Regulatory Story
Go to market news section View chart   Print
RNS
Heavitree Brewery PLC  -  HVT   

Preliminary Statement of Results

Released 16:00 14-Feb-2017

RNS Number : 8207W
Heavitree Brewery PLC
14 February 2017
 

The Heavitree Brewery PLC

Trood Lane

 Matford

 Exeter EX2 8YP

 

Date:                14 February 2017

 

Contact:           Graham Crocker - Managing Director - 01392 217733

Nicola McLean - Company Secretary - 01392 217733

Patrick Castle /Anita Ghanekar - Shore Capital - 0207 408 4052

 

 

 

Following a Board Meeting held today, 14 February 2017, the Directors announce the preliminary statement of results for the year ended 31 October 2016.

 

ISIN: GB0004182720 for 'A' Limited Voting Ordinary Shares

ISIN: GB0004182506 for Ordinary Shares

 

 

Chairman's statement

 

Operating profit for the year under review has increased by 0.56% (£8,000) after a 1.03% (£73,000) increase in turnover on the previous year.  There was an impairment cost of £163,000 relating to the Pen and Quill, and this was further to the £47,000 impairment for the same house which I reported last year. 

Results

Group Turnover increased by £73,000 to £7,155,000. Group Operating Profit increased by £8,000 to £1,420,000.

Heavitree Inns remained dormant throughout the year.

Heavitree Inc. generated an operating loss of £16,000 (2015 - loss of £13,000).

Key Performance Indicators

Adjusted Operating Profit before Taxation of £1,420,000 was up 0.56% on last year.

Interest costs were covered 9.72 times.

Dividend

The Directors recommend a 2.04% increase in the final dividend to 3.75p per Ordinary and 'A' Limited Voting Ordinary Share (2015 - 3.675p) making a total for the year of 7.425p.  The dividend will be paid on 21 April 2017, subject to shareholder approval at the Annual General Meeting on 13 April 2017, to those shareholders on the Register at 24 March 2017.

The Directors decision to recommend an increase in the dividend reflects another steady performance for the Company.  Also, it is an opportunity to return some capital to shareholders following the disposals of non-core houses during the year.

Sale of Property

I reported last year that the Hole in the Wall and the Exeter Inn, both in Dawlish, were being marketed for sale.  These properties were sold in the year under review realising a book profit of £28,000 and £171,000 respectively.  We also sold the Carpenters Arms in Ilsington, realising a profit of £278,000, and one of the three newly built houses on the old Country House Inn site in Exeter, which realised a profit of £93,000.  The Pen and Quill in Taunton and the Bell Inn in Cullompton are currently being marketed for sale.

 

Capital Investments

A redevelopment of the Dolphin in St. Marychurch and significant refurbishments of the Marshals in Barnstaple and the Atmospheric Railway in Starcross were undertaken during the year, although the latter was not completed until soon after the year under review closed.  These were the major capital works carried out during the year and all three houses are trading well after reopening.  Many further smaller investments were carried out across different houses in upgrades to kitchens, lavatories or cellars, new patio areas and the normal annual programme of external decorations and changes to signage.  The redevelopment of the Dartmoor Halfway in Bickington is well under way and it is hoped that this exciting new pub will be opened in April of this year.

 

Website

At the time of writing, our new website is having the finishing touches added to it before it goes live.  Designed by AB in Exeter, the new site and our improved web presence should help in attracting strong operators to our business.

Pension Scheme

The Company continues to meet its funding obligations to its closed final salary Pension Scheme.  The next triennial valuation fell due on 1 January 2017 and is anticipated to be completed in early 2018.

Repurchase of shares

The Company did not repurchase any of its own shares during the year under review but the Directors intend to seek shareholder approval at the forthcoming Annual General Meeting for the continuing authority to do so.

Personnel

Sadly, the year was tainted by the very sad loss of Geoff Evans who died in September 2016.  Geoff retired from the Company in April 2001 having joined in April 1968.  He was a knowledgeable, well-respected member of our team, much liked by his colleagues from this Office and in particular, the many successful tenants who were chosen by him to operate one of our houses.  His cheerful demeanour was infectious, even when he was given the unenviable task of showing the present Chairman the ropes when he first joined the Company.  His involvement in the trade and with Devon County Cricket meant that he touched the lives of many and he will be sorely missed.

Outlook

Our pubs and their operators and our staff at Head Office have again combined to produce a good result for the Company against a backdrop of all sorts of peculiarities in our ever-changing world.  The standards of presentation and operation in our houses remains very high and, together with the income streams generated from the reopening of newly refurbished houses, this should stand us in good stead for the coming year.

