Last checked at 21 Feb 2012 16:00
The Heavitree Brewery PLC
Trood Lane
Matford
Exeter EX2 8YP
Date: 21 February 2012
Contact: Graham Crocker - Managing Director - 01392 217733
Rod Glanville - Director and Company Secretary - 01392 217733
Pascal Keane - Shore Capital - 0207 408 4090
Following a Board Meeting held today, 21 February 2012, the Directors announce the preliminary statement of results for the year ended 31 October 2011.
ISIN: GB0004182720 for 'A' Limited Voting Ordinary Shares
ISIN: GB0004182506 for Ordinary Shares
Chairman's statement
Another year of good housekeeping has returned a satisfactory set of results in what continues to be a difficult period for Public Houses. The headline figures may appear to be somewhat flat against the previous year but, given the uncertainty of the European and National economic situations, I consider this to be a solid performance; and I am most grateful for the hard work of our head office team and the staff of the pubs themselves in achieving these results.
Results
Turnover for the Group decreased by £36,000 (0.49%) to £7,352,000 and generated a Group Operating Profit of £1,408,000 (2010 - £1,427,000) after consolidation adjustments.
Heavitree Inns remained dormant throughout the year.
Heavitree Inc. generated an operating profit of £9,000 (2010 - Loss of £15,000).
Key Performance Indicators
·; Adjusted Operating Profit before Taxation £1,408,000 was down 1.33% on last year.
·; Interest costs were covered 13.40 times.
Dividend
The Directors recommend a final dividend of 3.5p per Ordinary and 'A' Limited Voting Ordinary Share (2010 - 3.5p) making a total for the year of 7p, which is unchanged from last year. The dividend will be paid on 20 April 2012, subject to shareholder approval at the Annual General Meeting on 13 April 2012, to shareholders on the Register at 23 March 2012.
Capital Investments
Various capital works were carried out in the year under review with those of significant expenditure being at the following sites:
The New Inn, Alphington (major refurbishment).
Car park of the closed St. Loyes Hotel (housing development).
The Royal Oak, Heavitree (creation of a new outside patio seating area).
The Brunswick Arms, Dawlish (upgrade of lavatories).
Old Barbers Shop, Newton Abbot (conversion to residential apartment).
Pension Scheme
The Company continues to meet its funding obligations to its closed final salary Pension Scheme. The required Scheme triennial valuation as at 1 January 2011 is not, at the time of writing, completed. The deadline for completion is 31 March 2012 and I look forward to providing an update at theAnnual General Meeting.
Repurchase of Shares
The Company did not repurchase any of its own shares during the year under review, but the Directors intend to seek shareholder approval at the forthcoming Annual General Meeting for the continuing authority to do so.
Personnel
I am delighted to report the appointment of Nicky McLean as Assistant Company Secretary during the year under review. Nicky joined us in September 2001 and is a valued member of our head office team. We wish her the very best in her new appointment.
Outlook
The company renewed its banking facilities with Barclays just after the end of the year under review and this certainty of finance, together with the continued support that we have always offered to our landlords and landladies, leaves us well positioned should there be a change in the economic climate. We also have development plans for the small number of closed houses and I shall report on them as and when they are completed.
The trading environment, as I reported last year, remains difficult but I look forward to another steady performance by the Company in 2012.
N H P TUCKERChairman
Group income statement
for the year ended 31 October 2011
|
Notes |
Total 2011 £000 |
Total 2010 £000 |
Revenue |
| 7,352 | 7,388 |
Change in stocks |
| - | (9) |
Other operating income |
| 113 | 91 |
Purchase of inventories |
| (3,134) | (3,141) |
Staff costs |
| (1,194) | (1,197) |
Depreciation of property, plant and equipment |
|
(295) |
(272) |
Other operating charges |
| (1,434) | (1,433) |
|
| (5,944) | (5,961) |
Group operating profit |
| 1,408 | 1,427 |
Profit on disposal of non-current assets and assets held for sale |
|
10 |
32 |
Group profit before finance costs and taxation |
|
1,418 |
1,459 |
Finance income |
| 33 | 35 |
Finance costs |
| (138) | (141) |
Other finance costs - pensions |
| (81) | (128) |
|
| (186) | (234) |
|
|
|
|
Profit before taxation |
| 1,232 | 1,225 |
Tax expense |
| (389) | (368) |
|
|
|
|
Profit for the year attributable to equity holders of the parent |
|
843 |
857 |
|
|
|
|
Basic earnings per share | 2 | 16.4p | 16.7p |
|
|
|
|
Diluted earnings per share | 2 | 16.4p | 16.7p |
All amounts in 2011 and 2010 relate to continuing operations.
