TIDMHVT
RNS Number : 6067X
Heavitree Brewery PLC
12 February 2013
The Heavitree Brewery PLC
Trood Lane
Matford
Exeter EX2 8YP
Date: 12 February 2013
Contact: Graham Crocker - Managing Director - 01392 217733
Nicola McLean - Company Secretary - 01392 217733
Pascal Keane - Shore Capital - 0207 408 4090
Following a Board Meeting held today, 12 February 2013, the
Directors announce the preliminary statement of results for the
year ended 31 October 2012.
ISIN: GB0004182720 for 'A' Limited Voting Ordinary Shares
ISIN: GB0004182506 for Ordinary Shares
Chairman's statement
A similar performance to last year has been achieved. Last year
I reported that it had been a satisfactory performance bearing in
mind the economic environment in which we were trading. That
environment has changed very little and, together with the adverse
weather conditions during the summer season and the floods
experienced towards the year end, public houses have had a lot to
contend with once again. Despite these factors we have again
returned a steady set of results.
Results
Turnover for the Group decreased from last year by GBP84,000
(1.14%) to GBP7,268,000 and generated a Group operating profit of
GBP1,245,000 (2011 - GBP1,408,000) after consolidation adjustments.
Gross margins and rental income held up extremely well; but heavy
repair costs in the year, combined with additional costs directly
attributable to dealing with a small number of problematic houses,
account for the reduced profitability. Group profit before taxation
has been further impacted by an exceptional impairment cost of
GBP244,000 arising on the transfer of non-current assets to assets
held for sale.
Heavitree Inns remained dormant throughout the year.
Heavitree Inc. generated an operating profit of GBP10,000 (2011
- GBP9,000).
Key Performance Indicators
Adjusted operating profit before taxation of GBP1,245,000 was
down 11.57% on last year. Interest costs were covered 8.76
times.
Details of the key performance indicators used by the Board to
measure the performance of the Group's business can be found in the
Directors' report on page 7.
Dividend
The Directors recommend a final dividend of 3.5p per Ordinary
and 'A' Limited Voting Ordinary Share (2011 - 3.5p) making a total
for the year of 7p, which is unchanged from last year. The dividend
will be paid on 19 April 2013, subject to shareholder approval at
the Annual General Meeting on 12 April 2013, to shareholders on the
Register at 22 March 2013.
Capital Investments
At the time of writing the conversion into six flats of the old
St.Loyes pub in Exeter is nearing completion. These flats will be
marketed for sale in the coming months.
Phase one work has started at The Maltsters Arms site in Clyst
St.Mary converting the old skittle alley into a detached house.
The upgrade of The Heart of Oak in Pinhoe was completed in
December 2012.
The extension of the trading area at The Half Moon in Clyst
St.Mary was also completed in December 2012.
Pension Scheme
The Company continues to meet its funding obligations to its
closed final salary Pension Scheme.
Following completion, in April 2012, of the triennial valuation
of the Scheme as at 1 January 2011, a continuing annualised deficit
correction payment was agreed, with the last payment now being due
in February 2020.
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
Rod Glanville retired as Company Secretary and from the Board on
19 June 2012, having joined the Company in 1981. At last year's
Annual General Meeting, on behalf of the Board of Directors and the
shareholders, I thanked Rod for his years of invaluable service to
the Company and wished him a long and happy retirement.
Nicky McLean, I am delighted to report, has become Company
Secretary having been Assistant to Rod before his retirement.
Outlook
The Government has announced that it is now minded to introduce
a statutory Code of Practice for Public House companies and has
decided to commence a consultation period to be completed by spring
this year. There is no suggestion that the Beer Tie itself will be
abolished, in fact quite the reverse, but the Government's
proposals will seek to enshrine the principle that 'a tied licensee
should be no worse off than a free of tie licensee'. Although it is
currently considered this statutory Code will only apply to
companies with more than five hundred tied tenanted and/or leased
houses, it is inevitable that the effects will be felt by all
companies in the sector. We have worked to our own voluntary code
since December 2010, and have always taken great pride in the
positive relationship that has always existed between the Company
and our Tenants.
The Government has also chosen not to act to remove the beer
duty escalator about which I spoke at last year's Annual General
Meeting. As a result we can only anticipate further above-inflation
duty increases.
Despite the expectation that trading conditions will remain
difficult, perhaps for years to come, the key to our future success
will continue to be the result of the strong relationships between
Head Office and our Landlords and Landladies.
