HYDRO HOTEL, EASTBOURNE, PLC
PRELIMINARY ANNOUNCEMENT OF THE FINAL RESULTS
FOR THE YEAR ENDED 31 OCTOBER 2015
HIGHLIGHTS
The profit for the financial year after taxation was GBP103,617 (2014
GBP94,959). Turnover from the Hydro Hotel operation increased during the year
by 2.0% (2014 increase of 0.3%). Earnings per share were 17.27p compared to
15.83p for the previous year.
The Company generated cash from operating activities of GBP289,109 (2014
GBP343,850) and invested GBP119,618 in new fixed assets (2014 GBP66,076).
During the year the Company paid ordinary dividends of GBP108,000 (2014
GBP108,000). At the year end the Company had net current assets of GBP818,033
(2014 GBP750,868).
CHAIRMAN'S STATEMENT
Results for year ended 31 October 2015
I am pleased to say that in the second half of the year we noted a firmer trend
to business, reversing the reduction in sales of 2.7% in the first half of the
year caused by the uncertainty in the run up to the general election. Sales for
the year ended 31 October 2015 totalled GBP3,129,504, an increase of 2.0% on
the GBP3,069,548 sales for the previous year (2014 increase 0.3%). Operating
profit for the year increased to GBP120,006 (2014 GBP117,330). After interest
receivable and the corporation tax charge, the post-tax profits for the year
were GBP103,617 (2014 GBP94,959). While this is not quite sufficient to cover a
maintained dividend again this year, the company has strong reserves and assets
and so we have declared dividends totalling 18 pence per share absorbing
GBP108,000, the same as the previous year.
Trading conditions continue to be very competitive, and we have implemented the
increase in the national minimum wage of 3% as from 1 October 2015, and on 1
April 2016 the national living wage increase of 7.5% will come in to force for
employees from age 25. Auto-enrolment pension contributions will be applied on
top, and there are knock on effects on staff pay differentials to take into
account. Management are reviewing our staffing structure and practices to
ensure this significant increase in costs is manageable, and we will also be
reviewing our pricing.
Developments since 31 October 2015
In midsummer 2015 we held a special celebratory weekend event to mark the 120th
anniversary of the company and this proved successful. As you will have seen
from the flyer sent out with your dividend in January, we are planning another
midsummer package this year from 1st to 3rd July.
The boot room has been completed, and we will be taking an active role in the
Sussex Walking festival in the week beginning 24 September to promote this
facility.
We have installed a pop up cinema with a sophisticated audio-visual system in
the Long Lounge to provide more in house entertainment for guests, and we can
show feature films as well as theatre and opera productions.
In view of the change of general manager taking place this year, we have
deferred the start of the property renovation programme planned with Gould &
Company until the next financial year so that the new general manager can
review the proposals and integrate any business development ideas which he or
she may wish to pursue.
Our Staff
As announced last November, Ian Turnbull, our Executive Director and General
Manager of the hotel, has given notice to leave the company at the end of
February. We are conducting a recruitment process to appoint a successor and I
will update shareholders when the new person is in post. I thank Ian for his
dedicated service to the company and wish him well in his new career.
Mary Peck retires as a director by rotation at the AGM on 29 March 2016, and
after more than 20 years on the Board she has decided not to seek
re-appointment. I thank Mary for her contributions to the Board's policy
discussions over the years, and wish her the best of health and happiness for
her retirement and look forward to continuing to see her here at the Hydro as a
supportive shareholder and customer.
I wish to record our thanks to our management team and all our staff for their
dedication to delivering Hydro's renowned quality of service which our
customers value so much.
Graeme C King, MA, CA
26 January 2016 Chairman of the Board
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 OCTOBER 2015
2015 2014
GBP GBP
TURNOVER
Continuing operations 3,129,504 3,069,548
Cost of sales (2,820,812) (2,763,894)
GROSS PROFIT 308,692 305,654
Administrative expenses (188,686) (188,324)
OPERATING PROFIT 120,006 117,330
BANK INTEREST RECEIVABLE 13,570 6,323
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 133,576 123,653
TAXATION ON PROFIT ON ORDINARY ACTIVITIES (29,959) (28,694)
PROFIT FOR THE YEAR GBP 103,617 GBP 94,959
Earnings per share - continuing operations 17.27p 15.83p
Earnings per share have been calculated using 600,000 shares, being the
weighted average number of shares for both years. The company has no potential
ordinary shares, therefore basic and diluted earnings per share is the same
figure.
BALANCE SHEET AT 31 OCTOBER 2015
2015 2014
GBP GBP
FIXED ASSETS
Tangible Assets
Freehold land and buildings 1,844,895 1,855,135
Furniture and equipment 712,569 774,189
2,557,464 2,629,324
CURRENT ASSETS
Stocks 29,189 34,323
Debtors 128,963 101,994
Cash at bank and in hand 1,150,831 1,115,351
1,308,983 1,251,668
CREDITORS
Amounts falling due within one year (490,950) (500,800)
NET CURRENT ASSETS 818,033 750,868
TOTAL ASSETS LESS CURRENT LIABILITIES 3,375,497 3,380,192
PROVISION FOR LIABILITIES AND CHARGES (79,312) (79,624)
TOTAL ASSETS LESS LIABILITIES GBP 3,296,185 GBP 3,300,568
CAPITAL AND RESERVES
Ordinary Shares - Authorised and Issued:
600,000 Shares of GPB1.00 each fully paid 600,000 600,000
Revaluation Reserve 428,325 432,604
Profit and Loss Account 2,267,860 2,267,964
EQUITY SHAREHOLDERS' FUNDS GBP 3,296,185 GBP 3,300,568
STATUS OF FINANCIAL INFORMATION
The financial information set out above does not constitute statutory accounts
as defined in section 434 of the Companies Act 2006. This has, however, been
extracted from the statutory accounts for the year ended 31 October 2015. These
accounts have not to date been delivered to the Registrar of Companies. The
Company's auditor, Mazars LLP, has issued an unqualified audit report which
does not contain a statement under section 498 of the Companies Act 2006 in
respect of these accounts.
DIVIDEND ANNOUNCEMENT
An interim dividend of 6.0 pence per share (2015 6.0 pence) was paid on 14
January 2016 to shareholders on the register on 18 December 2015.
The Board have declared a second interim dividend for the year ended 31 October
2015 of 12.0 pence per share (year ended 31 October 2014 12.0 pence) for
payment on 5 May 2016 to shareholders on the register on 22 April 2016. The
directors do not propose the payment of a final dividend.
The Directors of Hydro Hotel, Eastbourne, plc accept responsibility for this
announcement, which has been approved for the purposes of the Financial
Services and Markets Act 2000 by Mazars Corporate Finance Limited, Tower Bridge
House, St Katharine's Way, London, E1W 1DD, who are authorized by the
Financial Conduct Authority for investment business.
For further information please contact:
Hydro Hotel, Eastbourne, plc
Crispin Freeman Telephone: (+44)(0) 1323 411019
Mazars Corporate Finance Limited
Stephen Skeels Telephone: (+44)(0) 207 063 4000
HYDRO HOTEL EASTBOURNE PLC - Final Results
January 27, 2016 at 04:31 pm IST
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