HYDRO HOTEL EASTBOURNE PLC - Final Results PR Newswire

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: (+44)(0) 1323 431200


Mazars Corporate Finance Limited       Stephen Skeels             Telephone: (+44)(0) 2070 634000