Interim Results

29 Jun 2005 12:00

Heavitree Brewery PLC29 June 2005 The Heavitree Brewery PLCTrood LaneMatfordExeter EX2 8YP Telephone: 01392 217733 Contact: Mr G.J.Crocker - Finance Director and Company Secretary Mr R.J.Glanville - Director Date: 29 June 2005 Following a Board Meeting held today, 29 June 2005, the Directors announce thehalf-year results for the six months ended 30 April 2005. Group profit and loss accountfor the six months ended 30 April 2005 As restated 2005 2004 Notes £000 £000 Turnover 5,830 5,742 Operating profit 542 432Profit on sale of fixed assets 241 11Income from other fixed asset investments - - Profit on ordinary activities before interest and taxation 783 443Other interest receivable 3 3Interest payable (176) (134)Profit on ordinary activities before taxation 610 312Taxation on profit on ordinary activities (185) (92)Profit attributable to shareholders 425 220Dividends - equity and non-equity (201) (191)Profit retained for the financial period 224 29Basic and diluted earnings per share 3 7.89p 4.03p All revenues and costs relate to continuing operations. Dividends The Directors propose an interim dividend of 3.5p per share (2004 - 3.5p) on theOrdinary and 'A' Limited Voting Ordinary Shares. This dividend will be paid on29 July 2005 to shareholders on the register at 8 July 2005. Chairman's Statement ResultsThe half-year has been satisfactory. Turnover, beer and cider sales are all upgiving an Operating Profit up by 25.5% and Profit Before Tax of £610,000.Nearly double last year's figure of £312,000. The Managed Houses have nearly maintained last year's big improvement (of£240,000) with a loss of £134,000 which is £30,000 worse than last year. PropertiesThe Lamb Inn at Sandford, near Crediton has been sold giving rise to a profit of£241,000. Prospects for the yearI can do no better than to repeat, word for word, what I wrote this time lastyear. "Our performance so far deserves a year of all round improvement.However, I am sorry to report that the cost, this year, of implementing thelegislation of which I warned in my 2003 statement looks like being about£400,000. This involves the Disability Discrimination Act, new AsbestosRegulations and the new Licensing Act. Some of this has already been incurred.More will follow. Bad news for us but good news for the fast growing army ofbureaucrats whose jobs depend on the invention of costly schemes." The warningwas confirmed in my year-end statement. The majority of the £400,000 will in fact be paid in the second half of thisyear. It is therefore unlikely that there will be any growth in the year'sprofit. Nor any increase in dividend. The warning was correct but the timingwas a bit adrift. Rather like a weather forecast. Dividend An interim dividend of 3.5p (unchanged) on the Ordinary and 'A' Limited VotingOrdinary Shares has been declared and will be paid on 29 July 2005 toshareholders on the Register at 8 July 2005. Compliance with all the regulations is also costing an enormous amount ofmanagement time, which is a heavy burden on our already hard-working team. Inthe language of politics this is all known as 'cutting red tape'. W P TuckerChairman29 June 2005 Group balance sheetAt 30 April 2005 As restated 2005 2004 £000 £000Fixed assetsTangible assets 15,407 14,050Investments 195 195 15,602 14,245Current assetsStocks 146 155Debtors 2,887 2,505Cash at bank and in hand 538 347 3,571 3,007Creditors: amounts falling due within one year (10,671) (9,325)Net current liabilities (7,100) (6,318)Total assets less current liabilities 8,502 7,927Creditors: amounts falling due after more than one year (284) (248) Provisions for liabilities and chargesDeferred taxation (218) (281) 8,000 7,398Capital and reservesCalled up share capital 291 296Capital redemption reserve 658 653Other reserves 72 75Own shares reserve (674) (664)Profit and loss account 7,653 7,038 8,000 7,398Attributable to non-equity interests 11 11Attributable to equity interests 7,989 7,387Total shareholders' funds 8,000 7,398 Group statement of cash flowsfor the six months ended 30 April 2005 2005 2004 Note £000 £000 Net cash inflow from operating activities 4 1,047 900 Returns on investments and servicing of financeInterest paid (228) (134)Interest received 3 3Preference dividend paid (1) (1)Net cash outflow from returns on investments and servicing of finance (226) (132) TaxationCorporation tax paid (426) (372) Capital expenditure and financial investmentPayments to acquire tangible fixed assets (880) (417)Receipts from sales of tangible fixed assets 315 11Receipts from repayment of fixed assets investments - 9 (565) (397) Equity dividends paid (325) (326) FinancingConsideration received by EBT on sale of shares 39 -Consideration paid by EBT on purchase of shares (118) (10)Repayment of directors' loans (10) (7)Loans from directors - - (89) (17)Decrease in cash (584) (344) Notes to the interim results 1 These figures for the six months ended 30 April 2005 are unaudited. 2 The 2004 results have been restated following the implementation of Urgent Issues Task Force (UITF) Abstract 38 'Accounting for ESOP Trusts'. 3 Basic and diluted earnings per share The calculation of basic earnings per ordinary share is based on earnings of£424,000 (2004 restated: £219,000), being profit after taxation for the year of£425,000 (2004 restated - £220,000) less preference dividends of £1,000 (2004 -£1,000), and on 5,374,483 (2004 - 5,433,950) shares being the weighted averagenumber of Ordinary and 'A' Limited Voting Ordinary Shares in issue during theyear after excluding the shares owned by The Heavitree Brewery PLC EmployeeBenefits Trust and those shares under option pursuant to the Employee ShareOption 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: 2005 2004 £000 £000 Operating profit 542 432Depreciation 238 238(Increase) in stocks (3) (13)(Increase) in operation debtors (1,222) (1,361)Increase in operating creditors 1,492 1,604Net cash inflow from continuing operating activities 1047 900 This information is provided by RNS The company news service from the London Stock Exchange