TIDMHVT
RNS Number : 8891S
Heavitree Brewery PLC
28 June 2018
The Heavitree Brewery PLC
Trood Lane
Matford
Exeter EX2 8YP
Date: 28 June 2018
Contact: Graham Crocker - Managing Director - 01392 217733
Nicola McLean - Company Secretary - 01392 217733
Patrick Castle /Anita Ghanekar - Shore Capital - 0207 408
4090
Following a meeting by a duly authorised committee of the Board
of Directors held today, 28 June 2018, the Directors announce the
interim results for the six months ended 30 April 2018.
Chairman's statement
Turnover for the period under review has increased by GBP47,000
(1.40%) against the corresponding period last year. However there
has been a 9.60% decrease in operating profit to GBP631,000 (2017:
GBP698,000) predominantly due to an increase in costs associated
with the Group's final salary Pension Scheme of GBP48,000 and a
cost of GBP20,000 caused by the write down of old inventory items
which have been moved from some of our houses over previous years
and are now being held in storage.
Results
The Group has returned an operating profit of GBP631,000. After
allowing for finance costs of GBP132,000 (2017: GBP140,000) which
include a GBP41,000 interest cost in respect of the IAS 19
calculation applied to the final salary Pension Scheme (2017:
GBP41,000) and a book profit mostly generated by the sale of four
properties (GBP830,000), the Group Profit before taxation is
GBP1,329,000 (2017: GBP558,000). This shows an increase of 138.17%
on the previous year.
Dividend
The Directors have resolved to pay an unchanged interim dividend
of 3.675p per Ordinary Share and 'A' Limited Voting Ordinary Share
(2017: 3.675p). The Dividend will be paid on 3 August 2018 to
shareholders on the Register at the close of business on 20 July
2018.
Property
The King of Prussia in Bovey Tracey completed on 27 November for
GBP275,000. We understand that the site will be converted into a
community facility incorporating a small cinema.
The sale of The King's Arms in Strete completed on 9 March for
GBP275,000. We have retained a small cottage with a garden, a
further small pocket of land and some parking on the site.
The sale of The Crown and Sceptre in Newton St.Cyres completed
on 23 April for GBP280,000.
The sale of the flats which we built in 2012 at the old
St.Loye's Hotel site completed on 26 April for GBP595,000.
At the time of writing, two unlicensed properties in Exeter and
another in the South Hams are being marketed for sale. One of the
Exeter properties is sold subject to contract. I hope to report
further on these at the year-end.
Prospects
The sales of The King of Prussia, The King's Arms and The Crown
and Sceptre, all of which had been closed for some time and had
been incurring various consequential costs, will have a positive
effect for the Group in terms of revenue. The proceeds from the
sales have also reduced our level of debt which the Board considers
to be a prudent goal in these uncertain times.
Trading has remained ahead of budget at the end of the first
half of the year. The trading effect of the FIFA World Cup looks
promising and, together with the prolonged period of favourable
weather which our region is currently enjoying, we believe that the
Company is well placed going into the second half of the year.
N H P TUCKER
Chairman
Group income statement (unaudited)
For the six months ended 30 April 2018
6 months 6 months Audited
to to 12 months
30 April 30 April to
2018 2017 31 October
2017
Note GBP' 000 GBP' 000 GBP' 000
Revenue 3,398 3,351 7,299
Change in stocks - - -
Other operating income 139 134 384
Purchase of inventories (1,342) (1,318) (2,968)
Staff costs (697) (625) (1,353)
Depreciation of property, plant and
equipment (115) (113) (248)
Other operating charges (752) (731) (1,336)
(2,767) (2,653) (5,521)
Group operating profit 631 698 1,778
Profit on sale of property, plant
and equipment 830 - 6
Movements in valuation of estate and - - -
related assets
Group profit before finance costs
and taxation 1,461 698 1,784
Finance income 2 3 7
Finance costs (93) (102) (182)
Other finance costs-pensions (41) (41) (55)
(132) (140) (230)
Profit before taxation 1,329 558 1,554
Tax expense (189) (159) (226)
Profit for the period 1,140 399 1,328
Earnings per share 2
- basic 23.4p 7.9p 27.0p
- diluted 23.4p 7.9p 27.0p
Group statement of comprehensive income (unaudited)
For the six months ended 30 April 2018
6 months 6 months Audited
to to 12months
30 April 30 April to
2018 2017 31 October
2017
GBP' 000 GBP' 000 GBP' 000
Profit for the period 1,140 399 1,328
Items that will not be reclassified
to profit or loss
Actuarial (losses)/gains on defined
benefit pension plans (254) (69) 428
Tax relating to items that will not
be reclassified 99 12 (74)
(155) (57) 354
Items that may be reclassified to
profit or loss
Fair value adjustment (5) 1 6
Exchange rate differences on translation
of subsidiary undertaking (6) - -
Tax relating to items that may be - - -
reclassified (11) 1 6
Other comprehensive income for the
year, net of tax 974 343 1,688
Total comprehensive income attributable
to:
Equity holders of the parent 974 343 1,688
Dividends
The Directors declare an interim dividend of 3.675p per share
(2017 - 3.675p) on the Ordinary and 'A' Limited Voting Ordinary
Shares. This dividend will be paid on 03 August 2018 to
shareholders on the register at 20 July 2018.
