Last checked at 27 Jun 2014 16:00
The Heavitree Brewery PLC
Trood Lane
Matford
Exeter EX2 8YP
Date: 27 June 2014
Contact: Graham Crocker - Managing Director - 01392 217733
Nicola McLean - Company Secretary - 01392 217733
Pascal Keane - Shore Capital - 0207 468 7995
Following a meeting by a duly authorised committee of the Board of Directors held today, 27 June 2014, the Directors announce the interim results for the six months ended 30 April 2014.
Chairman's statement
The truly awful weather at the start of the year, in particular during February, saw several of our houses being battered by the much reported storms and threatened by floods. The hard work and determination of those tenants that were directly affected and the proactive and reactive efforts of both our maintenance and management teams has helped our sales to hold up well within the estate. I am pleased to report that operating profit for the six months ended 30 April 2014 has improved by 14.4% over last year. This is despite the loss of rental income from two closed pubs which are waiting to be refurbished.
RESULTS
The Group operating profit is £619,000 (2013 - £541,000), an increase of 14.4% on last year. After allowing for finance costs of £156,000 which includes £53,000 in respect of the IAS19 calculation referring to the closed final salary Pension Scheme (2013 - £143,000 and £40,000 respectively), together with a profit on the sale of property of £129,000 the Group profit before taxation is £592,000 (2013 - £398,000).
I reported at the year end that four flats on the old St Loye's Pub site in Exeter were to be marketed for sale following this very successful development. These four sales have now completed realising a profit before tax of £129,000 as mentioned above.
DIVIDEND
The Directors have resolved to pay an increased interim dividend of 3.675p per Ordinary Share and 'A' Limited Voting Ordinary Share (2013 - 3.5p). The dividend will be paid on 01 August 2014 to shareholders on the Register at the close of business on 18 July 2014.
PROSPECTS
We have accepted offers on the Artichoke Inn at Christow and The Vestry at Newton Abbot.
I am pleased to be reporting this Group operating profit at the end of the six months' period and I am looking forward to another steady performance in the second half of the year.
N H P TUCKER
Chairman
Group income statement (unaudited)
For the six months ended 30 April 2014
|
|
6 months to 30 April2014 |
6 months to 30 April 2013 | Audited 12 months to 31 October 2013 |
| Note | £' 000 | £' 000 | £' 000 |
Revenue |
| 3,304 | 3,266 | 7,231 |
Change in stocks |
| - | - | - |
Other operating income |
| 125 | 80 | 166 |
Purchase of inventories |
| (1,417) | (1,353) | (3,079) |
Staff Costs |
| (526) | (501) | (1,102) |
Depreciation of property, plant and equipment |
| (127) | (127) | (240) |
Other operating charges |
| (740) | (824) | (1,631) |
| (2,685) | (2,725) | (5,886) | |
Group operating profit |
| 619 | 541 | 1,345 |
Profit/(loss) on sale of property, plant and equipment |
| 129 | - | (85) |
| ||||
Group profit before finance costs and taxation |
| 748 | 541 | 1,260 |
Finance income |
| 9 | 11 | 22 |
Finance costs |
| (112) | (114) | (207) |
Other finance costs-pensions |
| (53) | (40) | (61) |
| (156) | (143) | (246) | |
Profit before taxation |
| 592 | 398 | 1,014 |
Tax (expense) |
| (155) | (118) | (270) |
Profit for the period |
| 437 | 280 | 744 |
Earnings per share - basic- diluted | 2 |
8.8p8.8p |
5.5p5.5p |
14.8p 14.8p |
Group statement of comprehensive income (unaudited)
For the six months ended 30 April 2014
|
|
6 months to 30 April2014 |
6 months to 30 April 2013 | Audited 12months to 31 October 2013 |
| £' 000 | £' 000 | £' 000 | |
Profit for the period | 437 | 280 | 744 | |
Items that will not be reclassified to profit or loss Actuarial gains on defined benefit pension plans Tax relating to items that will not be reclassified
|
15 (3) 12
|
98 (26) 72
|
8 (2) 6
| |
Items that may be reclassified to profit or loss Cash flow hedges Tax relating to items that may be reclassified
|
16 (4) 12 |
7 (2) 5 |
22 (7) 15 | |
Other comprehensive income for the year, net of tax | 461 | 357 | 765 | |
Total comprehensive income attributable to: Equity holders of the parent |
461 |
357 |
765 | |
Dividends
The Directors declare an interim dividend of 3.675p per share (2013 - 3.5p) on the Ordinary and 'A' Limited Voting Ordinary Shares. This dividend will be paid on 01 August 2014 to shareholders on the register at 18 July 2014.
