Heavitree Regulatory News (HVT)

14 Feb 2005 14:30

Heavitree Brewery PLC14 February 2005 The Heavitree Brewery PLCTrood LaneMatfordExeter EX2 8YP Telephone: 01392 217733Contact: Mr G.J.Crocker - Finance Director and Company Secretary Mr R.J.Glanville - Director Date: 14 February 2005 Preliminary Notice of Results Following a Board Meeting held today, 14 February 2005, the Directors announcethe preliminary results for the year ended 31 October 2004. Group profit and loss accountfor the year ended 31 October 2004 As restated 2004 2003 Notes £000 £000 Turnover 12,487 12,309 Operating profit 1,850 1,360Profit on sale of fixed assets 16 140Income from other fixed asset investments 13 12 Profit on ordinary activities before interestand taxation 1,879 1,512Other interest receivable 9 27Interest payable (298) (274)Profit on ordinary activities before taxation 1,590 1,265Taxation on profit on ordinary activities (432) (218)Profit attributable to shareholders 1,158 1,047Dividends - equity and non-equity 3 (510) (507)Profit retained for the financial year 648 540Basic and diluted earnings per share 4 21.4p 18.9p All revenues and costs relate to continuing operations. Dividends The Directors propose a 4.3% increase in the final dividend to 6p per share(2003 - 5.75p) on the Ordinary and 'A' Limited Voting Ordinary Shares making atotal of 9.5p per share (2003 - 9.25p) for the year. If approved at the AnnualGeneral Meeting due to be held on 13 April 2005, this dividend will be paid on14 April 2005 to shareholders on the register at 4 March 2005. Chairman's Statement Results As indicated by the half-year report this has been another year of solidimprovement. The figures are distorted as costs of some £200,000 authorised butnot actually spent in 2004 have been reallocated to 2005. This money is part ofthe £400,000 which I mentioned in June 2004 as being a minimum necessary spendto comply with the new regulations regarding Disability Discrimination, Controlof Asbestos and Licensing. The profit for this year has benefited from this,but next year's will suffer the consequences. A profit before tax of £1,590,000 was achieved (2003 restated - £1,265,000)which is an increase of 25.7% or £325,000 but bear in mind the £200,000explained above. Other headline figures are: Core Company - operating profit of £1,900,000 (2003 restated - £1,680,000); anincrease of 13.1%. The Managed Houses (Heavitree Inns) - operating loss of £45,000 (2003 - loss£312,000); an improvement of £267,000 or 85.6%. The American Subsidiary (Heavitree Inc) - operating loss of £5,000 (2003 - loss£7,000). Sales of Fixed Assets - a profit of £16,000 (2003 - £140,000). Sales of Beer - up by 1.9% on volume. Dividends The Directors recommend a final dividend of 6p per Ordinary and 'A' LimitedVoting Ordinary Share (2003 - 5.75p); an increase of 4.3% making a total of 9.5pfor the year (2003 - 9.25p). Shares During the year we bought in and cancelled 100,000 'A' Limited Voting OrdinaryShares at a cost of £350,000. Heavitree Inns I said last year that further progress could be expected and this has beenachieved in full measure. Everyone in this subsidiary has made a magnificenteffort. Losses at their worst were £482,000 in 2002. That was the year we tookthese pubs back under our own control. Heavitree Inc There is nothing significant to report. Property We did not dispose of any properties in the year, although we acquired twocottages for the expansion of our pub operations at a cost of £356,000. Minorimprovements were carried out at The Bishop John De Grandisson, Bishopsteignton,Teignmouth; The Jolly Sailor Inn, East Ogwell, Newton Abbot; The Royal Oak Inn,Ideford, Newton Abbot; and also The Ship Inn, Kingswear, which was subject to amajor spend following a landslip, resulting in a combined cost of £335,000. Personnel Everyone has done very well to achieve these results. Their efforts are muchappreciated. Prospects There are grounds for optimism but the barrage of legislation continues tocreate uncertainty about the future. Indeed, the £400,000 mentioned in myhalf-year statement and referred to under the 'Results' heading above appearscertain to be exceeded. W P Tucker Chairman14 February 2005 Group balance sheetAt 