Group statement of comprehensive income
for the year ended 31 October 2011
2011 £000 | 2010 £000 | |
Profit for the year
| 843 | 857 |
Other comprehensive income | ||
Actuarial gains/(losses) on defined benefit pension plans | 130 | (93) |
Tax credit on items taken directly to or transferred from equity | (33) | 26 |
Exchange difference on retranslation of subsidiary | - | 3 |
Fair value adjustment | 4 | - |
101 | (64) | |
Total comprehensive income for the year
Total comprehensive income attributable to: Equity holders of the parent | 944
944 | 793
793 |
Group balance sheet
at 31 October 2011
|
|
2011 £000 |
|
2010 £000 |
Non-current assets |
| |||
Property, plant and equipment |
| 15,225 | 14,070 | |
Financial assets |
| 54 | 50 | |
Deferred tax asset |
| 325 | 505 | |
|
| 15,604 | 14,625 | |
Current assets |
| |||
Inventories |
| 10 | 10 | |
Trade and other receivables |
| 1,262 | 1,444 | |
Cash and cash equivalents |
| 86 | 216 | |
| 1,358 | 1,670 | ||
|
| |||
Total assets |
| 16,962 | 16,295 | |
Current liabilities |
| |||
Trade and other payables |
| (1,095) | (709) | |
Financial liabilities |
| (5,062) | (558) | |
Income tax payable |
| (144) | (248) | |
| ||||
| (6,301) | (1,515) | ||
Non-current liabilities |
| |||
Other payables | (327) | (319) | ||
Financial liabilities |
| (11) | (4,011) | |
Deferred tax liabilities |
| (261) | (265) | |
Defined benefit pension plan deficit |
| (1,246) | (1,802) | |
| (1,845) | (6,397) | ||
Total liabilities |
| (8,146) | (7,912) | |
Net assets |
| 8,816 | 8,383 | |
|
| |||
Capital and reserves |
| |||
Equity share capital |
| 264 | 264 | |
Capital redemption reserve |
| 673 | 673 | |
Treasury shares |
| (840) | (826) | |
Fair value adjustments reserve |
| 34 | 30 | |
Currency translation |
| 6 | 6 | |
Retained earnings |
| 8,679 | 8,236 | |
Total equity |
| 8,816 | 8,383 |
Group statement of cash flows
for the year ended 31 October 2011
Notes |
2011 £000 |
|
2010 £000 | |
Operating activities | ||||
Profit for the year | 843 | 857 | ||
Tax | 389 | 368 | ||
Net finance costs | 186 | 234 | ||
Profit on disposal of non current assets and assets held for sale | (10) | (32) | ||
Depreciation and impairment of property, plant and equipment | 295 | 272 | ||
Share-based payments | - | 11 | ||
Difference between pension contributions paid and amounts | ||||
recognised in the income statement | (507) | (507) | ||
Decrease in inventories | - | 9 | ||
Decrease in trade and other receivables | 182 | 224 | ||
Decrease in trade and other payables | 39 | (158) | ||
Cash generated from operations | 1,417 | 1,278 | ||
Income taxes paid | (349) | (78) | ||
Interest Paid | (138) | (141) | ||
Net cash flow from operating activities | 930 | 1,059 | ||
Investing activities | ||||
Interest received | 33 | 35 | ||
Proceeds from sale of property, plant and equipment and assets held for sale |
114 |
91 | ||
Payments to acquire property, plant and equipment | (1,199) | (718) | ||
Net cash outflow from investing activities | (1,052) | (592) | ||
Financing activities | ||||
Preference dividend paid | (1) | (1) | ||
Dividends paid | 3 | (360) | (359) | |
Repayment of loans from Directors | - | 8 | ||
Consideration received by EBT on sale of shares | 43 | 44 | ||
Consideration paid by EBT on purchase of shares | (194) | (22) | ||
