TIDMHVT
RNS Number : 4743D
Heavitree Brewery PLC
26 June 2019
The Heavitree Brewery PLC
Trood Lane
Matford
Exeter EX2 8YP
Date: 26 June 2019
Contact: Graham Crocker - Managing Director - 01392 217733
Nicola McLean - Company Secretary - 01392 217733
Patrick Castle /Anita Ghanekar - Shore Capital - 0207 408
4090
Following a meeting by a duly authorised committee of the Board
of Directors held today, 26 June 2019, the Directors announce the
interim results for the six months ended 30 April 2019.
Chairman's statement
Turnover for the period under review has increased by GBP29,000
(0.9%) against the corresponding period last year. However there
has been a reduction in operating profit of 1.1% to GBP624,000
(2018: GBP631,000). This has been as a result of increased costs
associated with external management services at three houses which
were traded over a period before new tenants were signed up. In
turn, there has been an impact on our rental revenue (a reduction
of 2.6% on the previous year) during this period between
tenants.
Results
The Group has returned an operating profit of GBP624,000 (2018:
631,000). After allowing for finance costs of GBP92,000 (2018:
GBP132,000) and book profit mostly generated by the sale of one
unlicensed property (GBP173,000), the Group Profit before taxation
is GBP705,000 (2018: GBP1,329,000). Although this reflects a
significant decrease on the previous year it needs to be remembered
that 2018's half year Group Profit contained a book profit of
GBP830,000 as a result of the sale of four properties in that
period.
Dividend
The Directors have resolved to pay an unchanged interim dividend
of 3.675p per Ordinary Share and 'A' Limited Voting Ordinary Share
(2018: 3.675p). The dividend will be paid on 2 August 2019 to
shareholders on the register at the close of business on 19 July
2019.
Property
A house on the old St.Loye's Hotel site in Exeter has been sold
having completed on 19 February 2019. Following the sale of a small
block of flats on the site last year, the sale of this last house
completes the sale of the properties developed on the garden area
of the pub in 2012.
The second phase of our refurbishment of the Church House Inn in
Stokenham comprising of a new bar, a small extension and a new fire
escape for bed and breakfast rooms has been completed. We look
forward to a healthy contribution from this house over the summer
months.
Prospects
I am pleased with this steady performance for the half year with
the Company trading in line with last year and I feel, despite the
continuing political uncertainty, we are well-positioned going into
the second half of the year.
N H P TUCKER
Chairman
Group income statement (unaudited)
For the six months ended 30 April 2019
6 months 6 months Audited
to to 12 months
30 April 30 April to
2019 2018 31 October
2018
Note GBP' 000 GBP' 000 GBP' 000
Revenue 3,427 3,398 7,614
Change in stocks - - -
Other operating income 131 139 279
Purchase of inventories (1,362) (1,342) (3,109)
Staff costs (706) (697) (1,407)
Depreciation of property, plant and equipment (111) (115) (235)
Other operating charges (755) (752) (1,510)
(2,803) (2,767) (5,982)
Group operating profit 624 631 1,632
Profit on sale of property, plant and equipment 173 830 824
Movements in valuation of estate and related assets - - -
Group profit before finance costs and taxation 797 1,461 2,456
Finance income 2 2 5
Finance costs (94) (93) (175)
Other finance costs-pensions - (41) (35)
(92) (132) (205)
Profit before taxation 705 1,329 2,251
Tax expense (141) (189) (324)
Profit for the period 564 1,140 1,927
Earnings per share 2
- basic 11.8p 23.4p 39.6p
- diluted 11.8p 23.4p 39.6p
Group statement of comprehensive income (unaudited)
For the six months ended 30 April 2019
6 months 6 months Audited
to to 12months
30 April 30 April to
2019 2018 31 October
2018
GBP' 000 GBP' 000 GBP' 000
Profit for the period 564 1,140 1,927
Items that will not be reclassified
to profit or loss
Actuarial (losses)/gains on defined
benefit pension plans - (254) (248)
Tax relating to items that will not
be reclassified - 99 42
- (155) (206)
Items that may be reclassified to
profit or loss
Fair value adjustment (6) (5) (4)
Exchange rate differences on translation
of subsidiary undertaking (5) (6) (2)
Tax relating to items that may be - - -
reclassified (11) (11) (6)
Other comprehensive income for the
year, net of tax 553 974 1,715
Total comprehensive income attributable
to:
Equity holders of the parent 553 974 1,715
Dividends
The Directors declare an interim dividend of 3.675p per share
(2018 - 3.675p) on the Ordinary and 'A' Limited Voting Ordinary
Shares. This dividend will be paid on 02 August 2019 to
shareholders on the register at 19 July 2019.