Group balance sheet (unaudited)
at 30 April 2018 30 April 30 April Audited
2018 2017 31 October
GBP' 000 GBP' 000 2017
GBP'000
Non-current assets
Property, plant and equipment 18,163 18,380 18,116
Financial assets 47 41 46
Deferred tax asset 230 284 221
18,440 18,705 18,383
Current assets
Trade and other receivables 1,861 1,750 1,696
Inventories 10 10 10
Cash and short-term deposits 113 62 56
1,984 1,822 1,762
Assets held for sale 328 552 890
Total assets 20,752 21,079 21,035
Current liabilities
Trade and other payables (747) (1,064) (871)
Financial liabilities (529) (2,267) (1,624)
Income tax payable (281) (223) (190)
(1,557) (3,554) (2,685)
Non-current liabilities
Other payables (319) (264) (256)
Financial liabilities (6,011) (6,011) (6,045)
Deferred tax liabilities (345) (335) (345)
Defined benefit pension plan (1,352) (1,667) (1,300)
(8,027) (8,277) (7,946)
Total liabilities (9,584) (11,831) (10,631)
Net assets 11,168 9,248 10,404
Capital and reserves
Equity share capital 264 264 264
Capital redemption reserve 673 673 673
Treasury shares (1,240) (1,212) (1,223)
Fair value adjustments reserve 22 17 27
Currency translation 11 22 17
Retained earnings 11,438 9,484 10,646
Total equity 11,168 9,248 10,404
Group statement of cash flows (unaudited)
for the six months ended 30 April 2018
6 months 6 months Audited
to to 12months
30 April 30 April to
2018 2017 31 October
2017
Operating activities GBP' 000 GBP' 000 GBP' 000
Profit for the period 1,140 399 1,328
Tax expense 189 159 151
Net finance costs 132 140 231
(Profit) on disposal of non-current
assets and assets held for sale (830) - (6)
Depreciation and impairment of property,
plant and equipment 115 130 248
Exchange gain on cash, liquid resources
and loan 5 - (3)
Difference between pension contributions
paid and recognised in the income
statement (240) (554) (438)
(Increase) in trade and other receivables (131) (165) (76)
(Decrease)/increase in trade and
other payables (60) 78 (170)
Cash generated from operations 320 187 1,265
Income taxes paid (8) - (110)
Interest paid (93) (102) (182)
Net cash inflow from operating activities 219 85 973
Investing activities
Interest received 2 3 6
Proceeds from sale of property, plant
and equipment and assets held for
sale 1,441 - 193
Payments to acquire property, plant
and equipment (249) (832) (1,117)
Net cash inflow from investing activities 1,194 (829) (918)
Financing activities
Preference dividend paid (1) (1) (1)
Equity dividends paid (211) (183) (333)
Consideration received by EBT on
sale of shares 53 44 49
Consideration paid by EBT on purchase
of shares (68) (15)
Capital element of finance lease
rental payments (7) (4) (21)
Net cash outflow from financing activities (234) (144) (321)
Increase in cash and cash equivalents (1,179) (888) (266)
Cash and cash equivalents at the
beginning of the period (1,536) (1,270) (1,270)
Cash and cash equivalents at the
period end (357) (2,158) (1,536)
Group reconciliation of movements in equity (unaudited)
6 months Equity Capital Fair Cashflow
to
30 April share redemption Treasury value Currency hedge Retained Total
2018
capital reserve shares adjustment Translation reserve earnings equity
GBP' GBP' 000 GBP' GBP' GBP' 000 GBP' GBP' GBP'
000 000 000 000 000 000
At 1November
2017 264 673 (1,223) 27 17 - 10,646 10,404
Profit for
the period - - - - - - 1,140 1,140
Other comprehensive
income for
the period,
net of income
tax - - - (5) (6) - (155) (166)
-------- ----------- --------- ----------- ------------ --------- --------- -------
Total comprehensive
income for
the period - - - (5) (6) - 985 974
-------- ----------- --------- ----------- ------------ --------- --------- -------
Consideration
received
by EBT on
sale of shares - - 53 - - - - 53
Consideration
paid by EBT
on purchase
of shares - - (68) - - - - (68)
Gain by EBT
on sale of
shares - - (2) - - - 2 -
Equity dividend
paid - - - - - - (195) (195)
At 30 April
