Heavitree Regulatory News (HVT)

The Heavitree Brewery PLC

Trood Lane

Matford

Exeter EX2 8YP

Date: 6 July 2016

Contact: Graham Crocker - Managing Director - 01392 217733

Nicola McLean - Company Secretary - 01392 217733

Patrick Castle /Anita Ghanekar - Shore Capital - 0207 408 4052

Following a meeting by a duly authorised committee of the Board of Directors held today, 6 July 2016, the Directors announce the interim results for the six months ended 30 April 2016.

Chairman's statement

The Company has returned an operating profit of £630,000 (2015: £507,000) for the period under review. Last year's corresponding operating profit for the period was affected by a number of factors including some extraordinary costs such as a properties' valuation cost before our new banking facility, an agency cost for the operation of a tenancy over the winter period plus a lack of contribution from two houses where major refurbishments were being carried out. These houses are now operational again and together with some improved rental terms on some new tenancy agreements, I am pleased to be able to report a 24% increase in operating profit on the previous year.

Results

The Group operating profit is £630,000 (2015: £507,000), a 24% increase on the previous year. After allowing for finance costs of £124,000 (2015: £117,000) which includes a £28,000 interest cost in respect of the IAS19 calculation referring to the final salary Pension Scheme (2015: £23,000), the Group Profit before taxation is £505,000 (2015: £395,000) which shows a 28% increase on the previous year.

Dividend

The Directors have resolved to pay an interim dividend of 3.675p per Ordinary Share and 'A' Limited Voting Ordinary Share (2015: 3.675p). The dividend will be paid on 5 August 2016 to shareholders on the Register at the close of business on 22 July 2016.

Property

In respect of the properties previously reported as being marketed for sale; the sale of one of the new houses on Topsham Road in Exeter on the former site of the Country House Inn completed on 29 June and the sale of the Hole in the Wall in Dawlish completed on 24 May.

The Maltster's Arms in Harbertonford has been taken off the market and is now open and trading after a new lease was granted to an experienced local operator.

Having received notice from the incumbent tenant, the Carpenter's Arms in Ilsington, a small house best suited to an owner operator, was placed on the market in April. An acceptable offer was received in very short order and the sale completed on 24 June.

Prospects

Work has commenced on the refurbishment of the Dolphin Inn in Torquay which closed earlier in the year. We look forward to reopening this house in August 2016. Following a long closure, development work is also planned to start shortly on the Dartmoor Halfway Inn in Bickington. When completed, both should add significantly to our income stream.

In line with our expectations we have made a solid start to trading in the second half of the year and the Company is well positioned before the beginning of the summer season.

N H P TUCKER

Chairman

Group income statement (unaudited)

For the six months ended 30 April 2016

Group statement of comprehensive income (unaudited)

For the six months ended 30 April 2016

Dividends

The Directors declare an interim dividend of 3.675p per share (2015 - 3.675p) on the Ordinary and 'A' Limited Voting Ordinary Shares. This dividend will be paid on 05 August 2016 to shareholders on the register at 22 July 2016.

Group balance sheet (unaudited)

Group statement of cash flows (unaudited)

for the six months ended 30 April 2016

Group reconciliation of movements in equity (unaudited)

Group reconciliation of movements in equity (unaudited) - continued

Group reconciliation of movements in equity (unaudited) - continued

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 2015. 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 6 July 2016.

2. Basic and diluted earnings per share

The calculation of basic earnings per ordinary share is based on earnings of £377,000 (2015: £292,000), being profit after taxation for the period, and on 4,872,387 (2015: 4,868,704) 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 2016 has been posted to shareholders today and will be available on our website at www.heavitreebrewery.co.uk.

Ends.