Group balance sheet (unaudited)
at 30 April 2019 30 April 30 April Audited
2019 2018 31 October
GBP' 000 GBP' 000 2018
GBP'000
Non-current assets
Property, plant and equipment 19,064 18,163 18,906
Financial assets 42 47 47
Deferred tax asset 38 230 38
19,144 18,440 18,991
Current assets
Trade and other receivables 1,322 1,861 1,292
Inventories 10 10 10
Cash and short-term deposits 61 113 44
1,393 1,984 1,346
Assets held for sale - 328 62
Total assets 20,537 20,752 20,399
Current liabilities
Trade and other payables (918) (747) (1,078)
Financial liabilities (977) (529) (818)
Income tax payable (268) (281) (131)
(2,163) (1,557) (2,027)
Non-current liabilities
Other payables (274) (319) (311)
Financial liabilities (6,011) (6,011) (6,067)
Deferred tax liabilities (300) (345) (300)
Defined benefit pension plan (40) (1,352) (39)
(6,625) (8,027) (6,717)
Total liabilities (8,788) (9,584) (8,744)
Net assets 11,749 11,168 11,655
Capital and reserves
Equity share capital 264 264 264
Capital redemption reserve 673 673 673
Treasury shares (1,573) (1,240) (1,317)
Fair value adjustments reserve 17 22 23
Currency translation 10 11 15
Retained earnings 12,358 11,438 11,997
Total equity 11,749 11,168 11,655
Group statement of cash flows (unaudited)
for the six months ended 30 April 2019
6 months 6 months Audited
to to 12months
30 April 30 April to
2019 2018 31 October
2018
Operating activities GBP' 000 GBP' 000 GBP' 000
Profit for the period 564 1,140 1,927
Tax expense 141 189 324
Net finance costs 92 132 206
(Profit) on disposal of non-current
assets and assets held for sale (173) (830) (824)
Depreciation and impairment of property,
plant and equipment 165 115 235
Exchange gain on cash, liquid resources
and loan 5 5 5
Difference between pension contributions
paid and recognised in the income
statement - (240) (1,544)
(Increase)/decrease in trade and
other receivables (30) (131) 284
(Decrease)/increase in trade and
other payables (199) (60) 380
Cash generated from operations 565 320 993
Income taxes paid 5 (8) (188)
Interest paid (94) (93) (176)
Net cash inflow from operating activities 466 219 629
Investing activities
Interest received 2 2 6
Proceeds from sale of property, plant
and equipment and assets held for
sale 229 1,441 1,454
Payments to acquire property, plant
and equipment (323) (249) (777)
Net cash(outflow)/ inflow from investing
activities (92) 1,194 683
Financing activities
Preference dividend paid (1) (1) (1)
Equity dividends paid (203) (211) (373)
Consideration received by EBT on
sale of shares - 53 54
Consideration paid by EBT on purchase
of shares (256) (68) (145)
Capital element of finance lease
rental payments (1) (7) (68)
Net cash outflow from financing activities (461) (234) (533)
(Decrease)/increase in cash and cash
equivalents (87) (1,179) 779
Cash and cash equivalents at the
beginning of the period (757) (1,536) (1,536)
Cash and cash equivalents at the
period end (844) (357) (757)
Represented by:
Cash and short term deposits 61 113 44
Overdraft (905) (470) (801)
(844) (357) (757)
Group reconciliation of movements in equity (unaudited)
6 months Equity Capital Fair
to
30 April share redemption Treasury value Currency Retained Total
2019
capital reserve shares adjustment Translation earnings equity
GBP' GBP' 000 GBP' GBP' GBP' 000 GBP' GBP'
000 000 000 000 000
At 1November
2018 264 673 (1,317) 23 15 11,997 11,655
Profit for
the period - - - - - 564 564
Other comprehensive
income for
the period,
net of income
tax - - - (6) (5) - (11)
-------- ----------- --------- ----------- ------------ --------- -------
Total comprehensive
income for
the period - - - (6) (5) 564 553
-------- ----------- --------- ----------- ------------ --------- -------
Consideration
received
by EBT on
sale of shares - - - - - - -
Consideration
paid by EBT
on purchase
of shares - - (256) - - - (256)
Gain by EBT
on sale of
shares - - - - - - -
Equity dividend
paid - - - - - (203) (203)
At 30 April
2019 264 673 (1,573) 17 10 12,358 11,749
-------- ----------- --------- ----------- ------------ --------- -------
Group reconciliation of movements in equity (unaudited) -
continued
6 months Equity Capital Fair
to
30 April share redemption Treasury value Currency Retained Total
2018
capital reserve shares adjustment Translation earnings equity
GBP' GBP' 000 GBP' GBP' GBP' 000 GBP' GBP'
000 000 000 000 000
At 1November
2017 264 673 (1,223) 27 17 10,646 10,404
Profit for
the period - - - - - 1,140 1,140
Other comprehensive
income for
the period,
net of income
tax - - - (5) (6) (155) (166)
-------- ----------- ----------- ----------- ------------ ----------- -----------
Total comprehensive
income for
the period - - - (5) (6) 985 974
-------- ----------- ----------- ----------- ------------ ----------- -----------
Consideration
received
by EBT on
sale of shares - - 53 - - - 53
Consideration
paid by EBT
on purchase
of shares - - (68) - - - (68)
Gain by EBT
on sale of
shares - - (2) - - 2 -
Equity dividend
paid - - - - - (195) (195)
-------- ----------- ----------- ----------- ------------ ----------- -----------
At 30 April
2018 264 673 (1,240) 22 11 11,438 11,168
-------- ----------- ----------- ----------- ------------ ----------- -----------
Group reconciliation of movements in equity (unaudited) -
