HYDRO HOTEL EASTBOURNE PLC - Final Results

HYDRO HOTEL, EASTBOURNE, PLC

PRELIMINARY ANNOUNCEMENT OF THE FINAL RESULTS FOR THE YEAR ENDED 31 OCTOBER 2017

HIGHLIGHTS

The profit for the financial year after taxation was GBP126,720 (2016 GBP176,184). Turnover from the Hydro Hotel operation increased during the year by 9.9% (2016 increase of 2.5%). Earnings per share were 21.12p compared to 29.36p for the previous year.

The Company generated cash from operating activities of GBP365,682 (2016 GBP447,085) and invested GBP365,273 in new fixed assets (2016 GBP79,184). During the year the Company paid ordinary dividends of GBP126,000 (2016 GBP108,000). At the year end the Company had net current assets of GBP815,568 (2016 GBP976,933).

CHAIRMAN’S STATEMENT

Results for year ended 31 October 2017

I am pleased to report on the company’s results for the year ended 31 October 2017.  Sales for the year totalled GBP3,524,796, an increase of 9.9% on the GBP3,208,172 sales for the previous year (2016 2.5% increase). Operating profit for the year was GBP148,571 (2016 GBP213,657).  After interest receivable and the corporation tax charge, the post-tax profits for the year were GBP126,720 (2016 GBP176,184).  Taking into account the level of post-tax profits for the year and with the company having strong reserves and assets, the Board decided to maintain the dividend at 21p per share (2016 21p per share) absorbing GBP126,000 (2016 GBP126,000).

Whilst the turnover of the company has increased, the hotel’s operating costs have been impacted by the cost of acquiring business, with a larger number of hotel bookings made via Online Travel Agencies, and the increase in the National Minimum Wage as from 1 October 2016 and the National Living Wage as from 1 April 2017.  The upgrading of the public rooms and bedrooms has also led to an increase in repair costs for the year compared to the previous year.

Developments since 31 October 2017

Jonathan Owen, our General Manager, has provided the Board with his updated strategy for the hotel for the 2017/18 trading year.

New marketing techniques will continue to be developed during the year to encourage direct bookings at the hotel, including the new online voucher purchasing system which went live in December 2017.

With the public rooms’ refurbishment now complete, and the outdoor wedding venue and terrace now available for use, the focus for 2018 is on increasing the number of weddings and other celebrations and functions at the hotel.  The cycle of bedroom refurbishments will also continue with 29 bedrooms having been updated in the 2017 financial year, and a further 29 bedrooms to be improved in the 2018 financial year.

Essential repair work to the fabric of the building as identified in the Gould and Company reports will continue to be undertaken in 2018 but every effort will be made to minimise any obscuring of the façade of the building by scaffolding that may be required.

Our Staff

I would like to congratulate our General Manager, Jonathan Owen, on the work which resulted in the successful accomplishment of 4* status for the hotel during the year.  It is hoped that the enhanced status of the hotel will draw a wider clientele.

I wish also to record our thanks to our management team and all our staff for their dedication to the hotel.  All staff continued to deliver the Hydro’s renowned quality of service which our customers value so much.

	Graeme C King, MA, CA
23 January 2018	Chairman of the Board

   

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 OCTOBER 2017
			2017	2016
			GBP	GBP
Turnover
Continuing operations			3,524,796	3,208,172
Cost of sales			(3,177,905)	(2,771,219)
Gross profit			346,891	436,953
Administrative expenses			(198,320)	(223,296)
Operating profit			148,571	213,657
Interest receivable and similar income			7,866	10,695
Profit before taxation			156,437	224,352
Taxation			(29,717)	(48,168)
Profit for the financial year			GBP 126,720	GBP 176,184
Earnings per share - continuing operations			21.12p	29.36p

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 2017
			2017	2016
			GBP	GBP
Fixed assets
Tangible Assets			2,634,543	2,459,247
Current assets
Stocks			27,719	33,863
Debtors			112,616	138,621
Investments			200,568	-
Cash at bank and in hand			1,018,326	1,391,644
			1,359,229	1,564,128
Creditors: Amounts falling due within one year			(543,661)	(587,195)
Net current assets			815,568	976,933

   

Total assets less current liabilities			3,450,111	3,436,180
Provisions for liabilities			(85,022)	(71,811)
Net assets			GBP 3,365,089	GBP 3,364,369
Capital and reserves
Ordinary Shares - Authorised and Issued:
600,000 Shares of GPB1.00 each fully paid			600,000	600,000
Revaluation reserve			419,767	424,046
Profit and loss reserves			2,345,322	2,340,323
Total equity			GBP 3,365,089	GBP 3,364,369

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 2017. 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 (2017 7.0 pence) was paid on 18 January 2018 to shareholders on the register on 22 December 2017.

The Board have declared a second interim dividend for the year ended 31 October 2017 of 14.0 pence per share (year ended 31 October 2016 14.0 pence) for payment on 3 May 2018 to shareholders on the register on 20 April 2018. 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: [phone]

Mazars Corporate Finance Limited       Stephen Skeels             Telephone: [phone]