TIDMHVT
RNS Number : 7342E
Heavitree Brewery PLC
13 February 2015
The Heavitree Brewery PLC
Trood Lane
Matford
Exeter EX2 8YP
Date: 13 February 2015
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, 13 February 2015, the
Directors announce the preliminary statement of results for the
year ended 31 October 2014.
ISIN: GB0004182720 for 'A' Limited Voting Ordinary Shares
ISIN: GB0004182506 for Ordinary Shares
Chairman's statement
Profitability (operating profit) for the year under review has
increased by 4.39% despite a small drop in turnover.
Results
Turnover for the Group decreased by GBP33,000 (0.46%) to
GBP7,198,000. Group Operating Profit increased by 4.39% (GBP59,000)
on the previous year.
Heavitree Inns remained dormant throughout the year.
Heavitree Inc. generated an operating profit of GBP6,000 (2013 -
loss of GBP13,000).
Key Performance indicators
Adjusted Operating Profit before Taxation GBP1,404,000 was up
4.39% on last year.
Interest costs were covered 7.54 times.
Dividend
The Directors recommend a final dividend of 3.675p per Ordinary
and 'A' Limited Voting Ordinary Share (2013 - 3.5p) making a total
for the year of 7.35p, which is up 5% on last year. The dividend
will be paid on 17 April 2015, subject to shareholder approval at
the Annual General Meeting on 15 April 2015, to shareholders on the
Register at 20 March 2015.
Sale of Property
The Artichoke Inn in Christow and The Vestry in Newton Abbot
were sold in the year under review. This resulted in a net profit
of GBP322,000. Also, four flats at the Old St. Loyes site were
sold, resulting in a net profit of GBP129,000.
Capital Investments
I reported last year that planning permission had been granted
for the conversion of the Red Lion in Ashburton and the Country
House Inn in Exeter. Work is still ongoing at these two sites.
Upgrade work has started at The Heavitree in Exmouth and The
George and Dragon in Dartmouth and I shall report further at the
half-year about the exciting developments at these two houses.
The Dartmoor Halfway in Bickington is currently closed but we
are close to approving a scheme to develop and improve this great
site. Again, I shall report further at the half-year.
The Pen Inn has been leased to Mitchells and Butler who have
closed the pub for a six-month redevelopment under their Toby
Carvery brand.
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. There has been a delay in
the issue of the valuation due to the Scheme's actuary being away
from work because of a long illness. He is now back and the
valuation is due to be completed by 31 March 2015.
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
Judy Grundy retired from the Accounts department in August of
this year. She joined the Company in June 1975. I am sure that all
of our shareholders will join the Board in thanking her for her
years of dedication to the Company, and also wishing her a long and
healthy retirement.
It is with great sadness that I have to report the loss in the
year of two friends of the Company with whom we have enjoyed a long
and happy association.
Ray Price died on 27 September 2014. Ray retired from the
Company in 1985. He had joined as Company Secretary in 1957 and was
invited to the Board in 1966. His long service was a huge support
to my Father, and in particular, he helped guide the Company
through the transitional period after we ceased brewing in
1970.
It was also a very sad day for everyone at Head Office when we
heard of the passing of Wally Protheroe. Wally was our tenant at
the Teignmouth Inn in Dawlish in January 1979 before he and his
wife June took the tenancy of the Mount Pleasant Inn at Dawlish
Warren in February 1985. As a result of their vision and hard work,
Wally and his family enjoyed consistent success and made the Mount
Pleasant one of the Company's flagship operations.
Outlook
In November MPs voted in favour of the Small Business,
Enterprise and Employment Bill. Subject to approval in the House of
Lords the Bill should become law later in 2015. Clause 2 of the
Bill requires all tenanted and leased pub operators with over 500
houses to offer 'Market Rent Only' agreements with no tie on beer
or cider products. Due to the size of our estate we will not be
legislatively bound to offer MRO agreements; and we will continue
to operate with a tie albeit with a large choice of permanently
listed products and an even larger list of seasonal ales and ciders
for our tenants to choose from. So in practical terms we are not
directly affected. However, this potential change will, at the very
least, cast a shadow of uncertainty across the industry; and we
will have to adapt to the commercial realities that accompany
it.
