Last checked at 29 Jun 2015 16:00
The Heavitree Brewery PLC
Trood Lane
Matford
Exeter EX2 8YP
Date: 29 June 2015
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, 29 June 2015, the Directors announce the interim results for the six months ended 30 April 2015.
Chairman's statement
The Company has returned an operating profit of £507,000 for the period under review which is 18% down on the previous year but slightly ahead of our expectations. The drop in operating profit is as a result of a number of factors. Firstly, there was an increase in administration costs which included the cost of an agency operating a house over the winter months before it was returned to a tenancy. Secondly, an extra £20,000 valuation cost was incurred in our successful renewal of our banking facility for a new five year term. Thirdly, there was an increase in superannuation and pension scheme costs of £14,000. Finally, a number of houses, mostly owing to the substantial works being undertaken at each, have not contributed in the half year under review.
Results
The Group operating profit is £507,000 (2014 - £619,000), an 18% decrease on last year. After allowing for finance costs of £117,000 which includes £23,000 in respect of the IAS19 calculation referring to the final salary Pension Scheme (2014 - £156,000 and £53,000 respectively), the Group profit before taxation is £395,000 (2014 - £592,000). Heavitree Inc. returned a loss of £7,000 (2014 - profit of £13,000) and it is also worth noting that we sold four unlicensed properties during the corresponding period last year returning a profit of £129,000.
Dividend
The Directors have resolved to pay an interim dividend of 3.675p per Ordinary Share and 'A' Limited Voting Ordinary Share (2014 - 3.675p). The dividend will be paid on 07 August 2015 to shareholders on the Register at the close of business on 24 July 2015.
Prospects
The second half of the year will see the opening of the George and Dragon in Dartmouth and the Oddfellows (previously called the Heavitree) in Exmouth after major refurbishments and we look forward to seeing the increase in contribution from these two sites. Also, the Pen Inn opened in May after a major refurbishment by Mitchells and Butler to whom we have leased the pub. The additional income stream from these houses and the continued performance from the rest of our estate of fine pubs should stand us in good stead for the second half of the year.
N H P TUCKER
Chairman
Group income statement (unaudited)
For the six months ended 30 April 2015
|
|
6 months to 30 April2015 |
6 months to 30 April 2014 | Audited 12 months to 31 October 2014 |
| Note | £' 000 | £' 000 | £' 000 |
Revenue |
| 3,277 | 3,304 | 7,198 |
Change in stocks |
| - | - | - |
Other operating income |
| 113 | 125 | 230 |
Purchase of inventories |
| (1,405) | (1,417) | (3,127) |
Staff costs |
| (562) | (526) | (1,144) |
Depreciation of property, plant and equipment |
| (108) | (127) | (227) |
Other operating charges |
| (808) | (740) | (1,526) |
| (2,770) | (2,685) | (5,794) | |
Group operating profit |
| 507 | 619 | 1,404 |
Profit on sale of property, plant and equipment |
| 5 | 129 | 466 |
| ||||
Group profit before finance costs and taxation |
| 512 | 748 | 1,870 |
Finance income |
| 5 | 9 | 17 |
Finance costs |
| (99) | (112) | (203) |
Other finance costs-pensions |
| (23) | (53) | (42) |
| (117) | (156) | (228) | |
Profit before taxation |
| 395 | 592 | 1,642 |
Tax (expense) |
| (103) | (155) | (261) |
Profit for the period |
| 292 | 437 | 1,381 |
Earnings per share - basic- diluted | 2 |
6.0p6.0p |
8.8p8.8p |
28.0p 28.0p |
Group statement of comprehensive income (unaudited)
For the six months ended 30 April 2015
|
|
6 months to 30 April2015 |
6 months to 30 April 2014 | Audited 12 months to 31 October 2014 |
| £' 000 | £' 000 | £' 000 | |
Profit for the period | 292 | 437 | 1,381 | |
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
|
411 (82) 329
|
15 (3) 12
|
(415) 84 (331)
| |
Items that may be reclassified to profit or loss Cash flow hedges Fair Value adjustment Exchange rate differences on translation of subsidiary undertaking
Tax relating to items that may be reclassified
|
20 1 (2) - 19 |
16 - - (4) 12 |
28 8 1 (6) 31 | |
Other comprehensive income for the year, net of tax | 640 | 461 | 1,081 | |
Total comprehensive income attributable to: Equity holders of the parent |
640 |
461 |
1,081 | |
Dividends
The Directors declare an interim dividend of 3.675p per share (2014 - 3.675p) on the Ordinary and 'A' Limited Voting Ordinary Shares. This dividend will be paid on 07 August 2015 to shareholders on the register at 24 July 2015.
