TIDMHVT
RNS Number : 2294R
Heavitree Brewery PLC
26 June 2020
The Heavitree Brewery PLC
Trood Lane
Matford
Exeter EX2 8YP
Date: 26 June 2020
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 2020, the Directors announce the
interim results for the six months ended 30 April 2020.
Chairman's statement
The request by the Prime Minister asking the public to avoid
visiting pubs, and the subsequent forced closure of pubs, clubs and
restaurants across the UK on March 20(th) 2020 has had an
inevitably devastating effect on the trade as a whole and, of
course, our business is not immune to the impact that has been felt
by all pub companies. After the closure announcement, in a move to
conserve cash within the business at this incredibly challenging
time, all capital works were immediately postponed, the Board
withdrew its recommendation to pay a final dividend for the year
ending October 2019, the Directors volunteered and took a salary
reduction and in turn, some members of our Head Office staff were
placed on the Government's Coronavirus Job Retention Scheme. Whilst
we all understand the reasoning for the closure, it is hard to
convey the shockwave felt by all within our organisation and how
saddening it has been to see our pubs standing empty during a
traditionally strong trading time of the year. One of our tenants
commented that in the 45 years of his family operating one of our
houses, this was the first time he had ever had to close. Similar
sentiments have been felt throughout our estate.
Results
Turnover for the period under review has decreased by GBP804,000
(23.46%) to GBP2,623,000. The Group has returned an Operating
Profit of GBP243,000 (2019: GBP624,000), a reduction of 61.00%.
Profit Before Tax is GBP184,000 (2019: GBP705,000) a reduction of
73.90% on the previous year. It is worth noting that the Profit
Before Tax in the previous year did include a book profit of
GBP173,000 on, predominantly, the sale of an unlicensed
property.
Dividend
The Directors do not recommend the payment of a dividend at the
half-year. Once our pubs reopen and when we see trading back on a
more even keel, the Board will be able to review future
dividends.
Property
A small parcel of land has been sold in Christow, near Exeter
for GBP15,000.
Prospects
Much has been written about getting the pubs open to "save our
summer". It is important to remember that, rather ominously for the
second half of our financial year, we already have two months
without any trading to absorb.
Immediately following the closure, we gave some comfort to our
tenants by deferring the rents that were to be collectable. Since
then we have taken the decision to cancel rents completely for all
our licensed houses up to the end of July 2020. Rents will be
reviewed as we go forward. Obviously, there has been no revenue
coming in from tied product sales during the period of closure.
I am most grateful to each of our staff members for the calm and
considered response to the closure and to the changes and stresses
to office and day to day life that the pandemic has caused. This
approach has aided us in updating and advising all our tenants
regularly to help them to navigate through an ever-changing
landscape.
Barclays Bank has extended its support to our business by
offering an increased overdraft facility if required, a 12 months'
capital repayment holiday on our existing facility and a relaxation
of the covenants attached to the original facility. We have enjoyed
a long relationship with Barclays and are appreciative of the
Bank's reaction to the difficulties that have arisen from the
pandemic.
At the time of writing we are reacting to the publication of the
Government's "Safer Workplace Guidance for Pubs and Restaurants"
following the confirmation by the Prime Minister that pubs can
reopen on or after July 4(th) . There will be restrictions and new
practices to adhere to, each of which bring their own issues which
will have to be managed. Our team will continue to support our
tenants through this next chapter, and we all look forward to the
sector returning to happier times.
