Last checked at 28 Jun 2013 16:00
The Heavitree Brewery PLC
Trood Lane
Matford
Exeter EX2 8YP
Date: 28 June 2013
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, 28 June 2013, the Directors announce the interim results for the six months ended 30 April 2013.
Chairman's statement
I am pleased to report that, helped by the good control of general costs, operating profit for the six months ended 30 April 2013 has improved by 11.7% over last year. This was despite turnover being down 3.5% in the period due, in part, to a drop in rental income as a result of two houses being closed for capital investment and two other houses being marketed for sale. Also, revenue has been affected by a drop in gaming machine income which we believe may be as a result of the increased popularity of the new style of machines in betting shops.
RESULTS
The Group operating profit is £541,000 (2012 - £484,000) an increase of 11.7% on last year. After allowing for finance costs of £143,000 which includes £40,000 in respect of the IAS 19 calculation referring to the closed final salary Pension Scheme (2012 £132,000 and £37,000 respectively), the Group profit before taxation is £398,000 (2012 - £352,000).
DIVIDEND
The Directors have resolved to pay an interim dividend of 3.5p per Ordinary Share and 'A' Limited Voting Ordinary Share (2012 - 3.5p). The dividend will be paid on 2nd August 2013 to shareholders on the Register at the close of business on 19th July 2013.
PROSPECTS
It remains a challenging time to trade Public Houses and once again the adverse weather conditions and in particular the flooding in the region at the start of the year has not helped many of our Tenants. It is very much to the credit of those who were flooded that they only lost in total two days of actual trading.
The Group operating profit at the end of the six months' period is encouraging and we hope for 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 2013
|
|
6 months to 30 April2013 |
6 months to 30 April 2012 | Audited 12 months to 31 October 2012 |
| Note | £' 000 | £' 000 | £' 000 |
Revenue |
| 3,266 | 3,383 | 7,268 |
Change in stocks |
| - | - | - |
Other operating income |
| 80 | 58 | 144 |
Purchase of inventories |
| (1,353) | (1,405) | (3,097) |
Staff Costs |
| (501) | (573) | (1,211) |
Depreciation of property, plant and equipment |
| (127) | (181) | (293) |
Other operating charges |
| (824) | (798) | (1,566) |
| (2,725) | (2,899) | (6,023) | |
Group operating profit |
| 541 | 484 | 1,245 |
Profit on disposal of non-current assets and assets held for sale |
| - | - | (121) |
|
| |||
| ||||
Group profit before finance costs and taxation |
| 541 | 484 | 1,124 |
Finance income |
| 11 | 14 | 26 |
Finance costs |
| (114) | (109) | (168) |
Other finance costs-pensions |
| (40) | (37) | (55) |
| (143) | (132) | (197) | |
Profit before taxation |
| 398 | 352 | 927 |
Tax (expense) |
| (118) | (131) | (296) |
Profit for the period |
| 280 | 221 | 631 |
Earnings per share - basic- diluted | 2 |
5.5p5.5p |
4.4p 4.4p |
12.5p 12.5p |
Group statement of comprehensive income (unaudited)
For the six months ended 30 April 2013
|
|
6 months to 30 April2013 |
6 months to 30 April 2012 | Audited 12months to 31 October 2012 |
| £' 000 | £' 000 | £' 000 | |
Profit for the period | 280 | 221 | 631 | |
Items that will not be reclassified to profit or loss Actuarial gains/(losses) on defined benefit pension plans Tax relating to items that will not be reclassified
|
98 (26) 72
|
(17) 5 (12)
|
(868) 208 (660)
| |
Items that may be reclassified to profit or loss Cash flow hedges Fair value adjustment Tax relating to items that may be reclassified
|
7 - (2) 5 |
- (23) - (23) |
(75) (26) 18 (83) | |
Other comprehensive income for the year, net of tax | 357 | 186 | (112) | |
Total comprehensive income attributable to: Equity holders of the parent |
357 |
186 |
(112) | |
Dividends
The Directors declare an interim dividend of 3.5p per share (2012 - 3.5p) on the Ordinary and 'A' Limited Voting Ordinary Shares. This dividend will be paid on 2 August 2013 to shareholders on the register at 19 July 2013.
