TIDMHVT
RNS Number : 6605O
Heavitree Brewery PLC
12 February 2016
The Heavitree Brewery PLC
Trood Lane
Matford
Exeter EX2 8YP
Date: 12 February 2016
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 2016, the
Directors announce the preliminary statement of results for the
year ended 31 October 2015.
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 0.56% despite a small drop in turnover. There was an
impairment cost of GBP47,000 (2014 - GBPNil) relating to the Pen
and Quill which has been transferred to assets held for sale. There
was also a small profit from the sale of non-current assets of
GBP5,000 compared to GBP466,000 in the previous year.
Results
Turnover for the Group decreased by GBP116,000 (1.6%) to
GBP7,082,000. Group Operating Profit increased by 0.56% (GBP8,000)
on the previous year.
Heavitree Inns remained dormant throughout the year.
Heavitree Inc. generated an operating loss of GBP13,000 (2014 -
profit of GBP6,000).
Key Performance indicators
Adjusted Operating Profit before Taxation of GBP1,412,000 was up
0.56% on last year.
Interest costs were covered 8.71 times.
Dividend
The Directors recommend a final dividend of 3.675p per Ordinary
and 'A' Limited Voting Ordinary Share (2014 - 3.675p) making an
unchanged total for the year of 7.35p. The dividend will be paid on
22 April 2016, subject to shareholder approval at the Annual
General Meeting on 14 April 2016, to shareholders on the Register
at 29 March 2016.
Sale of Property
The Hole in the Wall in Dawlish, the Exeter Inn in Dawlish, the
Pen and Quill in Taunton, the Maltsters Arms in Harbertonford and
the Bell Inn in Cullompton are each being marketed for sale. We
have achieved planning permission for the Hole in the Wall, the
Exeter Inn and the Pen and Quill for various schemes of change of
use following a number of years of closure. The Maltsters Arms is
currently closed but the Bell Inn is open and trading.
Purchase of Property
In October we purchased a closed pub in Teignmouth called the
Queensbury Arms for GBP330,000.
Capital Investments
The conversion of the Red Lion Inn in Ashburton into four flats
and a retail unit and the development of the Country House Inn site
in Exeter into three detached houses are close to completion. I
shall report further on these at the half-year.
The substantial capital investments at the Oddfellows in Exmouth
and the George and Dragon in Dartmouth have been completed. The
Oddfellows opened in August and The George and Dragon opened in
November. Both are trading well and we look forward to significant
contributions from these two houses. Our tenants at both these pubs
brought great vision and operational skill and detail to the styles
that have been achieved and we wish both Yvan and Faye Williams at
the Oddfellows and Adrian, Leigh and Sophie Ovens at the George and
Dragon every success and a long and happy partnership with this
Company.
The Dartmoor Halfway Inn in Bickington remains closed but a
redevelopment plan which will deliver a bigger and better pub has
been approved by Teignbridge District Council; at the time of
writing costings are being sought. An informal agreement has been
reached with a favoured operator and we look forward to work
getting underway at
this site. Again, I shall report further at the half-year.
Pension Scheme
The Company continues to meet its funding obligations to its
closed final salary Pension Scheme. Following the triennial
valuation of the Scheme which fell due on 1 January 2014 and which
was completed earlier in the year under review, a revised schedule
of deficit repayment contributions extending to 2022 has been
agreed by the trustees with the Scheme's actuary. The next
valuation falls due on 1 January 2017 with anticipated completion
in early 2018; but required by 31 March 2018 at the latest.
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
I once again find myself drawing attention to the uncertainties
which overshadow the trade whilst the economic recovery in our
trading area slowly moves forward. There has been much debate about
possible interest rate increases and the effects on small
businesses, such as pub operators, of the introduction of the
national living wage. Most recently, the new, well publicised
guidance on alcohol consumption from the UK Chief Medical Officer
has added to the list of issues faced by today's Licensee. With all
these pressures very much in mind, we continue to attract great
operators by offering a combination of stability with our new
agreements; both tenancy and leasehold, an expanding choice of
products and strong support from the head office team to all our
houses.