N H P TUCKER
Chairman
13 February 2015
Group income statement
for the year ended 31 October 2014
Notes Total Total
2014 2013
GBP000 GBP000
Revenue 7,198 7,231
--------- ---------
Change in stocks - -
Other operating income 230 166
Purchase of inventories (3,127) (3,079)
Staff costs (1,144) (1,102)
Depreciation of property,
plant and equipment (227) (240)
Other operating charges (1,526) (1,631)
--------- ---------
(5,794) (5,886)
--------- ---------
Group operating profit 1,404 1,345
Profit/(loss) on sale
of property plant and
equipment 466 (85)
Group profit before
finance costs and taxation 1,870 1,260
Finance income 17 22
Finance costs (203) (207)
Other finance costs
- pensions (42) (61)
--------- ---------
(228) (246)
Profit before taxation 1,642 1,014
Tax expense (261) (270)
Profit for the year
attributable to equity
holders of the parent 1,381 744
--------- ---------
Basic earnings per
share 2 28.0p 14.8p
--------- ---------
Diluted earnings per
share 2 28.0p 14.8p
--------- ---------
All amounts in 2014 and 2013 relate to continuing
operations.
Group statement of comprehensive income
for the year ended 31 October 2014
2014 2013
GBP000 GBP000
Profit for the year 1,381 744
-------- --------
Items that will not be reclassified
to profit or loss
Actuarial (losses)/gains on defined
benefit pension plans (415) 8
Tax relating to items that will not
be reclassified 84 (2)
-------- --------
(331) 6
Items that may be reclassified to
profit or loss
Cash flow hedges 28 22
Fair value adjustments 8 -
Exchange rate differences on translation 1 -
of subsidiary undertaking
Tax relating to items that may be
recalssified (6) (7)
-------- --------
31 15
Other comprehensive income for the
year, net of tax 1,081 765
-------- --------
Total comprehensive income attributable
to:
Equity holders of parent 1,081 765
-------- --------
Group balance sheet
at 31 October 2014
2014 2013
GBP000 GBP000
Non-current assets
Property, plant and equipment 15,043 14,717
Financial assets 35 27
Deferred tax asset 237 265
--------- ---------
15,315 15,009
--------- ---------
Current assets
Inventories 10 10
Trade and other receivables 1,245 1,739
Cash and cash equivalents 112 65
--------- ---------
1,367 1,814
--------- ---------
Assets held for sale - 444
--------- ---------
Total assets 16,682 17,267
--------- ---------
Current liabilities
Trade and other payables (954) (835)
Financial liabilities (4,858) (1,144)
Income tax payable (184) (52)
--------- ---------
(5,996) (2,031)
--------- ---------
Non-current liabilities
Other payables (234) (241)
Financial liabilities (11) (5,011)
Deferred tax liabilities (200) (212)
Defined benefit pension plan deficit (1,158) (1,208)
--------- ---------
(1,603) (6,672)
--------- ---------
Total liabilities (7,599) (8,703)
--------- ---------
Net assets 9,083 8,564
--------- ---------
Capital and reserves
Equity share capital 264 264
Capital redemption reserve 673 673
Treasury shares (1,202) (1,002)
Fair value adjustments reserve 16 8
Cash flow hedging reserve (20) (42)
Currency translation 7 6
Retained earnings 9,345 8,657
--------- ---------
Total equity 9,083 8,564
--------- ---------
Group statement of cash flows
for the year ended 31 October 2014
2014 2013
GBP000 GBP000
Operating activities
Profit for the year 1,381 744
Tax expense 261 270
Net finance costs 228 246
(Profit)/loss on disposal of non current
assets and assets held for sale (466) 85
Depreciation and impairment of property,
plant and equipment 227 240
Difference between pension contributions
paid and amounts
recognised in the income statement (507) (507)
Decrease/(increase) in trade and other
receivables 120 (2)
Increase/(decrease) in trade and other
payables 113 (112)
--------- ---------
Cash generated from operations 1,357 964
Income taxes paid (36) (185)
Interest paid (203) (207)
Net cash flow from operating activities 1,118 572
--------- ---------
Investing activities
Interest received 17 22
Proceeds from sale of property, plant
