Half Yearly Report

RNS Number : 8687J

Heavitree Brewery PLC

07 July 2011

 



The Heavitree Brewery PLC

Trood Lane

Matford

Exeter EX2 8YP

Date:                7 July 2011

Contact:           Graham Crocker - Managing Director - 01392 217733

Rod Glanville - Director and 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, 7 July 2011, the Directors announce the interim results for the six months ended 30 April 2011.

Chairman's statement

Revenue has recovered well after the adverse effects of the particularly harsh weather conditions which were felt during the Christmas and New Year trading period and I am pleased to report that the Company has enjoyed a steady performance for the first six months of the current trading year.  As a means of offering support to our tenants, suppliers' New Year price increases, together with the Duty increase, announced in the Chancellor's March Budget, were not passed on until mid-April.  Gross margins were consequently diminished over this period. This will also have had an effect on turnover for the first half of the year.

RESULTS

The Group operating profit is £558,000 (2010 - £583,000) with turnover showing a small drop of £18,000 against the previous year, a fall of 0.5%.  After allowing for an additional finance cost of £31,000 in respect of the FRS 17 calculation relating to our closed final salary Pension Scheme, the Group profit before taxation is £450,000 (2010 - £519,000).

DIVIDEND

The Directors have resolved to pay an interim dividend of 3.5p per Ordinary Share and 'A' Limited Voting Ordinary Share (2010 - 3.5p).  The dividend will be paid on 5 August 2011 to shareholders on the Register at the close of business on 22 July 2011.

PROSPECTS

Trading conditions remain testing across all sectors of the wider economy and the pub industry must fight wisely for its share of the retail spend against this backdrop.   We believe the continued support we offer to our tenants together with a focussed and time-managed investment in our estate can only help in this regard.  The success of our pubs has always been and will continue to be mutually beneficial to both the Company and our tenants.

N H P TUCKER

Chairman

Consolidated income statement (unaudited)

For the six months ended 30 April 2011

		6 months to 30 April 2011	6 months to 30 April 2010	Audited 12 months to 31  October 2010
	Note	£' 000	£' 000	£' 000
Revenue		3,405	3,423	7,388
Change in stocks		-	-	(9)
Other operating income		49	44	91
Purchase of inventories		(1,433)	(1,422)	(3,141)
Staff Costs		(561)	(558)	(1,197)
Depreciation of property, plant and equipment		(200)	(173)	(272)
Other operating charges		(702)	(731)	(1,433)
		(2,847)	(2,840)	(5,961)
Group operating profit		558	583	1,427
Profit on disposal of non-current assets and assets held for sale		10	18	32
Group profit before finance costs and taxation		568	601	1,459
Finance income		16	15	35
Finance costs		(79)	(73)	(141)
Other finance costs-pensions		(55)	(24)	(128)
		(118)	(82)	(234)
Profit before taxation		450	519	1,225
Tax (expense)		(182)	(182)	(368)
Profit for the period		268	337	857
Earnings per share - basic - diluted	2	5.2p 5.2p	6.6p 6.6p	16.7p 16.7p

Consolidated statement of comprehensive income (unaudited)

For the six months ended 30 April 2011

		6 months to 30 April 2011	6 months to 30 April 2010	Audited 12months  to 31 October 2010
		£' 000	£' 000	£' 000
Actuarial gains/(losses) on defined benefit pension plans Fair Value Adjustment Exchange difference on retranslation of subsidiary		25 (9)                   - 16	83 (7)                   - 76	(93) -                  3 (90)
Tax on items taken directly to or transferred from equity		(9)	(22)	26
Net income/(expense) recognised directly in equity		7	54	(64)
Profit for the period		268	337	857
Total comprehensive income  for the period		275	391	793

 

Dividends

The Directors declare an interim dividend of 3.5p per share (2010 - 3.5p) on the Ordinary and 'A' Limited Voting Ordinary Shares. This dividend will be paid on 5 August 2011 to shareholders on the register at 22 July 2011.

 

Consolidated balance sheet (unaudited)

at 30 April 2011

		30 April 2011 £' 000	30 April 2010 £' 000	Audited 31 October 2010 £'000
Non-current assets
Property, plant and equipment		14,624	13,878	14,070
Financial assets		41	42	50
Deferred tax asset		345	426	505
		15,010	14,346	14,625
Current assets
Trade and other receivables		1,763	2,115	1,444
Inventories		10	19	10
Cash and short-term deposits		204	151	216
Assets held for sale		-	-	-
		1,977	2,285	1,670
Total assets		16,987	16,631	16,295
Current liabilities
Trade and other payables		(807)	(931)	(709)
Financial liabilities		(1,513)	(1,315)	(558)
Income tax payable		(274)	(115)	(248)
		(2,594)	(2,361)	(1,515)
Non-current liabilities
Other payables		(303)	(322)	(319)
Financial liabilities		(4,011)	(4,011)	(4,011)
Deferred tax liabilities		(265)	(248)	(265)
Defined benefit pension plan		(1,325)	(1,522)	(1,802)
		(5,904)	(6,103)	(6,397)
Total liabilities		(8,498)	(8,464)	(7,912)
Net assets		8,489	8,167	8,383
Capital and reserves
Equity share capital		264	264	264
Capital redemption reserve		673	673	673
Treasury shares		(680)	(814)	(826)
Fair value adjustments reserve		21	23	30
Currency translation		6	3	6
Retained earnings		8,205	8,018	8,236
Total equity		8,489	8,167	8,383

