Hydro Hotel Eastbourne Plc - Final Results for the Year Ended 31 October 2021 PR Newswire

7 February 2022

HYDRO HOTEL, EASTBOURNE, PLC

(“Hydro Hotel” or the “Company”)

FINAL RESULTS FOR THE YEAR ENDED 31 OCTOBER 2021

HIGHLIGHTS

The Coronavirus pandemic has had a significant effect on the trading of the Company. The profit for the financial year after taxation was £362,660 (2020 loss of £139,289). Turnover from the Hydro Hotel operation increased during the year by 25.0% (2020 decrease of 40.2%). Earnings per share were 60.44p compared to (23.21)p for the previous year.

The Company’s operating activities generated cash of £829,213 (2020 absorbed cash of £181,069) and it invested £39,987 in new fixed assets (2020 £95,593). During the year the Company paid  ordinary dividends of £Nil (2020 £54,000). At the year end the Company had net current assets of £1,254,405 (2020 £993,357).

CHAIRMAN’S STATEMENT

Results for year ended 31 October 2021

I report on the company’s results for the year ended 31 October 2021.

It has been a difficult trading year for the Company and particularly for the global hospitality industry as a result of the Coronavirus pandemic. The company’s trade has been impacted by the effects of the pandemic which resulted in the closure of the hotel from 5 November 2020 to 2 December 2020 and Tier 2 restrictions being applied from that date to 25 December 2020. Tier 4 restrictions were applied from 26 December 2020 with a further lockdown period and closure of the hotel from 6 January 2021 to 16 May 2021 in accordance with the Government legislation and guidelines. The hotel reopened on 17 May 2021, trading in accordance with Government guidance and restrictions. It was pleasing to note how strongly trading resumed following the reopening in May.

Sales for the year totalled £2,791,482, an increase of 25.0% on the £2,233,068 sales for the previous year (2020  40.2% decrease). Operating profit for the year was £461,312 (2020  loss of £179,382).  After interest receivable, interest payable and the corporation tax charge, the post-tax profit for the year was £362,660 (2020  loss of £139,289). Taking into account the level of post-tax profits for the year, the Board decided to declare a dividend of 20p per share (2020 Nil paid) absorbing £120,000 (2020: Nil paid).

Capital improvements at the hotel during the year included the installation of walk in showers for a limited number of rooms, and a new telephone system. The redecoration of a number of bedrooms and major repairs to the roof were also undertaken.

To support the business through the Coronavirus pandemic, the company took advantage of Government financial assistance. The Coronavirus Business Interruption Loan was repaid during the year.

Developments since 31 October 2021

There have been no further periods of closure for the hotel during 2021, however the Board and management are mindful that further restrictions may be imposed by Government to curb the spread of Coronavirus and all necessary action will be undertaken at the appropriate time to protect and maintain the company’s business.

No new capital projects are due to be undertaken but repair work to maintain the fabric of the building and room stock continues and new marketing techniques will continue to be developed during the year to encourage direct bookings at the hotel. 

Our Staff

I would like to thank our General Manager, Jonathan Owen, for his prompt and creative responses to the challenges brought by the Coronavirus pandemic and the ongoing challenges for the hotel and tourism industry.

 I wish also to record thanks to our management team and all our staff for their dedication to the hotel during these challenging times.  All staff continued to deliver a high quality of service to the hotel’s customers in very difficult circumstances.

Graeme C King, MA, CA
4 February 2022 Chairman of the Board

   

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 OCTOBER 2021
2021 2020
£ £
Turnover
Continuing operations 2,791,482 2,233,068
Cost of sales (2,444,700) (2,537,521)
Gross profit/(loss) 346,782 (304,453)
Administrative expenses (237,241) (238,548)
Other operating income 351,771 363,619
Operating profit/(loss) 461,312 (179,382)
Interest receivable and similar income 5,000 7,370
Interest payable and similar expenses (9,286) (2,354)
Profit/(loss) before taxation 457,026 (174,366)
Taxation (94,366) 35,077
Profit/(loss) for the financial year £362,660 £(139,289)
Earnings per share - continuing operations 60.44p (23.21)p

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 2021
2021 2020
£ £
Fixed assets
Tangible Assets 2,500,211 2,653,876
Current assets
Stocks 36,657 27,899
Debtors 115,672 128,926
Investments 451,014 200,000
Cash at bank and in hand 1,328,353 1,025,141
1,931,696 1,381,966
Creditors: Amounts falling due within one year (677,291) (388,609)
Net current assets 1,254,405 993,357

   

Total assets less current liabilities 3,754,616 3,647,233
Creditors: Amounts falling due after more than one year - (240,000)
Provisions for liabilities (94,380) (109,657)
Net assets £3,660,236 £3,297,576
Capital and reserves
Ordinary Shares - Authorised and Issued:
600,000 Shares of GPB1.00 each fully paid 600,000 600,000
Revaluation reserve 402,651 406,930
Profit and loss reserves 2,657,585 2,290,646
Total equity £3,660,236 £3,297,576

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 2021. These accounts have not to date been delivered to the Registrar of Companies. The Company’s auditor, UHY Hacker Young 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 20.0 pence per share (2020 Nil paid) was paid on 13 January 2022 to shareholders on the register on 31 December 2021. 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) 2074 690930

Market Abuse Regulation (MAR) Disclosure

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation EU 596/2014 as it forms part of retained EU law (as defined in the European Union (Withdrawal) Act 2018).