31 October 2004 As restated 2004 2003 £000 £000Fixed assetsTangible assets 14,839 13,871Investments 195 204 15,034 14,075Current assetsStocks 143 142Debtors 1,665 1,144Cash at bank and in hand 700 401 2,508 1,687Creditors: amounts falling due within one year (9,199) (7,843)Net current liabilities (6,691) (6,156)Total assets less current liabilities 8,343 7,919Creditors: amounts falling due after more than one year (270) (259)Provisions for liabilities and chargesDeferred taxation (218) (205) 7,855 7,455Capital and reservesCalled up share capital 291 296Capital redemption reserve 658 653Other reserves 72 75Own shares reserve (595) (606)Profit and loss account 7,429 7,037 7,855 7,455Attributable to non-equity interests 11 11Attributable to equity interests 7,844 7,444Total shareholders' funds 7,855 7,455 Group statement of cash flowsfor the year ended 31 October 2004 2004 2003 Note £000 £000 Net cash inflow from operating activities 5 1,785 1,942 Returns on investments and servicing of financeInterest paid (246) (313)Interest received 9 27Dividends received 13 12Preference dividend paid (1) (1)Net cash outflow from returns on investments and servicing offinance (225) (275) TaxationCorporation tax paid (330) 24Return of overpayment of corporation tax 26 - (304) 24 Capital expenditure and financial investmentPayments to acquire tangible fixed assets (1,609) (2,126)Receipts from sales of tangible fixed assets 154 872Receipts from repayment of fixed asset investments 9 2 (1,446) (1,252) Equity dividends paid (502) (487) FinancingConsideration received by EBT on sale of shares 203 66Consideration received by EBT on exercise of share options 147 -Consideration paid by EBT on purchase of shares (595) (434)Repayment of directors' loans (23) -Loans from directors 22 - (246) (368)Decrease in cash (938) (416) Notes to the preliminary announcement 1 These figures do not constitute full accounts within the meaning ofS.240 of the Companies Act 1985. They have been extracted from the statutoryaccounts for the year ended 31 October 2004, on which the auditors have issuedan unqualified audit report. The statutory accounts have not yet been deliveredto the Registrar of Companies. 2 The 2003 results have been restated following the implementation ofUrgent Issues Task Force (UITF) Abstract 38 'Accounting for ESOP Trusts'. 3 Dividends 2004 2003 £000 £000Non-equity interests:£1 11.5% Preference - paid 1 1Equity interests:Interim 3.5p per Ordinary and 'A' Limited VotingOrdinary share (2003 - 3.5p) - paid 199 201Proposed final 6p per Ordinary and 'A' Limited VotingOrdinary share (2003 - 5.75p) 335 327Less dividends on shares held within employee share schemes (25) (22) 509 506 510 507 4 Basic and diluted earnings per share The calculation of basic earnings per ordinary share is based on earnings of£1,157,000 (2003 restated: £1,046,000), being profit after taxation for the yearof £1,158,000 (2003 restated - £1,047,000) less preference dividends of £1,000(2003 - £1,000), and on 5,414,935 (2003 - 5,548,910) shares being the weightedaverage number of Ordinary and 'A' Limited Voting Ordinary Shares in issueduring the year after excluding the shares owned by The Heavitree Brewery PLCEmployee Benefits Trust and those shares under option pursuant to the EmployeeShare Option Scheme. The diluted earnings per share is equal to the basic earnings per share becausethe share options within the Employee Share Option Scheme are considered to benon-dilutive potential ordinary shares. 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: 2004 2003 £000 £000 Operating profit 1,850 1,360Depreciation 503 505(Increase)/decrease in stocks (1) 35Increase in operating debtors (521) (46)(Decrease)/increase in operating creditors (46) 88Net cash inflow from continuing operating activities 1,785 1,942 6 Copies of the 2004 Annual Report and Accounts will be posted toshareholders on 11 March 2005. Further copies may be obtained by contacting theCompany Secretary at The Heavitree Brewery PLC, Trood Lane, Matford, Exeter EX28YP. The Annual General Meeting is to be held at the Registered Office on 13April 2005. Ends. This information is provided by RNS The company news service from the London Stock Exchange