N H P TUCKER
Chairman
Group income statement
for the year ended 31 October 2012
Notes Total Total
2012 2011
GBP000 GBP000
Revenue 7,268 7,352
--------- ---------
Change in stocks - -
Other operating income 144 113
Purchase of inventories (3,097) (3,134)
Staff costs (1,211) (1,194)
Depreciation of property,
plant and equipment (293) (295)
Other operating charges (1,566) (1,434)
--------- ---------
(6,023) (5,944)
--------- ---------
Group operating profit 1,245 1,408
Exceptional items (121) 10
Group profit before
finance costs and taxation 1,124 1,418
Finance income 26 33
Finance costs (168) (138)
Other finance costs
- pensions (55) (81)
--------- ---------
(197) (186)
Profit before taxation 927 1,232
Tax expense (296) (389)
Profit for the year
attributable to equity
holders of the parent 631 843
--------- ---------
Basic earnings per
share 2 12.5p 16.4p
--------- ---------
Diluted earnings per
share 2 12.5p 16.4p
--------- ---------
All amounts in 2012 and 2011 relate to continuing
operations.
Group statement of comprehensive income
for the year ended 31 October 2012
2012 2011
GBP000 GBP000
Profit for the year 631 843
Other comprehensive income
Actuarial (losses)/gains on defined
benefit pension plans (868) 130
Cash flow hedges (75) -
Tax credit on items taken directly
to or transferred from equity 226 (33)
Fair value adjustment (26) 4
-------- --------
(743) 101
Total comprehensive income for the
year
(112) 944
Total comprehensive income attributable
to:
Equity holders of the parent (112) 944
-------- --------
Group balance sheet
at 31 October 2012
2012 2011
GBP000 GBP000
Non-current assets
Property, plant and equipment 14,833 15,225
Financial assets 28 54
Deferred tax asset 417 325
--------- ---------
15,278 15,604
--------- ---------
Current assets
Inventories 10 10
Trade and other receivables 1,362 1,262
Cash and cash equivalents 78 86
--------- ---------
1,450 1,358
--------- ---------
Assets held for sale 525 -
--------- ---------
Total assets 17,253 16,962
--------- ---------
Current liabilities
Trade and other payables (970) (1,095)
Financial liabilities (1,454) (5,062)
Income tax payable (102) (144)
--------- ---------
(2,526) (6,301)
--------- ---------
Non-current liabilities
Other payables (292) (327)
Financial liabilities (4,261) (11)
Deferred tax liabilities (220) (261)
Defined benefit pension plan deficit (1,662) (1,246)
--------- ---------
(6,435) (1,845)
--------- ---------
Total liabilities (8,961) (8,146)
--------- ---------
Net assets 8,292 8,816
--------- ---------
Capital and reserves
Equity share capital 264 264
Capital redemption reserve 673 673
Treasury shares (875) (840)
Fair value adjustments reserve 8 34
Cash flow hedging reserve (57) -
Currency translation 6 6
Retained earnings 8,273 8,679
--------- ---------
Total equity 8,292 8,816
--------- ---------
Group statement of cash flows
for the year ended 31 October 2012
2012 2011
GBP000 GBP000
Notes
Operating activities
Profit for the year 631 843
Tax expense 296 389
Net finance costs 197 186
Profit on disposal of non current assets
and assets held for sale (101) (10)
Depreciation and impairment of property,
plant and equipment 537 295
Difference between pension contributions
paid and amounts
recognised in the income statement (507) (507)
(Increase)/decrease in trade and other
receivables (100) 182
Increase in trade and other payables 125 39
--------- ---------
Cash generated from operations 1,078 1,417
Income taxes paid (246) (349)
Interest Paid (168) (138)
Net cash flow from operating activities 664 930
--------- ---------
Investing activities
Interest received 26 33
Proceeds from sale of property, plant
and equipment and assets held for sale 534 114
Payments to acquire property, plant
and equipment (1,386) (1,199)
Net cash outflow from investing activities (826) (1,052)
--------- ---------
Financing activities
Preference dividend paid (1) (1)
Equity dividends paid 3 (354) (360)
Consideration received by EBT on sale
of shares 54 43
Consideration paid by EBT on purchase
of shares (112) (194)
New long-term borrowings 250 -
Net cash flow from financing activities (163) (512)
--------- ---------
Decrease in cash and cash equivalents (325) (634)
Cash and cash equivalents at the beginning
of the year (976) (342)
--------- ---------
Cash and cash equivalents at the year
end (1,301) (976)
--------- ---------
Group statement of changes in equity
for the year ended 31 October 2012
Equity Capital Fair
share redemption Treasury value Currency Retained Total
capital reserve shares adjustment translation earnings equity
GBP000 GBP000 GBP000 reserve GBP000 GBP000 GBP000
GBP000
At 1 November
2010 264 673 (826) 30 6 8,236 8,383
Profit for the
year - - - - - 843 843
Other comprehensive
income for the
year
net of income
tax - - - 4 - 97 101
--------- ------------ ----------- ------------ -------------- ----------- ---------
Total comprehensive
income for the
year - - - 4 - 940 944
--------- ------------ ----------- ------------ -------------- ----------- ---------
