Heavitree Brewery PLC on Wednesday reported weaker half-year profit and largely unchanged revenue.

Despite the lower profit, the Exeter, Devon-based tenanted and leased pub company recommended reinstating its interim dividend with 2 pence per share payout.

The company said pretax profit in the six months to April 30 declined 11% to £947,000 from £1.1 million a year prior. Revenue was largely flat at £3.3 million.

Total operating costs, including staff costs and purchase of inventories, rose 1.3% to £2.8 million.

Chair Nicholas Tucker said concerns about the impact of the cost-of-living crisis on customers visiting its pubs ‘have not materialised as feared’. ‘

‘I am pleased to report that we are hearing from our tenants that top line trading has held up well during the first half of this financial year and continues to do so; in turn, I can report that the company has returned satisfactory numbers at the half-year,’ he said.

Looking ahead, he added: ‘Although the board remains cautious about the headwinds facing our sector, the half-year results show the company is back to generating cash through a sustainable operating profit which gives the directors the confidence to reinstate an interim dividend.’

Heavitree declared a 2p dividend.

Heavitree Brewery shares were flat at 274.00 pence each on Wednesday afternoon in London.

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