Heavitree Regulatory News (HVT)

29 Jun 2006 15:00

Heavitree Brewery PLC29 June 2006 The Heavitree Brewery PLCTrood LaneMatfordExeter EX2 8YP Telephone: 01392 217733Contact: Mr G.J.Crocker - Finance Director and Company Secretary Mr R.J.Glanville - Director Date: 29 June 2006 Following a Board Meeting held today, 29 June 2006, the Directors announce thehalf-year results for the six months ended 30 April 2006. Chairman's statement ResultsA gross profit of £842,000 from the sale of our shares in George Gale & CompanyLimited has provided a big boost to the half-year's results giving a totalprofit on ordinary activities before tax of £1,140,000 compared to £434,000(restated) last year. Excluding the Gale's windfall and all other profits onsales of fixed assets, the comparative figures are £298,000 against £193,000(restated) in 2005. Both sides of the business are performing well as is evidenced by the £110,000increase in operating profit up from £409,000 (restated) to £519,000. I amparticularly pleased to report that the underlying improvement in performance ofthe managed houses continues, with like for like sales up by 5.26%. Properties There have been no sales or purchases. Refurbishment of our Trood Lane officestogether with the ongoing programme of capital improvements to our pubs, hasresulted in a total spend of £560,000 so far this year. Prospects for the year The outlook is still heavily overshadowed by the shortfall in our pension fund.However, the old final salary scheme has now been closed and replaced with astakeholder one which should avoid any future unforeseeable black holes. Thefinal salary scheme will be wound up but it will be several months before afinal figure can be given on the amount required to meet all of our obligationsunder that arrangement. The cost of compliance with the new Licensing Act and with the torrent ofregulations continues, and will continue, to be a burden but the Directorsbelieve that the business is in good health. Dividend The Directors feel justified in paying an increased interim dividend of 4.0p perOrdinary and 'A' Limited Voting Ordinary Share. This represents an increase of0.5p and the dividend will be paid on 28 July 2006 to shareholders on theRegister at 7 July 2006. W P TuckerChairman Group profit and loss accountfor the six months ended 30 April 2006 As restated 2006 2005 Note £000 £000 Turnover 6,136 5,830 Operating profit 519 409Profit on sale of tangible fixed assets - 241Profit on disposal of fixed asset investments 842 - Profit on ordinary activities before interestand taxation 1,361 650Other interest receivable 4 3Interest payable (183) (177)Other finance charges - FRS 17 (42) (42)Profit on ordinary activities before taxation 1,140 434Taxation on profit on ordinary activities (242) (171)Profit attributable to shareholders 898 263Basic and diluted earnings per share 3 16.8p 4.9p All revenues and costs relate to continuing operations. Group statement of total recognised gains and lossesfor the six months ended 30 April 2006 As restated 2006 2005 £000 £000Profit attributable to shareholders 898 263Exchange difference on retranslation of subsidiary 1 -Actuarial loss on pension scheme (74) (78)Deferred tax relating to actuarial loss on pension scheme 22 23Total recognised gains and losses relating to period and since 847 208last annual report Group statement of movement on shareholders' fundsfor the six months ended 30 April 2006 As restated 2006 2005 £000 £000At 1 November as previously reported 6,581 6,316Prior year adjustment - FRS 21 317 310Prior year adjustment - FRS 25 (12) (12)At 1 November as restated 6,886 6,614Total recognised gains and losses relating to the year 847 208Dividends (319) (315)Consideration received by EBT on sale of shares 63 39Consideration paid by EBT on purchase of shares (605) (107)At 30 April 6,872 6,439 The early adoption of Financial Reporting Standard No. 17 'Retirement Benefits'in the annual accounts for the year ended 31 October 2005 resulted in a prioryear adjustment of £1,539,000 on shareholders funds reducing the £7,855,000previously reported to £6,316,000 above. Dividends The Directors declare an interim dividend of 4.0p per share (2005 - 3.5p) on theOrdinary and 'A' Limited Voting Ordinary Shares. This dividend will be paid on28 July 2006 to shareholders on the register at 7 July 2006. Group balance sheetAt 30 April 2006 As restated 2006 2005 £000 £000Fixed assetsTangible assets 16,503 15,407Investments 20 195 16,523 