 April 2014	6 months to 30 April 2013	Audited 12months  to 31 October 2013
		£' 000	£' 000	£' 000
Profit for the period Tax expense Net finance costs		437 155 156	280 118 143	744 270 246
(Profit)/loss on disposal of non-current assets and assets held for sale		(129)	-	85
Depreciation and impairment of property, plant and equipment		127	127	240
(Increase)/ decrease in trade and other receivables		(486)	147	(2)
Increase/(decrease) in trade and other payables		184	(357)	(112)
Net pension charge		(507)	(507)	(507)
Cash generated from operations		(63)	(49)	964
Income taxes paid		(5)	(99)	(185)
Interest paid		(112)	(114)	(207)
Net cash inflow/(outflow) from operating activities		(180)	(262)	572
Investing activities
Interest received		9	11	22
Proceeds from sale of property, plant and equipment and assets held for sale		955	-	309
Payments to acquire property, plant and equipment		(189)	(762)	(884)
Net cash inflow/(outflow) from investing activities		775	(751)	(553)
Financing activities
Preference dividend paid		(1)	(1)	(1)
Equity dividends paid		(184)	(176)	(352)
Consideration received by EBT on sale of shares		36	41	41
Consideration paid by EBT on purchase of shares		(176)	(71)	(182)
Movement in long term borrowing		(250)	750	750
Net cash (outflow)/inflow from financing activities		(575)	543	256
Increase/(decrease) in cash and cash equivalents		20	(470)	275
Cash and cash equivalents at the beginning of the period		(1,026)	(1,301)	(1,301)
Cash and cash equivalents at the period end.		(1,006)	(1,771)	(1,026)

Group reconciliation of movements in equity (unaudited)

6 months to	Equity	Capital		Fair		Cashflow
30 April 2014	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  2013	264	673	(1,002)	8	6	(42)	8,657	8,564
Profit for the period	-	-	-	-	-	-	437	437
Other comprehensive income for the period, net of income tax	-	-	-	4	-	12	12	28
Total     comprehensive income
for the period	-	-	-	4	-	12	449	465
Consideration received by EBT on sale of shares	-	-	36	-	-	-	-	36
Consideration paid
by EBT on purchase of
shares	-	-	(176)	-	-	-	-	(176)
Loss by EBT on sale
of shares	-	-	8	-	-	-	(8)	-
Equity dividend  paid	-	-	-	-	-	-	(184)	(184)
At 30 April 2014	264	673	(1,134)	12	6	(30)	8,914	8,705

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 1 November  2012	264	673	(875)	8	6	(57)	8,273	8,292
Profit for the period	-	-	-	-	-	-	280	280
Other comprehensive income for the period net of income tax	-	-	-	-	-	5	72	77
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
Loss 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

12 months to	Equity	Capital		Fair		Cashflow
31 October 2013	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  2012	264	673	(875)	8	6	(57)	8,273	8,292
Profit for the year	-	-	-	-	-	-	744	744
Other comprehensive income for the year, net of income tax	-	-	-	-	-	15	6	21
Total     comprehensive income
for the year	-	-	-	-	-	15	750	765
Consideration received by EBT on sale of shares	-	-	41	-	-	-	-	41
Consideration paid by EBT on purchase of shares	-	-	(182)	-	-	-	-	(182)
Loss by EBT on sale of shares	-	-	14	-	-	-	(14)	-
Equity dividend  paid	-	-	-	-	-	-	(352)	(352)
At 31 October 2013	264	673	(1,002)	8	6	(42)	8,657	8,564

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 2013. 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 27 June 2014.

2.  Basic and diluted earnings per share

The calculation of basic earnings per ordinary share is based on earnings of £437,000 (2013: £280,000), being profit after taxation for the period, and on 4,977,646 (2013: 5,029,763) 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 2014 has been posted to shareholders today and will be available on our website at www.heavitreebrewery.co.uk.

Ends. 

 

END

 

 

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