Interim Results

Heavitree Brewery PLC
28 June 2002



Half Year's Result


Underlying this half years results are the three separate situations I have
described in earlier reports.  All three, in different ways give grounds for
optimism although the bare statement of the combined result is poor.

Taking first the tenanted side of the Company, there is an increase in net
operating profit of £31,000 (4.7%).  Over the last three years there has been a
programme of disposal with nine non-profitable houses sold.  This is balanced by
extensive improvements to some of the retained houses and purchases of two high
quality pubs.  Losses on the former have been greatly reduced while sales in the
latter have improved sufficiently to maintain the beer trade level in spite of
the barrelage lost by virtue of the sold houses.

The second section is our managed house subsidiary, Heavitree Inns.  They have
now seen six months of total control by our own team.  During this period, The
Pen Inn at Newton Abbot and the Ley Arms at Kenn have undergone major
refurbishments involving their being closed for several weeks.  This is
inevitably an expensive business and the costs of closure have totalled £83,000.
Both these pubs are trading well with sales greatly in excess of previous
levels.  Constant attention to detail in all the managed houses is reducing the
trading losses which we have suffered in the past, and results in the first half
are on budget to show an improvement over last year's loss before tax of
£178,000.

Pensions provision will continue to be expensive but payments will be spread
over a longer period than previously anticipated with consequent cash flow
benefits.

At the last full year-end I expressed confidence in the direction being taken in
our affairs.  The developments described above reinforce that view.

An interim dividend of 3.5p per Ordinary and 'A' Limited Voting Share, the same
as last year, will be paid.


W.P. Tucker.
Chairman.

                                                                    28 June 2002


                            UNAUDITED INTERIM RESULTS
                     for the six months ended 30 April 2002


These Results have today been distributed to all shareholders.Copies can be
obtained from the Registered Office, Trood Lane, Matford, Exeter EX2  8YP.
The Group carries on the business of the operation of public houses.


                                                       2002             2001
                                                      £,000            £,000

TURNOVER                                               5196             4704

OPERATING PROFIT/(LOSS)   (Note 1)
Holding Company                                         694              663
Susidiary Companies - Heavitree Inc.                     (4)              (3)
                    - Heavitree Inns                   (255)            (202)
                                                        435              458

Profit on Sale of Tangible Fixed Assets                 185              278
                                                        620              736
Net Interest Payable                                    (87)            (115)

PROFIT ON ORDINARY ACTIVITIES BEFORE TAX                533              621

Taxation                                               (182)            (164)

PROFIT ATTRIBUTABLE TO SHAREHOLDERS                     351              457
Dividends  -  Non - Equity Interest :
              Preference Shares                          (1)              (1)
           -  Equity Interest :
              Ordinary Shares  (Note 2)                (199)            (203)


RETAINED PROFIT                                          151             253

BASIC AND DILUTED EARNINGS PER SHARE                     6.2p            7.8p


Notes:  1     All figures are in respect of continuing operations.

        2     The Interim Dividend of 3.5p per share will be paid on 26 July,
              2002, to shareholders registered at the close of business on
              12 July, 2002.


By Order of The Board
G.J.CROCKER
Director and Company Secretary.


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