TIDMHVT
RNS Number : 1734B
Heavitree Brewery PLC
15 February 2011
The Heavitree Brewery PLC
Trood Lane
Matford
Exeter EX2 8YP
Date: 15 February 2011
Contact: Graham Crocker - Managing Director - 01392 217733
Rod Glanville - Director and Company Secretary - 01392
217733
Pascal Keane - Shore Capital - 0207 408 4090
Following a Board Meeting held today, 15 February 2011, the
Directors announce the preliminary statement of results for the
year ended 31 October 2010.
ISIN: GB0004182720 for 'A' Limited Voting Ordinary Shares
ISIN: GB0004182506 for Ordinary Shares
Chairman's statement
Turnover has dropped considerably against the previous year but
this is as a direct result of the cessation in turnover from retail
sales in 2009 from the last of the Managed Houses before they were
returned to tenancy. In 2010 turnover arose solely from the
operation of a tenanted and leased estate. It is very pleasing to
be able to report a substantial increase in operating profit for
the Group.
Results
Turnover for the Group decreased against last year by 19.78% to
GBP7,388 000 (2009: GBP9,210,000) but generated an increased Group
Operating Profit of GBP1,427,000 (2009: GBP1,046,000) after
consolidation adjustments.
Heavitree Inc. generated an Operating Loss of GBP15,000 (2009:
Loss of GBP13,000).
Heavitree Inns ceased trading in the previous year so has been
dormant throughout the period under review (2009: Loss of
GBP279,000).
Group Profit before Taxation decreased by GBP28,000 (2.23%) to
GBP1,225 000. However, it should be remembered that last year's
figure included both a profit of GBP781,000 on the disposal of
assets (2010: GBP32,000) as well as costs of GBP370,000 arising
from the restructure and refinancing of the Group (2010:
GBPnil)
Key Performance Indicators
-- Adjusted Operating Profit before Taxation of GBP1,427,000 was
GBP102 000 (7.7%) ahead of last year.
-- Interest Costs were covered 13.46 times.
Dividend
The Directors recommend a final dividend of 3.5p per Ordinary
and 'A' Limited Voting Ordinary Share (2009: 3.5p) making an
overall total for the year of 7p, which is unchanged from last
year. The dividend will be paid on 20 April 2011, subject to
shareholder approval at the Annual General Meeting on 15 April 2011
to those shareholders on the Register at 18 March 2011.
Capital Investments
An extension at The Cricket Inn at Beesands to create a larger
dining area and four further letting bedrooms was completed in May
2010.
Pension Scheme
The Company continues to meet its funding obligations to its
closed final salary Pension Scheme. Following completion, in
September 2009, of the triennial actuarial valuation of the Scheme
as at 1 January 2008, an annualised deficit correction payment was
agreed, with the last payment being due in February 2018.
The next Scheme triennial valuation is as at 1 January 2011.
This should be completed by the end of the year.
Repurchase of Shares
The Company did not purchase any of its own shares during the
year under review, but the Directors intend to seek shareholder
approval at the forthcoming AGM for the continuing authority to do
so.
Outlook
We have continued to support our tenants and leaseholders during
the present difficult trading environment. This we shall continue
to do in the year ahead. The increase in the rate of VAT in
January, the promise of another Excise Duty increase, wholesale
price increases and the treacherous weather conditions at the start
of the new financial year have applied further pressure on all
pubs. I am most grateful for the performance of both our operators
and our head office staff whose skills and hard work have combined
to produce this year's pleasing set of results. In the present
climate it will be vital to continue with a similar focus.
N H P TUCKER
Chairman
Group income statement
for the year ended 31 October 2010
Discontinued Continuing
Total Operations Operations Total
2010 2009 2009 2009
Notes GBP000 GBP000 GBP000 GBP000
Revenue 7,388 2,152 7,058 9,210
-------- ------------- ------------ --------
Change in stocks (9) (144) - (144)
Other operating income 91 - 83 83
Purchase of inventories (3,141) (743) (2,899) (3,642)
Staff costs (1,197) (766) (1,234) (2,000)
Depreciation of property,
plant and equipment (272) (100) (352) (452)
Other operating charges (1,433) (678) (1,331) (2,009)
-------- ------------- ------------ --------
(5,961) (2,431) (5,733) (8,164)
-------- ------------- ------------ --------
Group operating
profit/(loss) 1,427 (279) 1,325 1,046
Profit/(loss) on disposal
of non-current assets
and assets held for
sale 32 (96) 877 781
Restructuring and finance
costs - (103) (267) (370)
-------- ------------- ------------ --------
Group profit/(loss)
before finance costs
and taxation 1,459 (478) 1,935 1,457
Finance income 35 - 26 26
Finance costs (141) - (153) (153)
Other finance costs
- pensions (128) - (77) (77)
-------- ------------- ------------ --------
(234) - (204) (204)
Profit/(loss) before
taxation 1,225 (478) 1,731 1,253
Tax (expense)/credit (368) 33 (175) (142)
Profit/(loss) for the
year attributable to
equity holders of the
parent 857 (445) 1,556 1,111
-------- ------------- ------------ --------
Basic earnings per 2 16.7p 21.7p
share
-------- ------------- ------------ --------
Diluted earnings 2 16.7p 21.7p
per share
-------- ------------- ------------ --------
All amounts in 2010 relate to continuing operations.