N H P TUCKER
Chairman
Group income statement (unaudited)
For the six months ended 30 April 2020
6 months 6 months Audited
to to 12 months
30 April 30 April to
2020 2019 31 October
2019
Note GBP' 000 GBP' 000 GBP' 000
Revenue 2,623 3,427 7,528
Change in stocks - - -
Other operating income 136 131 302
Purchase of inventories (995) (1,362) (3,100)
Staff costs (713) (706) (1,385)
Depreciation of property, plant and
equipment (87) (111) (222)
Other operating charges (721) (755) (1,284)
(2,380) (2,803) (5,689)
Group operating profit 243 624 1,839
Profit on sale of property, plant
and equipment 15 173 184
Movements in valuation of estate and - - -
related assets
Group profit before finance costs
and taxation 258 797 2,024
Finance income 2 2 4
Finance costs (76) (94) (185)
Other finance costs-pensions - - -
(74) (92) (180)
Profit before taxation 184 705 1,844
Tax expense (42) (141) (313)
Profit for the period 142 564 1,531
Earnings per share 2
- basic 3.0p 11.8p 32.0p
- diluted 3.0p 11.8p 32.0p
Group statement of comprehensive income (unaudited)
For the six months ended 30 April 2020
6 months 6 months Audited
to to 12months
30 April 30 April to
2020 2019 31 October
2019
GBP' 000 GBP' 000 GBP' 000
Profit for the period 142 564 1,531
Items that will not be reclassified
to profit or loss
Fair value adjustment on investment
in equity
Actuarial (losses)/gains on defined
benefit pension plans
Tax relating to items that will not (9) (6) (6)
be reclassified - - -
(9) (6) (6)
Items that may be reclassified to
profit or loss (2)
Exchange rate differences on translation (5) (2)
of subsidiary undertaking -
Tax relating to items that may be - -
reclassified (2) (5) (2)
Other comprehensive income for the
year, net of tax 131 553 1,527
Total comprehensive income attributable
to:
Equity holders of the parent 131 553 1,527
Group balance sheet (unaudited)
at 30 April 2020 30 April 30 April Audited
2020 2019 31 October
GBP' 000 GBP' 000 2019
GBP'000
Non-current assets
Property, plant and equipment 19,364 19,064 19,177
Financial assets 32 42 41
Deferred tax asset 16 38 16
19,412 19,144 19,234
Current assets
Trade and other receivables 915 1,322 1,344
Inventories 10 10 10
Cash and short-term deposits 45 61 51
970 1,393 1,405
Assets held for sale - - -
Total assets 20,382 20,537 20,639
Current liabilities
Trade and other payables (452) (918) (953)
Financial liabilities (1,681) (977) (6,087)
Income tax payable (267) (268) (231)
(2,400) (2,163) (7,271)
Non-current liabilities
Other payables (296) (274) (284)
Financial liabilities (4,531) (6,011) (37)
Deferred tax liabilities (394) (300) (394)
Defined benefit pension plan (92) (40) (92)
(5,313) (6,625) (807)
Total liabilities (7,713) (8,788) (8,078)
Net assets 12,669 11,749 12,561
Capital and reserves
Equity share capital 264 264 264
Capital redemption reserve 673 673 673
Treasury shares (1,585) (1,573) (1,562)
Fair value adjustments reserve 8 17 17
Currency translation 15 10 17
Retained earnings 13,294 12,358 13,152
Total equity 12,669 11,749 12,561
Dividends
The Directors do not recommend a dividend to be paid at the
half-year.
Group statement of cash flows (unaudited)
for the six months ended 30 April 2020
6 months 6 months Audited
to to 12months
30 April 30 April to
2020 2019 31 October
2019
Operating activities GBP' 000 GBP' 000 GBP' 000
Profit for the period 142 564 1,531
Tax expense 42 141 313
Net finance costs 74 92 180
(Profit) on disposal of non-current
assets and assets held for sale (15) (173) (185)
Depreciation and impairment of property,
plant and equipment 87 165 222
Exchange gain on cash, liquid resources
and loan - - -
Difference between pension contributions
paid and recognised in the income
statement - - 52
Decrease/(increase) in trade and
other receivables 416 (30) (72)
(Decrease)/increase in trade and
other payables (528) (204) (145)
Cash generated from operations 218 555 1,896
Income taxes paid - 5 (97)
Interest paid (76) (94) (184)
Net cash inflow from operating activities 142 466 1,615
Investing activities
Interest received 2 2 4
Proceeds from sale of property, plant
and equipment and assets held for
sale 15 229 278
Payments to acquire property, plant
and equipment (262) (323) (506)
Net cash(outflow)/ inflow from investing
activities (245) (92) (224)
Financing activities
Preference dividend paid (1) (1) (1)
Equity dividends paid - (203) (379)
Consideration received by EBT on
sale of shares - - 56
Consideration paid by EBT on purchase
of shares (23) (256) (298)
Capital element of finance lease
rental payments (6) (1) (15)
Repayment of bank borrowings (6,000) - -
Draw down of bank borrowings 4,500 - -
Net cash outflow from financing activities (1,530) (461) (637)
(Decrease)/increase in cash and cash
equivalents (1,633) (87) 754
Cash and cash equivalents at the
beginning of the period (3) (757) (757)
Cash and cash equivalents at the
period end (1,636) (844) (3)
Group statement of cash flows (unaudited)
(continued)
for the six months ended 30 April
2020
Represented by:
Cash and short term deposits 45 61 51
Overdraft (1,681) (905) (54)
(1,636) (844) (3)
Group reconciliation of movements in equity (unaudited)
6 months Equity Capital Fair
to
30 April share redemption Treasury value Currency Retained Total
2020
capital reserve shares adjustment translation earnings equity
GBP' GBP' 000 GBP' GBP' GBP' GBP' GBP'
000 000 000 000 000 000
At 1November
2019 264 673 (1,562) 17 17 13,152 12,561
Profit for
the period - - - - - 142 142
Other comprehensive
income for
the period,
