Last checked at 29 Jun 2017 14:00
The Heavitree Brewery PLC
Trood Lane
Matford
Exeter EX2 8YP
Date: 29 June 2017
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, 29 June 2017, the Directors announce the interim results for the six months ended 30 April 2017.
Chairman's statement
The Group has increased operating profit against the corresponding period last year by 10.79% to £698,000. This has been achieved by increases in all areas of contribution apart from machine income.
Results
The Group has returned an operating profit of £698,000 (2016: £630,000) which reflects a 10.79% increase against the same period in the previous year. After allowing for finance costs of £140,000 (2016: £124,000), which include a £41,000 interest cost in respect of the IAS 19 calculation applied to the final salary Pension Scheme (2016: £28,000), the Group Profit before taxation is £558,000 (2016: £505,000). This shows a 10.49% 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 (2016: 3.675p). The dividend will be paid on 4 August 2017 to shareholders on the Register at the close of business on 21 July 2017.
Property
There were no property sales during the period under review but three houses were being actively marketed for sale. Those houses are the Crown and Sceptre in Newton St.Cyres, the Bell Inn in Cullompton and the Pen and Quill in Taunton.
The Pen and Quill has sold since the closure of the half year period and a book loss has been mostly absorbed by the impairment that was shown in last year's accounts. Also, since the end of the period under review, The King's Arms in Strete has been added to the list of those pubs being marketed for sale.
The Dartmoor Halfway in Bickington opened in May after a total refurbishment completed in partnership with Buccaneer Inns who have taken the tenancy of this exciting new pub. Trading has started well and the Directors wish Buccaneer Inns and the management team at the pub every success in the future.
Prospects
I am pleased to be reporting these good numbers at the half-year. The quality of our houses and operators means that we are well set up to take advantage of good trading conditions in the second half of the financial year but also to remain resilient to the effects of the immense uncertainties that 2017 continues to deliver.
N H P TUCKER
Chairman
Group income statement (unaudited)
For the six months ended 30 April 2017
|
|
6 months to 30 April2017 |
6 months to 30 April 2016 | Audited 12 months to 31 October 2016 |
| Note | £' 000 | £' 000 | £' 000 |
Revenue |
| 3,351 | 3,312 | 7,155 |
Change in stocks |
| - | - | - |
Other operating income |
| 134 | 117 | 241 |
Purchase of inventories |
| (1,318) | (1,322) | (2,955) |
Staff costs |
| (625) | (600) | (1,301) |
Depreciation of property, plant and equipment |
| (113) | (103) | (208) |
Other operating charges |
| (731) | (774) | (1,512) |
|
| (2,653) | (2,682) | (5,735) |
Group operating profit |
| 698 | 630 | 1,420 |
(Loss)/profit on sale of property, plant and equipment |
| - | (1) | 585 |
Movements in valuation of estate and related assets |
| - | - | (163) |
Group profit before finance costs and taxation |
| 698 | 629 | 1,842 |
Finance income |
| 3 | 8 | 6 |
Finance costs |
| (102) | (104) | (152) |
Other finance costs-pensions |
| (41) | (28) | (43) |
|
| (140) | (124) | (189) |
Profit before taxation |
| 558 | 505 | 1,653 |
Tax expense |
| (159) | (128) | (288) |
Profit for the period |
| 399 | 377 | 1,365 |
Earnings per share - basic- diluted | 2 |
7.9p7.9p |
7.7p7.7p |
28.0p28.0p |
Group statement of comprehensive income (unaudited)
For the six months ended 30 April 2017
|
|
6 months to 30 April2017 |
6 months to 30 April 2016 | Audited 12months to 31 October 2016 |
|
| £' 000 | £' 000 | £' 000 |
Profit for the period |
| 399 | 377 | 1,365 |
Items that will not be reclassified to profit or loss Actuarial (losses)/gains on defined benefit pension plans Tax relating to items that will not be reclassified
|
|
(69) 12 (57)
|
350 (70) 280 |
(1,195) 203 (992)
|
Items that may be reclassified to profit or loss Fair value adjustment Exchange rate differences on translation of subsidiary undertaking Tax relating to items that may be reclassified
|
|
1
- - 1 |
3
(3) - - |
7
10 - 17 |
|
|
|
|
|
Other comprehensive income for the year, net of tax |
| 343 | 657 | 390 |
Total comprehensive income attributable to: Equity holders of the parent |
|
343 |
657 |
390 |
|
|
|
|
|
Dividends
The Directors declare an interim dividend of 3.675p per share (2016 - 3.675p) on the Ordinary and 'A' Limited Voting Ordinary Shares. This dividend will be paid on 04 August 2017 to shareholders on the register at 21 July 2017.
