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Heavitree Brewery PLC  -  HVT   

Half-year Report

Released 14:00 29-Jun-2017

RNS Number : 5687J
Heavitree Brewery PLC
29 June 2017
 

The Heavitree Brewery PLC

Trood Lane

Matford

Exeter EX2 8YP

 

Date:                29 June 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 meeting by a duly authorised committee of the Board of Directors held today, 29 June 2017, the Directors announce the interim results for the six months ended 30 April 2017.

 

Chairman's statement

 

The Group has increased operating profit against the corresponding period last year by 10.79% to £698,000.  This has been achieved by increases in all areas of contribution apart from machine income. 

 

Results

 

The Group has returned an operating profit of £698,000 (2016: £630,000) which reflects a 10.79% increase against the same period in the previous year.  After allowing for finance costs of £140,000 (2016: £124,000), which include a £41,000 interest cost in respect of the IAS 19 calculation applied to the final salary Pension Scheme (2016: £28,000), the Group Profit before taxation is £558,000 (2016: £505,000).  This shows a 10.49% increase on the previous year.

 

Dividend

 

The Directors have resolved to pay an interim dividend of 3.675p per Ordinary Share and 'A' Limited voting Ordinary Share (2016: 3.675p).  The dividend will be paid on 4 August 2017 to shareholders on the Register at the close of business on 21 July 2017.

 

Property

 

There were no property sales during the period under review but three houses were being actively marketed for sale.  Those houses are the Crown and Sceptre in Newton St.Cyres, the Bell Inn in Cullompton and the Pen and Quill in Taunton. 

 

The Pen and Quill has sold since the closure of the half year period and a book loss has been mostly absorbed by the impairment that was shown in last year's accounts.  Also, since the end of the period under review, The King's Arms in Strete has been added to the list of those pubs being marketed for sale.

 

The Dartmoor Halfway in Bickington opened in May after a total refurbishment completed in partnership with Buccaneer Inns who have taken the tenancy of this exciting new pub. Trading has started well and the Directors wish Buccaneer Inns and the management team at the pub every success in the future.

Prospects

 

I am pleased to be reporting these good numbers at the half-year.  The quality of our houses and operators means that we are well set up to take advantage of good trading conditions in the second half of the financial year but also to remain resilient to the effects of the immense uncertainties that 2017 continues to deliver. 

 

 

N H P TUCKER

Chairman

 

 

Group income statement (unaudited)

For the six months ended 30 April 2017

 

 

 

6 months

to

30 April
2017

 

6 months

to

30 April

2016

Audited

12 months

to

31 October

2016

 

Note

£' 000

£' 000

£' 000

Revenue

 

    3,351

        3,312

          7,155

Change in stocks

 

-

-

-

Other operating income

 

134

117

241

Purchase of inventories

 

(1,318)

(1,322)

(2,955)

Staff costs

 

(625)

(600)

(1,301)

Depreciation of property, plant and equipment

 

(113)

(103)

(208)

Other operating charges

 

          (731)

       (774)

       (1,512)

 

 

      (2,653)

     (2,682)

       (5,735)

Group operating profit

 

698

630

1,420

(Loss)/profit on sale of property, plant and equipment

 

              -

              (1)

           585

Movements in valuation of estate and related assets

 

                 -

              -

          (163)

Group profit before finance costs and taxation

 

698

629

1,842

Finance income

 

3

8

6

Finance costs

 

(102)

(104)

(152)

Other finance costs-pensions

 

            (41)

          (28)

            (43)

 

 

       (140)

        (124)

          (189)

Profit before taxation

 

558

505

1,653

Tax expense

 

         (159)

        (128)

          (288)

Profit for the period

 

             399

           377

          1,365

Earnings per share

- basic
- diluted

2

 

7.9p
7.9p

 

7.7p
7.7p

 

28.0p
28.0p

 

 

 

 

Group statement of comprehensive income (unaudited)