N H P TUCKER
Chairman
12 February 2016
Group income statement
for the year ended 31 October 2015
Notes Total Total
2015 2014
GBP000 GBP000
Revenue 7,082 7,198
--------- ---------
Change in stocks - -
Other operating
income 229 230
Purchase of inventories (2,986) (3,127)
Staff costs (1,172) (1,144)
Depreciation of
property, plant
and equipment (218) (227)
Other operating
charges (1,523) (1,526)
--------- ---------
(5,670) (5,794)
--------- ---------
Group operating
profit 1,412 1,404
Profit on sale
of property plant
and equipment 5 466
Movements in valuation (47) -
of estate and
related assets
Group profit before
finance costs
and taxation 1,370 1,870
Finance income 8 17
Finance costs (170) (203)
Other finance
costs - pensions (35) (42)
--------- ---------
(197) (228)
Profit before
taxation 1,173 1,642
Tax expense (258) (261)
Profit for the
year attributable
to equity holders
of the parent 915 1,381
--------- ---------
Basic earnings
per share 2 18.8p 28.0p
--------- ---------
Diluted earnings
per share 2 18.8p 28.0p
--------- ---------
All amounts in 2015 and 2014 relate to continuing
operations.
Group statement of comprehensive income
for the year ended 31 October 2015
2015 2014
GBP000 GBP000
Profit for the year 915 1,381
-------- --------
Items that will not be reclassified
to profit or loss
Actuarial losses on defined
benefit pension plans (740) (415)
Tax relating to items that
will not be reclassified 147 84
-------- --------
(593) (331)
Items that may be reclassified
to profit or loss
Cash flow hedges 24 28
Fair value adjustments (2) 8
Exchange rate differences
on translation of subsidiary
undertaking - 1
Tax relating to items that
may be reclassified (4) (6)
-------- --------
18 31
Other comprehensive income
for the year, net of tax 340 1,081
-------- --------
Total comprehensive income
attributable to:
Equity holders of parent 340 1,081
-------- --------
Group balance sheet
at 31 October 2015
2015 2014
GBP000 GBP000
Non-current assets
Property, plant and equipment 16,779 14,580
Investment property 463 463
--------- ---------
17,242 15,043
Financial assets 34 35
Deferred tax asset 282 237
--------- ---------
17,558 15,315
--------- ---------
Current assets
Inventories 10 10
Trade and other receivables 1,359 1,245
Cash and cash equivalents 51 112
--------- ---------
1,420 1,367
--------- ---------
February 12, 2016 10:00 ET (15:00 GMT)
At 31 October 2015 the Group held 139,102 Ordinary Shares and
266,676 'A' Limited Voting Ordinary Shares (2014: 128,672 Ordinary
Shares and 273,479 'A' Limited Voting Ordinary Shares) of its own
shares at an average cost of GBP2.71 (2014: GBP2.98). The market
value of these shares as at 31 October 2015 was GBP1,247,421 (2014:
GBP916,880).
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 2015. 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 2015,
which are expected to be mailed to shareholders on 11 March 2016.
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:
2015 2014
GBP000 GBP000
Profit for the year 915 1,381
-------- --------
2015 2014
N(o) N(o)
. .
(000) (000)
-------- --------
Basic weighted average number
of shares (excluding treasury
shares) 4,874 4,939
-------- --------
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
2015 2014
GBP000 GBP000
Declared and paid during the year:
Equity dividends on ordinary shares:
Final dividend for 2014: 3.675p
(2013: 3.5p) 194 185
First dividend for 2015: 3.675p
(2014: 3.675p) 194 194
Less dividend on shares held
within employee share schemes (30) (25)
Dividends paid 358 354
-------- --------
Proposed for approval at AGM
(not recognised as a liability
as at 31 October)
Final dividend for 2015: 3.675p
(2014: 3.675p) 194 194
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 2015 and 2014. 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 UK United Total
2015 GBP000 States GBP000
GBP000
Revenue
Sales to external customers 7,082 - 7,082
Other segment information
Segment assets 19,598 25 19,623
-------- -------- --------
Total Assets 19,598 25 19,623
-------- -------- --------
Capital expenditure
Property, plant and
equipment 3,124 - 3,124
-------- -------- --------
Year ended 31 October UK United Total
2014 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
-------- -------- --------
5. General information
The 2015 Annual Report and Financial Statements will be
published and posted to shareholders on 11 March 2016. Further
copies may be obtained by contacting the Company Secretary at The
Heavitree Brewery PLC, Trood Lane, Matford, Exeter EX2 8YP. The
2015 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 14 April 2016 at 11.30am.
Ends.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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