Group balance sheet (unaudited)
at 30 April 2014
|
|
30 April 2014 £' 000 |
30 April 2013 £' 000 | Audited 31 October 2013 £'000 |
Non-current assets | ||||
Property, plant and equipment | 14,701 | 15,394 | 14,717 | |
Financial assets | 31 | 28 | 27 | |
Deferred tax asset | 155 | 268 | 265 | |
14,887 | 15,690 | 15,009 | ||
Current assets | ||||
Trade and other receivables | 1,850 | 1,242 | 1,739 | |
Inventories | 10 | 10 | 10 | |
Cash and short-term deposits | 122 | 74 | 65 | |
1,982 | 1,326 | 1,814 | ||
Assets held for sale | 71 | 525
| 444 | |
Total assets | 16,940 | 17,541 | 17,267 | |
Current liabilities | ||||
Trade and other payables | (1,032) | (600) | (835) | |
Financial liabilities | (1,165) | (1,912) | (1,144) | |
Income tax payable | (99) | (5) | (52) | |
(2,296) | (2,517) | (2,031) | ||
Non-current liabilities | ||||
Other payables | (226) | (258) | (241) | |
Financial liabilities | (4,762) | (5,011) | (5,011) | |
Deferred tax liabilities | (212) | (215) | (212) | |
Defined benefit pension plan | (739) | (1,097) | (1,208) | |
(5,939) | (6,581) | (6,672) | ||
Total liabilities | (8,235) | (9,098) | (8,703) | |
Net assets | 8,705 | 8,443 | 8,564 | |
Capital and reserves | ||||
Equity share capital | 264 | 264 | 264 | |
Capital redemption reserve | 673 | 673 | 673 | |
Treasury shares | (1,134) | (891) | (1,002) | |
Fair value adjustments reserve | 12 | 8 | 8 | |
Cash flow hedging reserve | (30) | (52) | (42) | |
Currency translation | 6 | 6 | 6 | |
Retained earnings | 8,914 | 8,435 | 8,657 | |
Total equity | 8,705 | 8,443 | 8,564 |
Group statement of cash flows (unaudited)
for the six months ended 30 April 2014
|
|
6 months to 30 April2014 |
6 months to 30 April 2013 | Audited 12months to 31 October 2013 |
|
| £' 000 | £' 000 | £' 000 |
Profit for the period Tax expense Net finance costs | 437 155 156 | 280 118 143 | 744 270 246 | |
(Profit)/loss on disposal of non-current assets and assets held for sale | (129) | - | 85 | |
Depreciation and impairment of property, plant and equipment | 127 | 127 | 240 | |
(Increase)/ decrease in trade and other receivables | (486) | 147 | (2) | |
Increase/(decrease) in trade and other payables | 184 | (357) | (112) | |
Net pension charge | (507) | (507) | (507) | |
Cash generated from operations | (63) | (49) | 964 | |
Income taxes paid | (5) | (99) | (185) | |
Interest paid | (112) | (114) | (207) | |
Net cash inflow/(outflow) from operating activities | (180) | (262) | 572 | |
Investing activities | ||||
Interest received | 9 | 11 | 22 | |
Proceeds from sale of property, plant and equipment and assets held for sale | 955 | - | 309 | |
Payments to acquire property, plant and equipment | (189) | (762) | (884) | |
Net cash inflow/(outflow) from investing activities | 775 | (751) | (553) | |
Financing activities | ||||
Preference dividend paid | (1) | (1) | (1) | |
Equity dividends paid | (184) | (176) | (352) | |
Consideration received by EBT on sale of shares | 36 | 41 | 41 | |
Consideration paid by EBT on purchase of shares | (176) | (71) | (182) | |
Movement in long term borrowing | (250)
| 750 | 750 | |
Net cash (outflow)/inflow from financing activities | (575) | 543 | 256 | |
Increase/(decrease) in cash and cash equivalents | 20 | (470) | 275 | |
Cash and cash equivalents at the beginning of the period | (1,026) | (1,301) | (1,301) | |