Group statement of comprehensive income
for the year ended 31 October 2010
2010 2009
GBP000 GBP000
Income and expense recognised directly
in equity
Actuarial losses on defined benefit
pension plans (93) (1,456)
Tax credit on items taken directly
to or transferred from equity 26 410
Exchange difference on retranslation
of subsidiary 3 -
Fair value adjustment - (8)
-------- --------
Net expense recognised directly in
equity (64) (1,054)
Profit for the year 857 1,111
-------- --------
Total recognised income and expense 793 57
for the year 793 57
Attributable to:
Equity holders of the parent
-------- --------
Group balance sheet
at 31 October 2010
2010 2009
GBP000 GBP000
Non-current assets
Property, plant and equipment 14,070 13,683
Financial assets 50 50
Deferred tax asset 505 598
-------- --------
14,625 14,331
-------- --------
Current assets
Inventories 10 19
Trade and other receivables 1,444 1,668
Cash and cash equivalents 216 521
-------- --------
1,670 2,208
-------- --------
Total assets 16,295 16,539
-------- --------
Current liabilities
Trade and other payables (709) (915)
Financial liabilities (558) -
Income tax payable (248) (77)
-------- --------
(1,515) (992)
-------- --------
Non-current liabilities
Other payables (319) (272)
Financial liabilities (4,011) (5,011)
Deferred tax liabilities (265) (261)
Defined benefit pension plan deficit (1,802) (2,088)
-------- --------
(6,397) (7,632)
-------- --------
Total liabilities (7,912) (8,624)
-------- --------
Net assets 8,383 7,915
-------- --------
Capital and reserves
Equity share capital 264 264
Capital redemption reserve 673 673
Treasury shares (826) (994)
Fair value adjustments reserve 30 30
Currency translation 6 3
Retained earnings 8,236 7,939
-------- --------
Total equity 8,383 7,915
-------- --------
Group statement of cash flows
for the year ended 31 October 2010
2010 2009
Notes GBP000 GBP000
Operating activities
Profit for the year 857 1,111
Tax 368 142
Net finance costs 234 204
Profit on disposal of non current assets
and assets held for sale (32) (781)
Depreciation and impairment of property,
plant and equipment 272 452
Share-based payments 11 13
Difference between pension contributions
paid and amounts
recognised in the income statement (507) (450)
Decrease in inventories 9 144
Decrease in trade and other receivables 224 129
Decrease in trade and other payables (158) (626)
-------- --------
Cash generated from operations 1,278 338
Income tax paid (78) (169)
-------- --------
Net cash flow from operating activities 1,200 169
-------- --------
Investing activities
Interest received 35 26
Proceeds from sale of property, plant
and equipment and assets held for sale 91 2,184
Payments to acquire property, plant
and equipment (718) (61)
Net cash(outflow)/inflow from investing
activities (592) 2,149
-------- --------
Financing activities
Interest paid (141) (153)
Preference dividend paid (1) (1)
Dividends paid 3 (359) (537)
Repayment of loans from Directors 8 -
Consideration received by EBT on sale
of shares 44 49
Consideration paid by EBT on purchase
of shares (22) -
Net movement in long term borrowings (1,000) 5,000
Net cash flow from financing activities (1,471) 4,358
-------- --------
(Decrease)/increase in cash and cash
equivalents (863) 6,676
Cash and cash equivalents at the beginning
of the year 521 (6,155)
-------- --------
Cash and cash equivalents at the year
end (342) 521
-------- --------
Group reconciliation of movements in equity
Equity Capital Fair value
share redemption Treasury adjustments Currency Retained Total
capital reserve shares reserve translation earnings equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 November
2008 264 673 (1,248) 38 3 8,603 8,333
Total
recognised
income
and expense
for the year - - - (8) - 65 57
Consideration
received
by EBT on sale
of
shares - - 49 - - - 49
Loss by EBT on
sale
of shares - - 205 - - (205) -
Share based
payment - - - - - 13 13
Equity
dividends
paid - - - - - (537) (537)
At 31 October
2009 264 673 (994) 30 3 7,939 7,915
-------- ----------- --------- ------------ ------------ --------- -------
Equity Capital Fair value
share redemption Treasury adjustments Currency Retained Total
capital reserve shares reserve translation earnings equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 November
2009 264 673 (994) 30 3 7,939 7,915
Total recognised
income 3 790 793
and expense for
the year
Consideration
received/(paid)
by EBT on sale
of - - 44 - - - 44
shares - - (22) - - - (22)
Loss by EBT on
sale
of shares - - 146 - - (146) -
Share based
payment - - - - - 12 12
Equity dividends
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 (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 represents 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 2010 the Group held 58,779 Ordinary Shares and
74,592 'A' Limited Voting Ordinary Shares (2009: 58,779 Ordinary
Shares and 87,332 'A' Limited Voting Ordinary Shares) of its own
shares at an average cost of GBP6.18 (2009: GBP5.82). The market
value of these shares as at 31 October 2010 was GBP333,000 (2009:
GBP359,000).