Group balance sheet (unaudited)
at 30 April 2017 |
|
30 April 2017 £' 000 |
30 April 2016 £' 000 | Audited 31 October 2016 £'000 |
Non-current assets |
|
|
|
|
Property, plant and equipment
|
| 18,380
| 16,950 | 18,012 |
Financial assets |
| 41 | 37 | 40
|
Deferred tax asset |
| 284 | 100 | 359 |
|
| 18,705 | 17,087 | 18,411 |
Current assets |
|
|
|
|
Trade and other receivables |
| 1,750 | 1,312 | 1,585 |
Inventories |
| 10 | 10 | 10 |
Cash and short-term deposits |
| 62 | 93 | 57 |
|
| 1,822 | 1,415 | 1,652 |
Assets held for sale |
| 552 | 1,408
| 219 |
Total assets |
| 21,079 | 19,910 | 20,282 |
Current liabilities |
|
|
|
|
Trade and other payables |
| (1,064) | (821) | (980) |
Financial liabilities |
| (2,267) | (2,349) | (1,332) |
Income tax payable |
| (223) | (106) | (149) |
|
| (3,554) | (3,276) | (2,461) |
Non-current liabilities |
|
|
|
|
Other payables |
| (264) | (275) | (274) |
Financial liabilities |
| (6,011) | (6,011) | (6,057) |
Deferred tax liabilities |
| (335) | (305) | (335) |
Defined benefit pension plan |
| (1,667) | (500) | (2,111) |
|
| (8,277) | (7,091) | (8,777) |
Total liabilities |
| (11,831) | (10,367) | (11,238) |
Net assets |
| 9,248 | 9,543 | 9,044 |
Capital and reserves |
|
|
|
|
Equity share capital |
| 264 | 264 | 264 |
Capital redemption reserve |
| 673 | 673 | 673 |
Treasury shares |
| (1,212) | (1,201) | (1,254) |
Fair value adjustments reserve |
| 17 | 17 | 21 |
Currency translation |
| 22 | 4 | 17 |
Retained earnings |
| 9,484 | 9,786 | 9,323 |
Total equity |
| 9,248 | 9,543 | 9,044 |
Group statement of cash flows (unaudited)
for the six months ended 30 April 2017
|
|
6 months to 30 April2017 |
6 months to 30 April 2016 | Audited 12months to 31 October 2016 |
Operating activities |
| £' 000 | £' 000 | £' 000 |
Profit for the period |
| 399 | 377 | 1,365 |
Tax expense |
| 159 | 128 | 288 |
Net finance costs |
| 140 | 124 | 189 |
Loss/(profit) on disposal of non-current assets and assets held for sale |
|
- |
1 |
(585) |
Depreciation and impairment of property, plant and equipment |
| 130 | 103 | 371 |
Exchange gain on cash, liquid resources and loan |
| - | - | 4 |
Difference between pension contributions paid and recognised in the income statement |
|
(554) |
(591) |
(538) |
Decrease/(increase) in trade and other receivables |
| (165) | 62 | (226) |
Increase/(decrease) in trade and other payables |
| 78 | 79 | 238 |
Cash generated from operations |
| 187 | 283 | 1,106 |
Income taxes paid |
| - | (6) | (79) |
Interest paid |
| (102) | (104) | (152) |
Net cash inflow from operating activities |
| 85 | 173 | 875 |
Investing activities |
|
|
|
|
Interest received |
| 3 | 8 | 6 |
Proceeds from sale of property, plant and equipment and assets held for sale |
| - | 4 | 1,205 |
Payments to acquire property, plant and equipment |
| (832) | (594) | (1,275) |
Net cash outflow from investing activities |
| (829) | (582) | (64) |
Financing activities |
|
|
|
|
Preference dividend paid |
| (1) | (1) | (1) |
Equity dividends paid |
| (183) | (179) | (358) |
Consideration received by EBT on sale of shares |
| 44 | 40 | 40 |
Consideration paid by EBT on purchase of shares Capital element of finance lease rental payments |
| - (4) | (5) - | (58) (2) |
|
|
|
|
|
Net cash outflow from financing activities |
| (144) | (145) | (379) |
|
|
|
|
|
Decrease in cash and cash equivalents |
| (888) | (554) | 432 |
Cash and cash equivalents at the beginning of the period |
| (1,270) | (1,702) | (1,702) |
Cash and cash equivalents at the period end. |
| (2,158) | (2,256) | (1,270) |
Group reconciliation of movements in equity (unaudited)
6 months to | Equity | Capital |
| Fair |
| Cashflow |
|
|
30 April 2017 | share | redemption | Treasury | value | Currency | hedge | Retained | Total |
| capital | reserve | shares | adjustment | Translation | reserve | earnings | equity |
