HYDRO HOTEL, EASTBOURNE, PLC
PRELIMINARY ANNOUNCEMENT OF THE FINAL RESULTS FOR THE YEAR ENDED 31 OCTOBER
2016
HIGHLIGHTS
The profit for the financial year after taxation was GBP176,184 (2015
GBP103,617). Turnover from the Hydro Hotel operation increased during the year
by 2.5% (2015 increase of 2.0%). Earnings per share were 29.36p compared to
17.27p for the previous year.
The Company generated cash from operating activities of GBP447,085 (2015
GBP289,109) and invested GBP79,184 in new fixed assets (2015 GBP119,618).
During the year the Company paid ordinary dividends of GBP108,000 (2015
GBP108,000). At the year end the Company had net current assets of GBP976,933
(2015 GBP818,033).
CHAIRMAN'S STATEMENT
Results for year ended 31 October 2016
I am pleased to report an improvement in the company's results for the year
ended 31 October 2016. Sales for the year totalled GBP3,208,172, an increase
of 2.5% on the GBP3,129,504 sales for the previous year (2015 2.0% increase).
Operating profit for the year increased to GBP213,657 (2015 GBP120,006). After
interest receivable and the corporation tax charge, the post-tax profits for
the year were GBP176,184 (2015 GBP103,617). With the improvement in post-tax
profits for the year and with the company having strong reserves and assets,
the Board decided to increase the dividend to 21p per share (2015 18p per
share) absorbing GBP126,000 (2015 GBP108,000).
Management are mindful of the impact on the hotel's operating costs of the
increase in the national minimum wage as from 1 October 2016 and further
increases to the national living wage as from 1 April 2017, and will be
reviewing accordingly the pricing of the hotel's services.
Developments since 31 October 2016
The Board was pleased to welcome Jonathan Owen to the hotel as our new general
manager. Jonathan started work at the hotel in May 2016 and was invited by the
Board to develop a strategy for the hotel for the 2016/17 trading year.
Since joining the hotel, Jonathan has reviewed the sales operations and has
introduced new marketing techniques from which the hotel has benefited in the
period to 31 October 2016 and into the new financial year.
Jonathan plans to increase the number of weddings and other celebrations and
functions held and has commenced a programme of refurbishment of the hotel's
public areas to enhance our offer to these markets. The Drawing Room and
Wedgwood Room were refurbished during the year ended 31 October 2016 and the
Garden Suite will be refurbished early in 2017. The cycle of bedroom
refurbishments will also recommence in 2017, now that Jonathan has determined
his priorities.
Essential repair work to the fabric of the building as identified in the Gould
and Company reports will be undertaken in 2017 but every effort will be made to
minimise any obscuring of the façade of the building by scaffolding that may be
required.
The Board wishes to advise shareholders that, as from 1 January 2017, ISDX will
have changed its name to NEX Exchange.
Our Staff
The Board looks to refreshing its membership, to ensure an appropriate range of
skills and experience and we were pleased to appoint our company secretary, Mrs
Sally A Gausden BA FCA to the Board as a non-executive director as from 13
December 2016.
As previously noted, we welcomed Jonathan Owen to the hotel as our new general
manager in May 2016. I wish to record our thanks to our management team and
all of our staff for their dedication to the hotel and particularly to those
members of staff who took on extra responsibilities in the interregnum between
managers. All staff continued to deliver the Hydro's renowned quality of
service which our customers value so much and this is reflected in our results
for the year.
Graeme C King, MA, CA
24 January 2017 Chairman of the Board
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 OCTOBER 2016
2016 2015
GBP GBP
Turnover
Continuing operations 3,208,172 3,129,504
Cost of sales (2,771,219) (2,820,812)
Gross profit 436,953 308,692
Administrative expenses (223,296) (188,686)
Operating profit 213,657 120,006
Interest receivable and similar income 10,695 13,570
Profit before taxation 224,352 133,576
Taxation (48,168) (29,959)
Profit for the financial year GBP 176,184 GBP 103,617
Earnings per share - continuing operations 29.36p 17.27p
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.
STATEMENT OF FINANCIAL POSITION AS AT 31 OCTOBER 2016
2016 2015
GBP GBP
Fixed assets
Tangible Assets 2,459,247 2,557,464
Current assets
Stocks 33,863 29,189
Debtors 138,621 128,963
Investments - 500,000
Cash at bank and in hand 1,391,644 650,831
1,564,128 1,308,983
Creditors: Amounts falling due within one year (587,195) (490,950)
Net current assets 976,933 818,033
Total assets less current liabilities 3,436,180 3,375,497
Provisions for liabilities (71,811) (79,312)
Net assets GBP 3,364,369 GBP 3,296,185
Capital and reserves
Ordinary Shares - Authorised and Issued:
600,000 Shares of GPB1.00 each fully paid 600,000 600,000
Revaluation reserve 424,046 428,325
Profit and loss reserves 2,340,323 2,267,860
Total equity GBP 3,364,369 GBP 3,296,185
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 2016. 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 7.0 pence per share (2016 6.0 pence) was paid on 19
January 2017 to shareholders on the register on 23 December 2016..
The Board have declared a second interim dividend for the year ended 31 October
2016 of 14.0 pence per share (year ended 31 October 2015 12.0 pence) for
payment on 4 May 2017 to shareholders on the register on 20 April 2017. Please
note that this combined dividend is not a final dividend as stated in the
announcement to the market in December 2016, but an interim dividend as
declared by the Board 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 Sally Gausden
Telephone: (+44)(0) 1323 411019
Mazars Corporate Finance Limited Stephen Skeels Telephone:
(+44)(0) 2070 634000
HYDRO HOTEL EASTBOURNE PLC - Final Results
January 25, 2017 at 03:34 pm IST
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