 

 

 

 

 

 

N H P TUCKER
Chairman

14 February 2017

 

 

 

 

 

 

 

 

 

 

Group income statement

for the year ended 31 October 2016

 

 

 

 

 

Notes

 

Total

2016

£000

 

Total

2015

£000

Revenue

 

7,155

7,082

Change in stocks

 

-

-

Other operating income

 

241

229

Purchase of inventories

 

(2,955)

(2,986)

Staff costs

 

(1,301)

(1,172)

Depreciation of property, plant and equipment

 

 

(208)

 

(218)

Other operating charges

 

(1,512)

(1,523)

 

 

(5,735)

(5,670)

Group operating profit

 

1,420

1,412

Profit on sale of property plant and equipment

 

585

5

 

Movements in valuation of estate and related assets

 

   (163)

(47)

Group profit before finance costs and taxation

 

 

1,842

 

1,370

Finance income

 

6

8

Finance costs

 

(152)

(170)

Other finance costs - pensions

 

(43)

(35)

 

 

(189)

(197)

 

 

 

 

Profit before taxation

 

1,653

1,173

Tax expense

 

(288)

(258)

 

 

 

 

Profit  for the year attributable to equity holders of the parent

 

 

1,365

 

915

 

 

 

 

Basic earnings per share

2

28.0p

18.8p

 

 

 

 

Diluted earnings per share

2

28.0p

18.8p

 

All amounts in 2016 and 2015 relate to continuing operations.

 

 

Group statement of comprehensive income

for the year ended 31 October 2016

 

2016

£000

2015

£000

Profit for the year

 

1,365

915

Items that will not be reclassified to profit or loss

 

 

Actuarial losses on defined benefit pension plans

(1,195)

(740)

Tax relating to items that will not be reclassified

203

147

 

(992)

(593)

 

Items that may be reclassified to profit or loss

 

 

Cash flow hedges

-

24

Fair value adjustments

7

(2)

Exchange rate differences on translation of subsidiary undertaking

10

-

Tax relating to items that may be reclassified

-

(4)

 

17

18

 

 

 

Other comprehensive income for the year, net of tax

390

340

Total comprehensive income attributable to:

Equity holders of parent

390

340

 

 

 

 

 

Group balance sheet

at 31 October 2016

 

 

 

2016

£000

 

 

2015

£000

Non-current assets

 

 

 

 

Property, plant and equipment

 

16,700

 

16,779

Investment property

 

1,312

 

463

 

 

18,012

 

17,242

Financial assets

 

40

 

34

Deferred tax asset

 

359

 

282

 

 

18,411

 

17,558

Current assets

 

 

 

 

Inventories

 

10

 

10

Trade and other receivables

 

1,585

 

1,359

Cash and cash equivalents

 

57

 

51

 

 

1,652

 

1,420

Assets held for sale

 

219

 

645

Total assets

 

20,282

 

19,623

Current liabilities

 

 

 

 

Trade and other payables

 

(980)

 

(759)

Financial liabilities

 

(1,332)

 

(1,753)

Income tax payable

 

(149)

 

(96)

 

 

(2,461)

 

(2,608)

Non-current liabilities

 

 

 

 

Other payables

 

(274)

 

(258)

Financial liabilities

 

(6,057)

 

(6,011)

Deferred tax liabilities

 

(335)

 

(305)

Defined benefit pension plan deficit

 

(2,111)

 

(1,411)

 

 

(8,777)

 

(7,985)

Total liabilities

 

(11,238)

 

(10,593)

Net assets

 

9,044

 

9,030

Capital and reserves

 

 

 

 

Equity share capital

 

264

 

264

Capital redemption reserve

 

673

 

673

Treasury shares

 

(1,254)

 

(1,235)

Fair value adjustments reserve

 

21

 

14

Currency translation

 

17

 

7

Retained earnings

 

9,323

 

9,307

Total equity

 

9,044

 

9,030

 

Group statement of cash flows

for the year ended 31 October 2016

 

 

 

 

 

 

 

2016

£000

 

 

 

2015

£000

Operating activities

 

 

 

 

Profit for the year

 

1,365

 

915

Tax expense

 

288

 

258

Net finance costs

 

189

 

197

Profit on disposal of non-current assets and assets held for sale

 

(585)

 

(5)

Depreciation and impairment of property, plant and equipment

 

371

 

265

Difference between pension contributions paid and amounts

 

4

 

-

   recognised in the income statement

 

