Last checked at 27 Jun 2008 12:32
Heavitree Brewery PLC ("Heavitree" or the "Company")
Trood Lane
Matford
Exeter
Devon EX2 8YP
27 June 2008
Trading update for the six months ended 30 April 2008
Strategic review underway
Heavitree announces that trading in the six-month period ended 30 April 2008 is expected to be significantly behind trading recorded in the same period last year. The Company now expects that a small operating loss will be recorded for the six month period versus an operating profit in the six months ended 30 April 2007 of £790k. Turnover in the period is expected to be slightly lower than the same period in 2007, however, the Company incurred significant additional operating costs.
The Company announced on 18 February 2008 (in the release of its final results for the year ended 31 October 2007) that the industry was suffering from a number of challenges including the smoking ban, poor weather and the credit squeeze. The Company does not see any signs of an improved economic outlook in the near term and has decided not to pay an interim dividend this year. Despite the challenges faced, the Company remains well capitalised with significant headroom over debt facilities.
Heavitree's Board is conducting a strategic review of its business and has appointed Ernst & Young LLP with a view to advising the Board on how best value might be secured for all shareholders given the prevailing negative industry outlook. The Company expects to update shareholders on the status of this strategic review towards the end of July 2008 when it expects to announce its interim results for the six months ended 30 April 2008.
Ends.
Press enquiries:
G J Crocker - Managing Director
01392 217733
P Keane - Shore Capital and Corporate Limited, Nominated Adviser
020 7408 4090
T Medak - Ernst & Young LLP
020 7951 7491