Net movement in long term borrowings | - | (1,000) | ||
Net cash flow from financing activities | (512) | (1,330) | ||
Decrease in cash and cash equivalents | (634) | (863) | ||
Cash and cash equivalents at the beginning of the year | (342) | 521 | ||
Cash and cash equivalents at the year end | (976) | (342) |
Group statement of changes in equity
Equity share capital £000 | Capital redemption reserve £000 |
Treasury shares £000 | Fair value adjustments reserve £000 |
Currency translation £000 |
Retained earnings £000 |
Total equity £000 | |
At 1 November 2009 | 264 | 673 | (994) | 30 | 3 | 7,939 | 7,915 |
Profit for the year | - | - | - | - | - | 857 | 857 |
Other comprehensive | |||||||
income for the year net of income tax | - | - | - | - | 3 | (67) | (64) |
Total comprehensive | |||||||
income for the year | - | - | - | - | 3 | 790 | 793 |
Consideration received | |||||||
by EBT on sale of | - | - | 44 | - | - | - | 44 |
shares | |||||||
Consideration paid | |||||||
by EBT on purchase of shares | - | - | (22) | - | - | - | (22) |
Loss by EBT on sale | |||||||
of shares | - | - | 146 | - | - | (146) | - |
Share based payment | - | - | - | - | - | 12 | 12 |
Equity dividends paid | - | - | - | - | - | (359) | (359) |
At 31 October 2010 | 264 | 673 | (826) | 30 | 6 | 8,236 | 8,383 |
Equity share capital £000 | Capital redemption reserve £000 |
Treasury shares £000 | Fair value adjustments reserve £000 |
Currency translation £000 |
Retained earnings £000 |
Total equity £000 | |
At 1 November 2010 | 264 | 673 | (826) | 30 | 6 | 8,236 | 8,383 |
Profit for the year | - | - | - | - | - | 843 | 843 |
Other comprehensive | |||||||
income for the year net of income tax | - | - | - | 4 | - | 97 | 101 |
Total comprehensive | |||||||
income for the year | - | - | - | 4 | - | 940 | 944 |
Consideration received | |||||||
by EBT on sale of shares |
- |
- |
43 |
- |
- |
- |
43 |
Consideration paid by
| |||||||
EBT on purchase of shares | - | - | (194) | - | - | - | (194) |
Loss by EBT on sale | |||||||
of shares | - | - | 137 | - | - | (137) | - |
Equity dividends 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 (nominal amount only) arising or deemed to arise on the issue of the Company's equity share capital, comprising Ordinary Shares of 5p each and 'A' Limited Voting Ordinary Shares of 5p each.
Capital Redemption Reserve
The capital redemption reserve arises on the re-purchase and cancellation by the Company of Ordinary Shares.
Treasury shares
Treasury shares represents the cost of The Heavitree Brewery PLC shares purchased in the market and held by The Heavitree Brewery PLC Employee Benefits Trust and Employee Share Option Scheme ('EBT').
At 31 October 2011 the Group held 68,174 Ordinary Shares and 146,641 'A' Limited Voting Ordinary Shares (2010: 58,779 Ordinary Shares and 74,592 'A' Limited Voting Ordinary Shares) of its own shares at an average cost of £3.90 (2010: £6.18). The market value of these shares as at 31 October 2011 was £478,187 (2010: £333,000).
Fair value adjustments reserve
The fair value adjustments reserve is used to record differences in the market value of the available-for-sale investment year on year.
Foreign currency translation reserve
The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries.
