Interim Results
June 29 2006 - 11:00AM
UK Regulatory
RNS Number:3553F
Heavitree Brewery PLC
29 June 2006
The Heavitree Brewery PLC
Trood Lane
Matford
Exeter EX2 8YP
Telephone: 01392 217733
Contact: Mr G.J.Crocker - Finance Director and Company Secretary
Mr R.J.Glanville - Director
Date: 29 June 2006
Following a Board Meeting held today, 29 June 2006, the Directors announce the
half-year results for the six months ended 30 April 2006.
Chairman's statement
Results
A gross profit of #842,000 from the sale of our shares in George Gale & Company
Limited has provided a big boost to the half-year's results giving a total
profit on ordinary activities before tax of #1,140,000 compared to #434,000
(restated) last year. Excluding the Gale's windfall and all other profits on
sales of fixed assets, the comparative figures are #298,000 against #193,000
(restated) in 2005.
Both sides of the business are performing well as is evidenced by the #110,000
increase in operating profit up from #409,000 (restated) to #519,000. I am
particularly pleased to report that the underlying improvement in performance of
the managed houses continues, with like for like sales up by 5.26%.
Properties
There have been no sales or purchases. Refurbishment of our Trood Lane offices
together with the ongoing programme of capital improvements to our pubs, has
resulted in a total spend of #560,000 so far this year.
Prospects for the year
The outlook is still heavily overshadowed by the shortfall in our pension fund.
However, the old final salary scheme has now been closed and replaced with a
stakeholder one which should avoid any future unforeseeable black holes. The
final salary scheme will be wound up but it will be several months before a
final figure can be given on the amount required to meet all of our obligations
under that arrangement.
The cost of compliance with the new Licensing Act and with the torrent of
regulations continues, and will continue, to be a burden but the Directors
believe that the business is in good health.
Dividend
The Directors feel justified in paying an increased interim dividend of 4.0p per
Ordinary and 'A' Limited Voting Ordinary Share. This represents an increase of
0.5p and the dividend will be paid on 28 July 2006 to shareholders on the
Register at 7 July 2006.
W P Tucker
Chairman
Group profit and loss account
for the six months ended 30 April 2006
As restated
2006 2005
Note #000 #000
Turnover 6,136 5,830
Operating profit 519 409
Profit on sale of tangible fixed assets - 241
Profit on disposal of fixed asset investments 842 -
Profit on ordinary activities before interest
and taxation 1,361 650
Other interest receivable 4 3
Interest payable (183) (177)
Other finance charges - FRS 17 (42) (42)
Profit on ordinary activities before taxation 1,140 434
Taxation on profit on ordinary activities (242) (171)
Profit attributable to shareholders 898 263
Basic and diluted earnings per share 3 16.8p 4.9p
All revenues and costs relate to continuing operations.
Group statement of total recognised gains and losses
for the six months ended 30 April 2006
As restated
2006 2005
#000 #000
Profit attributable to shareholders 898 263
Exchange difference on retranslation of subsidiary 1 -
Actuarial loss on pension scheme (74) (78)
Deferred tax relating to actuarial loss on pension scheme 22 23
Total recognised gains and losses relating to period and since 847 208
last annual report
Group statement of movement on shareholders' funds
for the six months ended 30 April 2006
As restated
2006 2005
#000 #000
At 1 November as previously reported 6,581 6,316
Prior year adjustment - FRS 21 317 310
Prior year adjustment - FRS 25 (12) (12)
At 1 November as restated 6,886 6,614
Total recognised gains and losses relating to the year 847 208
Dividends (319) (315)
Consideration received by EBT on sale of shares 63 39
Consideration paid by EBT on purchase of shares (605) (107)
At 30 April 6,872 6,439
The early adoption of Financial Reporting Standard No. 17 'Retirement Benefits'
in the annual accounts for the year ended 31 October 2005 resulted in a prior
year adjustment of #1,539,000 on shareholders funds reducing the #7,855,000
previously reported to #6,316,000 above.