Group balance sheet (unaudited)
at 30 April 2013
|
|
30 April 2013 £' 000 |
30 April 2012 £' 000 | Audited 31 October 2012 £'000 |
Non-current assets | ||||
Property, plant and equipment | 15,394 | 14,944 | 14,833 | |
Financial assets | 28 | 32 | 28 | |
Deferred tax asset | 268
| 190 | 417 | |
15,690 | 15,166 | 15,278 | ||
Current assets | ||||
Trade and other receivables | 1,242 | 1,450 | 1,362 | |
Inventories | 10 | 10 | 10 | |
Cash and short-term deposits | 74 | 114 | 78 | |
1,326 | 1,574 | 1,450 | ||
Assets held for sale | 525 | -
| 525 | |
Total assets | 17,541 | 16,740 | 17,253 | |
Current liabilities | ||||
Trade and other payables | (600) | (676) | (970) | |
Financial liabilities | (1,912) | (1,619) | (1,454) | |
Income tax payable | (5) | (5) | (102) | |
(2,517) | (2,300) | (2,526) | ||
Non-current liabilities | ||||
Other payables | (258) | (297) | (292) | |
Financial liabilities | (5,011) | (4,261) | (4,261) | |
Deferred tax liabilities | (215) | (251) | (220) | |
Defined benefit pension plan | (1,097) | (793) | (1,662) | |
(6,581) | (5,602) | (6,435) | ||
Total liabilities | (9,098) | (7,902) | (8,961) | |
Net assets | 8,443 | 8,838 | 8,292 | |
Capital and reserves | ||||
Equity share capital | 264 | 264 | 264 | |
Capital redemption reserve | 673 | 673 | 673 | |
Treasury shares | (891) | (804) | (875) | |
Fair value adjustments reserve | 8 | 11 | 8 | |
Cash flow hedging reserve | (52) | - | (57) | |
Currency translation | 6 | 6 | 6 | |
Retained earnings | 8,435 | 8,688 | 8,273 | |
Total equity | 8,443 | 8,838 | 8,292 |
Group statement of cash flows (unaudited)
for the six months ended 30 April 2013
|
|
6 months to 30 April2013 |
6 months to 30 April 2012 | Audited 12months to 31 October 2012 |
|
| £' 000 | £' 000 | £' 000 |
Profit for the period Tax expense Net finance costs | 280 118 143 | 221 132 132 | 631 296 197 | |
Profit on disposal of non-current assets and assets held for sale | - | - | (101) | |
Depreciation and impairment of property, plant and equipment | 127 | 181 | 537 | |
Decrease/(Increase) in trade and other receivables | 147 | (188) | (100) | |
(Decrease)/Increase in trade and other payables | (357) | (94) | 125 | |
Net pension charge | (507) | (507) | (507) | |
Cash generated from operations | (49) | (123) | 1,078 | |
Income taxes paid | (99) | (142) | (246) | |
Interest paid | (114) | (109) | (168) | |
Net cash (outflow)/inflow from operating activities | (262) | (374) | 664 | |
Investing activities | ||||
Interest received | 11 | 14 | 26 | |
Proceeds from sale of property, plant and equipment and assets held for sale | - | - | 534 | |
Payments to acquire property, plant and equipment | (762) | (255) | (1,386) | |
Net cash outflow from investing activities | (751) | (241) | (826) | |
Financing activities | ||||
Preference dividend paid | (1) | (1) | (1) | |
Equity dividends paid | (176) | (176) | (354) | |
Consideration received by EBT on sale of shares | 41 | 54 | 54 | |
Consideration paid by EBT on purchase of shares | (71) | (41) | (112) | |
Movement in long term borrowing | 750
| 250 | 250 | |
Net cash inflow/(outflow) from financing activities | 543 | 86 | (163) | |
Decrease in cash and cash equivalents | (470) | (529) | (325) | |
Cash and cash equivalents at the beginning of the period | (1,301) | (976) | (976) | |
Cash and cash equivalents at the period end. | (1,771) | (1,505) | (1,301) |
Group reconciliation of movements in equity (unaudited)
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 1November 2012 | 264 | 673 | (875) | 8 | 6 | (57) | 8,273 | 8,292 |
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 |
Gain 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 |
6 months to | Equity | Capital | Fair | Cashflow | ||||
30 April 2012 | 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 2011 | 264 | 673 | (840) | 34 | 6 | - | 8,679 | 8,816 |
Total comprehensive income | ||||||||
for the period
| - | - | - | (23) | - | - | 209 | 186 |
Consideration paid by EBT on purchase of shares |
- |
- |
(41) |
- |
- |
- |
- |
(41) |
Consideration received by EBT on sale of shares
|
- |
- |
54 |
- |
- |
- |
- |
54 |
Gain by EBT on sale of shares
| - | - | 23 | -
| - | - | (23) | - |
Equity dividend paid
| - | - | - | - | - | - | (177) | (177) |
At 30 April 2012 | 264 | 673 | (804) | 11 | 6 | - | 8,688 | 8,838 |
12 months to | Equity | Capital | Fair | Cashflow | ||||
31 October 2012 | 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 2011 | 264 | 673 | (840) | 34 | 6 | - | 8,679 | 8,816 |
Total comprehensive income | ||||||||
for the period
| - | - | - | (26) | - | (57) | (29) | (112) |
Consideration paid by EBT on purchase of shares |
- |
- |
(112) |
- |
- |
- |
- |
(112) |
Consideration received by EBT on sale of shares
|
- |
- |
54 |
- |
- |
- |
- |
54 |
Gain by EBT on sale of shares
| - | - | 23 | -
| - | - | (23) | - |
Equity dividend paid
| - | - | - | - | - | - | (354) | (354) |
At 31 October 2012 | 264 | 673 | (875) | 8 | 6 | (57) | 8,273 | 8,292 |
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 2012. 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 28 June 2013.
2. Basic and diluted earnings per share
The calculation of basic earnings per ordinary share is based on earnings of £280,000 (2012: £221,000), being profit after taxation for the period, and on 5,029,763 (2012: 5,059,961) 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 2013 has been posted to shareholders today and will be available on our website at www.heavitreebrewery.co.uk.
Ends.