For the six months ended 30 April 2017

 

 

 

6 months

to

30 April
2017

 

6 months

to

30 April

2016

    Audited

   12months

    to

 31 October

      2016

 

 

£' 000

  £' 000

       £' 000

Profit for the period

 

            399

           377

          1,365

Items that will not be reclassified to profit or loss

Actuarial (losses)/gains on defined benefit pension plans

Tax relating to items that will not be reclassified

 

 

 

(69)

             12

   (57) 

 

 

350

             (70)

280

 

(1,195)

             203

(992)

 

Items that may be reclassified to profit or loss

Fair value adjustment

Exchange rate differences on translation of subsidiary undertaking

Tax relating to items that may be reclassified

 

 

 

 

1

 

-

                  -

1

 

3

 

(3)

                  -

-

 

7

 

10

                  -

17

 

 

 

 

 

Other comprehensive income for the year, net of tax

 

            343

             657

             390

Total comprehensive income attributable to:

Equity holders of the parent

 

 

             343

 

             657

 

             390

 

 

 

 

 

 

 

 

 

Dividends

The Directors declare an interim dividend of 3.675p per share (2016 - 3.675p) on the Ordinary and 'A' Limited Voting Ordinary Shares. This dividend will be paid on 04 August 2017 to shareholders on the register at 21 July 2017.

 

 

 

Group balance sheet (unaudited)

at 30 April 2017

 

 

30 April

2017

£' 000

 

30 April

2016

£' 000

Audited

31 October 2016

£'000

Non-current assets

 

 

 

 

Property, plant and equipment

 

 

18,380

 

16,950

18,012

Financial assets

 

41

37

40

 

Deferred tax asset

 

       284

              100

             359

 

 

       18,705

          17,087

        18,411

Current assets

 

 

 

 

Trade and other receivables

 

1,750

1,312

1,585

Inventories

 

10

10

10

Cash and short-term deposits

 

             62

               93

               57

 

 

         1,822

            1,415

          1,652

Assets held for sale

 

552

1,408

 

219

Total assets

 

      21,079

          19,910

        20,282

Current liabilities

 

 

 

 

Trade and other payables

 

(1,064)

(821)

(980)

Financial liabilities

 

(2,267)

(2,349)

(1,332)

Income tax payable

 

         (223)

            (106)

           (149)

 

 

      (3,554)

         (3,276)

        (2,461)

Non-current liabilities

 

 

 

 

Other payables

 

(264)

(275)

(274)

Financial liabilities

 

(6,011)

(6,011)

(6,057)

Deferred tax liabilities

 

(335)

(305)

(335)

Defined benefit pension plan

 

      (1,667)

            (500)

        (2,111)

 

 

      (8,277)

         (7,091)

        (8,777)

Total liabilities

 

    (11,831)

       (10,367)

      (11,238)

Net assets

 

         9,248

            9,543

          9,044

Capital and reserves

 

 

 

 

Equity share capital

 

264

264

264

Capital redemption reserve

 

673

673

673

Treasury shares

 

(1,212)

(1,201)

(1,254)

Fair value adjustments reserve

 

17

17

21

Currency translation

 

22

4

17

Retained earnings

 

         9,484

            9,786

          9,323

Total equity

 

         9,248

            9,543

          9,044

 

 

 

 

 

 

 

Group statement of cash flows (unaudited)

for the six months ended 30 April 2017

                                                           

 

 

 

6 months

to

30 April
2017

 

6 months

to

30 April

2016

Audited

12months

 to

31 October

2016

Operating activities

 

£' 000

£' 000

£' 000

Profit for the period

 

399

377

1,365

Tax expense

 

159

128

288

Net finance costs

 

140

124

189

Loss/(profit) on disposal of non-current assets and assets held for sale

 

 

-

 

1

 

(585)

Depreciation and impairment of property, plant and equipment

 

130

103

371

Exchange gain on cash, liquid resources and loan

 

