LONDON (Alliance News) - Heavitree Brewery PLC Monday afternoon reported a drop in profit in the first half of its financial year as it booked higher administrative expenses and cost related to its banking facility and pension scheme, but it said it is in good stead for the second half of the year.
The pub operator reported a drop in pretax profit in the six months ended April 30 to GBP395,000 from GBP592,000 in the same period the year before, as revenue fell very slightly to GBP3.27 million from GBP3.30 million.
Heavitree said that profit was hit by an increase in administration costs, a valuation charge in relation to the renewal of its banking facility, and a rise in superannuation and pension scheme costs. It added that a number of its pubs currently undergoing "substantial works" did not contribute to the half year.
Heavitree said it will pay an interim dividend of 3.675 pence, flat year-on-year.
"The second half of the year will see the opening of the George and Dragon in Dartmouth and the Oddfellows (previously called the Heavitree) in Exmouth after major refurbishments and we look forward to seeing the increase in contribution from these two sites. Also, the Pen Inn opened in May after a major refurbishment by Mitchells and Butler to whom we have leased the pub. The additional income stream from these houses and the continued performance from the rest of our estate of fine pubs should stand us in good stead for the second half of the year," Chairman Nicholas Tucker said in a statement.
Shares in Heavitree were untraded on Monday at 485.00 pence.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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Heavitree (HVT)