(538)

 

(522)

Increase in trade and other receivables

 

(226)

 

(114)

Increase/(decrease) in trade and other payables

 

238

 

(171)

 

 

 

 

 

Cash generated from operations

 

1,106

 

823

Income taxes paid

 

  (79)

 

  (143)

Interest paid

 

  (152)

 

  (170)

 

 

 

 

 

Net cash flow from operating activities

 

875

 

510

 

 

 

 

 

Investing activities

 

 

 

 

Interest received

 

6

 

8

Proceeds from sale of property, plant and equipment and assets held for sale

 

 

1,205

 

 

20

Payments to acquire property, plant and equipment

 

(1,275)

 

(3,124)

 

 

 

 

 

Net cash outflow from investing activities

 

(64)

 

(3,096)

 

 

 

 

 

Financing activities

 

 

 

 

Preference dividend paid

 

(1)

 

(1)

Equity dividends paid

 

(358)

 

(358)

Consideration received by EBT on sale of shares

 

40

 

30

Consideration paid by EBT on purchase of shares

Capital element of finance lease rental payments

 

(58)

(2)

 

(65)

-

New long-term borrowings

 

-

 

1,250

 

 

 

 

 

 

Net cash flow from financing activities

 

(379)

 

856

 

 

 

 

 

Increase/(decrease) in cash and cash equivalents

 

432

 

(1,730)

Cash and cash equivalents at the beginning of the year

 

(1,702)

 

28

 

 

 

 

 

Cash and cash equivalents at the year end

 

(1,270)

 

(1,702)

 

 

 

Group statement of changes in equity

for the year ended 31 October 2016

 

Equity share capital

£000

Capital redemption reserve

£000

 

Treasury shares

£000

Fair value adjustment reserve

£000

 

Currency translation

£000

Cash flow hedge reserve

£000

 

Retained earnings

£000

 

Total equity

£000

At 1 November 2014

264

673

(1,202)

16

7

(20)

9,345

9,083

 

 

 

 

 

 

 

 

 

Profit for the year

-

-

-

-

-

-

915

915

Other comprehensive

 

 

 

 

 

 

 

 

income for the year

net of income tax

-

-

-

(2)

-

20

(593)

(575)

Total comprehensive

 

 

 

 

 

 

 

 

income for the year

-

-

-

(2)

-

20

322

340

Consideration received

 

 

 

 

 

 

 

 

 by EBT on sale of

shares

 

-

 

-

 

30

 

-

 

-

 

-

 

-

 

30

Consideration paid by

 

 

 

 

 

 

 

 

EBT on purchase of shares        

-

-

(65)

-

-

-

-

(65)

Loss by EBT on sale

 

 

 

 

 

 

 

 

 of shares

-

-

2

-

-

-

(2)

-

Equity dividends paid

-

-

-

-

-

-

(358)

(358)

At 31 October 2015

264

673

(1,235)

14

7

-

9,307

9,030

 

 

 

Equity share capital

£000

Capital redemption reserve

£000

 

Treasury shares

£000

Fair value adjustment reserve

£000

 

Currency translation

£000

Cash flow hedge reserve

£000

 

Retained earnings

£000

 

Total equity

£000

At 1 November 2015

264

673

(1,235)

14

7

-

9,307

9,030

 

 

 

 

 

 

 

 

 

Profit for the year

-

-

-

-

-

-

1,365

1,365

Other comprehensive

 

 

 

 

 

 

 

 

income for the year

net of income tax

-

-

-

7

10

-

(992)

(975)

Total comprehensive

 

 

 

 

 

 

 

 

income for the year

-

-

-

7

10

-

373

390

Consideration received

 

 

 

 

 

 

 

 

 by EBT on sale of

shares

 

-

 

-

 

40

 

-

 

-

 

-

 

-

 

40

Consideration paid by

 

 

 

 

 

 

 

 

EBT on purchase of shares        

-

-

(58)

-

-

-

-

(58)

Gain by EBT on sale

 

 

 

 

 

 

 

 

 of shares

-

-

(1)

-

-

-

1

-

Equity dividends paid

-

-

-

-

-

-

(358)

(358)

At 31 October 2015

264

673

(1,254)

21

17

-

9,323

9,044

                                                               

 

 

 

Equity share capital

The balance classified as share capital includes the total net proceeds (nominal amount only) arising or deemed to arise on the issue of the Company's equity share capital, comprising Ordinary Shares of 5p each and 'A' Limited Voting Ordinary Shares of 5p each.

