14 July 2020

Hydro Hotel, Eastbourne, Plc
(“Hydro Hotel” or the “Company”)

Interim Results for the Half Year ended 30 April 2020

YOUR CHAIRMAN'S LETTER

Dear Shareholder,

SIX MONTHS TO 30 APRIL 2020

I report on the company’s results for the six months to 30 April 2020, which reflect the impact of the Coronavirus on our business, with the pandemic declared on 11 March 2020, non-essential travel prohibited in the UK from 16 March 2020, and the closure of leisure and hospitality venues from 23 March 2020.

The total turnover for the six month period to 30 April 2020 was £1,177,033 compared to £1,553,553 for the same period the previous year, a decrease of 24.24% (compared to an increase in the six months to 30 April 2019 of 2.57%).

The gross profit percentage for the period was 0.47% lower than in the six months to 30 April 2019 and staff costs (excluding grants received for the Coronavirus Job Retention Scheme) increased by 4.8% compared to the figure for the period to 30 April 2019 (6.7% increase in the half year to 30 April 2019).

Overheads decreased by 10.93% (15.02% decrease in the half year ended 30 April 2019). Only routine maintenance to the fabric of the building was undertaken during the six months to 30 April 2020. Consequently, there was a reduction in repairs costs of £12,342 for this period compared to the same period in the previous year.

There is an increase in the loss for the half year to 30 April 2020 to £276,850 compared to £101,271 for the half year to 30 April 2019. 

The conservatory was refurbished with new furniture and flooring, the hotel’s computer server was upgraded, and the door locking system was replaced.

The Board and the management of the company in monitoring cash resources have reviewed and taken advantage of appropriate sources of finance available from the Government, and cancelled the dividend previously declared payable on 30 April 2020.

All action required, by Government and the relevant guidance issued, has been taken to enable the hotel to re-open for business on 4 July 2020.

The Board wishes to express its thanks to the management and staff of the hotel for their co-operation and efforts during these exceptional circumstances and the Hydro team look forward to welcoming new and returning guests in this our 125th year of operation.

Yours sincerely,
Graeme C King, MA, CA
13 July 2020
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE HALF YEAR ENDED 30 APRIL 2020

                          Half year to  Half year to 30 April       Year ended
                         30 April 2020       2019 (Unaudited)  31 October 2019
                           (Unaudited)                               (Audited)

                                   GBP                    GBP              GBP

TURNOVER                     1,177,033              1,553,553        3,733,698

OPERATING (LOSS)/PROFIT      (281,909)              (106,271)          271,809

INTEREST RECEIVABLE              5,059                  5,000           10,265

(LOSS)/PROFIT BEFORE         (276,850)              (101,271)          282,074
TAXATION

TAXATION                             -                      -         (57,558)

(LOSS)/PROFIT FOR PERIOD  GBP(276,850)           GBP(101,271)       GBP224,516

(Loss)/Earnings per           (46.14)p               (16.88)p           37.42p
share

STATEMENT OF FINANCIAL POSITION
AT 30 APRIL 2020

                                    30 April          30 April  31 October 2019
                            2020 (Unaudited)  2019 (Unaudited)        (Audited)

                                         GBP               GBP              GBP

FIXED ASSETS

Tangible Assets                    2,743,514         2,823,218        2,759,650

CURRENT ASSETS

Stocks                                30,719            27,502           37,123

Debtors                               41,126           103,049          129,098

Investment – 6 month notice          200,658           200,000          200,000
deposit account

Cash at bank and in hand             586,585           601,622        1,107,586

                                     859,088           932,173        1,473,807

CREDITORS

Amounts falling due within         (316,697)         (503,138)        (621,780)
one year

NET CURRENT ASSETS                   542,391           429,035          852,027

TOTAL ASSETS LESS

CURRENT LIABILITIES                3,285,905         3,252,253        3,611,677

PROVISION FOR LIABILITIES          (125,890)          (87,175)        (120,812)

NET ASSETS                      GBP3,160,015      GBP3,165,078     GBP3,490,865

CAPITAL AND RESERVES

Called up share capital              600,000           600,000          600,000

Revaluation reserve                  411,209           415,488          411,209

Profit and loss reserves           2,148,806         2,149,590        2,479,656

                                GBP3,160,015      GBP3,165,078     GBP3,490,865

STATEMENT OF CASH FLOWS
FOR THE HALF YEAR ENDED 30 APRIL 2020  

                          Half year to   Half year to  Year ended 31 October
                         30 April 2020  30 April 2019         2019 (Audited)
                           (Unaudited)    (Unaudited)