net of income
tax - - - (9) (2) - (11)
-------- ----------- --------- ----------- ------------ --------- -------
Total comprehensive
income for
the period - - - (9) (2) 142 131
-------- ----------- --------- ----------- ------------ --------- -------
Consideration
received
by EBT on
sale of shares - - - - - - -
Consideration
paid by EBT
on purchase
of shares - - (23) - - - (23)
Gain by EBT
on sale of
shares - - - - - - -
Equity dividend
paid - - - - - - -
At 30 April
2020 264 673 (1,585) 8 15 13,294 12,669
-------- ----------- --------- ----------- ------------ --------- -------
Group reconciliation of movements in equity (unaudited) -
continued
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
Equity Capital Fair
share redemption Treasury value Currency Retained Total
12 months to 31 capital reserve shares adjustment translation earnings equity
October 2019 GBP000 GBP000 GBP000 reserve GBP000 GBP000 GBP000
Audited GBP000
At 1 November
2018 264 673 (1,317) 23 15 11,997 11,655
Profit for the
year - - - - - 1,531 1,531
Other comprehensive
income for the
year
net of income
tax - - - (6) 2 - (4)
--------- ------------ ----------- ------------ -------------- ----------- ---------
Total comprehensive
income for the
year - - - (6) 2 1,531 1,527
--------- ------------ ----------- ------------ -------------- ----------- ---------
Consideration
received by EBT
on sale of shares - - 56 - - - 56
Consideration
paid by
EBT on purchase
of shares - - (298) - - - (298)
Loss by EBT on
sale of shares - - (3) - - 3 -
Equity dividends
paid - - - - - (379) (379)
--------- ------------ ----------- ------------ -------------- ----------- ---------
At 31 October
2019 264 673 (1,562) 17 17 13,152 12,561
--------- ------------ ----------- ------------ -------------- ----------- ---------
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 2019 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 2020.
2 . Going concern
Due to the impact of Covid-19 on the Pub sector the Directors
have revised budgets and cash flow forecasts. As noted in the
Chairman's statement, the Group is committed to supporting its
tenants through this challenging time and has cancelled rents for
all licenced houses up to the end of July 2020. Combined with no
revenue from tied product sales during the period of closure this
represents a significant reduction in cash generation.
The Board has therefore taken measures to minimise cash outflow
by putting all project work and major building work on hold,
withdrawing the recommendation to pay a final dividend for the year
ending 31 October 2019, the Directors taking a salary reduction and
making use of the Government's Coronavirus Job Retention Scheme
where necessary.
Additionally, the Directors have been in discussions with the
company's bankers to provide flexibility to its existing
facilities, which includes an extended overdraft facility should it
be required, a twelve-month payment holiday on the term Loan, and a
postponement on covenant testing. With these measures in place, and
having prepared prudent budgets and cash flow forecasts, the Board
is satisfied that the Group will be able to operate within
available resources for a period of at least 12 months from the
date of approval of these interim financial statements. For this
reason, the Group continues to adopt the going concern basis of
preparation.
3. New Standard
The following new standards have been adopted, effective from 1
November 2019:
IFRS16: Leases. The Group holds a small number of immaterial
operating leases as a lessee and as a result there is no material
impact upon adoption of the new standard.
Notes to the interim results - continued
4. Key Estimates
The key assumptions concerning the future and other key sources
of estimation uncertainty at the balance sheet date, that have a
significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial period
are discussed below:
Impairment of assets
The Directors assess impairment of assets at each reporting date
on a property by property basis. The Directors take into
consideration trade performance during the year and open market
value as to whether there is an indication that an asset may be
permanently impaired. When necessary external valuations are
carried out. The impact of the ongoing Covid-19 pandemic on the pub
trade and the wider UK economy could have ramifications for the
valuation of the Group's estate. Given the current significant and
unprecedented levels of uncertainty, the Directors' view is that it
is not possible to quantify any potential impact at this time, and
as such the values in these interim financial statements have not
been adjusted to take into account the impact of the pandemic.
5. Basic and diluted earnings per share
The calculation of basic earnings per ordinary share is based on
earnings of GBP142,000 (2019: GBP564,000), being profit after
taxation for the period, and on 4,777,939 (2019: 4,786,818) 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.
6. 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.
7. 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 2020 has been posted to
shareholders today and will be available on our website at
www.heavitreebrewery.co.uk.
Ends.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR ZZGZVLVZGGZG
(END) Dow Jones Newswires
June 26, 2020 07:00 ET (11:00 GMT)
Heavitree Brewery (LSE:HVT)
Graphique Historique de l'Action
De Fév 2025 à Mar 2025
Heavitree Brewery (LSE:HVT)
Graphique Historique de l'Action
De Mar 2024 à Mar 2025