| £' 000 | £' 000 | £' 000 | £' 000 | £' 000 | £' 000 | £' 000 | £' 000 |
|
|
|
|
|
|
|
|
|
At 1November 2016 | 264 | 673 | (1,254) | 21 | 17 | - | 9,323 | 9,044 |
Profit for the period | - | - | - | - | - | - | 399 | 399 |
Other comprehensive income for the period, net of income tax | - | - | - | 1 | - | - | (57) | (56) |
Total comprehensive income for the period | - | - | - | 1 | - | - | 342 | 343 |
Consideration Received by EBT on sale of shares |
- |
- |
44 |
- |
- |
- |
- |
44 |
Consideration paid by EBT on purchase of shares | - | - | - | - | - | - | - | - |
|
|
|
|
|
|
|
|
|
Gain by EBT on sale of shares | - | - | (2) | - | - | - | 2 | - |
Equity dividend paid | - | - | - | - | - | - | (183) | (183) |
|
|
|
|
|
|
|
|
|
At 30 April 2017 | 264 | 673 | (1,212) | 22 | 17 | - | 9,484 | 9,248 |
Group reconciliation of movements in equity (unaudited) - continued
6 months to | Equity | Capital |
| Fair |
| Cashflow |
|
|
30 April 2016 | share | redemption | Treasury | value | Currency | hedge | Retained | Total |
| capital | reserve | shares | adjustment | Translation | reserve | earnings | equity |
| £' 000 | £' 000 | £' 000 | £' 000 | £' 000 | £' 000 | £' 000 | £' 000 |
|
|
|
|
|
|
|
|
|
At 1November 2015 | 264 | 673 | (1,235) | 14 | 7 | - | 9,307 | 9,030 |
Profit for the period | - | - | - | - | - | - | 377 | 377 |
Other comprehensive income for the period, net of income tax | - | - | - | 3 | ( 3) | - | 280 | 280 |
Total comprehensive income for the period | - | - | - | 3 | (3) | - | 657 | 657 |
Consideration Received by EBT on sale of shares |
- |
- |
40 |
- |
- |
- |
- |
40 |
Consideration paid by EBT on purchase of shares | - | - | (5) | - | - | - | - | (5) |
Gain by EBT on sale of shares | - | - | (1) | - | - | - | 1 | - |
|
|
|
|
|
|
|
|
|
Equity dividend paid | - | - | - | - | - | - | (179) | (179) |
|
|
|
|
|
|
|
|
|
At 30 April 2016 | 264 | 673 | (1,201) | 17 | 4 | - | 9,786 | 9,543 |
Group reconciliation of movements in equity (unaudited) - continued
12 months to 31 October 2016 Audited
| Equity share capital £000 | Capital redemption reserve £000 |
Treasury shares £000 | Fair value adjustment reserve £000 |
Currency translation £000 | Cash flow hedge reserve £000 |
Retained earnings £000 |
Total equity £000 |
At 1 November 2015 | 264 | 673 | (1,235) | 14 | 7 | - | 9,307 | 9,030 |
|
|
|
|
|
|
|
|
|
Profit for the year | - | - | - | - | - | - | 1,365 | 1,365 |
Other comprehensive income for the year net of income tax | - | - | - | 7 | 10 | - | (992) | (975) |
Total comprehensive |
|
|
|
|
|
|
|
|
income for the year | - | - | - | 7 | 10 | - | 373 | 390 |
Consideration received by EBT on sale of shares |
- |
- |
40 |
- |
- |
- |
- |
40 |
Consideration paid by |
|
|
|
|
|
|
|
|
EBT on purchase of shares | - | - | (58) | - | - | - | - | (58) |
Gain by EBT on sale of shares | - | - | (1) | - | - | - | 1 | - |
Equity dividends paid | - | - | - | - | - | - | (358) | (358) |
At 31 October 2016 | 264 | 673 | (1,254) | 21 | 17 | - | 9,323 | 9,044 |
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 have been prepared in accordance with IAS34 "interim financial reporting" and 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 2016. The accounting policies are drawn up in accordance with International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) as adopted by the European Union.
These unaudited financial statements were approved and authorised for issue by a duly appointed and authorised committee of the Board of Directors on 29 June 2017.
2. Basic and diluted earnings per share
The calculation of basic earnings per ordinary share is based on earnings of £399,000 (2016: £377,000), being profit after taxation for the period, and on 5,064,830 (2016: 4,872,387) 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 2017 has been posted to shareholders today and will be available on our website at www.heavitreebrewery.co.uk.
Ends.