Notes to the preliminary announcement
1. Basis of preparation
These figures do not constitute full accounts within the meaning of Section 396 of the Companies Act 2006. They have been extracted from the statutory financial statements for the year ended 31 October 2011. The statutory financial statements have not yet been delivered to the Registrar of Companies.
The financial information is this statement has been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the European Union. The accounting policies have been consistently applied and are described in full in the statutory financial statements for the year ended 31 October 2011, which are expected to be mailed to shareholders on 12 March 2012. The financial statements will also be available on the Group's website. www.heavitreebrewery.co.uk.
The Directors are of the opinion that the Group has adequate resources to continue in operational existence for the foreseeable future, and continue to adopt the going concern basis in preparing the financial statements
2. Basic and diluted earnings per share
Basic earnings per share amounts are calculated by dividing profit for the year attributable to ordinary equity holders of the parent by the weighted average number of Ordinary shares and 'A' Limited Voting Ordinary shares outstanding during the year.
Diluted earnings per share amounts are calculated by dividing the profit attributable to ordinary equity holders of the parent by the weighted average number of Ordinary shares and 'A' Limited Voting Ordinary shares outstanding during the year as diluted for the share options in issue.
The following reflects the income and shares data used in the basic and diluted earnings per share
computations:
2011 £000 | 2010 £000 | |
Profit for the year | 843 | 857 |
2011 No. (000) | 2010 No. (000) | |
Basic weighted average number of shares (excluding treasury shares) | 5,129 | 5,139 |
Dilutive potential ordinary shares: | ||
Employee share options | - | - |
Diluted weighted average number of shares | 5,129 | 5,139 |
There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of completion of these financial statements.
Employee share options could potentially dilute basic earnings per share in the future but are not included in the 2011 calculation of dilutive earnings per share because they are antidilutive for the period presented.
3. Dividends paid and proposed
2011 £000 | 2010 £000 | |
Declared and paid during the year: | ||
Equity dividends on ordinary shares: | ||
Final dividend for 2010: 3.5p (2009: 3.5p) | 185 | 185 |
First dividend for 2011: 3.5p (2010: 3.5p) | 185 | 185 |
Less dividend on shares held within employee share schemes | (10) | (11) |
Dividends paid | 360 | 359 |
Proposed for approval at AGM | ||
(not recognised as a liability as at 31 October) | ||
Final dividend for 2011: 3.5p (2010: 3.5p) Cumulative preference dividends | 180 1 | 180 1
|
4. Segment information
Primary reporting format - business segments
During the year the Group operated in one business segment - leased estate.
Secondary reporting format - geographical segments
The following tables present revenue, expenditure and certain asset information regarding the Group's geographical segments for the years ended 31 October 2011 and 2010. Revenue is based on the geographical location of customers and assets are based on the geographical location of the asset.
Segment information | |||
Year ended 31 October 2011 | UK £000 | United States £000 | Total £000 |
Revenue | |||
Sales to external customers | 7,352 | - | 7,352 |
Other segment information | |||
Segment assets | 16,915 | 47 | 16,962
|
Total Assets | 16,915 | 47 | 16,962 |
Capital expenditure | |||
Property, plant and equipment | 1,534 | 20 | 1,554 |
Year ended 31 October 2010 | UK £000 | United States £000 | Total £000 |
Revenue | |||
Sales to external customers | 7,388 | - | 7,388 |
Other segment information | |||
Segment assets | 16,285 | 10 | 16,295 |
Total Assets | 16,285 | 10 | 16,295 |
Capital expenditure | |||
Property, plant and equipment | 718 | - | 718 |
5. General information
The 2011 Annual Report and Financial Statements will be published and posted to shareholders on 12 March 2012. Further copies may be obtained by contacting the Company Secretary at The Heavitree Brewery PLC, Trood Lane, Matford, Exeter EX2 8YP. The 2011 Annual Report and Financial Statements will also be available on the Company's website at http://www.heavitreebrewery.co.uk/financial/
The Annual General Meeting will be held at the Registered Office on 13 April 2012 at 11.30am.
.
Ends.