Heavitree Regulatory News (HVT)

12 Feb 2007 15:00

Heavitree Brewery PLC12 February 2007 The Heavitree Brewery PLC Trood Lane Matford Exeter EX2 8YP Telephone: 01392 217733 Contact: Mr G.J.Crocker - Finance Director and Company Secretary Mr R.J.Glanville - Director Date: 12 February 2007 Following a Board Meeting held today, 12 February 2007, the Directors announcethe preliminary results for the year ended 31 October 2006. Chairman's statement Introduction: The rules governing the preparation and presentation of the accounts havechanged again. As a result, most of the information which I cover is now alsocarried in the 'expanded' Directors' Report which will appear in the Report &Accounts, when published. It goes without saying that the new arrangements willbe more expensive and time-consuming than the old. This applies equally to ourAuditors and any extra costs incurred by them will have to be passed on to us.I find it difficult to see any benefit coming from all of this. Results: Group profit on ordinary activities before tax was £2,201,000 (2005: £1,298,000as restated). A significant improvement but this year's figure does include£842,000 profit from the sale of our holding in George Gale and Company Limited. Turnover increased by £521,000 to £13,412,000. Dividends: The Directors recommend a final dividend of 7p per Ordinary and 'A' LimitedVoting Ordinary Share, an increase of 1p on top of the increase of 1/2p whichwas paid on the interim dividend, making a total of 11p per share (2005: 9.5p)for the year. This reflects the satisfactory trading position of the Company.The dividend will be paid, subject to shareholder approval, on 10 April 2007 toshareholders on the Register at 23 February 2007. Borrowing: The change in our borrowing capacity which was proposed at last year's AnnualGeneral Meeting was duly approved. Heavitree Inns: This has been the first year under the new, no rent, regime; as reported in myStatement last year. A pre-tax profit of £522,000 (2005: loss £11,000) wasachieved. This will be the benchmark for future years. The notional improvement of £533,000 is, in fact, a real improvement of £130,000if a like-for-like comparison is drawn. A truly excellent performance on whichTerry Wheatley and his team are to be congratulated. Heavitree Incorporated (USA): There has been no significant change. The usual costs and fees produced apre-tax loss of £6,000 (2005: loss £6,000). At the time of writing, negotiations are in an advanced state for the sale of asmall piece of our remaining land near Houston. Properties: The cost of maintaining our properties has fallen by £235,000. This is due tothe strict financial controls devised by Rodney Glanville and to improvedquality control and use of time by our newly-appointed buildings supervisorMichael Jordan. Personnel: Once again I draw attention to the excellent service which the Company hasenjoyed from its employees in both administration and retail. My thanks go toall of them and also to our tenants and their families. W P Tucker Chairman 12 February 2007 Group profit and loss account for the year ended 31 October 2006 As restated 2006 2005 Notes £000 £000 Turnover 13,412 12,891 Operating profit 1,852 1,489(Loss)/Profit on sale of tangible fixed assets (74) 252Profit on sale of fixed asset investments 842 -Income from other fixed asset investments 1 13 Profit on ordinary activities before interestand taxation 2,621 1,754Other interest receivable 10 9Interest payable (371) (380)Other finance charges - FRS 17 (59) (85)Profit on ordinary activities before taxation 2,201 1,298Taxation on profit on ordinary activities (384) (308)Profit attributable to shareholders 1,817 990 Dividends - equity dividends paid 3 (533) (510) Basic earnings per share 4 34.1p 18.4p Diluted earnings per share 4 34.0p 18.4p All revenues and costs relate to continuing operations. Group statement of total recognised gains and losses for the year ended 31 October 2006 As restated 2006 2005 £000 £000Profit attributable to shareholders 1,817 990Exchange difference on retranslation of net assets of subsidiary (3) -Actuarial gain/(loss) recognised on pension scheme 174 (127)Deferred tax relating to actuarial gain/(loss) on pension scheme (52) 38Total recognised gains and losses relating to year and since 1,936 901last annual report Reconciliation of shareholders' funds for the year ended 31 October 2006 Note As restated 2006 2005 £000 £000At 1 November as previously reported 6,581 6,316Prior year adjustment - FRS 21 2 322 320Prior year adjustment - FRS 25 2 (12) (12)At 1 November as restated 6,891 6,624Total recognised gains and losses relating to the year 1,936 901Dividends (533) (510)Consideration received by EBT on sale of shares 309 39Buy back of own shares (246) -Consideration paid by EBT on purchase of shares (759) (163)At 31 October 7,598 6,891 Group balance sheet at 31 October 2006 As restated 2006 2005 £000 £000Fixed assetsTangible assets 16,650 15,836Investments 20 195 16,670 16,031Current assetsStocks 142 149Debtors 1,493 1,299Cash at bank and in hand 435 520 2,070 1,968Creditors: amount falling due within one year (9,067) (8,866)Net current liabilities (6,997) (6,898)Total assets less current liabilities 9,673 9,133Creditors: amount falling due after more than one year (296) (284) Provisions for liabilities and chargesDeferred taxation (262) (282)Net assets excluding pension liability 9,115 8,567Pension liability (1,517) (1,676) 7,598 6,891Capital and reservesCalled up share capital 278 279Capital redemption reserve 659 658Other reserves 69 72Own shares reserve (1,335) (730)Profit and loss account 7,927 6,612Total