Cash and cash equivalents at the period end. | (1,006) | (1,771) | (1,026) |
Group reconciliation of movements in equity (unaudited)
6 months to | Equity | Capital | Fair | Cashflow | ||||
30 April 2014 | 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 2013 | 264 | 673 | (1,002) | 8 | 6 | (42) | 8,657 | 8,564 |
Profit for the period | - | - | - | - | - | - | 437 | 437
|
Other comprehensive income for the period, net of income tax | - | - | - | 4 | - | 12 | 12 | 28 |
Total comprehensive income | ||||||||
for the period
| - | - | - | 4 | - | 12 | 449 | 465 |
Consideration received by EBT on sale of shares
|
- |
- |
36 |
- |
- |
- |
- |
36 |
Consideration paid | ||||||||
by EBT on purchase of | ||||||||
shares | - | - | (176) | - | - | - | - | (176) |
Loss by EBT on sale | ||||||||
of shares
| - | - | 8 | - | - | - | (8) | - |
Equity dividend paid
| - | - | - | - | - | - | (184) | (184) |
At 30 April 2014 | 264 | 673 | (1,134) | 12 | 6 | (30) | 8,914 | 8,705 |
6 months to | Equity | Capital | Fair | Cashflow | ||||
30 April 2013 | 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 1 November 2012 | 264 | 673 | (875) | 8 | 6 | (57) | 8,273 | 8,292 |
Profit for the period
| - | - | - | - | - | - | 280 | 280 |
Other comprehensive income for the period net of income tax
| - | - | - | - | - | 5 | 72 | 77 |
Total comprehensive income | ||||||||
for the period
| - | - | - | - | - | 5 | 352 | 357 |
Consideration paid by EBT on purchase of shares |
- |
- |
(71) |
- |
- |
- |
- |
(71) |
Consideration received by EBT on sale of shares
|
- |
- |
41 |
- |
- |
- |
- |
41 |
Loss by EBT on sale of shares
| - | - | 14 | -
| - | - | (14) | - |
Equity dividend paid
| - | - | - | - | - | - | (176) | (176) |
At 30 April 2013 | 264 | 673 | (891) | 8 | 6 | (52) | 8,435 | 8,443 |
12 months to | Equity | Capital | Fair | Cashflow | ||||
31 October 2013 | share | redemption | Treasury | value | Currency | hedge | Retained | Total |
Audited | capital | reserve | shares | adjustment | translation | reserve | earnings | equity |
£' 000 | £' 000 | £' 000 | £' 000 | £' 000 | £' 000 | £' 000 | £' 000 | |
At 1 November 2012 | 264 | 673 | (875) | 8 | 6 | (57) | 8,273 | 8,292 |
Profit for the year
| - | - | - | - | - | - | 744 | 744 |
Other comprehensive income for the year, net of income tax | - | - | - | - | - | 15 | 6 | 21 |
Total comprehensive income | ||||||||
for the year
| - | - | - | - | - | 15 | 750 | 765 |
Consideration received by EBT on sale of shares
|
- |
- |
41 |
- |
- |
- |
- |
41 |
Consideration paid by EBT on purchase of shares |
- |
- |
(182)
|
- |
- |
- |
- |
(182) |
Loss by EBT on sale of shares
| - | - | 14 | -
| - | - | (14) | - |
Equity dividend paid
| - | - | - | - | - | - | (352) | (352) |
At 31 October 2013 | 264 | 673 | (1,002) | 8 | 6 | (42) | 8,657 | 8,564 |
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 2013. 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 27 June 2014.
2. Basic and diluted earnings per share
The calculation of basic earnings per ordinary share is based on earnings of £437,000 (2013: £280,000), being profit after taxation for the period, and on 4,977,646 (2013: 5,029,763) 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 2014 has been posted to shareholders today and will be available on our website at www.heavitreebrewery.co.uk.
Ends.