Amendment to Dividend record date

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 £37,000 (0.51%) to £7,231,000. However, a Group Operating Profit of £1,345,000 after consolidation adjustments was generated which showed an 8.03% increase (£100,000) on the previous year. 

Heavitree Inns remained dormant throughout the year.

Heavitree Inc. generated an operating loss of £13,000 (2012 - profit of £10,000).

 

Key Performance indicators

Adjusted Operating Profit before Taxation £1,345,000 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 4 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 £85,000.

   

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 2013 £000	Total 2012 £000
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 £000	2012 £000
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 £000		2012 £000
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 £000		2012 £000
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 share capital £000	Capital redemption reserve £000	Treasury shares £000	Fair value adjustment reserve £000	Currency translation £000	Cash flow hedge reserve £000	Retained earnings £000	Total equity £000
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 £000	Capital redemption reserve £000	Treasury shares £000	Fair value adjustment reserve £000	Currency translation £000	Cash flow hedge reserve £000	Retained earnings £000	Total equity £000
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 £3.40 (2012: £3.65). The market value of these shares as at 31 October 2013 was £694,269 (2012: £579,385).

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 £000	2012 £000
Profit for the year	744	631
	2013 No. (000)	2012 No.  (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 £000	2012 £000
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)    Cumulative preference dividends	180 1	180 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 £000	United States £000	Total £000
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 £000	United States £000	Total £000
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.