shareholders' funds 7,598 6,891 Group statement of cash flows for the year ended 31 October 2006 2006 2005 Note £000 £000 Net cash inflow from operating activities 5 2,543 2,616 Returns on investments and servicing of financeInterest paid (371) (431)Interest received 10 9Dividends received 1 13Preference dividend paid (1) (1)Net cash outflow from returns on investmentsand servicing of finance (361) (410) TaxationCorporation tax paid (316) (632) Capital expenditure and financial investmentPayments to acquire tangible fixed assets (1,764) (1,786)Receipts from sales of tangible fixed assets 222 470Receipts from sales of fixed assets investments 1,017 - (525) (1,316) Equity dividends paid (533) (510) FinancingConsideration received by EBT on sale of shares 63 39Consideration paid by EBT on purchase of shares (760) (163)Repayment of Directors' loans (7) (21)Loans from Directors - 17 (704) (128)Increase/(decrease) in cash 104 (380) Reconciliation of net cash flow to movement in net debt for the year ended 31 October 2006 2006 2005 £000 £000Increase/(decrease) in cash in the year 104 (380)Cash outflow resulting from decrease in debt 7 4Net debt at 1 November (6,617) (6,241)Net debt at 31 October (6,506) (6,617) Notes to the preliminary announcement 1 Financial information These figures do not constitute full accounts within the meaning of Section 240of the Companies Act 1985. They have been extracted from the statutory financialstatements for the year ended 31 October 2006, on which the auditors have issuedan unqualified audit report. The statutory financial statements have not yetbeen delivered to the Registrar of Companies. Comparative figures for the year ended 31 October 2005, set out within thisannouncement, have been extracted from the Group's statutory consolidatedfinancial statements for that period, as filed with the Registrar of Companiesand on which the auditors gave an unqualified audit report. 2 Prior year adjustment The accounting policies are consistent with the previous year except for theadoption of FRS 21 'Events after the balance sheet date', FRS 22 'Earnings PerShare' and FRS 25 'Financial Instruments Disclosure and Presentation'. FRS 21and FRS 25 have required a change to the accounting treatment for dividends andpreference shares, respectively. Prior year results have been restatedaccordingly. The implementation of FRS 22 has had no impact on the reportedresults. (a) Group profit and loss account Profit for the year attributable to shareholders £000As previously reported 991Implementation of FRS 25 (1)As restated for the year ended 31 October 2005 990 The implementation of FRS 25 has resulted in preference share dividends beingreclassified from dividends to interest payable. (b) Group balance sheet Creditors due Creditors due in Share capital Profit & Loss within one year more than one year reserve £000 £000 £000 £000 As previously reported (9,188) (272) 291 6,290Implementation of FRS 21 322 - - 322Implementation of FRS 25 - (12) (12) -At 31 October 2005 As restated (8,866) (284) 279 6,612 The implementation of FRS 21 has resulted in proposed dividends being recognisedon paid rather than accrued basis. The implementation of FRS25 has resulted in the Preference Shares beingreclassified from equity to debt. 3 Dividends As restated 2006 2005 £000 £000Declared and paid during the yearEquity dividends on Ordinary and 'A' Limited Voting Ordinary Shares Final dividend for 2005 - 6p (2004 - 6p) 321 333 First dividend for 2006 - 4p (2005 - 3.5p) 237 195 Less: dividends on shares held within employee share schemes (25) (18) 533 510 Proposed for approval at AGM (not recognised as a liability at 31 October)Equity dividends on Ordinary and 'A' Limited Voting Ordinary Shares Final dividend for 2006 - 7p (2005 - 6p) 370 321 4 Basic and diluted earnings per share The calculation of basic earnings per ordinary share is based on earnings of£1,817,000 (2005 restated - £990,000), being profit after taxation for the year,on 5,323,113 (2005 - 5,369,929) shares, being the weighted average number ofOrdinary and 'A' Limited Voting Ordinary Shares in issue during the year afterexcluding the shares owned by The Heavitree Brewery PLC Employee Benefits Trustand those shares under option pursuant to the Employee Share Option Scheme. The calculation of diluted earnings per ordinary share is based on earnings of£1,817,000 (2005 restated - £990,000), being profit after taxation for the year,on 5,349,453 (2005 - 5,379,424) shares, being the weighted average number ofOrdinary and 'A' Limited Voting Ordinary Shares in issue during the year, asdiluted for the share options in issue. The Ordinary Shares and the 'A' Limited Voting Ordinary Shares have equaldividend rights and therefore no separate calculation of earnings per share forthe different classes has been given. 5 Group statement of cash flows Reconciliation of operating profit to net cash inflow from operating activities: 2006 2005 £000 £000 Operating profit 1,852 1,489Depreciation 654 572Decrease/(increase) in stocks 7 (10)(Increase)/decrease in operating debtors (195) 312Increase in operating creditors 337 241Net pension change (112) 12Net cash inflow from continuing operating activities 2,543 2,616 6 General information The 2006 Annual Report and Financial Statements will be published and posted toshareholders on 9 March 2007. Further copies may be obtained by contacting theCompany Secretary at The Heavitree Brewery PLC, Trood Lane, Matford, Exeter EX28YP. The Annual General Meeting will be held at the Registered Office on 4 April 2007at 11.30am. Ends. 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