Group statement of cash flows (unaudited)

for the six months ended 30 April 2011

		6 months to 30 April 2011	6 months to 30 April 2010	Audited 12months  to 31 October 2010
		£' 000	£' 000	£' 000
Profit for the period Tax Net finance costs		268 182 118	337 182 82	857 368 234
Profit on disposal of non-current assets and assets held for sale		(10)	(18)	(32)
Depreciation and impairment of property, plant and equipment		200	173	272
Share based payments		-	6	11
Decrease in inventories		-	-	9
(Increase)/Decrease in trade and other receivables		(319)	(447)	224
Increase/(Decrease) in trade and other payables		82	66	(158)
Net pension charge		(507)	(507)	(507)
Cash generated from operations		14	(126)	1,278
Income taxes paid		(4)	(5)	(78)
Net cash inflow/(outflow) from operating activities		10	(131)	1,200
Investing activities
Interest received		16	15	35
Proceeds from sale of property, plant and equipment and assets held for sale		24	67	91
Payments to acquire property, plant and equipment		(768)	(417)	(718)
Net cash outflow from investing activities		(728)	(335)	(592)
Financing activities
Interest paid		(79)	(73)	(141)
Preference dividend paid		(1)	(1)	(1)
Equity dividends paid		(179)	(179)	(359)
Consideration received by EBT on sale of shares		43	44	44
Consideration paid by EBT on purchase of shares		(33)	(10)	(22)
Repayment of loans from directors		-	-	8
Movement in long term borrowing		-	(1,000)	(1,000)
Net cash outflow from financing activities		(249)	(1,219)	(1,471)
Decrease in cash and cash equivalents		(967)	(1,685)	(863)
Cash and cash equivalents at the beginning of the period		(342)	521	521
Cash and cash equivalents at the period end.		(1,309)	(1,164)	(342)

Group reconciliation of movements in equity (unaudited)

6 months to	Equity	Capital		Fair
30 April 2011	share	redemption	Treasury	value	Currency	Retained	Total
	capital	reserve	shares	adjustment	translation	earnings	equity
	£' 000	£' 000	£' 000	£' 000	£' 000	£' 000	£' 000
At 1November  2010	264	673	(826)	30	6	8,236	8,383
Total     comprehensive income
for the period	-	-	-	(9)	-	284	275
Consideration paid by EBT on purchase of shares	-	-	(33)	-	-	-	(33)
Consideration received
by EBT on sale of
shares	-	-	43	-	-	-	43
Gain by EBT on sale
of shares	-	-	136	-	-	(136)	-
Equity dividend  paid	-	-	-	-	-	(179)	(179)
At 30 April 2011	264	673	(680)	21	6	8,205	8,489

6 months to	Equity	Capital		Fair
30 April 2010	share	redemption	Treasury	value	Currency	Retained	Total
	capital	reserve	shares	adjustment	translation	earnings	equity
	£' 000	£' 000	£' 000	£' 000	£' 000	£' 000	£' 000
At 1 November  2009	264	673	(994)	30	3	7,939	7,915
Total     comprehensive income
for the period	-	-	-	(7)	-	398	391
Consideration paid by EBT on purchase of shares	-	-	(10)	-	-	-	(10)
Consideration received by EBT on sale of shares	-	-	44	-	-	-	44
Gain by EBT on sale of shares	-	-	146	-	-	(146)	-
Share based payment	-	-	-	-	-	6	6
Equity dividend  paid	-	-	-	-	-	(179)	(179)
At 30 April 2010	264	673	(814)	23	3	8,018	8,167

 

12 months to	Equity	Capital		Fair
31 October 2010	share	redemption	Treasury	value	Currency	Retained	Total
Audited	capital	reserve	shares	adjustment	translation	earnings	equity
	£' 000	£' 000	£' 000	£' 000	£' 000	£' 000	£' 000
At 1 November  2009	264	673	(994)	30	3	7,939	7,915
Total     comprehensive income
for the period	-	-	-	-	3	790	793
Consideration paid by EBT on purchase of shares	-	-	(22)	-	-	-	(22)
Consideration received by EBT on sale of shares	-	-	44	-	-	-	44
Loss by EBT on sale of shares	-	-	146	-	-	(146)	-
Share based payment	-	-	-	-	-	12	12
Equity dividend  paid	-	-	-	-	-	(359)	(359)
At 31 October 2010	264	673	(826)	30	6	8,236	8,383

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 2010. 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 7 July 2011.

2.  Basic and diluted earnings per share

The calculation of basic earnings per ordinary share is based on earnings of £268,000 (2010: £337,000), being profit after taxation for the period, and on 5,142,671 (2010: 5,130,189) 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.

After the Groups restructure it no longer operates in two business segments, it now only operates a leased estate.  Leased estate represents properties which are leased to tenants to operate independently from the Group.

	6 months to 30 April 2011		6 months to 30 April 2010		Audited 12 months to 31 October 2010
	Revenue £' 000	Profit/(loss) £' 000	Revenue £' 000	Profit/(loss) £' 000	Revenue £' 000	Profit/(loss) £' 000
Leased	3,405	440	3,423	501	7,388	1,193
Sale of non-current assets	-	10	-	18	-	32
	3,405	450	3,423	519	7,388	1,225

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 2011 has been posted to shareholders today and will be available on our website at www.heavitreebrewery.co.uk.

ISIN: GB0004182720 for 'A' Limited Voting Ordinary Shares

ISIN: GB0004182506 for Ordinary Shares

Ends. 

 

END

 

 

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