and equipment and assets held for sale 1,381 309
Payments to acquire property, plant
and equipment (649) (884)
Net cash inflow/(outflow) from investing
activities 749 (553)
--------- ---------
Financing activities
Preference dividend paid (1) (1)
Equity dividends paid (354) (352)
Consideration received by EBT on sale
of shares 37 41
Consideration paid by EBT on purchase
of shares (245) (182)
New long-term borrowings (250) 750
Net cash flow from financing activities (813) 256
--------- ---------
Decrease in cash and cash equivalents 1,054 275
Cash and cash equivalents at the beginning
of the year (1,026) (1,301)
--------- ---------
Cash and cash equivalents at the year
end 28 (1,026)
--------- ---------
Group statement of changes in equity
for the year ended 31 October 2014
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 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
2013 264 673 (1,002) 8 6 (42) 8,657 8,564
Profit for the
year - - - - - - 1,381 1,381
Other
comprehensive
income for the
year
net of income
tax - - - 8 1 22 (331) (300)
--------- ------------ ----------- ------------ -------------- --------- ----------- ---------
Total
comprehensive
income for the
year - - - 8 1 22 1,050 1,081
--------- ------------ ----------- ------------ -------------- --------- ----------- ---------
Consideration
received
by EBT on
sale
of
shares - - 37 - - - - 37
Consideration
paid by
EBT on
purchase
of shares - - (245) - - - - (245)
Loss by EBT on
sale
of shares - - 8 - - - (8) -
Equity
dividends
paid - - - - - - (354) (354)
--------- ------------ ----------- ------------ -------------- --------- ----------- ---------
At 31 October
2014 264 673 (1,202) 16 7 (20) 9,345 9,083
--------- ------------ ----------- ------------ -------------- --------- ----------- ---------
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 2014 the Group held 128,672 Ordinary Shares and
273,479 'A' Limited Voting Ordinary Shares (2013: 110,712 Ordinary
Shares and 183,263 'A' Limited Voting Ordinary Shares) of its own
shares at an average cost of GBP2.98 (2013: GBP3.40). The market
value of these shares as at 31 October 2014 was GBP916,880 (2013:
GBP694,269).
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 2014. 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 2014,
which are expected to be mailed to shareholders on 12 March 2015.
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:
2014 2013
GBP000 GBP000
Profit for the year 1,381 744
-------- --------
2014 2013
N(o) . N(o) .
(000) (000)
-------- --------
Basic weighted average number of shares
(excluding treasury shares) 4,939 5,023
-------- --------
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
2014 2013
GBP000 GBP000
Declared and paid during the year:
Equity dividends on ordinary shares:
Final dividend for 2013: 3.5p (2012: 3.5p) 185 185
First dividend for 2014: 3.675p (2013:
3.5p) 194 185
Less dividend on shares held within employee
share schemes (25) (18)
Dividends paid 354 352
-------- --------
Proposed for approval at AGM
(not recognised as a liability as at 31
October)
Final dividend for 2014: 3.675p (2013:
3.5p) 194 180
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 2014 and 2013. 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 2014 UK United Total
GBP000 States GBP000
GBP000
Revenue
Sales to external customers 7,198 - 7,198
Other segment information
Segment assets 16,624 58 16,682
-------- -------- --------
Total Assets 16,624 58 16,682
-------- -------- --------
Capital expenditure
Property, plant and equipment 649 - 649
-------- -------- --------
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
-------- -------- --------
5. General information
The 2014 Annual Report and Financial Statements will be
published and posted to shareholders on 12 March 2015. 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 15 April 2015 at 11.30am.
Ends.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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