HYDRO HOTEL EASTBOURNE PLC - Final Results PR Newswire

HYDRO HOTEL, EASTBOURNE, PLC

PRELIMINARY ANNOUNCEMENT OF THE FINAL RESULTS FOR THE YEAR ENDED 31 OCTOBER 2019

HIGHLIGHTS

The profit for the financial year after taxation was GBP224,516 (2018 GBP153,260). Turnover from the Hydro Hotel operation increased during the year by 2.1% (2018 increase of 3.8%). Earnings per share were 37.42p compared to 25.54p for the previous year.

The Company generated cash from operating activities of GBP504,842 (2018 GBP378,888) and invested GBP341,207 in new fixed assets (2018 GBP173,960). During the year the Company paid ordinary dividends of GBP126,000 (2018 GBP126,000). At the year end the Company had net current assets of GBP852,027 (2018 GBP858,532).

CHAIRMAN’S STATEMENT

Results for year ended 31 October 2019
I am pleased to report on the company’s results for the year ended 31 October 2019.  Sales for the year totalled GBP3,733,698, an increase of 2.1% on the GBP3,658,461 sales for the previous year (2018 3.8% increase). Operating profit for the year was GBP271,809 (2018 GBP185,135).  After interest receivable and the corporation tax charge, the post-tax profits for the year were GBP224,516 (2018 GBP153,260).  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 increase the dividend to 23p per share (2018 21p per share) absorbing GBP138,000 (2018 GBP126,000).

The trading environment  for the company continued to be challenging. Careful monitoring of food and drink costs meant that the gross profit percentage remained similar to the previous year but increased staffing costs affected profitability. Repair costs decreased with no significant work required to the fabric of the building in the year.

Capital improvements at the hotel during the year included the replacement of the fire alarm system, refurbishment of 12 bedrooms and Garden Suite bar area, and installation of energy efficient lighting in the kitchen.

Developments since 31 October 2019
New marketing techniques will continue to be developed during the year to encourage direct bookings at the hotel. The Board has been pleased to note that the new online booking system on the company’s website, introduced in September 2018, has reduced the proportion of bookings made via Online Travel Agents with consequent commission savings.

Updating of the décor and furniture of the conservatory has been undertaken and, subject to planning permission, a bar will be installed in the Wedgwood Room. No other major refurbishment of bedrooms or public areas is planned for the current year.

Our Staff
I would like to congratulate our General Manager, Jonathan Owen, on an improved profit for the hotel, despite ongoing challenges for the hotel and tourism industry.

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
Chairman of the Board

28 January 2020


 


STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 OCTOBER
2019

                                              2019        2018

                                               GBP         GBP

Turnover

Continuing operations                        3,733,698   3,658,461

Cost of sales                              (3,231,920) (3,244,833)

Gross profit                                   501,778     413,628

Administrative expenses                      (229,969)   (228,493)

Operating profit                               271,809     185,135

Interest receivable and similar income          10,265       8,190

Profit before taxation                         282,074     193,325

Taxation                                      (57,558)    (40,065)

Profit for the financial year              GBP 224,516 GBP 153,260

Earnings per share - continuing operations   37.42p      25.54p



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 2019

                                                 2019      2018

                                                  GBP       GBP

Fixed assets

Tangible Assets                                2,759,650 2,620,992

Current assets

Stocks                                            37,123    30,438

Debtors                                          129,098   150,087

Investments                                      200,000   200,000

Cash at bank and in hand                       1,107,586 1,089,507

                                               1,473,807 1,470,032

Creditors: Amounts falling due within one year (621,780) (611,500)

Net current assets                               852,027   858,532



   


Total assets less current liabilities         3,611,677     3,479,524

Provisions for liabilities                    (120,812)      (87,175)

Net assets                                GBP 3,490,865 GBP 3,392,349

Capital and reserves

Ordinary Shares - Authorised and Issued:

600,000 Shares of GPB1.00 each fully paid       600,000       600,000

Revaluation reserve                             411,209       415,488

Profit and loss reserves                      2,479,656     2,376,861

Total equity                              GBP 3,490,865 GBP 3,392,349




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 2019. 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 9.0 pence per share (2019 7.0 pence) was paid on 16 January 2020 to shareholders on the register on 20 December 2019.

The Board have declared a second interim dividend for the year ended 31 October 2019 of 14.0 pence per share (year ended 31 October 2018 14.0 pence) for payment on 30 April 2020 to shareholders on the register on 17 April 2020. The directors do not propose the payment of a final dividend.

The Directors of Hydro Hotel, Eastbourne, plc accept responsibility for this announcement.

For further information please contact:

Hydro Hotel, Eastbourne, plc
Sally Gausden
Telephone: (+44) (0) 1323 431200

Peterhouse Capital Limited
Mark Anwyl
Telephone: (+44) (0) 20 7469 0930

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.