15,602Current assetsStocks 168 146Debtors 1,664 2,830Cash at bank and in hand 647 538 2,479 3,514Creditors: amount falling due within one year (9,805) (10,520)Net current liabilities (7,326) (7,006)Total assets less current liabilities 9,197 8,596Creditors: amount falling due after more than one year (288) (296) Provisions for liabilities and chargesDeferred taxation (283) (264)Net assets excluding pension liability 8,626 8,036Pension liability (1,754) (1,597) 6,872 6,439Capital and reservesCalled up share capital 279 279Capital redemption reserve 658 658Other reserves 73 72Own shares reserve (1,306) (674)Profit and loss account 7,168 6,104Total shareholders' funds - equity 6,872 6,439 Group statement of cash flowsfor the six months ended 30 April 2006 As restated 2006 2005 Note £000 £000 Net cash flow from operating activities 4 1,496 1,073 Returns on investments and servicing of financeInterest paid (225) (219)Interest received 4 3Preference dividend paid (1) (1)Net cash outflow from returns on investmentsand servicing of finance (222) (217) TaxationCorporation tax paid (186) (493) Capital expenditure and financial investmentPayments to acquire tangible fixed assets (975) (880)Receipts from sales of tangible fixed assets - 315Receipts from sale of fixed assets investments 1,017 - 42 (565) Equity dividends paid (318) (314) FinancingConsideration received by EBT on sale of shares 63 39Consideration paid by EBT on purchase of shares (605) (107) (542) (68)Increase/(Decrease) in cash 270 (584) Reconciliation of net cash flow to movement in net debtfor the six months ended 30 April 2006 As restated 2006 2005 £000 £000Increase/(decrease) in cash 270 (584)Change in net debt arising from cash flows being movement in net 270 (584)debtNet debt at beginning of period (6,546) (6,166)Net debt at end of period (6,276) (6,750) Notes to the interim results 1 These figures for the six months ended 30 April 2006 are unaudited. 2 The accounting policies are consistent with the previous year exceptfor the adoption of Financial Reporting Standard No 17 'Retirement Benefits'(which was also adopted early for the annual accounts for the year ended 31October 2005), Financial Reporting Standard No 21 'Events after the BalanceSheet Date' and Financial Reporting Standard No. 25 'Financial InstrumentsDisclosure and Presentation'. The prior year six month period has been restatedfor this implementation and the impact is summarised below: (a) Group profit and loss account Profit for the year attributable to shareholders £'000As previously reported 425Implementation of FRS 17 (161)Implementation of FRS 25 (1)As restated 263 (b) Group balance sheet Debtors Creditors < Creditors > Deferred Net pension Share P&L 1 year 1 year tax liability Capital Reserve £'000 £'000 £'000 £'000 £'000 £'000 £'000 As previously reported 2,887 (10,671) (284) (218) - 291 7,653Implementation of FRS 17 (57) (44) - (46) (1,597) - (1,744)Implementation of FRS 21 - 195 - - - - 195Implementation of FRS 25 - - (12) - - (12) -As restated 2,830 (10,520) (296) (264) (1,597) 279 6,104 3 Basic and diluted earnings per share The calculation of basic earnings per ordinary share is based on earnings of£898,000 (2005 restated: £263,000), being profit after taxation for the year,and on 5,352,674 (2004 - 5,374,483) shares being the weighted average number ofOrdinary and 'A' Limited Voting Ordinary Shares in issue during the year afterexcluding the shares owned by The Heavitree Brewery PLC Employee Benefits Trustand those shares under option pursuant to the Employee Share Option Scheme. The diluted earnings per share is equal to the basic earnings per share becausethe share options within the Employee Share Option Scheme are considered to benon-dilutive potential ordinary shares. The Ordinary Shares and the 'A' Limited Voting Ordinary Shares have equaldividend rights and therefore no separate calculation of earnings per share forthe different classes has been given. 4 Group statement of cash flows Reconciliation of operating profit to net cash inflow from operating activities: As restated 2006 2005 £000 £000 Operating profit 519 409Depreciation 308 238(Increase) in stocks (19) (3)(Increase) in operating debtors (365) (1,222)Increase in operating creditors 974 1,573Net pension change 78 78Exchange gain on cash 1 -Net cash inflow from continuing operating activities 1,496 1,073 Ends. This information is provided by RNS The company news service from the London Stock Exchange