Group balance sheet (unaudited)
at 30 April 2015
|
|
30 April 2015 £' 000 |
30 April 2014 £' 000 | Audited 31 October 2014 £'000 |
Non-current assets | ||||
Property, plant and equipment | 16,077 | 14,701 | 15,043 | |
Financial assets | 37 | 31 | 35 | |
Deferred tax asset | 50 | 155 | 237 | |
16,164 | 14,887 | 15,315 | ||
Current assets | ||||
Trade and other receivables | 1,785 | 1,850 | 1,245 | |
Inventories | 10 | 10 | 10 | |
Cash and short-term deposits | 114 | 122 | 112 | |
1,909 | 1,982 | 1,367 | ||
Assets held for sale | - | 71
| - | |
Total assets | 18,073 | 16,940 | 16,682 | |
Current liabilities | ||||
Trade and other payables | (1,055) | (1,032) | (954) | |
Financial liabilities | (1,580) | (1,165) | (4,858) | |
Income tax payable | (184) | (99) | (184) | |
(2,819) | (2,296) | (5,996) | ||
Non-current liabilities | ||||
Other payables | (241) | (226) | (234) | |
Financial liabilities | (5,011) | (4,762) | (11) | |
Deferred tax liabilities | (200) | (212) | (200) | |
Defined benefit pension plan | (249) | (739) | (1,158) | |
(5,701) | (5,939) | (1,603) | ||
Total liabilities | (8,520) | (8,235) | (7,599) | |
Net assets | 9,553 | 8,705 | 9,083 | |
Capital and reserves | ||||
Equity share capital | 264 | 264 | 264 | |
Capital redemption reserve | 673 | 673 | 673 | |
Treasury shares | (1,190) | (1,134) | (1,202) | |
Fair value adjustments reserve | 17 | 12 | 16 | |
Cash flow hedging reserve | - | (30) | (20) | |
Currency translation | 5 | 6 | 7 | |
Retained earnings | 9,784 | 8,914 | 9,345 | |
Total equity | 9,553 | 8,705 | 9,083 |
Group statement of cash flows (unaudited)
for the six months ended 30 April 2015
|
|
6 months to 30 April2015 |
6 months to 30 April 2014 | Audited 12 months to 31 October 2014 |
|
| £' 000 | £' 000 | £' 000 |
Profit for the period Tax expense Net finance costs | 292 103 117 | 437 155 156 | 1,381 261 228 | |
Profit on disposal of non-current assets and assets held for sale | (5) | (129) | (466) | |
Depreciation and impairment of property, plant and equipment | 108 | 127 | 227 | |
(Increase)/decrease in trade and other receivables | (651) | (486) | 120 | |
Increase in trade and other payables | 104 | 184 | 113 | |
Net pension charge | (522) | (507) | (507) | |
Cash generated from operations | (454) | (63) | 1,357 | |
Income taxes paid | - | (5) | (36) | |
Interest paid | (98) | (112) | (203) | |
Net cash (outflow)/inflow from operating activities | (552) | (180) | 1,118 | |
Investing activities | ||||
Interest received | 5 | 9 | 17 | |
Proceeds from sale of property, plant and equipment and assets held for sale | 24 | 955 | 1,381 | |
Payments to acquire property, plant and equipment | (1,050) | (189) | (649) | |
Net cash(outflow)/inflow from investing activities | (1,021) | 775 | 749 | |
Financing activities | ||||
Preference dividend paid | (1) | (1) | (1) | |
Equity dividends paid | (179) | (184) | (354) | |
Consideration received by EBT on sale of shares | 30 | 36 | 37 | |
Consideration paid by EBT on purchase of shares | (21) | (176) | (245) | |
Movement in long term borrowing | 250
| (250) | (250) | |
Net cash inflow/(outflow) from financing activities | 79 | (575) | (813) | |
(Decrease)/increase in cash and cash equivalents | (1,494) | 20 | 1,054 | |
Cash and cash equivalents at the beginning of the period | 28 | (1,026) | (1,026) | |
Cash and cash equivalents at the period end. | (1,466) | (1,006) | 28 |
Group reconciliation of movements in equity (unaudited)
6 months to | Equity | Capital | Fair | Cashflow | ||||
30 April 2015 | 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 2014 | 264 | 673 | (1,202) | 16 | 7 | (20) | 9,345 | 9,083 |
Profit for the period | - | - | - | - | - | - | 292 | 292
|
Other comprehensive income for the period, net of income tax | - | - | - | 1 | (2) | 20 | 329 | 348 |
Total comprehensive income | ||||||||
for the period
| - | - | - | 1 | (2) | 20 | 621 | 640 |
Consideration received by EBT on sale of shares
|
- |
- |
30 |
- |
- |
- |
- |
30 |
Consideration paid | ||||||||
by EBT on purchase of | ||||||||
shares | - | - | (21) | - | - | - | - | (21) |
Loss by EBT on sale | ||||||||
of shares
| - | - | 3 | - | - | - | (3) | - |
Equity dividend paid
| - | - | - | - | - | - | (179) | (179) |
At 30 April 2015 | 264 | 673 | (1,190) | 17 | 5 | - | 9,784 | 9,553 |
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 1 November 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 |
12 months to | Equity | Capital | Fair | Cashflow | ||||
31 October 2014 | 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 2013 | 264 | 673 | (1,002) | 8 | 6 | (42) | 8,657 | 8,564 |
Profit for the year
| - | - | - | - | - | - | 1,381 | 1,381 |
Other comprehensive income for the year, net of income tax | - | - | - | 8 | 1 | 22 | (331) | (300) |
Total comprehensive income | ||||||||
for the year
| - | - | - | 8 | 1 | 22 | 1,050 | 1,081 |
Consideration received by EBT on sale of shares
|
- |
- |
37 |
- |
- |
- |
- |
37 |
Consideration paid by EBT on purchase of shares |
- |
- |
(245)
|
- |
- |
- |
- |
(245) |
Loss by EBT on sale of shares
| - | - | 8 | -
| - | - | (8) | - |
Equity dividend paid
| - | - | - | - | - | - | (354) | (354) |
At 31 October 2014 | 264 | 673 | (1,202) | 16 | 7 | (20) | 9,345 | 9,083 |
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 2014. 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 29 June 2015.
2. Basic and diluted earnings per share
The calculation of basic earnings per ordinary share is based on earnings of £292,000 (2014: £437,000), being profit after taxation for the period, and on 4,868,704 (2014: 4,977,646) 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 2015 has been posted to shareholders today and will be available on our website at www.heavitreebrewery.co.uk.
Ends.