Dividends
The Directors declare an interim dividend of 4.0p per share (2005 - 3.5p) on the
Ordinary and 'A' Limited Voting Ordinary Shares. This dividend will be paid on
28 July 2006 to shareholders on the register at 7 July 2006.
Group balance sheet
At 30 April 2006
As restated
2006 2005
#000 #000
Fixed assets
Tangible assets 16,503 15,407
Investments 20 195
16,523 15,602
Current assets
Stocks 168 146
Debtors 1,664 2,830
Cash at bank and in hand 647 538
2,479 3,514
Creditors: amount falling due within one year (9,805) (10,520)
Net current liabilities (7,326) (7,006)
Total assets less current liabilities 9,197 8,596
Creditors: amount falling due after more than one year (288) (296)
Provisions for liabilities and charges
Deferred taxation (283) (264)
Net assets excluding pension liability 8,626 8,036
Pension liability (1,754) (1,597)
6,872 6,439
Capital and reserves
Called up share capital 279 279
Capital redemption reserve 658 658
Other reserves 73 72
Own shares reserve (1,306) (674)
Profit and loss account 7,168 6,104
Total shareholders' funds - equity 6,872 6,439
Group statement of cash flows
for the six months ended 30 April 2006
As restated
2006 2005
Note #000 #000
Net cash flow from operating activities 4 1,496 1,073
Returns on investments and servicing of finance
Interest paid (225) (219)
Interest received 4 3
Preference dividend paid (1) (1)
Net cash outflow from returns on investments
and servicing of finance (222) (217)
Taxation
Corporation tax paid (186) (493)
Capital expenditure and financial investment
Payments to acquire tangible fixed assets (975) (880)
Receipts from sales of tangible fixed assets - 315
Receipts from sale of fixed assets investments 1,017 -
42 (565)
Equity dividends paid (318) (314)
Financing
Consideration received by EBT on sale of shares 63 39
Consideration paid by EBT on purchase of shares (605) (107)
(542) (68)
Increase/(Decrease) in cash 270 (584)
Reconciliation of net cash flow to movement in net debt
for the six months ended 30 April 2006
As restated
2006 2005
#000 #000
Increase/(decrease) in cash 270 (584)
Change in net debt arising from cash flows being movement in net 270 (584)
debt
Net debt at beginning of period (6,546) (6,166)
Net debt at end of period (6,276) (6,750)
Notes to the interim results
1 These figures for the six months ended 30 April 2006 are unaudited.
2 The accounting policies are consistent with the previous year except
for the adoption of Financial Reporting Standard No 17 'Retirement Benefits'
(which was also adopted early for the annual accounts for the year ended 31
October 2005), Financial Reporting Standard No 21 'Events after the Balance
Sheet Date' and Financial Reporting Standard No. 25 'Financial Instruments
Disclosure and Presentation'. The prior year six month period has been restated
for this implementation and the impact is summarised below:
(a) Group profit and loss account
Profit for the
year attributable
to shareholders
#'000
As previously reported 425
Implementation of FRS 17 (161)
Implementation of FRS 25 (1)
As restated 263
(b) Group balance sheet
Debtors Creditors < Creditors > Deferred Net pension Share P&L
1 year 1 year tax liability Capital Reserve
#'000 #'000 #'000 #'000 #'000 #'000 #'000
As previously reported 2,887 (10,671) (284) (218) - 291 7,653
Implementation of FRS 17 (57) (44) - (46) (1,597) - (1,744)
Implementation of FRS 21 - 195 - - - - 195
Implementation of FRS 25 - - (12) - - (12) -
As restated 2,830 (10,520) (296) (264) (1,597) 279 6,104
3 Basic and diluted earnings per share
The calculation of basic earnings per ordinary share is based on earnings of
#898,000 (2005 restated: #263,000), being profit after taxation for the year,
and on 5,352,674 (2004 - 5,374,483) shares being the weighted average number of
Ordinary and 'A' Limited Voting Ordinary Shares in issue during the year 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.
The diluted earnings per share is equal to the basic earnings per share because
the share options within the Employee Share Option Scheme are considered to be
non-dilutive potential ordinary shares.
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.
4 Group statement of cash flows
Reconciliation of operating profit to net cash inflow from operating activities:
As restated
2006 2005
#000 #000
Operating profit 519 409
Depreciation 308 238
(Increase) in stocks (19) (3)
(Increase) in operating debtors (365) (1,222)
Increase in operating creditors 974 1,573
Net pension change 78 78
Exchange gain on cash 1 -
Net cash inflow from continuing operating activities 1,496 1,073
Ends.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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