Capital redemption reserve

The capital redemption reserve arises on the re-purchase and cancellation by the Company of 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 Benefits Trust and Employee Share Option Scheme ('EBT').

At 31 October 2016 the Group held 142,082 Ordinary Shares and 268,652 'A' Limited Voting Ordinary Shares (2015: 139,102 Ordinary Shares and 266,676 'A' Limited Voting Ordinary Shares) of its own shares at an average cost of £3.05 (2015: £2.71). The market value of these shares as at 31 October 2016 was £1,192,172 (2015: £1,247,421).

Fair value adjustments reserve

The fair value adjustments reserve is used to record differences in the market value of the available-for-sale investment year on year.

Foreign currency translation reserve

The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries.

 

Notes to the preliminary announcement

 

1.  Basis of preparation

 

These figures do not constitute full accounts within the meaning of Section 396 of the Companies Act 2006. They have been extracted from the statutory financial statements for the year ended 31 October 2016. The statutory financial statements have not yet been delivered to the Registrar of Companies. 

The financial information is this statement has been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the European Union.  The accounting policies have been consistently applied and are described in full in the statutory financial statements for the year ended 31 October 2016, which are expected to be mailed to shareholders on 10 March 2017.  The financial statements will also be available on the Group's website. www.heavitreebrewery.co.uk.

The Directors are of the opinion that the Group has adequate resources to continue in operational existence for the foreseeable future, and continue to adopt the going concern basis in preparing the financial statements.

 

 2.  Earnings per share

Basic earnings per share amounts are calculated by dividing profit for the year attributable to ordinary equity holders of the parent by the weighted average number of Ordinary shares and 'A' Limited Voting Ordinary shares outstanding during the year.

The following reflects the income and shares data used in the basic and diluted earnings per share

 

 

 

 

 

 

Computation:

 

 

2016

£000

2015

£000

Profit for the year

1,365

915

 

 

 

 

2016

No.

(000)

2015

No.

(000)

Basic weighted average number of shares (excluding treasury shares)

4,879

4,874

 

 

There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of completion of these financial statements.

 

3. Dividends paid and proposed

 

 

2016

£000

2015

£000

Declared and paid during the year:

 

 

Equity dividends on ordinary shares:

 

 

   Final dividend for 2015: 3.675p (2014: 3.675p)

194

194

   First dividend for 2016: 3.675p (2015: 3.675p)

194

194

   Less dividend on shares held within employee share schemes

(30)

(30)

 

 

 

Dividends paid

358

358

 

 

 

Proposed for approval at AGM

 

 

(not recognised as a liability as at 31 October)

 

 

 

 

 

   Final dividend for 2016: 3.75p (2015: 3.675p)

   Cumulative preference dividends

198

1

194

1

 

 

 

4.  Segment information

 Primary reporting format - business segments

 

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, under tied tenancies.

 

 

Secondary reporting format - geographical segments

 

The following tables present revenue, expenditure and certain asset information regarding the Group's geographical segments for the years ended 31 October 2016 and 2015. Revenue is based on the geographical location of customers and assets are based on the geographical location of the asset.

Segment information

 

 

 

Year ended 31 October 2016

UK

£000

United States

£000

Total

£000

Revenue

 

 

 

Sales to external customers

7,155

-

7,155

 

 

 

 

 

 

 

 

Other segment information

 

 

 

Segment assets

20,249

33

20,282

 

Total Assets

20,249

33

20,282

Capital expenditure

 

 

 

Property, plant and equipment

1,275

-

1,275

 

 

 

 

Year ended 31 October 2015

UK

£000

United States

£000

Total

£000

Revenue

 

 

 

Sales to external customers

7,082

-

7,082

 

 

 

 

Other segment information

 

 

 

Segment assets

 

 

 

 

19,598

25

19,623

 

Total Assets

19,598

25

19,623

Capital expenditure

 

 

 

Property, plant and equipment

3,124

-

3,124

 

 

 

 

 

 

 

 

5. General information

The 2016 Annual Report and Financial Statements will be published and posted to shareholders on 10 March 2017. Further copies may be obtained by contacting the Company Secretary at The Heavitree Brewery PLC, Trood Lane, Matford, Exeter EX2 8YP. The 2016 Annual Report and Financial Statements will also be available on the Company's website at http://www.heavitreebrewery.co.uk/financial/

 

 

The Annual General Meeting will be held at the Registered Office on 13 April 2017 at 11.30am.

 

 

 

Ends. 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
NOREAPALFSLXEEF
Close


London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.

 


Preliminary Statement of Results - RNS