2018 264 673 (1,240) 22 11 - 11,438 11,168
-------- ----------- --------- ----------- ------------ --------- --------- -------
Group reconciliation of movements in equity (unaudited) -
continued
6 months Equity Capital Fair Cashflow
to
30 April share redemption Treasury value Currency hedge Retained Total
2017
capital reserve shares adjustment Translation reserve earnings equity
GBP' GBP' 000 GBP' GBP' GBP' 000 GBP' GBP' GBP'
000 000 000 000 000 000
At 1November
2016 264 673 (1,254) 21 17 - 9,323 9,044
Profit for
the period - - - - - - 399 399
Other comprehensive
income for
the period,
net of income
tax - - - 1 - - (57) (56)
-------- ----------- ----------- ----------- ------------ --------- ---------- ---------
Total comprehensive
income for
the period - - - 1 - - 342 343
-------- ----------- ----------- ----------- ------------ --------- ---------- ---------
Consideration
received
by EBT on
sale of shares - - 44 - - - - 44
Consideration
paid by EBT
on purchase
of shares - - - - - - - -
Gain by EBT
on sale of
shares - - (2) - - - 2 -
Equity dividend
paid - - - - - - (183) (183)
-------- ----------- ----------- ----------- ------------ --------- ---------- ---------
At 30 April
2017 264 673 (1,212) 22 17 - 9,484 9,248
-------- ----------- ----------- ----------- ------------ --------- ---------- ---------
Group reconciliation of movements in equity (unaudited) -
continued
Equity Capital Fair Cash
share redemption Treasury value Currency flow Retained Total
12 months to capital reserve shares adjustment translation hedge earnings equity
31 GBP000 GBP000 GBP000 reserve GBP000 reserve GBP000 GBP000
October 2017 GBP000 GBP000
Audited
At 1 November
2016 264 673 (1,254) 21 17 - 9,323 9,044
Profit for the
year - - - - - - 1,328 1,328
Other
comprehensive
income for
the
year
net of income
tax - - - 6 - - 354 360
--------- ------------ ----------- ------------ -------------- --------- ----------- ---------
Total
comprehensive
income for the
year - - - 6 - - 1,682 1,688
--------- ------------ ----------- ------------ -------------- --------- ----------- ---------
Consideration
received by
EBT
on sale of
shares - - 49 - - - - 49
Consideration
paid by
EBT on
purchase
of shares - - (15) - - - - (15)
Gain by EBT on
sale of
shares - - (3) - - - 3 -
Equity
dividends
paid - - - - - - (362) (362)
--------- ------------ ----------- ------------ -------------- --------- ----------- ---------
At 31 October
2017 264 673 (1,223) 27 17 - 10,646 10,404
--------- ------------ ----------- ------------ -------------- --------- ----------- ---------
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 have been prepared in accordance with IAS34 "interim
financial reporting" and 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 2017. The accounting policies are drawn up in
accordance with International Accounting Standards (IAS) and
International Financial Reporting Standards (IFRS) as adopted by
the European Union.
These unaudited financial statements were approved and
authorised for issue by a duly appointed and authorised committee
of the Board of Directors on 28 June 2018.
2. Basic and diluted earnings per share
The calculation of basic earnings per ordinary share is based on
earnings of GBP1,140,000 (2017: GBP399,000), being profit after
taxation for the period, and on 4,876,995 (2017: 5,064,830) 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.
During the year the Group operated in one business
segment-leased estate.
Leased estate represents properties which are leased to tenants
to operate independently from the Group.
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 2018 has been posted to
shareholders today and will be available on our website at
www.heavitreebrewery.co.uk.
Ends.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR SESSAAFASEFM
(END) Dow Jones Newswires
June 28, 2018 11:00 ET (15:00 GMT)
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