Consideration
received
by EBT on sale
of
shares - - 43 - - - 43
Consideration
paid by
EBT on purchase
of shares - - (194) - - - (194)
Loss by EBT on
sale
of shares - - 137 - - (137) -
Equity dividends
paid - - - - - (360) (360)
--------- ------------ ----------- ------------ -------------- ----------- ---------
At 31 October
2011 264 673 (840) 34 6 8,679 8,816
--------- ------------ ----------- ------------ -------------- ----------- ---------
Equity Capital Fair Cash
share redemption Treasury value Currency flow Retained Total
capital reserve shares adjustment translation hedge earnings equity
GBP000 GBP000 GBP000 reserve GBP000 reserve GBP000 GBP000
GBP000 GBP000
At 1 November
2011 264 673 (840) 34 6 - 8,679 8,816
Profit for the
year - - - - - - 631 631
Other
comprehensive
income for the
year
net of income
tax - - - (26) - (57) (660) (743)
--------- ------------ ----------- ------------ -------------- --------- ----------- ---------
Total
comprehensive
income for the
year - - - (26) - (57) (29) (112)
--------- ------------ ----------- ------------ -------------- --------- ----------- ---------
Consideration
received
by EBT on
sale
of
shares - - 54 - - - - 54
Consideration
paid by
EBT on
purchase
of shares - - (112) - - - - (112)
Loss by EBT on
sale
of shares - - 23 - - - (23) -
Equity
dividends
paid - - - - - - (354) (354)
--------- ------------ ----------- ------------ -------------- --------- ----------- ---------
At 31 October
2012 264 673 (875) 8 6 (57) 8,273 8,292
--------- ------------ ----------- ------------ -------------- --------- ----------- ---------
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 2012 the Group held 82,198 Ordinary Shares and
156,866 'A' Limited Voting Ordinary Shares (2011: 68,174 Ordinary
Shares and 146,641 'A' Limited Voting Ordinary Shares) of its own
shares at an average cost of GBP3.65 (2011: GBP3.90). The market
value of these shares as at 31 October 2012 was GBP579,385 (2010:
GBP478,187).
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.
Cash flow hedging reserve
The cash flow hedging reserve represents the cumulative
effective portion of gains or losses arising on changes in fair
value of hedging instruments entered into for cash flow hedges. The
cumulative gain or loss arising on changes in fair value of the
hedging instruments that are recognised and accumulated under the
heading of cash flow hedging reserve will be re-classified to
profit or loss only when the hedged transaction affects the profit
or loss.
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 2012. 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 2012,
which are expected to be mailed to shareholders on 7 March 2013.
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:
2012 2011
GBP000 GBP000
Profit for the year 631 843
-------- --------
2012 2011
N(o) . N(o) .
(000) (000)
-------- --------
Basic weighted average number of shares
(excluding treasury shares) 5,061 5,129
-------- --------
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
2012 2011
GBP000 GBP000
Declared and paid during the year:
Equity dividends on ordinary shares:
Final dividend for 2011: 3.5p (2010: 3.5p) 185 185
First dividend for 2012: 3.5p (2011: 3.5p) 185 185
Less dividend on shares held within employee
share schemes (16) (10)
Dividends paid 354 360
-------- --------
Proposed for approval at AGM
(not recognised as a liability as at 31
October)
Final dividend for 2012: 3.5p (2011: 3.5p) 180 180
Cumulative preference dividends 1 1
-------- --------
4. Segment information
Primary reporting format - business segments
During the year the Group operated in one business segment -
leased estate.
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 2012 and 2011. 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 2012 UK United Total
GBP000 States GBP000
GBP000
Revenue
Sales to external customers 7,268 - 7,268
Other segment information
Segment assets 17,196 57 17,253
-------- -------- --------
Total Assets 17,196 57 17,253
-------- -------- --------
Capital expenditure
Property, plant and equipment 1,103 - 1,103
-------- -------- --------
Year ended 31 October 2011 UK United Total
GBP000 States GBP000
GBP000
Revenue
Sales to external customers 7,352 - 7,352
Other segment information
Segment assets
16,915 47 16,962
-------- -------- --------
Total Assets 16,915 47 16,962
-------- -------- --------
Capital expenditure
Property, plant and equipment 1,534 20 1,554
-------- -------- --------
5. General information
The 2012 Annual Report and Financial Statements will be
published and posted to shareholders on 7 March 2013. Further
copies may be obtained by contacting the Company Secretary at The
Heavitree Brewery PLC, Trood Lane, Matford, Exeter EX2 8YP. The
2012 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 12 April 2013 at 11.30am.
.
Ends.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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