-

-

4

Difference between pension contributions paid and recognised in the income statement

 

 

(554)

 

(591)

 

(538)

Decrease/(increase) in trade and other receivables

 

(165)

62

(226)

Increase/(decrease) in trade and other payables

 

          78

           79

            238

Cash generated from operations

 

187

283

1,106

Income taxes paid

 

-  

            (6)

         (79) 

Interest paid

 

 (102)

        (104)

          (152)

Net cash inflow from operating activities

 

           85

          173

             875

 

Investing activities

 

 

 

 

Interest received

 

3

8

6

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

 

-

4

1,205

Payments to acquire property, plant and equipment

 

   (832)

       (594)

     (1,275)

Net cash outflow from investing activities

 

       (829)

       (582)

          (64) 

Financing activities

 

 

 

 

Preference dividend paid

 

(1)

(1)

(1)

Equity dividends paid

 

(183)

(179)

(358)

Consideration received by EBT on sale of shares

 

44

40

40

Consideration paid by EBT on purchase of shares

Capital element of finance lease rental payments                                             

 

-

              (4)

(5)

                -

(58)

           (2)

 

 

 

 

 

Net cash outflow from financing activities

 

        (144) 

         (145)

        (379)

 

 

 

 

 

Decrease in cash and cash equivalents

 

(888)

(554)

432

Cash and cash equivalents at the beginning of the period

 

 (1,270) 

      (1,702)

      (1,702)

Cash and cash equivalents at the period end.

 

(2,158)

       (2,256)

 (1,270)

 

 

Group reconciliation of movements in equity (unaudited)

 

 

 

6 months to

Equity

Capital

 

Fair

 

Cashflow

 

 

30 April 2017

share

redemption

Treasury

value

Currency

hedge

Retained

Total

 

capital

reserve

shares

adjustment

Translation

reserve

earnings

equity

 

£' 000

£' 000

 £' 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

 

6 months to

Equity

Capital

 

Fair

 

Cashflow

 

 

30 April 2016

share

redemption

Treasury

value

Currency

hedge

Retained

Total

 

capital

reserve

shares

adjustment

Translation

reserve

earnings

equity

 

£' 000

£' 000

 £' 000

£' 000

£' 000

£' 000

£' 000

£' 000

 

 

 

 

 

 

 

 

 

At 1November  2015

264

673

(1,235)

14

      7

-

9,307

9,030

Profit for the period

-

-

          -

         -

        -

-

      377

      377

Other comprehensive income for the period, net of income tax

-

-

          -

  3    

     ( 3)

 -

      280

     280

Total     comprehensive income for the period

-

-

-

3

(3)

    -

657

657

Consideration

Received by EBT on sale of shares    

 

 

 

-

 

 

 

-

 

 

 

40

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

40

Consideration paid by EBT on purchase of shares

-

-

(5)

-

-

-

-

(5)

Gain by EBT on sale  of shares

-

-

(1)

-

-

-

1

-

 

 

 

 

 

 

 

 

 

Equity dividend  paid

-

-

-

-

-

-

(179)

(179)

 

 

 

 

 

 

 

 

 

At 30 April 2016

264

673

(1,201)

17

4

-

9,786

9,543

 

 

 

 

 

 

 

 

 

 

 

 

Group reconciliation of movements in equity (unaudited) - continued

 

 

 

 

12 months to 31 October 2016

Audited

 

 

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 2016

264

673

(1,254)

21

17

-

9,323

9,044

                                                               

 

 

 

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 2016. 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 29 June 2017.

 

 

2.  Basic and diluted earnings per share

The calculation of basic earnings per ordinary share is based on earnings of £399,000 (2016: £377,000), being profit after taxation for the period, and on 5,064,830 (2016: 4,872,387) 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 2017 has been posted to shareholders today and will be available on our website at www.heavitreebrewery.co.uk.

 

Ends.


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Half-year Report - RNS