TIDMHVT
RNS Number : 0282A
Heavitree Brewery PLC
14 February 2014
The Heavitree Brewery PLC
Trood Lane
Matford
Exeter EX2 8YP
Date: 14 February 2014
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, 14 February 2014, the
Directors announce the preliminary statement of results for the
year ended 31 October 2013.
ISIN: GB0004182720 for 'A' Limited Voting Ordinary Shares
ISIN: GB0004182506 for Ordinary Shares
Chairman's statement
Despite a small drop in turnover due to a loss in rental income
from two houses that were closed and then sold during the year, the
Company has returned an increase in profitability for the year
under review.
Results
Turnover for the Group decreased by GBP37,000 (0.51%) to
GBP7,231,000. However, a Group Operating Profit of GBP1,345,000
after consolidation adjustments was generated which showed an 8.03%
increase (GBP100,000) on the previous year.
Heavitree Inns remained dormant throughout the year.
Heavitree Inc. generated an operating loss of GBP13,000 (2012 -
profit of GBP10,000).
Key Performance indicators
Adjusted Operating Profit before Taxation GBP1,345,000 was up
8.03% on last year.
Interest costs were covered 7.27 times.
Dividend
The Directors recommend a final dividend of 3.5 p per Ordinary
and 'A' Limited Voting Ordinary Share (2012 - 3.5p) making a total
for the year of 7p, which is unchanged from last year. The dividend
will be paid on 25 April 2014, subject to shareholder approval at
the Annual General Meeting on 16 April 2014, to shareholders on the
Register at 2 April 2014.
Sale of Property
The Full Quart at Hewish and The Bishop John de Grandisson at
Bishopsteignton were sold in the year. This resulted in a net loss
of GBP85,000.
Capital Investments
I reported last year that we had converted the St. Loyes pub in
Exeter into six apartments. Four have been marketed for sale and at
the time of writing all have buyers who are soon to complete. The
other two are being rented out.
A house near one of our pubs in Honiton Clyst near Exeter has
been converted into two cottages, and again both have been rented
out.
The conversion of the Malsters Arms old skittle alley into a
detached house was completed in July 2013.
Work has started on two further closed sites. The Red Lion at
Ashburton is being converted into four apartments and a retail
unit. The Country House Inn in Exeter has been demolished and
tenders are being sought for the building of three houses which
have been granted planning approval.
Pension Scheme
The Company continues to meet its funding obligations to its
closed final salary Pension Scheme. The next triennial valuation of
the scheme fell due on 1 January 2014 and should be completed by
the scheme's actuary later in the year.
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.
Outlook
The uncertainty surrounding the imposition of a statutory code
of practice remains for Public House companies, with the Government
having missed the most recent deadline of 8 January 2014 set by the
Business Innovation and Skills Committee (BISC) to reveal its
intentions towards intervening in the tenanted pub company model.
We have already had our own Code of Practice ratified by the
British Beer and Pub Association.
The Company believes that any upturn in the economy will be slow
to filter through to boost customer confidence and expects that
trading conditions will remain difficult in the coming year. This
year's set of results have been buoyed by strong controls of
general costs and our good margins. I am very grateful for the
dedication of our team at Head Office and the performance of our
tenants and leaseholders.
N H P TUCKER
Chairman
Group income statement
for the year ended 31 October 2013
Notes Total Total
2013 2012
GBP000 GBP000
Revenue 7,231 7,268
--------- ---------
Change in stocks - -
Other operating income 166 144
Purchase of inventories (3,079) (3,097)
Staff costs (1,102) (1,211)
Depreciation of property,
plant and equipment (240) (293)
Other operating charges (1,631) (1,566)
--------- ---------
(5,886) (6,023)
--------- ---------
Group operating profit 1,345 1,245
(loss)/profit on sale
of property plant and
equipment (85) 123
Movements in valuation
of estate and related
assets - (244)
Group profit before
finance costs and taxation 1,260 1,124
Finance income 22 26
Finance costs (207) (168)
Other finance costs
- pensions (61) (55)
--------- ---------
(246) (197)
Profit before taxation 1,014 927
Tax expense (270) (296)
Profit for the year
attributable to equity
holders of the parent 744 631
--------- ---------
Basic earnings per
share 2 14.8p 12.5p
--------- ---------
Diluted earnings per
share 2 14.8p 12.5p
--------- ---------
All amounts in 2013 and 2012 relate to continuing
operations.