                                   GBP            GBP                    GBP

NET CASH (USED               (387,801)       (67,538)                466,930
IN)/INFLOW FROM
OPERATING ACTIVITIES
(Note 1)

NET CASH USED IN              (79,200)      (294,347)              (322,851)
INVESTING ACTIVITIES
(Note 2)

FINANCING ACTIVITIES

Dividends paid                (54,000)      (126,000)              (126,000)

NET (DECREASE)/INCREASE      (521,001)      (487,885)                 18,079
IN CASH AND CASH
EQUIVALENTS

CASH AND CASH                1,107,586      1,089,507              1,089,507
EQUIVALENTS AT THE
BEGINNING OF THE PERIOD

CASH AND CASH               GBP586,585     GBP601,622           GBP1,107,586
EQUIVALENTS AT THE END
OF THE PERIOD

RELATING TO:

Cash at bank and in hand    GBP586,585     GBP601,622           GBP1,107,586

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE HALF YEAR ENDED 30 APRIL 2020

                         Half year to   Half year to                 Year ended
                        30 April 2020  30 April 2019  31 October 2019 (Audited)
                          (Unaudited)    (Unaudited)

                                  GBP            GBP                        GBP

Note 1

CASH FLOWS FROM
OPERATING

ACTIVITIES

(Loss)/profit after tax     (276,850)      (101,271)                    224,516

Adjustments for:

Taxation                            -              -                     57,558

Depreciation                   99,098         98,308                    201,605

Loss/(gain) on disposal           638        (1,187)                    (7,147)
of fixed assets

Interest receivable           (5,059)        (5,000)                   (10,265)

OPERATING CASH FLOW         (182,173)        (9,150)                    466,267
BEFORE WORKING CAPITAL
CHANGES

MOVEMENTS IN WORKING
CAPITAL

Decrease/(increase) in          6,404          2,936                    (6,685)
stocks

Decrease in debtors            87,972         47,038                     20,989

(Decrease)/increase in      (300,004)      (108,362)                     24,271
creditors

Income taxes paid                   -              -                   (37,912)

NET CASH (USED           GBP(387,801)    GBP(67,538)                 GBP466,930
IN)/GENERATED FROM
OPERATING ACTIVITIES


Note 2

INVESTING ACTIVITIES

Purchases of tangible        (83,607)      (300,744)                  (341,207)
fixed assets

Proceeds on disposal of             6          1,397                      8,091
tangible fixed assets

Interest received               5,059          5,000                     10,265

Payment for other               (658)              -                          -
investments

NET CASH FLOW USED IN     GBP(79,200)   GBP(294,347)               GBP(322,851)
INVESTING ACTIVITIES

   

NOTES TO THE ACCOUNTS

   

1 The results are prepared on the basis of the accounting policies set out in
  the Company’s Annual Report and Accounts for the year ended 31 October 2019.

  At the date of this report, there exists considerable uncertainty regarding
  the potential impact of the Coronavirus and the economic consequences, both
  within the U.K. and overseas, which may result from government policies to
  contain the spread. The duration and geographical extent of any possible
  lockdown or future government policies are unknown. Whilst we are unable to
  predict what the economic consequences may be and the impact on the company’s
  future ability to continue trading, we have continued to use the going concern
  basis as appropriate in the preparation of these accounts.

2 The earnings per share are based on a loss of £276,850 (2019 loss £101,271)
  being the loss on ordinary activities after taxation.

3 The movement in retained Profit and loss Reserves and Revaluation Reserves
  from £2,890,865 at 31 October 2019 to £2,560,015 at 30 April 2020 includes the
  loss for the period and dividends of £54,000 (2019: £126,000 paid in the
  period and £Nil accrued).

4 All dividends in 2020 were paid in the period and no accrual is included in
  creditors, amounts falling due within one year as at 30 April 2020 (2019: £Nil
  accrued).

5 A copy of the interim report and accounts and the Chairman’s statement
  thereto, which were approved by the Board of Directors on 13 July 2020, will
  be posted to all registered shareholders shortly thereafter.

6 The financial information set out above does not constitute statutory accounts
  as defined in section 434 of the Companies Act 2006. Statutory accounts for
  the year ended 31 October 2019, on which the report of the auditor was
  unqualified and did not contain a statement under section 498 of the Companies
  Act 2006, have been filed with the Registrar of Companies.

7 The Company’s auditor, Mazars LLP, has not reviewed these unaudited interim
  accounts.

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.