continued
Equity Capital Fair
share redemption Treasury value Currency Retained Total
12 months to 31 capital reserve shares adjustment translation earnings equity
October 2018 GBP000 GBP000 GBP000 reserve GBP000 GBP000 GBP000
Audited GBP000
At 1 November
2017 264 673 (1,223) 27 17 10,646 10,404
Profit for the
year - - - - - 1,927 1,927
Other comprehensive
income for the
year
net of income
tax - - - (4) (2) (206) (212)
--------- ------------ ----------- ------------ -------------- ----------- ---------
Total comprehensive
income for the
year - - - (4) (2) 1,721 1,715
--------- ------------ ----------- ------------ -------------- ----------- ---------
Consideration
received by EBT
on sale of shares - - 54 - - - 54
Consideration
paid by
EBT on purchase
of shares - - (145) - - - (145)
Gain by EBT on
sale of shares - - (3) - - 3 -
Equity dividends
paid - - - - - (373) (373)
--------- ------------ ----------- ------------ -------------- ----------- ---------
At 31 October
2018 264 673 (1,317) 23 15 11,997 11,655
--------- ------------ ----------- ------------ -------------- ----------- ---------
Equity share capital
The balance classified as share capital includes the total net
proceeds (both nominal value and share premium) on issue of the
Company's equity share capital, comprising 5p Ordinary and 'A'
Limited Voting 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 Benefit Trust ('EBT').
Notes to the interim results
1. Basis of preparation
These unaudited interim condensed and consolidated financial
statements have been prepared in accordance with IAS34 "interim
financial reporting" and do not constitute statutory accounts as
defined in section 434 of the Companies Act 2006. They have been
prepared on the basis of the accounting policies that were complied
with in the annual financial statements for the year ended 31
October 2018 except for the adoption of new accounting standards as
set out below. The accounting policies are drawn up in accordance
with International Accounting Standards (IAS) and International
Financial Reporting Standards (IFRS) as adopted by the European
Union.
These unaudited financial statements were approved and
authorised for issue by a duly appointed and authorised committee
of the Board of Directors on 26 June 2019.
The following new standards have been adopted, both effective
from 1 November 2018:
IFRS15: Revenue from contracts with customers. The Group's
revenue primarily consists of drink and food sales to the leased
estate, together with rental income from both the leased estate and
investment properties. Rental income is outside the scope of
IFRS15. The Directors have concluded that the existing method for
recognising revenue from drink and food sales is in accordance with
IFRS15, being the point in time at which control of those goods is
passed to the customer. There is therefore no impact upon adoption
of the new standard.
IFRS9: Financial instruments. The Group does not hold any
complex financial instruments, and financial assets consist
primarily of short term trade and other receivables. IFRS9
introduces a new expected loss approach for determining impairment
of financial assets. The Directors have considered this against the
current method for bad debt provisioning and no material change has
been required.
2. Basic and diluted earnings per share
The calculation of basic earnings per ordinary share is based on
earnings of GBP564,000 (2018: GBP1,140,000), being profit after
taxation for the period, and on 4,786,818 (2018: 4,876,995) shares
being the weighted average number of Ordinary and 'A' Limited
Voting Ordinary Shares in issue during the period after excluding
the shares owned by The Heavitree Brewery PLC Employee Benefits
Trust and those shares under option pursuant to the Employee Share
Option Scheme. Employee share options could potentially dilute
basic earnings per share in the future but are not included in the
interim calculation of dilutive earnings per share because they are
antidilutive for the period presented. The Ordinary Shares and the
'A' Limited Voting Ordinary Shares have equal dividend rights and
therefore no separate calculation of earnings per share for the
different classes has been given.
Notes to the interim results - continued
3. Segment information
Primary reporting format - Business segments
The primary segmental reporting format is determined to be
business segments as the Group's risks and rates of return are
affected predominantly by differences in the products and services
provided.
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.
4. Interim report
Copies of this announcement are available from the Company at
Trood Lane, Matford, Exeter EX2 8YP. The Company's interim report
for the six months ended 30 April 2019 has been posted to
shareholders today and will be available on our website at
www.heavitreebrewery.co.uk.
Ends.
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London Stock Exchange. RNS is approved by the Financial Conduct
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of this information may apply. For further information, please
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END
IR MMGZVRVVGLZG
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