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 2010. 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 2010,
which are expected to be mailed to shareholders on 09 March 2011.
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. Basic and diluted 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.
Diluted earnings per share amounts are calculated by dividing
the profit 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 as diluted for
the share options in issue.
The following reflects the income and shares data used in the
basic and diluted earnings per share computations:
2010 2009
GBP000 GBP000
Profit for the year 857 1,111
-------- --------
2010 2009
N. N.
(000) (000)
Basic weighted average number of shares
(excluding treasury shares) 5,139 5,117
Dilutive potential ordinary shares:
Employee share options - -
Diluted weighted average number of shares 5,139 5,117
-------- --------
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.
Employee share options could potentially dilute basic earnings
per share in the future but are not included in the 2010
calculation of dilutive earnings per share because they are
antidilutive for the period presented.
3. Dividends paid and proposed
2010 2009
GBP000 GBP000
Declared and paid during the year:
Equity dividends on ordinary shares:
Final dividend for 2009: 3.5p (2008: 7p) 185 369
First dividend for 2010: 3.5p (2009: 3.5pl) 185 185
Less dividend on shares held within employee
share schemes (11) (17)
Dividends paid 359 537
-------- --------
Proposed for approval at AGM
(not recognised as a liability as at 31
October)
Final dividend for 2010: 3.5p (2009: 3.5p) 180 180
Cumulative preference dividends 1 1
-------- --------
4. Segment information Primary reporting format - business
segments
IFRS 8 requires operating segments to be identified on the basis
of internal reports about components of the Group that are
regularly reviewed by the Chief executive to allocate resources to
the segments and to assess their performance.
During the year the Group operated in one business segment -
leased estate.
In the prior year the Group operated in two business segments -
leased estate and managed estate. The managed estate was
discontinued in the previous year.
Leased estate represents properties which are leased to tenants
to operate independently from the Group.
Managed estate represents properties which were owned, operated
and maintained by the Group and represents the discontinued
operations.
Segment information
Leased Managed Eliminations Total
Year ended 31 October 2010 GBP000 GBP000 GBP000 GBP000
Revenue
Sales to external customers 7,388 - - 7,388
Segment revenue 7,388 - - 7,388
-------- -------- ------------- --------
Results
Segment results 1,225 - - 1,225
Profit before taxation 1,225 - - 1,225
Tax expense (368) (368)
--------
Profit for the year 857 857
--------
Assets and liabilities
Segment assets 16,295 - - 16,295
Total assets 16,295 - - 16,295
--------
Segment liabilities (7,912) - - (7,912)
Total liabilities (7,912) - - (7,912)
--------
Other segment information
Capital expenditure:
Property, plant and equipment 718 - 718
Depreciation 272 - - 272
Leased Managed Eliminations Total
Year ended 31 October 2009 GBP000 GBP000 GBP000 GBP000
Revenue
Sales to external customers 7,058 2,152 - 9,210
Inter-segment sales 357 - (357) -
Segment revenue 7,415 2,152 (357) 9,210
-------- -------- ------------- --------
Results
Segment results 1,858 (478) - 1,308
Unallocated expenses (127)
--------
Profit before taxation 1,253
Tax expense (142)
--------
Profit for the year 1,111
--------
Leased Managed Eliminations Total
Assets and liabilities GBP000 GBP000 GBP000 GBP000
Segment assets 15,941 - - 15,941
Unallocated assets 598
--------
Total assets 16,539
--------
Segment liabilities (8,259) - - (8,259)
Unallocated liabilities (365)
Total liabilities (8,624)
--------
Other segment information
Capital expenditure:
Property, plant and equipment 57 4 - 61
Depreciation 352 100 - 452
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 2010 and 2009. Revenue is based on the
geographical location of customers and assets are based on the
geographical location of the asset.
United
UK States Total
Year ended 31 October 2010 GBP000 GBP000 GBP000
Revenue
Sales to external customers 7,388 - 7,388
-------- -------- --------
Other segment information
Segment assets 16,285 10 16,295
Total assets 16,285 10 16,295
--------
Capital expenditure
Property, plant and equipment 718 - 718
United
UK States Total
Year ended 31 October 2009 GBP000 GBP000 GBP000
Revenue
Sales to external customers 9,210 - 9,210
-------- -------- --------
Other segment information
Segment assets 15,890 51 15,941
Unallocated assets 598
Total assets 16,539
--------
Capital expenditure
Property, plant and equipment 61 - 61
5. General information
The 2010 Annual Report and Financial Statements will be
published and posted to shareholders on 9 March 2011. Further
copies may be obtained by contacting the Company Secretary at The
Heavitree Brewery PLC, Trood Lane, Matford, Exeter EX2 8YP. The
2010 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 15 April 2011 at 11.30am.
.
Ends.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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