Group statement of comprehensive income
for the year ended 31 October 2013
2013 2012
GBP000 GBP000
Profit for the year 744 631
-------- --------
Items that may be reclassified to
profit or loss
Actuarial gains/(losses)on defined
benefit pension plans 8 (868)
Tax relating to items that will not
be reclassified (2) 208
-------- --------
6 (660)
Items that may be reclassified to
profit or loss
Cash flow hedges 22 (75)
Fair value adjustments - (26)
Tax relating to items that may be
recalssified (7) 18
-------- --------
15 (83)
Other comprehensive income for the
year,net of tax 765 (112)
-------- --------
Total comprehensive income attributable
to:
Equity holders of parent 765 (112)
-------- --------
Group balance sheet
at 31 October 2013
2013 2012
GBP000 GBP000
Non-current assets
Property, plant and equipment 14,717 14,833
Financial assets 27 28
Deferred tax asset 265 417
--------- ---------
15,009 15,278
--------- ---------
Current assets
Inventories 10 10
Trade and other receivables 1,739 1,362
Cash and cash equivalents 65 78
--------- ---------
1,814 1,450
--------- ---------
Assets held for sale 444 525
--------- ---------
Total assets 17,267 17,253
--------- ---------
Current liabilities
Trade and other payables (835) (970)
Financial liabilities (1,144) (1,454)
Income tax payable (52) (102)
--------- ---------
(2,031) (2,526)
--------- ---------
Non-current liabilities
Other payables (241) (292)
Financial liabilities (5,011) (4,261)
Deferred tax liabilities (212) (220)
Defined benefit pension plan deficit (1,208) (1,662)
--------- ---------
(6,672) (6,435)
--------- ---------
Total liabilities (8,703) (8,961)
--------- ---------
Net assets 8,564 8,292
--------- ---------
Capital and reserves
Equity share capital 264 264
Capital redemption reserve 673 673
Treasury shares (1,002) (875)
Fair value adjustments reserve 8 8
Cash flow hedging reserve (42) (57)
Currency translation 6 6
Retained earnings 8,657 8,273
--------- ---------
Total equity 8,564 8,292
--------- ---------
Group statement of cash flows
for the year ended 31 October 2013
2013 2012
GBP000 GBP000
Operating activities
Profit for the year 744 631
Tax expense 270 296
Net finance costs 246 197
Loss/(profit) on disposal of non current
assets and assets held for sale 85 (101)
Depreciation and impairment of property,
plant and equipment 240 537
Difference between pension contributions
paid and amounts
recognised in the income statement (507) (507)
Increase in trade and other receivables (2) (100)
(Decrease)/increase in trade and other
payables (112) 125
--------- ---------
Cash generated from operations 964 1,078
Income taxes paid (185) (246)
Interest paid (207) (168)
Net cash flow from operating activities 572 664
--------- ---------
Investing activities
Interest received 22 26
Proceeds from sale of property, plant
and equipment and assets held for sale 309 534
Payments to acquire property, plant
and equipment (884) (1,386)
Net cash outflow from investing activities (553) (826)
--------- ---------
Financing activities
Preference dividend paid (1) (1)
Equity dividends paid (352) (354)
Consideration received by EBT on sale
of shares 41 54
Consideration paid by EBT on purchase
of shares (182) (112)
New long-term borrowings 750 250
Net cash flow from financing activities 256 (163)
--------- ---------
Decrease in cash and cash equivalents 275 (325)
Cash and cash equivalents at the beginning
of the year (1,301) (976)
--------- ---------
Cash and cash equivalents at the year
end (1,026) (1,301)
--------- ---------
Group statement of changes in equity
for the year ended 31 October 2013
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 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
2012 264 673 (875) 8 6 (57) 8,273 8,292
Profit for the
year - - - - - - 744 744
Other
comprehensive
income for the
year
net of income
tax - - - - - 15 6 21
--------- ------------ ----------- ------------ -------------- --------- ----------- ---------
Total
comprehensive
income for the
year - - - - - 15 750 765
--------- ------------ ----------- ------------ -------------- --------- ----------- ---------
Consideration
received
by EBT on
sale
of
shares - - 41 - - - - 41
Consideration
paid by
EBT on
purchase
of shares - - (182) - - - - (182)
Loss by EBT on
sale
of shares - - 14 - - - (14) -
Equity
dividends
paid - - - - - - (352) (352)
--------- ------------ ----------- ------------ -------------- --------- ----------- ---------
At 31 October
2013 264 673 (1,002) 8 6 (42) 8,657 8,564
--------- ------------ ----------- ------------ -------------- --------- ----------- ---------
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 2013 the Group held 110,712 Ordinary Shares and
183,263 'A' Limited Voting Ordinary Shares (2012: 82,198 Ordinary
Shares and 156,866 'A' Limited Voting Ordinary Shares) of its own
shares at an average cost of GBP3.40 (2012: GBP3.65). The market
value of these shares as at 31 October 2013 was GBP694,269 (2012:
GBP579,385).
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 2013. 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 2013,
which are expected to be mailed to shareholders on 13 March 2014.
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:
2013 2012
GBP000 GBP000
Profit for the year 744 631
-------- --------
2013 2012
N(o) . N(o) .
(000) (000)
-------- --------
Basic weighted average number of shares
(excluding treasury shares) 5,023 5,061
-------- --------
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
2013 2012
GBP000 GBP000
Declared and paid during the year:
Equity dividends on ordinary shares:
Final dividend for 2012: 3.5p (2011: 3.5p) 185 185
First dividend for 2013: 3.5p (2012: 3.5p) 185 185
Less dividend on shares held within employee
share schemes (18) (16)
Dividends paid 352 354
-------- --------
Proposed for approval at AGM
(not recognised as a liability as at 31
October)
Final dividend for 2013: 3.5p (2012: 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.
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 2013 and 2012. 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 2013 UK United Total
GBP000 States GBP000
GBP000
Revenue
Sales to external customers 7,231 - 7,231
Other segment information
Segment assets 17,222 45 17,267
-------- -------- --------
Total Assets 17,222 45 17,267
-------- -------- --------
Capital expenditure
Property, plant and equipment 812 - 812
-------- -------- --------
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
-------- -------- --------
5. General information
The 2013 Annual Report and Financial Statements will be
published and posted to shareholders on 13 March 2014. Further
copies may be obtained by contacting the Company Secretary at The
Heavitree Brewery PLC, Trood Lane, Matford, Exeter EX2 8YP. The
2013 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 16 April 2014 at 11.30am.
.
Ends.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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