Heavitree Regulatory News (HVT)

The Heavitree Brewery PLC

Trood Lane

Matford

Exeter EX2 8YP

Date: 7 July 2011

Contact: Graham Crocker - Managing Director - 01392 217733

Rod Glanville - Director and 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, 7 July 2011, the Directors announce the interim results for the six months ended 30 April 2011.

Chairman's statement

Revenue has recovered well after the adverse effects of the particularly harsh weather conditions which were felt during the Christmas and New Year trading period and I am pleased to report that the Company has enjoyed a steady performance for the first six months of the current trading year. As a means of offering support to our tenants, suppliers' New Year price increases, together with the Duty increase, announced in the Chancellor's March Budget, were not passed on until mid-April. Gross margins were consequently diminished over this period. This will also have had an effect on turnover for the first half of the year.

RESULTS

The Group operating profit is £558,000 (2010 - £583,000) with turnover showing a small drop of £18,000 against the previous year, a fall of 0.5%. After allowing for an additional finance cost of £31,000 in respect of the FRS 17 calculation relating to our closed final salary Pension Scheme, the Group profit before taxation is £450,000 (2010 - £519,000).

DIVIDEND

The Directors have resolved to pay an interim dividend of 3.5p per Ordinary Share and 'A' Limited Voting Ordinary Share (2010 - 3.5p). The dividend will be paid on 5 August 2011 to shareholders on the Register at the close of business on 22 July 2011.

PROSPECTS

Trading conditions remain testing across all sectors of the wider economy and the pub industry must fight wisely for its share of the retail spend against this backdrop. We believe the continued support we offer to our tenants together with a focussed and time-managed investment in our estate can only help in this regard. The success of our pubs has always been and will continue to be mutually beneficial to both the Company and our tenants.

N H P TUCKER

Chairman

Consolidated income statement (unaudited)

For the six months ended 30 April 2011

Consolidated statement of comprehensive income (unaudited)

For the six months ended 30 April 2011

Dividends

The Directors declare an interim dividend of 3.5p per share (2010 - 3.5p) on the Ordinary and 'A' Limited Voting Ordinary Shares. This dividend will be paid on 5 August 2011 to shareholders on the register at 22 July 2011.

Consolidated balance sheet (unaudited)

at 30 April 2011

Group statement of cash flows (unaudited)

for the six months ended 30 April 2011

Group reconciliation of movements in equity (unaudited)

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 2010. 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 7 July 2011.

2. Basic and diluted earnings per share

The calculation of basic earnings per ordinary share is based on earnings of £268,000 (2010: £337,000), being profit after taxation for the period, and on 5,142,671 (2010: 5,130,189) 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.

After the Groups restructure it no longer operates in two business segments, it now only operates a 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 2011 has been posted to shareholders today and will be available on our website at www.heavitreebrewery.co.uk.

ISIN: GB0004182720 for 'A' Limited Voting Ordinary Shares

ISIN: GB0004182506 for Ordinary Shares

Ends.